6. Assignment of Proceeding
Mike Florio is the assigned Commissioner and Janice L. Grau is the assigned ALJ in this proceeding.
1. A workshop was held on March 3, 2010 on low-income data sharing programs. PG&E, SCE, and SoCalGas representatives participated in a panel discussion on their low-income data sharing programs. A discussion on the applicability of these programs and proposed guidelines on data sharing among energy and water utilities followed the panel discussion.
2. The parties support the sharing of qualifying low-income customer information among regulated water and energy utilities with overlapping service territories, although PacifiCorp and Southwest preferred a voluntary approach.
3. In 2010, over 265,000 new participants (just under 20% of new enrollments) were automatically enrolled in CARE, at a very low or no cost, as a result of data sharing.
4. DWA's 2007 assessment determined that the low-income water utility penetration rates were 15.2% in 2006 and 16.1% in 2007.
5. CWA noted DWA's 2007 assessment could be a broad approximation, which could be made more precise by accurate exclusions for excluded MM low-income water users.
6. MM households are precluded from participating in most water low-income assistance programs, because residents are not billed directly by the water utility for service.
7. The energy utilities have implemented data sharing programs with municipal utilities, including irrigation and water districts.
8. The parties generally support sharing low-income customer information among regulated water and municipal energy utilities.
9. Class C and D water utilities are not required to institute low-income assistance programs.
10. The parties generally agreed that automatic enrollment of eligible energy low-income customers who are matched can and should be performed, although PacifiCorp would prefer to conduct its own eligibility determinations.
11. The energy utilities at the workshop and the parties in comments noted automatic enrollment decreases costs by eliminating duplicative efforts and streamlining enrollment.
12. The parties generally supported an opt-out letter for customers who decline to participate in the water utility's low-income assistance program.
13. The Commission approved energy utilities' proposals to implement categorical eligibility procedures in D.06-12-038.
14. The Commission approved qualifying government means-tested programs for CARE benefits in D.08-11-031.
15. Water utilities currently use proof of participation in CARE as an option to qualify a customer for participation in low-income water programs.
16. Water and energy utilities have the same household definitions.
17. The energy utilities obtain customer authorization on data sharing at the time of application for assistance.
18. Not all of the water utilities seek permission to share customer information, although Park, Apple Valley Ranchos Water Company, CalWater and California American do obtain authorization.
19. The energy utilities entered into memorandums of understanding and nondisclosure agreements to implement data sharing and ensure the confidentiality of customer information.
20. The utilities stated they possess the necessary technology for electronic data sharing.
21. The parties supported the proposed guidelines circulated in the April 1, 2010 ruling and scoping memo with modifications.
22. Proposed modifications to the proposed guidelines include voluntary participation, the definition of customer confidential data, consent to share information, notification to customers of a breach of confidential data, customer authorization, the type of match required for automatic enrollment, and coordinated outreach.
23. The energy utilities actively coordinate outreach activities with each other and other agencies to increase participation levels and leverage costs. Some of these activities include coordinated marketing efforts and targeted recruitment, promoting other low-income programs and referring low-income customers to assistance programs offered by other utilities and agencies in the appropriate service territories.
24. The parties generally support coordinated outreach to low-income customers.
25. Income eligibility for CARE is based on a percentage of the federal poverty level, and the current requirement for energy utilities is 200% of the federal poverty level.
26. Most water utilities use 200% of the federal poverty level as an income guideline but GSWC Regions II and III have income guidelines of 175% of the federal poverty level.
27. The CARE program uses self-certification to establish eligibility as a means to remove a potential barrier to participation in the program.
28. Most water utilities' low-income assistance programs endorse self-certification/eligibility declarations, but San Jose requires verification for water customers without an energy bill in their name.
29. The water utilities anticipate incurring one-time and ongoing costs to implement the data sharing program.
30. The water utilities with low-income assistance programs have current low-income assistance program memorandum or balancing accounts.
31. Most low-income assistance program memorandum or balancing accounts were created to record low-income program discounts, surcharges, implementation and incremental program costs. A few accounts only include program discount costs and surcharges.
32. The energy utilities anticipate incurring one-time implementation costs to establish data sharing.
33. The low-income data sharing program will make additional data available on low-income households and will increase penetration rates.
