*LIEE Program Budget and Units2009 - 2011

Chart1

11086462572

14354076873

14587478256

Homes Treated

Funding (,000)

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11086462572

14354076873

14587478256

Homes Treated

Funding (,000)

Sheet1

Program YearHomes TreatedFundingFunding (,000)

2009110,864$62,572

2010143,540$76,873

2011145,874$78,256

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Homes Treated

Funding (,000)

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Funding

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*LIEE Through December 2009

ActivityBudget62,571,908Homes Treated75,418Expenditures$49,468,562Homes Goal110,864Percent79%Percent68%

Measure InstallationsWater Heating64,098RefrigeratorsN/AEnvelope & Air Sealing60,259LightingN/AHeating5,561CoolingN/A

*Other LIEE Figures2,119 (2.5%) of all LIEE participants in 2009 were identified as being disabled.

3,125 (3.7%) of all homes served in 2009 were considered go-backs.

*LIEE Outreach/Ethnic MediaOutreach

Targeted Direct Mail/Bill InsertsCARE customers with higher than average annual therm usage.Customers identified in the PRIZM code segment as Challenged householdsSenior citizens on the CARE program.Two separate bill inserts in English/Spanish targeting CARE customers throughout SoCalGas territory. These bill inserts targeted 1.3 million low income customers.

AVM Campaign Contacted CARE PEV customers for LIEE Enrollment. Targeted English and Spanish CARE customers in low-income zip codes

Web Activities Launched an English electronic LIEE request form on the website to enroll LIEE customers Posted LIEE service video on SoCalGas in both English and Spanish Launched and email campaign to 200,000 customers enrolled in My Account

SoCalGas launched a six week LIEE advertising campaignDesigned to draw customers to the LIEE web site or to call toll-freeIncluded in bus shelter and interior bus cards , and ads in targeted community publications

*LIEE Outreach/Ethnic MediaEthnic Media1st Quarter - Economic Hardship Campaign The campaign theme was designed to help families through tough times by offering supportive services on CARE, LIEE, energy efficiency and other SoCalGas programs. African-American publications estimated impression totaled 188,600 Hispanic publications estimated impressions totaled 559,500General publications estimated impressions totaled 3,675,761Asian publications estimated impression totaled 157,5022nd Quarter - WeCARE CampaignWeCARE was a weeklong series of customer resource fairs held the week of April 20-25 in partnership with the CPUC. The fairs featured information about customer assistance programs, such as CARE rate discount for income-qualified families and free home improvement services to qualified customers as well. Special attention was given to newly unemployed customers.African-American publications estimated impression totaled 327,000 Hispanic publications estimated impressions totaled 1,282,348General publications estimated impressions totaled 184,2043rd Quarter - LIEE CampaignDesigned to draw customers to the LIEE web site or call toll-free. Focused on out of the home which included bus shelters, interior bus cards, cash jackets at check-cashing locations and print ads in community publications to reach the following ethnic markets.African-American publications estimated impression totaled 927,591 Hispanic publications estimated impressions totaled 52,500General publications estimated impressions totaled 842,4934th Quarter Winter Customer Assistance CampaignTo help customers save energy and money, SoCalGas launched a winter campaign in Dec to promote no-cost home improvements. Campaign elements included radio traffic reports, local TV news, community print newspaper and included added-value online banner ads to drive customers to www.socalgas.com/winter or www.socalgas.com/sp/invierno.African-American publications estimated impression totaled 188,600 Hispanic publications estimated impressions totaled 559,500General publications estimated impressions totaled 3,675,761Asian publications estimated impression totaled 157,502

*CAREProcess Improvements and Program Highlights 2009Expanded leverage opportunitiesNew data sharing with LADWP and Imperial Irrigation District, in addition to automatic enrolments of LIHEAP, GAF, DAP, IOUs low-income programs participantsImplemented enhancements to reduce participation barriersRecertification data sharing with SCECategorical Eligibility expansionMaximized enrollment process automationFully automated online applications and phone enrollments92% of CARE applications received were processed following best practicesPromoted paperless applications Web enrollments and recertification Phone enrollment and phone recertification

CARE PenetrationParticipantsEstimated Eligible ParticipantsYear-to-Date Penetration Rate1,560,5431,772,01588.1%

*CARE Outreach/Ethnic MediaOutreach

The Gas Companys CARE outreach plan consisted of the following outreach tactics that were strategically implemented throughout the 2009 PY:Direct Mail: Three Bi-lingual (Eng/Sp) targeted campaigns (944k pieces total) rotated throughout the service area designed for long-term low income customers and the recently unemployed/furloughed.Bill Inserts: Four separate and staggered bill insert campaigns sent to all residential non-CARE enrolled customers. One of these campaigns was specifically designed for Expansion customers.AVM: Monthly automated voice messaging telephone campaigns used both for direct CARE enrollment and recertification. Twelve individual targeted campaigns incorporating over 1m automated phone calls.E-mail: Monthly electronic communications consisting of e-newsletters and associated links and articles to non-CARE customers promoting the CARE program. E-distribution lists range from 30k to 700k depending on targeting method used.Capitation Program: Year round program promotion/enrollments provided by a network of CBOs located throughout the service area. 3rd Party Program: Year round door-to-door personalized outreach utilizing in-person program enrollment methods.Program Leveraging: Emerging tactic deigned to provide program promotion and enrollments through established assistance organizations beyond the IOUs.Events: Participation in public and private community venues having a high probability of attendance by low income customers often with non-GM or mixed ethnic backgrounds. This outreach tactic was expanded to include two mass media based telethons in 2009.

