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30 Years of Innovation in Supplier Diversity

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					                               30 Years of Innovation in   Supplier Diversity
                                                            2010 ANNUAL REPORT / 2011 ANNUAL PLAN




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                                             “Edison International’s 125-year heritage of innovation is reflected
                                             in the progress we have made in identifying, developing, and
                                             engaging with a diverse community of suppliers. These business
                                             partners have helped propel our company to a leading position in
                                             the electric power industry.”
                                             Theodore F. Craver, Jr.
                                             Chairman, President and Chief Executive Officer
                                             Edison International




           SCE’s Key Milestones in Supplier Diversity                                                                                                                                                                                     2010
                                                                                                                                                                                                                                        SCE Supplier
                                                                                                                                                                                                                     2009               University launches.

           In 2010, Southern California Edison                                                                                                                                                     2006
                                                                                                                                                                                                                     SCE subcontracting
                                                                                                                                                                                                                     program achieves
                                                                                                                                                                                                                                        Curriculum includes
                                                                                                                                                                                                                                        business workshops,

           reached more than $1 billion in spending                                                                                                                                               SCE surpasses
                                                                                                                                                                                                  the half billion
                                                                                                                                                                                                                     62.7% increase
                                                                                                                                                                                                                     in subcontracting
                                                                                                                                                                                                                                        mentoring, and
                                                                                                                                                                                                                                        experiential learning.
                                                                                                                                                                              2003
           with minority-, woman-, and service-disabled                                                                                                                       SCE leads effort
                                                                                                                                                                                                  ($544.5 million)
                                                                                                                                                                                                  mark in DBE
                                                                                                                                                                                                                     spending.          SCE surpasses the
                                                                                                                                                                                                                                        $1 billion mark in
                                                                                                                                                        2000
           veteran-owned businesses – 27% of all                                                                                                        FORTUNE
                                                                                                                                                                              in formation of the spend.
                                                                                                                                                                              California DVBE
                                                                                                                                                                                                                     Supplier diversity
                                                                                                                                                                                                                     becomes a
                                                                                                                                                                                                                                        DBE spend.

           procurement spending.                                                                                                 1998                   Magazine ranks
                                                                                                                                                        SCE third
                                                                                                                                                                              Corporate Advisory
                                                                                                                                                                              Board.
                                                                                                                                                                                                                     corporate goal,
                                                                                                                                                                                                                     with executive
                                                                                                                                 SCE and 11                                                                          compensation
                                                                                                                                                        nationally as         FORTUNE
                                                                                                             1996                other companies
                                                                                                                                                        standout company
                                                                                                                                                                                                                     linked to
                                                                                                                                 join Greenlining                             Magazine                               performance.
                                                                                                             SCE enters into                            for excelling in      ranks SCE top
                                                                                          1992                                   Institute in form-
                                                                                                             Memorandum                                 percentage of total   five nationally in
                                                                                                                                 ing “California
                                                                                                             of Understanding                           purchases from        percentages of
                                                                                          SCE’s Women                            Partnership on
                                                                                                             partnership with                           minority-owned
                                                                    1990                  and Minority                           Diversity” to                                purchasing from
                                                                                                             Mayor of                                   businesses.           minority-owned
                                                                                          Business                               promote racial
                                                                    SCE is first                             Los Angeles’                                                     businesses.
                                                                                          Enterprises                            harmony and the
                                             1988                   utility to file a                        Minority Business
                                                                                          Program expands                        economic and
                                                                    Comprehensive                            Opportunity
                                             California Public                            to include                             social benefits
                                                                    Equal Opportunity                        Committee to
                                                                                          service-disabled                       of diversity.
                        1983                 Utilities Commission   Pledge and                               increase WMBE
                                             (CPUC) establishes                           veterans.
                                                                    voluntarily commits                      procurement         SCE exceeds its
                        SCE’s Minority
      1979                                   General Order 156.     to a 30% WMDVBE                          spending.           eight-year voluntary
                        and Small Business
                                                                    goal by 1998.                                                Comprehensive
      SCE formalizes    Development
                        Program expands                                                                                          Equal Opportunity
      and implements
                        to include non-                                                                                          Pledge of a 30%
      Minority and
                        minority females.                                                                                        WMDVBE procure-
      Small Business
                                                                                                                                 ment goal.
      Development
      Program.




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                        Contents
                        Section 2010 Annual Report                               Page No.      Section 2010 Annual Report – Fuel Procurement             Page No.

                                 Message from the President                                3   9.1.1     Internal/External Activities                             40
                                 2010 Highlights                                           4   9.1.2     Summary of Purchases and/or Contracts                    41
                        9.1.1    Internal/External Activities                              5   9.1.3     Program Expenses                                         41
                        9.1.2    Summary of Purchases and/or Contracts                    18   9.1.4     Goal Progress                                            41
                        9.1.3    Program Expenses                                         23   9.1.5     Subcontractors                                           41
                        9.1.4    Goal Progress                                            23   9.1.6     Complaints                                               41
                        9.1.5    Subcontractors                                           24   9.1.8     Diverse Suppliers in Underutilized Areas                 42
                        9.1.6    Complaints                                               24   9.1.9     Retention of All Documents/Data                          42
                        9.1.8    Diverse Suppliers in Underutilized Areas                 24   9.1.10A   Participation Results by Fuel Category                   42
                                                                                               9.1.10B   Market Conditions and Outreach                           42
                                 Message from SCE’s Senior Vice President and             33
                                 Chief Procurement Officer                                               2011 Annual Plan – Fuel Procurement
                                 2011 Annual Plan                                              10.1.1    Goals                                                    42
                        10.1.1   Goals                                                    34   10.1.2    Planned Internal/External Activities                     42
                        10.1.2   Planned Internal/External Activities                     35   10.1.3    Recruitment Plans for Suppliers in Underutilized Areas   43
                        10.1.3   Recruitment Plans for Suppliers in Underutilized Areas   38   10.1.5    Planned Subcontracting Activities                        43
                        10.1.5   Planned Subcontracting Activities                        38   10.1.6    Program Compliance                                       43
                        10.1.6   Program Compliance                                       39




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           SOUTHERN CALIFORNIA EDISON




           Ron Litzinger




      “SCE has continuously worked to find
           innovative approaches to identifying,
           developing, assisting, and contracting
           with diverse enterprises.    ”


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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                                          Message from the President
                                          SUPPLIER DIVERSITY – A CORPORATE PRIORITY

                                          As Southern California Edison commemorates its 125th anniversary in 2011, we also celebrate our achievements
                                          over the past 30+ years to advance the diversity of our supplier base.

                                          Supplier Diversity at SCE began in 1979, when we formalized our efforts to expand the company’s relationship
                                          with minority-, woman-, and service-disabled veteran-owned business enterprises.
                                          Then, as now, this program was built on the belief that supplier diversity is a sound business strategy. As we
                                          continually create new programs and processes to engage with diverse business enterprises (DBEs), we create
                                          opportunities for expanded hiring, both at SCE and at the suppliers with which we work.
                                          Over time, SCE has committed itself and its operations to constantly raising the bar on supplier excellence and
                                          our expectations on our collective performance. We have continuously worked to find innovative approaches
                                          to identifying, developing, assisting, and contracting with DBEs.
                                          These efforts resulted in new levels of achievement in 2010:
                                                      •   SCE reached more than $1.1 billion spent with DBEs for the first time ever – an increase of more
                                                          than $375.34 million compared to the prior year.
                                                      •   27.1% of our total procurement spending was with DBEs, exceeding the California Public Utilities
                                                          Commission’s goal of 21.5%.
                                                      •   More than 770 diverse suppliers are actively doing work for SCE, up nearly 50% over 2009.
                                          It’s also gratifying that, after increasing our DBE spend a significant 43.2% in 2009, we achieved a 51.5% increase
                                          in 2010 – just one year later.
                                          These milestones are the result of the commitment and hard work demonstrated by everyone at SCE – our
                                          Procurement staff, our business leaders, our office and field workers – and most particularly, the Supplier Diversity
                                          and Development team, who work tirelessly in creating new and unique ways to engage DBEs.
                                          In this year’s Annual Report, you will read about the unique and innovative programs that contributed to our
                                          achievement of these milestones. You will also read some inspiring success stories from diverse suppliers that
                                          have grown and prospered as a result of their relationships with SCE.



                                          Ron Litzinger
                                          President
                                          Southern California Edison

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           SOUTHERN CALIFORNIA EDISON




           2 0 1 0         A N N U A L     R E P O R T


           2010       HIGHLIGHTS                                                                 •   More than 600 participants in SCE programs in 2010. SCE ramped up
                                                                                                     technical assistance to help build the capabilities of diverse suppliers,
           In 2010, SCE achieved several major accomplishments. Total procurement with
                                                                                                     including launching new programs, such as SCE Supplier University, aimed
           minority-, woman-, and service-disabled veteran-owned businesses exceeded
                                                                                                     at helping DBEs compete more successfully in procurement opportunities.
           $1.1 billion, up $375.34 million over the previous year. Spending with qualified
           diverse business enterprises (DBEs) grew to 27.1%, rising from 23.6% in 2009 and      •   Greater internal collaboration and communication to encourage more
           exceeding the California Public Utilities Commission’s (CPUC) target of 21.5%.            participation of diverse suppliers in SCE procurement. Partnerships between
                                                                                                     SCE business units, Supply Management and others resulted in improved
           Achievements in 2010 include:
                                                                                                     awareness of DBEs and corporate supplier diversity goal commitments.
           •   First year DBE spending reaches more than $1.1 billion.                           •   The first financing transaction by a California investor-owned utility
           •   255 newly added diverse firms. As a result of internal and external outreach          using two California-based DBE firms in lead roles.
               activities, SCE broadened the work performed by diverse suppliers in areas such   •   New tools to ensure access to certified suppliers. A Supplier Registration
               as construction and energy efficiency.                                                online system and the DBE Yellow Pages, which includes nearly 600 diverse
           •   A 51.5% increase, or $375.34 million, in spending with diverse prime                  firms, are accessible to SCE buyers, business units, and prime suppliers.
               and subcontractor suppliers, compared to 2009.                                    •   SCE received Edison Electric Institute’s Excellence Award for advancing
           •   A 46.3% increase, or $82.35 million, in spending with diverse subcontractors          purchasing opportunities for minority- and woman-owned businesses.
               compared to 2009. SCE actively worked with prime contractors, business units
               and Supply Management to create subcontracting opportunities with diverse
               suppliers to increase participation.                                              Opportunities

           •   A 138.1% and 247.2% increase in spending with African American- and               To meet challenges and create opportunities with diverse suppliers in
               service-disabled veteran-owned firms, respectively. This was the result of        underutilized procurement areas, the company launched a number of innovative
               SCE’s commitment to increase spending in these underutilized categories by        initiatives designed to enhance DBE technical skills to help them take on larger
               aggressively reaching out to get more qualified African American- and service-    contracts with the company and others. Among SCE’s activities:
               disabled veteran-owned firms to do business with the company.                     •   Offering hands-on training in new and emerging technologies. In 2010, 29
           •   A renewed commitment to supplier diversity with employee compensation                 diverse suppliers received solar panel installation training from industry experts
               linked to performance.                                                                at Solar Demonstration Centers in Ontario and Pomona.

           •   Improved tracking, reporting and analysis of DBE Subcontracting                   •   Helping DBEs grow from subcontracting to prime suppliers and expanding
               spending. The company contracted with a leading supplier data management              subcontracting opportunities. Also, providing a more accessible reporting
               company to develop a more streamlined, web-based process of reporting                 process for participating prime suppliers to validate their subcontractor DBE
               subcontracting spending.                                                              certifications and reporting of DBE spending.




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                                                                                                                                                                      2010         49.2% increase                                                               773


                                                                                                                                                                      2009                                                               518

                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN
                                                                                                                                                                             0.0      100       200           300        400     500           600      700     800




                    •   Offering assistance to diverse suppliers in specific industries. Partnering                                                                    N UMBER OF DBE SUPPLIERS PARTICIPATING IN SCE PROGRAMS
                        with a prime supplier, Turner Construction, SCE sponsored 11 DBEs in the
                                                                                                                                                                      2010                              14.5% increase                            600
                        Turner Construction School of Management. The program offered DBEs
                        technical, administrative, and managerial skills to help them grow and develop                                                                2009                                                               524
                                                                                                                                                                                                        6.1% increase
                        new strategic business relationships with SCE Procurement representatives.
                    2010                                                                51.5% increase                                                   $1,104.84
                                                                                                                                                                      2008                                                          494
                    DBE SPENDING (in millions)
                    2010                                                        51.5% increase                                                           $1,104.84
                    2009                                            43.2% increase                                  $729.50                                                  0.0     100.0      200.0        300.0       400.0   500.0         600.0    700.0   800.0

                    2010                                                        51.5% increase                                                           $1,104.84
                    2009                                            43.2% increase                                 $729.50
                    2008                                                           $509.60
                    2009                                           43.2% increase                                  $729.50                                            I NTERNAL/EXTERNAL                ACTIVITIES       (9.1.1)
                    2008 $0.0        $100.0         $200.0    $300.0    $400.0              $509.60
                                                                                       $500.0   $600.0    $700.0       $800.0     $900.0   $1000.0


                    2008 $0.0                                                               $509.60                                                                   SCE is fully committed to advancing supplier diversity both within and
                                     $100.0         $200.0   $300.0     $400.0         $500.0   $600.0    $700.0       $800.0     $900.0   $1000.0
                                                                                                                                                                      outside the company. Internally, it has numerous programs and teams in place
                           $0.0     $100.0          $200.0   $300.0     $400.0         $500.0    $600.0   $700.0       $800.0    $900.0    $1000.0                    to encourage employees to keep qualified diverse suppliers in mind for potential
                                                                                                                                                                      contracting opportunities. Externally, SCE reaches out to diverse firms, business
                                                                                                                                                                      and trade organizations, and the overall community to identify DBEs to do
                    DBE SUBCONTRACTING SPENDING (in millions)
                    2010   46.3% increase $260.23                                                                                                                     business with.

                    2010              46.3% increase     $260.23                                                                                                      The company’s work does not end there. It also offers workshops, symposiums,
                    2009          62.7% increase $177.87
                                                                                                                                                                      and other programs to help diverse suppliers become more competitive so they
                    2010              46.3% increase     $260.23
                    2009          62.7% increase $177.87                                                                                                              can better serve SCE and others.
                    2008                     $109.34
                    2009 62.7% increase $177.87
                    2008 $0.0   $100.0$109.34
                                            $200.0                           $300.0             $400.0        $500.0            $600.0          $700.0       $800.0
                                                                                                                                                                      I NTERNAL      ACTIVITIES
                    2008 $0.0                       $109.34
                                          $100.0          $200.0            $300.0              $400.0        $500.0            $600.0         $700.0        $800.0
                                                                                                                                                                      The company’s internal activities were a key factor in its solid performance in
                           $0.0           $100.0             $200.0         $300.0              $400.0       $500.0             $600.0         $700.0        $800.0
                                                                                                                                                                      2010. SCE launched several initiatives to increase spending with diverse firms,
                                                                                                                                                                      including enhanced communications, improved tracking, reporting and analysis
                    N UMBER OF DBE SUPPLIERS                                                                                                                          of diverse supplier data, and improved collaboration among departments and
                                                                                                                                                                      business units.
                    2010              49.2% increase                                                                                                         773
                                                                                                                                                                      All of these activities demonstrate that supplier diversity is a corporate-wide goal.
                    2010              49.2% increase                                                                                                         773
                    2009                                                                                                518
                    2010             49.2% increase                                                                                                          773
                    2009    0.0               100             200                300             400           500      518      600            700           800


                    2009   0.0                100             200            300                 400           500
                                                                                                                       518       600            700           800



                           0.0               100             200             300                400           500               600             700           800
                                                                                                                                                                                                                                                                                   5


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     Philatron Wire & Cable: Looking Forward to Continued Growth

                                                                                                        SCE Supplier University
     For more than two decades, Phil Ramos, Jr., who owns Philatron Wire & Cable,
     attended SCE seminars, workshops, and networking events, and “kept building                        Created in response to the company’s need to have more high-performing
     my relationship with Edison.”                                                                      suppliers ready and able to do business with it, SCE Supplier University was
                                                                                                        designed to help high-potential diverse businesses better compete at varying
     Ramos’ operations began in 1974 with $200 and now include a 100,000-                               levels to expand capacity.
     square-foot manufacturing facility in Santa Fe Springs and a 10,000-square-
     foot assembly plant in Tijuana, Mexico.                                                            The program, which included more than 600 participants in 2010, consists of several
                                                                                                        tracks that addressed the different developmental needs of diverse suppliers:
     “In 2009, after years of handling smaller contracts for the utility, we were
              introduced to the Engineering department,” Ramos says. After                              •   Mentorship Program – Selected DBEs are mentored over 18 months through
                              passing SCE’s quality and safety audit, the electrical                        Leading Edge workshops, which are complemented by SCE advisors, who offer
                                          wire and cable manufacturer was                                   guidance, resources, and introductions to others within the company. The
                                          approved as a cable and wire provider.                            program was launched in February with five suppliers. These suppliers then
                                                                                                            participated in competitive bids and were successful in receiving contracts
                                                 Last year, the firm not only landed a                      in 2010.
                                                million-dollar contract to provide power
                                               cable for SCE’s wind farm project in the                 •   Power Team – As part of the Mentorship Program, DBEs are assigned a
                                              Mojave Desert, but was also selected as                       “power team,” which is composed of an SCE business unit, Procurement staff
                                             a participant in the SCE Supplier University                   and a professional business coach to help develop their growth.
                                             Mentoring Program.                                         •   Demonstration Center – A creative learning environment in multiple sites
                                                                                                            provides hands-on experience in new and emerging technologies and industrial
                                    “We’re very grateful for the work and for
                                                                                                            applications. In 2010, 29 suppliers learned how to install rooftop solar panels
                                   being involved in the Mentoring Program,” says
                                                                                                            and received critical information regarding key issues in the industry and SCE
     Ramos. “The mentoring includes a team comprised of specialists within SCE,
                                                                                                            procurement opportunities.
     including representatives from Supply Management, Engineering, and Supplier
     Diversity and Development, as well as ‘coaches’ outside the company.                               •   Targeted Capacity Building – SCE offers mentoring and consulting to diverse
                                                                                                            suppliers based on their business development needs. The first of these
     “The program is designed to provide a better understanding of how to do
                                                                                                            programs, the Post-Bid Debriefing, was launched in 2010. Programs developed
     business with Edison,” Ramos adds, noting he also attends workshops on such
                                                                                                            in 2010 for implementation in 2011 include Individual Coaching and Small
     topics as marketing, financing, and corporate networking.
                                                                                                            Contract Selection.
     For Philatron’s outstanding work, SCE nominated the Latino-owned company                           •   DBE Targeted Program – This track is focused on improving the use of DBEs
     for a Southern California Minority Business Development Council 2010 Supplier                          in underutilized categories. To help diverse firms, SCE partnered with Turner
     of the Year award.                                                                                     Construction to sponsor 11 DBEs in the Turner School of Construction
     “We feel very blessed and thankful for Edison’s support over the years,”                               Management, where they gained technical skills and assistance over 14 class
     says Ramos. “They’ve been a major supporter and we’re looking forward to                               sessions spanning seven weeks.
     continued growth with them.”
            Shown in photo: Phil Ramos, Jr., who owns Philatron Wire & Cable, attended SCE seminars,
           workshops, and networking events to build his company’s relationship with Edison. His firm
                         was selected as a participant in SCE Supplier University Mentoring Program.
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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    •   Business Edge Workshop Series – Now part of SCE Supplier University, this        Collaboration and Commitment
                        10-year-old series helps DBEs build their competitive edge by providing them
                                                                                                         The company’s performance in 2010 is a result of greater collaboration,
                        with sound business management tools to increase their bottom line, reduce
                                                                                                         partnerships, communications, and creative thinking among SCE’s departments
                        costs, improve productivity, and compete and grow. The 2010 series, which
                                                                                                         and business units, and Supply Management. Here are a few examples:
                        covered such topics as business performance, networking strategies, and
                        service excellence, attracted 474 suppliers at workshops held in Los Angeles,    •   Supply Management, which oversees SCE’s procurement of goods and services,
                        Orange, and San Bernardino counties, and a one-day financial management              and Supplier Diversity and Development worked closely together and were
                        workshop in Palm Springs.                                                            successful in providing bid opportunities to DBEs, resulting in their winning
                                                                                                             competitive and non-competitive contracts.
                    Improved Processes and Systems
                                                                                                         •   Supply Management collaborated with the Transmission and Distribution
                    In 2010, the company launched a DBE subcontracting spend reporting system                Business Unit to technically qualify two new DBE construction suppliers. The
                    to better monitor and track DBE subcontracting spending, compliance, and                 team also worked to increase DBE subcontracting spending. In addition, Supply
                    opportunities. The new system also allows prime contractors to report and                Management partnered with Supplier Diversity and Development to help a
                    validate their subcontractors’ DBE certifications.                                       diverse supplier become qualified to participate in a competitive multi-year
                    In addition, SCE launched a new Supplier Registration portal to help Procurement         Request for Proposal, which resulted in a three-year, $700,000 annual contract.
                    agents identify diverse suppliers to participate in contracting opportunities.       •   Supplier Diversity and Development provided training to Supply Management
                                                                                                             employees on Supplier Diversity at SCE and opportunities and resources
                    Internal Communications                                                                  available to DBEs.

