1 Proposed IOU Statewide Implementation Plan of Continuous Energy Improvement (CEI) June 18, 2009 Angie Ong-Carrillo

2 Continuous Energy Improvement Applies the principles of well known business continuous improvement programs. Customer engagement in long-term, strategic energy planning. Applies the top-down approach that proposes to transform the market and reduce energy intensity and GHG emissions. Leverages IOU’s IDSM program offerings in implementation. A cost effective approach.

3 Continuous Energy Improvement (CEI) Comprehensive energy management approach that has corporate and facilities-based components

4 Assess Performance Determine customer’s energy management practices, and energy use baselines (at site and equipment levels). Key Activities Customer Energy Management Practices Assessment Facility energy benchmarking, base-lining, measurement Audits and system assessments Review of existing audits

5 Make a Commitment Gain customer commitment to CEI at corporate and facilities levels Key Activities Present Strategic Management Documents and GHG Inventory Results Commit to Energy and GHG Mitigation Goals Identify Environmental Facilities Champion & Energy Team Executive to Executive program (if appropriate)

6 Create Action Plan & KPIs Create action plan based on key performance indicators (KPIs) to establish goals and drive towards continuous improvement Key Activities Gap analysis and customer internal drivers guide Critical Action Items and Priorities Develop High-Level and System-Level Key Performance Indicator (KPIs) baselines Set short term and long term goals Identify Energy Efficiency Projects Document Action plan into IOU’s customer management system

7 Implement Plan Execute the plan, drive towards goals. Initiate work with customer on energy teams, champions and culture change. Key Activities Finalize Energy Projects IOU IDSM staff support project implementation Begin Measuring Project Impacts on KPIs Develop Employee Energy & GHG Awareness Plan Hold Employee Energy & GHG Awareness Kick-Off Event

8 Evaluate Progress Evaluate progress on plan goals Key Activities Evaluate energy performance Re-evaluate Energy Management Practices Identify additional Training Opportunities & Provide Recommendations

9 Modify Plan Correct course and keep momentum Key Activities Reassess Goals Make Modifications to Action Plan and Strategies as Needed

10 Build Awareness & Reward Achievement Empower ownership, build morale, and recognize actions Key Activities Employee Energy Awareness Program and Posters Integrate into corporate incentive program

11 Outcomes In the implementation stage, IOUs will partner with customer to identify technical support, utility and non-utility resources to leverage IOU’s program offerings (integrated delivery) and act in accordance with the loading order. Assist customer to manage the short term projects and engage in long term strategic energy management. Performance tracking for AB32 and Energy Efficiency efforts. Meet the long term objectives of California Energy Efficiency Strategic plan (CEESP)