© 2006 The Gas Company. All copyright and trademark rights reserved. Implementation Update of Southern California Gas Company’s CARE & LIEE Programs Presentation to the LIOB January 26, 2010 San Jose, CA

2 LIEE Program Budget and Units

3 LIEE Through December 2009 Activity Budget62,571,908Homes Treated75,418 Expenditures$49,468,562Homes Goal110,864 Percent79%Percent68% Energy Savings & Demand Reduction Therms1,426,199 Measure Installations Water Heating64,098RefrigeratorsN/A Envelope & Air Sealing60,259LightingN/A Heating5,561CoolingN/A

4 Other LIEE Figures 2,119 (2.5%) of all LIEE participants in 2009 were identified as being disabled. 3,125 (3.7%) of all homes served in 2009 were considered go-backs.

5 LIEE Outreach/Ethnic Media Outreach Targeted Direct Mail/Bill Inserts CARE customers with higher than average annual therm usage. Customers identified in the PRIZM code segment as “Challenged” households Senior citizens on the CARE program. Two separate bill inserts in English/Spanish targeting CARE customers throughout SoCalGas territory. These bill inserts targeted 1.3 million low income customers. AVM Campaign Contacted CARE PEV customers for LIEE Enrollment. Targeted English and Spanish CARE customers in low-income zip codes Web Activities Launched an English electronic LIEE request form on the website to enroll LIEE customers Posted LIEE service video on SoCalGas in both English and Spanish Launched and campaign to 200,000 customers enrolled in “My Account” SoCalGas launched a six week LIEE advertising campaign Designed to draw customers to the LIEE web site or to call toll-free Included in bus shelter and interior bus cards, and ads in targeted community publications

6 LIEE Outreach/Ethnic Media Ethnic Media 1st Quarter - Economic Hardship Campaign The campaign theme was designed to help families through tough times by offering supportive services on CARE, LIEE, energy efficiency and other SoCalGas programs. African-American publications estimated impression totaled 188,600 Hispanic publications estimated impressions totaled 559,500 General publications estimated impressions totaled 3,675,761 Asian publications estimated impression totaled 157,502 2 nd Quarter - WeCARE Campaign WeCARE was a weeklong series of customer resource fairs held the week of April in partnership with the CPUC. The fairs featured information about customer assistance programs, such as CARE rate discount for income-qualified families and free home improvement services to qualified customers as well. Special attention was given to newly unemployed customers. African-American publications estimated impression totaled 327,000 Hispanic publications estimated impressions totaled 1,282,348 General publications estimated impressions totaled 184,204 3 rd Quarter - LIEE Campaign Designed to draw customers to the LIEE web site or call toll-free. Focused on out of the home which included bus shelters, interior bus cards, cash jackets at check-cashing locations and print ads in community publications to reach the following ethnic markets. African-American publications estimated impression totaled 927,591 Hispanic publications estimated impressions totaled 52,500 General publications estimated impressions totaled 842,493 4 th Quarter – Winter Customer Assistance Campaign To help customers save energy and money, SoCalGas launched a winter campaign in Dec to promote no-cost home improvements. Campaign elements included radio traffic reports, local TV news, community print newspaper and included “added-value” online banner ads to drive customers to or African-American publications estimated impression totaled 188,600 Hispanic publications estimated impressions totaled 559,500 General publications estimated impressions totaled 3,675,761 Asian publications estimated impression totaled 157,502

7 CARE CARE Penetration Participants Estimated Eligible Participants Year-to-Date Penetration Rate 1,560,5431,772, % Process Improvements and Program Highlights – 2009 Expanded leverage opportunities New data sharing with LADWP and Imperial Irrigation District, in addition to automatic enrolments of LIHEAP, GAF, DAP, IOUs’ low- income programs participants Implemented enhancements to reduce participation barriers Recertification data sharing with SCE Categorical Eligibility expansion Maximized enrollment process automation Fully automated online applications and phone enrollments 92% of CARE applications received were processed following best practices Promoted paperless applications Web enrollments and recertification Phone enrollment and phone recertification

