4. Discussion

In R.10-02-005, the Commission required PG&E, SCE, SDG&E and SCG to implement the following interim practices:

1) All customer service representatives (CSRs) must inform customers who owe 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-months depending on the particulars of a customer's situation and ability to repay the arrearage.³ CSRs may work with customers to develop a shorter re-payment 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.

2) 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.

3) Each utility is authorized to file a Tier 1 advice letter to establish a memorandum account to track any significant additional costs associated with complying with the new practices initiated with this rulemaking, 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.

The focus of the rulemaking is to reduce the number of gas and electric utility service disconnections due to non-payment of bills by improving customer notification and education, including ways to help customers avoid disconnections while working with the utilities to pay arrearages and keep current on bills. The utilities and parties will have an opportunity to comment on the interim practices adopted in R.10-02-005 and their efficacies, as well as sunset provisions if appropriate, while the parties continue to address other solutions to assist customers to pay their utility bills and avoid disconnection of service.

Because of the Commission's initiation of the above rulemaking, TURN's petition is moot and should be denied.

³ Each utility may implement a repayment plan schedule that exceeds 12 months, but we are not currently requiring any utility to extend the schedule beyond 12 months.