Energy Savings Assistance and California Alternate Rates for Energy Programs

Marketing, Education & Outreach Plans

SOUTHERN CALIFORNIA

EDISON

Table of Contents

I. EXECUTIVE SUMMARY ..............................................................................................1

II. PROGRAM BACKGROUND ........................................................................................2

III. LOW INCOME MARKET SITUATION AND CUSTOMER

INSIGHTS ...............................................................................................................3

A. Background ..................................................................................................3

B. Low Income Customer Profile .....................................................................4

C. Barriers to Participation in Low Income Programs .....................................5

D. Identifying Areas of Opportunity.................................................................8

1. High Poverty ....................................................................................8

2. Rural .................................................................................................9

3. Renters ...........................................................................................10

4. Multifamily ....................................................................................11

IV. OVERALL MARKETING PLAN ..............................................................................11

A. Marketing Objectives .................................................................................11

1. Goals ..............................................................................................12

2. Overarching Strategic Approach ....................................................12

B. Segmentation Approach .............................................................................13

C. Target Audiences .......................................................................................13

D. Messaging Strategy ....................................................................................14

E. Tactical Approach ......................................................................................15

1. Tactical Approach for General Audiences .....................................15

2. Tactical Approach for Reaching Targeted Populations .................20

3. Tactics for Additional Targeted Communities ..............................23

V. INTEGRATION ....................................................................................................25

A. Coordination with Residential Rate Reform ..............................................26

B. Coordination with AB793 ..........................................................................26

C. Coordination with Statewide ME&O.........................................................27

D. Coordination with Energy Efficiency Business Plan .................................28

E. MEASUREMENT AND METRICS .........................................................29

F. BUDGET ...................................................................................................31

VI. APPENDIX ............................................................................................................33

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I. EXECUTIVE SUMMARY

In accordance with Decision (D.)16-11-022, Southern California Edison (SCE) submits

this Marketing, Education, and Outreach (ME&O) plan for the California Alternate Rates for

Energy (CARE) and Energy Savings Assistance (ESA) Program for years 2017 – 2020. This

ME&O plan provides a situational analysis of SCE’s low income audience, including

customer insights and barriers to participation, as well as a detailed marketing plan outlining

objectives, strategies, tactics, metrics, and budgets to meet enrollment goals. Additional

discussion is provided to focus on targeted outreach activities for “hard to reach” audiences,

as identified in D. 16-11-022. Finally, the plan describes how low income marketing

activities provided in the plan will be integrated with key regulatory proceedings around

residential rate reform, statewide marketing, and energy efficiency.

The vision of SCE’s ME&O plan is to continue with its successful marketing approaches

over the next program cycle, as evidenced by the penetration and participation levels the

CARE and ESA programs have achieved to date. It is recognized that in areas across the

territory where penetration and participation levels are lower than average, additional focus

should be applied. As such, in these hard to reach areas, SCE’s plan provides additional

emphasis through more targeted and local marketing tactics. As strategies are executed in

targeted audiences, SCE will continually monitor penetration rates and customer feedback in

these areas. As growth and success are observed, strategies may shift over time with less

focus needed in particular segments, or as new areas arise needing additional focus, more

attention may be paid.

This ME&O plan was developed to be flexible and to respond to changing market

conditions over the course of the next three years. The plan may be adjusted and subject to

change in the event of internal and/or external unforeseen factors. Ultimately, the plan is

intended to provide education and outreach in order to meet program goals and objectives.

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II. PROGRAM BACKGROUND

On November 10, 2016, the Commission approved SCE’s Low Income Application

(A.)14-11-007 et al, which sets forth the program plans and budgets for the ESA and CARE

Programs for Program Years 2017-2020.1

Specifically, D.16-11-022 directs SCE to submit revised, detailed Marketing, Education

& Outreach (ME&O) plans, incorporating input gathered from a Low Income specific ME&O

workshop. These plans should include a clear description of how IOUs will leverage and

coordinate with ME&O activities currently under consideration in the mainstream Energy

Efficiency Proceeding (Rulemaking (R.) 13-11-005) and in the Residential Rate Reform

Proceeding (R.12-06-013)2.

On March 8, 2017, pursuant to Rule 16.6 of the California Public Utilities

Commission's ("Commission") Rules of Practice and Procedure, Southern California Edison

Company, Pacific Gas and Electric Company, Southern California Gas Company, and San

Diego Gas & Electric Company (collectively, the Joint Investor-Owned Utilities ("Joint IOUs"))

respectfully requested an extension of time to comply with directives in Decision (D.) 16-11-

022 to file Energy Savings Assistance (ESA) and California Alternate Rates for Energy

(CARE) programs Marketing Education & Outreach (ME&O) plans.

On March 30, 2017, Executive Director Sullivan responded to the Joint IOUs'

extension request. The response from the Executive Director required the Joint IOUs to hold

the Low Income specific ME&O workshop within 30 days from the final Statewide ME&O

workshop (which was held on March 13, 2017), or by April 13, 2017. Additionally, the

detailed ESA and CARE ME&O plans should then be filed within 60 days of that workshop,

or by June 13, 2017.

To allow time to solicit and incorporate stakeholder input and provide adequate notice

of the workshop, on April 10, 2017, the Joint IOUs submitted a second request to

Executive Director Sullivan requesting an extension of time to hold the Low Income

1 D. 16-11-022 issued on November 21, 2016, p.6. 2 D. 16-11-022, Ordering Paragraph (OP) 36, pp. 457-458.

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specific ME&O workshop no later than June 8, 2017, with the ESA and CARE ME&O

plans being filed on or before August 8, 2017.

On April 19, 2017, Executive Director Sullivan approved the Joint IOUs request to

hold the low income-specific ME&O workshop no later than June 8, 2017, with the ESA and

CARE ME&O plans being filed on or before August 8, 2017.

The Low Income Workshop was held on May 23, 2017; therefore in compliance with

Executive Director Sullivan’s extension approval, attached is SCE’s ESA and CARE ME&O

Plans through 2020.

III. LOW INCOME MARKET SITUATION AND CUSTOMER

INSIGHTS

A. Background

SCE is one of the nation’s largest electric utilities, serving a population of nearly 15

million customers in a 50,000 square mile service area within Central, Coastal, and Southern

California. The residential market represents 14 million people, or 6 million households, across

4.3 million accounts. Across the SCE territory, an estimated 1.5 million customers have been

identified as income-qualified using the monthly SCE Low Income Assistance Programs

Monthly Report as of May 31, 2017, and represents just over one-third (35%) of SCE’s 4.3

million residential customer population

SCE administers several energy assistance programs to low income customers, however

the most well-known are California Alternate Rates for Energy (CARE), Family Electric Rate

Assistance (FERA), and Energy Savings Assistance (ESA) Program. The IOUs are responsible

for executing strategies to cost-effectively identify, target, and enroll those who are

CARE/FERA and ESA Program eligible. The IOUs must balance the need to serve the

maximum number of eligible households with the need to ensure that those enrolled in the

program are truly eligible.

