2012-2014 Low Income Programs Application Energy Savings Assistance Program and CARE Low Income Oversight Board San Francisco, CA June 21, 2011.

2012-2014 Low Income Programs Application

Energy Savings Assistance Program and CARE

Low Income Oversight Board

San Francisco, CAJune 21, 2011

2

CARE Proposal At a Glance

PG&E 2012-2014 CARE Forecasted Enrollment Activity

CARE Program Activity 2012 2013 2014 Total

Recertifications 720,000 780,000 828,000 2,328,000

New Enrollments 387,000 375,000 399,000 1,161,000

Attrition (368,000) (362,000) (384,000) (1,114,000)

Year-End Enrollment 1,553,000 1,566,000 1,581,000 1,581,000

PG&E 2012-2014 CARE Planned Budget

CARE Budget Categories 2012 2013 2014

CARE Management Costs $ 12,081,000 $ 11,287,000 $ 11,650,000

Subsidies and Benefits (1) $ 660,220,000 $ 633,029,000 $ 605,950,000

Total Program Costs & Customer Discounts $ 672,301,000 $ 644,316,000 $ 617,600,000

(1) The CARE subsidy forecast assumes implementation of the electric CARE Tier 3 rate in 2011, in concurrence with both the Proposed Decision and the Alternate Proposed Decision in the General Rate Case (GRC) Phase 2 proceeding, and subsequent CARE Tier 3 rate increases of $0.015 in 2013 and 2014.CARE customers are also exempt from paying costs for Department of Water Resources Bonds, CARE Public Purpose Programs, and the California Solar Initiative. These exemptions are not reflected in the subsidy forecast and will total an estimated $380 million in PY 2012-2014.

3

Energy Savings Assistance Program Proposal At a Glance

• Average cost / home: $1,297

• Average kWh / home: 441

• Average kW / home: 0.12

• Average therm / home: 18

PG&E 2012-2014 Energy Savings Assistance Program

Year Home Goal Budget kWh kW Therms

2012 110,000 $137,904,000 48,756,877 14,108 1,960,407

2013 132,500 167,525,000 58,306,139 16,012 2,361,462

2014 132,500 173,422,000 58,306,139 16,012 2,361,462

Total 375,000 $478,851,000 165,369,155 46,132 6,683,331

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ESA Program Measure Additions Proposed for 2012-14

New Measures

• Thermostatic Low Flow Showerhead (1.6 GPM)

• SmartAC Fan Delay relay with premium motor

• Microwaves

Changes

• Decrease Refrigerator replacement criteria from pre-1993 to pre-1999

Measures Retired

• Dust Test and Seal

• Central AC

• Room AC

PG&E proposed several measure changes, including:

5

Proposed Budget & Homes Treated Projection

• How do the Applications support the budget increases in relation to NGAT funding?

– NGAT funding is not set in this proceeding (per CPUC) and was not coordinated with this budget.

• How do the Applications support the budget increases in relation to energy savings targets?

– There are no pre-determined energy savings goals for the ESA Program.

– Energy savings targets are commensurate with budget: energy savings are based on measure installations for number of homes to be treated. This determined budget.

• How do the Applications support the goal to improve cost effectiveness?

– Most of the ESA Program measures are not cost effective (and weren’t cost effective in the 2009-2011 program), but PG&E proposed they be kept in the program for important comfort, health and safety reasons.

6

New Strategies

• Overview of proposed CARE recertification & post enrollment verification practices included in the Application

– A new approach to address the top ~1 percent of CARE households with extremely high usage suggesting income ineligibility.

– Broadening of local support for enrolling potential CARE customers by further utilizing Community Outreach Contractors (COC).

– Expanding in-language communications to households.

– Recommendation that the Commission revisit the categorical programs accepted for automatic eligibility for CARE since they do not align with CARE’s household and/or income thresholds

7

New Strategies (con’t)

• Overview of marketing, education & outreach strategies

– The Household Market Segmentation Study authorized in Decision 08‑11‑031 is providing valuable targeting profiles that will be used in 2012‑2014 outreach strategies.

– Continue successful outreach strategies implemented in 2009-2011:

• Multilingual media campaigns; specifically radio, television and print advertising

• More direct outreach methods, including automated voice messaging, text messaging and direct mail

– Incorporate the Engage 360 brand into its outreach and continue to build stronger relationships with other EE programs wherever possible.

– Strengthen new Energy Savings Assistance Program name and identity.

– Community partnerships will continue to play an important role as PG&E builds more “local feel” into outreach efforts.

– PG&E plans to continue to administer, refine and expand its energy education methods for both customers and contractors, including online training materials for contractors.

8

New Strategies (con’t)

• Overview of workforce, education & training strategies / living wage jobs

– PG&E’s Energy Training Center in Stockton (ETC) provides training for all ESA Program implementers, including: training for weatherization specialists (installation crews); and energy specialists (assessors/educators).

– The ETC works with community colleges and disadvantaged communities to develop and conduct training programs that prepare workers for participation in EE careers.

– PG&E participated with Energy Division in its WE&T training and certification project with SF OEWD and LATTC to develop a curriculum for training disadvantaged community members to work in the ESA Program.

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New Strategies (con’t)

• Overview of leveraging activities, and how these would be funded

– PG&E leverages with other utilities, including the other energy IOUs that run ESA Programs, municipal utilities, SMJU, irrigation districts, and water utilities.

– Continue to leverage the contacts already established:

• The City of San José, the city of San Joaquin, the Glenn County Human Services Agency, the Redwood Community Action Agency, and the Amador‑Tuolumne Community Action.

• Connect with otherwise hard to reach low‑income customers in those communities (particularly customers who are either rural or experience language barriers).

• PG&E low income program staff meet regularly with other low income councils in its service area.

