Details for: PGE AL 4098-G_5544-E.pdf


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Erik Jacobson
Director
Regulatory Relations

Pacific Gas and Electric Company
77 Beale St., Mail Code B13U
P.O. Box 770000
San Francisco, CA 94177
Fax: 415-973-3582

May 10, 2019

Advice 4098-G/5544-E
(Pacific Gas and Electric Company ID U 39 M)

Public Utilities Commission of the State of California
Subject:

Notification of PG&E’s Contract Amendment for Statewide ME&O with
DDB, Inc to extend the contract through 2021 in Compliance with
Decision 19-01-005

Purpose
As ordered by the California Public Utilities Commission (CPUC or Commission) pursuant
to Ordering Paragraph 1 of Commission Decision 19-01-005, Pacific Gas and Electric
Company (“PG&E”) hereby submits this contract amendment to extend, until December
31, 2021, DDB San Francisco’s contract for the Statewide Marketing, Education, and
Outreach (ME&O) Energy Upgrade California program.
Background
Decision (D.)19-01-005, Ordering Paragraph 1, orders PG&E to amend, on behalf of
itself, Southern California Edison Company, San Diego Gas & Electric Company, and
Southern California Gas Company (together, “Utilities”), the Statewide ME&O contract
with DDB San Francisco within 90 days of the January 10, 2019 decision. On April 3,
2019, PG&E requested a 30-day extension to comply with Ordering Paragraph 1 of D.1901-005 and received approval of the extension on April 11, 2019. This advice letter is
submitted in compliance with Ordering Paragraph 1, confirming that PG&E has amended
the contract to terminate on December 31, 2021.
By adding twenty-seven additional months (October 2019 to December 2021) the
amendment provides funding to continue the Energy Upgrade California campaign
through calendar year 2021, in accordance with page 15 of the Decision. Per Ordering
Paragraph 2, the program budget extension is funded at current annual levels based on
the average monthly amount derived from the preexisting 12-month annual budget.
Although the contract amendment provides funding at the level ordered in D. 19-01-005,
DDB San Francisco has identified potential efficiencies, (estimated at approximately
$700,000), which DDB hopes can be achieved.





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Advice 4098-G/5544-E -2- May 10, 2019 Allocation among the Utilities will be according to the percentages approved in Decisions 19-01-005 and 19-01-007, as documented in Advice Letter 4019-G/5388-E and approved by the Commission’s Energy Division on October 30, 2018: 46.7425% for PG&E, 32.6825% for SCE, 12.4325% for SDG&E and 8.1425% for SoCalGas. In Decision 13-12-038, the Commission adopted a “RASCI” governance structure for the Statewide ME&O program. Under this structure, the Commission made itself responsible for the performance, deliverables, and enforcement of the program implementer’s obligations under the program and Program Agreement, including review and approval of all DDB invoices through the Commission’s Energy Division. The October 17, 2016 Agreement’s ME&O EUC Scope of Work (SOW) applies under this amendment and will be determined between the Commission and DDB. DDB’s compliance, performance and deliverables will be managed, reviewed, supervised and approved solely by the Commission through its Energy Division working directly with DDB. The Utilities and other stakeholders are allowed to provide input, advice, and collaboration under the RASCI governance structure. PG&E serves as fiscal manager of the contract, subject to the Commission’s approval of all DDB invoices through the Energy Division. Per Ordering Paragraph 7 of Decision 19-01-005, PG&E will continue to serve as the fiscal manager of the contract with DDB for the Statewide ME&O program, including payment of DDB invoices approved by the Commission through its Energy Division staff. This contract amendment includes revisions to DDB’s invoice submittal and the Energy Division staff process for approval of invoices and DDB deliverables, consistent with the Commission’s decisions including Decision 19-01-005. In compliance with Decision 19-01-005, PG&E submits the contract amendment and budget in this Tier 2 Advice Letter for the Commission’s review and approval. The contract amendment includes, in Attachment A, a budget to support the work for the Statewide ME&O program. This contract amendment essentially continues the scope of work for the Energy Upgrade California campaign contained in Attachment 1 to the October 17, 2016 agreement between DDB and PG&E. Consistent with the scope of Decision 19-01-005, it does not include any budget adjustments for work related to Residential Rate Reform Time-of-Use Outreach as authorized and described in D.17-12-023.1 Additionally, this contract does not include an extension of the Residential Rates budget, which is not included in the authorized extension of the Energy Upgrade California budget. If an extension of the contract for Residential Rates budget and scope of work for DDB is to be considered, then a Decision will need to be issued setting the scope of work, time period, budget levels, and authorization for the contract renewal, and to allow parties an opportunity to be heard on the elements of the proposed Residential Rate renewal. 1 Decision 17-12-023 authorized a specific budget up to a maximum of $31.7 million for Residential Rate Reform Outreach efforts on pages 21, 41, and Ordering Paragraph 6.
