VI. Conclusion
It is hard to over-emphasize the enthusiasm and creativity all of the participants in this expedited process have brought to the discussion. Although this order addresses all of the major proposals, it does not reflect the full extent of the conversation that has occurred between consumer and community groups and the utilities. We want this constructive conversation to continue and will do what we can help make it happen. This order also does not repeat or record each of the things the utilities have pledged to do that do not require a Commission order. For instance, many of the utilities plan to increase shareholder contributions to bill assistance programs. The utilities all understand the urgent need to help their customers through this challenging period and are prepared to act accordingly.
The result is that we are able to take many steps, today, to increase protections for low income customers. These include an expansion of CARE rates, a suspension of many winter disconnects and reconnection charges, the enlargement and acceleration of Low-Income Energy Efficiency program offerings and activities, and other steps. We will continue to monitor rates and service during the coming winter period, and will consider taking additional actions, as needed.
1. Expanding CARE eligibility would reach more individuals and families in need.
2. Although the impact on other customers of increasing income eligibility may be measurable, it is small.
3. The FERA program, provides modest rate benefits to electricity customers that do not qualify for CARE, but have income that does not exceed 250% of Federal poverty levels.
4. FERA provides no benefits for natural gas customers.
5. Many qualified CARE customers fail to complete the required recertification process, for one reason or another, and are normally dropped from the program.
6. Since we will allow all households with income at or below 200% of the poverty guidelines to participate in CARE, we have an opportunity to create consistent eligibility criteria for the two low-income programs.
7. As a gas provider, Southwest coordinates its weatherization with the utilities that provide electric service to its customers.
8. The use of census data to speed up the identification of program participants and simplify the enrollment process holds the hope of getting more homes weatherized more quickly.
9. It appears that forced-air furnace replacement may not only appear favorable in many instances when compared to program-wide benefits, it may often be cost-beneficial in the strictest sense.
10. Duct improvement may be an important aspect of ensuring the efficiency of new or existing furnaces.
11. It is logical to expect that it will be more efficient to replace a leaky or otherwise broken water heater than to replace an old water heater that is still properly function, since leaks or other malfunctions will make an old heater even more inefficient.
12. The utilities have not explained why levelized payment service could not be available to master meter customers
1. The utilities should expand CARE income eligibility to include all customers with income at or below 200% of Federal poverty guidelines.
2. The utilities should offer CARE discounts to qualified customers in submetered, group living, and agricultural housing.
3. FERA income eligibility should be adjusted to accommodate changes in CARE eligibility.
4. The utilities should be allowed to enroll CARE customers by telephone.
5. During the coming winter months, CARE customers should continue to be enrolled in the program even if they fail to recertify their income eligibility.
6. Low-Income Energy Efficiency program income eligibility criteria should match those used for CARE.
7. Low-Income Energy Efficiency program customers should not be required to reimburse the utilities for weatherization services if the customers are later found to lack income eligibility.
8. Forced-air furnace replacement is appropriate if the new units are more efficient that the ones they replace.
9. The utilities should perform necessary duct work when replacing furnaces.
10. The utilities should be permitted to replace leaky or broken water heaters.
11. The utilities should be allowed to increased the number of new refrigerators and compact fluorescent bulbs that they place in qualifying homes.
12. The utilities should offer levelized payment plans to master meter customers.
13. The utilities should not shut off service, during the coming winter months, to customers that continue to pay at least 50% of their bills.
14. CARE customers should not be disconnected after the winter months if they agree to, and comply with, a plan to repay all past-due amounts within 12 months.
15. The utilities should waive reconnection fees and deposits for CARE customers during the coming winter months.
IT IS ORDERED that:
1. Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), Southern California Gas Company (SoCalGas), San Diego Gas & Electric Company (SDG&E) and SouthWest Gas Company (SouthWest) shall allow all residential customers earning no more that 200% of poverty levels to enroll in the California Alternative Rates for Energy (CARE) program.
2. The utilities shall make CARE discounts available to those otherwise qualified customers in submetered, group living, and agricultural housing.
3. Because we are expanding CARE eligibility to the 200% level, the electric utilities shall offer FERA only to additional customers with income between 200% and 250% of poverty levels.