                    The company employed several new tools to enhance communications about               • Supply Management collaborated
                    Supplier Diversity at SCE. These include:                                                with prime suppliers to increase
                                                                                                             DBE subcontracting spending,
                    •   A redesigned intranet site with information on procurement opportunities and         which resulted in a 5% departmental
                        a list of Supplier Diversity and Development attended and/or hosted events.          increase in overall DBE commitment
                    •   New communications vehicles, including a monthly newsletter from the Chief           over 2009. In one example,
                        Procurement Officer, monthly “SDD Minute” and quarterly conference calls with        the department provided support
                        Supply Management. These are aimed at keeping supplier diversity at the              to an existing DBE contractor and
                        forefront and informing employees of the company’s status in meeting goals.          helped it secure a $5 million
                                                                                                             contract on the Antelope
                    •   Creation of a DBE Yellow Pages, a 200-page catalog of nearly 600 certified
                                                                                                             Substation’s Mechanical Electrical
                        diverse suppliers, which is used by SCE buyers, business units, and prime                                                  (l-r, first row) Cecil House, SCE SVP and chief
                                                                                                             Engineering Room Project.
                        suppliers to ensure they have access to the widest possible pool of qualified                                              procurement officer; Debbie Lumpkin, manager,
                                                                                                                                                   SCE Supplier Diversity and Development; and
                        DBE firms.                                                                                                                 Aubry Stone, president, California Black Chamber
                                                                                                                                                   of Commerce; pose with members of SCE’s
                    •   Creation of the Ambassador Program, which is composed of 13 employee                                                       Supplier Diversity and Development Department
                                                                                                                                                   at the California Black Chamber of Commerce
                        resource groups that promote understanding on cultural, ethnic, gender, and                                                15th Anniversary Ron Brown Business & Economic
                        generational differences within the company. The groups’ activities and events                                             Summit.
                        are leveraged to support information-sharing for Supplier Diversity at SCE.

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           SOUTHERN CALIFORNIA EDISON




     APR Consulting: Growth and Friendship                                                      •   Supply Management achieved an overall DBE commitment of 30% for Project
                                                                                                    Engineering, 34% for Construction Labor, and 25% for Environmental Support
                                                                                                    contracts.
     Linda Stone, CEO of APR Consulting, still remembers her first contract with
     SCE 20 years ago. “When we became a preferred vendor, we had only one                      •   Creation of the Supplier Diversity and Development Leadership Council, which
                                                                                                    includes senior management within SCE’s business units who serve as supplier
     employee – me. And Joe Alderete was a Procurement agent,” says Stone,
                                                                                                    diversity “champions.” The council meets quarterly to discuss business unit
     referring to SCE’s Supplier Diversity and Development manager.                                 procurement needs, known gaps in the use of diverse suppliers and ways to
                                                                                                    insure DBEs are considered in contracting opportunities.
     APR Consulting started as a provider of information technology and engineering
     services in Southern California and has since become a staffing solutions                  •   Information Technology and Business Integration rolled out “DBE road shows”
                                                                                                    to promote awareness of diverse suppliers with business unit stakeholders.
     company, providing recruitment, payroll
                                                                                                    The group also identified key DBE suppliers, awarded competitive contracts
     and vendor management services.                                                                to diverse prime and subcontracting suppliers, and helped a subcontractor
     Today, the Asian- and woman-owned                                                              become a prime supplier.
     firm, which has provided SCE with                                                          • SCE business units, Supplier Diversity and Development and Supply
     temporary personnel since 1990,                                                                Management worked together to increase spending with African American
     employs more than 2,000 staff                                                                  and service-disabled veteran-owned firms. As a result of their targeted out-
                                                                                                    reach, spending increased 138% and 247%, respectively.
     nationwide.

     “Having SCE as a partner has                                                               Executive Support
     certainly facilitated our growth,”                                                         SCE senior executives and management were fully committed to meeting
     Stone says, adding, “we are now                                                            or exceeding supplier diversity goals and were instrumental in the company’s
     expanding in Southeast Asia.                                                               solid performance. SCE management regularly reviews supplier diversity
                                                                                                progress. In 2010, employee compensation was linked to supplier diversity
     “SCE is very good at reaching out to minority-owned and small businesses.                  performance results.
     We not only became partners with SCE, we also developed friendships with the
     Supplier Diversity and Development team. They are always very approachable                 E XTERNAL      ACTIVITIES

     and they listen when we provide input,” she adds.                                          SCE supports numerous organizations that promote the growth and develop-
                                                                                                ment of diverse business enterprises, including providing leadership, guidance,
     “We are very happy to have had such a long-term relationship with SCE.”
                                                                                                support, and in-kind donations and services. In short, SCE is present wherever
                                                                                                there are qualified, diverse suppliers.

     Shown in photo: Linda Stone, CEO of APR Consulting (c), is recognized for outstanding      The company uses its external activities as a way of identifying DBEs for business
     service to SCE as a DBE supplier and for community involvement, during the Asian Pacific   opportunities with SCE and offering programs to help them grow and prosper.
     Islander Heritage Week. SCE Supplier Diversity and Development Manager Joe Alderete (l)
     and former SCE chief executive Al Fohrer (r) presented the award.



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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    DBE Organizations                                            •   Chinese American Construction Professionals
                    In 2010, SCE staff members served in board leadership        •   Elite Service Disabled Veteran Owned Business Network (Los Angeles/
                    positions and/or held memberships on advisory boards             Orange/Inland Empire/San Diego/Northern California chapters)
                    and committees. These include:
                                                                                 •   Edison Electric Institute
                    •   American Association of Blacks in Energy
                                                                                 •   Filipino American Chamber of Commerce of Orange County
                    •   American Indian Chamber of Commerce
                                                                                 •   Global Federation of Chinese Business Women
                    •   American Indian National Chamber
                                                                                 •   Global Organization for Leadership & Diversity
                    •   Antelope Valley Board of Trade
                                                                                 •   Greater Los Angeles African American Chamber of Commerce
                    •   Asian Business Association (Los Angeles Chapter)
                                                                                 •   Greater Riverside Hispanic Chamber of Commerce
                    •   Asian Business Association (Orange County Chapter)
                                                                                 •   Hispanic Chamber of Commerce – Orange County
                    •   Asian Business Association (Inland Empire Chapter)
                                                                                 •   Hispanic Chamber of Commerce – Santa Ana
                    •   Asian Community Development
                                                                                 •   Kern County Black Chamber of Commerce
                    •   Asian Women Entrepreneurs
                                                                                 •   Kern County Hispanic Chamber of Commerce, Inc.
                    •   Barstow Hispanic Chamber of Commerce
                                                                                 •   Latin Business Association
                    •   Black Business Association
                                                                                 •   Long Beach Regional Hispanic Chamber of Commerce
                    •   Black Chamber of Commerce of Orange County
                                                                                 •   Los Angeles Minority Business Opportunity Committee
                    •   California Black Chamber of Commerce
                                                                                 •   Moreno Valley African American Chamber of Commerce
                    •   California Disabled Veteran Business Alliance
                                                                                 •   National Association of Women Business Owners (Los Angeles/Orange/
                    •   California Hispanic Corp. Council Leadership Institute       Inland Empire chapters)
                    •   California Utilities Diversity Council                   •   National Black Chamber of Commerce
                    •   Chamber of Commerce – Inland Empire African-American     •   National Center for American Indian Enterprise Development
                    •   Chamber of Commerce – Vietnamese-American                •   National Council of Minorities in Energy
                    •   Chamber of Commerce – San Gorgonio Pass-Hispanic         •   National Latina Business Women Association – Orange County
                    •   CHARO Community Development Corporation                  •   Orange County Chinese American Chamber of Commerce



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           SOUTHERN CALIFORNIA EDISON




            •   Regional Hispanic Chamber of Commerce                                        •   California Black Chamber of Commerce’s Legislative Reception

            •   National Elite DVBE Network                                                  •   First African Methodist Episcopal (FAME) Church Renaissance’s 13th Annual
                                                                                                 Tom Bradley Business Breakfast
            •   San Fernando Valley Black Chamber
                                                                                             •   Greater Los Angeles African American Chamber of Commerce’s 17th Annual
            •   Southern California Minority Business Development Council
                                                                                                 Economic Awards Dinner
            •   Tulare-Kings Hispanic Chamber of Commerce, Inc.
                                                                                             •   Greater Los Angeles African American Chamber of Commerce’s Scholarship
            •   Victor Valley African American Chamber of Commerce                               Luncheon

            •   Young Black Contractors Association Inc.                                     •   Los Angeles Urban League’s 37th Annual Whitney M. Young, Jr. Awards Dinner

                                                                                             •   Moreno Valley Black Chamber of Commerce’s 7th Annual Installation
            Outreach Events                                                                      & Awards Dinner

            African American                                                                 •   Recycling Black Dollars’ Annual Awards Dinner

            •   American Association of Blacks in Energy’s West Regional Conference          •   San Fernando Valley Black Chamber Annual Awards Dinner

            •   American Association of Blacks in Energy’s 33rd Annual National Conference   •   Turning Point Magazine’s Annual Urban Business Summit & Expo

            •   American Association of Blacks in Energy’s Diversity Regional Conference     •   Victor Valley African American Chamber of Commerce’s 12th Annual Premier
                                                                                                 Awards Dinner
            •   Black Business Association’s 36th Annual Awards Dinner
                                                                                             •   West Angeles Community Development Corporation’s 16th Annual Unity
            •   Black Business Association, California Black Chamber of Commerce, National       Awards Banquet
                Black Business Council, Inc.’s 7th Annual Procurement Exchange Summit &
                Awards Luncheon                                                              •   100 Black Men of Orange County’s 14th Annual Gala

            •   Black Business Association’s Awards Luncheon & Conference                    •   Young Black Contractors Association Inc.’s 14th Annual Award Dinner

            •   Black Chamber of Orange County’s 19th Annual Awards Reception and
                Trade Show                                                                   Asian

            •   California Black Chamber of Commerce’s African American Leadership           •   Asian Business Association – Los Angeles Chapter’s Planning Retreat
                Conference
                                                                                             •   Asian Business Association – Los Angeles Chapter’s 34th Annual Awards
            •   California Black Chamber of Commerce’s Council of Chambers Meeting –             Luncheon and Business Expo
                Los Angeles
                                                                                             •   Asian Business Association – Los Angeles Chapter’s Membership Drive Event
            •   California Black Chamber of Commerce’s 15th Annual Ron Brown Commerce
                                                                                             •   Asian Business Association – Los Angeles Chapter’s ‘How to Survive & Thrive
                Summit & Memorial Awards Scholarship Banquet
                                                                                                 in Challenging Economic Times’ Workshop and Luncheon


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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    •   Asian Business Association – Los Angeles Chapter’s Annual Holiday               •   Korean American Chamber of Commerce of Los Angeles’ 33rd Annual Gala
                        & Membership Appreciation Dinner
                                                                                                        •   Mabuhay Alliance’s 7th Annual Economic Development Conference & Dinner
                    •   Asian Business Association – Inland Empire Chapter’s “Learn How To Do
                        Business With Utilities”
                                                                                                        •   Orange County Chinese American Chamber of Commerce’s Scholarship Awards
                                                                                                            Dinner
                    •   Asian Business Association – Orange County Chapter’s Installation & Lunar New
                        Year Reception
                                                                                                        •   Orange County Chinese American Chamber of Commerce’s Installation Dinner

                    •   Asian Business Association – Orange County Chapter’s Business Matchmaking
                                                                                                        •   South Asian Business Alliance Network’s South Asian Business Awards Night

                        Workshops and Mock Interview Events                                             •   3rd India Trade Seminar Presented by the Port of Los Angeles, SCE and Quanta
                                                                                                            Consulting, Inc.
                    •   Asian Business Association – Orange County’s Asian Global Sourcing &
                        Procurement Opportunities Conference                                            •   U.S. Pan Asian American Chamber of Commerce’s 25th CelebrAsian Business
                                                                                                            Opportunity Conference
                    •   Asian Enterprise Magazine’s 2010 Entrepreneur of the Year and Best Companies
                        for Asian American Pacific Islander Awards Dinner
                                                                                                         Latino
                    •   Asian Pacific Heritage Month Event at SCE’s CTAC in Irwindale for WMDVBEs
                                                                                                        • California Hispanic Chambers of Commerce’s 31st Annual State Convention and
                    •   Asian Pacific Islander Small Business Program’s Asian Small Business Expo         Business Expo

                    •   Chinese American Construction Professionals’ SCE-sponsored Diverse Business     •	 California Hispanic Chambers of Commerce’s 16th Annual Legislative Day
                        Certification Workshop
                                                                                                        • California Hispanic Chambers of Commerce’s Board Retreat
                    •   Chinese American Construction Professionals’ Lunar New Year & Builders of the
                        Year Awards Dinner
                                                                                                        • California Latino Journal’s Annual Sacramento Reception for Leadership Leaders
                                                                                                            with Business and Professional Leaders and Educators Awards Dinner
                    •   Chinese American Construction Professionals’ 2010 Installation Luncheon and
                        Green Business Conference
                                                                                                        •   Camara Mexicana de Comercio de Los Angeles’ (Mexican Chamber of
                                                                                                            Commerce of Greater Los Angeles) Business Development Forums (in Spanish)
                    •   Chinese American Construction Professionals’ Annual Holiday and Membership
                        Appreciation Dinner
                                                                                                        •   Central American Resource Center’s 27th Annual Awards Dinner

                    •   Filipino American Chamber of Commerce of Orange County’s 21st Century
                                                                                                        •   CHARO Community Development Corporation’s 43rd Anniversary Gala Awards
                                                                                                            Dinner
                        Business Opportunity Day

                    •   Filipino American Chamber of Commerce of Orange County’s 16th Anniversary
                                                                                                        •   CHARO Community Development Corporation’s 7th Minority & Small Business
                                                                                                            Awards Luncheon
                        Annual Banquet

                    •   Harvest Moon Reception Hosted by SCE for Diverse Businesses in
                                                                                                        •   CHARO’s Minority Business Certification Workshop – Los Angeles

                        Orange County                                                                   •   Congressional Hispanic Caucus Institute Annual Policy Conference and Gala
                                                                                                            Conference, Washington, D.C.