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CARE is a low income energy rate assistance program instituted in 1989, providing a

discount on energy rates to low income households with incomes at or below 200% of the

Federal Poverty Guideline (FPG). FERA is provided for households with at least three members

with a combined income immediately above the CARE limit up to 250% FPG. FERA is

marketed alongside CARE; for purposes of this marketing plan, any references or tactics relevant

to the CARE Program apply to FERA as well.

ESA, originally conceived in the early 1980s, provides no-cost home weatherization

services and energy efficiency measures to help low income households: (1) conserve energy; (2)

reduce energy costs; and (3) improve health, comfort and safety. The program also provides

information and education to promote energy efficient practices in low income communities.

Participation in income-qualified programs is provided below, from the 2017 Annual

Report for 2016 Low Income Programs:

Program 2016 Participation 2016 Penetration

CARE 1,235,755 customers 81.3%

FERA 19,102 8.7%

For ESA, at year end, 41,070 homes had been treated, representing 47% of the 2016

homes treated goal.

B. Low Income Customer Profile

A snapshot of customers who have participated in low income programs, compared to

customers that have not participated, shows that they:

Prefer Spanish or both English and Spanish as their primary language

Are more ethnically diverse, skewing more towards Hispanics, Asians, and African-

Americans

Have completed high school, but less have completed college or graduate school

Rent either multifamily or single family homes

Live in more densely populated areas

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Have slightly longer residency in their homes

Are more likely to have a medical allocation (Medical Baseline) suggesting the presence

of a disabled household member

Live in warmer climate zones

Regarding billing and payment behaviors, customers who participate in low income

programs are more likely to exhibit:

Higher levels of overdue payments in last 12 months

Higher disconnection rates

Preference for paper bill, with less participation in online billing

Lower online, checkfree, and direct payment participation

Lower participation in My Account

Lower interest in providing an email address

Higher participation in Budget Assistant, indicating an interest in managing energy bills

C. Barriers to Participation in Low Income Programs

Awareness of the ESA Program is fairly high among low income customers. According

to the 2013 Low Income Needs Assessment (LINA), ESA awareness among low income

households is high at 68%. Less current research exists on the awareness of CARE. According to

SCE’s 2011 Program & Services Tracking Study of residential customers, aided awareness of the

CARE Program was 63%.

Even with high awareness of the programs, SCE recognizes there are barriers that prevent

qualified customers from participating in CARE and ESA. Based on findings from the 2013 and

2016 LINA, ESA Program Multi-Family Segment Study, 2011 LIEE Household Segmentation

Research, SB350 Low Income Barriers Study and others, SCE has identified the following

barriers to participation for both programs:

Language – As previously noted, participants in CARE and ESA are more likely to

be Spanish-speaking or have a preference for English-Spanish communications.

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Further, there is a need for additional language support, as many customers within the

region also speak Asian languages, including Chinese, Korean, Tagalog, and

Cambodian, among others. These language differences can hinder participation and

interest.

Fear of providing sensitive personal information – Eligible customers may be

hindered in their participation due to anxiety or concern over sharing personal income

information with companies, completing forms incorrectly, or difficulty in calculating

household incomes. For undocumented immigrants, the concerns may be more

elevated, with a fear of providing information that might expose their immigration

status.

Feel it’s not worth the effort – Some customers may feel the time to gather income

documentation, or to schedule multiple in-home visits, may, in the end, not be worth

the services being offered.

Access to internet – According to the 2016 LINA, older and disabled customers

access the internet less frequently, making communication with these segments

through email or digital channels more difficult. Further, as seen in the profile of

SCE low income customers, there is a tendency for less participation in online billing

or payment or in using My Account.

Geographic location – Some customers may be located in areas of less dense

population, or away from larger metropolitan areas, making access to services and

contractors a potential barrier.

The following barriers are specific to ESA:

No perceived need – Some customers may perceive that they have no need for ESA,

largely due to already having alternative solutions in place or that their home is

already energy-efficient.

Skepticism – A concern can exist that the offer is too good to be true, or even if it is,

then the quality of the work and appliances must not be of value.

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Trust – Seniors and disabled customers, in particular, may have concerns with

contractors and allowing them into their homes for assessments and installation of

new measures.

Several ESA barriers are applicable specifically to renters:

Eligibility for program– Renters may not realize the program is not limited

to homeowners, and that they are also eligible to participate.

Obtaining landlord permission – Renters may also be hindered in their

participation in the program because they often must first obtain permission

from their landlord.

Don’t want to change something they don’t own – Given the transient

nature of the tenant, some may be hesitant to replace appliances or fixtures

that they don’t own, or may feel it’s their landlord’s responsibility to do so.

Fear the landlord might raise rent if home is improved – There can also be

a concern that once efficiency improvements are made to a property, this

could justify rate increases to rent.

Multifamily residents share many of the same barriers as renters. A recent

American Council for an Energy Efficient Economy report indicated the following

are key barriers to participation for multifamily customers:

Impact on rental income — Property owners typically discourage projects

that disrupt occupancy and rental income.

Strategic investment versus replacement at burn-out — the latter is the

more typical business investment policy.

Lack of knowledge and low energy efficiency priority — Energy efficiency

is a relatively low priority for multifamily building owners who, like all

businesses, have many demands on their resources.

Energy efficiency benefits may be difficult to observe — prior to investing,

it is hard for building owners to predict the full return on energy efficiency

investments.

Split incentives — Building owners are responsible for investing in energy

efficiency improvements, while tenants reap the benefits via lower energy

bills.

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Hassle of dealing with multiple contractors and site visits — Tenant

disruptions are usually discouraged by owners.

Time burden for tenants/owners — Complicated program qualification

and energy efficiency upgrade process can be burdensome for both tenants

and property owners.

The 2016 LINA study reports that the unmodified energy burden of multifamily

renters has surpassed that of renters and owners of single-family homes largely due

to their lower incomes. However, their energy usage is lower than other housing

types, presenting fewer energy savings opportunities, which may affect their

willingness to participate in the ESA Program.

D. Identifying Areas of Opportunity

In D.16-11-022, the CPUC instructed the IOUs to develop marketing strategies and focus

on customers within “hard to reach” markets. As defined by the statewide IOUs during the May

23, 2017 ME&O workshop, hard to reach markets are sometimes less accessible to conventional

marketing and outreach methods, and thus, may be less likely to access or seek support offered

via programs through traditional ME&O. For this reason, a more focused marketing approach

may be warranted in these areas. These approaches will be further outlined in Section V.E.2.

