COM/MF1/avs Date of Issuance 3/29/2012

Decision 12-03-054 March 22, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Own Motion to Address the Issue of Customers' Electric and Natural Gas Service Disconnection.

Rulemaking 10-02-005
(Filed February 4, 2010)

DECISION ON PHASE II ISSUES: ADOPTION OF PRACTICES TO REDUCE THE NUMBER OF GAS AND ELECTRIC SERVICE DISCONNECTIONS

TABLE OF CONTENTS

Title Page

DECISION ON PHASE II ISSUES: ADOPTION OF PRACTICES TO REDUCE THE NUMBER OF GAS AND ELECTRIC SERVICE DISCONNECTIONS 2 2

1. Summary 2 2

2. Background and Procedural History 4 4

2.1. Order Instituting Rulemaking (OIR) 4 4

2.2. Decision (D.) 10-07-048 6 6

2.3. Settlement Agreement 8 8

2.4. Phase II Issues 8 8

2.5. Development of the Phase II Record 12 12

3. Discussion 13 13

3.1. Introduction 13 13

3.2. CARE and Non-CARE Disconnection Rates 15 15

3.3. The Customer Service Representative (CSR) Role 18 18

3.4. Language Options 22 22

3.5. Uniform Protocol for Remote Disconnections 26 26

3.6. Sunset Date for Interim Practices 31 31

3.7. Customer Choice of Billing Date 33 33

3.8. Compliance Costs 36 36

3.9. Benchmarking and Alternative 37 37

3.10. Uniform Billing and Accounting for Arrearages 42 42

3.11. Disconnection Notices 43 43

3.12. Waiver of Deposit Exceptions 44 44

3.13. Reporting Requirements 46 46

3.14. Balanced/Level Payment Plans 46 46

4. Change of Party Settlement 47 47

5. Disposition of Proceeding 48 48

6. Comments on Proposed Decision 48 48

7. Assignment of Proceeding 50 50

Findings of Fact 50 50

Conclusions of Law 52 52

ORDER 54 54

DECISION ON PHASE II ISSUES: ADOPTION OF PRACTICES TO REDUCE THE NUMBER OF GAS AND ELECTRIC SERVICE DISCONNECTIONS

1. Summary

Concerned about the current economic crisis in California and an increase in residential utility service disconnections, the Commission opened this rulemaking to reduce the number of gas and electric service disconnections due to nonpayment. Decision 10-07-048, issued in this proceeding on July 30, 2010, adopted several interim measures to achieve that objective. In this decision the Commission continues in effect certain of the interim measures and takes additional steps to reduce the number of disconnections in the service territories of Pacific Gas and Electric Company (PG&E) and Southern California Edison Company (SCE). PG&E and SCE are directed to: