3. Rulemaking (R.) 10-02-005
On February 5, 2010, the Commission issued R.10-02-005. In addition to encouraging utilities to identify their best practices to reduce customer disconnections, the Commission required PG&E, SoCalGas, SDG&E and SCE to immediately implement three interim practices:
1. Customer service representatives (CSRs) must inform any customer that owes an arrearage on a utility bill that puts the customer at risk for disconnection that the customer has a right to arrange a bill payment plan extending for a minimum of three months the period in which to pay the arrearage. CSRs may exercise discretion as to extending the period in which to pay the arrearage from three months up to twelve months3 depending on the particulars of a customer's situation and ability to repay the arrearage. CSRs may work with customers to develop a shorter repayment plan, as long as the customer is informed of the three month option. Customers must keep current on their utility bills while repaying the arrearage balance.
2. Once a customer has established credit as a customer of that utility, the utility must not require that customer to pay additional reestablishment of credit deposits with the utility for either slow-payment/no-payment of bills or following a disconnection.
3. Utilities were authorized to establish memorandum accounts using Tier 1 Advice Letters (AL) to track any significant additional costs, including operations and maintenance charges associated with implementing the customer practices, and any uncollectable expenses that exceed those projected in the utility's last general rate case.4
The utilities were directed to implement the three practices within five business days. R.10-02-005 also directed utilities to propose a uniform billing/accounting methodology that ensures that the customer receives proper credit for monies paid.5
R.10-02-005 established a Preliminary Scoping Memo which outlined issues to be considered, required the utilities to file monthly reports of specific disconnection data and provided utilities and parties an opportunity to comment on the interim practices and address other issues in the Preliminary Scoping Memo.
Furthermore, R.10-02-005 directed utilities to file Tier 3 Advice Letters (ALs) to establish a new fund using California Alternate Rates for Energy (CARE) funds as matching funds to apply for federal funds available through the Temporary Assistance to Needy Families (TANF) Emergency Contingency Fund (Emergency Fund).6 The Emergency Fund is in addition to a current TANF Contingency Fund that needy California families can access through established agencies.7 The Emergency Fund program expires on September 30, 2010.
3 Each utility may implement a repayment plan schedule that exceeds twelve months, but no utility is required to extend the schedule beyond three months.
4 PG&E, SCE, SDG&E and SoCalGas have established memorandum accounts to track additional costs.
5 R.10-02-005 at 7.
6 The Emergency Fund was established through the American Recovery and Reinvestment Act (ARRA) to provide critical payment assistance to eligible low-income customers. Eligibility for TANF includes legal residency, children and employment in addition to other criteria.
7 Separately, PG&E, SCE, SDG&E and SoCalGas assist customers in paying bills through other assistance programs. These programs are PG&E's Relief for Energy Assistance through Community Help (REACH). SCE's Energy Assistance Fund Program (EAF), SDG&E's Neighbor to Neighbor program and SoCalGas' Gas Assistance Fund (GAF) program.
