12. Ex Parte Communications

Communications with decisionmakers and advisors in this rulemaking are governed by Article 8 of the Rules of Practice and Procedure. Specifically, Rule 8 (a) allows ex parte communications without restriction or reporting requirement in "quasi-legislative" proceedings.

IT IS ORDERED that:

1. In accordance with Rule 6.1 of the Commission's Rules of Practice and Procedure (Rules), the Commission institutes this Order Instituting Rulemaking on its own motion to continue our efforts to reduce the number of gas and electric utility service disconnections due to nonpayment by improving customer notification and education.

2. Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, and Southern California Gas Company are Respondents to this proceeding and are parties to this proceeding pursuant to Rule 1.4(d) of the Commission's Rules of Practice and Procedure.

3. No later than five business days after the mailing of this order, Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company, and Southern California Gas Company must implement the following interim practices:

(a) All customer service representatives (CSRs) must inform any customer that owes an arrearage on a utility bill that puts them at risk for disconnection that the customer has a right to arrange for a bill payment plan extending a minimum of three months in which to repay the arrearage. CSRs may exercise discretion as to extending the three months up to twelve months⁵ depending on the particulars of a customer's situation and ability to repay the arrearage. CSRs may work with customers to develop a shorter repayment plan, as long as the customer is informed of the three-month option. Customers must keep current on their utility bills while repaying the arrearage balance.

(b) Once a customer has established credit as a customer of that utility, the utility must not require that customer to pay additional reestablishment of credit deposits with the utility for either slow-payment/no-payment of bills or following a disconnection.

(c) Each utility is authorized to file a Tier 1 advice letter to establish a memorandum account to track any significant costs associated with complying with the new practices initiated with this proceeding, including any operations and maintenance charges associated with implementation of the practices as well as any uncollectables that are in excess of those projected in the utility's last general rate case. As part of this proceeding, the Commission will consider the process for determining the categories and amounts of costs in the memorandum account that should be considered reasonable for recovery, as well as the appropriate methods for recovery.

4. The Executive Director will cause this Order Instituting Rulemaking to be served on Respondents Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, and Southern California Gas Company, and the service list of Petition 09-06-022. The Executive Director will also cause this Order Instituting Rulemaking to be served on all jurisdictional gas and electric utilities to notify them of the advice letter filing for emergency funds.

5. This Rulemaking is preliminarily determined to be a quasi-legislative proceeding as that term is defined in Rule 1.3 of the Commission's Rules of Practice and Procedure.

6. This proceeding is preliminarily determined not to need a hearing.

7. The expected timetable for this proceeding is as set forth in the body of this order. Opening comments are due March 12, 2010, and reply comments are due April 2, 2010.

8. Pursuant to Rule 6.2 of the Commission's Rules of Practice and Procedure, parties shall include in their Opening Comments any objections they may have regarding the category, need for hearing, issues to be considered, or schedule.

9. Interested persons must follow the directions in this Order Instituting Rulemaking to become a party or to be placed on the official service list as a non-party.

10. The Commission's Process Office will publish the official service list on the Commission's website (www.cpuc.ca.gov) as soon as practicable. Parties may also obtain the service list by contacting the Process Office at (415) 703-2021.

11. Any party that expects to claim intervenor compensation for its participation in this Order Instituting Rulemaking shall file its notice of intent to claim intervenor compensation no later than 30 days from the date of the issuance of this Rulemaking.

12. Respondents Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, and Southern California Gas Company are directed to file monthly reports in this proceeding of specific disconnection data including the number of disconnections experienced by each of respondents. Appendix A contains the additional data to be submitted in each monthly report by each respondent. The first monthly report shall be filed on the same day that the Opening Comments are due, and further reports filed each month thereafter.

13. Respondents Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, and Southern California Gas Company are directed to file Tier 3 advice letters within 30 days of the effective date of this order outlining their proposed program to take advantage of the Emergency Fund.

14. The assigned Commissioner or assigned Administrative Law Judge has the authority to change the due dates in this order.

This order is effective today.

Dated February 4, 2010, at San Francisco, California.

