PG&E Winter Bill Programs and Plans Low Income Oversight Board Meeting September 17, 2008 Sacramento, CA

2 Treatment of Delinquency Per tariff, residential customers are considered past due if payment is not received by PG&E within 19 calendar days after the bill is mailed to the customer Treatment of delinquent customers day notice hour notice 3. Outbound call 4. Order issued for shut-off of service Additional sensitivity in treatment of medical / life support customers after the outbound call: 3a. Certified Letter 3b. Live call from PG&E Consumer Affairs Extreme Weather Policy PG&E will continue to comply with its extreme weather policy of either suspending shut-offs for non-payment or visiting each premises prior to shut-off when the temperature is 96 degrees – Customers will only be shut off during extreme weather periods if the service representative in the field observes the conditions at the home and determines they are safe for shut off

3 PG&E’s Winter Bill Programs Low Income Energy Efficiency (LIEE) Helps low income customers reduce their energy consumption and costs while increasing their comfort and safety by providing free energy services and measures California Alternate Rates for Energy (CARE) Program Provides a discount on the monthly energy bill for low- and fixed-income households Qualification is based on annual income and household size Average annual discount of over $500 per income-qualified household Family Electric Rate Assistance (FERA) Program Provides savings on the electric bill for large households of three or more persons with low- to middle-income Qualification is based on annual income and household size Average annual discount of over $245 per income-qualified household Medical Baseline Allowance Provides additional quantities of energy at the lowest (baseline) price for residential customers who are dependent on life-support equipment or have special heating and cooling needs due to certain medical conditions Third Party Notification PG&E will notify any other person designated as a third party when a late notice is sent Balanced Payment Program Eliminates big swings in home or business payments by averaging energy costs over the year Payment Arrangements Makes paying a PG&E bill more convenient during times of financial hardships

4 PG&E’s Winter Bill Programs REACH Plus Program PG&E has proposed in the LIEE proceeding to provide $30 million of funding for the Reach Plus Program ($10 million per year for ) Provides assistance to low income customers experiencing a crisis condition that prevents them from paying their gas and electric bill Administered by the Salvation Army Customers are eligible to receive up to $300 every 18 months – Must have an income level less than 200% of the Federal Poverty Guidelines – Must also have documentation of a financial emergency – Thresholds subject to change depending on available funding Decision in LIEE proceeding is scheduled to be issued in mid-October Targeted start date: January 1, 2009 Relief for Energy Assistance through Community Help (REACH) A one-time energy-assistance program sponsored by PG&E Administered through the Salvation Army Provides assistance of up to $300 to customers experiencing a crisis condition that prevents them from paying their gas and electric bill Recipients can receive REACH assistance only once within an 18-month period – exceptions can be made for seniors, the physically challenged and the terminally ill

5 PG&E’s Winter Bill Programs 10/20 Plus Gas Program – History Began in Winter Since then, has been enhanced to include: (1) large commercial customers; (2) normalizing for weather; and (3) “one for one” credit for usage reductions less than 10% In 2008 Program, over 1.6 million PG&E residential customers earned a credit, with average residential customer earning a credit of $18.26 PG&E provides tips on energy saving steps they can take via mailings, radio ads, and on the PG&E website Over three in four customers agreed in both 2007 and 2008 post-Program surveys that they learned new energy-efficient behaviors that they could continue each winter through program promotional materials Gas usage declined by over 5% during PG&E’s 10/20 and 10/20 Plus Program periods 10/20 Plus Gas Program – 2009 Proposal This year’s proposal will again permit all customers reducing gas energy by under 10% to receive a savings on their January and February charges equal to the percentage in the reduction of gas us Customers that reduce gas usage by 10% or more will receive a 20% reduction in charges for this same time frame Advice letter filed on August 22 for approval of this year’s program. Targeted start date: January 1, 2009