1. California Low Income Assistance Programs Overview Prepared for the Low Income Oversight Board Meeting June 7, 2006

2. 2 Service Area  The service area covers 136,000 square miles in a portion of six states including California, Idaho, Oregon, Utah, Washington and Wyoming serving 1.5 million customers.  Pacific Power serves approx. 35,000 residential customers in our California service area.  It is estimated that 46% of Pacific Power’s California residential customers have household incomes that qualify for low income programs at 175% of FPG.  Our average residential price of 8.31 cents/kWh is lower than the majority of California electric utilities.

3. 3 California Alternate Rates for Energy (CARE) Program  Households with incomes at or below 175% of Federal Poverty Guidelines (FPG) qualify.  Participants receive a 20% discount.  Internal self-certification process in place in late 2005.  Contract with California Department of Community Services and Development (CSD) for certification & recertification services ended in January 2006.  A re-certification process is being developed.

4. 4 CARE Participation 2001 - 2006 2006 data includes participation as of 4/30/06.

5. 5 CARE Promotion  Promotion activities increased greatly in 2004 and 2005, and are proposed to remain at these levels through 2008.  Activities include radio and newspaper ads, direct mail, bill inserts, articles in customer newsletters, bill messages, counter displays at various agencies, news releases and program information printed on bags distributed through pharmacies and food banks.  Increased promotion and the implementation of self certification brought participation up to 8,028 households as of 4/30/06, an increase of 75% since the self certification process began.

6. 6 Low Income Energy Efficiency (LIEE) Program  Households with incomes at or below 175% of Federal Poverty Guidelines (FPG) qualify.  Pacific Power partners with two local non-profit agencies to provide these services. Propose adding a third agency.  Over 1,800 homes completed since program began in 1986.  Partnering agencies provide outreach/enrollment services.

7. 7 Budgets CARE LIEE 2005 & 2006 Authorized $ 778,046$117,000 2007 & 2008 Proposed $1,051,505$168,000

8. 8 Additional Low Income Projects  Project HELP provides energy assistance funds through donations. Pacific Power inserts donation envelopes in November and February bills. The Company has matched all donations since November 2000. A commitment made through the recent Mid- American Energy Holdings Company (MEHC) transaction ensures that annual contributions will total $30,000. The program is administered by The Salvation Army.  An additional MEHC commitment will fund a study of low-income customer arrearages.

9. 9 Positives & Negatives  We have a positive working relationship with local non-profit agencies that provide energy assistance and weatherization services, which is helpful to Pacific Power and our customers.  Self-certification has increased CARE participation greatly!  It is difficult to obtain participants due to our large rural service area with a large portion of the population qualifying.  Non-CARE customers are responsible for costs to cover a large portion of customers that qualify.