Four primary areas identified as hard to reach markets include: customers in high

poverty, customers living in rural areas, renters, and market-rate multifamily residents. A deeper

look at each segment for participation rates at the county level, with highlights at the ZIP code

and city level, helps to identify opportunities for marketing, and to shape strategies in

underserved areas.

1. High Poverty

The definition of a high poverty household is one with an income at or below 100% of

the FPG. In SCE’s service territory, approximately 14% of customers reside in high

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poverty households. Using both SCE and Athens Research data3 for estimated penetration

by county, SCE was able to identify ZIP codes and communities with high opportunity

for participation in CARE and ESA. The table below shows counties with the highest

opportunities for additional penetration, along with the top cities of opportunity within

those counties identified. While some of these cities may typically be viewed as higher

income communities, the data is suggesting that a segment of customers fitting the low

income criteria fall within their boundaries, and point to a need for additional marketing

to ensure coverage.

Areas of Opportunity

County Top Cities

CARE Fresno Lakeshore, Shaver Lake, Huntington Lake

Mono Bridgeport

Orange Irvine, Laguna Beach, Newport Beach, Corona del Mar

ESA Los Angeles

Long Beach, Santa Monica, Torrance, Valencia, West

Hollywood

Mono Mammoth Lakes, Bridgeport, June Lake

Orange

Irvine, Huntington Beach, Newport Beach, Mission

Viejo, Lake Forest

San Bernardino

Redlands, Barstow, Twentynine Palms, Lake

Arrowhead

2. Rural

Rural areas are generally defined as those isolated from larger metropolitan areas, either

by distance or other physical features, such as mountain or canyon divides, making it

difficult to reach the area. The following are counties and top cities with greater

opportunities for CARE and ESA program participation, based on populations of

3 Compliance Filing of Pacific Gas and Electric Company, on behalf of itself, Southern

California Gas Company, San Diego Gas and Electric Company, and Southern California Edison

Regarding Annual Estimates of CARE Eligible Customers and Related Information, filed

February 10, 2017.

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estimated income-eligible rural customers, combined with lower penetration rates for

CARE, or higher numbers of untreated households for ESA. The identified rural

population of 224,000 customers represents 15% of SCE's income-qualified population.

Areas of Opportunity

County Top Cities

CARE Inyo Bishop

Los Angeles Acton, Lake Hughes, Pearblossom

Mono Mammoth Lakes, June Lake

ESA Kern Ridgecrest, Tehachapi, Rosamond, Lake Isabella

Los Angeles Acton, Avalon, Lake Hughes, Pearblossom

Riverside Temecula, Beaumont, Elsinore

San Bernardino Victorville, Barstow, Yucca Valley, Twentynine Palms

3. Renters

Based on SCE data, about 36% of CARE and ESA customers are renters. Of these, 58%

are in multifamily dwellings, and the remaining 42% reside within single family homes.

SCE is seeing an opportunity with renters on CARE who have not yet participated in

ESA with about 60% of these in multifamily housing, and 40% in single-family housing.

The highest proportion of renters live in the following counties and cities:

Areas of Opportunity

County Top Cities with Renters

CARE Kings Hanford

Los Angeles Long Beach, Los Angeles, Santa Monica, Inglewood

Orange Irvine, Santa Ana, Huntington Beach, Costa Mesa

Santa Barbara Santa Barbara

Ventura Oxnard, Ventura, Simi Valley

ESA Los Angeles Long Beach, Santa Monica, Torrance, Inglewood,

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Hawthorne

Orange

Irvine, Huntington Beach, Costa Mesa, Garden Grove,

Orange

Santa Barbara Santa Barbara

Ventura Oxnard, Ventura, Simi Valley

4. Multifamily

According to the 2013 ESA Program Multi-Family Segmentation Study, 30 percent of

California households (approximately 1.2 million) meet the ESA Program's definition of

the multifamily market, defined as residents of properties having five or more units. This

figure increases to 46 percent when adding properties with two to four units, which is the

definition used by non-low-income multifamily energy efficiency programs.

It should be noted that other populations exist that can also be considered hard to reach:

customers with limited English proficiency, customers with disabilities, seniors, and

undocumented immigrants. The 2013 LINA noted relatively high rates of participation for these

populations, suggesting that SCE continues to reach them using existing strategies. SCE will

continue to consider and include these audiences in its ongoing marketing activities, and in

executing any new marketing tactics.

IV. OVERALL MARKETING PLAN

A. Marketing Objectives

SCE’s primary low income marketing objectives are to build awareness and generate leads

for CARE and ESA. This is accomplished by continuing to build upon proven marketing tactics

and proactively exploring new opportunities and untapped channels to ensure all eligible

customers are being reached.

Supporting marketing objectives include:

Identifying targeted audiences (hard to reach)

Prioritizing communications and customize messaging to targeted audiences

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Using data to refine propensity models

Ensuring a simple and easy enrollment experience

Integrating with other proceedings

Specific to CARE, marketing objectives are to:

Acquire new customers into the program in order to meet the 90% aspirational

goal

Retain eligible customers

Engage eligible, hard-to-reach customers

Specific to ESA, marketing objectives are to:

Generate leads for program contractors

1. Goals

The annual target for CARE continues to be an ‘aspirational’ goal of 90% enrollment of

eligible households. For 2017, based on an estimated eligible population provided by Athens

Research, the number of eligible households is 1,457,787. Based on the 90% aspirational goal,

SCE’s target is 1,312,008 customer enrollments. This eligible population may change in 2018

and subsequent years, resulting in annual revised targets.

As directed by Decision D-16-11-022, the targets for households treated through the ESA

Program are 54,509 in 2017 and 54,509 2018 respectively. Additionally, the ESA program has

a 30.8 MWh savings target for Program Years 2017 and 2018, subject to revision in Program

Years 2019 and 2020. Moreover, the ESA program has a goal to reach 15% of disabled

customers.

2. Overarching Strategic Approach

SCE’s strategic approach for low income programs is to provide the right offer, to the

right customer, at the right time. This is accomplished by reaching all customers, including hard-

to-reach, through multi-dimensional marketing efforts in order to achieve marketing objectives.

By using a mix of channels, SCE is able to ensure year-round communications around low

income programs, reach all customers in their preferred method of communication, and address

specific barriers to communication. Underlying this approach is a philosophy and desire to keep

the enrollment process simple for customers, and to make it easy for them to interact with us.

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SCE plans to continue with this overarching approach over the course of the next program cycle,

through 2020.

B. Segmentation Approach

SCE has adopted an overarching psychographic scheme of its residential customer base,

composed of five segments. Based on customer profile data previously shared, most low income

customers appear to fall within the Disengaged and Constrained segments. When developing

overarching marketing strategies, these schemes are taken into account.

