2. Background

In its petition, The Utility Reform Network (TURN) asks the Commission to initiate a rulemaking or investigation to consider adopting regulations related to arrearage management and shutoff prevention for residential customers of the major jurisdictional electric and natural gas utilities: Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), San Diego Gas and Electric Company (SDG&E) and Southern California Gas Company (SCG). TURN states that the need for the petition is brought about by the economic crisis in California and impending utility rate increases.

TURN identifies the proposed issues as follows.

· Should the utilities be required to create arrearage management programs and offer forgiveness plans to low income customers in arrears?¹ If so, how should the plans be structured in terms of participant eligibility, program administration, program parameters and cost recovery?

· Should bill payment plans be modified to increase the likelihood customers in arrears will be able to afford the payments and avoid shutoff through consideration of the customer's ability to pay, extending the term of amortization of arrearage amounts, and requiring utilities to offer other assistance programs to customers seeking payment arrangements?

· Should the utilities be prohibited from requiring residential customers to pay reestablishment of credit deposits under certain circumstances, such as when customers agree to participate in certain assistance programs or receive budget counseling?

· Should the ratemaking treatment of utility uncollectibles associated with residential customer accounts be temporarily modified to subject some or all of these costs and revenues to two-way balancing account treatment?

¹ A forgiveness plan would allow the customer to not pay all or part of the amount owed on past bills if specified conditions are met.