Offering Low Income Programs in California: Meeting the Demographic Challenge

1. Offering Low Income Programs in California:Meeting the Demographic Challenge Mary O’Drain, Frances Thompson, Linda Fontes Pacific Gas & Electric Company National Low Income Energy Conference June 14, 2006 Washington, D.C.

2. PG&E Facts • Pacific Gas and Electric Company provides natural gas and electric service to approximately 15 million people throughout a 70,000-square-mile service area in northern and central California.  • Service area stretches from Eureka in the north to Bakersfield in the south, and from the Pacific Ocean in the west to the Sierra Nevada in the east • More than 139,000 circuit miles of electric lines • More than 45,800 miles of natural gas pipelines • 5 million electric customer accounts • 4.1 million gas customer accounts • Our customers include 20,833 schools, 3,239 hospitals, 20,698 high-tech companies and 768 military facilities • 20,300 employees

3. PG&E Service Area

4. Programs & Services Available to PG&E’s Low Income Customers • Rates • CARE • FERA • Medical Baseline • Rate Assistance • REACH • HEAP • Low Income Energy Efficiency • Energy Partners • Billing Services • Third-Party Notification • Balanced Payment Plan • Automatic Payment Service

5. PG&E Rates • CARE (California Alternate Rates for Energy) • PG&E’s low income rate discount: Offers a 20% discount on monthly gas and electric charges for low income households at 200% of Federal Poverty Income Guidelines. • FERA (Family Electric Rate Assistance) • For large households of 3 or more persons with low to middle-incomes. Charges “101-130% of baseline” rates for “131-200% of baseline” usage. • Medical Baseline • Provides additional quantities of energy at baseline price to residential customers dependent on life-support equipment and/or with special heating or cooling needs due to medical conditions.

6. Rate Assistance Programs for PG&E Low Income Customers • REACH (Relief for Energy Assistance through Community Help) • One-time energy–assistance program sponsored by PG&E and administered by the Salvation Army. • HEAP (Home Energy Assistance Program) • Federally-funded energy subsidy administered by the State through local agencies and CBOs. Provides qualified low income households with assistance on energy bills.

7. PG&E Billing Services • Third-Party Notification • Customers may name a friend or relative to receive duplicate copies of past-due notices. • Balanced Payment Plan • Monthly payments can be evened out to allow customers to budget energy costs and eliminate big swings in their payments. • Automatic Payment Service • Payments to PG&E are automatically deducted from customer’s bank account.

8. Low Income Energy Management at PG&E: CARE and Energy Partners • Statewide Programs • Regulated by the CPUC • Funded through Public Purpose Charges • Same Income Guidelines

9. CARE • CARE provides a 20% rate discount to qualifying low income customers. • 200% Federal Poverty Level Guidelines (with income adjustments for household size) • Customers self-certify, with random post verification • 1,110,013 PG&E customers are currently enrolled in CARE • 1,536,146 PG&E customers are currently estimated to be CARE-eligible • 73% penetration rate • $7.457 million 2006 CARE administration budget

10. CARE • PG&E goal to enroll 100% of eligible customers who want to receive rate discount on CARE. • CARE penetration rate increased from 53% in 2001 to 73% today • $4.9 million outreach budget • Funded through a public purpose charge on non-CARE customer bills

11. PG&E’s Low Income Energy Efficiency Program • PG&E’s “Energy Partners” Program helps low income customers reduce their energy consumption and costs while increasing their comfort and safety. • $68.761 Million 2006 Budget ($56.530 M authorized annual budget + $12.231 M unspent carryover) • 57,500 homes treated in 2005

12. PG&E’s Low Income Energy Efficiency Program • Serves customers at or below 200% of federal poverty guidelines • Serves single-family, multi-family and mobile homes • Owners and renters • LIEE participants receive all feasible measures for which they qualify • Has been operated since 1983 • Funded through a public purpose charge on customer utility bills

13. Attic Insulation Low Flow Showerheads Water Heater Blankets Door Weatherstripping Attic Access Weatherstripping Caulking Outlet Gaskets Faucet Aerators Water Heater Pipe Wrap Evaporative Coolers Evaporative Cooler Covers Refrigerator Replacement Hard-Wired Compact Fluorescent Porch Lights Compact Fluorescent Lamps Window/Wall Air Conditioners Central A/C Minor Home Repairs Furnace Repair and Replacement Duct Testing and Sealing Energy Education Energy Partners MeasuresQualifying Energy Partners participants receive free energy services and measures, including: energy education, weatherization and energy efficient appliances.

14. Who Are PG&E’s Low Income Customers? • Beginning in 2001, PG&E clearly defined its CARE-eligible households so that it could develop a targeted outreach and education plan. • PG&E learned that CARE-eligible customers fall into the following demographic groups: • 97% of all eligible customers speak one of five languages at home: English, Spanish, Cantonese, Mandarin or Vietnamese. • Forty-three percent are Spanish-dominant. • Low income households are predominantly ethnic minorities. • These include a mix of seniors, rural residents, agricultural farm workers and residents of sub-metered tenant facilities • While the male head of household is often the customer of record, the female head of household usually makes energy and spending decisions and takes action on important issues.

15. Low Income Outreach Efforts • PG&E launched an integrated communications and outreach effort for CARE in 2001 • Marketing • Including: multi-lingual educational materials, enrollment events and local media outreach • Focus on previously underrepresented target areas within the PG&E service area, identified by ZIP code. • Capitation Fees • Supporting the participation of grassroots organizations as Community Outreach Contractors (COCs). • Grassroots Paid-Media Placements • Targeting low and fixed income households. • Local and In-language

16. 2005 Campaign Highlights • Activities included • Community outreach • Grassroots media • Multilingual Direct mail • Partnerships with government agencies, COCs and faith-based organizations

17. Hispanic Program • PG&E’s largest low income customer group • Media relations key to successful outreach • CARE was supported and mentioned by Hispanic television stations, which are heavily watched by the target audiences. • Community outreach • Participation in community events • English/Spanish CARE direct mail piece developed • English/Spanish door hanger distributed in the top 10 target counties • Public service announcements in Spanish for local radio and television stations promoted special CARE events, bill inserts and CARE income guideline changes

18. African American Program • African Americans are more likely to be reached through media, restaurants, stores, recreational centers and places of worship that specifically serve them. • Network through churches • Enlist pastors and church organizations • Booths at Community Events • Targeted media • News releases to community radio stations and newspapers • Radio Testimonials • Local TV • For example: A gospel show dedicated to promoting the CARE program aired among African American viewers in the Bay Area. • Door hanger applications • Targeted zip codes

19. Asian American Program • The CA Asian American community is extremely diverse, with many distinct groups. • Includes Chinese, Vietnamese, Hmong, Korean, Cambodian, Laoation, Mien, Filipino • Primary and secondary target markets identified based on population size, income levels and in-language preference. • In-Language prompts developed for call-in lines • Collateral materials distributed through COCs • Partnerships with local agencies • In-language Direct Mail • Booths at community events • Targeted Media

20. Bill Inserts Business Partners Community Outreach Partners (COCs) Direct Mail PG&E Employee Involvement Enrollment Events Kiosk Leveraging Endorsements Media Relations Multicultural Collatoral Materials Multilingual Call-in Line Paid Media Partnerships Rural Outreach Senior & Disabled Outreach Web Phone Enrollment Successful Outreach Methods

21. Questions? • Mary O’Drain: Low Income Programs Policy and Regulatory • MJOb@pge.com • Frances Thompson: Energy Partners Program Manager • FLT2@pge.com • Linda Fontes: CARE Program Manager • LCF2@pge.com