                                                                                                                                                                                                  11


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           SOUTHERN CALIFORNIA EDISON
     Peoples Choice Staffing/Choice Workforce Solutions:
     Getting Bigger, Better and Stronger
                                                                                                       •   Expo Linda Novia (Spanish), in cooperation with Mexican Chamber of
                                                                                                           Commerce, Meta Dos Mil, Mujeres en Accion, Comite Mexicano, and San
     When Denise Peoples started her staffing company in 2003, her goal was to
                                                                                                           Fernando Chamber of Commerce, Huntington Park and San Fernando Valley
     get “bigger, better and stronger.” With the help of SCE and a prime contractor
     who was encouraged by the utility company to use diverse suppliers for                            •   High Desert Hispanic Chamber of Commerce’s Power Luncheons and
     subcontracting opportunities, she got there faster than she imagined.                                 Awards Banquet

     “Peoples Choice Staffing, Inc. began providing                                                    •   Hispanic Business’ Annual National Business Conference and National EOY
     staffing services to Volt Workforce Solutions                                                         Awards Dinner
     in 2004 as part of Volt’s contract with SCE,”
     Peoples says. Along the way, Volt executives                                                      •   Inland Empire Hispanic Lifestyle’s Business Conference and Expo

     mentored Peoples – walking her through the                                                        •   Inland Empire Hispanic Lifestyle’s Latina Recognition Awards Luncheon
     order fulfillment process, what SCE looks for                                                         and Expo
     in candidates, insurance requirements and
     the certification process – and introduced                                                        •   Latin Business Association’s Business Ready Seminars
     her to SCE’s Supplier Diversity and                                                               •   Latin Business Association’s 34th Anniversary Sol Business Awards Gala
     Development team.
                                                                                                       •   Latino Issues Forum’s State Capitol Seminar on Latino Issues
     “I was amazed at Edison’s interest in
     helping me grow my company,” Peoples says.                                                        •   Regional Hispanic Chamber of Commerce’s Annual Gala Awards Reception
     “They gave me a lot of TLC and took a lot of time to explain
     where we were today, where we could be tomorrow, and where they could
                                                                                                       •   Tulare Kings Counties Hispanic Chamber of Commerce’s 15th Annual Business
                                                                                                           Conference and Awards Luncheon
     help us. I also took advantage of networking opportunities and attended SCE
     Business Edge workshops on succession planning, investing and managing                            •   Union Hispana’s 22nd Anniversary Awards Dinner
     finances, among others.”
     Today, the African American-, woman-owned, Corona-based firm has operations                       Native American
     in five states and its own multi-million-dollar contract with SCE through a
     second company, Choice Workforce Solutions, a joint venture with Volt. Choice                     •   American Indian Chamber of Commerce’s Holiday Celebration

     became an SCE supplier, with 10 employees managing staffing needs onsite in                       •   American Indian Chamber of Commerce’s MEDWEEK Celebration and
     Rosemead and Irwindale, and has already exceeded $50 million in sales.                                Recognition Luncheon

     “SCE’s Supplier Diversity Program has been a key part of our success,” Peoples                    •   American Indian Chamber of Commerce’s Native American Heritage Month
     says. “Edison truly believes in the importance of supplier diversity. Other                           Luncheon & Warrior Awards Presentations
     companies don’t leverage you or give you an introduction. Edison executives
     hold their managers accountable for the growth and development of their                           •   American Indian Chamber of Commerce’s American Indian Business: 2010
     diversity suppliers. They make sure you’re prospering. That’s what sets them                          “Connecting Culture and Business in the New Decade”
     apart from other companies.”                                                                      •   American Indian Chamber of Commerce’s American Indian Business/Pomo
                                 Shown in photo: Denise Peoples, founder of Peoples Choice Staffing,       Indians Presents “How To Market Your Business”
                                took advantage of SCE networking events and attended SCE Business
                                    Edge workshops on succession planning and managing finances.
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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    •   American Indian Resource Program Celebration                                    Women

                    •   INPRO 2010 Indian Progress in Business Event 35th Annual American Indian        •   Asian Women Entrepreneurs’ 6th Anniversary Celebration Luncheon
                        Scholarship Fund Luncheon
                                                                                                        •   California Governor & First Lady’s Conference for Women
                    •   Council of Energy Resources Tribe’s Conference & Dinner
                                                                                                        •   Global Federation of Chinese Business Women – Southern California Chapter
                    •   National Center for American Indian Enterprise Development’s Reservation
                                                                                                        •   Global Organization for Leadership and Diversity’s Pre-Symposium Reception
                        Economic Summit Business Trade Conference
                                                                                                        •   Global Organization for Leadership and Diversity’s “Leading and Navigating
                    •   National Indian Gaming Association Conference                                       Culture Across the Pacific” Symposium
                    •   Native American Indian Joint Chamber’s Meeting
                                                                                                        •   National Association of Women Business Owners – Los Angeles Chapter’s 25th
                    •   Southern California Indian Center’s 42nd Annual Pow Wow                             Annual Leadership & Legacy Awards Luncheon Kick-Off Tea

                    •   United American Indian Involvement, Inc.                                        •   National Association of Women Business Owners – Los Angeles Chapter’s 24th
                                                                                                            Annual Leadership & Legacy Awards Luncheon
                    •   Walking Shield Annual Conference
                                                                                                        •   National Association of Women Business Owners – Los Angeles Chapter’s
                                                                                                            Installation Reception
                    Service-Disabled Veteran
                                                                                                        •   National Association of Women Business Owners – Los Angeles Chapter’s
                    •   California Disabled Veteran Business Enterprise Alliance’s Annual Keep The          Holiday Reception
                        Promise Conference and Awards Dinner
                                                                                                        •   National Association of Women Business Owners – Orange County Chapter’s
                    •   CPUC Joint Utilities Diversity Committee Workshop on DVBE Utilization               15th Annual Remarkable Women Awards Luncheon
                        Challenges and Opportunities
                                                                                                        •   National Association of Women Business Owners – Orange County Chapter’s/
                    •   CPUC Joint Utilities Diversity Committee Workshop on DVBE Utilization and           SCE-Sponsored November Dinner Meeting
                        How to Create Business
                                                                                                        •   National Association of Women Business Owners – Inland Empire Chapter’s
                    •   Elite Disabled Veteran Business Enterprise Network’s 7th Annual National            Annual Awards Dinner
                        Convention of Small Disabled Veteran Businesses Convention
                                                                                                        •   Women’s Business Enterprise National Council’s National Conference
                    •   Elite Disabled Veteran Business Enterprise Los Angeles Chapter’s Recognition        & Business Fair
                        Awards Banquet and National Veterans’ Entrepreneurialship Conference

                    •   San Diego Elite’s 5th Annual Membership Recognition Dinner

                    •   San Diego Elite Disabled Veteran Business Enterprise Network’s 8th Veteran’s
                        Day Conference

                    •   U.S. Army Corps of Engineers’ 9th Annual Veterans and Small Business Training
                        and Outreach Conference

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           Other                                                                                      • Southern California Minority Business Development Council’s Supplier of the
                                                                                                          Year Awards Luncheon
           •   California Utilities Diversity Council Meetings

           •   California Utilities Diversity Council’s Green Conference – Long Beach                 • Southern California Minority Business Development Council’s Annual Leadership
                                                                                                          Awards Dinner
           •   Commissioner John Bohn’s California Public Utilities Commission’s Small
               Business Outreach Events                                                               • Governor’s Office of the Small Business Advocate Event - Riverside Stimulus
                                                                                                          Opportunities for Small Business
           •   Edison Electric Institute’s Supplier Diversity Conference in Chandler, Arizona
                                                                                                      •   CPUC Small Business Expo “Commissioner Bond – Outreach Program” Scottish
                                                          • Edison Electric Institute’s Supplier          Rite Event Center, San Diego
                                                           Diversity Executive Committee
                                                           Conference
                                                                                                      SCE also took key leadership roles in several events, including:
                                                          • National Small Business Federal
                                                           Contracting Summit – West Coast            American Association of Blacks In Energy – Western Region’s Energy
                                                           Long Beach                                 Conference – The company served as title sponsor with several executives
                                                                                                      participating, including Edison International’s chairman, president, and CEO;
                                                          • National Council of Minorities in
                                                           Energy Conference – Washington, D.C.       SCE vice president, Customer Service Operations; and vice president, Business
                                                                                                      Customer Service. Workshops included “Finding the Path Towards a Green
                                                          • National Minority Supplier                Jobs Career,” “Corporate Solutions to Western Region Energy Needs,” and “Best
                                                           Development Council’s Annual               Practices of Diversity Strategies at Energy Organizations.”
        SCE was a major sponsor of the American
        Association of Blacks In Energy conference         Conference and Business Opportunity
        “Our Energy Our Time,” (l-r): Harry Hutchison,     Fair in New Orleans                        Asian Business Association of Orange County’s 2010 PROCON and Asian
        vice president, SCE Customer Service Operations                                               Global Sourcing Conference – In addition to sponsoring and exhibiting at the
        and AABE national board member; Mike Beehler,
        Burns & McDonnell associate vice president;       • National Utilities Diversity Council –    event, SCE’s Diversity manager participated in the pre-conference business match-
        Afarah Board, SCE manager and AABE’s Western       Board Members – Quarterly Meetings         making workshops to help train and prepare diverse suppliers in presenting their
        Regional Coordinator; Renita M. Mollman, Burns
                                                                                                      products and services to prospective clients. The manager was also on the
        & McDonnell’s general manager; Theodore F.
        Craver, Edison International’s chairman,          • Small Business Association’s Tri-County   “How to Do Business with Private Sector Corporations” panel.
        president, and chief executive officer.            Faith-Based Small Business Summit
                                                                                                      California Black Chamber of Commerce – SCE served as a title sponsor for the
           •   Small Business Resource Expo Presented by Assembly Member Pedro Nava,
                                                                                                      chamber’s 15th Annual Ron Brown Economic Summit. The keynote speaker at the
               California Small Business Association, Ventura Commerce and Education
                                                                                                      President’s Corporate Appreciation Luncheon was SCE’s senior vice president and
               Foundation, Oxnard Chamber of Commerce, Women’s Economic Ventures and
                                                                                                      chief procurement officer, who discussed Supplier Diversity at SCE.
               Gold Coast Hispanic Chamber of Commerce

           •   Small Business Administration’s 47th Annual Small Business Week Awards
               Luncheon

           •   Southern California Minority Business Development Council’s Minority Business
               Opportunity Day

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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN


                                                                                                      Hal Hays Construction: Building a Future with SCE
                    California Hispanic Chamber of Commerce’s 31st Statewide Convention –
                    SCE served as a co-chair for the chamber’s annual conference in Los Angeles and
                    the company’s senior vice president of Power Production was the keynote speaker   Hal Hays met SCE Supplier Diversity and Development representatives at a
                    at the procurement luncheon. The chamber also recognized SCE for its supplier     Native American Chamber of Commerce event last year. Shortly thereafter, he
                    diversity efforts.                                                                was giving a presentation to company buyers on Hal Hays Construction, Inc.’s
                                                                                                      capabilities. “Next thing you know, they were sending us bidding opportunities
                    Chinese American Construction Professionals’ “Building Green” Business            and we started putting in bids,” Hays says.
                    Conference – The “Solar Opportunities with SCE” workshop was presented
                    by managers from the Solar Initiatives and Self-Generation Program, the Solar     The Riverside-based general and civil
                    Rooftop Programs and the Renewables Standard Contracts Programs, who spoke        construction firm, which counts the
                    to building and construction businesses about solar business opportunities.       military and federal government
                    The SCE booth was staffed by Supplier Diversity and Development and Customer      among its clients, was unsuccessful
                    Solutions, showcasing the Supplier Diversity and Energy Efficiency and            in its first three bid opportunities
                    Management programs. SCE buyers were also present to meet and identify            with SCE. But it received feedback
                    potential DBEs.                                                                   from the Supplier Diversity and
                                                                                                      Development team on how it could
                    Native American Indian Chamber of Commerce ’Matchmaking’ Event – SCE
                                                                                                      better compete in the future.
                    hosted a matchmaking event in San Juan Capistrano with the Native American
                    Indian Chamber of Commerce. Eight Procurement agents provided an overview         “They encouraged us and kept
                    of SCE’s Supplier Diversity and procurement process with more than 30 Native      our spirits up when we weren’t
                    American businesses.                                                              successful,” says Hays, who owns the
                                                                                                      company with his wife, Denise. “They told us, ‘Keep working
                    NAWBO-LA’s PEAK Leadership Program – In 2010, National Association of
                                                                                                      on your numbers – I’m sure we’ll have a great future together.’ I took those
                    Women Business Owners - Los Angeles Chapter (NAWBO-LA) received a grant
                                                                                                      words to heart.”
                    to fund its PEAK Leadership Program to teach women business owners the
                    processes of innovative problem-solving. SCE Supplier Diversity and Development   Last November, the Native American-owned company was awarded a
                    sponsored the program reception and invited prospective women business            nearly $500,000 contract for paving work at an SCE service center in the
                    owners to attend the event and learn about the program’s benefits. In addition,   Antelope Valley. The contract adds to the 11-year-old company’s impressive
                    SCE provided a sponsorship for five minority business women to join NAWBO-LA,     credentials, which includes offices in four states, 150-plus employees and
                    enabling them to enroll in the PEAK Leadership Program at a 50% discounted        numerous awards.
                    rate as new members.
                                                                                                      “A lot of companies say they’re looking for diverse suppliers,” says Hays, “but
                    NAWBO-LA’s Leadership & Legacy Awards Luncheon Sponsorship –                      I’ve never seen anyone do outreach to Native American businesses like Edison.”
                    SCE Corporate Communications partnered with Supplier Diversity and
                    Development and sponsored NAWBO-LA’s Leadership & Legacy Awards                   Hays is working on several bids with SCE, and is excited about what the future
                    Luncheon in March. The two departments invited SCE Procurement agents,            holds.“We are honored to be one of Edison’s preferred contractors and look
                    business unit managers, and women business owners to the event, which             forward to a great partnership.”
                    provided them with networking opportunities to establish contacts and build
                                                                                                      Shown in photo: Hal Hays inspects work at an SCE job site.
                    future rapport.                                                                   When Hays’ Native American construction firm was unsuccessful
                                                                                                      in its initial bids, SCE’s Supplier Diversity and Development staff
                                                                                                      worked with the company to refine its bidding process.
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           SOUTHERN CALIFORNIA EDISON


     Alton Builders: Journey Leads to Contract and Enhanced Skills
                                                                                                           A DDITIONAL     OUTREACH ACTIVITIES

     Alton Builders, Inc.’s prequalification process with SCE felt like a journey to
     owner Joe Finneran – one that would require a business plan, financial plan,                          Capacity Building
     statement of qualifications and a vendor number to bid on SCE jobs.                                   In 2010, SCE was one of five corporations participating in Southern California
                                                                                                           Minority Business Development Council’s Capacity Building Initiative, a
     “But the Supplier Diversity and Development group’s ’stick to it’ attitude made
                                                                                                           program aimed at growing DBE capacity through one-on-one coaching by
     the journey well worth it,” Finneran says, resulting in two contracts valued
                                                                                                           corporate mentors.
     at nearly $3 million and participation in an education program targeted to
     construction firms.                                                                                   The initiative’s goal is for participating corporate members to share and utilize
                                                                                                           DBE participants and help increase their capacity. SCE worked with a “mentee,”
                                “After unsuccessfully bidding on a half dozen SCE contracts,
                                                                                                           providing guidance and insight on how to expand its business. In addition to
                                           we received feedback from Supplier Diversity and
                                                                                                           completing the two-year program, SCE’s mentee gained exposure to other
                                           Development on where we fell short,” Finneran
                                                                                                           corporate members, which resulted in two new contracts.
                                          says. In 2010, the service-disabled veteran-
                                         owned construction firm finally won contracts for
                                                                                                           Native American
                                         work at an Edison vehicle maintenance facility in
                                        San Dimas and a testing facility in Westminster.                   SCE continued to support Walking Shield American Indian Society to promote
                                                                                                           initiatives enhancing educational opportunities for the local American Indian
                                      Last year, the company, headquartered in Laguna Hills,
                                                                                                           community.
                                      was one of 11 firms sponsored by SCE to attend the
                                     Turner Construction School of Management.                             In addition, SCE gave a grant to UC Irvine’s American Indian Summer Resource
                                                                                                           Program, a two-week course aimed at giving young American Indians an
     “The program is aimed at enhancing the technical, administrative, and mana-
                                                                                                           opportunity to learn about computer technology. The company also supported
     gerial skills of diverse suppliers in construction management,” Finneran says.
                                                                                                           the Dry Creek Rancheria of Pomo Indian seminars on “How to Market
     Through SCE’s partnership with Turner Construction, participants gain insights
                                                                                                           Your Business.”
     and tools to help them target their business for quality growth and develop new
     strategic business relationships.                                                                     SCE’s activities at the Native American Indian Chamber of Commerce Expo resulted
                                                                                                           in five new contracts in 2010. From this expo, the company also recruited several
     “We attended 14 classes over a seven-week period,” Finneran says, “covering
                                                                                                           businesses to participate in its capacity building programs – the Turner School of
     such topics as prequalifying and providing estimates.” His team also met other
                                                                                                           Construction Management and SCE Supplier University.
     diverse construction firms. “It’s useful any time you can tune-up your sales and
     management skills and be out there in the marketplace and network,” he says.                          The company also sponsored the 35th Indian Progress in Business Award Event
                                                                                                           and served on the National Center for American Indian Enterprise Development’s
     Since Finneran started working with SCE, others have asked him how Alton                              resource council and board of directors.
     Builders became successful in winning work with the utility. “I tell them you
     need to be persistent with Edison, follow-up and have a positive outlook,” he
     adds. “Once you’re in, they’ll assist you and take you where you want to go.”

     Shown in photo: Joe Finneran, owner of Alton Builders (l), with Jason Collette (r), SCE Procurement
            agent. SCE sponsored Joe Finneran’s service-disabled veteran-owned construction firm to
        attend the Turner Construction School of Management to increase the company’s capabilities.
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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    Service-Disabled Veteran                                                                   2010 A WARDS            AND RECOGNITION

                    As a result of efforts and outreach to service-disabled veteran business                   For its supplier diversity activities, SCE received numerous honors and
                    enterprises (SDVBE), SCE achieved a 247% growth in SDVBE spending over                     awards, including:
                    2009 levels. The company’s work in 2010 included hosting one-on-one
                    meetings and bringing Procurement agents together with SDVBEs, leading                     •   Edison Electric Institute’s
                    to bidding opportunities, de-briefings, contracts, and participants in its capacity            Excellence Award
                    building programs.                                                                         •   Latin Business
                    In SCE’s leadership role assisting the National Elite SDVBE, the company                       Association’s Corporation
                    worked closely with the group’s California chapters, including San Diego,                      of the Year Award
                    Riverside, Inland Empire, Los Angeles, and San Francisco, to establish a new               •   Asian Enterprise
                    Orange County chapter.                                                                         Magazine’s Best
                    Over the past five years, SCE has continued to sponsor the CPUC Joint Utilities’               Companies for Asian
                    workshops on “SDVBE Utilization Challenges and Opportunities.” Working with                    American and Pacific
                    other utilities, SCE developed an approach to increase the number of prospective               Islanders and Small
                    SDVBEs that can perform utility-related services. This allowed the utilities to share          Business Advocate of
                    information on firms currently doing business with them; host more one-on-one                  the Year
                    meetings with procurement agents, prime contractors and subcontractors; develop            •   U.S. Hispanic Chamber         SCE participated in the U.S. Small Business Administration Annual
                                                                                                                                                 Small Business Week luncheon. SCE’s Diversity Manager Grace
                    a mentor-protégé program to help expand and strengthen businesses bidding on                   of Commerce’s Million         Whitcomb (c) was honored with the 2010 Minority Small Business
                    contracts; and better identify business capabilities contained in the Department               Dollar Club                   Champion of the Year Award. She’s with Rachel Baranick, acting
                                                                                                                                                 district SBA director (l) and Joe Alderete, SCE manager of Supplier
                    of General Services’ supplier database. The project led to an increase in all utilities’                                     Diversity and Development (r).
                    2010 SDVBE spending.                                                                       •   California Hispanic
                                                                                                                   Chamber of Commerce’s Supplier Diversity Recognition Award
                    DBE Symposium                                                                              •   Southern California Minority Business Development Council’s Corporate
                    SCE enhanced its second annual Supplier Forum by creating a DBE Symposium                      Achievement Award
                    as part of the event. This offered diverse suppliers the opportunity to meet with          •   U.S. Small Business Administration’s Minority Small Business Champion of
                    Supply Management category managers and Procurement agents as well as                          the Year and Region IX Champion (Arizona, California, Nevada, Hawaii, and
                    SCE’s largest prime suppliers. SCE also offered seminars on “Doing Business with               Guam) Awards
                    Edison,” “Personal Best Success for Diverse Business Owners,” and “Building and
                    Growing Your Business.”                                                                    •   Filipino American Chamber of Commerce of Orange County’s Emerald
                                                                                                                   Award for Best Green and Conservation Company

