STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

July 24, 2003 Agenda ID #2513

TO: PARTIES OF RECORD IN RULEMAKING 00-02-004

This is the draft decision of Commissioner Carl Wood. It will be on the Commission's agenda at the regular meeting of September 18, 2003. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the draft decision as provided in Article 19 of the Commission's Rules of Practice and Procedure. These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.7(b), comments and replies to comments are governed by Rules 77.2 through 77.5. In this case, the Assigned Commissioner has determined that opening comments are due not later than August 25, 2003 and shall not exceed 25 pages; replies to comments are due not later than September 4, 2003 and shall not exceed five pages.

Comments and replies to comments must be served separately on the Assigned Commissioner and assigned Administrative Law Judge (ALJ), and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service. In addition, parties are encouraged, but not required, to send an electronic copy of their comments and replies to the assigned ALJ by e-mail to: jcm@cpuc.ca.gov.

/s/ ANGELA K. MINKIN

Angela K. Minkin, Chief

Administrative Law Judge

ANG:tcg

Attachment

COM/CXW/tcg DRAFT Agenda ID #2513

Quasi-legislative

Decision DRAFT DECISION OF COMMISSIONER WOOD (Mailed 7/24/2003)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Own Motion to Establish Consumer Rights and Consumer Protection Rules Applicable to All Telecommunications Utilities.

Rulemaking 00-02-004 (Filed February 3, 2000)

INTERIM DECISION ISSUING GENERAL ORDER ___,

RULES GOVERNING TELECOMMUNICATIONS CONSUMER PROTECTION

TABLE OF CONTENTS

Title Page

INTERIM DECISION ISSUING GENERAL ORDER ___, RULES GOVERNING TELECOMMUNICATIONS CONSUMER PROTECTION 1

Summary 2

Background 3

Part 1: Bill of Rights 7

Part 2: Consumer Protection Rules 15

Relationship to Existing Rules and Tariffs 16

Tariffs 16

CLC Rules 17

Detariffed IEC Rules 18

CMRS Rules, and the CMRS Proceeding 19

General Orders 20

State and Federal Statutes, and FCC Orders 21

Applicability 22

To Carriers 22

To Consumers 22

Other 25

The New Consumer Protection Rules 25

Rule 1: Carrier Disclosure 26

Rule 2: Marketing Practices 37

Rule 3 (and Former Rule 4): Service Initiation and Changes 43

Rule 4: Prepaid Calling Cards and Services 53

Rule 5: Deposits to Establish or Re-establish Service 57

Rule 6: Billing 61

Rule 7: Late-Payment Penalties, Backbilling, and Prorating 68

Rule 8: Tariff Changes, Contract Changes, Notices and Transfers 73

Rule 9 (and Former Rule 10): Service Termination 79

Rule 11: Billing Disputes 85

Rule 12: Privacy 88

Legal Framework 91

Federal Law: 47 USC § 222 and FCC's CPNI Regulations 91

California Law: Public Utilities Code §§ 2891-2894.10; 2895-2897 93

Federal Preemption 94

Provisions of Rule 12 95

Compliance Timeframe 96

TABLE OF CONTENTS

(Continued)

Title Page

Rule 13: Consumer Affairs Branch Requests for Information 97

Rule 14: Employee Identification 98

Rule 15: Emergency 911 Service 100

Part 3: Rules Governing Billing for Non-communications-Related Charges 101

Part 4: Rules Governing Slamming Complaints 104

Background 104

The FCC Slamming Rules 106

The CPUC Slamming Rules 108

For IntraLATA, InterLATA and Interstate Toll Carriers 108

For Local Exchange Carriers 109

The Parties' Comments 110

Detariffing 113

Limitation of Liability 117

Education and Enforcement 120

Education 120

Enforcement 124

Comments on Draft Decision 130

Assignment of Proceeding 130

Findings of Fact 130

Conclusions of Law 133

INTERIM ORDER 136

Appendix A - General Order ___

INTERIM DECISION ISSUING GENERAL ORDER ___,

RULES GOVERNING TELECOMMUNICATIONS CONSUMER PROTECTION

Summary

By this decision the Commission adopts General Order No. ___ (G.O. ___), Rules Governing Telecommunications Consumer Protection, applicable to all Commission-regulated telecommunications utilities. G.O. ___ sets forth: in Part 1, a telecommunications consumers' Bill of Rights, the fundamental consumer rights that all communications service providers must respect; in Part 2, a set of Consumer Protection Rules all carriers must follow to protect those rights; in Part 3, Rules Governing Billing for Non-communications-Related Charges, in response to recent state legislation; and in Part 4, Rules Governing Slamming Complaints, to implement federal rule changes enacted in 2000 by the Federal Communications Commission. Where the new rules supersede current rules, the order so notes. Carriers are required to revise their tariffs where they conflict with the new rules, provided, however, that no tariff changes will be permitted that reduce current consumer protections. The Commission does not at this time implement the rulemaking order's proposal to have the Consumer Protection Rules replace tariffs for competitive telecommunications services.

This proceeding remains open to consider whether the Commission should implement a telecommunications consumer education program, and if so, how it should be structured; whether to curtail the Commission-sanctioned limitation of liability; and whether additional rules requiring that communications directed at consumers and subscribers be in languages other than English are needed.