2019 Low Income Needs Assessment Study Public webinar - May 19th, 2017 10am-12n

Today’s Agenda Welcome & Introductions Overview Presentation Purpose of the meeting History & Lessons Learned - Prior LINA studies Relevant issues today - 2019 LINA study Discussion of Proposed Study Scope Overall topics, basis and rationale Topic-specific discussion Next Steps

Introductions The Study Team & Structure Energy Division Syreeta Gibbs* IOU Measurement & Evaluation Carol Edwards (SCE)* Mary O’Drain (PG&E) Joyce Kwok (SoCalGas) Brenda Gettig (SDG&E) Research Consultant TBD *Lead

Purpose of the meeting Initiate the study process Review lessons learned Solicit input and discuss study scope Review overall timeline and process

History & Lessons Learned Part 1 - Background and overview

History & Lessons Learned What is the Low Income Needs Assessment? What is the impetus for the study? What have we learned from prior studies? What do we want to learn from the 2019 study?

History & Lessons Learned What is the Low Income Needs Assessment The study is conducted largely to help us understand… Energy related needs of eligible customers met/not met by ESA and CARE The size and profile of the market & program penetration Benefits of the ESA and CARE programs Barriers to addressing relevant energy needs Opportunities for increasing participation and the value of the programs

History & Lessons Learned What was the impetus for the study Initial Low Income Needs Assessment initiated by the Commission in 2002 Done in response to requirement in AB 1890 enacted in 1996 The initial study was completed in 2007 Low Income Needs Assessments were also completed in 2013 and 2016* Today’s discussion addresses the next 2019 Low Income Needs Assessment *Enactment of AB 327 requires a Low Income Needs Assessment every 3rd year

History & Lessons Learned Part 2 - Prior low income Needs Assessment studies

History & Lessons Learned 2007 Low Income Needs Assessment - Highlights The original scope included many objectives including some that were modified and added The project took longer and cost more than anticipated The results were widely used for multiple program cycles The study reported data on key issues including: CARE/LIEE (ESA) program eligibility, penetration and potential; relevant barriers to participation; service and measure needs and gaps.

History & Lessons Learned 2013 Low Income Needs Assessment - Highlights Original scope more focused & tightly managed Built off what was learned & used different analytical approaches Technically challenging to complete within budget and timeframe The study’s scope focused largely on: CARE & ESA penetration and participation barriers; ESA “unwillingness”; energy needs, burden, and measure benefits.

History & Lessons Learned 2016 Low Income Needs Assessment - Highlights We have learned a lot, some of which remains relatively consistent We can continue to build on our knowledge and revisit issues as appropriate The study had a very tight time frame The study’s scope focused on deeper understanding of energy burden, insecurity and hardship; as well as unique customer needs, measure benefits and requirement for income documentation.

Considerations for Study Scope EM&V Requirements and best practices Consideration of “Normal” study execution requirements Specific steps that are part of the process Time required to execute those steps Benefits of not shortchanging the process & reporting Technical considerations in defining the scope Well defined vs more general objectives More vs fewer objectives Consideration of vetting and input processes Consideration of study approach, data needs, analyses and reporting

Considerations for Study Scope The study structure & process Energy Division is the lead and will provide overall direction SCE will provide contract & day to day management ED and the IOUs will coordinate jointly with the consultant The IOUs, Low Income Oversight Board, and stakeholders will provide input on study activities throughout the process

Considerations for Study Scope Rationale for preliminary 2019 plan AB327 requirements: Language as per PU Code 382 Study completion deadline (Dec 2019) CPUC Guidance (D.16-11-022) Relevant gaps and recommended areas of inquiry based on status and expectations of the programs and prior work Lessons Learned (as per above, other studies, & input from stakeholders) Constrained timeframe & budget Focused effort – identify key (new) needs Focused effort – obtain more depth/robust data in select areas  

Considerations for Study Scope Rationale for preliminary 2019 plan PU Code 382 …The assessment shall evaluate low-income program implementation and the effectiveness of weatherization services and energy efficiency measures in low-income households. The assessment shall consider whether existing programs adequately address low-income electricity and gas customers’ energy expenditures, hardship, language needs, and economic burdens.