                                                                                                               •   Asian Business Association of Orange County’s Small Business Champion
                                                                                                                   of the Year Award




                                                                                                                                                                                                                         17


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                                        S UMMARY             OF PURCHASES AND/OR CONTRACTS                                       (9.1.2 )

                                                                                                          WMDVBE Annual Results by Ethnicity

                                                                                                                                                                      2010

                                                                                                                                         Direct                Sub                 Total $         %

                                            1.                       Asian Pacific                                              $104,474,468.84            $69,256,774.69     $173,731,244.53     4.3%
                                            2.                       African American                                             $49,133,532.37           $24,242,083.00      $73,375,615.37     1.8%
                                            3.     Minority          Latino                                                     $203,470,356.88            $31,757,124.00     $235,227,480.88     5.8%
                                           4.      Male              Native American                                                $8,119,711.06           $1,256,846.00       $9,376,557.06     0.2%
                                           5.                        Other                                                                        $0.00              $0.00               $0.00    0.0%
                                           6.                        Total Minority Male                                        $365,198,069.15           $126,512,828.69     $491,710,896.84    12.1%
                                           7.                        Asian Pacific                                                $32,962,415.98            $7,353,681.31      $40,316,097.29     1.0%
                                           8.                        African American                                             $59,161,153.78            $2,100,620.00      $61,261,773.78     1.5%
                                           9.      Minority          Latino                                                       $52,821,059.48            $4,686,534.00      $57,507,593.48     1.4%
                                           10.     Female            Native American                                                $9,499,138.57            $235,946.00        $9,735,084.57    0.2%
                                           11.                       Other                                                               $688,147.47        $3,178,066.00       $3,866,213.47    0.1%
                                           12.                       Total Minority Female                                      $155,131,915.28            $17,554,847.31     $172,686,762.59    4.2%


                                           13.     Total Minority Business Enterprise (MBE)                                     $520,329,984.43           $144,067,675.00     $664,397,659.43    16.3%
                                           14.     Women Business Enterprise (WBE)                                              $314,487,902.70           $105,362,712.30     $419,850,614.00    10.3%
                                           15.     Subtotal Women, Minority Business Enterprise (MWBE)                          $834,817,886.13           $249,430,387.30    $1,084,248,273.43   26.6%
                                           16.     Service-Disabled Veteran Business Enterprise (SDVBE)                            $9,790,785.01           $10,802,298.00      $20,593,083.01    0.5%
                                           17.     TOTAL WMDVBE                                                                 $844,608,671.44           $260,232,685.30    $1,104,841,356.44   27.1%
                                           18.     Net Procurement**                      $4,078,687,330.06
                                        ** Note: Net Procurement includes purchase order, non-purchase order, and credit card dollars.




18


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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    S UMMARY           O F P U R C H A S E S A N D / OR CONTRACTS                            (9.1.2)

                                                                  WMDVBE Annual Results by Product and Service Categories

                                                                                                   Products                      Services                    Total
                                                                                                         $             %             $           %             $               %
                       1.                       Asian Pacific                    Direct          $39,855,611.55       3.2%     $64,618,857.29    2.3%   $104,474,468.84      2.6%
                       2.                       African American                 Direct          $14,421,675.42       1.1%     $34,711,856.95    1.2%    $49,133,532.37      1.2%
                       3.       Minority        Latino                           Direct          $51,699,666.32       4.1%    $151,770,690.56    5.4%   $203,470,356.88      5.0%
                       4.       Male            Native American                  Direct               $72,987.36      0.0%      $8,046,723.70    0.3%     $8,119,711.06      0.2%
                       5.                       Other                            Direct                       $0.00   0.0%               $0.00   0.0%                $0.00   0.0%
                       6.                       Total Minority Male              Direct        $106,049,940.66        8.4%    $259,148,128.49    9.2%   $365,198,069.15      9.0%
                       7.                       Asian Pacific                    Direct              $224,817.23      0.0%     $32,737,598.75    1.2%    $32,962,415.98      0.8%
                       8.                       African American                 Direct               $28,116.78      0.0%     $59,133,037.00    2.1%    $59,161,153.78      1.5%
                       9.       Minority        Latino                           Direct          $28,023,852.59       2.2%     $24,797,206.89    0.9%    $52,821,059.48      1.3%
                       10.      Female          Native American                  Direct               $53,826.90      0.0%      $9,445,311.67    0.3%     $9,499,138.57      0.2%
                       11.                      Other                            Direct                       $0.00   0.0%       $688,147.47     0.0%      $688,147.47       0.0%
                       12.                      Total Minority Female            Direct          $28,330,613.50       2.2%    $126,801,301.78    4.5%   $155,131,915.28      3.8%


                                Total Minority Business
                       13.                                                       Direct
                                Enterprise (MBE)                                               $134,380,554.15 10.6%          $385,949,430.28 13.7%     $520,329,984.43      12.8%
                                Women Business
                       14.                                                       Direct
                                Enterprise (WBE)                                                 $82,030,122.72       6.5%    $232,457,778.98    8.3%   $314,487,901.70      7.7%
                                Total Women, Minority Business
                       15.                                                       Direct
                                Enterprise (MWBE)                                              $216,410,676.87 17.1%          $618,407,209.26 22.0%     $834,817,886.13      20.5%
                                Service-Disabled Veteran
                       16.                                                       Direct                                                          0.2%
                                Business Enterprise (SDVBE)                                       $2,870,408.19       0.2%      $6,920,376.82             $9,790,785.01      0.2%
                       17.      TOTAL WMDVBE                                     Direct        $219,281,085.06 17.3%          $625,327,586.08 22.2%     $844,608,671.14      20.7%
                       18.      Net Procurement                                             $4,078,687,330.06
                       19.      Total Product Procurement**                                 $1,264,722,481.88
                       20.      Total Service Procurement**                                 $2,813,964,848.18
                       21.      Net Procurement**                                           $4,078,687,330.06
                    Percentage for “Products” expenditures are WMDVBE compared to “Total Product Procurement” expenditures.
                    Percentage for “Services” expenditures are WMDVBE compared to “Total Service Procurement” expenditures.
                    Percentage for “Total” expenditures are WMDVBE compared to “Net Procurement” expenditures.


                    **Note: Net Procurement includes purchase order, non-purchase order, and credit card dollars.                                                                              19


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           SOUTHERN CALIFORNIA EDISON




                                        S UMMARY            OF PURCHASES AND/OR CONTRACTS                                         (9.1.2)

                                                                                        WMDVBE Procurement by Product and Service Categories

                                                                                                                        Products                       Services                    Total
                                                                                                                              $            %              $           %              $              %
                                           1.                       Asian Pacific                      Sub            $57,904,131.82       4.6%     $11,352,642.87    0.4%     $69,256,774.69      1.7%
                                           2.                       African American                   Sub            $13,371,029.14       1.1%     $10,871,053.86    0.4%     $24,242,083.00      0.6%
                                           3.      Minority         Latino                             Sub                $410,526.43      0.0%     $31,346,597.57    1.1%     $31,757,124.00      0.8%
                                           4.      Male             Native American                    Sub                  $22,399.96     0.0%      $1,234,446.04    0.0%      $1,256,846.00      0.0%
                                           5.                       Other                              Sub                         $0.00   0.0%               $0.00   0.0%                 $0.00   0.0%
                                           6.                       Total Minority Male                Sub            $71,708,087.35       5.7%     $54,804,740.34    1.9%    $126,512,827.69      3.1%
                                           7.                       Asian Pacific                      Sub                $175,976.74      0.0%      $7,177,704.57    0.3%      $7,353,681.31      0.2%
                                           8.                       African American                   Sub                $732,632.51      0.1%      $1,367,987.49    0.0%      $2,100,620.00      0.1%
                                           9.      Minority         Latino                             Sub                $290,578.61      0.0%      $4,395,955.39    0.2%      $4,686,534.00      0.1%
                                          10.      Female           Native American                    Sub                $180,470.60      0.0%         $55,475.40    0.0%        $235,946.00      0.0%
                                          11.                       Other                              Sub                   $5,384.64     0.0%      $3,172,681.36    0.1%      $3,178,066.00      0.1%
                                          12.                       Total Minority Female              Sub             $1,385,043.10       0.1%     $16,169,804.21    0.6%     $17,554,847.31      0.4%


                                                   Total Minority Business
                                          13.
                                                   Enterprise (MBE)                                    Sub            $73,093,130.44       5.8%     $70,974,544.56    2.5%    $144,067,675.00      3.5%
                                                   Women Business
                                          14.
                                                   Enterprise (WBE)                                    Sub            $46,619,146.86       3.7%     $58,743,565.39    2.1%    $105,362,712.25      2.6%
                                                   Total Women, Minority Business
                                          15.
                                                   Enterprise (MWBE)                                   Sub          $119,712,277.30        9.5%    $129,718,109.95    4.6%    $249,430,387.25      6.1%
                                                   Service-Disabled Veteran
                                          16.
                                                   Business Enterprise (SDVBE)                         Sub             $1,254,188.25       0.1%      $9,548,109.75    0.3%     $10,802,298.00      0.3%
                                          17.      TOTAL WMDVBE                                        Sub          $120,966,465.55        9.6%    $139,266,219.70    4.9%    $260,232,685.25      6.4%
                                          18.      Net Procurement**                                              $1,264,722,481.88               $2,813,964,848.18          $4,078,687,330.06
                                        ** Note: Net Procurement includes purchase order, non-purchase order, and credit card dollars.




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                        SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                                                                                                                 WMDVBE Procurement by Standard Industrial Categories – Detail
                                                                                                                                                                                                                                                                                          Subtotal     Service-
                                                                                                                                                                                                                                                                                          Women        Disabled
                                                                                                                                                                                                                                                             Minority       Women         Minority     Veterans
                                                                                                                                                                                                                                                            Business       Business      Business     Business
                                                                          Asian Pacific                African American                     Latino                   Native American                   Other                    Total Minority
                                                                                                                                                                                                                                                            Enterprise     Enterprise    Enterprise   Enterprise      Total         Total
                                   SIC Category                        Male          Female          Male          Female            Male             Female       Male         Female          Male           Female         Male          Female            (MBE)          (WBE)        (WMBE)       (SDVBE)       WMDVBE        Dollars

            07. Agricultural Services                           $            $0                $0     $13,844         $2,696       $8,505,432                $0           $0               $0         $0              $0    $8,519,276            $2,696    $8,521,972    $13,235,506   $21,757,478           $0   $21,757,478   $62,071,037
                                                                %         0.0%              0.0%        0.0%           0.0%            13.7%              0.0%         0.0%             0.0%       0.0%            0.0%         13.7%              0.0%         13.7%          21.3%         35.1%         0.0%         35.1%

            15. General Business Contractors                    $     $596,761      $5,181,885      $3,106,475             $40    $55,760,333          $54,513      $21,356      $193,118             $0              $0   $59,484,925     $5,429,556      $64,914,481    $24,747,923   $89,662,404   $5,547,276   $95,209,680 $224,442,424
                                                                %        0.3%            2.3%            1.4%             0.0%         24.8%             0.0%         0.0%          0.1%           0.0%            0.0%         26.5%           2.4%            28.9%          11.0%         39.9%         2.5%         42.4%

            16. Heavy Construction Other Than Building Constr   $    $4,426,088       $135,792      $7,313,642       $54,096      $60,070,931        $3,094,756   $7,623,385    $3,675,189            $0              $0   $79,434,046     $6,959,832      $86,393,878 $127,345,466 $213,739,344      $1,961,790 $215,701,134 $489,109,422
                                                                %         0.9%           0.0%            1.5%          0.0%            12.3%              0.6%         1.6%          0.8%          0.0%            0.0%         16.2%           1.4%            17.7%        26.0%        43.7%            0.4%        44.1%

            17. Special Trade Contractors                       $     $354,049            $41,686   $1,567,770       $16,832       $3,976,084         $666,943     $159,234      $160,194             $0              $0    $6,057,138       $885,655       $6,942,793    $14,359,529   $21,302,322   $1,087,675   $22,389,998 $118,825,531
                                                                %        0.3%               0.0%         1.3%          0.0%             3.3%             0.6%         0.1%          0.1%           0.0%            0.0%          5.1%           0.7%             5.8%          12.1%         17.9%         0.9%         18.8%

            23. Apparel and Other Textile Products              $      $36,278                 $0   $1,606,675               $0     $312,462          $184,411            $0       $10,910            $0              $0    $1,955,415       $195,321       $2,150,736     $1,157,597    $3,308,333    $108,702     $3,417,035    $4,511,309
                                                                %        0.8%               0.0%        35.6%             0.0%         6.9%              4.1%          0.0%          0.2%          0.0%            0.0%         43.3%           4.3%            47.7%          25.7%         73.3%        2.4%          75.7%

            24. Lumber and Wood Products                        $            $0                $0    $182,959                $0            $0                $7           $0     $179,361             $0              $0     $182,959        $179,367         $362,326     $2,391,254    $2,753,580     $12,388     $2,765,968   $19,160,073
                                                                %         0.0%              0.0%        1.0%              0.0%          0.0%              0.0%         0.0%         0.9%           0.0%            0.0%         1.0%            0.9%             1.9%          12.5%         14.4%        0.1%          14.4%

            25. Furniture and Fixtures                          $     $299,535                 $0     $78,509        $19,194        $306,463            $1,463      $10,854                $0         $0              $0     $695,362            $20,657      $716,019     $1,870,924    $2,586,943      $1,216     $2,588,158   $19,506,149
                                                                %        1.5%               0.0%        0.4%           0.1%            1.6%              0.0%         0.1%              0.0%       0.0%            0.0%         3.6%               0.1%          3.7%           9.6%         13.3%        0.0%          13.3%

            26. Paper and Allied Products                       $      $11,186            $64,687     $69,228                $0      $23,223          $563,856            $0               $0         $0              $0     $103,636        $628,543         $732,179        $47,820     $779,999       $1,868      $781,867     $8,183,724
                                                                %        0.1%               0.8%        0.8%              0.0%         0.3%              6.9%          0.0%             0.0%       0.0%            0.0%         1.3%            7.7%             8.9%           0.6%         9.5%         0.0%          9.6%

            27. Printing and Publishing                         $      $20,572        $125,974         $3,622              $87        $5,493          $232,369            $0           $4,018         $0              $0      $29,686        $362,448         $392,134       $162,257     $554,391         $214      $554,605     $5,241,025
                                                                %        0.4%            2.4%           0.1%              0.0%         0.1%              4.4%          0.0%             0.1%       0.0%            0.0%         0.6%            6.9%             7.5%           3.1%        10.6%          0.0%        10.6%

            28. Chemicals and Allied Products                   $      $22,717                 $0    $396,095                $0     $553,857               $14      $11,373                $0         $0              $0     $984,042               $14       $984,055     $2,576,342    $3,560,397     $32,258     $3,592,655   $34,816,631
                                                                %        0.1%               0.0%        1.1%              0.0%         1.6%               0.0%        0.0%              0.0%       0.0%            0.0%         2.8%               0.0%          2.8%           7.4%         10.2%        0.1%          10.3%

            29. Petroleum and Coal Products                     $            $0                $0           $0               $0            $5                $0           $0               $0         $0              $0            $5                $0             $5    $2,787,555    $2,787,560           $0    $2,787,560   $24,539,532
                                                                %         0.0%              0.0%         0.0%             0.0%          0.0%              0.0%         0.0%             0.0%       0.0%            0.0%          0.0%              0.0%           0.0%         11.4%         11.4%         0.0%         11.4%

            30. Rubber and Miscellaneous Plastics Products      $            $0                $0     $89,303                $0     $369,308          $480,715            $0               $0         $0              $0     $458,611        $480,715         $939,326        $49,484     $988,810       $5,743      $994,553     $1,101,888
                                                                %         0.0%              0.0%        8.1%              0.0%        33.5%             43.6%          0.0%             0.0%       0.0%            0.0%        41.6%           43.6%            85.2%           4.5%        89.7%         0.5%         90.3%

            32. Stone, Clay, and Glass Products                 $         $490                 $0    $301,101                $0   $10,474,083        $3,591,311           $0               $1         $0              $0   $10,775,673     $3,591,312      $14,366,985       $359,046   $14,726,032    $138,439    $14,864,470   $20,395,503
                                                                %         0.0%              0.0%        1.5%              0.0%         51.4%             17.6%         0.0%             0.0%       0.0%            0.0%         52.8%          17.6%            70.4%           1.8%         72.2%        0.7%          72.9%

            33. Primary Metal Industries                        $   $47,912,251                $0    $250,522                $0    $2,779,779          $21,259       $1,680                $0         $0              $0   $50,944,231           $21,259   $50,965,490     $8,188,982   $59,154,472     $85,324    $59,239,796 $151,984,950
                                                                %        31.5%              0.0%        0.2%              0.0%          1.8%             0.0%         0.0%              0.0%       0.0%            0.0%         33.5%              0.0%         33.5%           5.4%         38.9%        0.1%          39.0%

            34. Fabricated Metal Products                       $     $632,398                 $0    $707,702                $0     $496,656          $618,282      $34,944                $0         $0              $0    $1,871,699       $618,282       $2,489,981     $1,464,622    $3,954,603     $84,372     $4,038,975   $70,139,063
                                                                %        0.9%               0.0%        1.0%              0.0%         0.7%              0.9%         0.0%              0.0%       0.0%            0.0%          2.7%           0.9%             3.6%           2.1%          5.6%        0.1%           5.8%

            35. Industrial Machinery and Equipment              $      $50,388        $152,733      $4,261,516               $0    $3,061,629          $79,154         $627                $5         $0              $0    $7,374,160       $231,892       $7,606,052     $2,589,916   $10,195,968    $377,968    $10,573,936   $22,727,945
                                                                %        0.2%            0.7%           18.8%             0.0%         13.5%             0.3%          0.0%             0.0%       0.0%            0.0%         32.4%           1.0%            33.5%          11.4%         44.9%        1.7%          46.5%

            36. Electronic and Other Electric Equipment         $   $36,244,903           $53,864   $5,052,712               $0   $24,836,887    $22,105,122        $10,900            $1,104         $0              $0   $66,145,402   $22,160,089       $88,305,491    $30,884,862 $119,190,353     $387,894 $119,578,247 $397,603,898
                                                                %         9.1%              0.0%         1.3%             0.0%          6.2%           5.6%           0.0%              0.0%       0.0%            0.0%         16.6%          5.6%             22.2%           7.8%        30.0%         0.1%        30.1%

            37. Transportation Equipment                        $            $0                $0      $3,419                $0         $268                 $0           $0               $0         $0              $0       $3,687                 $0        $3,687           $954        $4,641        $115        $4,756      $357,684
                                                                %         0.0%              0.0%        1.0%              0.0%          0.1%              0.0%         0.0%             0.0%       0.0%            0.0%         1.0%               0.0%          1.0%            0.3%         1.3%         0.0%         1.3%

