23. CARE Recertification

The IOUs regularly recertify customers' income eligibility for CARE by contacting them and requiring them to prove that they continue to be eligible. Each IOU does this in various ways, as we discuss below.

DRA raises a concern that PG&E's recertification efforts have caused over 36,000 customers to drop out of the CARE program. DRA expresses concern that otherwise eligible customers have been dropped from the program for failing to respond to notices, and asks the Commission to step in and preclude PG&E's practices.

We have authorized the IOUs on several occasions to recertify customers receiving CARE, and we support such efforts. As we note in the beginning of this decision, the CARE subsidy approaches $2.7 billion, and it is the joint responsibility of this Commission and the IOUs to ensure that these large subsidies only benefit those eligible to receive them. Thus, we disagree with DRA that IOUs have no authority to recertify CARE customers' income eligibility on a periodic basis. We continue to allow IOUs to engage in recertification efforts.

By the same token, recertification efforts must be structured to make sure eligible customers have adequate opportunity to remain in the CARE program. To this end, we have taken, and will take, the following steps:

First, we have examined informal complaints filed with our Consumer Affairs Branch (CAB) for 2007-08. We have found five complaints that can be construed as related to recertification, a minute fraction (0.9%). By contrast, we had more than 5,000 complaints about the recertification of low income customers for the LifeLine telecommunications subsidy program after the Federal Communications Commission ordered states to implement income verification. Thus, we are not aware of a significant problem with current IOU recertification efforts, and CAB has not determined that the number of complaints it has received to date warrants special investigation or other action on the issue as a whole.

Second, however, we will require the IOUs to begin reporting, with their monthly and annual reports, the number of customer complaints they receive (formal or informal, however and wherever received) about their CARE recertification efforts, and the nature of the complaints. The IOUs shall immediately begin tracking this data so they are ready to submit their first report by December 31, 2008. We otherwise allow the IOUs their requested changes to their recertification process.¹⁶⁵

Third, we direct CAB to track CARE complaints more specifically. Currently, we place all calls about CARE in the same category, regardless of their nature. We direct CAB to segregate complaints about recertification so we have better data. With this decision, we order CAB to begin this tracking immediately. Energy Division shall consult with CAB periodically and notify us if the volume of complaints increases significantly; if it does, we will determine whether further action is warranted.

¹⁶⁵ PG&E seeks leave to change the certification period for CARE sub-metered customers from one year to two years, which we approve.