3. Summary of the Settlement Agreement
3.1. The Settling Parties' Litigation Positions
In A.05-12-002, PG&E requested authority to close all 84 of its front counters by June 30, 2007, and to reduce rates by $24 million annually starting in 2008. DRA, CFBF, and TURN opposed any closures. TURN also recommended that PG&E reduce the cost of front counters by 20%. Greenlining did not oppose PG&E's proposal, but expressed concern about the impact that PG&E's proposal would have on underserved communities. CCUE intervened on behalf of union members affected by PG&E's proposal.
The Settling Parties represent all the active parties on front-counter issues. They ask the Commission to approve the Settlement Agreement without modification and to find that the Settlement is reasonable in light of the whole record, consistent with the law, and in the public interest.
3.2. Summary of the Settlement Terms
The Settlement Agreement allows PG&E to close nine of its 84 front counters within six months of Commission approval. The front counters to be closed are located in Alameda, Corcoran, Geyserville, Half Moon Bay, Newman, Orland, Petaluma, Willits, and Willow Creek. These front counters were selected based on their relatively low transaction volumes and their proximity to other PG&E front counters. PG&E will reduce rates by a total of $2,757,000 through 2010 to pass through the savings from the closure of the nine front counters.6
The Settlement includes a Closure Plan that requires PG&E to notify by mail all customers who have used the nine front counters in the prior 12 months that these counters will be closed. The notice will provide information about alternatives to the closed front counters, including the locations of nearby NPCs. PG&E will also meet with representatives of the towns affected by the closures to discuss ways to reduce the impacts on these communities.7
PG&E will maintain for three years at least the same number of NPCs in close proximity to the nine front counters as existed on January 1, 2007.8 Each of these NPCs will have a public phone located on premises or within one block that customers can use to call PG&E. PG&E will encourage NPCs to provide multilingual staff, to maximize the hours and days of operation, and to stock brochures on PG&E's low-income programs. PG&E will also work with Greenlining to incorporate additional criteria in PG&E's semi-annual NPC audits to address Greenlining's concerns about NPC service.9
On a pilot basis, PG&E will establish a call center for agricultural customers staffed by agricultural specialists. The new call center will have its own toll-free number that is separate from the toll-free number for PG&E's main Call Center. The call center for agricultural customers will be staffed weekdays from 7:00 a.m. to 7:30 p.m. and on Saturdays from 7:00 a.m. to 4:30 p.m. PG&E will work with CFBF to promote the use of this call center. PG&E agrees to operate the pilot program for at least one year, and PG&E may make the program permanent if it proves useful to agricultural customers.10
PG&E will dedicate two field representatives to agricultural issues. If an agricultural customer has a problem that cannot be resolved over the phone by the new call center, the problem will be referred to the dedicated field representative closest to the customer's location. The representative will then call the customer to resolve the issue or schedule a time to meet.11
PG&E will not close additional front counters for a minimum of three years from the date the Commission approves the Settlement. After three years, PG&E may seek to close up to 20 additional front counters, but such closures will not occur until after the Commission issues a decision authorizing additional closures in PG&E's 2011 test-year GRC. The other Settling Parties reserve the right to protest any future proposal to close front counters.12
Finally, the Settlement provides that PG&E employees affected by the closures may exercise their rights under pertinent labor agreements. The Settlement also requires ratification by appropriate union membership,13 which was obtained on March 30, 2007.14
3.3. Declarations in Support of the Settlement Agreement
The Settlement Motion includes two sworn declarations from PG&E's expert witnesses Steve Phillips and Bruce T. Smith.15 Phillips states that the nine front counters to be closed represent less than 4% of all payment transactions and less than 3% of all non-payment transactions at front counters in 2005. He also represents that PG&E notified customers of its proposal to close all 84 front counters by (1) mailing notices to all customers, and (2) posting notices at all front counters from September 1, 2005, to October 21, 2005. During this period, PG&E received approximately 1,000 responses. Of the 1,000 responses, 19 were from customers using one of the nine front counters to be closed. Of the 19, one customer supported the closures and 18 opposed. Of the 18 opposing, one thought the co-located field service center was closing, not the front counter. The remaining commentators mostly cited convenience and the ability to talk to a person face-to-face as their reasons for wanting the front counters to stay open.
Mr. Phillips states that payment alternatives exist for all nine front counters in the form of NPCs that provide longer operating hours at all nine sites and alternative language capabilities at six of the nine. Seven of the nine front counters to be closed have an NPC within one mile. Eight of the nine are located within 30 minutes driving time of another PG&E front counter.
Mr. Phillips also asserts that there are no transactions that require a customer to go to a front counter. Payments can be made in a variety of ways, including by mail, NPCs, by phone, electronic debiting, and on-line at pge.com. Phillips states that all non-payment transactions can be handled by calling PG&E's regular toll-free number, which is available 24 hours a day and can provide services in over 150 languages.
Mr. Smith's declaration provides the details of the forecasted total savings of $2,757,000 through 2010 from the closure of the nine front counters.
6 Settlement, paras. 9 and 25. This projected savings of $2,757,000 assumes a July 1, 2007, closure date and will be prorated if the front counters are closed at a later date.
7 Settlement, para. 26 and Attachment 3 of the Settlement.
8 As required by D.98-07-077, PG&E provided in A.05-12-002 a list of all NPC locations and their general proximity to each of the 84 front counters. (Exhibit PG&E-5-WP06A&B, pp. 6AB-2 to 6AB-6.) PG&E listed a total of 378 NPCs.
9 Settlement, paras. 15, 20, 21, and 22.
10 Settlement, para. 16, and supplemental filing on April 24, 2007.
11 Settlement, para. 17.
12 Settlement, paras. 9, 10, 11, 12, and 14.
13 Settlement, paras. 23 and 27.
14 Settlement Motion, p. 5.
15 The declarations were admitted into the evidentiary record as Exhibits PG&E-80 and PG&E-81 pursuant to a ruling issued by the assigned ALJ on April 23, 2007.