            38. Instruments and Related Products                $    $1,460,226       $100,287      $1,451,710      $687,245       $2,923,155         $291,741       $2,256                $0         $0          $5,350    $5,837,348     $1,084,623       $6,921,970    $23,078,369   $30,000,339    $115,776    $30,116,114 $250,681,830
                                                                %         0.6%           0.0%            0.6%          0.3%             1.2%             0.1%         0.0%              0.0%       0.0%            0.0%          2.3%           0.4%             2.8%           9.2%         12.0%        0.0%          12.0%

            39. Miscellaneous Manufacturing Industries          $            $0                $0    $134,339                $0      $33,302                 $5           $0               $0         $0              $0     $167,640                 $5      $167,645       $100,137     $267,782       $9,118      $276,900      $733,170
                                                                %         0.0%              0.0%       18.3%              0.0%         4.5%               0.0%         0.0%             0.0%       0.0%            0.0%        22.9%               0.0%         22.9%          13.7%        36.5%         1.2%         37.8%

            42. Trucking and Warehousing                        $         $600                 $0           $0               $0            $0           $4,599            $0               $0         $0              $0         $600             $4,599        $5,199        $58,730       $63,929     $36,135      $100,064     $3,830,208
                                                                %         0.0%              0.0%         0.0%             0.0%          0.0%             0.1%          0.0%             0.0%       0.0%            0.0%          0.0%              0.1%          0.1%           1.5%          1.7%        0.9%          2.6%




                                                                                                                                                                                                                                                                                                                                               21


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             SOUTHERN CALIFORNIA EDISON




                                                                                                     WMDVBE Procurement by Standard Industrial Categories – Detail
                                                                                                                                                                                                                                                                               Subtotal      Service-
                                                                                                                                                                                                                                                                               Women         Disabled
                                                                                                                                                                                                                                                 Minority       Women          Minority      Veterans
                                                                                                                                                                                                                                                Business       Business       Business      Business
                                                             Asian Pacific                 African American                     Latino                   Native American                  Other                     Total Minority
                                                                                                                                                                                                                                                Enterprise     Enterprise     Enterprise    Enterprise      Total         Total
                               SIC Category               Male          Female           Male          Female            Male             Female       Male         Female         Male           Female          Male          Female            (MBE)          (WBE)         (WMBE)        (SDVBE)       WMDVBE        Dollars

      45. Transportation By Air                    $            $0                $0            $0               $0            $0                $0           $0              $0         $0               $0            $0                $0             $0             $0             $0           $0            $0     $593,661
                                                   %         0.0%              0.0%          0.0%             0.0%          0.0%              0.0%         0.0%            0.0%       0.0%             0.0%          0.0%              0.0%           0.0%           0.0%           0.0%         0.0%          0.0%

      47. Transportation Services                  $            $0                $0            $0               $0     $354,350                 $0           $0           $136          $0               $0     $354,350              $136       $354,486        $50,249      $404,736             $0     $404,736    $19,116,778
                                                   %         0.0%              0.0%          0.0%             0.0%         1.9%               0.0%         0.0%            0.0%       0.0%             0.0%         1.9%               0.0%          1.9%           0.3%          2.1%           0.0%         2.1%

      48. Communications                           $            $0       $852,174               $0               $0            $0                $0           $0              $0         $0               $0            $0       $852,174         $852,174       $596,231     $1,448,405            $0    $1,448,405   $30,895,392
                                                   %         0.0%           2.8%             0.0%             0.0%          0.0%              0.0%         0.0%            0.0%       0.0%             0.0%          0.0%           2.8%             2.8%           1.9%           4.7%          0.0%          4.7%

      49. Electric, Gas, and Sanitary Services     $    $1,241,413                $0            $0               $0    $9,373,766          $11,233            $0              $0         $0               $0   $10,615,179           $11,233   $10,626,412     $1,810,250    $12,436,662            $0   $12,436,662   $53,682,134
                                                   %         2.3%              0.0%          0.0%             0.0%         17.5%             0.0%          0.0%            0.0%       0.0%             0.0%         19.8%              0.0%         19.8%           3.4%          23.2%          0.0%         23.2%

      50. Wholesale Trade-Durable Goods            $   $11,061,866           $28,995   $12,120,578       $18,102       $5,699,281         $373,330      $12,777               $1         $0             $35    $28,894,502       $420,462      $29,314,964    $48,702,186    $78,017,150    $2,737,246   $80,754,396 $214,903,182
                                                   %         5.1%              0.0%          5.6%          0.0%             2.7%             0.2%         0.0%             0.0%       0.0%             0.0%         13.4%           0.2%            13.6%          22.7%          36.3%          1.3%         37.6%

      51. Wholesale Trade-Nondurable Goods         $      $27,506              $228      $930,913        $36,208        $238,334            $3,757       $9,977        $42,917           $0               $0    $1,206,731           $83,111    $1,289,841     $2,212,894     $3,502,735      $15,771     $3,518,506   $22,485,970
                                                   %        0.1%               0.0%         4.1%           0.2%            1.1%              0.0%         0.0%           0.2%         0.0%             0.0%          5.4%              0.4%          5.7%           9.8%          15.6%         0.1%          15.6%

      52. Building Materials and Garden Supplies   $            $0                $0     $155,425                $0       $1,501                 $5           $0              $0         $0               $0     $156,926                 $5      $156,931       $186,326      $343,257       $10,400      $353,657      $889,979
                                                   %         0.0%              0.0%        17.5%              0.0%         0.2%               0.0%         0.0%            0.0%       0.0%             0.0%        17.6%               0.0%         17.6%          20.9%         38.6%          1.2%         39.7%

      58. Eating and Drinking Places               $            $0       $168,539            $723                $0     $122,087          $710,391            $0              $0         $0               $0     $122,810        $878,930       $1,001,740         $5,687     $1,007,427            $0    $1,007,427    $2,798,489
                                                   %         0.0%           6.0%             0.0%             0.0%         4.4%             25.4%          0.0%            0.0%       0.0%             0.0%         4.4%           31.4%            35.8%           0.2%          36.0%          0.0%         36.0%

      63. Insurance Carriers                       $            $0                $0            $0               $0            $0                $0           $0              $0         $0               $0            $0                $0             $0             $0             $0           $0            $0    $1,218,715
                                                   %         0.0%              0.0%          0.0%             0.0%          0.0%              0.0%         0.0%            0.0%       0.0%             0.0%          0.0%              0.0%           0.0%           0.0%           0.0%         0.0%          0.0%

      65. Real Estate                              $            $0                $0            $0               $0            $0                $0           $0              $0         $0               $0            $0                $0             $0      $245,547      $245,547             $0     $245,547      $558,766
                                                   %         0.0%              0.0%          0.0%             0.0%          0.0%              0.0%         0.0%            0.0%       0.0%             0.0%          0.0%              0.0%           0.0%         43.9%         43.9%           0.0%        43.9%

      72. Personal Services                        $       $1,901                 $0            $0               $0            $0                $0           $0              $0         $0               $0       $1,901                 $0        $1,901              $0        $1,901            $0       $1,901      $336,154
                                                   %        0.6%               0.0%          0.0%             0.0%          0.0%              0.0%         0.0%            0.0%       0.0%             0.0%         0.6%               0.0%          0.6%            0.0%          0.6%          0.0%         0.6%

      73. Business Services                        $   $21,929,402     $7,254,609      $29,127,730    $45,517,905     $28,860,493    $16,122,621       $171,973     $3,665,067           $0         $50,341    $80,089,598   $72,610,543 $152,700,141         $54,645,629 $207,345,770       $655,560 $208,001,330$1,011,323,935
                                                   %         2.2%           0.7%             2.9%           4.5%            2.9%           1.6%           0.0%           0.4%         0.0%            0.0%           7.9%          7.2%        15.1%                5.4%        20.5%           0.1%        20.6%

      75. Auto Repair, Services, and Parking       $            $0                $0      $69,939                $0      $85,850          $587,260            $0              $0         $0               $0     $155,790        $587,260         $743,050       $257,120     $1,000,170       $5,503     $1,005,673    $4,773,968
                                                   %         0.0%              0.0%         1.5%              0.0%         1.8%             12.3%          0.0%            0.0%       0.0%             0.0%         3.3%           12.3%            15.6%           5.4%          21.0%         0.1%          21.1%

      76. Miscellaneous Repair Services            $      $79,605              $472       $30,644         $3,238        $395,639              $964            $7              $0         $0             $25      $505,895             $4,699      $510,594     $1,024,074     $1,534,668      $89,124     $1,623,792   $20,596,516
                                                   %        0.4%               0.0%         0.1%           0.0%            1.9%               0.0%         0.0%            0.0%       0.0%             0.0%         2.5%               0.0%          2.5%           5.0%           7.5%         0.4%           7.9%

      78. Motion Pictures                          $            $0                $0            $0               $0            $0                $0           $0              $0         $0               $0            $0                $0             $0        $6,077         $6,077            $0       $6,077     $1,263,782
                                                   %         0.0%              0.0%          0.0%             0.0%          0.0%              0.0%         0.0%            0.0%       0.0%             0.0%          0.0%              0.0%           0.0%          0.5%           0.5%          0.0%         0.5%

      79. Amusement and Recreation Services        $            $0                $0            $0               $0            $0                $0           $0              $0         $0               $0            $0                $0             $0             $0             $0           $0            $0      $64,068
                                                   %         0.0%              0.0%          0.0%             0.0%          0.0%              0.0%         0.0%            0.0%       0.0%             0.0%          0.0%              0.0%           0.0%           0.0%           0.0%         0.0%          0.0%

      80. Health Services                          $            $0                $0            $0               $0            $0                $0           $0              $0         $0               $0            $0                $0             $0      $426,277      $426,277             $0     $426,277     $1,172,427
                                                   %         0.0%              0.0%          0.0%             0.0%          0.0%              0.0%         0.0%            0.0%       0.0%             0.0%          0.0%              0.0%           0.0%         36.4%         36.4%           0.0%        36.4%

      81. Legal Services                           $    $1,748,439     $1,014,531        $154,998        $15,039       $1,402,497         $697,435            $0              $0         $0               $0    $3,305,934     $1,727,004       $5,032,938       $334,834     $5,367,771     $793,383     $6,161,154   $43,503,343
                                                   %         4.0%           2.3%            0.4%           0.0%             3.2%             1.6%          0.0%            0.0%       0.0%             0.0%          7.6%           4.0%            11.6%           0.8%          12.3%         1.8%          14.2%

      87. Engineering and Management Services      $   $45,572,670   $25,139,641        $4,193,525    $14,891,093     $14,204,334        $7,010,078   $1,305,214    $1,803,065           $0       $3,810,463   $65,275,742   $52,654,339 $117,930,082         $51,889,959 $169,820,040      $6,291,828 $176,111,868 $718,547,073
                                                   %         6.3%          3.5%              0.6%           2.1%            2.0%              1.0%         0.2%          0.3%         0.0%             0.5%          9.1%          7.3%        16.4%                7.2%        23.6%            0.9%        24.5%




22


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                          Natural Gas             Diesel              Nuclear              LPG              Other                                        $203,170.00
                                                                                                                                               Subcontracting $ $126,512,827.69                 $17,554,847.31 $144,067,675.00               $105
                             0%                    0%                  0%                 1.5%
                                                                                                                                               TOTAL $                 $491,710,896.84 $172,686,762.59                $664,397,659.43        $419
                                                                                                            TOTAL                                         $1,777,813.00
                                                                                                                                               Direct %                              9.0%                    3.8%                  12.8%
                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN                                                                   Subcontracting %                      3.1%                    0.4%                    3.5%
                                                                                                                                               TOTAL %                              12.1%                    4.2%                  16.3%

                   P R O G R A PROGRAM EXPENSES_9.1.3
                   WMDVBEM E X P E N S E S (9.1.3)                                                        G OAL PROGRESS
                                                                                                          Goal Progress_9.1.4( 9 . 1 . 4 )     Net Procurement**                                $4,078,687,330.06
                                                                                                                                             **Note: Net Procurement includes purchase order, non-purchase order, and credit card dollars.
                        Expense Category                               2010                                 Category                              Current Year Results                    Current Year Goals
                        Wages                                       $505,145.00                             Minority Male                                  12.1%                                    10.0%
                        Other Employee Expenses                     $265,956.00                             Minority Female                                  4.2%                                     5.0%
                        Program Expenses                            $508,349.00                             Minority Business
                                                                                                                                                                                                                     Annual Product Results
                        Reporting Expenses                                 $0.00                            Enterprise (MBE)                               16.3%                                    15.0%
                                                                                                                                                                                                                                    LPG
                        Training                                           $0.00                            Women Business
                                                                                                                                                                                                     Volume:
                                                                                                            Enterprise (WBE)                               10.3%                                      5.0%
                        Consultants                                 $295,193.00                                                                                                                      Gallons
                                                                                                            Subtotal Women, Minority                                                                   (000)                   %
                        Other                                       $203,170.00                             Business Enterprise                          26.6%                                      20.0%
                                                                                                                                                 Minority Male
                                                                                                            (WMBE)
                        TOTAL                                     $1,777,813.00                                                                  Asian Pacific                                           0                    0.0%
                                                                                                            Service-Disabled Veteran
                                                                                                            Business Enterprise                  African American
                                                                                                                                                          0.5%                                           0
                                                                                                                                                                                                      1.5%                    0.0%
                                                                                                            (SDVBE)                              Latino                                                  0                    0.0%
                                                                                                                                                 Native American                                        0                     0.0%
                                                                                                            TOTAL WMDVBE                                 27.1%                                      25.0%
                   Goal Progress_9.1.4                                                                                                           Other                                                  0                     0.0%
                                                                                                                                                 Total Minority Male                                     0                    0.0%
                        Category                             Current Year Results    Current Year Goals
                        Minority Male                              12.1%                     10.0%                                               Minority Female
                    G OAL      PROGRESS                                                                   Spending with diverse subcontractors grew to $260.2 million, a 46.3% increase
                        Minority Female                             4.2%                         5.0%                                          Asian Pacific                     0                                            0.0%
                                                                                                          from 2009. This growth can be attributed to increased emphasis on working with
                    In 2010, SCE achieved 27.1% of its total procurement spending with diverse
                       Minority Business                                                                                                       African American                  0
                                                                                                          prime suppliers, business units, and Supply Management to create subcontracting                                     0.0%
                    business enterprises. Other highlights of the year include:
                       Enterprise (MBE)                         16.3%                  15.0%
                                                                                                          opportunities with prime suppliers.  Latino                            0                                            0.0%
                        Women Business                                                                                                           Native American                                         0                    0.0%
                    •   Total spending with DBEs exceeded $1.1 billion for the first time, an increase
                        Enterprise (WBE)                      10.3%                          5.0%         SCE’s activities in this area include: requiring subcontracting plans on all
                        of more than $375.3 million compared to the prior year                                                                    Other                               0                                       0.0%
                        Subtotal Women, Minority                                                          contracts of $250,000 or more (the commission’s requirement is for $500,000 and
                                                                                                                                                  Total Minority Female               0                                       0.0%
                    •   Business Enterprise in diverse subcontractor spending over 2009
                        A 46.3% increase                          26.6%                      20.0%        above), providing a more accessible reporting tool for prime suppliers through a
                        (WMBE)                                                                            web-based reporting system, having Supply Management and Supplier Diversity
                                                                                                                                                  Women Business
                    •   Exceeded CPUC goal of 21.5%
                        Service-Disabled Veteran                                                                                                  contractors to
                                                                                                                                                                                   111
                                                                                                          and Development work with prime Enterprise (WBE) ensure that all Request for
                                                                                                                                                                                                                            15.9%
                        Business Enterprise                         0.5%                         1.5%                                             contain DBE & Minority
                                                                                                          Proposals (RFPs) and final contracts Subtotal Womensubcontracting-commitment
                    •   Surpassed its corporate goal of 25%, achieving 27.1%
                        (SDVBE)
                                                                                                                                                  Business Enterprise (MWBE)
                                                                                                                                                                                      0                                       0.0%
                                                                                                          language, and requiring that all prime suppliers with high-value contracts report
                    SCE’s commitment to increased excellence and expanded opportunity will
                       TOTAL WMDVBE                             27.1%                   25.0%                                                      monthly basis.
                                                                                                          their subcontracting spending on aService-Disabled
                    drive it to even greater accomplishments. The company’s 2011 goal is to                                                      Veteran Business                                        0                    0.0%
                                                                                                          Supplier Diversity and Development and Supply Management, along with SCE
                                                                                                                                              Enterprise (SDVBE)
                    achieve 27%, or $1 billion, of total procurement spending with DBEs.
                                                                                                          business units, addressed the importance of DBE subcontracting and provided
                                                                                                                                              TOTAL DBE                            0                                          0.0%
                                                                                                          tools, such as the DBE Yellow Pages, to increase subcontractors’ participation.
                                                                                                                                              TOTAL FUEL                           0                                          0.0%




                                                                                                                                                                                                                                     23


9516_DiversityAR_2010.indd 23                                                                                                                                                                                          3/1/11 10:12 AM
           SOUTHERN CALIFORNIA EDISON




           S U B C O N T R A C T O R S (9.1.5)
           9.1.5
            p15                                                                                                                                                                     C OMPLAINTS ( 9 . 1 . 6 )
                                                          A Summary of Prime Contractor Utilization of WMDVBE Subcontractors

                                                                                                                                  Women            Service-                         SCE did not receive any formal
                                                                                          Minority             Women              Minority         Disabled                         complaints in 2010.
                                                                                         Business             Business           Business          Veterans
                                           Minority               Minority               Enterprise           Enterprise         Enterprise       Enterprise        TOTAL
                                            Male                  Female                   (MBE)               (WBE)              (WMBE)           (SDVBE)         WMDVBE
                                                                                                                                                                                    D IVERSE    SUPPLIERS IN
             Direct $                $365,198,069.15         $155,131,915.28 $520,329,984.43               $314,487,901.70     $834,817,886.13   $9,790,785.01   $844,608,671.14    UNDERUTILIZED AREAS
             Subcontracting $        $126,512,827.69          $17,554,847.31 $144,067,675.00               $105,362,712.30     $249,430,387.30 $10,802,298.00    $260,232,685.30    (9.1.8)
             TOTAL $                 $491,710,896.84 $172,686,762.59                $664,397,659.43        $419,850,614.00 $1,084,248,273.43 $20,593,083.01 $1,104,841,356.44
                                                                                                                                                                                    SCE continued its focus on new
             Direct %                              9.0%                    3.8%                  12.8%                 7.7%             20.5%             0.2%            20.7%     opportunities for diverse suppliers in
             Subcontracting %                      3.1%                    0.4%                    3.5%                2.6%              6.1%             0.3%             6.4%
                                                                                                                                                                                    traditionally underutilized areas, such
             TOTAL %                              12.1%                    4.2%                  16.3%                 10.3%            26.6%             0.5%            27.1%
                                                                                                                                                                                    as finance and legal services, and its
             Net Procurement**                                $4,078,687,330.06                                                                                                     efforts are paying off.
           **Note: Net Procurement includes purchase order, non-purchase order, and credit card dollars.                                In the area of legal services, the company spent more than $3 million with diverse
                                                                                                                                        firms, surpassing 2009’s total. In the past five years, SCE’s spending with minority
                                                                                                                                        law firms increased from 0.5% to 16.6%.