Within the low income population, SCE further segments customers for participation in

CARE and ESA. To locate the most likely customers to enroll in CARE, SCE has utilized

internal customer and external demographic data to develop a propensity model for direct

marketing. This model reviews recent enrollees in CARE and links them with other customers

who exhibit similar characteristics to identify those customers with the highest enrollment

potential. For ESA, audiences are strategically targeted throughout the territory to balance

contractor staffing, customer satisfaction, and enrollment potential.

It will be important to apply further segmentation and analysis to ensure coverage of all

low income customers. For example, additional segments exist with hard to reach customers

such as high poverty or renters. Details about specific activities to reach these audience

segments will be provided in Section V.E.2.

C. Target Audiences

CARE and ESA have distinct target audiences. For CARE, the primary target audience is

income-eligible unenrolled customers, and those who need to recertify. For ESA, the audience

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becomes more segmented, with new CARE customers, recent movers, and those CARE

customers with the highest usage and/or the longest tenancy (on the program for 6+ years).

Reaching these latter segments will require continuous data analysis in order to ensure that these

populations are being addressed.

For both CARE and ESA Programs, and as identified earlier, additional audiences and

areas of focus include those in hard-to-reach segments: Rural, High Poverty, Renters, and

Multifamily, as well as customers in targeted communities (such as Aliso Canyon, San Joaquin

Valley), and those with limited English proficiency, customers with disabilities, seniors, and

undocumented immigrants.

Tactics for reaching these audiences will be addressed in greater detail in Section V.E.2.

D. Messaging Strategy

SCE has built a messaging platform around low income programs in a way that speaks to

and resonates with low income customers. At its core, messaging around both CARE and ESA

is focused on the health, comfort and safety of our customers. SCE believes messaging is key to

addressing and overcoming barriers to program participation. Two key messages -- the benefits

of the programs and the cost savings -- are currently communicated to customers in all marketing

materials.

SCE has used a proactive test and learn approach in order to determine priority messages

and those that will best resonate with customers. For example, SCE recently used email to test

messaging for CARE. In the test, recipients received a promotional email highlighting either

income guidelines or public programs (for example CalFresh/SNAP, Supplemental Security

Income, or Medi-Cal/Medicaid) as a way to qualify. Through this test, SCE learned that

customers receiving the email highlighting public programs generated higher response and click-

throughs to the CARE enrollment page. From this learning, SCE has revised content on sce.com

to prioritize the visibility of public programs as a criteria for enrollment, and is expanding this

knowledge to other CARE communications.

To continue to address barriers, such as trust or belief in the value of the programs, SCE

will expand its messaging to include an emotional connection by introducing real-life stories and

customer testimonials in marketing materials. Recognizing the unique barriers and issues facing

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customers in more targeted segments, such as renters or high usage, SCE will work to customize

messages pertinent to each audience, as influenced by research and an ongoing and proactive test

and learn approach. To ensure low income programs are included as part of a holistic bundle of

offerings to all customers, rather than a unique offering, SCE will integrate messaging when

appropriate with other communications around rate reform, energy efficiency, and energy

management technologies.

Recognizing the diverse customer base within southern California, as well as diverse

language needs and preferences, all low income communication will continue to be provided in-

language. To address the needs of the disabled and visually impaired, SCE continue to include

online and printed materials in appropriate formats, as well as provision of Braille when

requested.

E. Tactical Approach

This plan provides for tactical approaches on three levels: general audiences, hard to

reach, and targeted communities. High level tactics and approaches currently in place and aimed

to the general population of low income customers will be addressed in the first section. This

section also introduces new ideas and tactics to continue reaching this audience over the next

three years. The approach for hard to reach and targeted communities will be addressed in the

second and third sections, and may include many of the tactics to be discussed for general

audiences. SCE feels it is important to distinguish these approaches to demonstrate a

commitment to reaching these segments and ensuring coverage to all eligible.

1. Tactical Approach for General Audiences

SCE currently uses a multi-channel approach to achieve marketing objectives.

This approach includes tactics designed to build broad awareness of the CARE and ESA

Programs, as well as direct marketing for lead generation. To supplement these approaches, SCE

leverages low and no-cost channels, outreach, and partnerships. SCE believes it is through a

combination of tactics and message repetition that customers learn and engage with SCE about

low income programs; no one tactic alone can be responsible for meeting enrollment goals.

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a) Broad Awareness

For broad awareness, SCE will continue to utilize media channels with

wide reach. This can include display and mobile advertising, search engine marketing, and

social media. Customers responding to these channels are driven to sce.com, where relevant

content can be provided on low income programs which can address barriers such as legitimacy

and quality of the offers, contractor trust, and to answer questions about eligibility. Given the

real-time nature of digital channels, they will continue to be used as mediums for message testing

and monitoring feedback, in addition to building awareness.

While display and mobile ads are currently being used for broad

awareness and wide reach, SCE has the ability to allow for deeper targeting based on attributes

such as geography or behavior. With this additional knowledge, SCE can begin to tailor and

target ads to specific audiences and geographies, such as high opportunity ZIP codes. SCE will

also explore ways to interact and engage with customers through the use of video ads, which are

less expensive than television but can provide a more targeted reach. These ads could be

targeted at specific audience segments, such as high poverty or renters, and can be tailored to

include personal stories that address unique barriers.

As pointed out in the discussion of barriers, there is a segment of

customers who do not have access to the internet, or prefer communications from more

traditional channels. Broad awareness will need to expand to include more traditional channels

such as local print advertising to reach older and ethnic communities, and in rural areas, to

explore the use of local radio. SCE will also explore the use of out of home advertising, such as

ads in bus shelters or on digital billboards, in ZIP codes of high opportunity.

b) Direct Marketing

For a more personalized message, SCE will continue to utilize direct

marketing channels, which include direct mail, email, and outbound calling. Often, the channels

are used concurrently to supplement, strengthen and reinforce messaging. The combination of

the three channels has been an effective means of generating leads for ESA contractors and in

providing new applications for CARE. As previously discussed, a large segment of low income

customers exhibit a preference for paper-based communications or do not have access to the

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internet, so SCE will continue to rely on direct mail as a primary means of lead generation for

ESA contractors.

SCE has maintained a cadence of monthly ESA mailings to ensure a

constant stream of leads for its contractors, and supplements these efforts with monthly outbound

calls prior to contractor assessments, as well as promotional emails. SCE feels that providing this

regular stream of "warm" leads to ESA contractors through its ongoing direct marketing efforts

is a more effective means of lead generation, and will continue to follow this practice in lieu of

extensive cooperative marketing with contractors.

Looking ahead over the next three years, there are new opportunities to

expand on direct marketing tactics. Acknowledging that many customers that receive direct mail

may be those that are seniors or disabled, SCE will update printed materials to be more

accessible and readable for this audience. As SCE continues efforts to capture email addresses

and introduces more customers to self-service channels, they can begin to shift to a greater

emphasis on email solicitation for lead generation, thus realizing cost efficiencies and a simpler

enrollment process. SCE has begun to test marketing automation using triggered emails to enroll

new customers on CARE as part of a welcome journey as new service begins. SCE will continue

to explore the use of marketing automation to allow for new paths for CARE customers, by

introducing ESA or an alternate energy management program as a next step.

