7. Assignment of Proceeding
Michel Peter Florio is the assigned Commissioner and Maryam Ebke is the assigned ALJ in this proceeding.
1. While there has been some success in achieving the objective of reducing the number of residential disconnections due to nonpayment, tens of thousands of California utility customers experience the hardship of disconnection every month.
2. Low income customers enrolled in the CARE rate program continue to experience rates of disconnection that are more than twice the disconnection rates for non-CARE customers.
3. SCE's experience is that having its CSRs perform online CARE enrollments during calls increased enrollment compared to the old mailing process by 50% when expanded to all SCE representatives in 2010 and improved the overall customer experience.
4. SCE's processing cost for phone enrollment is only $0.89 per enrollment greater than the $2.77 cost for mail applications.
5. PG&E's estimated cost of live CSR enrollments would have been $455,909 in 2010.
6. There may be a subset of potential CARE enrollees who are not able to interface PG&E's automated enrollment system successfully.
7. PG&E and SCE offer comprehensive language assistance options.
8. It has not been shown that ordering the utilities to translate all printed forms into the languages specified in SB 120 would be cost-effective.
9. It is reasonable to take advantage of the significant cost savings that modern metering technology can provide while providing enhanced protection to consumers whose health and safety might be jeopardized by a remote disconnection program.
10. Many households include disabled individuals who are not enrolled in programs such as medical baseline because they are unaware of them or because their disability does not cause them to use above-average levels of energy.
11. Remote switching technology enables substantial cost savings for performing disconnections and reconnections but the costs of these services are not reduced to zero.
12. In March 2011 unemployment exceeded the statewide average of 12.3% in 35 of 40 counties where PG&E provides service, and it exceeded 20% in six of those counties.
13. In March 2011, unpaid bills of two months or older totaled $55 million among low-income customers, double what was owed a year earlier.
14. According to economic forecasts, it will take until 2015 - 2020 for unemployment to drop to 8% in California.
15. Although customer choice of billing date could be beneficial for some customers at risk for disconnection, it has not been shown to be cost-effective for PG&E or SCE.
16. PG&E and SCE offer considerable flexibility in bill payment and do not impose late fees (for CARE customers in SCE's case).
17. Annual CARE disconnection benchmark rates of 5% for PG&E and 6% for SCE would essentially require PG&E to maintain the progress it made in 2010 to reduce CARE customer disconnections encourage SCE to make changes in its treatment of CARE customers regarding disconnections.
18. A moratorium or a cap on the number of disconnections could potentially lead to an excessive increase in write-offs of bad debt, thereby imposing unreasonably high costs on all ratepayers.
19. To the extent that the utilities are able to manage their operations to keep CARE customer disconnections at or below a defined benchmark, there may not be a need for further regulatory oversight such as mandatory disconnection practices; however to the extent that CARE disconnections exceed the benchmark, that would indicate a need for further review or oversight to address the disconnection problem.
20. The utilities have safeguards in place to help prevent inappropriate crediting of payments.
21. Customer fraud and continued delivery of bad checks impose significant costs on utilities that are passed on to all customers.
22. Bankruptcy is a legal process to resolve debt, whereas perpetrators of fraud and bad check writers are not engaging in legitimate activities.
1. Because tens of thousands of California's experience disconnection each month, the disconnection problem continues to warrant our attention and concern.
2. Because customers enrolled in the CARE rate program experience disconnection more than twice as often non-CARE customers, it is reasonable to design remedial measures that target the CARE disconnection rate.
3. PG&E should have its CSRs offer the option of live CARE enrollment in addition to the automated, paper, and online enrollment options it offers.
4. To accommodate the needs of vision- and hearing-impaired customers, the following measures should be adopted:
(a) Any written communication concerning the risk of service disconnection must provide key information, including the fact that service is at risk and a way to follow up for additional information, in large print such as 14 point sans serif font.
(b) For customers who have previously been identified as disabled and who have identified a preferred form of communication, all information concerning the risk of disconnection should be provided in the preferred format.