           Supplier Diversity and Development, Supply Management, and the Transmission                                                 While there are challenges in finding qualified DBEs that meet the company’s
                                                         Annual Product Results by Ethnicity
           and Distribution Business Unit also held a number of “bidders conferences” in                                               complex business and procurement requirements for financial and legal services,
                                                                        LPG
           which prime suppliers were informed of SCE DBE goals and encouraged to                                                      SCE has made it a priority to identify diverse businesses that can bid and
                                                Volume:                                                                             Cost: Thousand $
           participate in the subcontracting program.                                                                                  compete in these areas.
                                               Gallons
                                                                 %
           One of the success stories that came (000) of the bidders conferenceDirect SCE’s
                                                out                             was                                               Sub             Total            %
             Minority Male
           Tehachapi Renewable Transmission Project. Three work packages, resulting in                                                  Financial Services
             Asian Pacific                      0            0.0%             0
           subcontracting work for DBEs with an average of 28% of subcontracting                                                   0                0             0.0%
                                                                                                                                        In 2010, the SCE Finance organization’s efforts to increase business activity
           commitments totaling $130 million, went to 29 diverse businesses. 0
             African American                   0            0.0%                                                                  0                0            0.0%
                                                                                                                                        with diverse firms included greater communication with primary vendors, active
               Latino                                                  0                    0.0%                   0               0                             0.0%
                                                                                                                                                    0 in forums, and advancing and cultivating greater awareness within
                                                                                                                                        participation
           During the year, SCE sponsored its first annual DBE Symposium, which included
              Native American                       0            0.0%             0
           matchmaking events, to help prime suppliers meet potential diverse subcontractors. 0                                                     0            0.0%
                                                                                                                                        SCE Finance, which resulted in an increased procurement activity with DBEs in
              Other                                 0            0.0%             0
           In addition to prime suppliers bringing their own ideas and concepts, SCE provided 0                                                     0            0.0%
                                                                                                                                        four key business areas: investment management, investment banking,
              Total Minority Male
           new opportunities for DBE subcontractors.0            0.0%             0           0                                         commercial0  banking, and consulting.
                                                                                                                                                                 0.0%

               Minority Female                                                                                                          In addition, outreach and pipeline activities were also significantly expanded,
               Asian Pacific                                           0                    0.0%                   0               0    which is expected to increase SCE’s financial services-related DBE use more
                                                                                                                                                     0           0.0%
               African American                                        0                    0.0%                   0               0    broadly in future years. 0.0%
                                                                                                                                                     0
               Latino                                                  0                    0.0%                   0               0                0             0.0%
               Native American                                         0                    0.0%                   0               0                0             0.0%
24
               Other                                                   0                    0.0%                   0               0                0             0.0%
               Total Minority Female                                   0                    0.0%                   0               0                0             0.0%
9516_DiversityAR_2010.indd 24                                                                                                                                                                                                  3/1/11 10:12 AM
                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN


                                                                                                       DBL Investors: Double Bottom Line Practices with Impact
                    Investment Management

                    Investment management includes the procurement of financial services to            Nancy Pfund and Cynthia Ringo, managing partners of DBL Investors, a woman-
                    meet the business requirements of SCE’s trust investment portfolios. This          owned venture capital firm, first learned about supplier diversity a few years ago
                    includes hiring investment professionals to manage trust assets and related        at a California Public Utilities Commission-hosted workshop aimed at helping
                    financial market services.                                                         utilities increase their supplier base.
                    At year-end 2010, total SCE trust assets under management and capital              “We were soon introduced to SCE’s Finance team, which was focused on
                    commitments to diverse investment managers were $525 million (6.3% of total        increasing the use of diverse firms in Financial Services,” Ringo says. “SCE
                    assets under management), up 31% from $400 million in 2009. SCE assets under       made commitments for its pension fund to a DBL equity fund in 2009.”
                    management by DBEs in 2010 consisted of $148 million among five firms for the
                    pension fund, $277 million among four firms for the other benefit trusts (401(h)                                    The San Francisco-headquartered company has
                    and VEBA) and $100 million with one firm for the nuclear decommissioning                                                      since grown to two funds under
                    trusts. For the year 2010, 17% of all new investment commitments were made                                                    management with $200 million in
                    with diverse suppliers.                                                                                                      assets and about 20 clients.

                    In addition, SCE Investment Division staff continued its pipeline activity of                                                    Created from the spin-out of an equity
                    research and analysis on DBE investment managers throughout the year and                                                        fund from global financial services firm
                    included such firms in all investment manager searches, developing this                                                         J.P. Morgan in 2008, the firm’s “double
                    discipline into a core standard business practice of the group.                                                                bottom line” strategy is to invest in
                                                                                                                                                   companies that can deliver top-tier venture
                    In order to reinforce the company’s commitment to the use of diverse firms                                                    capital returns and have a positive impact
                    in the management of trust assets, the Investment Division provided informa-                                                 socially, environmentally, and economically.
                    tion about SCE’s Supplier Diversity program to SCE’s investment managers in
                    March 2010. The investment managers were directed to review a list of DBE                                             “Our goal is to make attractive financial
                    brokers and consider executing their trades through these firms consistent with    returns and drive social and economic returns,” Pfund says. “We do that by
                    their “best execution” mandate in managing the SCE trust assets. As a result,      investing in companies that help the business and community. As a result, clean
                    commissions paid to diverse vendors from such transactions grew significantly      technology is a big interest area of ours.”
                    over 2009 levels.
                                                                                                       “Having SCE as a client has been huge,” says Ringo. “Company representatives
                                                                                                       advocate for us regularly, and have introduced DBL to peers at other utilities.

                                                                                                       “Edison has helped us attract other high-quality companies,” she adds. “They
                                                                                                       are a tremendous stamp of approval and a real source of credibility. Others look
                                                                                                       at us – not just because we’re women-owned or because we invest in clean
                                                                                                       technology – but because they believe this firm is going to give them the kinds
                                                                                                       of returns required.”

                                                                                                       Shown in photo: Nancy Pfund (l) and Cynthia Ringo’s DBL Investors was introduced
                                                                                                       to SCE’s Finance team, which was focused on increasing the use of diverse firms in
                                                                                                       Financial Services.

                                                                                                                                                                                                      25


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           SOUTHERN CALIFORNIA EDISON




           Investment Banking                                                                      SCE also continued its use of the Certificate of Deposit Account Registry Service
                                                                                                   (CDARS) network and invested a total of $7 million with three minority banks.
           Investment banking includes the procurement of services related to the
                                                                                                   These three banks, in turn, reallocate those deposits to other minority and
           underwriting, sales and distribution, and secondary market liquidity of capital
                                                                                                   community banks, resulting in further deployment of those invested funds into
           markets financial securities.
                                                                                                   local communities.
           In 2010, SCE continued to build relationships with and increase the use of
                                                                                                   In addition, SCE continued its Money Market Insured Deposit Account Service
           diverse investment banks. During the year, SCE completed five capital market
                                                                                                   (MMIDAS) investment with a minority bank. MMIDAS deposits are made with one
           debt transactions totaling $1.45 billion involving a total of nine minority-, woman-,
                                                                                                   commercial bank and then reallocated to eligible program banks to maximize
           and disabled veteran-owned investment banks in key roles. Total fees paid to
                                                                                                   FDIC protection coverage, similar to the CDARS program. SCE has maintained a
           diverse investment banks were nearly $1 million, up over 80% from 2009.
                                                                                                   $5 million MMIDAS deposit with a minority bank from April 2009 to the present.
           During the year, financing activities included a milestone transaction in March
                                                                                                   Lastly, from October 2010 through year-end, SCE invested $25 million in a
           2010, when SCE issued $144 million of bonds with two Los Angeles-based
                                                                                                   cash-management account managed by a woman-owned firm.
           minority and disabled veteran firms as co-lead managers. This financing was the
           first transaction by a California investor-owned utility with two California-based
                                                                                                   Consulting
           diverse firms in lead roles. A second transaction in August 2010 similarly engaged
           a minority-owned firm as a co-lead manager.                                             SCE utilizes consulting and accounting firms in a variety of capacities, including
                                                                                                   supplementing the audit of its financial operations and providing other key
           In December 2010, SCE expanded its DBE relationships further by adding two
                                                                                                   services. For 2010, SCE continued to identify diverse business consultants and
           minority- and disabled veteran-owned firms to SCE’s vehicle and equipment fleet
                                                                                                   other financial experts in the financial services area, including accountants,
           lease program. These two vendor relationships are providing SCE with additional
                                                                                                   auditors, and regulatory finance experts.
           sources of funding for its equipment leasing needs.
                                                                                                   Since 2002, SCE retained a diverse accounting firm to audit the pension fund,
           Lastly, SCE was active in the commercial paper market in 2010 and issued
                                                                                                   and beginning in 2009, to prepare financial statements for both Nuclear
           $1.4 billion of these short-term financial securities through a DBE dealer. This
                                                                                                   Decommissioning Trusts. Additionally, SCE engages diverse firms to perform
           represented nearly 30% of SCE’s total short-term financing activity for the year.
                                                                                                   Sarbanes-Oxley compliance testing and hired a diverse consultant for various
                                                                                                   regulatory proceedings.
           Commercial Banks

           Commercial banking includes cash management and short-term investment                   Outreach/Pipeline Activities
           services to meet SCE’s daily operations and funding needs. In 2010, SCE continued
                                                                                                   Throughout the year, Finance staff proactively reached out to potential
           its relationship with a DBE provider of money market investment services with
                                                                                                   diverse consultants to educate them on the process of qualifying and
           whom SCE invested a total of $151 million.
                                                                                                   participating in SCE’s DBE program.




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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    Finance executives continued to participate as active members of the California           ABL was established in 1991 through the vision and leadership of an SCE Finance
                    Utilities Diversity Council (CUDC), which was established to bring together execu-        employee. Since its inception, SCE has provided ABL with office space, supplies,
                    tives from the state’s electricity, gas, cable, telecommunications, and water utilities   budgetary support, and fundraising contacts. In addition, Finance employees give
                    to develop ways to actively use diverse suppliers in the financial services field.        their time to ABL, serving as judges for business plan competitions and executive
                                                                                                              management access.
                    SCE executives also participated in the Quarterly Financial Services Symposiums
                    organized through the CPUC’s Utility Supplier Diversity Program office. These
                    forums provided meaningful opportunities for diverse consulting and financial             Legal Services
                    services firms to meet face-to-face with utility executives and business managers
                                                                                                              As in previous years, the Law Department focused its efforts on increasing
                    and develop new business relationships.
                                                                                                              the use of DBEs in three key areas: minority-owned law firms, minority attorneys
                    Finance representatives also took part in other activities, including Small Business      in majority-owned firms, and outreach and pipeline efforts.
                    Assistance Day, a High Desert Hispanic Chamber of Commerce event, and
                    Southern California Minority Business Development Council’s annual conference.            Minority-Owned Law Firms

                    The Investment Division expanded its outreach program in the trust investment             The department’s use of minority-owned law firms has dramatically improved
                    management area by increasing the number of conferences, seminars, and                    over the last several years. In 2010, department procurement with diverse firms
                    symposiums they attended with the goal of networking with DBE investment                  totaled more than 14% of its overall legal spending, up $1.2 million over 2009
                    managers and identifying potential firms for any of SCE’s investment trusts. In           expenditures. This increase can be attributed to a greater awareness to improve
                    2010, Finance staff members testified at the joint hearing of the Senate Select           DBE law firm use and a more focused effort to ensure DBEs were properly
                    Committee on Procurement and the CPUC in San Francisco and also participated              certified and procurement expenditures were reported.
                    in a panel discussion on “Diversity Service Providers in Investment Management”
                                                                                                              Several certified law firms performed a significant amount of legal services
                    at the National Association of Regulatory Commissioner’s conference in Atlanta.
                                                                                                              for the company and, as a result, two were in the top 10 law firms in terms
                    In addition, the Finance organization continued to provide financial and                  of revenue paid by SCE’s Law Department.
                    leadership assistance to the Academy of Business Leadership (ABL), a non-profit
                    organization offering business education to underserved high school age youth.            Minority Attorneys in Majority-Owned Firms
                    ABL’s main program is the Summer Business Institute (SBI), a five-week course
                    focused on business, finance, and entrepreneurial training offered at the area’s          Consistent with the CPUC’s direction, SCE has been providing information on
                    leading universities. The program teaches students about finance and                      the contract dollars spent with major law firms for work performed by female,
                    entrepreneurship and helps prepare them for college and future careers.                   minority, and disabled veteran attorneys. This information includes both attorneys
                                                                                                              and paralegals. The major firms that provided data on the charts on pages 29 and
                    Since 1991, about 3,100 students have graduated from the SBI program. A                   30 represent eight of SCE’s top 10 major law firms (not CPUC-DBE certified).
                    follow-up program, Building Outstanding Leaders Today (BOLT), has provided
                    mentoring for more than 850 former SBI students since 2001. A survey conducted            As noted above, the top 10 major law firms based on revenues paid by SCE’s
                    in 2010 of 132 former students of the SBI program revealed that 100% of the               Law Department include two certified law firms, but the data on these firms are
                    students graduated from high school, 29% were in a two-year college and 71%               excluded from the chart. The information relating to the two certified law firms is
                    were enrolled in a four-year college. These results are well above those for              included as part of SCE’s DBE percentage.
                    typical underserved youth.


                                                                                                                                                                                                           27


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     Wai & Connor: Making a Connection Through Outreach
                                                                                           Outreach/Pipeline Efforts

                                                                                           To increase diversity in the legal profession, the Law Department sponsored and
     From her two initial encounters with SCE in 2007, Bonnie Wai remembers one
                                                                                           participated in a number of events and projects, including activities focused on
     thing – both resulted from the company’s outreach to her.
                                                                                           increasing the number of diverse students who enter the educational pipeline to
                                            “The first time, I received an email from      become attorneys.
                                             a Law Department representative,” Wai
                                                                                           The department remained involved in the StreetLaw program, which introduces
                                              says, “inviting me to a Public Utilities
                                                                                           students at three local high schools to the legal profession. SCE attorneys visited
                                              Commission-sponsored supplier diver-
                                                                                           schools to teach one-hour sessions on a substantive area of law, such as sexual
                                               sity event.” The second time, she was
                                                                                           harassment, eminent domain, and media statements. Students were later invited
                                                asked to meet with SCE’s general counsel
                                                                                           to SCE’s headquarters for an all-day workshop where they participated in exercises
                                                 and Worker’s Compensation manager to
                                                                                           and scenarios focused on giving the students a feel for the type of work that
                                                  discuss her law firm’s services.
                                                                                           attorneys do on a daily basis.
                                          “We haven’t had much experience with             As SCE has done for the past five years, the company sponsored several attorneys
                                           companies reaching out to us,” says             in coaching middle school students in the Constitutional Rights Foundation’s
                                            Wai, whose majority Asian American-            mock-trial program. The program involves students presenting a hypothetical
                                            and woman-owned firm, Wai &                    criminal case that is judged by a panel of judges and attorneys. In 2010, four SCE
                                   Connor, LLP, specializes in the defense of              attorneys volunteered three times a week at Monterey Highlands School, which is
                   workers’ compensation matters for both self-insured employers           made up of 95% minorities, in preparation for the mock-trial competition.
     and insurance companies. “I’m not sure there would’ve been a connection had
     Edison not approached us.”                                                            In addition, SCE continued to sponsor and fund a diversity scholarship for a
                                                                                           first-year law student through the California Bar Foundation.
     The outreach resulted in a 2007 contract to perform legal work for SCE. Since
     then, the West Los Angeles-based firm’s work with the utility has grown by            After assisting with its creation, SCE has maintained its leadership role on the
     about 800%. As the size of SCE’s contracts increased, so has the firm. Today,         Leadership Council on Legal Diversity (LCLD), with its general counsel serving
     Wai & Connor has five offices throughout California and 110 employees, of             as LCLD’s treasurer. The LCLD is comprised of the general counsels of Fortune
     which about 40 are attorneys.                                                         500 companies and managing partners of the largest law firms in the country.
                                                                                           LCLD held its first annual meeting in 2010, and is developing targeted diversity
     “Having Edison as a client has strengthened our resume,” says Wai. “It has            initiatives for implementation in 2011.
     particularly helped in our recruitment and hiring process. SCE is seen as a
     prestigious, stable client.”
                                                                                           R ECOGNITION
     She adds, “We’re grateful and proud to be affiliated with Edison. They’re eager
                                                                                           The Law Department was recognized for its supplier diversity efforts and
     to work with diverse law firms. We know that the Supplier Diversity Program has
                                                                                           received the Minority Corporate Counsel Association’s 2010 Western Employer
     helped our firm grow.”
                                                                                           of Choice Award.


     Shown in photo: Ivy Mi, part of Bonnie Wai’s team at
     Wai & Connor, deals with workers’ compensation cases for SCE.

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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                                          Southern California Edison Law Department –CPUC Outside Counsel Diversity                                      Southern California Ediso

                        Line No.                                                                                                  Total ($)   Line No.

