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Utilities’ Update on Energy Savings Assistance Program Contractor Selection LIOB Meeting October 29, 2012 Sacramento, California.

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Presentation on theme: "Utilities’ Update on Energy Savings Assistance Program Contractor Selection LIOB Meeting October 29, 2012 Sacramento, California."— Presentation transcript:

1 Utilities’ Update on Energy Savings Assistance Program Contractor Selection LIOB Meeting October 29, 2012 Sacramento, California

2 2 Energy Savings Assistance Program Contractor Selection AB 1393 Enacted in 1999PU Code Section It is the intent of the Legislature to protect and strengthen the current network of community service providers by doing the following: (a) Directing that any evaluation of the effectiveness of the low- income energy efficiency programs shall be based not solely on cost criteria, but also on the degree to which the provision of services allows maximum program accessibility to quality programs to low-income communities by entities that have demonstrated performance in effectively delivering services to the communities. (b) Ensuring that high quality, low-income energy efficiency programs are delivered to the maximum number of eligible participants at a reasonable cost.

3 3 Energy Savings Assistance Program Contractor Selection AB 1393 Enacted in 1999PU Code Section 327(b) If the commission requires low-income energy efficiency programs to be subject to competitive bidding, the electric and gas corporation described in subdivision (a), as part of their bid evaluation criteria, shall consider both cost-of-service criteria and quality-of-service criteria. The bidding criteria, at a minimum, shall recognize all of the following factors: (1) The bidder’s experience in delivering programs and services, including, but not limited to, weatherization, appliance repair and maintenance, energy education, outreach and enrollment services, and bill payment assistance programs to targeted communities.

4 4 Energy Savings Assistance Program Contractor Selection AB 1393 Enacted in 1999PU Code Section 327(b) [Continued] (2) The bidder’s knowledge of the targeted communities. (3) The bidder’s ability to reach targeted communities. (4) The bidder’s ability to utilize and employ people from the local area. (5) The bidder’s general contractor’s license and evidence of good standing with the Contractors’ State License Board. (6) The bidder’s performance quality as verified by the funding source. (7) The bidder’s financial stability. (8) The bidder’s ability to provide local job training. (9) Other attributes that benefit local communities.

5 5 Energy Savings Assistance Program Contractor Selection CPUC Decision Conclusion of Law 14 Based on the information available at this time, it is reasonable to continue to afford utilities the flexibility to choose how they will outsource LIEE program functions, i.e., via competitive bidding, contract renegotiations, or a combination of both, subject to the policy guidance in this decision. This issue should be revisited during the PY2002 program planning cycle.

6 6 ESA Program Contractor Selection: PG&E PG&E selected its ESA Program Administrator through a two-step RFP process in Bidders submit proposals, describing their plans to: Provide safe, reliable and affordable services to PG&E’s low-income customers Provide energy savings and related environmental benefits Align with PG&E’s corporate goal to stimulate California economy Ensure the participation of WMDVBE businesses Ensure safe work practices and consumer safety PG&E evaluates proposals based on criteria including: Competitive price Experience and ability to perform the services required, Acceptance of terms and conditions, Completeness of the proposal package, Cost reduction ideas or alternatives for performing the services, Women, Minority, Disabled Veteran Business Enterprise (WMDVBE) status and subcontracting plan, Safety record, Financial stability Environmental impact These factors are not necessarily listed in order of importance. 2.A selected group of Bidders were invited to discuss their Proposals in greater detail before the final Bidder selection was made.

7 7 ESA Program Contractor Selection: PG&E ESA Subcontractors RHA routinely bids out the work for the subcontractors. When work in any area exceeds contractor resources, additional subcontractors are selected through bids and direct awards as needed (each new vendor must meet the requirements of the current successful vendors) ESA Direct Appliance Contracts PG&E routinely bids out the repair and replacement component of the ESA program. When additional vendors are needed: Posted on PG&E’s external website as well as supplier diversity reaches out to multiple community organizations Contractors are also identified through the Contractor “Blue Book” database (seek out contractors by license and area) These additional vendors can be direct awarded provided they match the requirements of the successful vendors of the RFP. PG&E Appeals For PG&E’s RFP process, we are available to meet with any non-selected bidders to discuss in a general way any areas of improvement for future proposals based on their response.

8 8 Energy Savings Assistance Program Contractor Selection - SCE SCE continuously monitors and evaluates the ability of the existing service provider network to meet the program goals. Program’s marketing and outreach strategy Geographic demands based on estimated population Existing Service Providers Performance (historical /current) Workload capacity Location In areas where potential gaps exist, SCE utilizes its vendor interest list to identify potential organizations to fill the void Select vendors that have demonstrated performance in effectively delivering services to low-income communities

9 9 Energy Savings Assistance Program Contractor Selection - SCG There are currently 44 contractors in SCG’s ESA Program that were responsible for treating a historic high 161,020 homes last year. SCG’s Contractor Network is diverse and comprised of CBOs, LIHEAP agencies, joint IOU contractors, certified DBEs, that provide a wide range of services from all areas of SCG’s geographically diverse service territory. SCG assesses program needs to determine if additional contractors are required. For example, six new contractors were added in 2010 as part of an RFQ/RFP process to assist in meeting the increasing goals in the program cycle. SCG has determined that it can meet the goals of the cycle with its current Contractor Network. There is no formal appeals process for bidders that are not selected. However, unsuccessful bidders can request a debrief on areas which may assist in strengthening their proposal in future solicitations.

10 10 Energy Savings Assistance Program Contractor Selection – SDG&E Currently 14 contractors participate in the ESA Program. In 2011, they treated 22,575 homes and exceeded goal. SDG&E’s contractors include certified DBE, LIHEAP agencies, and joint IOU contractors. SDG&E continually assesses program needs to determine if additional contractors are needed. In 2011, SDG&E added an HVAC contractor to support its northern region, in an effort to minimize its carbon footprint and improve service in that area. There is no formal appeals process for bidders that are not selected. However, unsuccessful bidders can request a debrief on areas which may assist in strengthening their proposal in future solicitations.


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