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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Consumer Service and Information Division

RESOLUTION CSID - 005

Public Advisor's Office

Date: November 10, 2011

D R A F T R E S O L U T I O N

Resolution CSID - 005 approves extension of duration for the pilot program, referred to as Community Help and Awareness with Natural Gas and Electricity Services (CHANGES) which provides education, resolution of needs and disputes, and outreach on energy matters. The program is designed for limited English proficient consumers to receive this assistance in their preferred language. Services are provided through a statewide network of community based organizations.

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Summary

On November 19, 2010, the California Public Utilities Commission (Commission) issued Resolution CSID - 004 and approved a one-year in-language pilot program referred to as Community Help and Awareness with Natural Gas and Electricity Services (CHANGES). The CHANGES pilot program provided energy-related (electric and natural gas) education, resolution of needs and disputes, and outreach services for limited English proficient (LEP) consumers in their preferred languages through an existing statewide network of community based organizations (CBOs).

Through CSID - 004, the Commission directed the Consumer Service and Information Division (CSID) to evaluate the effectiveness of the pilot and recommend whether the program should continue. In response to that order, this resolution details the achievements of the pilot, and recommends that the pilot duration be extended to allow time for additional data collection and pilot evaluation as well as time to review and address appropriate California Alternate Rates for Energy (CARE) funding in the Commission's current proceeding relating to the four major energy investor-owned utilities'1 (IOUs) 2012-2014 CARE budget Applications (A.) 11-05-017 through and including A.11-05-0202 (CARE Budget Proceeding).

By this Resolution, the pilot will be extended and will continue until the Commission makes a final determination on whether CHANGES should become a permanent program. For the time being, the pilot will continue to be funded through CARE funds at a level not to exceed $60,000 per month until the Commission determines a different future funding level in its CARE Budget Proceeding.

The intent of this pilot extension is to ensure that there will be no gap in pilot authority or funding, and therefore services, while the Commission collects and evaluates data, and considers whether the CHANGES pilot should become a permanent program.

CSID and the Energy Division, along with an independent consultant, should review 12-months of data collected concerning the pilot program to determine its ability to effectively assist LEP consumers and evaluate the benefits of the pilot's use of CARE funds. By July 15, 2012, a report of the pilot program's 12 months of use of CARE funds and its attendant benefits to CARE Program will be prepared and submitted by the independent consultant to the assigned Administrative Law Judge in the CARE Budget Proceeding for inclusion and consideration in that proceeding.

CSID will provide a recommendation, through a resolution to the Commission on whether the pilot program should be approved as an ongoing program.

Background

More than six million, or 20 percent3, of California's consumers have limited proficiency in English. California leads the nation in illiteracy; that is, people who cannot read, speak or write English.4 This includes residents who have not successfully acquired reading, writing or speaking skills in English, members of the deaf community who communicate in Sign language and immigrants who have yet to achieve fluency in English5.

Speaking a primary language other than English may create a barrier to learning about and receiving the benefits of consumer programs. State laws require state agencies and corporations to provide services in-language and both the Commission and the energy utilities have acted to provide in-language assistance through bilingual staff, language phone lines and in-language brochures6.

LEP consumers benefit from assistance provided by CBOs. The Commission's Consumer Protection Initiative (CPI) for telecommunications, Decision (D.) 06-03-013 states, "We believe that we can improve our complaint resolution efforts by working more with CBOs, which possess unique insights into problems faced by specific communities."7 The Commission's decision addressing the needs of Telecommunications Consumers who have Limited English Proficiency, D. 07-07-043 also states that, "CBOs play an important role in bridging the barriers to effective communications between carriers and LEP consumers."8 Although both decisions concern the telecommunications industry, those same benefits could be translated to the CHANGES program and, in fact, have contributed to its accomplishments to date.

As a part of the CPI (D.06-03-013), and the Limited English Proficiency (D.07-07-043) Decisions, the Commission created the Commission's Telecommunications Education and Assistance in Multiple-languages (TEAM) program which provides outreach, education and complaint resolution services to consumers in the language of their choice through a statewide network of CBOs.

While participating in the TEAM program, the CBOs noted that consumers that used the TEAM program for in-language assistance also requested help understanding energy services and bills in the language of their choice. LEP consumers requested help understanding and enrolling in consumer programs, avoiding disconnections, getting payment arrangements, and resolving disputes. The realization that the LEP consumers were seeking such broad in-language assistance from the CBOs alerted the CSID that LEP consumers would benefit from an energy assistance program similar to TEAM. Therefore, the CHANGES program was conceived based on the TEAM model of providing in-language assistance through that same statewide network of CBOs in the TEAM program.