(c) For households identified as using non-standard forms of telecommunication, outgoing calls regarding the risk of disconnection should be made by a live representative.
5. PG&E and SCE should continue to provide on-site visits by a utility representative to protect vulnerable or sensitive customers, which should include not only medical baseline and life support customers but also customers who certify that they have a serious illness or condition that could become life threatening if service is disconnected.
6. Because difficult economic conditions including high unemployment are continuing, and at-risk customers continue to face the hardship of possible disconnection, the interim disconnection practices ordered in the OIR, in D.10-07-048, and in this decision should remain in effect until December 31, 2013, provided, however, that in the event that the utility's disconnection rate does not exceed the benchmark adopted by this decision, the practices may be terminated earlier.
7. If the utility's annual CARE customer disconnection rate for 2012 exceeds the benchmark rate of 5% for PG&E and 6% for SCE, the disconnection practice requirements adopted in this decision should continue in effect for that utility through 2013; however, if the utility does not exceed its CARE disconnection benchmark for 2012, it should be allowed to file a Tier 2 advice letter requesting authority to discontinue the practices prior to December 31, 2013. If filed, the advice letter should become effective no earlier than 30 days after the date filed pursuant to General Order 96-B.
8. If the utility exceeds the benchmark identified in Conclusion of Law 7 for 2012 but, for any month during 2013, the utility's CARE disconnection rate for the previous 12 consecutive months is less than the benchmark, the utility may file a Tier 2 advice letter requesting authority to discontinue the practices prior to December 31, 2013. If filed, the advice letter should become effective no earlier than 30 days after the date filed pursuant to General Order 96-B.
9. Exceptions to our otherwise applicable deposit waivers should be allowed for customers who have written three or more bad checks in a year and those involved in fraud
10. Disconnection reporting requirements adopted in Ordering Paragraph 12 of the Order Instituting Rulemaking and Ordering Paragraph 14 of D.10-07-048 should be continued until December 2013.
11. It is appropriate to close R.10-02-005.
IT IS ORDERED that:
1. Pacific Gas and Electric Company and Southern California Edison Company shall continue to implement the customer service disconnection practice adopted in the Order Instituting Rulemaking 10-02-005 which provides that all customer service representatives (CSRs) must inform any customer that owes an arrearage on a utility bill that puts the customer at risk for disconnection that the customer has a right to arrange for a bill payment plan extending for a minimum of three months the period in which to repay the arrearage. CSRs may exercise discretion as to extending the period in which to pay the arrearage from three months up to twelve months 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.
2. Pacific Gas and Electric Company (PG&E) and Southern California Edison Company (SCE) shall continue to implement, and for new practices implement within 45 days of the date of this order, the following practices:
a. Once a California Alternate Rates for Energy or Family Energy Rate Assistance 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.
b. No customer who is on medical baseline or life support or who certify that he or she has a serious illness or condition that could become life threatening if service is disconnected shall be disconnected without an in-person visit from a utility representative.
c. The utility shall not charge reestablishment of credit deposits to customers for late payment of bills.
d. PG&E shall continue to provide to their new customers the option of using its Automatic Payment Service in lieu of a cash deposit for credit. This payment service should clearly explain to customers the implications of participation.
e. SCE shall provide to all their new customers and to those customers requesting reestablishment of credit after being disconnected, the option of using its DirectPay program in lieu of a cash deposit for credit. This program should clearly explain to customers the implications of participation.
f. The utility shall provide that reestablishment of credit deposits for customers is based on twice the average monthly bill.
g. The utility shall implement the uniform notice of disconnection procedures set forth in the October 1, 2010 joint filing of PG&E, SCE, San Diego Gas & Electric Company and Southern California Gas Company.
h. The utility shall provide a field person who can collect on a bill during an in-person visit prior to disconnection for medical baseline and life support customers and customers who certify that they have a serious illness or condition that could become life threatening if service is disconnected. This order does not require the field person to accept cash payments.
