1. Click to edit Master title style 1 Energy Savings Assistance Program And California Alternate Rates for Energy (CARE) Program 2012-2014 Proposed Decision Overview Goals, Budget & Changes July 10, 2012

2. Click to edit Master title style 2 CARE & ESA Program Goals & Objectives  CARE Program:  Provide at least a 20% discount on low income customers utility bills.  Achieve higher penetration rates over time without substantially increasing the CARE outreach budget.  Increase enrollment efficiencies by streamlining the screening, eligibility, and retention of participants in CARE.  ESA Program:  Serve by 2020, 100% of all eligible and willing customers with cost-effective low income energy efficiency measures.  Serve as a resource program garnering significant energy savings in California while improving quality of life.  Provide installation of weatherization, energy efficiency measures and minor home repairs to participants at no cost.  Provide energy education to help customers reduce energy consumption, resulting in bill savings.  Long Term Goals  Improve program delivery;  Promote the growth of trained low income workforce;  Increase collaboration and leveraging with other low income programs and services;  Increase participation in the multifamily sector;  Provide low income customers with measures that result in the most savings while being cost effective; and  Ensure only those qualified are receiving the benefits of the programs.

3. Click to edit Master title style 3 CARE Program PD Adopted Budget for 2012-2014 201220132014Cycle Total PG&E$672,301,000$644,316,000$617,600,000$1,934,217,000 SCE $335,551,000$382,365,000$422,422,000 $1,140,338,000 SDG&E $77,589,684$86,588,094$87,588,301 $251,766,080 SoCalGas $136,764,829$137,639,959$139,006,654 $413,411,441 Total$1,222,206,513$1,250,909,053$1,266,616,955$3,739,732,521 201220132014Cycle Total PG&E$675,724,512$647,486,512$620,756,512$1,943,967,537 SCE$342,742,814$389,317,814$429,373,814$1,161,434,442 SDG&E$79,093,723$87,969,690$89,007,449$256,070,862 SoCalGas$145,684,041$146,018,283$147,508,040$439,210,364 Total$1,243,245,090$1,270,792,299$1,286,645,816$3,800,683,205 IOU Proposed Budgets 2012-2014 CPUC Proposed Adopted Budget Summary 2012-2014 CARE

4. Click to edit Master title style 4 CARE Program Proposed Decision Adopted Changes & Highlights for 2012-2014 IOUs’ proposed 2012-2014 CARE program budgets approved, with some modifications, including:  Focuses on delivering the program to income eligible customers, but eliminates previous emphasis on a 90% penetration target.  Retains current “Categorical Eligibility” list to facilitate CARE Program enrollment, but implements stricter recertification and post enrollment verification practices.  Adopts PG&E’s proposal to address High Usage CARE customers, and mandates that policy is implemented statewide, including:  CARE electric customers with usage above 600% of baseline have 90 days to drop usage or be removed and barred from the program for 2 years.  CARE electric customers with usage between 400%-600% of baseline must undergo PEV and apply for ESA  Increases enrollment capitation fees for Community Based Organizations from “up to $15” to “up to $20”  Continues outreach efforts with CBOs and local governments.

5. Click to edit Master title style 5 ESA Program PD Adopted Budget for 2012-2014 IOU Proposed Budgets 2012-2014 Utility ESAP 201220132014Cycle Total PG&E$137,904,000$167,525,000$173,422,000$478,851,000 SCE$53,289,000$59,859,000$58,235,000$171,383,000 SDG&E$22,044,929$22,462,163$22,832,030$67,339,122 SoCalGas$99,909,056$82,121,475$84,178,885$266,209,415 Total$313,146,984$331,967,638$338,667,915$983,782,537 CPUC Proposed Adopted Budget Summary 2012-2014 Utility ESAP 201220132014Cycle Total PG&E$132,321,707$160,743,662$166,401,955$459,467,324 SCE$68,205,427$67,866,929$67,965,700$204,038,057 SDG&E$21,587,407$22,011,237$22,386,950$65,985,594 SoCalGas$104,435,701$109,691,308$113,143,742$327,270,751 Total$326,550,243$360,313,136$369,898,347$1,056,761,726

6. Click to edit Master title style 6 ESA Program PD Recommended Homes Treated Goals for 2012-2014 Utility Proposed Number of Homes to be Treated 201220132014Total Cycle PG&E110,000132,500 375,000 SCE68,20077,00074,800220,000 SDG&E20,000 60,000 SoCalGas129,106100,249 329,604 Total327,306329,749327,549984,604 Utility CPUC Proposed Adopted Number of Homes to be Treated 201220132014Total Cycle PG&E119,940 359,820 SCE87,389 262,166 SDG&E20,316 60,948 SoCalGas136,091 408,272 Total363,735 1,091,206

7. Click to edit Master title style 7 ESA Program Proposed Decision Adopted Changes & Highlights for 2012-2014  Refrigerator replacements criteria approved for pre-1999 units  3 Measure Minimum rule remains in place, and IOUs disallowed from providing education and CFLs alone  Cooling measures approved only in extreme climate zones (SCE CZ 14-15)  Adds attic insulation, air and envelope sealing, water conservation measures, furnace and water heater repair and replacement (all IOUs) and duct test and seal back into the program  Approves all NEW proposed measures  Maintains current program delivery model and contractor selection model  Coordinates ME&O with other demand side programs; Compliance with recent EE guidance decision to incorporate low income program ME&O issues into a stand-alone ME&O application  Approves proposed Energy Education Study and Impact Evaluation  Establishes separate working groups to address ESA Program Integration, Workforce Education and Training, Mid-cycle Program Changes, Cost Effectiveness  Implements nine immediate Multifamily Segment Strategies and directs a consultant led Multifamily working group to further study and develop a advance a longer term and comprehensive multifamily segment strategy.  Establishes an effective leveraging plan between ESA Program and CSD; LIOB subcommittee to carry out MOU objectives.