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 progress and future of supplier diversity under General Order (GO) 156. This order, established in 1986, mandates that utilities regulated by the CPUC increase business opportunities for enterprises owned by minorities, women, disabled veterans, and LGBTQ individuals.
According to reports from participating utilities, $13.1 billion was spent with certified diverse suppliers in 2024. This figure highlights the significance of equitable procurement 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 event addressed how these procurement policies impact utility customers by ensuring that spending is reinvested into underserved communities. CPUC President Alice Reynolds stated: “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 improves both reliability and affordability.
Despite progress made under GO 156 over nearly four decades, challenges remain. Panelists pointed out ongoing obstacles such as certification requirements, limited access to capital for small businesses, and increasing insurance costs. Community leaders at the event called for more mentorship programs and clearer paths for new businesses to compete for contracts.
Green commented on these barriers: “We need to meet suppliers where they are,” adding that efforts are underway to “simplify processes, improve transparency, and make sure that opportunity is not defined by scale.”
Utilities have responded with new initiatives aimed at reducing barriers. Programs like Southern California Edison’s Edison Edge mentorship program and SoCalGas’s Quick Pay initiative were mentioned as examples of adapting procurement strategies to be more inclusive.
As California moves forward with its clean energy goals—including grid modernization and wildfire mitigation—opportunities are expanding for small firms in related sectors such as electric vehicle charging infrastructure and artificial intelligence integration.
“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.”
CPUC Commissioner Karen Douglas led discussions on collaboration within clean energy projects during a fireside chat at the event.
The En Banc underscored California’s position as a leader in promoting supplier diversity within utility procurement nationwide. President Reynolds concluded that inclusive procurement enhances innovation and community prosperity: “inclusive procurement strengthens innovation, reliability, and community prosperity.”
For ratepayers across California, this approach means broader participation in—and benefits from—the state’s ongoing investments in clean energy transition and infrastructure modernization.