Discussion

On November 19, 2010, the Commission approved a pilot program, through Resolution CSID - 004, to provide LEP consumers with outreach, education, and assistance resolving their energy needs and disputes in-language. A workshop was held to receive input from interested parties. With that input, a pilot was jointly developed by the Commission's CSID Public Advisor's Office, the four major energy IOUs and the current TEAM contractor.

The CHANGES program launched in February 2011 and is comprised of four components: Outreach, Education, Needs Resolution and Dispute Resolution. Topics and samples which each component may include are as follows:

The CHANGES pilot program is administered through the same contractor, and performed by the same CBOs which are part of the Commission's TEAM program. TEAM provides the same in-language services for telecommunications issues; therefore, its contractor and CBOs already possessed the skills needed for an accurate test of the CHANGES pilot. The CHANGES pilot program is overseen by the CPUC's CSID. The contractor reports that from February 2011 to date, the 22 CBOs participating in the pilot have achieved the following:

In general, the CBOs in the CHANGES program, as in TEAM, have been more successful in communicating with LEP clients because those CBOs have been established as leaders in their communities for many years. Those CBOs' representatives are providing in-language assistance and are often from the same cultures as those they serve. This affinity provides additional insights, trust and confidence necessary for cultural sensitivity and effective communication with these consumers.

All four components of the CHANGES program complement and support each other. Therefore, each CBO should continue to provide each of the components to their clients. The outreach component brings clients to the CBO workshops where the education component applies to teach consumers about energy services. At the workshops, or as a result of them, clients bring their bills to the CBOs for assistance with the components related to resolution of needs and disputes.

Funding - While the CBOs participating in the CHANGES pilot program provide information when appropriate about the CARE program to the LEP consumers, the CHANGES pilot program is not a utility CARE program. It is an in-language assistance pilot program for non-English speaking and low-English proficient energy customers.

It so happens that the CHANGES pilot program while serving the LEP communities also seems to be serving the CARE program eligible population. For instance, ninety-two percent of the clients assisted through CHANGES have reported that they are eligible for CARE service and a significant amount of them are seniors. The CHANGES program also has an education component which includes workshops on payment arrangements, level payment plans, explanation of consumer programs and other measures a person can take to avoid disconnection. Likewise, CHANGES dispute and needs components can assist a consumer to secure payment arrangements, receive referrals to assistance agencies, and other measures to avoid service disconnection.

Because there appears to be a potential for a strong connection between the LEP communities being served and the CARE program population, the CHANGES pilot program was initially approved for funding through CARE program funds. The California Public Utilities Code, Section 739.4 permits utilizing those funds to provide services to help low income utility customers and seniors avoid unnecessary disconnections by providing information about assistance programs, payment arrangements and level payment plans.

For the duration of the pilot, the IOUs will continue to fund the program through CARE funds capped at $60,000 per month, using the 30-25-25-15 funding split previously approved for Resolution E-3585 for all of the utilities pilots, studies and joint efforts. This funding level is based upon current invoices from the CBOs, reflecting the administration costs, ongoing training, and database maintenance. Also included is an anticipated increase in needs and disputes during the winter months which are invariably accompanied by service problems and high heating bills.

The Commission's CARE Budget Proceeding will address the level of funding to be allocated from the CARE program funds for the CHANGES pilot program. This approach will provide greater opportunities for comment and evaluation of the funding for the CHANGES pilot within the context of the overall CARE program framework.

During the pilot program, the IOUs have contracted directly with Self Help for the Elderly as the manager for the CHANGES program. The contractor in turn pays the subcontractors, for their services. The IOUs will amend their current contracts to cover the pilot extension period.

Program evaluation and report - CSID and the Energy Division will work with an independent third party consultant who will review 12-months of data collected concerning the pilot to evaluate the effectiveness of the pilot program and evaluate the benefits of the pilot's use of CARE funds. The evaluation will be funded through the utilities' CARE Measurement and Evaluation budget. This evaluation funding is in addition to the previously authorized program dollars. The focus and scope of the evaluation should be developed collaboratively by CSID staff and Energy Division staff. The scope should include, but is not limited to reviewing the implementation of the pilot program including review of systems and the quality of tracking data, effectiveness of reaching program objectives and understanding how the program activities supports CARE and other low income demand side management programs.

