ALJ/JSW/tcg DRAFT CA-15
5/24/2001
Decision DRAFT DECISION OF ALJ WONG (Mailed 4/24/01)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking on the Commission's Proposed Policies Governing Restructuring California's Electric Services Industry and Reforming Regulation. |
Rulemaking 94-04-031 (Filed April 20, 1994) |
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Order Instituting Investigation on the Commission's Proposed Policies Governing Restructuring California's Electric Services Industry and Reforming Regulation. |
Investigation 94-04-032 (Filed April 20, 1994) |
OPINION CONCERNING ELECTRIC RESTRUCTURING
EDUCATIONAL EFFORTS
Summary
When electricity deregulation was introduced in California, an integral part of the program was the customer education effort. The Commission recognized that there was a need to educate consumers about the changes occurring in the electric industry, and how those changes would affect them. (D.95-12-063 [64 CPUC2d 1, at p. 84], as modified by D.96-01-009.)1 As part of the California Legislature's deregulation initiative, Assembly Bill (AB) 1890 (Stats. 1996, ch. 854) specifically mandated the development and implementation of a customer education program.2 As a result, various customer education efforts were adopted and carried out. At the present time, there are some customer education activities which have not been completed. These consist of the activities of the Electric Education Trust (EET) utilizing the services of community-based organizations (CBOs), and the education of small businesses under the auspices of the Commission's Consumer Services Division (CSD).
Since the Commission and the Legislature first adopted and implemented the electric deregulation initiatives, the electricity market has changed dramatically. The price of wholesale electricity and natural gas have increased significantly, Stage 2 and Stage 3 power alerts have been frequent occurrences, rate surcharges in response to the electricity crisis have been instituted, and Californians have encountered rolling blackouts. More blackouts are likely unless significant energy conservation efforts are undertaken.
The focus of these uncompleted customer education efforts should be adjusted to account for these recent events. Instead of focusing on direct access, these educational efforts should be broadened to include messages about conserving electricity, eligibility for the California Alternate Rates for Energy (CARE) program, and the exemption of certain customer classes from the recently adopted three-cent per kWh surcharge. Today's decision clarifies that the focus of these uncompleted customer education efforts should be adjusted to reflect these new educational priorities.
1 D.95-12-063, as modified by D.96-01-009, is commonly referred to as the Preferred Policy Decision. D.95-12-063 is found in 64 CPUC2d 1, and D.96-01-009 is found in 64 CPUC2d 228. 2 Former Public Utilities Code § 392(d), which was added by AB 1890, and subsequently relabeled as Public Utilities Code § 392(b) by Chapter 275 of the Statutes of 1997 provides as follows: "Prior to the implementation of the competition transition charge, electric corporations, in conjunction with the commission, shall devise and implement a customer education program informing customers of the changes to the electric industry. The program shall provide customers with information necessary to help them make appropriate choices as to their electric service. The education program shall be subject to approval by the commission."