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Advice 4098-G/5544-E -3- May 10, 2019 PG&E will be submitting a supplemental to this Advice Letter once the contract amendment has been completely executed. Protests Anyone wishing to protest this filing may do so by letter sent via U.S. mail, facsimile or Email, no later than May 30, 2019, which is 20 days after the date of this filing. Protests must be submitted to: CPUC Energy Division ED Tariff Unit 505 Van Ness Avenue, 4th Floor San Francisco, California 94102 Facsimile: (415) 703-2200 E-mail: EDTariffUnit@cpuc.ca.gov Copies of protests also should be mailed to the attention of the Director, Energy Division, Room 4004, at the address shown above. The protest shall also be sent to PG&E either via E-mail or U.S. mail (and by facsimile, if possible) at the address shown below on the same date it is mailed or delivered to the Commission: Erik Jacobson Director, Regulatory Relations c/o Megan Lawson Pacific Gas and Electric Company 77 Beale Street, Mail Code B13U P.O. Box 770000 San Francisco, California 94177 Facsimile: (415) 973-3582 E-mail: PGETariffs@pge.com Any person (including individuals, groups, or organizations) may protest or respond to an advice letter (General Order 96-B, Section 7.4). The protest shall contain the following information: specification of the advice letter protested; grounds for the protest; supporting factual information or legal argument; name, telephone number, postal address, and (where appropriate) e-mail address of the protestant; and statement that the protest was sent to the utility no later than the day on which the protest was submitted to the reviewing Industry Division (General Order 96-B, Section 3.11).
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Advice 4098-G/5544-E -4- May 10, 2019 Effective Date Pursuant to General Order 96-B, Energy Industry Rule 5.2, this advice letter is submitted with a Tier 2 designation. D. 19-01-005, Ordering Paragraph 1 specify a Tier 1 advice letter, but given that PG&E made substantial changes to the agreement, PG&E is submitting a Tier 2 advice letter to the Commission. The advice letter will become effective June 9, 2019 which is 30 calendar days after the date of submittal. Notice In accordance with General Order 96-B, Section IV, a copy of this advice letter is being sent electronically and via U.S. mail to parties shown on the attached list and the parties on the service list for A.12-08-007. Address changes to the General Order 96-B service list should be directed to PG&E at email address PGETariffs@pge.com. For changes to any other service list, please contact the Commission’s Process Office at (415) 703-2021 or at Process_Office@cpuc.ca.gov. Send all electronic approvals to PGETariffs@pge.com. Advice letter filings can also be accessed electronically at: http://www.pge.com/tariffs/. /S/ Erik Jacobson Director, Regulatory Relations Attachments cc: Service List A.12-08-007
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ADVICE LETTER SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/CPUC Utility No.: Pacific Gas and Electric Company (ID U39M) Utility type: ✔ ELC PLC ELC = Electric PLC = Pipeline ✔ GAS WATER HEAT Contact Person: Yvonne Yang Phone #: (415)973-2094 E-mail: PGETariffs@pge.com E-mail Disposition Notice to: Yvonne.Yang@pge.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 2 Advice Letter (AL) #: 4098-G/5544-E Subject of AL: Notification of PG&E’s Contract Amendment for Statewide ME&O with DDB, Inc to extend the contract through 2021 in Compliance with Decision 19-01-005 Keywords (choose from CPUC listing): Compliance AL Type: Monthly Quarterly Annual ✔ One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: D.19-01-005 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: No Summarize differences between the AL and the prior withdrawn or rejected AL: Yes Yes ✔ No ✔ No 6/9/19 No. of tariff sheets: N/A Estimated system annual revenue effect (%): N/A Estimated system average rate effect (%): N/A When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: N/A Service affected and changes proposed1: N/A Pending advice letters that revise the same tariff sheets: N/A 1 Discuss in AL if more space is needed. Clear Form