1. The Guidelines for Sharing Low-Income Customer Information, attached to this decision as Attachment 1, are a reasonable response to the record and should be adopted for Class A and B water utilities with low-income assistance programs.
2. It is reasonable to apply the categorical eligibility requirements, adopted for the energy utilities, to water utilities' low-income assistance programs.
3. Prior to implementing data sharing and within six months of the issuance of this decision, it is reasonable for water utilities to file a data sharing plan in an information-only filing.
4. It is reasonable for a water utility to implement data sharing within 60 days of the filing of its data sharing plan.
5. It is reasonable to permit water utilities to track in memorandum accounts the one-time and ongoing expenses, not already recovered in rates, for implementing low-income information sharing.
6. It is reasonable to permit energy utilities to include the information technology and administrative costs associated with data sharing in the low-income budget contained in the program applications for 2012-2014.
7. The Information-Only Low-Income Data Report, attached to this decision as Attachment 3, is a reasonable response to the record and should be adopted.
8. The Information-Only Low-Income Data Reports should be filed as an information-only filing concurrent with the Annual Reports.
9. The water utilities with low-income assistance programs should file a Tier 1 advice letter annually to update the CARE income guidelines 30 days after the CARE guidelines are published.
10. This decision should be effective today to provide guidance on the sharing of low-income customer information.
IT IS ORDERED that:
1. The Guidelines for Sharing Low-Income Customer Information, attached to this decision as Attachment 1, are hereby adopted.
2. All Class A and B water utilities with low-income assistance programs (Class A water utilities: Apple Valley Ranchos Water Company, California-American Water Company, California Water Service Company, Golden State Water Company, Great Oaks Water Company, Park Water Company, San Gabriel Valley Water Company, San Jose Water Company, Suburban Water Systems, and Valencia Water Company; Class B water utilities: Alisal Water Corporation (dba Alco Water Service), Del Oro Water Company, East Pasadena Water Company and Fruitridge Vista Water Company) are subject to the guidelines adopted in Ordering Paragraph 1. Class C and D water utilities with low-income assistance programs are encouraged to follow the guidelines.
3. Categorical eligibility, i.e., documentation of participation in a government means-tested program, shall apply to low-income water assistance program eligibility. The categorical eligibility requirements adopted in Decision 06-12-038 and Decision 08-11-031 for the energy utilities shall apply to the water utilities.
4. The Class A and B water utilities identified in Ordering Paragraph 2 shall each file an information-only filing with a data sharing plan and service on the service list to this proceeding, containing the following information, within six months of the issuance of this decision:
a. Copy of Memorandum of Understanding/Non-disclosure Agreement for each energy utility and each municipal energy utility that will participate
b. Description of proposed data-sharing program's components, including:
i. Measures to ensure security and confidentiality of customer information.
ii. Data transfer file format.
iii. Description of data transfer method, process and system requirements.
iv. Number of anticipated annual data exchanges.
v. Procedures for matching customer information.
vi. Automatic enrollment procedures, including opt-out procedures.
vii. Other technical and procedural requirements pertinent to the data-sharing program operations;
c. Description of anticipated programming logistics including a program implementation timeline;
d. Description of any additional resources and/or system requirements necessary for implementation of the data sharing program, with detailed cost information broken down by type of expense, including labor hours performed by utility staff or contract labor, for 1) estimated additional one-time program implementation costs, and 2) estimated ongoing operational costs not already included in rates. Specify which costs are already included in rates, if any;
e. Describe the current accounting procedure used to track low-income program costs and discounts, their corresponding ratemaking treatment, the financial mechanism in place for recovery of those costs and discounts, and detailed categories of program costs/expenses. Specify what category of costs, if any, are included in rates and what are considered "incremental" costs;
f. List and eligibility description of all assistance programs to be used for "categorical eligibility," as coordinated with the corresponding energy utility or municipal energy utility;
g. Description of existing or proposed re-certification procedures;
h. Copies of low-income assistance program application and re-certification form (if different from application) consistent with re-certification, self-certification, and customer information sharing consent requirements adopted in this decision and with key information in large print and provisions for complete copies in alternate formats upon customer request;
i. Copy of proposed opt-out letter;
j. Identification of languages to be used in low-income sharing documents by district;
k. Description of other possible low-income collaboration efforts with the energy utilities and municipal energy utilities;
l. The number of low-income program participants broken down by month for the last three years;
m. The number of residential customers in the service areas where a low-income program is offered;
n. Class Bs with districts with fewer than 2,000 service connections served by energy utilities sharing fewer than 2,000 of the water utilities' total customers; and
o. Description of other data sharing opportunities with municipal utilities and local agencies and other possible collaborative outreach with the energy utilities.
