Investor-Owned Utility LIEE-CARE 2009-2011 Budget Applications

1. Investor-Owned Utility LIEE-CARE 2009-2011 Budget Applications Presentation to the LIOB San Diego Gas & Electric Company Southern California Edison Company Southern California Gas Company Pacific Gas and Electric Company San Diego, CA June 5, 2008

2. Overview • Review of 2009 – 2011 LIEE-CARE Program and Budget Applications • Common Utility Proposals • SDG&E Application • SCG Application • SCE Application • PG&E Application • Statewide Strategic Plan Update

3. Common Proposal: Program Achieves 25% of Programmatic Initiative • Methodology and factors considered to determine estimated number of customers to be served between 2009-2011. • Starting Point: Estimated number of eligible LIEE customers • Subtracted from the starting point include: • Number of households served by LIEE 2002 thru 2008 (actuals plus estimate for 2008) • Estimated number of households unwilling to participate (10%) • Number of households served by LIHEAP/DOE 2002 thru 2008 (actuals plus estimate for 2008)

4. Common Proposal: Ten Year Rule • The utilities agreed on the following modifications/exceptions to be added to "Section 2.8 Previous Participation" of the LIEE P&P Manual: • New cost effective measures or technologies that were not previously available in the LIEE program at the time the utility treated a home shall be made available for those qualifying customers • In the event a key program eligibility requirement now makes a customer eligible for measures previously not offered at the time the utility treated the home, the utility shall make available those cost effective measures for qualified customers. • This modification gives the utilities full flexibility to return to homes that have been treated in the past and to provide the customers with cost effective measures that were either not available at the time the home was treated, or were not offered due to a condition that has now changed.

5. Common Proposal: Single Statewide Marketing Tagline • D.07-12-051 directed that a statewide brand be developed for the LIEE program that all utilities would use as a tag line along with each utility’s own LIEE program name. • Utilities are in the process of contracting with an Ad Agency to develop and present several potential: • Statewide program descriptions/taglines • Statewide program names • Potential program descriptions and names will be tested in focus groups conducted in all four utility service territories in multiple languages. • The Joint Utilities expect to present a recommendation to the Commission by July 14, 2008.

6. Common Proposal: Measurement and Evaluation (M&E) Studies * Joint study funded between the three electric utilities: PG&E, SCE and SDG&E. ** Joint study funded between SCE and PG&E.

7. SoCalGas & SDG&E

8. SoCalGas & SDG&E:Program Goals • SoCalGas & SDG&E proposed audit based, customized approach is primarily designed to: • Focus on the achievement of energy savings • Reduce low-income customers’ bills • Improve cost effectiveness • Address health, comfort and safety issues. • Proposed program is aligned with the Strategic Plan. • To achieve maximum energy savings, the proposed LIEE program puts additional focus on highest energy users, without excluding those eligible customers who have lower energy consumption.

9. SoCalGas & SDG&E: Cost Effectiveness • A primary goal is to improve the cost effectiveness of the LIEE program in PY 2009-2011. SoCalGas SDG&E

10. SoCalGas & SDG&E: Program Design Customized Energy Audit • Proposed program design provides a customized and detailed customized energy audit that creates a personalized energy-use profile for each customer. • Plan is to use an audit tool to compare a customer’s usage to that of neighbors with homes of similar size, construction, and occupancy. • Audit tool will include customer usage patterns, appliance information, and other pertinent household information that will help identify the highest savings opportunities.

11. SoCalGas & SDG&E: Program Design Customized Energy Education • Proposing to implement a new and innovative approach to customer energy education. Based on the results of the customized audit, energy education tailored to the individual customer will consist of the following: • Measures to be installed and associated energy savings; • Customer-generated goals related to energy use; • Potential benefits to the customer and the environment and economy; • Potential improvements to health, comfort, safety, and quality of life; and • Comparison of energy usage patterns of households with similar characteristics.

