AT&T Comments on Staff Proposal to Revise General Order 156 for Supplier Diversity Program

Strategic Insights -

As the California Public Utilities Commission considers revising General Order 156 to include new categories and increase voluntary procurement target goals, AT&T submits its reply comments on the Staff Proposal. The company agrees with some of the proposed changes, but highlights concerns and data gaps in the Staff Proposal. Specifically, AT&T supports a 0.5% voluntary procurement target goal for Lesbian, Gay, Bisexual, Transgender Business Enterprises (LGBTBE), as this is supported by data. However, the company notes that the Staff Proposal's target goal of 1.5% is not attainable in the foreseeable future, and that the proposed eleven-fold increase in LGBTBE spend without providing data points to substantiate the proposal is unrealistic.

Key Takeaways:

  • AT&T supports a 0.5% voluntary procurement target goal for LGBTBE, as it is supported by data.
  • The Staff Proposal's target goal of 1.5% is not attainable in the foreseeable future, and is based on data points that do not exist.
  • AT&T has found a 20% decrease in available LGBTBE firms in the Supplier Clearinghouse since January 2020, making it difficult for utilities to meet the proposed target goal.
  • The Staff Proposal fails to consider whether available LGBTBE firms are qualified to do the requisite work and whether they operate within the industries where utilities have a large procurement budget.
  • AT&T agrees with other parties that the Commission should not adopt the workforce and board diversity requirement, as there is no legal authority for the Commission to assert jurisdiction over the composition of workforces employed by utility companies.
  • AT&T agrees with Southern California Edison that the requirement to provide workforce and corporate board data is unnecessary, and that companies should be allowed to provide references to reports already filed with other government agencies.
  • Any workforce or corporate board data that is not already publicly available should not be disclosed publicly or identify any company-specific data.

Statistics:

  • There has been a 20% decrease in available LGBTBE firms in the Supplier Clearinghouse since January 2020.
  • The Staff Proposal asks utilities to increase their average LGBTBE spend eleven-fold, from $46 million to $506 million, without providing data points to substantiate the proposal.
  • The proposed 1.5% voluntary procurement target goal for LGBTBE is not supported by data.
  • There are currently insufficient LGBTBE suppliers in the supply chain to meet the proposed target goal.

Sources:

  • Comments of MCI Communications Services LLC, XO Communications Services, and Cellco Partnership on Staff Proposal to revise GO 156 - Supplier Diversity Program (R.) 21-03-010, at 1-2 (Aug. 4, 2021)
  • Comments of Comcast on Staff Proposal and Workshop to Revise GO 156 for the Supplier Diversity Program (R.) 21-03-010, at 3 (Aug. 4, 2021)
  • Comments of Cox Communications on Staff Proposal (R.) 21-03-010, at 2 (Aug. 4, 2021)
  • Comments of SDG&E and SoCalGas to the Staff Proposal to Revise General Order 156 for the Supplier Diversity Program and Workshop (R.) 21-03-010, at 2 (Aug. 4, 2021)
  • Opening Comments of PG&E on Staff Proposal, Workshop, and Additional Questions (R.) 21-03-010, at 6 (Aug. 4, 2021)
  • Comments of Southwest Gas on the Staff Proposal To Revise General Order 156 for the Supplier Diversity Program, Subsequent Workshop, and Questions Presented (R.) 21-03-010, at 5 (Aug. 4, 2021)
  • Comments of California Water Association on Workshop, Staff Proposal, and Questions Presented (R.) 21-03-010, at 8 (Aug. 4, 2021)
  • D.95-12-045 at 12