ALJ/SAW/sid DRAFT Agenda ID #5020
Quasi-Legislative
10/27/2005 Item 40
Decision DRAFT DECISION OF ALJ WEISSMAN (Mailed 10/25/2005)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking on the Commission's Proposed Policies and Programs Governing post-2003 Low-Income Assistance Programs. |
Rulemaking 04-01-006 (Filed January 8, 2004) |
Application of Pacific Gas and Electric Company (U 39 M) For Approval of the 2006 and 2006 California Alternative Rates for Energy and Low Income Energy Efficiency Programs and Budget. |
Application 05-06-005 (Filed June 1, 2005) |
Southern California Edison Company's (U 388-E) Application Regarding Low Income Assistance Programs for Program Years 2006 and 2007. |
Application 05-06-009 (Filed June 1, 2005) |
Application of Southern California Gas Company (U 904 G) for Approval of Low Income Assistance Programs and Budgets for Program Years 2006 and 2006. |
Application 05-06-012 (Filed June 1, 2005) |
Application of San Diego Gas & Electric Company (U 902 M) for Approval of Low Income Assistance Programs and Budgets for Program Years 2006 and 2006. |
Application 05-06-013 (Filed June 1, 2005) |
INTERIM OPINION APPROVING VARIOUS EMERGENCY PROGRAM CHANGES IN LIGHT OF ANTICIPATED HIGH NATURAL GAS PRICES IN THE WINTER OF 2005-2006
TABLE OF CONTENTS
Title Page
INTERIM OPINION APPROVING VARIOUS EMERGENCY PROGRAM CHANGES IN LIGHT OF ANTICIPATED HIGH NATURAL GAS PRICES IN THE WINTER OF 2005-2006 2
I. Summary 2
II. Procedural Background 2
III. Discussion 2
A. CARE Eligibility 2
B. CARE Enrollment 2
C. Low-Income Energy Efficiency Program Modifications 2
1. Eligibility 2
2. Enrollment 2
3. Gas Forced Air Furnaces 2
4. Gas Water Heater Replacement 2
5. Refrigerators and Compact Fluorescent Bulbs 2
6. Low-Income Energy Efficiency Program Funding Levels 2
7. Low-Income Customer Energy Education Workshops 2
D. Rates and Bills 2
1. Rate Freezes and Caps 2
2. Levelized Payment Plans 2
3. Continuity of Service 2
4. Medical Baseline 2
E. Outreach 2
F. Local Offices 2
G. Executive Compensation 2
H. PG&E's Advice Letters 2
IV. Assignment of Proceeding 2
V. Comments on Draft Decision 2
VI. Conclusion 2
Findings of Fact 2
Conclusions of Law 2
INTERIM ORDER 2
INTERIM OPINION APPROVING VARIOUS EMERGENCY PROGRAM CHANGES IN LIGHT OF ANTICIPATED HIGH NATURAL GAS PRICES IN THE WINTER OF 2005-2006
I. Summary
Buyers and sellers of natural gas anticipate exceptionally high gas prices this winter, with utility bills as much as 70% higher than comparable bills last year. These cost increases will also affect bills for electricity, since electric utilities are heavily dependent on gas-fired generation. While these cost increases create a burden for all customers, we are especially concerned about the potential impacts on low-income residential customers. We held a full-panel hearing on October 6, 2005, in Los Angeles, to more closely study these impacts, and to solicit proposals for providing low-income customers with greater bill protection this winter. Most of those proposals relate to aspects of two existing programs: the California Alternative Rates for Energy (CARE), which provides discounted rates for qualifying low-income energy customers; and the Low-Income Energy Efficiency Program, which provides weatherization and appliance replacement services for qualifying low income customers. In this decision, we adopt the following:
1. CARE rates become available to all customers with incomes between 175% and 200% of the Federal poverty guideline levels. Currently, eligibility ends at 175% of the poverty guidelines.
2. CARE customers may now enroll by telephone.
3. No CARE customers will be dropped from the program during the winter months for failure to recertify their income eligibility.
4. The same expanded income eligibility criteria will apply to both CARE and Low-Income Energy Efficiency program participants. Currently, Low-Income Energy Efficiency program participants are limited to those with 175% of the poverty guidelines, with the exception of elderly and disabled, who must be within 200% of the poverty guidelines.
5. Low-Income Energy Efficiency program enrollment is simplified in several ways, to help speed up the provision of services this winter.
6. Utilities are authorized to accelerate the replacement of gas forced-air furnaces, leaky or broken gas water heaters, and inefficient refrigerators and light bulbs for low-income customers this winter.
7. Utilities are directed to expand and improve their levelized payment plans, including taking steps to ensure that there are frequent true-ups to avoid creating a large year-end payment due.
8. The utilities are prohibited from shutting off service this winter to low-income customers that make regular payments of at least 50% of their bills. The utilities must provide such customers with 12-month repayment plans starting at the end of the winter.
9. The utilities are directed to waive reconnection fees and deposits for CARE customers this winter.
10. The utilities are directed to take various steps to increase and improve outreach efforts related to high winter bills, CARE, Medical Baseline, and the Low-Income Energy Efficiency program.
