OUR MISSION. Working Together. Delivering Solu ons. Improving Lives

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1 ANNUAL REPORT 2016

2 OUR MISSION Working Together In partnership with our established network of 3,000 partner organiza ons, we design and manage programs to operate seamlessly. Delivering Solu ons Customized, flexible solu ons help our clients achieve their goals. Improving Lives Our socially responsible programs help businesses and families save money, protect our environment and make our communi es a be er place to live.

3 A MESSAGE FROM OUR CEO Delivering Solu ons is not just the tag-line on our new logo. It is our way of doing business; a core principle of everything we do. Every year the RHA team exhibits tremendous dedica on to our mission and our local communi es, and 2016 was no excep on. We delivered on our commitments and achieved excep onal results for our clients and their customers. We are proud of our 2016 accomplishments highlighted in this Annual Report. We hope it provides insight into what makes RHA unique. Cynthia Bruno Chief Execu ve Officer Richard Heath & Associates, Inc.

4 OUR IMPACT IN M kwh saved 2M Therms saved $10M Energy savings 3K Small businesses served 99K Households received energy efficiency services 23K Residen al energy efficiency inspec ons completed 76K Individuals and families connected with insurance programs 49K Metric tons of CO₂ reduced Equal to 121M miles driven by an average passenger vehicle

5 BIG IDEAS, NEW SOLUTIONS RHA is an industry leader and brings innova ve solu ons and emerging technologies to client programs. Data-Driven Program Design: Our programs leverage data to inform best prac ces and drive program improvements. Using this data, we target high energy users and provide ongoing and customized energy educa on based on usage pa erns. Emerging Technologies: We help clients test and launch energy saving solu ons. Our engineering services help clients analyze results and evaluate effec veness.

6 BRINGING ENERGY SAVINGS HOME The Residen al Energy Fitness Program uses advanced-metering infrastructure billing data to iden fy and target customers who can benefit most from program par cipa on. Customers receive innova ve and cost-effec ve energy saving measures and customized savings ps. This tailored approach empowers customers to save energy and reduce their overall u lity bills. Launched in 2016 as a pilot program, the Residen al Energy Fitness Program has served more than 650 Pacific Gas and Electric Company (PG&E) customers.

7 CONNECTING PEOPLE TO VITAL SERVICES The California Low Cost Auto Insurance Program makes auto insurance accessible and affordable for qualified drivers. With our partner network, we successfully generated over 16,000 leads to insurance agents. As a result, 11,000 drivers who could not previously afford or qualify for auto insurance were enrolled into the program. RHA partner, Project ALOFA (Another Loving Opportunity For All), engaged low-income and immigrant communi es at 679 events, and pre-qualified over 1,500 individuals for the California Low Cost Auto Insurance program.

8 HELPING SMALL BUSINESSES CUT COSTS Through PG&E s Energy Watch program, RHA provides small businesses with installa on of energy-efficient measures, energy educa on and financing program informa on to help lower usage and save money. New ligh ng at the Fresno Ashlan Gas & Mart will save over $2,900 per year on energy bills.

9 GIVING BACK TO OUR COMMUNITIES Volunteers do not necessarily have the me; they just have the heart. -Elizabeth Andrew $6,511 donated 415 hours volunteered

10 OTHER 2016 HIGHLIGHTS Focus on Safety 358 incident free days ISO Cer fica on Maintained ISO 9001:2008 and 14001: 2004 cer fica on Awards & Recogni on Diverse Business Enterprise by Southern California Edison

11 WORKING IN PARTNERSHIP Alpine Natural Gas Anaheim Public U li es Azusa Light and Water Burbank Water and Power California American Water Company California Department of Community Services and Development California Department of Insurance City of Banning Electric U lity City of Vernon Gas and Electric Department City of Victorville Colton Electric U lity Covered California Glendale Water & Power Lawrence Berkeley Na onal Laboratory Liberty U li es Long Beach Unified School District Moreno Valley Electric U lity Pacific Gas & Electric Company Rancho Cucamonga Municipal U lity Riverside Public U li es San Diego Gas & Electric Company Solano County Water Agency South Lake Tahoe Public U li es Southern California Gas Company Southern California Edison Southwest Gas Victorville Municipal U lity Services Yolo County rhainc.com

12 Richard Heath & Associates, Inc. holds B, C-20 and C-10 California contractor licenses, and is a cer fied Minority Business Enterprise. rhainc.com FRESNO CHICO LOS ANGELES SAN DIEGO