Redundant marketing is conducted throughout the SCG CARE PY to maximize customer exposure to the CARE enrollment message through multiple channel opportunities.

*CARE Outreach/Ethnic MediaEthnic Media

1st Quarter Jan-Feb Economic Hardship Campaign This print campaign was designed to help families through tough times by offering supportive services like CARE, LIEE, energy efficiency and other SoCalGas programs. General Market: Includes Seniors and African-American channels Hispanics Asian: Includes Chinese, Korean, Mandarin and Vietnamese channels1st Quarter March-April CARE CampaignSystem wide multimedia campaign incorporating traffic radio, TV billboards, newspaper and magazine ads and web based advertising. The campaign was timed for released with a system wide CARE bill insert and also targeted newly unemployed customers. General Market: Includes Seniors and African-American channels Hispanics Asian: Includes Chinese, Korean, Mandarin and Vietnamese channels2nd Quarter - WeCARE CampaignWeCARE was a weeklong series of customer resource fairs held the week of April 20-25 in partnership with the CPUC. The fairs featured information about customer assistance programs, such as CARE rate discount for income-qualified families and free home improvement services to qualified customers as well. Special attention was given to newly unemployed customers.General Market: Includes Seniors and African-American channels Hispanics 4th Quarter Winter Customer Assistance CampaignTo help customers save energy and money, SoCalGas launched a winter radio/print campaign in Dec. to promote CARE and other assistance programs, elements included radio traffic reports, local TV news, community print newspaper and included added-value online banner ads to drive customers to www.socalgas.com/winter or www.socalgas.com/sp/invierno. General Market: Includes Seniors and African-American channels Hispanics Asian: Includes Chinese, Korean, Mandarin and Vietnamese channels

*Other EffortsLeveragingPartnered with two USC school programs in South and East LA areas in which the majority of residents are low income and disadvantaged.Completed four events to encourage low income parents to participate in LIEE program. These parents are engaged and look to USC to bring resources to them. Program Leveraging is designing and implementing tactics to provide program promotion and enrollments through established assistance organizations such as Public Utilities, Counties, Cities and School Districts)IntegrationCollaboration with internal EE staff to screen out potential low-income customers for LIEE enrollments. Some integration efforts have identified about 10%-15% of EE customers eligible for LIEE.

*Other Efforts Pilots Natural Gas High Efficiency Forced Air Units Furnace PilotAuthorized budget: $924,203Expenditures to date $0

StudiesNon Energy BenefitsAuthorized budget: $30,000Expenditures to date $0

* Based on Southern California Gas Company (U 904 G) Low Income Energy Efficiency (LIEE) and California Alternate Rates for Energy (CARE) Program Monthly Report for December 2009.

*2010 Looking Ahead

LIEEContinue to increase Leveraging with LIHEAP, Municipal Utilities and other non-LIEE CBOs and community resources.Continue to increase Integration with SoCalGas EE.Expand data mining and customer information collection to increase contractors success in LIEE enrollments and enhance support to LIEE Contractor network for capacity building.Issue 2010 RFQ/RFP for new contractors in E&A, Weatherization and Gas Appliance services.Focus LIEE operational efforts in hard-to-reach communities.Target customers from 2009 where enrollment was attempted, but customer did not respond.CAREBuild on the successful 2009 outreach tactics with focus on technology based tactics (e.g. AVM & web) Continue seeking internal and external leveraging opportunities for enrollment and marketing purposesTelethons and select community events for niche marketing Explore new communication channels such as social networks Enhance enrollment processReal-time web enrollment instead of current daily batch processExpanded online CARE forms for use Capitation and 3rd Party agencies

*Customer Privacy Current PracticesRelevant excerpt from the Southern California Gas Companys Privacy Policy[1]

The Southern California Gas Company (SoCalGas) will not disclose the information you give us with any third party except to the extent such third party requires such information in order to perform services for SoCalGas related to SoCalGas own business purposes, unless required by law, or when necessary to protect the Web site or SoCalGas. We will not collect or sell your information for commercial purposes with third parties.

[1] SoCalGas privacy policy is available at http://www.socalgas.com/privacy/ .

Section 1.3 of the Monthly Report provides detailed information on Outreach/Ethnic Media issues.Section 1.3 of the Monthly Report provides detailed information on Outreach/Ethnic Media issues.