14. Assignment of Proceeding

Dian M. Grueneich is the assigned Commissioner and Bruce DeBerry is the assigned ALJ in this proceeding.

1. The economic crisis in California is continuing.

2. There is the potential for increased disconnections of customers in winter 2010-2011.

3. In order to minimize continued customer disconnections in winter 2010-2011, it is necessary for changes in existing customer service disconnection practices to have a short implementation period.

4. Changes in existing customer service disconnection practices should consider the estimated costs of implementation.

5. Information from PG&E and the Joint Utilities shows that the greater the payment period, the more likely it is that a customer will default on a pay plan, however other variables may effect those payment agreements.

6. A purpose of customer deposits is to protect utilities from providing service to a customer who does not pay for those services.

7. Additional costs of not collecting deposits fall to customers who pay their bills.

8. CARE and FERA customers are the lowest income customers and are least likely to be able to fund a reestablishment of service credit deposit.

9. Reestablishment of service credit deposits are based on twice the maximum monthly bill for PG&E, SCE and SDG&E, while SoCalGas requires twice the average monthly bill

10. PG&E's APS and SCE's DirectPay provide alternatives for customers who do not want to make a cash credit deposit.

11. It is desirable that utilities offer to communicate with customers using the customer's language of choice.

12. PG&E, SCE, and the Joint Utilities have developed similar notice procedures prior to disconnecting a customer.

13. Sensitive customers on medical baseline and life support may not receive utility communications regarding the potential for disconnection.

14. Sensitive customers on medical baseline or on life support or who have physical limitations are a very small portion of all residential customers.

15. Sensitive customers on medical baseline or on life support should have an in-person visit including a field person who could provide an opportunity for bill collection before disconnection.

16. Customers who have been remotely disconnected can be reconnected more quickly during times when field personnel are very busy.

17. Remote disconnection and reconnection provides significant cost savings compared to the costs of disconnection and reconnection using field staff.

18. GRCs are appropriate proceedings for considering customer service disconnection practices and costs.

1. The changes in customer service disconnection practices in this order should be adopted.

2. PG&E, SCE, SDG&E and SoCalGas may include any significant additional costs, including operations and maintenance charges and any uncollectable expense that exceed those projected in their last GRCs associated with implementing the customer practices ordered in this decision, in the memorandum accounts established for this purpose.

3. The Joint Utilities' Motion and DRA's motion should be granted.

4. This order should be effective immediately so that the changes in customer service practices may be implemented by October 1, 2010.

INTERIM ORDER

1. Pacific Gas and Electric Company, Southern California Edison Company, Southern California Gas Company, and San Diego Gas & Electric Company shall continue to implement the customer service disconnection practice adopted in the Order Instituting Rulemaking 10-02-005 which provides that all 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 for a bill payment plan extending for a minimum of three months the period in which to repay the arrearage. CSRs may exercise discretion as to extending the period in which to pay the arrearage from three months up to twelve months 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. Pacific Gas and Electric Company, Southern California Edison Company, Southern California Gas Company, and San Diego Gas & Electric Company shall implement the following interim practices by October 1, 2010:

a. Once a California Alternate Rates for Energy or Family Energy Rate Assistance 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.

b. No customer who is on medical baseline or life support shall be disconnected without an in-person visit from a utility representative.

3. Southern California Gas Company and San Diego Gas & Electric Company shall file a Tier 1 Advice Letter within one month of the effective date of this decision. The Advice Letter shall indicate that reestablishment of credit deposits for customers for late payment of bills are waived.

4. Pacific Gas and Electric Company and Southern California Edison shall continue to not charge reestablishment of credit deposits to customers for late payment of bills.

5. Southern California Gas Company and San Diego Gas & Electric Company shall develop and implement an automatic payment program within three months of the effective date of this decision that allows new customers a payment option that is in lieu of a cash deposit for credit. This automatic payment program shall clearly explain to customers the implications of participation.

6. Pacific Gas and Electric Company shall continue to provide to their new customers the option of using its Automatic Payment Service in lieu of a cash deposit for credit. This payment service should clearly explain to customers the implications of participation.

7. Southern California Edison Company shall provide to all their new customers and to those customers requesting reestablishment of credit after being disconnected, the option of using its DirectPay program in lieu of a cash deposit for credit. This program should clearly explain to customers the implications of participation.

8. Pacific Gas and Electric Company, Southern California Edison Company and San Diego Gas and Electric Company shall file a Tier 1 Advice Letter within one month of the effective date of this decision. The Advice Letter shall indicate changed tariff rules to provide that reestablishment of credit deposits for customers is based on twice the average monthly bill.

9. Southern California Gas Company shall continue to provide that reestablishment of credit deposits for customers is based on twice the average monthly bill.

10. Pacific Gas and Electric Company, Southern California Edison Company, Southern California Gas Company and San Diego Gas & Electric Company shall meet and recommend to the Commission uniform notice of disconnection procedures and the estimated costs and estimated time to implement uniform notice of disconnection procedures by October 1, 2010.

11. Pacific Gas and Electric Company and Southern California Edison Company shall provide a field person who can collect on a bill during an in-person visit prior to disconnection for medical baseline and life support customers.

12. San Diego Gas and Electric Company and Southern California Gas Company shall continue to provide a field person who can collect on a bill during an in-person visit prior to disconnection for medical baseline or life support customers.

13. Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company and Southern California Gas Company are authorized to charge significant costs associated with complying with the new practices continued or initiated in this proceeding to their established memorandum accounts. Memorandum account information shall be provided to the Energy Division by the 25th day of each month.

14. Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, and Southern California Gas Company are directed to file monthly reports in this proceeding of additional data as shown on Appendix A. The monthly reports shall be filed by the 25th day of each month commencing with the first month following the effective date of this decision and continuing until directed otherwise by the Commission.

15. The customer service disconnection practices ordered in this decision shall be effective until the effective dates of the next general rate cases for Southern California Edison Company, Southern California Gas Company, and San Diego Gas and Electric Company.

16. The customer service disconnection practices ordered in this decision for Pacific Gas and Electric Company shall be effective until January 1, 2012, unless otherwise ordered.

17. San Diego Gas and Electric Company and Southern California Gas Company's request to have their monthly disconnection data reports kept under seal is granted for two years from the effective date of this decision. During that period the information shall not be made accessible or disclosed to anyone other than the Commission staff except on the further order or ruling of the Commission, the Assigned Commissioner, the assigned Administrative Law Judge (ALJ), or the ALJ then designated as Law and Motion Judge.

18. If San Diego Gas and Electric Company and Southern California Gas Company believe that further protection of the information kept under seal is needed, they may file a motion stating the justification for further withholding of the information from public inspection, or for such other relief as the Commission rules may then provide. This motion shall be filed no later than one month before the expiration date.

19. This order is effective today.

Dated July 29, 2010, at San Francisco, California.

APPENDIX A

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