1. 1 CARE California Alternate Rates for Energy Enrollment Presentation to the Low Income Oversight Board June 25, 2009

2. 2 Monitor CARE Enrollment To Assure 90% Goal by 2011 Met CARE is a key tool for customers having difficulty managing energy bills In November 2008, the Commission required utilities to strive to enroll 90% of eligible customers by 2011 In March 2009, DRA wrote to the Low Income Oversight Board, asking LIOB to monitor if utilities are on track to meet this goal This presentation checks utility progress against CPUC goals

3. 3 Enrollment Historically Far From Goal November 2008: CPUC lowered target from 100% to 90%, based on the CA Low-Income Needs Assessment determination that roughly 10% of eligible customers are unwilling to participate (1) (1) D.02-07-033 p.4, D.08-11-031, Ordering Paragraph 89 (2) Despite having enrolled 150,390 customers January-April 2008, participation remains at 80% because 161,600 more households are estimated to be eligible for 2009 reporting purposes CARE Participation Rate (2) 200120022003200420052006200720082009 (April) 65%77%75%79%68%74%73%80%

4. 4 Despite Steady Net Enrollments Participation Has Never Surpassed 80%

5. 5 Net Enrollment Must Continue Increasing At Recent Pace In Order To Reach 90% 4.1 million customers enrolled April 2009 90% in 2009 = 4.6 million customers (1) 90% in 2011 = 4.9 million customers (2) Looking back at past 12 months, IOUs increased CARE participation at the rate of 24,000 new customers monthly If the IOUs continue adding CARE customers at this rate, reported enrollment will reach 84% by end 2009, 86% by 2010, and 89% by end 2011 (1) According to Utility reports of April 2009 (2) Assumption that CARE eligible population increase in 2008 (3.36%) continues for next 2 years

6. 6 Are We Confident Recent Pace Will Continue?

7. 7 Positive Net Enrollment Requires Many More New Enrollments To Combat Attrition Net Enrollments = New Enrollments - Attrition Net Enrollments = New (Auto enrollment) (virtually no customer action required) New (from Outreach efforts) - Attrition Jan ‘0921,01113,88076,39069,259 Feb ‘0925,8299,86967,00551,045 Mar ‘0946,97917,006107,86577,892 Apr ‘0956,57123,53097,55764,516

8. 8 Utility Challenge Is Significant CARE customers to enroll in order to meet 90% by 2011 PGESDGESCESCGTotal 292,27975,555184,386235,707787,927

9. 9 Monitor Progress Of All 3 Elements Contributing To Net Enrollment New Enrollments Via Automatic Methods Inter-Utility Data Exchanges Data Exchanges between Utility and other organizations serving low-income (LIHEAP, for example) 1-E App Others New Enrollments Via Outreach Customer Service Representatives Bill Inserts, Direct Mail Online Applications Referrals from Utility Employees Third-Party Enrollment (Capitation) Others Attrition Close account/move out of service area Do not recertify to stay in the program Do not meet income guidelines for program (fail verification)

10. 10 Is Outreach Becoming More Effective? IOUs budgeted $13.8 million on CARE outreach in 2009 (36% budget increase over 2008) Hard to see upward trend in new enrollments via outreach

11. 11 Regarding Outreach, DRA Recommends: Easier Enrollment Fully deploy one-step, over-the-phone enrollment Highlight “categorical” qualification option which only requires participation in another assistance program Capitalize on live telephone conversations with customers Customer Service Representatives should verbally inform customers of CARE program during customer-initiated and IOU- initiated calls Track consumer response to offers. Consider an offer accomplished only after customer enrolls or explicitly opts out of program (do not assume non-response to be a decline)

12. 12 THANK YOU