2019 Needs Assessment Considerations for Study Scope Areas of Consideration Impetus for inclusion P.U. Code 382 CPUC D.16-11-022 Limited existing knowledge Study identified gap/need Lends itself to study Relevant to CARE / ESA Understand more about CARE eligible unenrolled customers including potential market-specific barriers (e.g., undocumented immigrants, high poverty, attrition, hard to reach, etc.) + Examine how & extent to which (select) ESA measures mediate Health/Comfort/Safety hardship across housing types Explore hardship in areas with less reliable energy performance - Explore hardship and burden of customers without access to electricity or natural gas and CSD programs

Topic-Specific Scope Considerations 2019 Low income needs assessment study

2019 Needs Assessment: Topic: CARE Eligible Unenrolled Population Background Little known about our CARE Eligible and not enrolled Some data on this group from recent studies Some analysis via zip level data (not HH level) has been done   Potential Research Questions For Discussion What are the characteristics of this population (e.g. previously vs. never enrolled?) Are there usage, income, or other key indicators of enrolled vs. not enrolled? To what extent do current outreach methods and strategies access these customers? What role does the categorical eligibility and enrollment channel play in understanding penetration? What are the education or trust barriers / opportunities? What drives CARE "unwillingness"? Differentiate between 'unreached' (unaware) and 'unwillingness' (know about program and choose not to take discount as a result of fear, pride, trust etc. (i.e. undocumented pop). What is the size of the eligible unenrolled market (e.g., unwilling, non responders to verif, unaware, etc.) How may we better target, encourage, enroll and retain this population?

2019 Needs Assessment: Topic: Examination of whether and how ESA Measures Mediate Health/Comfort/Safety Hardship Across Housing Types Background Some measures are expected to mediate hardship via Health, Comfort and Safety benefits Little is known about the specific nature of these benefits and which customers receive them The investigation will likely be targeted to specific measures and regions Potential Research Questions For Discussion How do specific measures contribute to health, comfort and safety of customers to reduce hardship? To what extent do measures installed for health, comfort and safety provide value and/or other benefits? What are the customer and contractor reported benefits of different types of heating and cooling measures across housing types and climate zones? Among select measures, which ones provide relatively more or less benefit in terms of health, comfort and safety? What factors are relevant to understanding the benefits of these measures (e.g., usage patterns? # in households, health issues, behavioral, dwelling characteristics, status of replacement, etc.) What is the relative value for cost from customer perspective (e.g., perceptions of value relative to participation requirements or keeping existing measure, different alt measure, etc. etc.) What is the relative measure value for cost from perspective of other stakeholders (e.g., ratepayers, contractors, implementers), (including, for example, financial, time, savings, health, comfort, safety, etc.)? What tenant benefits translate across the MF market or are unique to types of property or ownership structure?

2019 Needs Assessment: Topic: Hardship in Areas with Less Reliable Energy Performance Background D.16-11-022 suggests examination of energy hardship and burdens of customers residing in areas of less reliable energy service and recommend whether CARE or ESA would address those needs. The IOUs filed a PFM on 3/24/17 seeking removal of this topic from the study scope Limited time / budget Focus on examination of issues associated with CARE & ESA implementation Topic more appropriate for Transmission and Distribution Resolution to PFM pending. Discussion & Input

2019 Needs Assessment: Topic: Hardship and Burden of Customers Without Access to Electricity or Natural Gas Background D.16-11-022 suggests examination of energy hardship and burdens of customers who rely on wood, propane, diesel and other fuels in conjunction with examination of CSD programs to support these customers. The IOUs filed a PFM on 3/24/17 seeking removal of this topic from the study scope Limited time / budget Not prudent use of IOU ratepayer funds expected to support improvements to CARE & ESA programs Topic more appropriate for CSD to fund and research Resolution to PFM pending. Discussion & Input

2019 Needs Assessment: Topic: Undocumented Immigrant Population in SoCalGas’ Territory Background D.16-11-022 suggests examination of ESA barriers to participation among undocumented immigrant customers in SCG service area to facilitate enrollments. The IOUs filed a PFM on 3/24/17 seeking removal of this topic from the study scope Limited time / budget Topic examined in prior work Serving SCG not SW program Challenging to obtain representative sample Resolution to PFM pending. Discussion & Input This topic area has been expanded statewide and may be incorporated into examination of CARE eligible unenrolled.

Next Steps

Next Steps Draft Schedule Pre-Study activities May 2017 - September 2017 Initial public workshop to solicit feedback on proposed scope Finalize & obtain approved study scope Prepare and disseminate Request for Proposals Bidding and contracting process Study Execution October 2017 – December 2018 Refinement of research plan 2nd public workshop& comment period Data collection and analyses Draft results and additional analyses Review results, draft & final reports December 2018 - September 2019 Study team reviews Review of draft report 3rd public workshop & comment period Review/edit draft and final reports & post FINAL Report

Next Steps Public Input Process Input on Today’s Webinar Presentation deck available & comments solicited via https://pda.energydataweb.com Accepting comments through 5/26/17 Study Contacts Syreeta Gibbs (CPUC, ED) syg@cpuc.ca.gov 415-703-1622 Carol Edwards (SCE) Carol.Edwards@sce.com 626-302-0621