The independent consultant's role will be to evaluate and make recommendations concerning the pilot based on these review elements, and additional factors may be used to consider the effectiveness of the pilot program in assisting LEP consumers and evaluating the benefits of the pilot's use of CARE funds. The independent consultant's evaluation and recommendation should be presented in a final report. By July 15, 2012, the independent third party consultant will prepare, complete and submit the final report to CSID, Energy Division and the assigned Administrative Law Judge in the CARE Budget Proceeding for inclusion and consideration in that proceeding.

Comments

The draft resolution was e-mailed on October 5, 2011, to parties on the Service Lists for proceedings R.10-02-005 (regarding customers' electric and natural gas service disconnection) and A.11-05-017 (consolidated proceeding for the utilities 2012-2014 CARE and Energy Savings Assistance Programs) and other interested people.

Comments are due October 25, 2011, and should not exceed seven pages in length. Reply comments are not requested. Comments should be concurrently served via e-mail on the CSID Director Loreen R. McMahon, CPUC Public Advisor Karen Miller, CHANGES program manager Kyle DeVine, all five Commissioners, Ramon Momoh, Commissioner Simon's energy advisor, the Chief Administrative Law Judge, Karen Clopton, Administrative Law Judge Kimberly Kim, CPUC General Counsel, Frank Lindh, Energy Division Demand Side Programs Supervisor, Hazlyn Fortune, Energy Division Analyst, Ava Tran, Energy Evaluation and Measurement Supervisor, Carmen Best, and other interested people listed in Attachment B, and the service lists for R.10-02-005 and A.11-05-017.

Findings of Fact

Conclusions of Law

10. It is reasonable to calculate the CHANGES monthly budget based upon past actual monthly budgets for the CHANGES program plus forecasted increase in CHANGES budget required for the winter months for the interim funding period.

THEREFORE, IT IS ORDERED THAT:

This Resolution is effective today.

I hereby certify that the Public Utilities Commission adopted this Resolution at its regular meeting on November 10, 2011. The following Commissioners approved it:

Attachment A

California Public Utilities Code, Section 739.4

739.4. (a) Any natural gas customer who enrolls in the CARE program after the effective date of this section, but before October 1, 2001, shall receive the same one-time bill credit based on the amount of each gas corporation's average CARE customer discount applied for each month in October 2000 to March 2001, inclusive. The credit does not apply to a customer who initiates service with a gas corporation after the effective date of this section, and who has no prior history of service with the gas corporation. CARE program funds shall be used for the purpose of providing these credits. The commission shall adjust CARE program income requirements annually to reflect the increased cost-of-living due to inflation.

   (b) The commission shall require all electrical and gas utilities through which CARE program rates are available to do all of the following, in multilingual formats to the extent printed and recorded information is provided, to facilitate better penetration rates for the CARE program and to protect low-income and senior households from unwarranted disconnection of necessary electric and gas services:

   (1) Provide an outgoing message on all calls, where the customer is seeking to establish service or is put on hold, to customer service lines that briefly describes the CARE program in standard language approved by the commission, and that provides a toll-free phone number for customers to call to subscribe to the program or for further information.

   (2) Provide information to customers about the CARE program and facilitate subscription to CARE, on all calls in which customers are making payment arrangements, on all collections calls, and on all calls for reconnection of service.

   (3) (A) Provide information about the CARE program and other assistance programs, and attempt to qualify customers for CARE, and provide information about individual payment arrangements that allow customers to pay the amounts due over a reasonable period of time, not to exceed 12 months, and attempt to enroll customers in a payment arrangement program, before effecting any disconnection of service for nonpayment or inability to pay energy bills in full.

   (B) (i) Offer individual payment arrangements to customers so that the customer is able to pay amounts due over a reasonable period of time, not to exceed 12 months.

   (ii) Prohibit the disconnection of customers that have made, and are in compliance with, payment arrangements offered by an electric or gas utility pursuant to this subparagraph.    (C) Prohibit the disconnection of a delinquent residential customer for amounts due in which the electric or gas utility receives a commitment pledge, letter of intent, purchase order, or other notification that a provider of energy assistance is forwarding payment sufficient to prevent disconnection.

   (D) (i) Advise residential customers facing disconnection or who contact the utility to make payment arrangements of the levelizing payment program that allows them to pay a monthly average bill based on 12 months usage.

