1. California Utilities Diversity Council A collaboration between business, consumer, utility companies and the California Public Utilities Commission José L. Pérez, Chair, CUDC -- Latino Journal Cynthia Marshall, Co-Vice-Chair, CUDC -- SBC Nancy Zarenda, Co-Vice-Chair, CUDC -- Spanish Language Academy CPUC En Banc Hearing – October 25, 2005 – State Capitol – Sacramento, CA

2. California Utilities Diversity Council 20042004 –Created a website (www.cudc.biz) that has had over 42,000 visitors www.cudc.biz –Organized into five committees: GovernanceGovernance Procurement and bankingProcurement and banking PhilanthropyPhilanthropy Customer Service & MarketingCustomer Service & Marketing EmploymentEmployment 2004 –Met eight times –Adopted Charter Document –Each committee conducted research and reported out industry findings at the CPUC’s Oct. 18 meeting on diversity in Los Angeles –The CUDC produced an “Annual Report” for the CPUC in December –The report outlined the work done by the diversity council and its plans for 2005

3. California Utilities Diversity Council Established March 2004Established March 2004 Voluntary effort supported by:Voluntary effort supported by: –California Public Utilities Commission –SBC –Southern California Edison –San Diego Gas & Electric Company –Southern California Gas Company –Verizon –Pacific Gas & Electric Company –California Water Association California American Water CompanyCalifornia American Water Company San Jose Water CompanySan Jose Water Company Southern California Water CompanySouthern California Water Company Other participants include: –Spanish Language Academy –Communications Workers of America –California Black Chamber of Commerce –California Small Business Association –California Hispanic Chambers of Commerce –California American Indian Chamber of Commerce –Latino Journal –CAHACR –Greenlining Institute –Service Disabled Veterans –Others …

4. California Utilities Diversity Council 20052005 –Met eight times in various places throughout the state hosted by a utility company –Data gathering continued for all the committees –Each committee developed action items that could be delivered in 2005 –Committee Deliverables GOVERNANCE –Report on trends in the corporate boardroom –Utilities are commended for their appointment of African Americans –American Indians, Asians, Latinos and Women are least represented in the utility corporate boardroom –Asian and Latino numbers and percentages dropped over the last ten years –More community and corporate education is necessary on this issue –Frank Quevedo, VP for Equal Opportunity, Southern California Edison, chairs this committee

5. California Utilities Diversity Council PROCUREMENTPROCUREMENT –Focused on professional services including legal, accounting, advertising, information technology and banking. –Conducted a reception hosted by the five largest utility companies to explore ways to promote business and employment opportunities for diverse law firms and attorneys –Developed a database of diverse law firms in California –Joan Kerr, Director of Supplier Diversity for SBC, led this effort for the last several months CUSTOMER SERVICE & MAREKETING –Focused on multilingual and multicultural issues –Conducted an unprecedented survey of utility multi-lingual and diverse cultures with eight utility companies and the CPUC that provided responses –The CPUC, utility companies and audience will get some insight as to the survey findings today –Nancy Zarenda, an expert in language acquisition and director of the Spanish Language Academy, is chair of the committee

6. California Utility Diversity Council PHILANTHROPYPHILANTHROPY –Strengthened the committee by increasing the number of company representatives –Made a strategic recommendation to consider funding programs in support of the CUDC committees –Collaborated with the Employment committee to tackle workforce issues –Itzel Berrio, formerly with the Greenlining Institute, was highly effective in leading this committee. A new chair will soon be appointed EMPLOYMENT –Through data gathering, determined that few women and minorities are available for highly specialized jobs that require math, science and engineering –Collaborated with the Philanthropy committee to obtain funding for a grant to the UC Math, Engineering and Science Achievement (MESA) totaling $1.36 million. –Steve Leder, chair of this committee, who is with PG&E, played a key role in this effort

7. California Utilities Diversity Council California’s educational system is derailedCalifornia’s educational system is derailed –Latino and African Americans drop out of public schools at an alarming rate –In the LACUSD and SCUSD over 60% of Latinos drop out of school –This has a profound negative consequence on California’s short-term and long-term economic impact because future workers will not have the education necessary to compete against workers from other states and other countries –California’s business community needs to get engaged to solve the State’s education crises by developing long-term strategies to fix this problem –Strategic philanthropic investments into education initiatives is one key –Strategic alliances with groups such as MESA is very important –Education is an economic and work force imperative that the business community can no longer neglect

8. California Utilites Diversity Council Utility companies must make a long-term commitment to programs that improve the quality of education for all Californians. Utility companies must identify education oriented strategies to protect their future economic interestsUtility companies must identify education oriented strategies to protect their future economic interests On behalf of the CUDC we commend the CPUC and utility companies for all their support, assistance and cooperation to enhance diversity. We also commend the organizations who contribute to this effort by attending our meetings and contributing to the dialogueOn behalf of the CUDC we commend the CPUC and utility companies for all their support, assistance and cooperation to enhance diversity. We also commend the organizations who contribute to this effort by attending our meetings and contributing to the dialogue CUDC MESA $1.36 million grant presentationCUDC MESA $1.36 million grant presentation