8 CARE Outreach/Ethnic Media Outreach The Gas Company’s CARE outreach plan consisted of the following outreach tactics that were strategically implemented throughout the 2009 PY: Direct Mail: Three Bi-lingual (Eng/Sp) targeted campaigns (944k pieces total) rotated throughout the service area designed for long-term low income customers and the recently unemployed/furloughed. Bill Inserts: Four separate and staggered bill insert campaigns sent to all residential non-CARE enrolled customers. One of these campaigns was specifically designed for Expansion customers. AVM: Monthly automated voice messaging telephone campaigns used both for direct CARE enrollment and recertification. Twelve individual targeted campaigns incorporating over 1m automated phone calls. Monthly electronic communications consisting of e-newsletters and associated links and articles to non-CARE customers promoting the CARE program. E-distribution lists range from 30k to 700k depending on targeting method used. Capitation Program: Year round program promotion/enrollments provided by a network of CBOs located throughout the service area. 3rd Party Program: Year round door-to-door personalized outreach utilizing in-person program enrollment methods. Program Leveraging: Emerging tactic deigned to provide program promotion and enrollments through established assistance organizations beyond the IOUs. Events: Participation in public and private community venues having a high probability of attendance by low income customers often with non-GM or mixed ethnic backgrounds. This outreach tactic was expanded to include two mass media based telethons in Redundant marketing is conducted throughout the SCG CARE PY to maximize customer exposure to the CARE enrollment message through multiple channel opportunities.

9 CARE Outreach/Ethnic Media Ethnic Media 1st Quarter – “Jan-Feb” Economic Hardship Campaign This print campaign was designed to help families through tough times by offering supportive services like CARE, LIEE, energy efficiency and other SoCalGas programs. General Market: Includes Seniors and African-American channels Hispanics Asian: Includes Chinese, Korean, Mandarin and Vietnamese channels 1st Quarter – “March-April” CARE Campaign System wide multimedia campaign incorporating traffic radio, TV billboards, newspaper and magazine ads and web based advertising. The campaign was timed for released with a system wide CARE bill insert and also targeted newly unemployed customers. General Market: Includes Seniors and African-American channels Hispanics Asian: Includes Chinese, Korean, Mandarin and Vietnamese channels 2nd Quarter - WeCARE Campaign WeCARE was a weeklong series of customer resource fairs held the week of April in partnership with the CPUC. The fairs featured information about customer assistance programs, such as CARE rate discount for income-qualified families and free home improvement services to qualified customers as well. Special attention was given to newly unemployed customers. General Market: Includes Seniors and African-American channels Hispanics 4 th Quarter – Winter Customer Assistance Campaign To help customers save energy and money, SoCalGas launched a winter radio/print campaign in Dec. to promote CARE and other assistance programs, elements included radio traffic reports, local TV news, community print newspaper and included “added-value” online banner ads to drive customers to or General Market: Includes Seniors and African-American channels Hispanics Asian: Includes Chinese, Korean, Mandarin and Vietnamese channels

10 Other Efforts Leveraging Partnered with two USC school programs in South and East LA areas in which the majority of residents are low income and disadvantaged. Completed four events to encourage low income parents to participate in LIEE program. These parents are engaged and look to USC to bring resources to them. Program Leveraging is designing and implementing tactics to provide program promotion and enrollments through established assistance organizations such as Public Utilities, Counties, Cities and School Districts) Integration Collaboration with internal EE staff to screen out potential low- income customers for LIEE enrollments. Some integration efforts have identified about 10%-15% of EE customers eligible for LIEE.

11 Other Efforts Pilots Natural Gas High Efficiency Forced Air Units Furnace Pilot  Authorized budget: $924,203  Expenditures to date $0 Studies Non Energy Benefits  Authorized budget: $30,000  Expenditures to date $0 * Based on Southern California Gas Company (U 904 G) Low Income Energy Efficiency (LIEE) and California Alternate Rates for Energy (CARE) Program Monthly Report for December 2009.

Looking Ahead LIEE Continue to increase Leveraging with LIHEAP, Municipal Utilities and other non-LIEE CBOs and community resources. Continue to increase Integration with SoCalGas EE. Expand data mining and customer information collection to increase contractors’ success in LIEE enrollments and enhance support to LIEE Contractor network for capacity building. Issue 2010 RFQ/RFP for new contractors in E&A, Weatherization and Gas Appliance services. Focus LIEE operational efforts in hard-to-reach communities. Target customers from 2009 where enrollment was attempted, but customer did not respond. CARE Build on the successful 2009 outreach tactics with focus on technology based tactics (e.g. AVM & web) Continue seeking internal and external leveraging opportunities for enrollment and marketing purposes Telethons and select community events for niche marketing Explore new communication channels such as social networks Enhance enrollment process Real-time web enrollment instead of current daily batch process Expanded online CARE forms for use Capitation and 3rd Party agencies

13 Customer Privacy – Current Practices Relevant excerpt from the Southern California Gas Company’s Privacy Policy [1] [1] “The Southern California Gas Company (SoCalGas) will not disclose the information you give us with any third party except to the extent such third party requires such information in order to perform services for SoCalGas related to SoCalGas’ own business purposes, unless required by law, or when necessary to protect the Web site or SoCalGas. We will not collect or sell your information for commercial purposes with third parties.” [1] [1] SoCalGas’ privacy policy is available at