   (ii) Advise residential customers about enrollment in the levelizing payment program in conjunction with completion of payment arrangements, payment under terms of subparagraph (B), or at the customer's request absent those arrangements.

   (E) Nothing in this paragraph is intended to reduce the revenues of any utility extending payment arrangements subject to the terms of the paragraph.

   (4) Provide information on customer bills, presented in a conspicuous manner on a front facing page that indicates that a customer may be eligible for the CARE program. This notice shall be provided quarterly on customer bills.

   (c) The commission shall conduct targeted outreach about the program using census block data to effectively target low-income and senior households throughout the state.

   (d) CARE program funds shall be used for the purposes of paragraph (3) of subdivision (b) and outreach pursuant to subdivision (c). The commission's costs for outreach pursuant to subdivision (c) may not exceed five hundred thousand dollars ($500,000) above the amount that the commission currently expends on similar activities related to the CARE program. Energy corporations may recover all reasonable costs from the CARE program funds of implementing this section.

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Attachment B

Service lists

Service lists are located on the cpuc website docket at cpuc.ca.gov or at the links below.

Service list for R.10-02-005

http://docs.cpuc.ca.gov/published/service_lists/R1002005_78892.htm

Service list for A.11-05-017

http://docs.cpuc.ca.gov/published/service_lists/A1105017_79905.htm

CPUC Staff

Loreen McMahon - lm3@cpuc.ca.gov

Karen Miller - knr@cpuc.ca.gov

Kyle DeVine - kyl@cpuc.ca.gov

Karen Clopton - kvc@cpuc.ca.gov

Frank Lindh - frl@cpuc.ca.gov

Ramon Momoh - rmm@cpuc.ca.gov

Kimberly Kim - kk2@cpuc.ca.gov

Hazlyn Fortune - hcf@cpuc.ca.gov

Carmen Best - cbe@cpuc.ca.gov

Ava Tran - atr@cpuc.ca.gov

IOU CHANGES Committee

Linda Fontes - LCF2@pge.com

Rommel Riemedio - RBR8@pge.com

Monica Tell - M1T2@pge.com

Kevin Koch - KRK9@pge.com

Rick Hobbs - RHobbs@semprautilities.com

Eustolia Castillo - ECastillo@semprautilities.com

Eleanor Tamayo - ETamayo@semprautilities.com

Hugh Yao - HYao@semprautilities.com

Rosa Wise - RMWise@semprautilities.com

Sandra Williams - SMWilliams@semprautilities.com

Maria Farries - MFarries@semprautilities.com

Monica Freymiller - MAFreymiller@semprautilities.com

Aida Velasquez - AVelasquez@semprautilities.com

John Fasana - John.Fasana@sce.com

Flor Tolley - Flor.Tolley@sce.com

Gina Sanchez - Gina.Sanchez@sce.com

Angelica Baldwin - Angelica.Baldwin@sce.com

Bobbie CaoBass - Bobbie.Caobass@sce.com

Kari Gardner - KariGardner@sce.com

Linda Yamauchi - Linda.Yamauchi@sce.com

Maricela Carlos - Maricela.Carlos@sce.com

Contractor

Anni Chung - annic@selfhelpelderly.org

Casey McFall - milestonecasey@yahoo.com

1 The four major investor-owned energy utilities in California are: Pacific Gas and Electric Company (PG&E), San Diego Gas and Electric (SDG&E), Southern California Edison (SCE), and Southern California Gas Company (SoCalGas).

2 A.11-05-017, A.11-05-018, A.11-05-019, and A.11-05-020, Applications of the Large Investor Owned Utilities for Approval of 2012-2014 Budget for their respective California Alternate Rates for Energy and Energy Savings Assistance Programs.

3 The U.S. Census reported how many people responded to the census by indicating that they spoke English "less than very well." Both the federal government and California's define this as limited English proficient.

4 According to the U.S. Department of Education study in 2003, California's illiteracy rate is 23%.

5 The U.S. Census reports that California remains the primary destination for immigrants in the United States.

6 The CPUC provides brochures in 18 languages as follows: English, Spanish, Chinese, Tagalog, Vietnamese, Korean, Japanese, Thai, Hmong, Khmer, Portuguese, French, Armenian, Arabic, Farsi, Russian, Burmese and Laotian.

7 D.06-03-013, p.101

8 D.07-07-043, p. 94

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