general order (go) 156 report · 2019-04-29 · 1 general order (go) 156 report october 5, 2017...
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General Order (GO) 156 Report
October 5, 2017
Stephanie Green Supplier Diversity Manager
California Public Utilities Commission
Year 2016 Utilities Procurement of Goods, Services and Fuel from Women-, Minority-,
Disabled Veteran-, and LGBT-owned Business Enterprises
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• Describes utilities progress in procuring from women-, minority-, disabled veteran-, and LGBT-owned business enterprises (WMDVLGBTBEs) based on a 21.5% goal
• 15 percent (minority-owned), 5 percent (women-owned), and 1.5 percent (disabled veteran-owned)
• No goal for LGBT-owned
• 31 utilities filed their annual GO 156 report to the CPUC
GO 156 Report to the Legislature
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2016 Utilities Diverse Procurement Overview
Total Diverse Spend
$9.37 billion (30.92%)
8(a)
$1.01 million (0.003%)
LGBTBE
$36.6 million (0.12%)
MBE
$6.13 billion
(20.23%)
WBE
$2.77 billion (9.13%)
DVBE
$0.43 billion (1.43%)
Subcontracting
$1.96 billion
(6.5%)
5,083 total direct diverse suppliers
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2010-2016 Utilities Diverse Procurement Spend and Percentage
$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
$8,000,000,000
$9,000,000,000
$10,000,000,000
2010 2011 2012 2013 2014 2015 2016
MBE WBE
DVBE LGBTBE
8(a) TOTAL DIVERSE SPEND
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
2010 2011 2012 2013 2014 2015 2016
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2010-2016 Utilities Diverse Subcontracting Spend and Percentage
$1.28
$2.21
$2.39
$2.27
$2.51
$2.30
$1.96
2010 2011 2012 2013 2014 2015 2016
($ in billions)
5.7%
9.2% 9.8%
9.2% 9.5%
8.4%
6.5%
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2016 Top Performers
61.64%
44.74% 44.37% 43.03% 37.37% 37.09% 34.96% 33.21%
SouthwestGas
SCE PG&E SDG&E Sprint Suburban SoCalGas LibertyUtilities-
ParkWater
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Utilities Who Met All Three Goals in 2016 15% Minority 5% Women 1.5% DVBE
AT&T California 17.33% 12.27% 1.97% Golden State Water 16.64% 6.61% 2.96% PG&E 28.45% 12.41% 3.48% SDG&E 26.85% 13.43% 2.69% SCE 26.39% 16.81% 1.50% SoCalGas 19.41% 13.84% 1.71%
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Overview of 2016 Fuel Procurement
2016 2015
PG&E $66.63 million (11.15%) $114.97 million (14.41%)
SCE $1.51 million (100%) $0.62 million (100%)
SoCalGas $151.17 million (14.65%) $207.91 million (19.07%)
Southwest Gas $4.42 million (13.07%) $1.86 million (5.45%)
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Overview of 2016 Power Procurement
2016 2015
PG&E $40.59 million (1.08 %) $118.54 million (3%)
SDG&E $72.63 million (6.43%) $104.68 million (9.12%)
SCE $125.01 million (3.84%) $287.41 million (8.67%)
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Challenges in Fuel and Power Procurement Cited By Utilities
• Market volatility • Capital and credit obligations
• Declining demand
• Phasing out of Financial institutions from Fund Transfer Agent
Agreements (FTAA)
• Establishment of Community Choice Aggregation (CCA)
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Staff conducted a survey of suppliers in the Clearinghouse database in 2016:
• 43.5% were awarded 1-5 utility contracts in 2016
• 69% had utility contract under $500,000 in 2016
Value of Supplier Diversity
0 1 to 5 6 to 10 11 to 14 15+
47.2% 43.5%
3.6% 0.0%
5.7%
Number of Utility Contracts in 2016
0
Under $50,000
$50,000 – $99,999
$100,000 – $499,999
$500,000 – $999,999
$1 million – $4.9 million
$5 million – $9.9 million
$10 million +
26.8%
27.9% 7.9%
13.2%
5.8%
13.2%
1.1%
4.2%
Total Dollar Value of Utility Contracts Awarded in 2016
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Employment in 2016: Full Time and Part Time
Value of Supplier Diversity
34.2%
51.3%
6.7%
4.7%
1.0%
0.5%
1.6%
51.6%
43.2%
1.0%
3.1%
0.0%
0.0%
1.0%
0
1 to 10
11 to 19
20 to 29
30 to 39
40 to 49
50+
Part Time Full Time
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Value of Supplier Diversity
Energy 53%
Water 26%
Communications 21%
Type of Utility work with
Always 2%
Often 20%
Sometimes 34%
Rarely 23%
Never 21%
Subcontract to other diverse businesses
Yes 12%
No 88%
Participated in Utilities Capacity building/Technical assistance program
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• Senate Bill (SB) 350 required the California Energy Commission to complete a
study on various topics one of which is on the barriers to contracting opportunities for local small businesses in disadvantaged communities
