1. Workshop #2 (Review of ESAP) ESAP Energy Savings – Discussion of Barriers October 19, 2011 CPUC Alex Jackson, NRDC 1

2. Outline Policy guidance Measure eligibility Program delivery New customers Participating customers Other 2 ESAP Energy Savings – Potential Barriers

3. Policy guidance Lack of specific energy savings targets/guidance for IOUs Compare to ESAP’s programmatic initiative Need to reconcile outreach goals with “key policy objective” of providing reliable energy resource Limited funding Growing number of eligible customers ESAP Energy Savings – Potential Barriers 3

4. Measure Eligibility 3 measure minimum/minimum energy savings Climate zone restrictions Measure availability and level of upgrade (e.g. attic insulation) Cost effectiveness threshold (workshop #3) Process for introducing new ESAP measures found to be cost-effective (workshop #3) Multifamily eligibility (workshop #4) Other ESAP Energy Savings – Potential Barriers 4

5. Program Delivery: New Customers (workshop #6) Potential barriers Awareness Receptivity to program Property owner waivers Income documentation Language barriers Past participation Funding restrictions Considerations Increasingly hard to enroll customers (e.g., SDG&E and SCG propose to offer $50 grocery store gift cards to customers who keep their appointments) ESAP Energy Savings – Potential Barriers 5

6. Program Delivery: New Customers Considerations (cont.) Limited value proposition for many customers Documentation barriers persist for customers in rental and multifamily housing 2007 KEMA Needs Assessment findings: Fraction of eligible participants aware of ESAP (7%) or program similar to ESAP (20%) Roughly 10% of eligible population uninterested in participating in ESAP English is not the primary language for 40% of low income households in California 6 ESAP Energy Savings – Potential Barriers

7. Program Delivery: Participating Customers Potential Barriers Energy education Attitude towards energy use Behavioral factors Funding restrictions Considerations High Usage Needs Assessment (SCE): unusually high energy usage in LI households more function of behavioral/attitude-based factors than reliance on inefficient appliances 2009 Impact Evaluation: personal, customer-specific energy education focused on behavioral change a significant energy savings opportunity But current education efforts having limited effect on participants No pilots proposed for 2012-2014 ESAP program ESAP Energy Savings – Potential Barriers 7

8. Discussion Questions Should the Commission provide energy savings targets or other policy guidance to the Utilities in furtherance of energy savings? Should the Commission move away from an “all feasible measures” approach? ESAP Energy Savings – Potential Barriers 8