As more customers move to mobile phones and away from landlines,

there is an opportunity to begin to use text messaging as a way to provide potential ESA

customers notifications and reminders about upcoming neighborhood contractor canvassing. This

technique could prove fruitful in gaining more of a foothold in targeted areas, including rural

communities or high poverty areas. SCE will explore using this new direct channel as a way to

notify communities and to help to generate leads for local ESA contractors.

c) Low and No-Cost

In addition to broad awareness and direct marketing tactics, SCE leverages low and no-

cost channels using existing communications and tools to keep customers informed about low

income programs. By doing so, SCE ensures a low yet constant level of messaging during dark

media periods for broad awareness, or in areas that are not being targeted with direct marketing

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tactics. These channels can include bill messages, bill onserts, cross-promotion with other

program materials, sce.com web content, call center enrollments, and IVR messaging.

As previously discussed, SCE uses the sce.com website and program landing pages to

address barriers to participation, as well as to provide more detailed information on enrollment

guidelines, program benefits, and to facilitate enrollments. SCE has begun work to optimize the

CARE and ESA enrollment pages to enable a simpler and easier enrollment process for

customers choosing to enroll using a mobile phone. In February 2017, SCE completed the ESA

mobile-optimized website to allow customers to enroll in the program and check the status of

their enrollment. This website is available in both English and Spanish. A similar mobile-

optimized website for CARE will be complete by December 31, 2017. This site will allow

customers to check the status of their enrollment, recertify for CARE, and for the first time,

allow for post-enrollment verification document uploading, allowing for increased CARE

enrollment and retention. As with ESA, the CARE site will be available in both English and

Spanish.

For customers that do not or cannot use the internet, SCE will continue to provide the

Customer Contact Center as a low cost enrollment channel. Customer service representatives

have the capability to enroll customers in the CARE program over the phone when inquiries are

made for new service turn-ons, credit calls, or with potential disconnects. SCE also provides

messaging around CARE and ESA during the “on-hold” periods when customers are waiting to

speak to representatives.

One low and no-cost channel meriting further consideration to reach customers in their

ongoing communication with SCE is by leveraging the bill payment experience. This

interaction, though brief, may be the only interaction a customer may have with SCE each

month. As mentioned previously, messages about assistance programs such as CARE and ESA

are regularly featured on customer bills. SCE’s data shows many low income customers receive

and pay their bills using offline channels, so this remains a good forum for communication. For

those customers receiving an electronic bill, and as SCE continues its efforts to move more

customers to self-service and digital channels, an opportunity exists to begin leveraging

electronic communications, such as monthly transactional emails around bill notification,

payment reminders, or payment confirmation. SCE has previously used the June and July bill

payment emails as a way to inform online billing customers about annual income guideline

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changes. SCE will continue to review other experiences and electronic interactions with the

utility to uncover additional opportunities to include messaging about CARE and ESA.

d) Outreach and Partnerships

SCE engages with customers on a 1:1 basis through community

outreach using community and faith-based organizations (CBOs and FBOs), capitation agencies,

and through ESA contractors. SCE has ongoing partnerships with CBOs that provide services to

a wide variety of diverse customer segments across the territory. They have established

relationships with groups that work with Hispanic communities, Asian-Pacific Islander

communities, African American communities, Native American communities, veterans groups,

LGBT communities, immigrant communities, consumer advocacy groups, environmental groups,

and many other customer segments. By working with these groups, SCE is able to connect with

hard to reach audiences in a friendly setting, using trusted community resources. In 2016, SCE

participated in 140 outreach events to low income customers, reaching 21,000 customers, and

plans to continue to engage CBO partners on low income programs.

SCE will also continue to explore and create partnerships with third

parties, such as 2-1-1.org, GRID Alternatives, Lifeline administrators and/or providers, Covered

California and other local and state agencies, to ensure messages and information about low

income assistance is available to all customers. This will be done in a coordinated effort with

other marketing initiatives underway at SCE, including Energy Upgrade California, energy

management tools, and rate reform.

SCE will continue to partner with SoCalGas for joint marketing

opportunities in shared ZIP codes. While data sharing has existed between the two organizations

for some time, and is a key source of new customers, the two utilities have recently begun

partnering on marketing materials. In 2016, an iterative test and learn approach was used across

two direct mail letters to low income customers in shared ZIP codes. From each mailing, the

utilities have gathered valuable learnings about joint messaging and shared customer responses.

SCE and SoCalGas will continue to use this approach and build upon learnings for ongoing joint

utility communications and outreach.

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2. Tactical Approach for Reaching Targeted Populations

In addition to the marketing tactics previously described, a more prescriptive

approach will be applied in targeted populations. Given the potential overlap in audiences, for

example high poverty and rural audiences, the timing and coordination of these efforts with

ongoing tactics for the general population will be critical to success. Just as important,

customized messages will need to be tested, and learnings applied, to address the key barriers

faced within each population.

a) High Poverty

In high poverty areas, SCE plans to monitor participation and enrollment

data to identify and pinpoint communities that exhibit lower than average penetration rates. In

examining these communities, SCE can identify clusters or common geographic areas in which

to expand on the neighborhood approach and to develop focused campaigns in areas of need.

These focused campaigns would include partnering with ESA contractors to ensure adequate

staffing and coverage in a given area, complemented by SCE-led marketing activities. These

activities include direct marketing, such as direct mail, email, outbound calling, or text

messaging, for lead generation. If cost-effective to the size of the population, SCE can explore

the use of local print advertising to build increased awareness. As part of its outreach, SCE may

reach out to community organizations and existing partnerships currently in place with state and

local governments to ensure consistent and ongoing messaging while the contractors are in a

targeted area. A similar approach has been used with success for Commercial Direct Install.

b) Rural Communities

As with high poverty communities, SCE plans to monitor participation

and enrollment data to identify and pinpoint rural communities that exhibit lower than average

penetration rates. A similar focused campaign approach can be explored for ESA, taking into

account cost efficiencies and economies of scales given the smaller populations and size of this

opportunity. As discussed in the section on barriers, insights from customers in rural areas

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suggests local community outreach, local TV or radio spots may be the best way to provide

adequate reach into these communities.

In both high poverty and rural communities, the issue of trust has arisen

as a barrier to participation. To overcome this barrier, outreach and support from local and

respected community organizations may be needed to provide additional legitimacy and to

reassure customers. In 2015, SCE faced this barrier in the Chemehuevi Native American

community along the California/Arizona border. By working together with SCE’s Local Public

Affairs representative for tribal nations, the ESA program team, and the Chemehuevi Housing

Authority Department (CHD), a series of meetings were held to address concerns and showcase

the benefits of the program. Together, the team, including ESA contractors, mapped out a

comprehensive approach in the installation of energy efficient measures, and successfully

completed installations in 87% of the CHD units in 2016. Feedback has been positive, and SCE

is now using this approach as a model for reaching other Native American tribes in the territory.

