7. Next Steps

As noted above, it is our desire to have the opt-out option implemented without undue delay. Consequently, PG&E is directed to file a Tier 1 Advice Letter to implement the SmartMeter opt-out option and to establish a SmartMeter Opt-Out Tariff within 15 days of the effective date of this decision. This Advice Letter filing shall:

1. Establish procedures for residential customers to select the opt-out option if they do not wish to have a wireless SmartMeter.

2. Establish procedures to inform customers that a SmartMeter opt-out option is available. A customer currently on the delay list shall be informed that the customer will be scheduled to receive a wireless SmartMeter unless the customer elects to exercise the opt-out option.

3. Adopt the following interim fees and charges for residential customers selecting the opt-out option:

For Non-CARE and Non-FERA Customers:

Initial Fee $75.00

Monthly Charge $10.00/month

For CARE and FERA Customers:

Initial Fee $10.00

Monthly Charge $5.00/month

4. Establish new two-way electric and gas Modified SmartMeter Memorandum Accounts to track revenues and costs associated with providing the SmartMeter opt-out option until a final decision on costs and cost allocation issues associated with providing an analog meter opt-out proposal is issued.

As part of implementing the opt-out option, PG&E shall comply with the following guidelines:

1. Residential customers may begin signing up to participate in the opt-out option 20 days after the effective date of this decision. PG&E shall have a dedicated phone number for customers to call and sign up for the opt-out option. This number shall be staffed by customer service representatives trained to explain the opt-out option and fees.

2. Since a residential customer may opt-out for any reason, or no reason, PG&E may not require a customer to explain or state why he or she wishes to participate in the opt-out option as a condition for signing up.⁵⁹

3. A customer may only enroll in the opt-out program once per calendar year at the same residence.

4. Customers may pay the initial fee to participate in the opt-out option over a three month period. If the customer does not pay the fee within this period, the customer will be removed from participating in the opt-out option and returned to the wireless SmartMeter.

5. PG&E shall not charge customers the initial fee nor the monthly charges until the analog meter has been installed at the customer's residence.

6. Customers currently on the delay list shall be individually notified of the opt-out option by certified mail and shall have at least 30 days prior notice that their analog meter will be replaced with a wireless SmartMeter unless they contact PG&E to participate in the opt-out option.

The September 21, 2011 Assigned Commissioner's Ruling (ACR) directed the utilities to allow residential customers who had not yet received a wireless SmartMeter to retain their analog meter and be placed on a delay list while the Commission considered PG&E's opt-out proposal. Since we are now modifying the SmartMeter Program to include an opt-out option, the ACR is no longer in effect for PG&E.

This decision determines that a second phase in this proceeding is necessary to consider cost and cost allocation issues associated with providing the analog meter opt-out option, as well as issues associated with offering a community opt-out option. We anticipate that a prehearing conference to discuss the scope and schedule of this second phase will be scheduled within 45 days of the date this decision is issued. The assigned Commissioner will issue an amended scoping memo to reflect the new issues and schedule.

⁵⁹ However, PG&E may ask this question if a response is optional.