At the 23rd Annual Supplier Diversity En Banc, the California Public Utilities Commission (CPUC) highlighted its ongoing commitment to equitable procurement practices within the state’s utility sector. The event, held at the Carson Event Center in Southern California, brought together CPUC Commissioners, legislators, utility executives, and community advocates to review progress under General Order (GO) 156 and discuss future strategies.
GO 156 was established in 1986 to encourage utilities regulated by the CPUC to increase contracting opportunities for businesses owned by minorities, women, disabled veterans, and LGBTQ individuals. Over nearly forty years, this policy has become a central part of California’s approach to economic inclusion.
In 2024, utilities participating in GO 156 reported spending $13.1 billion with certified diverse suppliers. This figure reflects the growing impact of equitable procurement across California’s energy and utilities industry.
“Supplier diversity is not an add-on, it’s integral to how California builds resilience,” said Stephanie Green, Senior Program Manager for the CPUC’s Utility Supplier Diversity Program. “When we invest in diverse businesses, we’re investing in innovation, community stability, and ultimately in better value for ratepayers.”
The event addressed how supplier diversity affects not only corporate operations but also utility customers. According to CPUC President Alice Reynolds: “When local businesses thrive, they reinvest in their neighborhoods, which strengthens our economic fabric and keeps our utility systems more adaptive and responsive.” She added that inclusive procurement supports both reliability and affordability for ratepayers.
Panelists discussed persistent challenges facing small and diverse suppliers—such as certification requirements, limited access to capital, and increasing insurance costs—that can hinder their participation. Community advocates at the En Banc called for expanded mentorship programs and clearer pathways for emerging businesses seeking contracts with major utilities.
“We need to meet suppliers where they are,” Green noted during a panel discussion. She explained that efforts are underway at the CPUC to work with utilities on simplifying processes and improving transparency so that opportunities are accessible regardless of business size.
Utilities have begun adapting their programs in response. Initiatives like Southern California Edison’s Edison Edge mentorship program and SoCalGas’s Quick Pay initiative were cited as examples of how large companies are evolving their procurement practices to be more inclusive.
As California advances toward clean energy goals—including grid modernization and wildfire mitigation—the role of supplier diversity continues to expand. Opportunities are growing for small firms working on electric vehicle charging infrastructure or integrating artificial intelligence into utility operations.
“Clean energy transformation must be a collective effort,” said Green. “If we build a sustainable future without inclusivity, we’re missing the point, and missing out on talent and innovation that drive results.”
The En Banc concluded with discussions about how California is setting a national standard for equitable participation in utility procurement while continuing efforts to make contracting processes open and competitive for all types of businesses.
President Reynolds summarized: inclusive procurement strengthens innovation, reliability, and community prosperity throughout California.