i. The utilities shall ensure that their customer service representatives (CSRs) offer customers the option of enrollment in the California Alternate Rates for Energy rate program by telephone discussion with a CSR.
j. For any written communication to customers concerning the risk of service disconnection, other than billing statements, the utility shall provide key information, including the fact that service is at risk and a way to follow up for additional information, in large print such as 14 point sans serif font.
k. For customers who have previously been identified as disabled and who have identified a preferred form of communication, the utility shall provide all information concerning the risk of disconnection in the customer's preferred format.
l. For households identified as using non-standard forms of telecommunication, the utility shall ensure that outgoing calls regarding the risk of disconnection are made by a live representative.
m. The utilities are directed to continue to file monthly reports in this proceeding of data as shown on Appendix A of Decision 10-07-048. The monthly reports shall be filed by the 25th day of each month and continuing until December 2013. Beginning in 2014 and continuing through 2018, the utilities shall file semiannual reports of the data.
3. Where the customer service disconnection practices ordered in this decision would require the utility to waive otherwise applicable customer deposits, the utility may nevertheless require deposits from customers who have written three or more bad checks in a year and from those involved in fraud.
4. The customer service disconnection practices ordered in this decision, other than those set forth in Ordering Paragraphs 2.b, 2.i, and 2.m, shall remain in effect until December 31, 2013, provided, however, that in the event that a utility's California Alternate Rates for Energy customer disconnection rate for 2012 is less than a benchmark of 5% for Pacific Gas and Electric Company (PG&E) and 6% for Southern California Edison Company (SCE), the utility may file a Tier 2 advice letter after January 1, 2013 requesting authority to discontinue the required practices prior to December 31, 2013. If filed, the Tier 2 advice letter shall become effective no earlier than 30 days after the date filed in accordance with General Order 96-B. In the advice letter filings, PG&E and SCE are directed to include an addendum that comprehensively reports (on a month to month basis) the Investor-owned Utilities' internal criteria and processes for determining how customers are identified as eligible for disconnection and the elapsed time before they are disconnected.21 The practices set forth in Ordering Paragraphs 2.b., and 2.i shall remain in effect until further order of the Commission.
5. If the utility exceeds the benchmark for 2012 identified in Ordering Paragraph 4 but, for any month during 2013, the utility's California Alternate Rates for Energy disconnection rate for the previous 12 consecutive months is less than benchmark, the utility may file a Tier 2 advice letter requesting authority to discontinue the required customer service disconnection practices ordered in this decision prior to December 31, 2013. If filed, the Tier 2 advice letter shall become effective no earlier than 30 days after the date filed in accordance with General Order 96-B. In the advice letter filings, Pacific Gas and Electric Company and Southern California Edison Company are directed to include an addendum that comprehensively reports (on a month to month basis) the Investor-owned Utilities' internal criteria and processes for determining how customers are identified as eligible for disconnection and the elapsed time before they are disconnected.22
6. Within 60 days of the effective date of this decision, Pacific Gas and Electric Company and Southern California Edison Company shall file compliance reports in this docket explaining (a) how they will notify customers with a serious illness or condition that could become life-threatening if service is disconnected, and who face possible disconnection of service, of their option to provide certification to that effect; (b) how they will implement the directive to communicate with customers regarding their option to align their bill payment date with their income cycle notwithstanding the date printed on the bill; and (c) the results of the language option review directed in Section 3.4 above.
7. Rulemaking 10-02-005 is closed.
This order is effective today.
Dated March 22, 2012, at San Francisco, California.
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
MARK J. FERRON
Commissioners
21 Since it is unclear when, during 2013, the Advice Letter will be submitted, the IOUs will provide year-to-date data up to last full month before the filing. For example, if the Advice Letter is filed June 10, 2013, the IOUs should provide data from the beginning of this initiative until May 31, 2013.
22 Since it is unclear when, during 2013, the Advice Letter will be submitted, the IOUs will provide year-to-date data up to last full month before the filing. For example, if the Advice Letter is filed June 10, 2013, the IOUs should provide data from the beginning of this initiative until May 31, 2013.
