Proposed IOU Statewide Implementation Plan of Continuous Energy Improvement (CEI) June 18, 2009 Angie Ong-Carrillo

1. Proposed IOU Statewide Implementation Plan of Continuous Energy Improvement(CEI)June 18, 2009Angie Ong-Carrillo

2. Continuous Energy Improvement • Applies the principles of well known business continuous improvement programs. • Customer engagement in long-term, strategic energy planning. • Applies the top-down approach that proposes to transform the market and reduce energy intensity and GHG emissions. • Leverages IOU’s IDSM program offerings in implementation. A cost effective approach.

3. Continuous Energy Improvement (CEI) • Comprehensive energy management approach that has corporate and facilities-based components

4. Assess Performance Determine customer’s energy management practices, and energy use baselines (at site and equipment levels). • Key Activities • Customer Energy Management Practices Assessment • Facility energy benchmarking, base-lining, measurement • Audits and system assessments • Review of existing audits

5. Make a Commitment Gain customer commitment to CEI at corporate and facilities levels • Key Activities • Present Strategic Management Documents and GHG Inventory Results • Commit to Energy and GHG Mitigation Goals • Identify Environmental Facilities Champion & Energy Team • Executive to Executive program (if appropriate)

6. Create Action Plan & KPIs Create action plan based on key performance indicators (KPIs) to establish goals and drive towards continuous improvement • Key Activities • Gap analysis and customer internal drivers guide Critical Action Items and Priorities • Develop High-Level and System-Level Key Performance Indicator (KPIs) baselines • Set short term and long term goals • Identify Energy Efficiency Projects • Document Action plan into IOU’s customer management system

7. Implement Plan Execute the plan, drive towards goals. Initiate work with customer on energy teams, champions and culture change. • Key Activities • Finalize Energy Projects • IOU IDSM staff support project implementation • Begin Measuring Project Impacts on KPIs • Develop Employee Energy & GHG Awareness Plan • Hold Employee Energy & GHG Awareness Kick-Off Event

8. Evaluate Progress Evaluate progress on plan goals • Key Activities • Evaluate energy performance • Re-evaluate Energy Management Practices • Identify additional Training Opportunities & Provide Recommendations

9. Modify Plan Correct course and keep momentum • Key Activities • Reassess Goals • Make Modifications to Action Plan and Strategies as Needed

10. Build Awareness & Reward Achievement Empower ownership, build morale, and recognize actions • Key Activities • Employee Energy Awareness Program and Posters • Integrate into corporate incentive program

11. Outcomes • In the implementation stage, IOUs will partner with customer to identify technical support, utility and non-utility resources to leverage IOU’s program offerings (integrated delivery) and act in accordance with the loading order. • Assist customer to manage the short term projects and engage in long term strategic energy management. • Performance tracking for AB32 and Energy Efficiency efforts. • Meet the long term objectives of California Energy Efficiency Strategic plan (CEESP)