At its 23rd Annual Supplier Diversity En Banc, the California Public Utilities Commission (CPUC) brought together commissioners, legislators, utility executives, and community advocates to discuss the progress and future of General Order (GO) 156. This framework was established in 1986 to increase business opportunities for enterprises owned by minorities, women, disabled veterans, and LGBTQ individuals within utilities regulated by the CPUC.
In 2024, utilities participating in GO 156 reported $13.1 billion in spending with certified diverse suppliers. This spending is part of California’s broader $400 billion energy and utilities sector.
“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.”
CPUC President Alice Reynolds stated that inclusive procurement not only promotes equity but also supports reliability and affordability. “When local businesses thrive, they reinvest in their neighborhoods, which strengthens our economic fabric and keeps our utility systems more adaptive and responsive,” she said.
Panelists at the event discussed ongoing challenges such as certification barriers, limited access to capital, and increasing insurance costs that affect small and diverse suppliers. Community panel participants advocated for expanded mentorship programs and clearer pathways for new businesses to compete for contracts. Green commented on these efforts: “We need to meet suppliers where they are,” adding that the CPUC is working with utilities to “simplify processes, improve transparency, and make sure that opportunity is not defined by scale.”
Utilities are adjusting their programs to address these structural issues. Examples cited included Southern California Edison’s Edison Edge mentorship program, SoCalGas’s Quick Pay initiative, and Verizon’s Small Business Accelerator.
The link between supplier diversity and clean energy was also highlighted at the event. Utilities noted growing opportunities for small firms in areas such as grid modernization, electric vehicle charging infrastructure development, artificial intelligence integration into energy systems, and wildfire mitigation projects.
“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 underscored California’s role as a national leader in equitable utility procurement practices while emphasizing that supplier diversity aims to create open competition for all businesses.
President Reynolds concluded that inclusive procurement enhances innovation as well as reliability and prosperity within communities.
For ratepayers across California, this approach means benefits from clean energy initiatives and infrastructure improvements are distributed more equitably throughout the state.