                                                                            Attorney time billed in 2010

                           1.            All Male                                                                            $18,885,646.04     1.       All Male
                           2.                       Minority Male                                  Asian Pacific Male        $1,713.958.90      2.                   Minority Male
                           3.                                                                      African American Male       $945,961.00      3.
                           4.                                                                      Latino Male                  929,015.84      4.
                           5.                                                                      Native American Male               $0.00     5.
                           6.                                                                      Multi-Ethnic Male            $10,055.00      6.
                           7.                                                                      Total Minority Male        $3,598,990.74     7.
                           8.            All Female                                                                          $10,748,804.00     8.       All Female
                           9.                       Minority Female                                Asian Pacific Female       $2,024,423.49     9.                   Minority Female
                          10.                                                                      African American Female     $157,295.00      10.
                          11.                                                                      Latino Female               $337,127.43      11.
                          12.                                                                      Native American Female             $0.00     12.
                          13.                                                                      Multi-Ethnic Female            $3,900.00     13.
                          14.                                                                      Total Minority Female      $2,522,745.92     14.
                          15.                                                                      Total Minority             $6,121,736.66     15.
                          16.                       Non-Minority Female                                                       $8,226,058.08     16.                  Non-Minority Female
                          17.            Service-Disabled Veteran                                                                     $0.00     17.      Service-Disabled Veteran
                          18.            Total Minority, Non-Minority Female & Veterans                                      $14,347,794.74     18.      Total Minority, Non-Minority Fem




                                                                                                                                                                              29


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                      SOUTHERN CALIFORNIA EDISON




de Counsel Diversity                                              Southern California Edison Law Department –CPUC Outside Counsel Diversity

                                           Total ($)   Line No.                                                                                         Total ($)

                                                                                                    Paralegal time billed in 2010

                                  $18,885,646.04         1.       All Male                                                                            $491,103.45
Male                               $1,713.958.90         2.                  Minority Male                                  Asian Pacific Male         $17,131.10
can Male                             $945,961.00         3.                                                                 African American Male       $6,953.50
                                       929,015.84        4.                                                                 Latino Male                 $6,987.00
an Male                                        $0.00     5.                                                                 Native American Male            $0.00
Male                                   $10,055.00        6.                                                                 Multi-Ethnic Male               $0.00
y Male                             $3,598,990.74         7.                                                                 Total Minority Male        $31,071.60
                                  $10,748,804.00         8.       All Female                                                                          $556,394.74
Female                             $2,024,423.49         9.                  Minority Female                                Asian Pacific Female        $1,186.50
can Female                           $157,295.00         10.                                                                African American Female    $43,968.50
e                                    $337,127.43         11.                                                                Latino Female               $1,269.00
an Female                                      $0.00     12.                                                                Native American Female          $0.00
Female                                     $3,900.00     13.                                                                Multi-Ethnic Female             $0.00
y Female                           $2,522,745.92         14.                                                                Total Minority Female      $46,424.00
y                                  $6,121,736.66         15.                                                                Total Minority             $77,495.60
                                   $8,226,058.08         16.                 Non-Minority Female                                                      $509,970.74
                                               $0.00     17.      Service-Disabled Veteran                                                                  $0.00
                                  $14,347,794.74         18.      Total Minority, Non-Minority Female & Veterans                                      $587,466.34




            30


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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                                                                               2011 Annual Plan




                                                                                                            31


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           SOUTHERN CALIFORNIA EDISON




                                         Cecil R. House




                                        “Supplier Diversity is a business imperative
                                         to build a base of capabilities that makes
                                         our suppliers strong contributors to
                                         Southern California’s regional economy. ”


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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                                          Message from SCE’S Senior Vice President and
                                          Chief Procurement Officer
                                          THE SPIRIT OF INNOVATION IN SUPPLIER DIVERSITY

                                          Southern California Edison has always prided itself on its spirit of innovation. Throughout the past 125 years, the
                                          hallmark of our company has been to bring to our customers and our communities the products and services
                                          that demonstrate our focus on constant and consistent progress.
                                          In the same way, our achievements in Supplier Diversity are also the result of continuous innovation – in our
                                          Supplier Diversity outreach and mentorship programs, revamping our internal processes to make it easier for
                                          suppliers to do business with us, and an aggressive effort to expand opportunities for DBEs in all areas of
                                          our business.
                                          This year will be no different. As you will read in the next few pages, our commitment to increased excellence
                                          and expanded opportunity will drive us to even more innovative approaches in 2011 and beyond:
                                                •   Technical assistance – DBEs will receive technical assistance through SCE’s bidding conferences,
                                                    Post-Bid workshops, and regional Business Edge workshops.
                                                •   Capacity expansion – SCE Supplier University’s Mentorship Program and “hands on” Demonstration
                                                    Centers will help DBEs expand and extend their capabilities to qualify for new contracts.
                                                •   Subcontracting opportunities – SCE will actively work with our prime contractors to create subcontracting
                                                    opportunities through supplier symposiums and networking events sponsored by us and others.
                                                •   Focus on underutilized DBEs – SCE will increase its efforts to use DBEs in underutilized areas such
                                                    as Finance and Law.
                                          In 2010, these innovative programs led to SCE exceeding $1.1 billion in DBE spending for the first time.
                                          In 2011, our objective is to exceed our 2010 results. But supplier diversity is not a numbers game at SCE.
                                          It is a business imperative to build a base of capabilities that makes our suppliers strong contributors to
                                          Southern California’s regional economy.
                                          In this way, they will mirror SCE’s goal of bringing a spirit of innovation to their companies, their employees, and
                                          their communities.




                                          Cecil R. House
                                          Senior Vice President and Chief Procurement Officer
                                          Southern California Edison
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           SOUTHERN CALIFORNIA EDISON




           2 0 1 1           A N N U A L       P L A N
            10.1.1 Goals

           G O A L S ( 1 0.1.1)
                                                                            WMDVBE Annual Short-, Mid- and Long-Term Goals
                                                                                                PRODUCTS
                                  Short-Term (2011)                                            Mid-Term (2013)                                          Long-Term (2015)
                                                               Service-                                                   Service-                                                  Service-
                                                               Disabled                                                   Disabled                                                  Disabled
                                  Minority         Women       Veterans                       Minority        Women       Veterans                      Minority        Women       Veterans
                  Minority        Business        Business     Business        Minority       Business       Business     Business        Minority      Business       Business     Business
                                  Enterprise      Enterprise   Enterprise                     Enterprise     Enterprise   Enterprise                    Enterprise     Enterprise   Enterprise
              Male      Female                                              Male    Female                                             Male    Female
                                    (MBE)           (WBE)       (SDVBE)                         (MBE)          (WBE)       (SDVBE)                        (MBE)          (WBE)       (SDVBE)
              10%        5.0%      15.0%            5.0%         1.5%       10.0%    5.0%      15.0%           5.0%         1.5%       10.0%    5.0%     15.0%           5.0%         1.5%




                                                                                                 SERVICES
                                  Short-Term (2011)                                            Mid-Term (2013)                                          Long-Term (2015)
                                                               Service-                                                   Service-                                                  Service-
                                                               Disabled                                                   Disabled                                                  Disabled
                                  Minority         Women       Veterans                       Minority        Women       Veterans                      Minority        Women       Veterans
                  Minority        Business        Business     Business        Minority       Business       Business     Business        Minority      Business       Business     Business
                                  Enterprise      Enterprise   Enterprise                     Enterprise     Enterprise   Enterprise                    Enterprise     Enterprise   Enterprise
              Male      Female                                              Male    Female                                             Male    Female
                                    (MBE)           (WBE)       (SDVBE)                         (MBE)          (WBE)       (SDVBE)                        (MBE)          (WBE)       (SDVBE)
              10%        5.0%      15.0%            5.0%         1.5%       10.0%    5.0%      15.0%           5.0%         1.5%       10.0%    5.0%     15.0%           5.0%         1.5%




                                                                                          PRODUCTS AND SERVICES
                                  Short-Term (2011)                                            Mid-Term (2013)                                          Long-Term (2015)
                                                               Service-                                                   Service-                                                  Service-
                                                               Disabled                                                   Disabled                                                  Disabled
                                  Minority         Women       Veterans                       Minority        Women       Veterans                      Minority        Women       Veterans
                  Minority        Business        Business     Business        Minority       Business       Business     Business        Minority      Business       Business     Business
                                  Enterprise      Enterprise   Enterprise                     Enterprise     Enterprise   Enterprise                    Enterprise     Enterprise   Enterprise
              Male      Female      (MBE)           (WBE)       (SDVBE)     Male    Female                                             Male    Female     (MBE)          (WBE)       (SDVBE)
                                                                                                (MBE)          (WBE)       (SDVBE)
              10%        5.0%      15.0%            5.0%         1.5%       10.0%    5.0%      15.0%           5.0%         1.5%       10.0%    5.0%     15.0%           5.0%         1.5%


           SCE is committed to achieving the CPUC goal as stated in GO 156. SCE is also committed to meeting the following short-, mid- and long-term goals:

                                     Short-Term                                                   Mid-Term                                                 Long-Term
                                        27%                                                         29%                                                       30%


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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    P LANNED      I N T E R N A L / E X T E R N A L ACTIVITIES   (10.1.2)                  – Enhancing Business Edge workshops. To attract more attendees, SCE will
                                                                                                              offer the series in the morning and introduce a new “Meet SCE Buyers”
                    SCE intends to build on its 2010 success by focusing on maintaining
                                                                                                              feature. This will give DBEs the opportunity to network with buyers over
                    innovative approaches and executing targeting outreach strategies. Programs
                                                                                                              lunch, learn about their buying responsibilities and upcoming bidding
                    such as the SCE Supplier University, SCE subcontracting program and
                                                                                                              opportunities, and gain insights on preparing company bids. Workshop
                    partnerships with external organizations will be critical to success in 2011.
                                                                                                              topics will include revenue and growth strategies, strengthening business
                                                                                                              relationships, and building a marketing action plan.
                    PLANNED       INTERNAL ACTIVITIES
                                                                                                           – Launching the Small Contract Selection Program, geared to providing DBEs
                    In 2011, internal efforts will be focused on the following:                               with experience working on smaller SCE contracts, which will help them to
                                                                                                              bid on larger contracts later.
                    • Enhancing the Ambassador Program, comprised of 13 employee resource
                      groups that promote understanding within the company on cultural, ethnic,            – Implementing the Executive Coaching Program, a customized training
                      gender, and generational differences. The groups’ activities and events are             program for diverse suppliers to support business continuity in targeted
                      leveraged to support information-sharing for Supplier Diversity at SCE.                 areas. Selected vendors will have demonstrated their ability to increase
                                                                                                              their business potential with SCE.
                    • Improving the strategic alignment with Supplier Diversity and Development
                      and Supply Management to identify more procurement opportunities with
                      DBEs. This partnership will support targeted outreach strategies and create         P L AN N ED   EX TER NAL AC TIVITIES
                      new programs to assist diverse suppliers with capacity building and technical       In 2011, the company will again provide DBE organizations with guidance and
                      assistance.                                                                         support and continue to reach out to diverse businesses and educate them about
                    • Creating new features in the subcontractor reporting system to provide Supply       Supplier Diversity and certification requirements at SCE.
                      Management with timely information on prime suppliers’ participation.
                                                                                                          SCE’s efforts will also help diverse suppliers become more successful so they can
                    • Developing a performance management program to help Supply Management               do business with the company and other organizations. The following are among
                      and Supplier Diversity and Development keep track of areas of low DBE               the planned activities:
                      participation as well as other critical metrics that predict program performance.
                                                                                                          DBE Symposium – Building on the success of last year’s symposium, SCE will
                    • Expanding the use of the Supplier Registration portal and DBE Yellow Pages as       again offer DBEs an opportunity to meet with Supply Management category
                      sourcing tools for Procurement agents, business units, and prime suppliers to       managers and Procurement agents. DBEs will also be able to network with SCE’s
                      increase diverse supplier participation in bidding opportunities.                   largest prime suppliers.
                    • A partnership with Renewable Alternative Power and Supplier Diversity and           Partnership with Renewable and Alternative Power – Supplier Diversity and
                      Development to identify and promote DBEs in renewable procurement efforts.          Development and Renewable and Alternative Power will engage in outreach
                    • Enhancing SCE Supplier University by:                                               events to encourage diverse suppliers to participate in SCE’s renewable
                                                                                                          procurement opportunities.
                      – Continuing to expand the Post-Bid workshop, a program offering techni-
                         cal and other feedback on recently submitted bids. This will provide diverse
                         suppliers with coaching to better prepare them for future bids and help SCE
                         recruit suppliers in underutilized areas.


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           SOUTHERN CALIFORNIA EDISON




           Capacity Building – SCE will continue to participate in Southern California            Latino
           Minority Business Development Council’s Capacity Building Initiative. The
                                                                                                  SCE will continue to take a leadership role in the Hispanic community on national,
           company will use its internal partnerships to identify high-potential DBEs and
                                                                                                  state, and local levels. The company will continue its membership in the United
           increase the number of “mentees” in the mentor-protégé program, with the
                                                                                                  States Hispanic Chamber of Commerce Procurement Committee and participate
           hopes of expanding mentees’ bidding opportunities in the future.
                                                                                                  on the legislative and procurement committees with the California Hispanic
           Joint Utility Meetings – In 2011, SCE will again take a leadership role and actively   Chamber of Commerce. In addition, SCE will again serve on the boards of the
           participate in all formal and informal CPUC and Joint Utility meetings. Supplier       Latin Business Association, Regional Hispanic Chamber, and the Latin Business
           Diversity and Development will continue to support activities such as planning,        Chamber of Greater Los Angeles.
           developing, sponsoring, and participating in various small business expos and
           outreach events.                                                                       Native American

           Technical Assistance – SCE will continue to support the major utilities’ joint         In 2011, SCE will continue its support of Native American business organiza-
           responses to GO156-OIR. The utilities are committed to developing and imple-           tions, including the Native American Indian Chamber of Commerce (NAICC) and
           menting a program to provide technical assistance to DBEs at various levels.           California Nations Indian Gaming Association. SCE will also co-chair the Advisory
                                                                                                  Council for the NAICC.

           P L A N N ED    O UT R E AC H                                                          In addition, SCE plans to look to Native American businesses for new environmental,
                                                                                                  information technologies, construction, and solar contracts. The goal is to get
           African American                                                                       as many Native American businesses as possible to participate in SCE Supplier
                                                                                                  University and Turner School of Construction Management.
           SCE will continue to seek the assistance of its African American strategic partners,
           including the Greater Los Angeles African American Chamber of Commerce,                This year, SCE will host a dinner and invite other corporations to introduce
           Black Business Association of Los Angeles and the California Black Chamber of          them to the advantages of supporting the NAICC and the Native American
           Commerce, to develop strategies that meet current and future procurement               business community.
           opportunities. SCE will also look at new organizations, such as the National Black
           Business Council, as an additional resource to identify African American-owned
           businesses.

           Asian
           SCE will take leadership roles and serve on the planning committees of the
           following Asian business organizations’ key outreach events: Asian Business
           Association’s (Los Angeles Chapter) Small Business Summit, Asian Business
           Association’s (Orange County Chapter) PROCON and Asian Global Sourcing
           Conference, and the U.S. Pan Asian American Chamber of Commerce’s
           CelebrAsian Conference. SCE’s goal is to continue to foster its partnerships
           with these organizations through active involvement and sponsorships,
           innovative outreach strategies, and by taking company programs and
                                                                                                  Representatives of key corporate sponsors celebrate the opening of the 2010 PROCON and Asian
           service offerings to these organizations’ memberships.                                 Global Sourcing Conference. SCE was a key sponsor, along with U.S. Bank, Johnson & Johnson,
                                                                                                  The Walt Disney Company, and the Asian Business Association of Orange County.
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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                                                                                                      Women
                                                                                                      In addition to providing financial support and leadership guidance, SCE will
                                                                                                      continue to work with National Association of Women Business Owners’ chapters
                                                                                                      (Los Angeles, Orange County, and Inland Empire) to help match their membership
                                                                                                      with business opportunities at the company and promote awareness of its DBE
                                                                                                      outreach programs and services. SCE will also continue to educate NAWBO’s
                                                                                                      membership on the benefits of certification as well as SCE’s procurement policies
                                                                                                      and procedures.

                                                                                                      Key DBE Organizations and Events
                                                                                                      Some of the anticipated key events include:

                                                                                                      • American Association of Blacks in Energy’s 33rd Annual National Conference
                                                                                                      • American Indian Chamber of Commerce of California’s Annual Business Expo
                                                                                                       and Awards Dinner
                    At the SCE Supplier University Demonstration Center in June 2010,
                    Reny Slatkin from Sunlink demonstrates to attendees the assembly
                    process for solar panels.                                                         • Asian Business Association – Los Angeles Chapter’s Small Business Summit
                                                                                                        and Annual Awards Dinner

                    Service-Disabled Veteran                                                          • Asian Business Association – Orange County Chapter’s 2011 PROCON
                                                                                                       and Asian Global Sourcing Conference, Annual Awards Recognition Dinner,
                    SCE will continue its leadership role with the CPUC Joint Utilities’ Committee
                                                                                                       and Business Matchmaking Event with Mock Interview Sessions
                    on Disabled Veteran Business Enterprises (DVBE) Utilization Challenges and
                    Opportunities to build on what was accomplished last year. The company will       • Asian Women Entrepreneurs’ 6th Anniversary Celebration Luncheon
                    support National Elite SDVBE, California chapters’ monthly meetings, Veteran’s    • Black Business Association’s 8th Annual Procurement Exchange
                    Day and National events, and expand its outreach to include the U.S. Army Corps
                    of Engineers and attend the National Veteran’s conference in New Orleans.         • California Black Chamber of Commerce’s African American Leadership Weekend
                    Brown bag lunches will also continue to be a part of SCE’s practices to get
                                                                                                      • California Governor & First Lady’s Conference for Women
                    Procurement agents and SDVBEs together. SCE will also support the DVBE            • California DVBE Alliance – 2011 Keep The Promise Expo
                    Alliance’s Keep The Promise Conference and identify new opportunities for
                                                                                                      • California Hispanic Chambers of Commerce’s Annual Legislative Day
                    vendors in the areas of construction, solar, and information technologies for
                    further growth in SDVBE spending.                                                 • California Utilities Diversity Council Meetings
                                                                                                      • CHARO Community Development Corporation’s Small Business Outreach
                                                                                                       Workshops
                                                                                                      • Chinese American Construction Professionals’ “Work Local, Position Global”
                                                                                                       Business Conference and Annual Scholarship, Installation and Awards Dinner


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           SOUTHERN CALIFORNIA EDISON




           • Council of Energy Resources Tribe’s Conference & Dinners                       R ECRUITMENT      PLANS FOR SUPPLIERS IN UNDERUTILIZED AREAS
                                                                                            (10.1.3)
           • Edison Electric Institute – 28th Annual EEI Supplier Diversity Conference
           • Elite SDVOB Network, Elite Service Disabled Veterans-Owned Businesses – 8th    Financial Services
             Annual National Service-Disabled Event
                                                                                            To increase the use of DBEs in Financial Services, SCE will continue to:
           • Global Federation of Chinese Business Women – Southern California Chapter’s
             Installation Dinner and Business Workshops                                     • Expand the use of diverse investment and commercial banks and investment
                                                                                              managers for SCE’s financial services needs.
           • Greater Los Angeles African American Chamber of Commerce’s 18th Annual
             Economic Awards Dinner                                                         • Employ public agencies, utilities, corporations, and trade organization
                                                                                              databases as DBE resources.
           • Latin Business Association’s Annual Anniversary Sol Business Awards Gala
                                                                                            • Develop relationships with diverse business trade organizations, National
           • National Association of Women Business Owners – Los Angeles Chapter’s            Minority Supplier Development Council, and similar minority business
             Annual Legacy & Leadership Luncheon
                                                                                              advocacy organizations.
           • National Association of Women Business Owners – Orange County Chapter’s        • Identify additional DBE procurement spending opportunities in materials
             Annual Remarkable Women Awards Dinner
                                                                                              and services.
           • National Center for American Indian Enterprise Development’s RES 2011 –        • Ensure inclusion of diverse suppliers during the procurement process
             Reservation Economic Summit
                                                                                              where applicable.
           • 2011 National Minority Supplier Development Council Conference and Business    • Participate in Supplier Diversity and Development outreach events.
             Opportunity Fair – “Raising the Bar Through Sustainable Strategies”
                                                                                            • Recruit, identify, and qualify DBE consultants.
           • Regional Hispanic Chamber of Commerce’s Procurement Expo and Annual
             Awards Dinner
                                                                                            P LANNED     SUBCONTRACTING ACTIVITIES             (10.1.5)
           • San Diego Elite Disabled Veteran Business Enterprise Network’s Veteran’s Day
             Conference                                                                     SCE will continue to build on the momentum from 2010 to grow the use
                                                                                            of diverse subcontractors. This includes:
           • Southern California Minority Business Development Council’s 35th Annual
             Minority Business Opportunity Day 2011                                         • Diligently working with prime suppliers to create more targeted and
           • United States Hispanic Chamber of Commerce Annual Conference and                 innovative DBE subcontracting opportunities.
             Trade Show                                                                     • Enhancing SCE’s tracking system to provide Supply Management more
           • U.S. Pan Asian American Chamber of Commerce’s CelebrAsian Business               access and transparency on the status of prime contractors’ participation in
             Opportunity Conference 2011                                                      the subcontracting program. This will help monitor progress and improve
                                                                                              overall subcontracting performance.
                                                                                            • A partnership between Supplier Diversity and Development and Supply
                                                                                              Management category managers to identify, address, and improve areas of
                                                                                              underutilized subcontractors.