5. Each Class A and B water utility with a data sharing plan filed as ordered in Ordering Paragraph 4 shall commence data sharing within 60 days after filing the plan.
6. Class A and B water utilities with existing memorandum accounts that include low-income assistance program costs may track one-time and ongoing data sharing costs not already included in rates in those accounts and shall identify those costs separately from other program costs.
7. Class A and B water utilities without memorandum accounts that include low-income assistance program costs may file a Tier 1 advice letter within 60 days of the issuance of this decision to establish a memorandum account to track one-time and ongoing data sharing costs not already included in rates. Once these memorandum accounts are established, the Class A water utilities may seek recovery of the expenses booked to their memorandum accounts in their next general rate case or by filing Tier 3 advice letters.
8. Authorization to track costs in existing memorandum accounts and to establish memorandum accounts does not guarantee recovery of expenses booked to these accounts that have been otherwise authorized in rates or are imprudent or unreasonable.
9. Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas and Electric Company, Southern California Gas Company, and Southwest Gas Corporation may include information technology and administrative costs associated with data sharing with the water utilities, not already included in rates, in the low-income budget contained in the low-income program applications for 2012-2014.
10. The Information-Only Low-Income Data Report, attached to this decision as Attachment 3, is adopted. Apple Valley Ranchos Water Company, California-American Water Company, California Water Service Company, Golden State Water Company, Great Oaks Water Company, Park Water Company, San Gabriel Valley Water Company, San Jose Water Company, Suburban Water Systems, and Valencia Water Company shall file this report as an information-only filing concurrent with the Annual Reports.
11. Each water utility with a low-income assistance program shall file a Tier 1 advice letter to update California Alternate Rates for Energy guidelines within 30 days after the Commission's Energy Division sends its notice to establish the California Alternate Rates for Energy income guidelines.
12. The Energy Division shall serve a copy of the annual California Alternate Rates for Energy income guideline notice on Apple Valley Ranchos Water Company, California-American Water Company, California Water Service Company, Golden State Water Company, Great Oaks Water Company, Park Water Company, San Gabriel Valley Water Company, San Jose Water Company, Suburban Water Systems, Valencia Water Company, Alisal Water Corporation (dba Alco Water Service), Del Oro Water Company, East Pasadena Water Company and Fruitridge Vista Water Company.
13. Each Class A water utility shall include in its general rate case application a low-income assistance program participation estimate, as developed in the informal workshop to be scheduled by the Division of Water and Audits.
14. Rulemaking 09-12-017 is closed.
This order is effective today.
Dated May 5, 2011, at San Francisco, California.
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
MARK FERRON
Commissioners
Attachments 1, 2, and 3
GUIDELINES FOR SHARING LOW-INCOME
CUSTOMER INFORMATION
These guidelines apply to the sharing of customer information among regulated water and energy utilities.
1. Class A and B regulated water utilities with low-income assistance programs shall develop a data sharing program and negotiate associated agreement(s) with regulated energy utilities in which the utilities share Customer Data of those customers enrolled in low-income assistance programs. Class C and D water utilities are encouraged to develop such programs and the associated agreement(s).
2. Regulated water utilities are encouraged to and may develop a program and associated agreement(s) with municipal energy utilities in which the utilities share Customer Data of those customers enrolled in low-income assistance programs.
3. All programs and agreements shall comply with State and Federal laws, as well as Commission codes, decisions, orders, and rules.
4. Customer Data is defined as the name, address, re-certification and random post-enrollment status, and other pertinent information to the provision of low-income assistance.
5. Confidential Customer Data consists of customer names, addresses, and other customer-specific information.
6. All utility employees who access the Confidential Customer Data shall be instructed as to the use and handling of Confidential Customer Data and advised that the information is confidential and must not be used other than for purposes directly related to the enrollment of the customers in and continued provision of the low income assistance program.