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Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this submittal, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 Email: EDTariffUnit@cpuc.ca.gov Name: Erik Jacobson, c/o Megan Lawson Title: Director, Regulatory Relations Utility Name: Pacific Gas and Electric Company Address: 77 Beale Street, Mail Code B13U City: San Francisco, CA 94177 Zip: 94177 State: California Telephone (xxx) xxx-xxxx: (415)973-2093 Facsimile (xxx) xxx-xxxx: (415)973-3582 Email: PGETariffs@pge.com Name: Title: Utility Name: Address: City: State: District of Columbia Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx: Email: Zip: Clear Form
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Advice 4098-G/5544-E May 10, 2019 Attachment A Fourth Amendment to the Agreement between Pacific Gas and Electric Company and DDB San Francisco
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FOURTH AMENDMENT TO THE AGREEMENT BETWEEN PACIFIC GAS AND ELECTRIC COMPANY AND DDB SAN FRANCISCO This Fourth Amendment to the October 17, 2016, Statewide Marketing Education and Outreach (Statewide) Program Agreement (Program Agreement) between Pacific Gas and Electric Company (PG&E) and DDB San Francisco, a division of DDB Worldwide Communications Group Inc. ("DDB-San Francisco”, “Contractor” or “Implementer "), is made on May __, 2019 (the “Effective Date”), and is subject to the condition subsequent of approval by the California Public Utilities Commission (“CPUC” or “Commission”) of the Advice Letter filed by PG&E on or about May 10, 2019. CPUC D.19-01-005 orders PG&E to extend the Energy Efficiency Program Agreement for the Energy Upgrade California (EUC) Campaign with DDB San Francisco for an additional 27 months, from October 1, 2019 through December 31, 2021, (the Extension Period). Under the Program Agreement and this Fourth Amendment thereto, PG&E serves as fiscal manager of the Program and is not responsible for the administration, performance or deliverables under the Statement of Work (SOW) for the Program Agreement. PG&E is responsible for the processing and payment of invoices submitted to the California Public Utilities Commission (CPUC) under the Program Agreement and approved by the CPUC for payment under the Program Agreement. During the Extension Period the CPUC will continue to direct, manage, supervise, and approve the performance obligations, deliverables, invoices and payments under the Program Agreement as required by D.16-03-029, D.16-09-020 and D.19-01-005, provided, however, that the CPUC’s involvement does not otherwise alleviate PG&E of its obligations under the Program Agreement. The CPUC in D.19-01-005 also ordered additional funding for the Statewide ME&O Program to support the EUC Campaign (ME&O EUC Budget) during the Extension Period. Pursuant to such CPUC decisions and the Program Agreement, Southern California Edison Company (SCE), Southern California Gas Company (SoCalGas) and San Diego Gas & Electric Company (SDG&E) are responsible for reimbursing PG&E for their allocated share of the costs of the Program Agreement and are intended third-party beneficiaries of the Program Agreement and all amendments thereto consistent with a joint funding agreement entered into among PG&E, Southern California Edison Company, Southern California Gas Company, and San Diego Gas & Electric Company (together, “Utilities)”. All terms defined in the Program Agreement shall have the same meaning in this Fourth Amendment, unless otherwise stated. WHEREAS: A. CPUC D.12-05-025, D.13-12-038, and D.16-09-020 provide the strategy and development requirements for the Statewide ME&O Program for the EUC Campaign. D. 13-12-038 outlines the Statewide ME&O Program for the EUC Campaign governance structure and funding, and specifically ordered that PG&E serve as the fiscal agent. CPUC is responsible for all other performance obligations of Implementer in the SOW and as the Commission directs pursuant to D.12-05-025, D.13-12-038 and D.16-09-020 and remains responsible for all other obligations to DDB San Francisco under the Program Agreement. B. Pursuant to D.16-09-020, PG&E and DDB San Francisco executed the Program Agreement for DDB San Francisco’s services as implementer of the Commission’s EUC program, on October 17, 2016. PG&E submitted the Agreement, in the amount of with an Attachment #1 Scope of Work for the Statewide ME&O Program for the EUC Campaign - 1-