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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    • Hosting a DBE Symposium to provide opportunities for prime contractors
                      to meet diverse suppliers in their respective industries and enhance seminars
                      to assist DBEs.
                    • Creating subcontracting kits for Supply Management, DBEs and prime
                      suppliers as resources to address the importance of the subcontracting
                      program with prime contractors.


                    P ROGRAM       COMPLIANCE        (10.1.6)
                    Overall, SCE is pleased with its DBE performance in 2010. Total procurement
                    with minority-, woman-, and service-disabled veteran-owned businesses exceeded
                    over $1.1 billion, an increase of more than $375.34 million compared to the prior
                    year. Expenditures with qualified diverse suppliers grew to 51.5%, up from 23.6%
                    in 2009 and exceeding the CPUC’s target of 21.5%.

                    Other achievements during the year include:

                    • 255 of SCE’s newly added diverse suppliers were successful in winning             Joe Alderete, manager, SCE Supplier Diversity and Development (l), congratulates Ed Chavez (c) and
                                                                                                        Larry Kalantari (r) from Carob Valley Electric as they join SCE Supplier University’s Mentorship Program.
                      company contracts.
                    • A 46.3% increase in spending with diverse prime and subcontractor suppliers,      For 2011, the company intends to build on its 2010 success by focusing on
                      compared to 2009.                                                                 targeted outreach programs, continuing to maintain innovative programs, such
                                                                                                        as SCE Supplier University, and helping diverse businesses develop their skills to
                    • A 51.5% increase, or $375.34 million, in spending with diverse subcontractors.    make them more valuable to their customers, including SCE.
                    • Increased spending with African American- and service-disabled veteran-
                                                                                                        SCE will continue to expand DBE subcontracting and seek additional opportunities
                      owned firms by 138.1% and 247.2%, respectively.
                                                                                                        to improve spending with diverse suppliers in underutilized areas.
                    • Improved tracking, reporting, and analysis of DBEs, particularly subcontracting
                      spending.                                                                         The company’s goal for 2011 is to achieve 27% of total procurement spending
                                                                                                        with DBEs. Through creative thinking, companywide support, and hard work,
                    • Ramping up technical assistance to help build the capabilities of diverse         SCE has confidence it will achieve this goal.
                      suppliers.
                    • Greater collaboration within the company to hire and use more DBEs.
                    • Creating new tools to ensure access to certified suppliers.




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           SOUTHERN CALIFORNIA EDISON




           2010 ANNUAL REPORT/ 2011 ANNUAL PLAN–                                               2010 ANNUAL REPORT – FUEL PROCUREMENT
           FUEL PROCUREMENT

                                                                                               I NTERNAL/EXTERNAL         ACTIVITIES     (9.1.1)
           E XECUTIVE           SUMMARY
                                                                                               During the year, SCE focused its efforts on strengthening relationships with
           The following summarizes SCE’s use and support of diverse suppliers in the
                                                                                               existing diverse fuel suppliers and establishing new relationships through
           procurement of fuel for 2010 and SCE’s DBE plans and goals for 2011.
                                                                                               negotiations of new enabling agreements with additional DBEs. SCE also
           In 2010, SCE procured natural gas, diesel fuel, and nuclear fuel for electric       developed an internal policy that would allow it to enter into short-term
           generation. It also procured liquefied petroleum gas (LPG) to meet SCE’s gas        transactions with DBEs that lack a strong credit background.
           utility obligation on Santa Catalina Island.
                                                                                               Internal Activities
           As in previous years, SCE faced many challenges to increasing procurement
           from DBE suppliers. During the year, the company continued to struggle with         SCE’s executive and management teams are committed to increasing
           its ability to procure from diverse suppliers of natural gas while adhering to      participation of DBE suppliers in the procurement of fuel.
           the least-cost, best-fit principles as outlined in the CPUC-approved Long Term
           Procurement Plan . Additionally, SCE is unaware of any DBE suppliers that can       In 2010, SCE continued to maintain relationships with diverse suppliers and
           provide the fuel needed for diesel and nuclear generation. Still, SCE was able to   identify new qualified participants to increase participation and competition
           have purchased 1.5% of its LPG supplies from diverse suppliers.                     in fuel procurement.

           SCE’s largest fuel commodity purchased for electric generation is natural gas.      Natural Gas Suppliers
           In recent years, the largest impediment to include more DBE suppliers has been
           the lack of credit-worthy companies that are able to offer competitively priced     During the year, SCE made advancements to overcome internal and external
           supplies. However, SCE has actively helped diverse suppliers with the process of    hurdles in facilitating the use of DBE suppliers for physical natural gas transactions
           becoming enabled to transact with SCE for physical natural gas. For example in      through the North American Energy Standards Board (NAESB) base contract for
           2010, the company developed an internal policy to allow it to enter into short-     the sale and purchase of natural gas.
           term transactions with DBEs who lack financial strength.
                                                                                               Financial wherewithal continues to be the most significant hurdle for DBE
           As detailed in its 2010 plan, SCE is committed to continuing outreach to diverse    suppliers to overcome in today’s stringent credit market. In commodity energy
           fuel suppliers and seeking more opportunities to do business with them going        markets, it is standard practice to thoroughly review a prospective counterparty’s
           forward.                                                                            financial condition and operational expertise to determine if they can perform
                                                                                               under the terms of each transaction entered under the NAESB (i.e., pledging
                                                                                               collateral to an exposed party).

                                                                                               Counterparties with strong financial metrics (i.e., investment grade for senior
                                                                                               unsecured debt) are typically extended an unsecured line of credit, while parties
                                                                                               that do not meet this requirement must post collateral in the amount equal to




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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    the counterparties exposure. Although SCE has not identified any DBE suppliers          P ROGRAM     EXPENSES      (9.1.3)
                    that would qualify for unsecured credit, a number of DBE suppliers were in the
                                                                                                            See 2010 annual report, section 9.1.3, on page 23.
                    final stages of executing NAESB contracts with SCE at the end of 2010, and in
                    2010 the company developed an internal policy to enable DBEs to enter into
                    short-term limited transactions with SCE under their own NAESB. For long-term           G OAL   PROGRESS      (9.1.4)
                    transactions, it remains unclear how these entities will find the financial resources   SCE did not set targeted goals for the purchase of natural gas, diesel fuel, nuclear
                    needed to post collateral, should SCE be exposed for any outstanding transac-           fuel, or LPG fuel procurement because of the least-cost, best-fit principles of the
                    tions with a DBE supplier. SCE is committed to removing barriers to entry for DBE       Long-Term Procurement Plan.
                    participation in SCE’s procurement process and is continually seeking solutions to
                    resolve this complex issue.                                                             DBE suppliers are not able to provide competitive pricing compared to other
                                                                                                            natural gas suppliers in the market. In 2010, SCE made major strides in assist-
                    Enabling diverse firms under the NAESB is the first step toward doing business          ing numerous DBE suppliers negotiate enabling agreements with the company,
                    with DBE suppliers for natural gas; however, it does not guarantee that transac-        which will enable DBE suppliers to enter into natural gas transactions with SCE
                    tions will take place. SCE is mandated by the CPUC to conduct procurement via a         under the NAESB and according to the internal policy drafted as mentioned
                    least-cost methodology. DBE suppliers are held to the same standard as non-DBE          earlier. At the end of 2010, a number of DBE suppliers were near the final stages
                    suppliers in that they must provide competitive pricing for a product in order to       of the negotiation process.
                    be awarded any transactions.
                                                                                                            SCE was unaware of any DBE suppliers that could provide the uranium reprocessing,
                    SCE will continue to work with diverse suppliers to educate them on the natural         enrichment, or fabrication services required to provide suitable nuclear fuel for the
                    gas industry and assist them in becoming enabled with SCE.                              San Onofre Nuclear Generating Station.

                    External Activities                                                                     Fuel for SCE’s share of the Palo Verde Nuclear Generating Station and the Four
                                                                                                            Corners Generating Station is purchased by Arizona Public Service Company.
                    As part of the effort to increase opportunities for DBEs, SCE broadcasted the
                    launch of its 2010 Solar Photo Voltaic Program Request for Offers for Independent       In 2010, SCE purchased 1.5% of its LPG requirement from DBE suppliers. This is
                    Power Producers to the DBE community via its internal DBE database.                     a reduction from the previous year due to the lack of long-term pricing offers
                                                                                                                                              9.1.5
                                                                                                            available this year from the DBE suppliers.
                                                                                                                                               p15
                                                                                                                                                                                             A Summary of Prime Contractor Utilization
                    S UMMARY        O F P U R C H A S E S A N D / OR CONTRACTS    (9.1.2)
                                                                                                            S UBCONTRACTORS ( 9 . 1 . 5 )
                    A summary of the percentage of fuel type purchased from DBE suppliers in                                                                                                                                 Minority
                    2010 is provided in the table below. Results by ethnicity on fuel types that            SCE was not able to find DBE subcontractors for fuel procurement in 2010.                                       Business            B
                                                                                                                                                                              Minority               Minority               Enterprise          E
                    include purchases from DBE suppliers can be found in the chart on page 44.                                                                                 Male                  Female                   (MBE)
                                                                                                            C OMPLAINTS ( 9 . 1 . 6 )           Direct $                $365,198,069.15         $155,131,915.28 $520,329,984.43               $314
                          Natural Gas            Diesel               Nuclear           LPG
                                                                                                                                               Subcontracting were received from DBE suppliers
                                                                                                            No complaints applicable to fuel procurement $ $126,512,827.69 $17,554,847.31 $144,067,675.00 $105
                             0%                   0%                   0%              1.5%
                                                                                                            in 2010.                           TOTAL $          $491,710,896.84 $172,686,762.59 $664,397,659.43 $419

                                                                                                                                                Direct %                              9.0%                    3.8%                  12.8%
                                                                                                                                                Subcontracting %                      3.1%                    0.4%                    3.5%
                                                                                                                                                TOTAL %                              12.1%                    4.2%                  16.3%

                    WMDVBE PROGRAM EXPENSES_9.1.3                                                                                               Net Procurement**                                $4,078,687,330.06
                                                                                                                                                                                                                                     41
                                                                                                                                              **Note: Net Procurement includes purchase order, non-purchase order, and credit card dollars.
                       Expense Category                                2010
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                       Wages                                        $505,145.00
           SOUTHERN CALIFORNIA EDISON




           D IVERSE       S UP P L I E R S I N U N D E R U T I L I Z E D AREAS   (9.1.8)         2011 ANNUAL PLAN – FUEL PROCUREMENT

           Fuel procurement is recognized as an underutilized area for diverse suppliers. SCE
           continued to work directly with DBE suppliers to educate them on the industry,        G OALS (10.1.1)
           assist them in becoming enabled with SCE, and explore other opportunities of
           doing energy-related business.                                                        SCE is aware of the goals set by the CPUC to ensure the use of DBEs as fuel
                                                                                                 suppliers (15% from minority business enterprises, 5% from women business
                                                                                                 enterprises and 1.5% from service-disabled veteran enterprises). The company
           R ETENTION           OF ALL DOCUMENTS/DATA                (9.1.9)
                                                                                                 will measure its success in achieving DBE fuel procurement goals by comparing
           SCE will preserve all documents and data related to its DBE annual report for         aggregate purchase costs from all diverse suppliers with total fuel procurement
           a) three years or (b) the timeframe that is in compliance with SCE’s internal         expenses in each fuel type it purchases. SCE’s 2010 efforts showed significant
           document retention policy, whichever comes later. SCE will provide these              progress and it plans to further increase these activities in 2011.
           documents and data to the commission upon request.

                                                                                                 P LANNED    INTERNAL/EXTERNAL ACTIVITIES            (10.1.2)
           P ARTICIPATION          R E S U L T S B Y F U E L C A T EGORY     (9.1.10. A )
                                                                                                 SCE is focused on reducing barriers for DBEs to sell fuel to the company. In
           SCE’s procurement of LPG is within the women business enterprise (WBE)
                                                                                                 Energy Supply and Management, which is responsible for natural gas procure-
           category sourced from California via long-term contracts. Further details are
                                                                                                 ment, the company formed a cross-functional team, which includes Commercial,
           provided in the chart on page 44.
                                                                                                 Risk, Credit, and Legal department representatives. The team’s goal is to find
                                                                                                 mutually agreeable means to increase DBE supplier participation in SCE’s fuel
           M ARKET        C ON D I T I O N S A N D O U T R E A C H   (9.1.10. B )                procurement activities. Similarly, within Edison Material Supply, a team has been
                                                                                                 formed to renew focus on DBE procurement in the other fuel categories.
           The company is committed to working with diverse suppliers to find opportuni-
           ties for procurement of natural gas on mutually acceptable terms for both diverse     The company will work to maintain and strengthen existing DBE supplier
           suppliers and SCE.                                                                    relationships while seeking new diverse suppliers through industry conferences
                                                                                                 and seminars, trade associations, networking, onsite/offsite training sessions,
           SCE has an obligation to procure least-cost from suppliers with credit require-
                                                                                                 and relationships. In 2011, the company will also promote greater awareness of
           ments set by the CPUC to manage risk exposure. The market conditions during
                                                                                                 Supplier Diversity at SCE to diverse firms in renewables procurement and inform
           the 2008-2009 financial crisis have further supported the need to have stringent
                                                                                                 DBEs of renewable procurement opportunities.
           credit requirements while making it more difficult for diverse suppliers to receive
           the needed credit to conduct large transactions. Despite these difficult market       In addition, SCE will continue to provide guidance and training to diverse
           conditions, the company established policies for DBE suppliers, with limited          suppliers. Though this has generally been accomplished on a one-on-one basis
           financial strength, and began NAESB negotiations with several DBE suppliers for       with interested suppliers, in 2011, SCE plans to hold industry seminars to more
           natural gas during the year. By year-end, those DBE suppliers were near the final     widely educate diverse suppliers on its procurement process and opportunities
           stages of the negotiation process.                                                    for participation.
           SCE’s outreach activities in the area of fuel procurement are summarized in
           section 9.1.1.



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                    SUPPLIER DIVERSITY 2010 ANNUAL REPORT / 2011 ANNUAL PLAN




                    R ECRUITMENT        P L A N S F O R S U P P L IERS IN UNDERUTILIZED AREAS
                    ( 1 0 . 1.3)
                    SCE is committed and will continue to promote and educate diverse suppliers on
                    opportunities with the company in 2011. To increase the use of diverse suppliers,
                    SCE plans to work with them individually as well as collectively so they can
                    become more competitive and better prepared to participate in opportunities
                    with the company. SCE is close to executing NAESBs with several additional
                    diverse suppliers. The company is also exploring new avenues, like natural gas
                    storage and renewable power, to procure other forms of energy-related products
                    from DBEs. Introducing other products within fuels procurement for DBEs
                    increases their options to do transactions with SCE.


                    P LANNED      S U B C O N T R A C T I N G A C T IVITIES   (10.1.5)
                    SCE will continue to encourage major contractors to identify opportunities to
                    partner with DBE subcontractors, where applicable.


                    P ROGRAM      COMPLIANCE         (10.1.6)
                    SCE intends to fully comply with DBE program guidelines.




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           SOUTHERN CALIFORNIA EDISON




                                                                                   Annual Product Results by Ethnicity

                                                                                                   LPG
                                                                                           Volume:                           Cost: Thousand $
                                                                                          Gallons (000)   %         Direct         Sub            Total    %
                                        1.                 Asian Pacific                       0          0.0%           0          0              0      0.0%
                                        2.                 African American                    0          0.0%           0          0              0      0.0%
                                        3.    Minority     Latino                              0          0.0%           0          0              0      0.0%
                                        4.    Male         Native American                     0          0.0%           0          0              0      0.0%
                                        5.                 Other                               0          0.0%           0          0              0      0.0%
                                        6.                 Total Minority Male                 0          0.0%           0          0              0      0.0%
                                        7.                 Asian Pacific                       0          0.0%           0          0              0      0.0%
                                        8.                 African American                    0          0.0%           0          0              0      0.0%
                                        9.    Minority     Latino                              0          0.0%           0          0              0      0.0%
                                        10.   Female       Native American                     0          0.0%           0          0              0      0.0%
                                        11.                Other                               0          0.0%           0          0              0      0.0%
                                        12.                Total Minority Female               0          0.0%           0          0              0      1.5%


                                              Women Business
                                        13.                                                    9          1.3%       16             0             16      1.5%
                                              Enterprise (WBE)
                                              Subtotal Women & Minority Business
                                        14.                                                    9          1.3%       16             0             16      1.5%
                                              Enterprise (MWBE)
                                              Service-Disabled Veteran
                                        15.                                                    0          0.0%           0          0              0      0.0%
                                              Business Enterprise (SDVBE)
                                        16.   TOTAL WMDVBE                                     9          1.3%       16             0             16      1.5%
                                        17.   TOTAL FUEL                                    697           1.3%    1,056             0           1,056     1.5%




44


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9516_DiversityAR_2010.indd 45   3/1/11 10:12 AM
                                  Southern California Edison
                   Supplier Diversity and Development

                                                        P.O. Box 800
                                  2244 Walnut Grove Avenue
                                           Rosemead, CA 91770
                                                      800-275-4962
                                                 www.sce.com/sd




                               All papers used in this report are recycled.




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