12. SoCalGas & SDG&E: Program Design Customer Rewards • Designed to reward customers who are able to consistently maintain a reduction in their overall energy consumption. • This element will analyze customer energy usage after LIEE measures are installed and the energy usage will be compared to the same timeframe during the previous year. • Two Reward levels – Platinum & Gold • The Platinum Level Incentive will be awarded to customers who reduce their energy consumption by 20% or more. • The Gold Level Incentive will be awarded to customers who reduce their energy consumption by 10% to 19% • Customers may receive up to two rewards in one year during the first year of program participation.

13. SoCalGas & SDG&E: Program Design Customer Segmentation • Identify those neighborhoods that have a high density of customers who have a high likelihood of meeting the LIEE program’s eligibility guidelines. • Group the identified potentially eligible customers into tiers based on their household energy usage • To achieve maximum energy savings as soon as possible, usage levels of customers will be prioritize. • The expected number of households within each segment to be reached (PY 2009 – 2011) is approximately: • SoCalGas - 172,000 at or below baseline allowance and 171,000 above baseline allowance • SDG&E - 20,000 high users, 21,000 medium users, 19,000 low users

14. SoCalGas & SDG&E: Program Design Blue text SDG&E only Measures shown in Red text are proposed new measures

15. SDG&E: Program Design

16. SoCalGas & SDG&E: Marketing Education & Outreach Customer Segmentation • Marketing & Outreach • Targeted Direct Mail • Cross Promotion • Email Blasts • Canvassing • Advertising • Community Events • Coordination with Local Agencies • Customer Contact Centers • Brochures • Telemarketing • On-Line Request Form

17. SoCalGas & SDG&E: Integration & Leveraging • Integration with Energy Efficiency – e.g., Mobile Home, Innovative Outreach and Measure Program. Ltg Exchange, etc • LIHEAP Potential Opportunities • Implement a structured referral system • Track customer referral in the program database and measures installed by LIEE or LIHEAP. • Provide LIHEAP contractors serving the SoCalGas service territory access to SoCalGas’ LIEE database • Strategic Partnership with Imperial Irrigation District to provide low income customers in the overlapping service territories those measures offered by each utility • Strategic Partnership with Metropolitan Water District to leverage funds for the direct installation of HE clothes washers. • Cities, local communities & schools– continue to partner with these entities to conduct local events • CSI - coordinate efforts with the SF and MF program administrators to ensure that homes receiving CSI measures have received LIEE measures

18. SoCalGas: PilotHE Forced Air Unit Furnace • SoCalGas proposes to offer a natural gas high-efficiency FAU furnace pilot to customers with high space heating needs during the winter season. • The pilot will replace existing, inefficient operational natural gas FAU furnaces with high-efficiency units that have an efficiency rating of at least 92%. • The pilot will be implemented for approximately 250 customers and the installations will occur after the 2008-2009 winter season. • Bill analysis will be used to determine the cost effectiveness for each installation and the results will be evaluated to determine if this potential measure will be offered in upcoming program years to customers with high space heating needs.

19. SDG&E: Pilots Smart Meters - IHD & PCT • In Home Display (IHD) pilot - to customers with Smart Meters as part of the energy education process to help customers know their actual energy usage beginning in 2010 • Programmable Communicating Thermostat (PCT)pilot - beginning in 2011. PCTs are thermostats that can receive price or electric system reliability signals, and can be programmed by a customer to automatically reduce energy consumption through thermostat set-point adjustments.