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(ME&O EUC-SOW) to the CPUC Energy Division (ED) for approval on October 17, 2016. The Program Agreement was approved by the CPUC through its Energy Division on June 12, 2017 and sets forth the terms, conditions and obligations of each party as it applies to this Amendment. B. Program Agreement Amendment #1 affirmed that subject to the applicable third-party rights, the investor-owned utilities (IOUs) shall own the deliverables produced under the Program Agreement and granted the CPUC unrestricted access and use rights to these deliverables for governmental and regulatory purposes. C. Program Agreement Amendment #2 expanded DDB San Francisco’s services to include producing a Deliverable 1 for the Strategy and Content Development Work for the Statewide ME&O Residential Rate Reform Program (RRR Work). Amendment #2 also added funding in the amount of to complete this Deliverable 1 per Commission D.1712-023. D. Program Agreement Amendment #3, in the amount of includes a Deliverable 2 and Deliverable 3 to be added to the RRR Work authorized in the Amendment #2 with a cap amount of based upon DDB San Francisco’s RRR Work through September 30, 2019 as provided in D. 17-12-023. E. D. 19-01-005 orders i) extension of the Agreement and its ME&O EUC SOW for DDB to serve as implementer until December 31, 2021, and ii) the ME&O EUC Budget for the Extension Period to remain at the current annual level plus an additional three months in 2021 (October, November, and December), calculated at the monthly amount derived from the 12-month annual ME&O EUC Budget during the Extension Period, and iii) allocation among the IOUs of the ME&O EUC Budget used during the Extension Period according to the percentages approved in Decision 19-01-007 from PG&E in Advice Letter 4019-G/5388-E and approved by the Commission’s Energy Division on October 30, 2018: 46.7425% for PG&E, 32.6825% for SCE, 12.4325% for SDG&E and 8.1425% for SoCalGas. Therefore, the Parties agree as follows: 1. The Program Agreement’s Extension Period is from October 1, 2019 until December 31, 2021. 2. The total compensation to DDB for the Extension Period for Energy Efficiency programs is not to exceed This budget reflects DDB’s annual Energy Efficiency EUC funding under the existing agreement, including funding for the months of October, November, and December 2021. 3. The EUC Energy Efficiency ME&O program budget of for DDB-San Francisco (during the Extension Period, for ED for evaluation, measurement and verification, and for the Utilities for investor-owned utility administration) for the 27-month extension will continue to be allocated functionally according to the percentages adopted in Decision 13-12-038: marketing (44%), education (17%), outreach (21%), research (4%), evaluation, measurement and verification (4%), statewide implementer administrative expenses (7%), and investor-owned utility administrative expenses (3%). - 2-
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4. Section 3.0 of the Agreement’s Billing and Payment Procedures are modified as set forth in Attachment #1 to this Fourth Amendment and both are hereby incorporated by reference and made part of this Fourth Amendment. 5. The October 17, 2016 Agreement’s ME&O EUC SOW i) shall continue to apply for the original term period, through September 31, 2019, and ii) shall apply during the Extension Period except for provisions expressly modified by this Fourth Amendment. Implementer’s compliance, performance and deliverables under the ME&O EUC SOW will be managed, reviewed, supervised and approved solely by the CPUC through its Energy Division working directly with DDB San Francisco. In the event the CPUC and DDB San Francisco require any modifications to the current ME&O EUC SOW and before these changes occur, the CPUC must approve and order these specific SOW modifications in writing to be incorporated into the Program Agreement by way of an amendment. Any such modifications to the current ME&O EUC SOW shall not increase the existing ME&O EUC Budget or the ME&O EUC Budget authorized for the Extension Period, unless expressly approved by order of the CPUC. 6. The current ME&O EUC SOW is expressly modified to incorporate all requirements ordered by CPUC D.19-01-007, including without limitation that DDB San Francisco in the Joint Consumer Action Plans required to filed and complied with under the Program Agreement will include metrics that align with the actual or anticipated metrics for the TOU campaign adopted in R.12-06-013. (D.19-01-007, Ordering Paragraph 4). 