8. Comments on Draft Decision
The draft decision of Administrative Law Judge Econome in this matter was mailed to the parties in accordance with Pub. Util. Code Section 311(g) and Rule 77.1 of the Rules of Practice and Procedure. No parties filed comments to the draft decision.
1. Although the primary purpose of the affiliate's use of the utility name or logo on building signage, company vehicles, employee uniforms, and installed equipment on the customer's premises may be for identification, this use may also have a secondary marketing purpose or effect. We also recognize that the application of Rule V. F. 1. Is not limited only to instances where the affiliate is marketing a product, but is more broadly designed to help prevent customer confusion by reinforcing the separation of the affiliate and the utility in the mind of the consumer.
2. We carve a narrow exemption to Rule V.F.1 for the types of building signs described in Section 5 and the Ordering Paragraphs of this decision because it is important to identify where, for example, the affiliate's offices are located in a building, and because posting the disclaimer on the top of a building with a large sign may be unwieldy or impossible.
3. We carve a narrow exemption to Rule V.F.1 for the types of affiliate company vehicles and employee uniforms described in Section 6 and the Ordering Paragraphs of this decision because it is important that consumers be able to identify which company owns and is responsible for a vehicle, and, more importantly, to identify for whom a particular employee works, especially if the employee makes field calls (i.e., if the employee is a repair person). Important public safety concerns require such identification.
4. We carve a narrow exemption to Rule V.F.1 for equipment installed on a customer's premises, provided that the customer has previously been exposed to the disclaimer in the affiliate's marketing of the product, and provided that the utility name or logo on the equipment is not accompanied by additional marketing information (i.e., that it is not accompanied by a phone number where the customer can buy similar products or receive compatible services, etc.). We do so because we do not want to discourage the affiliates from informing customers how to repair the equipment they have purchased, and because customers generally should have been exposed to the disclaimer in the marketing of the product.
5. If parties can demonstrate the utility is using the limited exemptions we make to Rule V.F.1 in this decision to circumvent the purpose of our Affiliate Transaction Rules, we can eliminate the narrow exemptions we adopt in this decision.
Edison's December 14, 1998 petition for modification of Rule V.F.1 of the Commission's Affiliate Transaction Rules should be granted so as to provide Edison, and other utilities subject to the Affiliate Transaction Rules, a limited exemption from the disclaimer requirement of Rule V.F.1 of the Affiliate Transaction Rules in the four limited situations described more fully in this decision, and particularly in the Ordering Paragraphs of this decision: (a) building signage; (b) company vehicles; (c) employee uniforms; and (d) installed equipment on customer premises.
IT IS ORDERED that:
1. Southern California Edison Company's (Edison) December 14, 1998 petition for modification of Rule V.F.1 of the Commission's Affiliate Transaction Rules shall be granted so as to provide Edison, and other utilities subject to the Affiliate Transaction Rules, a limited exemption from the disclaimer requirement of Rule V.F.1 of the Affiliate Transaction Rules in the four limited situations described more fully in this decision and in particular in the following Ordering Paragraphs: (a) building signage; (b) company vehicles; (c) employee uniforms; and (d) installed equipment on customer premises.
2. Edison and other utilities subject to the Affiliate Transaction Rules are granted a narrow exemption from Rule V.F.1 of the Affiliate Transaction Rules with respect to the types of building signs set forth below, provided that the signs set forth below are used as identification, and not to expressly market a product or service or the company.
a. Outdoor signs located on a building in which the affiliate is located.
b. "Monument signs" outside buildings in which the affiliate is located. These signs are usually freestanding signs jutting up from lawns or concrete walkways.
c. Building entrance signs in a building in which the affiliate is located, or in an adjacent or nearby parking structure serving the affiliate's offices. These signs include those placed on buildings and adjacent to entry doors as well as signs placed directly on such doors (e.g., the company's name applied by paint, decal, adhesive placard, or through etched glass.) The intent of these signs is to indicate the correct entrance to use for a particular facility.
d. Lobby signs located in a building which is occupied by the affiliate.
e. Reception area signs in the affiliate's business offices, which offices do not also operate as retail stores or other similar types of areas open to the general public. These types of signs include signs at suite door entrances, directional signs, reception desk name plates, etc.
3. Edison and other utilities subject to the Affiliate Transaction Rules are granted a narrow exemption from Rule V.F.1 of the Affiliate Transaction Rules with respect to the types of affiliate company vehicles and employee uniforms set forth below, provided that the name or logo is used as identification, and not to expressly market a product or service or the company. For example, such signs should not routinely include telephone numbers, promotional banners, or other product advertisements. In the event it is necessary to include an affiliate telephone number on a company vehicle (such as a security patrol car) to indicate where the consumer can call if there are any problems, the number should connect to an affiliate's "trouble shooting" desk. A utility shall not use company vehicles or uniforms to co-advertise or co-brand with its affiliate. The affiliate company vehicles and employee uniforms included within this exemption include:
a. Uniforms worn by a retail affiliate's field service employees (i.e., repair persons, installers and security officers) while performing their duties within California. (For Edison, this includes employees of Edison Select and Edison Source and their respective subsidiaries.)
b. Field service trucks, patrol cars, and similar vehicles used by a retail affiliate's in the course of installation or repair of customer premises equipment or response to security alarms within California.
4. Edison and other utilities subject to the Affiliate Transaction Rules are granted a narrow exemption from Rule V.F.1 of the Affiliate Transaction Rules with respect to affiliate-installed equipment provided that the customer has been exposed to the disclaimer in the affiliate's marketing of the product, and provided that the utility name or logo on the equipment is not accompanied by additional marketing information (i.e., that it is not accompanied by a phone number where the customer can buy similar products or receive compatible services, etc.).
This order is effective today.
Dated April 22, 1999, at San Francisco, California.
RICHARD A. BILAS
President
HENRY M. DUQUE
JOSIAH L. NEEPER
Commissioners