• Disadvantaged Communities refer to areas throughout California which suffer from a combination of economic, health, and environmental burdens such as poverty, high unemployment, health conditions, pollution, and hazardous wastes (SB 535)
• CPUC assessed utilities diverse supplier data:
• 27 utilities contracted in total with 2,765 diverse businesses with addresses in California of which 29.04% are located in a disadvantaged community
• Out of 5,202 California located businesses in the Supplier Clearinghouse database , 30.28% are in a disadvantaged community
Diverse Businesses in Disadvantaged Communities
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Utilities Diverse Suppliers in Disadvantaged Communities
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Major Accomplishments
• Implementation of SCH logo policy
• Participated in outreach and training events throughout California
• Implementation of NAICS codes in directory to assist JU sourcing efforts
• Multiple technology enhancements and process improvements implemented
• Extensive reverification outreach
• Increased the number of applications coming into CHS from comparable
verification agencies (WBENC, NMSDC, NGLCC)
• Increased Clearinghouse staff
• Provided training to JU members and applicant firms
Supplier Clearinghouse
16
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108
1,822
2,757 2,534
1,246
46
LGBT DVBE WBE MBE WMBE SBA 8(a)
Certification Types
Supplier Clearinghouse
(CURRENT AS OF 6/30/17)
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Supplier Clearinghouse
Male 39%
Female 61%
Gender
NMSDC 44%
WBENC & NMSDC
7%
NGLCC 7%
WBENC 35%
SBA 8(a) 7%
Reciprocal
20%
13%
22%
3%
42%
Asian Pacific American
African American
Hispanic American
Native American
White
Ethnicity
17%
9%
9%
15%
50%
$10 million and above
$5 million < $10 million
$2.5 million < $5…
$1 million < $2.5…
< $1 million
Business Size
18
(CURRENT AS OF 6/30/17)
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Certified Firms by SIC Division
Supplier Clearinghouse
19 13%
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
2%
2%
2%
2%
2%
3%
3%
3%
4%
4%
6%
9%
17%
18%
Other Classifications
65 - Real Estate
38 - Measuring, Analyzing, And Controlling Instruments; Photographic, Medical And…
25 - Furniture And Fixtures
76 - Miscellaneous Repair Services
47 - Transportation Services
23 - Apparel And Other Finished Products Made From Fabrics And Similar Materials
39 - Miscellaneous Manufacturing Industries
82 - Educational Services
48 - Communications
81 - Legal Services
78 - Motion Pictures
51 - Wholesale Trade-non-durable Goods
27 - Printing, Publishing, And Allied Industries
42 - Motor Freight Transportation and Warehousing
34 - Fabricated Metal Products, Except Machinery and Transportation Equipment
49 - Electric, Gas, And Sanitary Services
35 - Industrial and Commercial Machinery And Computer Equipment
89 - Miscellaneous Services
36 - Electronic And Other Electrical Equipment And Components, Except Computer…
15 - Building Construction General Contractors And Operative Builders
16 - Heavy Construction Other Than Building Construction Contractors
50 - Wholesale Trade-durable Goods
17 - Construction Special Trade Contractors
87 - Engineering, Accounting Research Management, And Related Services
73 - Business Services
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Additional Information July 1, 2016 – June 30, 2017
• 2,629 applications processed
• 211 site visits conducted
• 83 denials
• 29 applications protested to the Clearinghouse
• 4 denied applications protested and overturned
Supplier Clearinghouse
20
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Update/Enhance
• Evaluate ways to keep the program successful given new market entrants and dispersed customer dollars; such as get other companies to participate in the program (i.e., CCAs, energy storage, railroads/light rail, etc.)
• Explore the possibility of including other disadvantaged groups
• Identify approaches to best utilize the Utility Subcontracting Program
• Collaborate with utilities to identify and find solutions for challenges and barriers that impacts or may impact the program
Quantify • Continue to quantify and capture the socioeconomic values of the program to utilities, businesses,
communities, etc.
Outreach
• Advocate for WMDVLGBTBEs inclusion in utilities procurement activities
• Increase the number of qualified certified WMDVLGBTBEs
• Strengthen partnerships with WMDVLGBTBEs organizations and communities
GO 156 – Next Steps
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Thank You!