Click to edit Master title style 1 California Energy Savings Assistance Program (ESAP) Program Overview Goals, Accomplishments & Challenges Senate Committee on Energy, Utilities & Communication Hearing on Energy Efficiency, May 17, 2011 Jeanne Clinton and Ava Tran, California Public Utilities Commission

Click to edit Master title style 2 Energy Savings Assistance Program Overview  Purpose:  Reduce energy consumption by eligible households,  Lower utility bills for these low income participants, and  Improve quality of life via health, safety, comfort improvements.  Eligible Participants: Estimated 5 million eligible households in IOU service areas, earning < 200% of federal poverty level.  Income Eligibility

Click to edit Master title style 3 Energy Savings Assistance Program Overview  Eligible Participants:  Covers single family, multi-family, mobile home, non-profit group living home customers; renters as well as owners.  Penetration Goals and Achievements to Date:  participation includes approximately 23% Multifamily treatment statewide

Click to edit Master title style 4 ESAP Program At-A-Glance  Program Components and Funding:  Provides weatherization, energy efficiency, minor home repairs, and household energy education  IOUs administer; services delivered through various IOU approved contractors and local providers  Ratepayers support 100% of costs of installed measures  Program funded by gas and electric ratepayers:  CY 2011 $167 M from electric ratepayers (originally via public goods charge component) and  CY 2011 $152 M from gas public purpose funds

Click to edit Master title style 5 Energy Savings Assistance Program Goals  Low Income Energy Efficiency Strategic Plan Vision*  By 2020, 100 percent of eligible and willing customers will have received all cost-effective low income energy efficiency measures.  Strategic Plan Goals  By 2020, all eligible customers will be given the opportunity to participate in the Energy Saving Assistance Program; and  The Energy Saving Assistance Program will be an energy resource by delivering increasingly cost-effective and longer-term savings. * ESAP is a companion program to the CARE rate discount.  CARE offers 20% rate discount on utility bills to the same eligible population.  CY 2011 authorized collections for CARE are $900 million.  If successful, ESAP will reduce both energy use and annual cost of CARE.

Click to edit Master title style 6 Energy Savings Assistance Program Budgets and Penetration Program Year 2010PGESCESDGESoCalGas Average Cost Per Home$1,078.07$534.41$874.84$606.33

Click to edit Master title style 7 Energy Savings Assistance Program Savings Progress Program Year 2010PGESCESDGESoCalGas Average kWh Savings per Home Average Therms Savings per Home Portfolio Utility Cost Test

Click to edit Master title style 8 Energy Savings Assistance Program Accomplishments  Emphasis on long term and enduring savings, rather than quick fixes  Smarter outreach by focusing on customers with high energy use, burden, and insecurity, as well as whole neighborhoods  New, single statewide name for the program across all utilities  Enhanced outreach to the disabled, some 20% of eligible customers  A greater focus on cost-effectiveness of chosen measures  A greater focus on promoting workforce education and training  A greater focus on equity across the low-income housing population  Reached over 300,000 homes in 2010 with a goal to reach another 300,000+ in 2011  Estimated energy savings of 86,500 mWh and 5,700 mTherms in 2010

Click to edit Master title style 9 Program Evaluation and Measurement of Outcomes  Independent consultants evaluate the program's energy savings impacts, effectiveness of IOUs’ program delivery methods, and efficiency behavioral practices of low income customers.  Early 2011 draft evaluation reports concluded the following:  Energy savings in 2009 were lower than the 2005 report, possibly due to the methodology chosen, diminishing savings available, or interim efficiency gains from appliance standards.  Refrigerators and lighting measures account for the largest electricity savings;  Water conservation and air sealing/enveloping account for largest gas savings.  Increased attention to customer energy education may lead to greater and longer lasting energy savings.  Reducing application paperwork and allowing more self certification may increase enrollments.  Better preparation of customers for enrollment and assessment visits will reduce the number and overhead costs of program visits to an individual home.

Click to edit Master title style 10 Program Challenges  Striking the right balance between achieving cost- effective energy savings versus providing health, comfort, and safety benefits to participants  Fully leveraging and integrating the Energy Savings Assistance program, utility core energy efficiency programs, and other State, Federal and local programs.  Providing sound education to all participants on the benefits of energy efficiency that form long term conservation behaviors.

Click to edit Master title style 11 Ongoing Efforts: Increased Coordination with CSD  MOU executed between CPUC and Department of Community Services & Development (CSD) March 17, 2009 with the goal of increasing the number of low-income households in California treated under both programs through increased coordination between the agencies and decreased duplication.  Achieving the goals requires education, information sharing and collaboration between the administrators (CSD, IOUs) and regional/local providers of both programs.  Numerous all-party meetings have been held among these stakeholders.  SCE and PG&E have implemented pilots that successfully leverage both programs.  These efforts need to be expanded; still more remains to be done. Key next steps are:  Identify further opportunities for data sharing among other IOUs and corresponding local providers  Identify efficient methods for LIHEAP/ESAP program measures installation

Click to edit Master title style 12 Results of IOU Pilot Projects  SCE Database Sharing Pilot  SCE revised its database to allow Contractors to enter LIHEAP and ESAP (LIEE) treated home information into one database.  Database system expanded to search for previously-served LIHEAP-treated homes and services to avoid duplication  Results: More seamless referral process, challenges with executing a one stop shop database for leads and measures installed by each program, better cost- tracking.  PG&E Marketing, Education & Outreach and Assessment Pilot  The Sacramento Avenues project in 2010 led PG&E, Community Resource Project, Inc. (CRP), and SMUD to coordinate their low income activities.  Together the three informed, recruited and qualified low-income households to receive ESAP and LIHEAP services. All feasible gas and electric measures and services were provided through one of the Project team members and billed back to the appropriate funding source.  Result: Limited scale one-stop shop from outreach to installation to fully weatherize homes, with minimal disruption to the participating households.

Click to edit Master title style 13 SDG&E Energy Upgrade California Multi-Family Program  SDG&E will launch Multi-Family Whole Building Performance Assessment program (May 2011 through 2012)  Branded under Energy Upgrade California, and coordinated with the Energy Savings Assistance Program  Goal to treat up to 1,000 multi-family units, or MF complexes  Max budget of $1,000,000, or average $1,000/unit from mainstream EE funds, in addition to ESAP budget for eligible units, (additional ~$870/unit in the SDG&E service territory)  Energy savings average target of 20% from whole building  Will serve all income segments including low income, moderate income and market rate buildings  Leverages County of San Diego ARRA funds, SDG&E Energy Savings Assistance Program Funds, and Energy Upgrade California (CEC ARRA and utility EE) funds.

Click to edit Master title style 14 IOU Applications for ESAP Programs and Funding filed May 16, 2011 with CPUC  Treat 50% of the eligible population by the end of  Increase coordination efforts with CSD, IOUs, and local providers.  Incorporate Lessons learned from Pilots and Study results.  Increase focus on multifamily treatment, to overcome disproportionately small proportion of ESAP participation.  On March 22, 2011 Energy Division staff released Guiding Principles and background data to aid IOUs and stakeholders in development of potential multifamily proposals to be included in ESAP applications.  Principles include:  Reducing barriers to multifamily participation,  Fully leveraging and integrating the Energy Savings Assistance Program with utility core energy efficiency programs and other State, Federal and local programs to streamline and improve program delivery and achieve maximum energy efficiency savings, and  Promoting equity across the low-income housing sector.