Click to edit Master title style 1 Utility CARE/TANF Leveraging Program Utilize up to $10 Million in IOU CARE Funds to Leverage with $40 Million in ARRA.

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Click to edit Master title style 1 Utility CARE/TANF Leveraging Program Utilize up to $10 Million in IOU CARE Funds to Leverage with $40 Million in ARRA Temporary Assistance to Needy Families (TANF) Funds Tory Francisco Low Income Energy Efficiency Analyst June 2, 2010

Click to edit Master title style 2 Background/Summary  The American Recovery and Reinvestment Act of 2009 (ARRA) Temporary Assistance to Needy Families (TANF) Emergency Funds:  TANF Funds are Federally administered by the U.S. Department of Health and Human Services to the California Department of Social Services (CDSS)  TANF is a block grant program to help move recipients into work, making welfare assistance only temporary  ARRA authorized an extra $5 Billion in emergency funding nationwide during fiscal year to be funneled through TANF for needy families.  $1.8 billion is available for California in emergency funding  Assistance period expires September 30, 2010  Commission Rulemaking , aimed at reducing number of gas and electric utility service disconnections, ordered the IOUs to make use of the ARRA/TANF emergency fund in combination with CARE dollars for bill payment assistance.

Click to edit Master title style 3 Objectives of the CARE/TANF Program  Objectives:  Leverage up to $10 million in IOU CARE funds with $40 million in TANF funds ($1 in CARE funds for every $4 in TANF funds) for a potential total program budget of $50M that can go towards utility bill payment assistance  Assist CARE and TANF qualifying families with their past due utility bills to help reduce and avoid service disconnections for eligible families in the PG&E, SCE, SoCalGas and SDG&E service territories  Continue and retain the existing IOU-run bill payment assistance programs such as PG&E’s REACH program or SoCalGas’ Gas Assistance Fund for customers ineligible for the CARE/TANF program

Click to edit Master title style 4 Funding of the CARE/TANF Program  Proposed Funding for 4 IOUs’ CARE/TANF Programs  $ 10 Million total in IOU CARE funds:  $5 Million of PG&E CARE Funds  $2 Million of SCE CARE Funds  $2 Million of SoCalGas CARE Funds  $1 Million of SDG&E CARE Funds  $40 Million of TANF Emergency Funds total for the 4 IOUs  Resulting in potentially $50 Million in total CARE/TANF Program Budget  $25 Million of PG&E CARE/TANF Funds  $10 Million of SCE CARE/TANF Funds  $10 Million of SoCalGas CARE/TANF Funds  $5 Million of SDG&E CARE/TANF Funds  Allocation of Administrative Funds  Between 15-20% of total program costs will be allocated for administrative costs, of which 80% will be covered by TANF Funds

Click to edit Master title style 5 Program Activities and Tentative Schedule  April 8, 2010  Commission approves $5M in CARE funds for PG&E to be leveraged with TANF funds  April 22, 2010  Commission approves $5M combined in CARE funds to be leveraged with TANF funds for SCE, SoCalGas, and SDG&E  May, 2010  CDSS applied for $20M in TANF Emergency Funds on behalf of the counties to the Department of Health and Human Services for use in the 2 nd Quarter 2010 (April-June)  June, 2010  Department of Health and Human Services expected to issue 2 nd Quarter fund awards  June 7, 2010  State will apply for the remaining $20M in TANF Emergency Funds on behalf of the counties to the Department of Health and Human Services for use in the 3 rd Quarter 2010 (July-Sept)  June-July 2010  Department of Health and Human Services expected to issue 3 rd Quarter fund awards  June-September 2010  The Salvation Army, or respective IOU program administer, distributes funds to eligible customers  September 30, 2010  Program is expected to end, unless extended by the Federal Government