But before you apply for every certification, you should know who recognizes the certification and what products or services they purchase. With that information, you should apply for the certifications that will benefit your company. Let us explore the CPUC certifications and see if it can help your business thrive.

CPUC Supplier Diversity Program Certifications:

• Women Business Enterprise (WBE): a business at least 51% owned by one or more women, and whose management and daily business operations are controlled by one or more women.
• Minority Business Enterprise (MBE): is a business at least 51% owned by one or more minority individuals, and whose management and daily operations are controlled by one or more of those individuals. Recognized minorities include Asian Americans, African Americans, Hispanic Americans and Native Americans, among others.
• LGBT Business Enterprise: is a business at least 51% owned by a lesbian, gay, bisexual, or transgender person or persons and whose management and daily operations are controlled by one or more of those individuals.
• Persons with Disabilities Business Enterprise: is a business at least 51% owned by a person or persons with a disability, and whose management and daily business operations are controlled by one or more of those individuals.

Who uses/recognizes these certifications?

The easy answer is any entity that falls within the CPUC’s scope. This includes all public utilities, electricity firms, and phone/internet operators that operate in California. There is a total of 40 firms and utilities on this list. Some of you are aware of such companies like Comcast, AT&T, Verizon, and PG&E. Others you might not know include Silicon Valley Clean Energy, San Jose Water Company, CalChoice, California Water Services, and so on.

What do they buy and how much do they spend?

CPUC mandated that these utilities and phone/internet companies spend at least 22.5% of their total budgets with diverse suppliers. To put that in perspective:

• California Water Service spent $91.5 million with certified, diverse suppliers in 2023. This total represents 27% of their total spend on goods and services. (Source: Cal Water GO156 Supplier Diversity Annual Reports – Cal Water)
• Southwest Gas Corporation spent $51 million with certified, diverse suppliers in 2023. They also spent another $148 million with Arizona and Nevada-certified, diverse suppliers in 2023. This represents 49% of their total spend on goods and services. (Source: Microsoft Word – 2023 Supplier Diversity Report 2024 Plan_DRAFT Feb 22 2024 (004) (swgas.com))
• California American Water spent $670 million with certified, diverse suppliers in 2023. This total represents 22% of their total spend on goods and services. (Source: california-americanwater-supplier_diversity_report_2023.pdf (amwater.com))

This snapshot is a glimpse into the amount of dollars being spent with certified, diverse suppliers who are aggressively seeking contract opportunities with utilities and phone/internet firms regulated by the CPUC.

My real life example.

Before my time as an APEX Procurement Specialist, I owned my own business. One of the decisions I made as a business owner was to go through the process of obtaining my Minority Business Enterprise (MBE) certification with CPUC. The process of gathering all my documents, submitting them, completing the application, and waiting for final approval took 6 months. However, while I waited for the approval process to complete, I had already begun marketing my products to the Supplier Diversity Managers. My strategy was to focus my energy on marketing to the water companies in Northern California. I was able to find the current Supplier Diversity Managers directly on their websites, or by using LinkedIn. With contact information in hand, I reached out by phone and email to introduce myself and learn what I can do to best present my company and products to their buyers. Being extremely proactive and making myself known to the Supplier Diversity Managers immediately allowed me to fast-track my sales process.  In the end, I saw initial success selling to San Jose Water Company, California Water Services, and Golden State Water Company.

I am interested. Now what?

For those who are seeking a CPUC Supplier Diversity Program certification, consider Supplier Clearinghouse. For those who already have a CA SB or DVBE but desire to have an advantage when marketing to utilities and phone/internet companies, then you should also consider Supplier Clearinghouse. However, if you are seeking certifications just to have them, and you do not invest the time and energy into marketing your company, its products/services with your certification, then consider wisely. The paperwork required is extensive and so is the competition. Simply getting an MBE, WBE, etc. certification is never enough to win contracts. So before investing the time and energy into obtaining these certifications, consider the following first.

1. Review the current database of certified firms that are your direct competitors. The Supplier Clearinghouse (link to database).
2. Reach out to at least two or three Supplier Diversity Managers working for utilities companies. Make sure there is a need or desire for your products or services.
3. Create a game plan or marketing before you apply for certification.

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These steps will help ensure that you optimize your time and energy wisely and make the best decisions for your company’s success with procurement. And finally, if you require any assistance with the application or need additional questions answered, please contact your Norcal APEX Accelerator counselor for assistance or apply for services today!

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Authored by: Thomas Burns, Norcal APEX Accelerator Procurement Specialist