2. CALIFORNIA EMERGING TECHNOLOGY FUND Mission

3. CALIFORNIA EMERGING TECHNOLOGY FUND

4. 2015 Statewide Survey Results

5. Digital Divide is Greatest for the Disadvantaged 2015 Annual Survey Percentage of Californians with Broadband at Home  65% of Households Earning Less Than $20,000 a Year (16% by smart phone only – 35% not connected)  63% of Households with Spanish-Speakers (21% by smart phone only – 37% not connected)  59% of People with Disabilities (8% by smart phone only – 41% not connected)  57% of Adults Age 65 or Older – Seniors (1% by smart phone only – 43% not connected)  52% of Non-High School Graduates (18% by smart phone only – 48% not connected)

6. Preview of 2016 Annual Survey Progress and Remaining Challenges Broadband Adoptions for Low-Income Households Low-Income HouseholdComputing DeviceSmartphone OnlyTotal 2015 Annual Survey- Less Than $20,00049%16%65% $20,000 - $40,00066%10%76% 2016 Annual Survey Less Than $20,00043%25%68% $20,000 - $40,000064%19%83% Federal Poverty Level Less Than 138% FPL48%26%74% More Than 138% FPL80%9%89%

7. All Customers Online: Benefits To Utilities  Transaction costs for utility will decrease for billing and communications; smaller carbon footprint.  Low-income customers will have equal access to emergency notification and information.  Low-income customers will have equal access to products and services that require Internet access.  Low-income customers can use information from smart meters to manage their usage.  Low-income customers can pay bills online when cash is available without having to spend time and money to pay bills in person.

8. General Framework for Pilots Utility-CBO-CETF Partnership Agreement  Utility identifies CBO partner(s) to design pilot: CBOs experienced in outreach and adoptions.  Utility sends letters to low-income customers about available affordable offers (rolling distributions).  CETF trains CBO(s) on how to do adoption.  CBO(s) assist customers select an affordable offer, become digitally literate, and secure an appropriate computing device. Utility funds on performance.  Utility or CBO may involve a call center or provider.  Utility staff need not handle calls or be an expert on broadband adoption.

9. Affordable Broadband Offers Increasing Choices and FCC Lifeline  Basic Internet$72 Hot Spot, $10 per month No Eligibility Requirements  Comcast $10 per month ( Free Modem/Router) National School Lunch Program  AT&T $10 per month ( Free Modem Only) CalFresh Enrollment - $5 per month if only 5 Mbps Available  Frontier$13.99 per month with Lifeline subscription ( Free Modem/Router)  Charter $14.99 per month (Free Modem Only)

10. Update on Energy Utility Collaboration  SMUD-CFILC Partnership  90,000 letters: 4,055 contacts (4.5% response rate); 1,021 adoptions (25% of contacts).  SCE- CFILC Pilot  10,000 letters to PWD: 594 calls; 38 adoptions; 35 inquiries from currently unserved areas.  Follow up with Program Manager and SCE COO.  SDG&E Pilot Planning  LADWP Interest and Intent  PG&E and SCG To Be Engaged

11.  Utilities need encouragement, focus, and reinforcement.  CPUC Commission and staff need support.  Policymakers need understanding and education about the importance of getting all customers online.  Letter from LIOB  LIOB Workshop with IOUs  Briefings with Policymakers Low Income Oversight Board Voice and Leadership are Pivotal

12. CALIFORNIA EMERGING TECHNOLOGY FUND