A similar approach can be applied to other rural and high poverty areas, in addition to the direct

marketing and awareness efforts discussed.

c) Renters

To begin addressing barriers to participating in the ESA program for

renters, SCE has placed language on direct marketing materials that point out that whether

customers own or rent, they are eligible for the program. For repetition and recall, this language

is noted several times throughout materials. However, SCE recognizes there are additional

barriers renters face, which can be addressed through targeted messaging on direct marketing

materials as well as on collateral provided to customers by ESA contractors.

Identifying renters and their dwelling type is an important element of this

approach. Data indicates just over one-third of low income customers are renters, with 58% in

multifamily dwellings, and 42% in single family properties. SCE can utilize the test and learn

approach with this data, by segmenting out potential renters by type of dwelling, and developing

customized direct marketing campaigns and messages for each segment. For example, for renters

of single family homes, the message may focus on obtaining landlord permission, while for

multifamily dwellers, the message could focus on the benefits and cost savings of the ESA

program.

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For ESA contractors, SCE is developing a new ESA brochure specifically

for property owners and managers to provide education around program benefits and to address

common barriers around the installation process and program requirements. When a contractor is

canvassing a neighborhood or meeting with a new lead, a reply card and pre-addressed envelope

can be left with the customer to provide to the landlord or property manager, and in turn, the new

brochure will be sent out to that individual, either through mail or electronically.

d) Multifamily

Outreach to the market-rate multifamily segment impacts two audiences:

the property owner or manager and the tenant. In its outreach to property owners and managers,

SCE will continue to utilize the single point of contact (SPOC) and authorized multifamily

contractors to identify potential low income properties for ESA and to partner with local trade

and industry associations for awareness. Once this contact is made, SCE will provide improved

communications to help ease the enrollment process. The ESA brochure designed for property

owners and managers, discussed above, is one new communication to be offered. Additionally,

SCE has begun to develop an Intent to Enter form, which is a joint form for the ESA Program

and Multifamily Energy Efficiency Rebate (MFEER) program, and will be used by contractors

that have obtained property owner and/or manager authorization. SCE is currently redesigning

the Multifamily Property Resource Center landing page to become a "one-stop shop" for

property owners including low income and affordable housing operators.

SCE is actively engaged with local apartment owner associations that

serve market rate property owners. To encourage participation in low income program, SCE

plans to increase engagement and build partnerships with organizations that specifically serve

low-income housing, such as Southern California Association of Non-Profit Housing

(SCANPH), National Affordable Housing Management Association (NAHMA), California Tax

Credit Allocation Committee (CTCAC), and U.S. Department of Housing and Urban

Development (HUD). Activities planned to strengthen and build these partnerships include

organization membership, participating in meetings, hosting booths and educational seminars at

trade shows, and marketing in trade publications.

In addition, SCE plans on utilizing data analytics to evaluate items such as

energy use and previous participation to identify high opportunity properties in order to prioritize

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program activities. SCE will expand learnings from the 10-10-10+ Multifamily Behavioral Pilot

to cover the entire SCE service territory. This work entails overlaying county assessor data with

SCE service accounts to establish property level Energy Use Intensity. With this information,

SCE can develop specific targeting strategies for geographic areas or individual properties with

the greatest needs.

For tenants within multifamily properties, the tactical approach previously

described for renters can be applied, with specific tests around messaging to multifamily renters,

and the pre-paid reply envelope to be provided to landlords.

3. Tactics for Additional Targeted Communities

a) Aliso Canyon Communities

In 2016, SCE began to intensify ESA communications to customers in

areas affected by the Aliso Canyon Gas Storage Facility natural gas leak. These communications

included direct marketing and broad awareness in targeted zip codes. SCE used participation

from SCE’s prior contractor assessments, as well as measure savings data, to identify those

customers in the Aliso Canyon area that were most likely eligible for high-energy saving

measures, and sent marketing communications to these customers that provided a direct link to

contractors, who then prioritized installation of these measures to assist with mitigating load

impacts.

In addition, SCE and SoCalGas partnered on two direct mail

communications to shared customers, promoting the ESA Program. This partnership will

continue with additional direct mail campaigns and outreach activities, applying lessons learned

from the 2016 effort for optimal communications.

b) Disadvantaged Communities in the San Joaquin Valley

Within the San Joaquin Valley, 56 communities fall within SCE’s

territory. These communities may be classified under both the high poverty and rural hard to

reach segments. As such, marketing tactics used to reach these segments can be applied. These

tactics can include direct marketing, and on a smaller scale, broad awareness, including digital

media, out of home, or local media outlets such as radio. Given barriers of language fluency and

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trust, understanding the demographics of the SCE customer base in the region will also be

important, with in-language materials as well as in-language community outreach serving as

critical inroads to the diverse population.

There is opportunity to bundle messages with other programs for this

community to provide a more holistic product offering to customers. This could include low

income programs such as CARE and ESA, but also Medical Baseline. Additionally, through

bundled messaging, SCE can explore ways to educate low income customers about opportunities

for zero-cost solar installations through the Single Family Affordable Solar Housing program.

c) CARE Customers with High Usage and Long Tenure

As referenced in Decision 16-11-022, two important segments of CARE

customers who have not participated in ESA are those with high usage, and those that have been

on the CARE rate for 6+ years. While these customers may have been marketed to in previous

campaigns, their lack of participation in ESA would indicate that a greater focus with different

messaging should be applied. SCE recommends these communications occur one to two times

per year on a rolling basis to capture customers should they fall into one of these categories.

Both segments of customers can be identified through internal data

analysis, and special care should be taken to provide customized and distinct communications to

each audience. For example, high usage CARE customers could benefit from language on how

ESA can help reduce and manage energy usage over the long term, and help to avoid a high

usage charge. For long-tenured CARE customers, messaging could speak to the overall benefits

of the ESA Program, and to make the program feel worthwhile to the customer. For both

audiences, customer research may help to determine what barriers have prevented them from

participating in the past, and to provide insight into additional communication points to get them

to enroll.

d) Customers with Disabilities

SCE is exploring new partnerships and updating marketing materials into

new formats to address the needs of customers with disabilities. SCE will look into relationships

with the deaf community, advocates, and other organizations to help increase participation.

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For customers needing materials in alternate formats, SCE plans to update

collateral and direct mail communications to be more readable. For example, larger fonts and

callouts for key words and phrases can be applied to ensure seniors or those with visual

impairments can read and understand critical program information. When requested, collateral

material in Braille can be provided.

V. INTEGRATION

The next three years represent a critical time for residential electricity customers.

