Non-Pay Service Disconnections and Outreach Efforts Presentation to the LIOB January 26, 2010 San José, CA DRAFT

2 Non-Pay Disconnects

3

New Customer-Centric Policies and Procedures 4 Implemented a disconnect moratorium from December 15, 2009 to January 4, 2010 for residential and small commercial customers Waiving deposit where applicable for residential and small commercial customers if customers enroll in Automatic Payment Service (APS) Temporary suspension of deposit request after service disconnection for non-payment through Q1, 2011 Second chance payment arrangement opportunity for residential and small commercial customers with previously broken pay plans Relief for Energy Assistance and through Community Help (REACH) and Temporary Assistance to Needy Families (TANF) pilot with Alameda County beginning January 4, 2010

Enhanced Direct Customer Communication and Education 5 We have expanded beyond our traditional outreach New pay plan reminder call three days prior to payment due date Ability to connect live with customer service representative New outbound call to customer at time of 48-hour notice Ability to connect live with customer service representative Final contact by outbound call to customer prior to service disconnection New ability to connect live with customer service representative and establish a payment arrangement New direct mail campaign communicating customer and financial assistance programs to customers receiving 48-hour notice “Breathe Easy Solutions™” brochure now includes payment arrangement information and is being inserted with late notices Delinquency notices contains additional customer assistance information

Collection Cycle Touch Points 6 Although PG&E tariffs allow customers to be considered past due 19 days after the bill is mailed, based on current practice, PG&E does not send a delinquency notice until 42 days after the bill is mailed. Total number of days from the bill mailing to when an order is issued for service disconnection is approximately 70 days. Customers can request a payment arrangement from the time the bill is generated to before an order is issued for shut-off of service. Now customers with a payment arrangement longer than 7-days will be provided a reminder call 3 days prior to the schedule payment date. Now customers with two or more broken payment arrangements within the last six-months will be eligible for a 2 nd Chance Payment Arrangement.

Collection Timeline and Touch Points 7 Added customer touch points in collection follow up cycle Delinquency notification process 1.15-day notice hour notice Outbound call generated informing customer of the availability of payment arrangements and other assistance programs with an option to speak to a customer service representative. Breathe Easy Solutions TM brochure will be inserted within the notice beginning mid-January. Until then, customer will receive a Breathe Easy Solutions TM letter. 3. Outbound call Call will have prompt to request a payment arrangement or to speak with a customer service representative. 4. Order issued for shut-off of service Through March 2011, deposits will not be requested at time of service restoration after they had been previously disconnected for non-payment.

Collection Timeline and Touch Points 8 Additional sensitivity in treatment of medical / life support customers Delinquency notification process 1.15-day notice 2.48-hour notice Outbound call generated informing customer of the availability of payment arrangements and other assistance programs with an option to speak to a customer service representative. Breathe Easy SolutionsTM brochure will be inserted within the notice beginning mid-January. Until then, customer will receive a Breathe Easy SolutionsTM letter. 3.Outbound call Phone attempt and/or 15-day warning letter to customer. Certified Letter, notifying customer of date of service disconnection. Phone attempt and/or letter from PG&E Customer Relations for final pay plan. 4. Order issued for shut-off of service

Enhanced Outreach and Customer Assistance 9 Media Winter Gas Savings Program advertising Proactive media outreach to raise awareness of programs 40+ news articles to date Additional outreach, including press release scheduled for January to communicate financial assistance programs Airing targeted television advertisements for CARE program Online Placed prominent new banners on pge.com to direct customers to information on financial assistance options Leveraged social media channels (PGE4ME on Twitter) to reach out to customers Messages “retweeted” by stakeholder groups like State of California, City of San Carlos, Alameda County, City of Fresno and City of Roseville Google key word search optimization Community Outreach Outreach to businesses announcing workforce reductions

Cumulative Impact Outreach efforts have resulted in significant participation in customer assistance programs, including a record high number of payment arrangements. Number of customers eligible for disconnection has declined significantly.

Appendix

12 Breathe Easy Solutions™

13 Breathe Easy Solutions™

14 Breathe Easy Solutions™

PG&E.com

Notices PreviousNew

Notices PreviousNew

18 January Winter Gas Savings Bill Insert

19 January Energy Partners Insert

Customer Assistance Programs California Alternate Rates for Energy (CARE) Program Provides a monthly discount on energy bills for income-qualified households. Family Electric Rate Assistance (FERA) Program Provides a monthly discount on electric bills for income-qualified household of three or more persons. Relief for Energy Assistance through Community Help (REACH) Provides a one-time energy assistance, sponsored by PG&E and administered by the Salvation Army. Helps income-qualified customers who experience severe or unplanned hardships and are unable to pay for their energy needs. Payment Arrangements Allows customers experiencing payment difficulty additional time to pay their bill. Payments can be made in installments for as long as a 12-month period. Energy Partners Provides income-qualified customers free energy education, weatherization measures and energy-efficient appliances to reduce gas and electric usage. Weatherization measures may include caulking, weather-stripping, CFLs, and attic insulation. Appliances may include refrigerators and air conditioners.

Customer Assistance Programs Third Party Notification Allow customers to name a friend of relative to receive duplicate copies of past- due payment notices. The designated person is not responsible for paying the bill, but can contact PG&E to help resolve the problem. Bill Guaranty A deposit alternative which enables customers to secure their account by having another qualifying PG&E customer sign on their behalf. Automatic Payment Service Payments to PG&E are automatically deducted from customer’s bank account. Balanced Payment Program Monthly payments can be averaged out to allow customers to budget energy costs and eliminate big swings in payments. Customers will usually pay the same amount every month which can help during extreme-weather months. Rebates For Your Home Provides a wide range of rebates- from instant savings on lighting products to our appliance recycling program- to help save energy and money.

Outreach and Customer Assistance PG&E continues to explore enhanced and new customer assistance options. However, the greatest immediate opportunity to assist our customers lies in increased outreach to raise awareness and participation in our existing programs. This includes outreach through: – Direct mail – Targeted advertisements – Bill inserts – Outreach events – Collaboration with community partners – Web banners – On hold messaging – Workforce outreach – Door-to-door canvassing

Outreach Highlights Bundled existing programs and services as “Breathe Easy Solutions™” to increase awareness and simplify enrollment Proactive outreach to customers who have historically made timely payments but are now in delinquent status Door-to-door canvassing of income-qualified zip codes to promote CARE and Energy Partners Program Participated in 140 multicultural and community events and presentations throughout service area to promote CARE and other customer assistance programs Partnered with other utilities for “We CARE California” resource fairs in Bakersfield and Stockton Bill insert for Energy Partners Program Proactive media outreach to raise awareness of programs Outreach to businesses announcing workforce reductions

Many Touch Points with Customers