7. Utilities must restrict disclosure of the Confidential Customer Data to utility employees with an authorized "need to know" and not disclose it to any other person or entity without prior written consent.
8. All reasonable measures shall be taken to protect Confidential Customer Data. Utilities must protect Confidential Customer Data through appropriate security safeguards against risks of loss, unauthorized access or use, destruction, modification, or unintended or inappropriate disclosure.
9. In the event of any unauthorized disclosure of Confidential Customer Data, the utility responsible for such disclosure must immediately notify in writing the other utility with which it has entered into a data sharing agreement.
10. Each utility must develop a secure data transfer system that protects the privacy of the data transferred.
11. Regulated water utilities must obtain customer authorization from all customers, both current and new, to share Confidential Customer Data by including a declaration statement on both 1) the low income assistance program application; and 2) the re-certification and random post-enrollment verification forms; that reads as follows:
"I understand that [insert regulated water utility name] can share my information with other utilities or their agents to enroll me in their assistance programs."
12. Regulated water utilities must develop a process to match data received from regulated energy utilities and municipal utilities to effectively ascertain customer eligibility for enrollment in a low-income assistance program.
a. A customer whose surname and address is successfully matched and is identified as eligible, consistent with Commission policy, shall be automatically enrolled in the program provided that the customer is served with an "opt-out" letter 30 days prior to enrollment, providing the customer with the opportunity to opt-out from receiving the discount automatically.
b. A customer whose eligibility, consistent with Commission policy, cannot be reasonably ascertained without further information on the customer, shall be considered a "Potential Participant" and must be provided with outreach material identifying said customer as potentially eligible for low-income assistance and providing the opportunity to enroll via the traditional application method.
13. Regulated water utilities need not request re-certification and/or random post-enrollment verification directly from the customer if said customer is also enrolled in CARE and the re-certification and/or random post-enrollment verification requirement has been successfully established by the energy utility for its CARE program.
14. Regulated water utilities shall negotiate agreements with regulated energy utilities to share low-income customer re-certification and random post-enrollment verification information.
(END OF ATTACHMENT 1)
Table: 2009 Participation Rate by utility and total weighted average, per Method outlined in "Assessment of Water Utility Low-Income Assistance Programs," October 2007.
Company |
Participants in 2009 1 |
Estimated Eligible in 20092 |
2009 Penetration Rate2 |
Apple Valley Ranchos |
1,311 |
6,060 |
21.6% |
California-American |
2,988 |
85,006 |
3.5% |
California Water Service |
40,951 |
123,148 |
30.3% |
Golden State |
24,939 |
79,711 |
31.3% |
Great Oaks |
236 |
4,154 |
5.7% |
Park |
1,940 |
8,584 |
22.6% |
San Gabriel Valley |
17,604 |
28,169 |
61.2% |
San Jose |
6,456 |
42,221 |
15.3% |
Suburban |
3,926 |
22,417 |
17.5% |
Valencia |
319 |
8,903 |
3.6% |
Class A Weighted Average |
100,670 |
421,129 |
23.9% |
1 Per Data Requests and Annual Reports.
2 Using 2009 US Census American Community Survey data following the methodology described under the Section for "Estimating Low-Income Eligibility in California" and "Estimating Participation Rates" in the "Assessment of Water Utility Low-Income Assistance Programs", October 2007. The estimates also exclude multi-family housing units.
(END OF ATTACHMENT 2)
INFORMATION-ONLY FILING
INFORMATION-ONLY LOW-INCOME DATA REPORT· For each data file received:
o Number of CARE customer records received.
o Number of CARE customers not matched to water utility records.
o Number of CARE customers successfully matched.
· Enrollment Results:
o Number of CARE customers automatically enrolled.
o Number of customers re-certified for assistance.
o Number of CARE customers ineligible for enrollment due to metering conditions (as compared with water utility records).
o Number of customers opting-out.
o Number of potential customers identified and served with outreach material.
· Program Costs:
o Itemized annual expenses specifically incurred for operating and administering the data sharing program, including:
_ Personnel with number of hours allocated to particular data sharing tasks.
_ Special equipment.
_ Translation services.
_ Printing, mailing and other costs.
Specify if any costs are included in rates.
o Summary of annual low-income program discounts, surcharges, and itemized low-income program costs.
Specify which costs are included in rates, if any.
(END OF ATTACHMENT 3)