With the upcoming transition to time-of-use (TOU) rates, to the introduction of exciting new

energy management technologies, to the overarching statewide campaign's message to “Do Your

Thing”, Californians are facing a mix of messages from SCE and other entities, that have the

potential to confuse or overlap, thus diminishing the intent of marketing messages. Existing SCE

program communications, such as those related to energy efficiency or low income programs,

have the potential to "get lost in the shuffle" as these newer messages are offered; however, these

programs still face enrollment goals which need to be attained. SCE recognizes the importance

of all of these communications, and more importantly, the need to ensure these efforts are

integrated and coordinated so as to provide relevant and timely messages to its customers and

avoid confusion.

SCE will achieve integration by utilizing a comprehensive communications

strategy, whose foundation is based on two principles: 1) creating a positive and sustained

customer experience and 2) leveraging efficiencies across multiple customer outreach efforts.

First, in creating a positive, intuitive customer experience, SCE will seek to

complement existing low income program messages and outreach with appropriate program

messages as natural solutions or next steps. This would mean defining when an integrated

message is helpful and meaningful, and not confusing, to a customer. To maintain relevancy,

integrated messages should be driven from the customer’s point of view and experience. For

example, upon completion of the ESA Program, a logical next step might be to inform customers

of energy management tools such as SCE’s My Account or Budget Assistant to continue their

journey. Or, for CARE customers that are experiencing higher bills, marketing automation can

trigger messages about rate options and tips for how to manage their usage.

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Second, in leveraging efficiencies across multiple outreach efforts, SCE will

identify key points where integration or bundling of messages within campaigns would be most

effective. By doing so, duplication and conflicting messages can be avoided.

Several current and ongoing proceedings have been identified as opportunities for

integrating with low income marketing efforts: Residential Rate Reform, Statewide ME&O,

AB793, and Energy Efficiency Business Plan. Integration opportunities within each of these

proceedings are outlined below.

A. Coordination with Residential Rate Reform

The objective of SCE’s ME&O efforts around residential rate reform are to drive

awareness, understanding and engagement around upcoming rate changes and what customers

can do to better manage their energy use, and ultimately, their electricity bills. The proposed

campaign will encompass many of the same channels suggested for low income customers and

will encompass multiple years. Throughout the course of this proposed multi-year effort, there

will be several touchpoints with which to integrate CARE and ESA. These opportunities include

high usage communications, seasonal educational campaigns, and ongoing rate options and TOU

educational efforts over the transition period. SCE has begun some of this integration by

including ESA as a way to manage energy use on educational rate brochures, and will begin to

explore additional opportunities for highlighting CARE and ESA in relevant communications.

SCE has begun to explore the use of the ESA energy education module as an additional platform

for educating customers on new rates, as well as tips and education on how to manage energy use

during peak periods.

At the time of this filing, the ME&O plan for residential rate reform has not been

approved. Upon approval, low income marketing leads will continue to coordinate with

residential rate reform marketing leads to ensure that low income programs are represented and

integrated, as appropriate, within any relevant rate notifications and communications.

B. Coordination with AB793

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As part of Assembly Bill 793, the utilities have been directed to develop ME&O

plans to promote the use of energy management technologies (EMTs). As such, the objective of

SCE’s ME&O efforts are to drive awareness, understanding and engagement with targeted

customers regarding EMTs in order to help them manage energy use and save money. SCE’s

recently updated marketing plan contains strategies to market EMTs to communities with the

highest disconnection rates and disadvantaged communities. As these communities are often

associated with customers eligible for or those that are already participating in low income

programs, integration and coordination is essential.

SCE will monitor and seek opportunities for integrated messaging in its low income and

EMT marketing. For example, instead of separate and distinct communications in overlapping

communities, such as disadvantaged communities and vulnerable, or hard to reach (high poverty)

low income markets, integrated messages using shared channels such as direct mail, email, social

media, or outreach events, can be explored to ensure that a complete offering of appropriate

programs to manage energy usage and save is presented to customers at the same time. Using

customer and external demographic and behavioral data, SCE can identify low income customers

with the best potential for EMTs or more appropriate lower cost tools, such as bill forecast alerts

and energy surveys, and use this data to coordinate with AB793 communications for an

integrated message. SCE can also explore adding EMT education as part of the ESA energy

education module. A recent pilot promoting Budget Assistant (a free bill alert notification tool),

as part of the module garnered positive results and shows promise for extending to a wider

audience.

With the recent approval of the updated marketing plan for AB793, SCE has begun work

on a tactical plan for execution in Q4 2017. The low income marketing team has already been in

discussions with the AB793 marketing team to ensure that low income programs are represented

and integrated, as appropriate, within any relevant AB793 communications.

C. Coordination with Statewide ME&O

In April 2017, the new Energy Upgrade California statewide ME&O campaign, Do

Your Thing, launched across the state. The campaign is part of a 5-year effort to build an energy

efficiency movement among all Californians, including low income consumers, over time. This

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campaign seeks to build awareness of energy education and increase intent to engage in energy

management across a broad spectrum of marketing channels, including digital advertising,

broadcast media, social media, public relations, and community outreach.

In prioritizing the many program areas that can be discussed in the statewide

campaign, the IOUs, the CPUC, and the statewide implementer (DDB) have agreed to include

ESA as a high priority program for education. This is important in that low income customers

responding to advertising and choosing to learn about ways to be more energy efficient can

understand that affordable and low cost energy management options do exist for them to

participate and to do their part for California.

Two areas have emerged as opportunities for integration between low income

programs and the statewide campaign: driving website visits and community-based outreach.

Through the new Energy Upgrade California's Home Energy Efficiency constellation website,

developed in consultation with local statewide ME&O leads and DDB, content on financial

assistance through CARE and ways to be more efficient through ESA became available in late

May. Visitors to the Energy Upgrade California website can now learn the basics about ESA,

CARE, and other government programs, and more importantly, can readily link to SCE's website

to obtain more detailed information or to begin the enrollment process.

SCE will partner with DDB to plan and implement community-based outreach

efforts. While SCE has long-standing relationships with many local CBO/FBOs, we appreciate

the broader air cover that DDB seeks to build and grow with larger governmental and statewide

entities for further outreach. As appropriate, SCE will seek opportunities to partner with DDB,

SoCalGas, and local community partners on joint outreach activities for shared customers. In

addition, SCE will work with DDB to review and understand their outreach calendar and timing

in order to align local marketing efforts and coordination of messaging to avoid duplication of

efforts and customer confusion.

D. Coordination with Energy Efficiency Business Plan

SCE filed its Amended Energy Efficiency Rolling Portfolio Business Plan For

2018-2025 (A.17-01-013) in February 2017. The plan cites SCE’s vision for the Residential

sector, which is to increase customer adoption of residential EE measures, enhance customer

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knowledge of energy-saving actions, and target EE market participants to maintain cost-

effectiveness.