7. Unless expressly modified by this Fourth Amendment, the provisions of the Program Agreement and the first, second and third Amendments, remain in full force and effect. 8. This Fourth Amendment will be submitted as a Tier 2 Advice Letter by PG&E to the CPUC, and the effectiveness of the Fourth Amendment is subject to the express condition subsequent of approval of the Fourth Amendment by the CPUC. IN WITNESS WHEREOF, this Fourth Amendment has been duly signed by the duly authorized representatives of the Parties hereto as of the Effective Date. Pacific Gas and Electric Company DDB San Francisco, a division of DDB Worldwide Communications Group Inc. By: By: Printed: __________________________ Printed: _______________________ Title: Title: Date: _____________________________ Date: __________________________ - 3-
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ATTACHMENT #1 MODIFICATION TO SECTION 3.0 OF THE AGREEMENT BILLING AND PAYMENT TERMS Section 3.1.8 in Section 3.0 Billing and Payment Terms in the Program Agreement’s General Conditions is modified as follows: 3.1.1 INVOICE SUBMITTAL INSTRUCTIONS: Contractor shall submit a monthly invoice to designated staff at both the California Public Utilities Commission (CPUC) (currently Daisy Yee and Stephanie Green) and PG&E (currently James Forcier) for compensation actually earned in the current calendar month on the fifteenth and last days of the month, or the next business day thereafter if the fifteenth or last day falls on a weekend or state holiday. Each master and supporting invoice shall be assembled such that included supporting invoices and other documentation follows the order listed on the invoice, with the exception of social media backup which shall be first. Master invoices shall specify the deliverable(s) which have been reached or completed with the invoiced services, and payment of invoices will be subject to prior documented CPUC approval of the deliverable(s) referenced in the invoice. The Contractor shall include the Contract number and, if applicable, the Contract Work Authorization number, on the master invoice. The PDF of each invoice shall be labeled externally with the invoice date, program, FEE or OOP designation, and invoice number. Submissions containing multiple invoices will have all invoice numbers listed externally. Energy Division approval messages shall be externally labeled with the same date as the approved invoices. 3.1.1. (a) Monthly Invoice Posting Requirement. In accordance with the Attachment #1 ME&O EUC SOW to the Program Agreement dated October 17, 2016, under Deliverable section 5.0 subheading Annual Joint Consumer Action Plans Task 6 Regulatory Compliance requirements, as an express condition of the processing of any invoices under the Program Agreement, copies of Contractor’s monthly invoices for its agency fees and production costs approved by the Commission shall be posted by Contractor onto a public website and retained as PG&E Contractor Documents in accordance with the Document Retention and Production Requirement provisions in the Agreement’s General Conditions. No later than sixty (60) days after the effective date of this Fourth Amendment to the Program Agreement, Contractor agrees to demonstrate compliance with this provision of the Program Agreement by publishing, serving on the appropriate CPUC service lists and providing a public link and any relevant information regarding how to use and access the public website which Contractor shall operate and maintain in compliance with the Program Agreement. Contractor further agrees that previous CPUC Agreement invoices approved prior to the effective date of the Fourth Amendment to the Program Agreement shall be posted to the public website no later than sixty (60) days following the effective date of this Fourth Amendment. Section 3.1.7 in Section 3.0 Billing and Payment Terms in the Program Agreement’s General Conditions is inserted as follows: - 4-
