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Offering Low Income Programs in California:Meeting the Demographic Challenge

Mary O’Drain, Frances Thompson, Linda FontesPacific Gas & Electric Company

National Low Income Energy ConferenceJune 14, 2006Washington, D.C.

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PG&E Facts Pacific Gas and Electric Company provides natural gas

and electric service to approximately 15 million people throughout a 70,000-square-mile service area in northern and central California.  Service area stretches from Eureka in the north to Bakersfield in

the south, and from the Pacific Ocean in the west to the Sierra Nevada in the east

More than 139,000 circuit miles of electric lines More than 45,800 miles of natural gas pipelines 5 million electric customer accounts 4.1 million gas customer accounts Our customers include 20,833 schools, 3,239 hospitals, 20,698

high-tech companies and 768 military facilities 20,300 employees

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PG&E Service Area

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Programs & Services Available to PG&E’s Low Income Customers Rates

CARE FERA Medical Baseline

Rate Assistance REACH HEAP

Low Income Energy Efficiency Energy Partners

Billing Services Third-Party Notification Balanced Payment Plan Automatic Payment Service

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PG&E Rates CARE (California Alternate Rates for Energy)

PG&E’s low income rate discount: Offers a 20% discount on monthly gas and electric charges for low income households at 200% of Federal Poverty Income Guidelines.

FERA (Family Electric Rate Assistance) For large households of 3 or more persons with low to middle-

incomes. Charges “101-130% of baseline” rates for “131-200% of baseline” usage.

Medical Baseline Provides additional quantities of energy at baseline price to

residential customers dependent on life-support equipment and/or with special heating or cooling needs due to medical conditions.

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Rate Assistance Programs for PG&E Low Income Customers REACH (Relief for Energy Assistance through

Community Help) One-time energy–assistance program sponsored by

PG&E and administered by the Salvation Army. HEAP (Home Energy Assistance Program)

Federally-funded energy subsidy administered by the State through local agencies and CBOs. Provides qualified low income households with assistance on energy bills.

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PG&E Billing Services

Third-Party Notification Customers may name a friend or relative to receive

duplicate copies of past-due notices.

Balanced Payment Plan Monthly payments can be evened out to allow

customers to budget energy costs and eliminate big swings in their payments.

Automatic Payment Service Payments to PG&E are automatically deducted from

customer’s bank account.

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Low Income Energy Management at PG&E: CARE and Energy Partners

Statewide Programs Regulated by the CPUC Funded through Public Purpose Charges Same Income Guidelines

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CARE CARE provides a 20% rate discount to

qualifying low income customers. 200% Federal Poverty Level Guidelines (with

income adjustments for household size) Customers self-certify, with random post verification

1,110,013 PG&E customers are currently enrolled in CARE 1,536,146 PG&E customers are currently estimated to

be CARE-eligible 73% penetration rate

$7.457 million 2006 CARE administration budget

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CARE

PG&E goal to enroll 100% of eligible customers who want to receive rate discount on CARE.CARE penetration rate increased from 53% in

2001 to 73% today$4.9 million outreach budget

Funded through a public purpose charge on non-CARE customer bills

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PG&E’s Low Income Energy Efficiency Program

PG&E’s “Energy Partners” Program helps low income customers reduce their energy consumption and costs while increasing their comfort and safety. $68.761 Million 2006 Budget ($56.530 M authorized

annual budget + $12.231 M unspent carryover) 57,500 homes treated in 2005

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PG&E’s Low Income Energy Efficiency Program Serves customers at or below 200% of federal

poverty guidelines Serves single-family, multi-family and mobile

homes Owners and renters

LIEE participants receive all feasible measures for which they qualify

Has been operated since 1983 Funded through a public purpose charge on

customer utility bills

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Energy Partners MeasuresQualifying Energy Partners participants receive free energy services and measures, including: energy education, weatherization and energy efficient appliances.

Attic Insulation Low Flow Showerheads Water Heater Blankets Door Weatherstripping Attic Access Weatherstripping Caulking Outlet Gaskets Faucet Aerators Water Heater Pipe Wrap Evaporative Coolers Evaporative Cooler Covers

Refrigerator Replacement Hard-Wired Compact

Fluorescent Porch Lights Compact Fluorescent Lamps Window/Wall Air Conditioners Central A/C Minor Home Repairs Furnace Repair and

Replacement Duct Testing and Sealing Energy Education

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Who Are PG&E’s Low Income Customers? Beginning in 2001, PG&E clearly defined its CARE-

eligible households so that it could develop a targeted outreach and education plan.

PG&E learned that CARE-eligible customers fall into the following demographic groups: 97% of all eligible customers speak one of five languages at

home: English, Spanish, Cantonese, Mandarin or Vietnamese. Forty-three percent are Spanish-dominant.

Low income households are predominantly ethnic minorities. These include a mix of seniors, rural residents, agricultural farm

workers and residents of sub-metered tenant facilities While the male head of household is often the customer of

record, the female head of household usually makes energy and spending decisions and takes action on important issues.

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Low Income Outreach Efforts PG&E launched an integrated communications

and outreach effort for CARE in 2001 Marketing

Including: multi-lingual educational materials, enrollment events and local media outreach

Focus on previously underrepresented target areas within the PG&E service area, identified by ZIP code.

Capitation Fees Supporting the participation of grassroots organizations as

Community Outreach Contractors (COCs). Grassroots Paid-Media Placements

Targeting low and fixed income households. Local and In-language

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2005 Campaign Highlights

Activities included Community outreachGrassroots mediaMultilingual Direct mailPartnerships with government agencies,

COCs and faith-based organizations

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Hispanic Program PG&E’s largest low income customer group

Media relations key to successful outreach CARE was supported and mentioned by Hispanic television

stations, which are heavily watched by the target audiences. Community outreach Participation in community events English/Spanish CARE direct mail piece developed English/Spanish door hanger distributed in the top 10

target counties Public service announcements in Spanish for local

radio and television stations promoted special CARE events, bill inserts and CARE income guideline changes

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African American Program African Americans are more likely to be reached

through media, restaurants, stores, recreational centers and places of worship that specifically serve them. Network through churches

Enlist pastors and church organizations Booths at Community Events Targeted media

News releases to community radio stations and newspapers Radio Testimonials Local TV

For example: A gospel show dedicated to promoting the CARE program aired among African American viewers in the Bay Area.

Door hanger applications Targeted zip codes

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Asian American Program The CA Asian American community is extremely

diverse, with many distinct groups. Includes Chinese, Vietnamese, Hmong, Korean,

Cambodian, Laoation, Mien, Filipino Primary and secondary target markets identified

based on population size, income levels and in-language preference.

In-Language prompts developed for call-in lines Collateral materials distributed through COCs Partnerships with local agencies In-language Direct Mail Booths at community events Targeted Media

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Successful Outreach Methods

Bill Inserts Business Partners Community Outreach

Partners (COCs) Direct Mail PG&E Employee

Involvement Enrollment Events Kiosk Leveraging Endorsements

Media Relations Multicultural Collatoral

Materials Multilingual Call-in Line Paid Media Partnerships Rural Outreach Senior & Disabled

Outreach Web Phone Enrollment

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Questions?

Mary O’Drain: Low Income Programs Policy and Regulatory MJOb@pge.com

Frances Thompson: Energy Partners Program Manager FLT2@pge.com

Linda Fontes: CARE Program Manager LCF2@pge.com