– PG&E will leverage resources with LIHEAP by continuing to coordinate on the minimum measure rule, supporting federal legislation, and continuing the refrigerator leveraging program.

– PG&E’s ESA Program staff continues to pursue outreach and leveraging opportunities with CBOs and communities that have received Federal EE Funds, including partnerships in Sacramento, Richmond, and San Pablo.

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Implementation of Carbon Monoxide Detector Law (SB183)

• Senate Bill (SB) 183 – Signed into law on May 2010

• SEC. 4. Added Section 17926 to the Heath and Safety Code to read:

a) An owner of a dwelling united intended for human occupancy shall install a carbon monoxide device, approved and listed by the State Fire Marshall pursuant to Section 13263, in each existing dwelling unit having a fossil fuel burning heater or appliance, fireplace, or an attached garage, within the earliest applicable period as follows:

1) For all existing single-family dwelling units intended for human occupancy on or before July 2, 2011.

2) For all other existing dwelling units intended for human occupancy, on or before January 2, 2013.

b) With respect to the number and placement of carbon monoxide devices, an owner shall install the devices in a manner consistent with building standards applicable to new constriction for the relevant type of occupancy or with the manufacturer’s instruction, if it is technically feasible to do so.*

e) A local ordinance requiring carbon monoxide devices may be enacted or amended if the ordinance is consistent with this chapter.

SEC. 5. added Section 17926.1 to the Healthy and Safety Code and outlines additional requirements for owners or an owner’s agent regarding the installation of carbon monoxide devices in rental/leased dwelling units.

*Paragraphs (c ) and (d ) address violations and applicable fines for any infractions

11

Proposed Joint Studies

• Overview of impact evaluation study, and requested budget

– Estimate the first year electric and gas savings for the program for each utility, by housing type, and by measure group, and other dimensions (e.g., household size, tenure) to assist the 2015-17 planning cycle.

– This study will occur in 2012-2014, after the completion of the 2010 program year and when a full year of post-installation billing data is available for 2010.

• Overview of energy education study, and requested budget

– Examine current and potential practices related to the educational materials, delivery mechanisms, and relative value associated with the education component of the ESA Program to elicit long term behavior and attitude changes in customers.

2012-2014 ESA Program Studies

    PG&E SCE SoCalGas SDG&E

Study Total Cost 30% 30% 25% 15%

ESA Program Impact Evaluation $ 600,000 $180,000 $180,000 $150,000 $ 90,000

Energy Education Study $ 300,000 $ 90,000 $ 90,000 $ 75,000 $ 45,000

Total $ 900,000 $270,000 $270,000 $225,000 $135,000

12

Process Evaluation Finding Implementation

• Changes to Property-Owner Waivers to ease multifamily enrollments

– PG&E’s ESA Program contractors currently work with building owners and landlords (especially for multifamily complexes) to obtain signed Property‑Owner Waiver forms for whole buildings so that they can schedule work on units at the same time.

– IOUs have been working together to make POWs that are more friendly to MF complexes and other building owners.

13

Process Evaluation Finding Implementation (con’t)

• Development of specific marketing campaigns towards property owners

– PG&E proposed a program initiative for multifamily buildings and is developing appropriate targeted marketing campaigns for property owners and other customer segments.

– ESA Program is exploring leveraging SmartMeter team’s successful outreach to property owners via conventions, associations, etc.

14

Process Evaluation Finding Implementation (con’t)

• Investigation of cell phone protocol use for reaching customers without landlines

– PG&E uses customer cell phones when they are provided by customers as their best (or preferred) contact number.

– PG&E currently uses free‑to‑end‑user text messages if a cell phone is the customer’s phone on record.

– PG&E does not call customers’ cell phone numbers for the purposes of marketing the ESA Program.

– In addition to text messages, alternative methods for reaching customers who use cell phones exclusively are being explored.

15

Process Evaluation Finding Implementation (con’t)

• Use of a single intake form and proof of income requirement for shared service territories

– IOUs and their implementation contractors currently work together to make things as simple as possible for their shared customers.

– PG&E accepts proof of income and other intake criteria from the other IOUs, and does not require that customers enrolled by the other IOUs re-submit income documentation.

– Assessment forms are specific to the fuel commodity provided and must be performed by each IOU relative to measures it supports. (For ex. electric IOU assessors are not qualified to assess gas measure qualifications.)

16

Process Evaluation Finding Implementation (con’t)

• Re-examination of dual (electronic/paper) enrollment and assessment forms

– PG&E allows contractors to determine what equipment to use as long as data is entered daily.

– PG&E’s program database supports laptop or tablet interface.

– PG&E updates data collection forms annually as needed, and also considers the priority, expense and feasibility of database enhancements regularly.

– PG&E contractors already have the ability to edit information in the program database.

17

Process Evaluation Finding Implementation (con’t)

• Changes to scheduling inspections to immediately follow installations when possible

– PG&E does not inspect 100% of work performed, and consequently has many fewer inspectors than installers, thus inspectors are not available to follow installations immediately.

– PG&E schedules inspections at the convenience of customers and as close to implementation as possible.

– PG&E always looks for additional ways to help contractors complete paperwork without it increasing unduly, including creating simpler forms and checklists.

– PG&E and its contractors meet regularly to discuss ESA Program implementation issues, and data collection and processes are discussed.

18

Process Evaluation Finding Implementation (con’t)

• IT upgrades to allow for more robust descriptions of customer homes to provide installation contractors with better insight into the tools, materials, and crews needed to service a customer’s home

– Many types of data regarding the home are already collected for program data files, including photos and other supporting documentation.

– PG&E contractors already document special circumstances, and it is in their best interest to document potential problems thoroughly in case there are questions later.