20. SoCalGas & SDG&E:Proposed LIEE Budgets

21. SoCalGas & SDG&ECARE 2009-2011 Application • Propose same residential program requirements for Sub-Metered • Two year recertification cycle • Anniversary date renewal • Fixed Income Recertification • Propose two year recertification cycle for Expanded CARE Facilities • Propose to include Section 8 & Public Housing in Categorical eligibility • Continue of four year recertification using probability modeling • Expand phone enrollment, 3rd party outreach and leveraging opportunities • Telephone Enrollment • Continuation of Recertification Telephone Enrollment • Addition of Inbound Telephone Enrollment

22. Southern California Edison 2009-2011 Low Income Energy Efficiency Program Proposal

23. Customer Segmentation • Mild/Temperate Climates Zones • Hot Climate Zones • Customers receive all eligible measures • High use customers targeted

24. ME&O • CARE • ZIP7 • Data Sharing • Mobile Energy Units • Energy Education Kits • Targeted Direct Mail • Cross Promotion • Web-based Enrollment • Media Advertising • Community Events • Coordination with Local Agencies

25. Integration with Energy Efficiency • Home Energy Efficiency Rebates (HEER) • Multifamily Energy Efficiency Rebate Program (MFEER) • California New Homes Program (CANHP) • Comprehensive Mobil Home Program (CMHP) • Home Energy Efficiency Surveys (HEES) • Efficient Affordable Housing (EAH) • WE&T School Program

26. Integration with EE, cont… • Mobil Energy Unit (MEU) • Community Language Outreach Program (CLEO) • Energy Leader Partnership (EL) • Summer Discount Plan (SDP) • Advanced Metering Infrastructure (AMI) • Medical Baseline • Energy Assistance Fund (EAF)

27. SCE Application – Program Budget

28. LIEE Savings & Benefits

29. Cost Effective Measure Offering • Cost-effectiveness- First criteria considered in the review of potential measures • Efficient lighting • Refrigerator replacement • Evaporative cooler installation • Central air conditioner maintenance • Pool pump replacement

30. Non-Cost Effective Measures • In evaluating measures that were not cost-effective, SCE was guided by Commission intent to “… continue to authorize funding for measures that serve important social objectives but may not be cost-effective, as long as they serve our primary objective of reducing energy use and promoting other values such as participants’ quality of life • Central Air Conditioners • Window/Wall Air Conditioners

31. 2008 vs 2009LIEE Program Measures

32. SCE 2009 – 2011 Application 2009-11 Planned Proposal Recommendations: Same residential program requirements for sub-metered tenants Two-year certification for CARE Expanded Programs Probability Model for recertification Multilingual program awareness campaign Spanish, Chinese, Korean, Vietnamese, and Cambodian Work with Public Housing Authority and Section 8 agencies within SCE service territory to incorporate CARE application into agency intake process Expanded outreach CARE/FERA Administrative Budget Requested $4.2 Current 2008 Budget $5.5 million for PY 2009 $5.4 million for PY 2010 $5.5 million for PY 2011 32

33. PG&E’s 2009-2011 Low Income Energy Efficiency and CARE Program Proposals PG&E Low Income Oversight Board June 5, 2008 San Diego, CA

34. 2009-2011 LIEE Program

35. 2009-2011 LIEE Represents a Significant Program Expansion • Increased families served • Increased funding • 9 new pilot programs • 5 new program studies • 2 new measures • New segmentation and outreach approaches • New partnerships, leveraging, and integration opportunities

36. 2009-2011 LIEE Program Delivery Strategy • PG&E will offer the LIEE program through a multi-layered approach that considers: energy use, climate zone and housing type. • This approach makes some less cost‑effective measures available based on a customer’s electric and/or gas use. • Customers with the highest energy use also offer the greatest opportunity to save energy. • Helps customers: who save money on their bill • Helps all California ratepayers: who benefit as decreases in energy use strengthen the State’s energy resources and decrease GHG emissions.

37. LIEE for PG&E Electric Customers

38. LIEE for PG&E Gas Customers

39. Nine LIEE Pilots • Meals on Wheels – Deliver microwaves to those customers who receive meals and don’t have a microwave (80% more efficient than ovens). • High Efficiency Washing Machines – Deliver high efficiency washing machines to households with 5 or more members. Test the viability of this measure. • Habitat for Humanity – Join with humanitarian home builder and rehab partner to create more energy efficient low-income housing.

