General Order (GO) 156 Report Year 2018 Utilities Procurement of - - PowerPoint PPT Presentation

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General Order (GO) 156 Report Year 2018 Utilities Procurement of - - PowerPoint PPT Presentation

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General Order (GO) 156 Report Year 2018 Utilities Procurement of Goods, Services and Fuel from Women-, Minority-, Disabled Veteran-, and LGBT-owned Business Enterprises Stephanie Green Supplier Diversity Manager California Public Utilities

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General Order (GO) 156 Report

October 3, 2019

Stephanie Green Supplier Diversity Manager California Public Utilities Commission

Year 2018 Utilities Procurement of Goods, Services and Fuel from Women-, Minority-, Disabled Veteran-, and LGBT-owned Business Enterprises

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General Order 156 (GO 156):

  • Requires utility companies with gross revenues greater than $25

million annually to have a Supplier Diversity Program

  • Encourages utility companies to increase the utilization of Women,

Minority, Disabled Veteran, and LGBT owned business enterprises (WMDVLGBTBE) in their procurement activities

Program goal: participation of 15% minority, 5% women and 1.5% Disabled Veteran owned businesses

  • **No goal for LGBT-owned businesses

CPUC Utility Supplier Diversity Program

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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
  • 32 utilities submitted their annual GO 156 report to CPUC

GO 156 Report to the Legislature

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2018 Utilities Diverse Procurement Overview

Total Diverse Spend $12.32 billion (33.93%)

8(a) $0.29 million (0.001%) LGBTBE $38.8 million (0.11%) MBE $8.5 billion (23.43%) WBE $3.2 billion (8.82%) DVBE $571 million (1.57%)

Subcontracting $2.22 billion (6.13%)

2,824 total direct diverse suppliers

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2017/2018 Utilities Diverse Procurement

21.08% 8.36% 1.61% 0.14% 0.001% 6.07% 31.17% 23.43% 8.82% 1.57% 0.11% 0.001% 6.13% 33.93%

MBE WBE DVBE LGBTBE 8(A) SUBCONTRACTING TOTAL DIVERSE SPEND

Percentage

2017 2018

$7.13 $2.83 $0.54 $0.05 $0.0004 $10.55 $8.50 $3.20 $0.57 $0.04 $0.0003 $12.32 MBE WBE DVBE LGBTBE 8(A) TOTAL DIVERSE SPEND

Spend in Billions

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2014-2018 Utilities Diverse Procurement

$0.006 $0.04 $0.05 $0.04 $0 $2 $4 $6 $8 $10 $12 $14

MBE WBE DVBE LGBTBE 8(a) SUBCONTRACTING TOTAL DIVERSE SPEND

Spend in Billions

0.02% 0.12% 0.14% 0.11% 0% 5% 10% 15% 20% 25% 30% 35% 40%

MBE WBE DVBE LGBTBE 8(a) SUBCONTRACTING TOTAL DIVERSE SPEND

Percentage

2014 2015 2016 2017 2018

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2014-2018 Utilities Diverse Subcontracting Spend and Percentage

9.52% 8.42% 6.45% 6.07% 6.13% 2014 2015 2016 2017 2018 $2.51 $2.29 $1.96 $2.06 $2.22

Spend in Billions

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2018 Top 10 Performers

65.28% 49.75% 46.73% 43.94% 41.43% 40.47% 40.43% 40.12% 38.74% 33.66% Southwest Gas Suburban Water SCE SDG&E PG&E Frontier Verizon Wireless SoCalGas Sprint San Gabriel Valley

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Utilities with the least WMDVLGBTBE Procurement in 2018

18.63% 18.51% 15.01% 11.48% 11.05% 7.77% 6.18% 5.43% 3.53% 2.53%

AT&T Mobility PacifiCorp San Jose Wild Goose Storage Charter Comcast CenturyLink Trans Bay Cable Lodi Gas Storage TPx

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Utilities Who Met All Three Goals in 2018

15% Minority 5% Women 1.5% DVBE

Cal-Am Water 15.65% 9.29% 1.97% Golden State Water 23.14% 5.19% 2.48% PG&E 25.39% 11.53% 4.47% SDG&E 25.46% 13.82% 4.31% SCE 27.97% 16.54% 2.20%

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  • Centralized procurement policy
  • Strategic sourcing
  • Emerging technologies and new market entrants
  • Limited diverse suppliers that meet the scale and requirements
  • f contracts
  • Credit, bond, security, capital etc. requirements
  • Terms and conditions of payment
  • Size of diverse suppliers
  • Location of contracts
  • Diverse subcontracting reporting and quality of diverse

subcontracting data

  • Fuel and power procurement continue to decline significantly

GO 156 Program Challenges

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Update/Enhance

  • Identify approaches to best utilize the utilities’ subcontracting programs
  • Continue collaborations with utilities and business organizations to identify and find solutions for

challenges and barriers

  • Analyze LGBTBE yearly spend and market conditions in preparation for LGBTBE goal setting

discussions

  • Continue discussions with DVBE organizations and other interested groups for legislative solutions to

include non-California domiciled DVBEs

Quantify

  • Continue to quantify and capture the socioeconomic value of GO 156

Outreach

  • Advocate for WMDVLGBTBEs inclusion in utilities procurement activities
  • Increase the number of certified WMDVLGBTBEs
  • Strengthen partnerships with WMDVLGBTBEs organizations and communities

GO 156 – Next Steps

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Thank You!

Stephanie Green

Stephanie.Green@cpuc.ca.gov 415-703-5245