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3.1.7 DIRECT PAYMENT OF CONTRACTOR'S VENDORS: In the event Contractor’: advertising department uses a vendor that will not accept payment by Contractor, but rather requires payment be made directly by PG&E for Contractorvdeveloped advertising costs (such as Facebook, lnstagram or other) and the CPUC through its ED agrees and directs PG&E in writing to pay such vendors directly, such costs are inclusive in the total authorized applicable budget for the existing ME&O EUC Budget or the ME&O EUC Budget authorized for the Extension Period. When direct payment to contractor's vendor is necessitated, it must be approved in advance through the Commission's Energy Division approval of the specific payment amounts on the contractors’ master invoices priorto payment to the contractor's vendor. Budget for Extension Period The total budget available to the lmplementer, overthe 27-month term ofthe Extension Period, is ‘The spending allocations within that budget, as ordered by the Commission, are set forth below. Any change that lmplementer proposes to make, from one budget category to another, that exceeds shall require consultation with, and approval by, the utilities and Energy Division staff. Marketing Education Advertising Earned and Social Media Promotional Calendar and Co-op Marketing Website Digital Marketing Mobile Outreach and Education Outreach* Retail Intercept Outreach and Education Strategic Partnerships and Sponsorships Youth Education Outreach Community-based Social Marketing Research Research (small business, messaging, other) Administrative Expenses lmplementer Administrative Expenses Total Extension Period Term October 1, 2019 December 31, 2021
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PG&E Gas and Electric Advice Filing List General Order 96-B, Section IV AT&T Albion Power Company Alcantar & Kahl LLP Alta Power Group, LLC Anderson & Poole Atlas ReFuel BART Barkovich & Yap, Inc. P.C. CalCom Solar California Cotton Ginners & Growers Assn California Energy Commission California Public Utilities Commission California State Association of Counties Calpine Cameron-Daniel, P.C. Casner, Steve Cenergy Power Center for Biological Diversity City of Palo Alto City of San Jose Clean Power Research Coast Economic Consulting Commercial Energy County of Tehama - Department of Public Works Crossborder Energy Crown Road Energy, LLC Davis Wright Tremaine LLP Day Carter Murphy Dept of General Services Don Pickett & Associates, Inc. Douglass & Liddell Downey & Brand East Bay Community Energy Ellison Schneider & Harris LLP Energy Management Service Evaluation + Strategy for Social Innovation GenOn Energy, Inc. Goodin, MacBride, Squeri, Schlotz & Ritchie Green Charge Networks Green Power Institute Hanna & Morton ICF International Power Technology Intestate Gas Services, Inc. Kelly Group Ken Bohn Consulting Keyes & Fox LLP Leviton Manufacturing Co., Inc. Linde Los Angeles County Integrated Waste Management Task Force Los Angeles Dept of Water & Power MRW & Associates Manatt Phelps Phillips Marin Energy Authority McKenzie & Associates Modesto Irrigation District Morgan Stanley NLine Energy, Inc. NRG Solar Office of Ratepayer Advocates OnGrid Solar Pacific Gas and Electric Company Pioneer Community Energy Praxair Regulatory & Cogeneration Service, Inc. SCD Energy Solutions SCE SDG&E and SoCalGas SPURR San Francisco Water Power and Sewer Seattle City Light Sempra Utilities Southern California Edison Company Southern California Gas Company Spark Energy Sun Light & Power Sunshine Design Tecogen, Inc. TerraVerde Renewable Partners Tiger Natural Gas, Inc. TransCanada Troutman Sanders LLP Utility Cost Management Utility Power Solutions Utility Specialists Verizon Water and Energy Consulting Wellhead Electric Company Western Manufactured Housing Communities Association (WMA) Yep Energy
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