40. Nine LIEE Pilots (con’t) • City of San Jose – Partnering with City of San Jose’s strong neighborhood initiative program to assist in serving low income customers. • City of San Joaquin (Fresno County) – Partner with City to provide services to low income customers. • Energy Education Workshops – Continue to look for more efficient ways to perform group educations with CBOs.

41. Nine LIEE Pilots (con’t) • SmartAC – Leverage PG&E’s demand response programs to educate low-income customers about air conditioning cycling options. • SmartMeter™ – Focus on educating low income customers on the value of AMI and how it can help them lower their utility bills. • Online Training for LIEE Implementation Crews – Explore more efficient training options and reduce crew in-class training time by 50%.

42. 2009-2011 CARE Program • Proposed the same residential program requirements for Sub-Metered tenants • Proposed two-year certification for CARE Expanded Programs • Proposed a survey of customers not responding to Recertification and Post-Enrollment Verification requests • CARE Administration budgets requested: • ($7,732,000 current 2008 budget) • $8,761,000 for 2009 • $9,216,000 for 2010 • $9,521,000 for 2011

43. In Conclusion • PG&E’s 2009-2011 LIEE and CARE application represents a thoughtful balancing of: • LIEE as an energy resource • Cost-effectiveness • Increased funding without overburdening non-Low Income customers • Innovation & experimentation • Improving available information • Retention of valuable program elements • Health, Safety and Comfort for LIEE customers

44. PG&E 2009-2011 Low Income Programs Testimony • Internet links to PG&E's Application and Testimony for Approval of the 2009-2011 Low Income Energy Efficiency and CARE Programs and Budget: • Applicationhttps://www.pge.com/regulation/LowIncomeProgPY09-11/Pleadings/PGE/2008/LowIncomeProgPY09-11_Plea_PGE_20080515-01.pdf • Testimonyhttps://www.pge.com/regulation/LowIncomeProgPY09-11/Testimony/PGE/2008/LowIncomeProgPY09-11_Test_PGE_20080515-01.pdf

45. California Energy Efficiency Strategic Plan (CEESP):Update of the Low Income Strategies Presentation to the LIOB San Diego Gas & Electric Company Southern California Edison Company Southern California Gas Company Pacific Gas and Electric Company San Diego, CA June 5, 2008

46. LIEE Strategic Plan Update • The California Energy Efficiency Strategic Plan (CEESP) was filed 6/2/08 • ACR from Commissioner Grueneich dated 5/5/08 delayed filing of the CEESP from 5/15 until 6/2/08 • CEESP posted online at: http://www.californiaenergyefficiency.com/index.shtml • The LIEE Sector is addressed in Section 2 of the Plan, along with the Residential Sector • Still treated as a unique market sector • Places it where belongs and includes low income in the context of the residential sector

47. Six Low Income Strategies • Develop customer segmentation to improve program delivery • Pursue collaboration and leveraging of other programs • Integrate LIEE programs with Energy Efficiency and other demand-side programs • Promote the growth of a trained LIEE workforce by developing LIEE workforce training requirements • Specify and employ program elements that emphasize long-term and enduring energy savings • Specify and deploy Marketing, Education, and Outreach (ME&O) for LIEE program consistent with energy efficiency strategies

48. 1) Develop customer segmentation to improve program delivery … increasing the opportunities for program participation and energy savings • 1.1: Identify customer sectors or segments using dimensions such as energy use, geographic locations • 1.2: Develop and implement a plan to achieve 25% customer participation by 2012 • 1.3: Improve program delivery

49. 2) Pursue collaboration and leveraging of other programs • 2.1: Increase collaboration and leveraging with other low income programs and services

50. 3) Integrate LIEE programs with Energy Efficiency and other demand-side programs • 3.1: Coordinate and communicate between LIEE, EE and DSM programs to achieve service offerings that are transparent for the customer • 3.2: Leverage deployment of advanced metering (AMI) to inform and empower low income customers