California Alternate Rates for Energy (CARE) – Capitation Program Pacific Gas and Electric Company Southern California Gas Company Southern California Edison Company San Diego Gas & Electric Company January 21, 2009

2 History of CARE Capitation Fee D – Ordered IOUs to work with 3 rd parties to ensure they are “….adequately compensated for the time they spend helping low- income clients fill out CARE applications in conjunction with their other daily activities” – OP 6  “As described in this decision, utilities are authorized to negotiate capitation fees, up to $12 per eligible enrollment in the California Alternate Rates for Energy (CARE) program.” – Allowed up to a $12 capitation fee per successful enrollment of eligible customers based on an assessment of the agencies’ incremental costs of adding the CARE enrollment activity to their day-to-day workload D – Approved request by IOUs to increase fees up to $15

3 Number of agencies receiving payment for processing applications PG&E: 104 SoCalGas: 28 SCE: 148 SDG&E: 58

4 Breakdown of the agencies and reimbursement levels Capitation Fee Amount No. of Agencies (PG&E) No. of Agencies (SoCalGas) No. of Agencies (SCE) No. of Agencies (SDG&E) $ $ $ $ $ $ $ $ $ Total

5 Details on the negotiation process/ Criteria used to determine fee PG&E: Does not negotiate capitation payments with COCs. All COCs receive a $15 capitation payment. SoCalGas: Agency completes Questionnaire and indicates incremental cost per successful enrollment. If the amount is over $15, then the amount is negotiated. SCE: Agencies are advised of how the program works and the fee structure with a maximum payment of $15. Based on this information agencies submit and SCE accepts all proposals with a requested fee of $15 or below. SDG&E: Agencies that proactively seek enrollments beyond "walk- in" clients incur greater expenses. To offset those expenses, SDG&E will negotiate a higher fee. Also, higher fees are often used for incentivizing new agencies to seek more enrollments on a proactive basis.

6 Ways to employ organizations to do broader outreach PG&E: Kick-off meeting, quarterly regional meetings, on-site visits, training sessions, end-of-year recognition event, monthly electronic newsletter, toll-free phone and fax line, collateral (resource guides, coded applications, brochure holders, posters, poster stands, point-of- service boxes, event give-aways, clipboards, notebooks, polybags, t- shirts, buttons), sponsored COC outreach events, monthly progress reports, mid-year incentives, end-of-year survey. SoCalGas: Sponsorship at outreach events, event give-always, collateral materials in various languages and for special needs customers, brochure holders, posters, etc., monthly communications with agencies, training packages to supplement formal training.

7 Ways to employ organizations to do broader outreach (continued) SCE: Co-Sponsorship at outreach events, event promotional items, collateral materials in various languages and for special needs customers, brochure holders, event posters, quarterly trainings, newsletter, sharing best practices, online applications, dedicated CARE Capitation website, etc. SDG&E: On-site visits on a weekly/bi-weekly basis to cross-promote LIEE and all other customer assistance programs, incentives in the form of Spring and Winter "contests" between the agencies, prizes for intra-agency contests, 4-hour training classes at no cost to our agencies on topics such as "How to Deal with Difficult People" and "How to be a Good Team Member,” twice-a-year refresher training in the form of games with prizes, staff Ltg Turn In and community events with agency volunteers, posters, buttons (“Ask me about a 20% discount”), & end-of-the-year appreciation luncheon.