MICHAEL R. PEEVEY

President

DIAN M. GRUENEICH

JOHN A. BOHN

TIMOTHY ALAN SIMON

NANCY E. RYAN

Commissioners

Appendix A
Data to be reported by each Investor Owned Utility on a monthly basis. Each monthly report should include prior months data.
BILLING ASSISTANCE / PAYMENT ARRANGEMENTS
Month	Number of CARE customers requesting bill payment assistance	Number of FERA customers requesting bill payment assistance		Number of non-CARE/FERA customers requesting bill payment assistance		Total number of customers requesting bill payment assistance
Month	Number of CARE customers receiving payment extension of 30 days or less	Number of FERA customers receiving payment extension of 30 days or less		Number of non-CARE/FERA customers receiving payment extension of 30 days or less		Total number of customers receiving payment extension of 30 days or less
Month	Number of CARE customers with 3-month payment arrangement	Number of FERA customers with 3-month payment arrangement		Number of non-CARE/FERA customers with 3-month payment arrangement		Total number of customers with 3-month payment arrangement
Month	Number of CARE customers with 6-month payment arrangement	Number of FERA customers with 6-month payment arrangement		Number of non-CARE/FERA customers with 6-month payment arrangement		Total number of customers with 6-month payment arrangement
Month	Number of CARE customers with 9-month payment arrangement	Number of FERA customers with 9-month payment arrangement		Number of non-CARE/FERA customers with 9-month payment arrangement		Total number of customers with 9-month payment arrangement
Month	Number of CARE customers with 12-month payment arrangement	Number of FERA customers with 12-month payment arrangement		Number of non-CARE/FERA customers with 12-month payment arrangement		Total number of customers with 12-month payment arrangement
LATE OR BROKEN PAYMENT ARRANGEMENTS
Month	Number of CARE customers with late or broken 3-month payment arrangement		Number of FERA customers with late or broken 3-month payment arrangement	Number of non-CARE/FERA customers with late or broken 3-month payment arrangement		Total number of customers with late or broke 3-month payment arrangement
Month	Number of CARE customers with late or broken 6-month payment arrangement		Number of FERA customers with late or broken 6-month payment arrangement	Number of non-CARE/FERA customers with late or broken 6-month payment arrangement		Total number of customers with late or broken 6-month payment arrangement
Month	Number of CARE customers with late or broken 9-month payment arrangement		Number of FERA customers with late or broken 9-month payment arrangement	Number of non-CARE/FERA customers with late or broken 9-month payment arrangement		Total number of customers with late or broken 9-month payment arrangement
Month	Number of CARE customers with late or broken 12-month payment arrangement		Number of FERA customers with late or broken 12-month payment arrangement	Number of non-CARE/FERA customers with late or broken 12-month payment arrangement		Total number of customers with late or broken 12-month payment arrangement
ARREARAGES
Month	Number of CARE customers 30 days in arrears		Number of FERA customers 30 days in arrears	Number of non-CARE/FERA customers 30 days in arrears		Total number of customers 30 days in arrears
Month	Number of CARE customers 90 days in arrears		Number of FERA customers 90 days in arrears	Number of non-CARE/FERA customers 90 days in arrears		Total number of customers 90 days in arrears
Month	Number of CARE customers +90 days in arrears		Number of FERA customers +90 days in arrears	Number of non-CARE/FERA customers +90 days in arrears		Total number of customers+ 90 days in arrears
TERMINATION
Month	Number of CARE customers sent service termination notices		Number of FERA customers sent service termination notices	Number of non-CARE/FERA customers sent service termination notices		Total number of customers sent service termination notices
Month	Number of CARE customers experiencing service disconnection		Number of FERA customers experiencing service disconnection	Number of non-CARE/FERA customers experiencing service disconnection		Total number of customers experiencing service disconnection
Month	Number of disconnected CARE customers reconnected within 24 hours		Number of disconnected FERA customers reconnected within 24 hours	Number of disconnected non-CARE/FERA customers reconnected within 24 hours		Total number of disconnected customers reconnected within 24 hours
Month	Number of disconnected CARE customers reconnected within 48 hours		Number of disconnected FERA customers reconnected within 48 hours	Number of disconnected non-CARE/FERA customers reconnected within 48 hours		Total number of disconnected customers reconnected within 48 hours
Month	Number of disconnected CARE customers reconnected within 72 hours		Number of disconnected FERA customers reconnected within 72 hours	Number of disconnected non-CARE/FERA customers reconnected within 72 hours		Total number of disconnected customers reconnected within 72 hours
Month	Number of CARE customers experiencing service disconnection via remote shutoff		Number of FERA customers experiencing service disconnection via remote shutoff	Number of non-CARE/FERA customers experiencing service disconnection via remote shutoff		Total number of customers experiencing service disconnection via remote shutoff

(END OF APPENDIX A)

⁵ Each utility may implement a repayment plan schedule that exceeds twelve months, but we are not currently requiring any utility to extend the schedule beyond twelve months.