The business plan identifies the connection of multifamily properties and the ESA

Program, and identifies similar barriers to participation as discussed in Section III. To increase

awareness and drive program participation in multifamily EE offerings, SCE proposes

continuing its strategy to partner with local trade associations, local governments, and portfolio

operators. To simplify enrollments and minimize customer touchpoints with SCE, the continued

strategy of a single point of contact (SPOC) is also proposed. The use of a SPOC was previously

discussed in Section V.E.2.d when addressing specific marketing tactics to reach the multifamily

audience in the low income segment.

In addition to its current strategy of partnering with local multifamily agencies,

SCE proposes expanding its partnering efforts to increase focus on low-income and rural

customers through increased coordination with relevant agencies, such as the U.S. Department of

Housing and Urban Development, California Tax Credit Allocation Committee, the U.S.

Department of Agriculture, and Tribal Governments. The plan also proposes that SCE partner

with the local multifamily housing industry.

At the time of this filing, the EE business plan has not been approved. Upon

approval, the low income marketing team will coordinate with EE efforts to ensure that low

income programs are represented and integrated, as appropriate, within any relevant EE

communications and partnerships.

E. MEASUREMENT AND METRICS

Given SCE is deploying a variety of tactics to deploy its ME&O plan, a variety of metrics

will be utilized to evaluate success and effectiveness of each effort. As tactics are deployed and

tested, SCE can provide metrics for these approaches, including:

Activity Metric

Broad Awareness

Display/Mobile Ads Impressions, click-throughs

Paid Search Impressions, click-throughs

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Social Media Shares, Re-tweets, Likes, Mentions

Radio* Impressions, total spots

Video Ads* Impressions, views, click-throughs

Print* Circulation, readership

Direct Marketing

Direct Mail Quantity, response rates (leads, applications)

Email Quantity, open rate, click-through rates

Outbound Calling Quantity, calls completed

Text Messaging* Quantity, open rate, click-through rate

Lo and No Cost

Bill Messaging Distribution

Website Page views

IVR Distribution

Transactional Emails Distribution, click-through rate

Outreach

Events, Workshops #Events, attendance, interactions

CARE Capitation Agencies Lead conversion, enrollments

*Proposed new tactics, not currently being used or measured for low income marketing

As previously discussed, SCE has adopted a proactive test and learn approach with low

income marketing and outreach, to continuously improve upon marketing messages and

channels. Through this approach, SCE has been able to establish baselines metrics such as direct

mail response rates, and email or banner ad click-through rates, with which to measure against

when testing such tactics as new direct mail formats, email subject lines, or banner ad creative.

SCE also measures against utility industry benchmarks as an additional data point in which to

gauge success.

SCE will use customer research to monitor awareness and satisfaction of its low income

audience to ensure that not only are low income messages being appropriately communicated,

but also understood. On internal and external customer satisfaction measures, SCE can segment

low income customers to measure their understanding of rate choices, billing and payment

options, and their awareness of the programs offered to help manage their energy usage. If gaps

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are identified for these metrics, SCE can work to incorporate these messages more strongly in

communications and continue to monitor awareness.

As SCE begins to further analyze its low income customer base to identify the hard to

reach segments, such as high poverty, rural, renters, multifamily, high users, or those with long

CARE tenure, and deploys specific marketing tactics against these audiences, it follows that

these tactics will need to be monitored. As tactics are deployed, specific tracking mechanisms,

such as source codes, vanity URLs, or through back-end enrollment analysis, will be conducted

to measure effectiveness of that approach and to measure if penetration into that audience has

increased. SCE will report back to the CPUC on its efforts and successes in each segment.

SCE will provide and continually monitor a variety of metrics to demonstrate the

effectiveness of its marketing efforts. The test and learn nature of the plan, as well as the use of a

variety of tactics, allows for flexibility to make changes in approach or to shift the mix of one

channel over the other to ensure goals are being attained.

F. BUDGET

SCE’s marketing budget breakdown for CARE and FERA is provided below:

Tactic 2017 2018 2019 2020

Direct Marketing $1,114,951 $1,076,091 $1,076,091 $1,076,091

Broad Awareness $300,000 $400,000 $400,000 $400,000

New

Tests/Initiatives

$100,000 $150,000 $150,000 $150,000

Collateral $45,000 $40,000 $40,000 $40,000

Outreach $658,252 $658,252 $658,252 $658,252

Administration $360,500 $360,500 $360,500 $360,500

TOTAL $2,578,703 $2,684,843 $2,684,843 $2,684,843

Direct Marketing includes direct mail and email for general audiences. Additional

funding is allocated for direct marketing activities towards hard to reach audiences (high

poverty, rural), as well as in-language versioning and updates for visually impaired

customers and new SCE branding.

Broad Awareness includes paid advertising such as digital banners, search engine

optimization, and social media.

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New Tests/Initiatives can include in-language video ads, and for hard to reach audiences,

local radio, print publications, or out of home advertising.

Collateral includes updates to customer-facing materials for new SCE branding, visually

impaired, and translations.

Outreach includes outbound calling, applications (printing & mailing), other outreach,

staff labor, 800#, and capitation fee project.

Administration includes costs associated with application processing, certifications and

recertification, post-enrollment verification, and general administrative expenses.

SCE’s marketing budget breakdown for ESA is provided below:

Tactic 2017 2018 2019 2020

Direct Marketing $550,000 $575,000 $570,000 $570,000

Broad Awareness $200,000 $200,000 $200,000 $200,000

New

Tests/Initiatives

$50,000 $50,000 $55,000 $55,000

Collateral $50,000 $25,000 $25,000 $25,000

Outreach $65,000 $65,000 $65,000 $65,000

Administration $35,000 $35,000 $35,000 $35,000

TOTAL $950,000 $950,000 $950,000 $950,000

Direct Marketing includes direct mail and email for general audiences. Additional

funding is allocated for direct marketing activities towards hard to reach audiences (high

poverty, rural, renters), go-backs, and long-term CARE customers, as well as updates for

visually impaired customers and SCE’s new branding.

Broad Awareness includes paid advertising such as digital banners, search engine

optimization, and social media.

New Initiatives can include SMS/text messaging, and for hard to reach audiences, local

radio, print publications, or out of home advertising.

Collateral includes updates to customer-facing materials for new SCE branding, visually

impaired, and translations. Can include versioning for hard to reach customers (renters,

multi-family).

Outreach includes outbound calling, contractor collateral, and community events.

Administration includes research, utility affiliations, and program operations.

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It should be noted that as with the overall marketing plan, the budgets for 2018-2020 are

intended to be flexible and are subject to change.

VI. APPENDIX

The appendix is included to provide CARE and ESA penetration levels by ZIP code,

highlighting those ZIP codes with lower than average penetration as of April 2017.

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35

36

37

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