At the 23rd Annual Supplier Diversity En Banc, held at the Carson Event Center in Southern California, the California Public Utilities Commission (CPUC) brought together commissioners, legislators, utility executives, and community advocates to discuss the ongoing impact and future direction of General Order (GO) 156. This order requires utilities regulated by the CPUC to increase business opportunities for enterprises owned by minorities, women, disabled veterans, and LGBTQ individuals.
GO 156 was established in 1986 and has become a key part of California’s economic landscape. In 2024, utilities participating in this initiative reported $13.1 billion in spending with certified diverse suppliers. This figure highlights both the scale of equitable procurement efforts and their importance within California’s 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.”
The program’s benefits extend beyond procurement processes. For utility customers across California, these efforts mean that money from ratepayers is reinvested into local communities through job creation and economic development—especially in underserved areas.
CPUC President Alice Reynolds emphasized that inclusive procurement supports more than just equity: “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.
Despite progress made under GO 156, panelists at the event acknowledged several challenges remain for small and diverse suppliers—including certification difficulties, limited access to capital resources, and rising insurance costs. Community leaders at a panel discussion called for increased mentorship programs as well as clearer pathways for new businesses seeking contracts with major utilities.
“We need to meet suppliers where they are,” Green noted during one session. She added that CPUC is working with utilities to “simplify processes, improve transparency, and make sure that opportunity is not defined by scale.”
Utilities are also adapting their approaches; initiatives such as Southern California Edison’s Edison Edge mentorship program or SoCalGas’s Quick Pay initiative aim to lower barriers for small firms seeking entry into utility supply chains.
As California continues its transition toward clean energy—focusing on grid modernization projects like EV charging infrastructure or wildfire mitigation—supplier diversity remains closely linked with these goals. Opportunities are increasing for smaller firms specializing in these emerging fields.
“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 event highlighted that while California sets a national standard for supplier diversity within utility procurement practices today—with broad participation from both large companies like Verizon (which runs its own Small Business Accelerator) as well as smaller enterprises—the work ahead involves making open competition accessible to all qualified businesses.
“Inclusive procurement strengthens innovation, reliability, and community prosperity,” President Reynolds summarized at the close of discussions.
For residents throughout California who pay utility bills each month—and who rely on continued improvements to infrastructure—the message from this year’s En Banc was clear: ensuring everyone has an opportunity means cleaner energy solutions will benefit all communities across the state.