4. The utilities shall use telephonic contact with existing and prospective CARE participants to encourage the enrollment of qualified customers. The utilities may use census block and other income-related data to identify fruitful geographic areas to focus a telephone campaign. This is an experiment. Part of what we want to know is if this method of enrollment leads to a higher percentage of unqualified customers signing up for CARE discounts. We ask the utility to track this data carefully. If post-verification results in the conclusion that an ineligible customer erroneously enrolled in CARE, the utility shall not attempt to recover from the customer the CARE discount for any amounts already billed up through April 30, 2005. Thereafter, the utilities may return to their normal back-billing practices.
5. In order to keep providing discounts to as many eligible customers as possible, we will approve the SDG&E and SoCalGas proposed suspension of recertification activities, and permit any other utility to suspend its recertification activities during the winter if it chooses. We further direct all utilities to maintain discounts for all non-responding customers throughout the winter period.
6. The utilities shall submit changes to CARE application forms needed to implement this decision or to otherwise simplify the paperwork requirements through advice letters, no later than November 1, 2005. The new forms will temporarily become effective the day they are filed. If the Energy Division finds that the new forms are consistent with this decision and otherwise acceptable, it may approve them by letter. Otherwise, the new forms will be subject to a Commission resolution. We will require parties to file any objections to the proposed forms within five working days, and anticipate that the Energy Division will respond to the advice letters as quickly as possible.
7. For PG&E, SDG&E, SCE and SoCalGas, low-income energy efficiency income eligibility benchmarks shall be as those used for the CARE program.
8. The utilities shall hold harmless from repayment any customer receiving low-income energy efficiency program benefits this winter even if the customer is later found not to qualify based on income.
9. The utilities may replace gas-fired central forced-air furnaces, as part of a whole-house weatherization effort, or on a "go-back" basis for dwellings that have previously been treated, where the existing furnace has an Annual Fuel Utilization Efficiency (AFUE) rating of 65 or lower. The utilities would replace these furnaces with models providing AFUE ratings of 80 or 92, depending on the climate zone.
10. During the winter months, the utilities shall make furnace benefits available to renters, where feasible.
11. The utilities are authorized to perform necessary duct work when installing a new furnace.
12. The utilities may include the replacement of leaky or broken gas water heaters as a measure for this winter.
13. All utilities may increase the number of new refrigerators and compact fluorescent bulbs that they place in qualifying homes. The utilities shall continue to replace only refrigerators than are ten years old or more. The utilities may "go back" to homes previously weatherized to provide new refrigerators and compact fluorescents as appropriate. Where this rapid deployment effort involves homes that are insufficiently weatherized, the utilities shall either provide other weatherization services in that home within a reasonable period of time, or obtain a commitment from the customer to receive other services later.
14. SoCalGas shall convene a meeting, within two weeks following the issuance of this order, with representatives of ACCES and other interested parties, as well as PG&E and SCE, to discuss a common low-income energy efficiency educational strategy and inform the Assigned Commissioner and all other parties to this proceeding of their plans, by letter.
15. Utilities that do not already do so shall offer levelized payment options to master meter customers this winter and inform customers about this option.
16. The utilities shall not shut off service during the winter months to customers that continue to make minimum bill payments. CARE customers shall not be disconnected if they agree to, and comply with, a plan to repay all past-due amounts within 12 months. In addition, utilities waive reconnection fees and deposits for CARE customers during the winter months.
17. We direct the utilities to do the following:
a. Provide plain-speaking bill inserts that describe the coming challenge, and inform customers of the steps they can take (including participation in CARE and the Low-Income Energy Efficiency program where applicable) to protect themselves against high costs. Utilities should include such bill insert in the next available billing cycle. As usual, the utilities shall work on insert language with the Public Advisor, who is encouraged to share drafts with the five groups that have raised this issue.
b. Work with utilities and contractors to ensure effective message coordination with the Flex Your Power campaign. Some utilities, as well as Commissioner Susan Kennedy, have already taken steps to effectuate this type of coordination.
c. Include information about the Medical Baseline program in appropriate outreach efforts.
18. No later than November 1, 2005, the utilities shall file advice letters proposing changes to tariffs and forms in compliance with this order. These changes will temporarily become effective the day they are filed, subject to later action by the Energy Division or the Commission. If the Energy Commission finds that the advice letters are consistent with this decision and otherwise acceptable, it may approve them by letter. Otherwise, the advice letters will be subject to Commission resolution. Parties must file objections to the advice letters within five working days.
This order is effective today.
Dated , at San Francisco, California.
