3.  GO 96-B Rules Adopted Today

In substance, the GO 96-B rules adopted today are nearly identical to the tariff publication provisions (General Rules 8.1.1 to 8.1.3) and certain provisions for tariffed service (General Rules 8.2.1 and 8.2.2) as set forth in the February 14 draft decision. Discussion of these provisions follows.¹

3.1 Tariff Publication

With certain exceptions that are specifically authorized, a public utility must serve its California customers under terms and conditions set forth in tariffs

filed with and approved by this Commission. The reliance on tariffs is part of the original statutory design to prevent utilities from imposing unreasonable terms on customers and to ensure fair, nondiscriminatory service.

To further the statutory design, the Commission has always required utilities to make their tariffs reasonably accessible to their customers. One of the deficiencies of GO 96-A is that it predates the widespread availability of, and reliance on, the Internet. Thus, GO 96-A does not require, or even address, tariff publication via the Internet.

We adopt today, for implementation no later than January 1, 2002, various tariff publication requirements that take appropriate advantage of the Internet. Most notably, we are requiring Internet publication of tariffs for utilities whose gross intrastate revenues (as reported annually to the Commission) exceed $10 million. At the same time, for any utility so publishing its tariffs, we are relaxing the requirement to maintain tariffs for public inspection at utility offices. For all utilities, we provide that a caller may get tariff information or order copies by telephone.

The premise of tariff publication rules is that public access to tariffs is vital as long as utility service continues to depend, generally or to any significant extent, on filed tariffs. Meaningful public access requires that an interested person be able to determine (1) the tariffs in effect, the tariffs that would be affected by pending advice letters, and the tariffs that are no longer in effect, and (2) the tariffs that govern (or formerly governed) the provision of a particular product or service at a particular time. Today's rules revisions are crafted with these public access goals in mind.

3.2 Information About Tariffed Services

For tariffs to fulfill the statutory design that they protect utility consumers, the tariffs must be clear and complete, and the information a utility provides about its tariffed services must be consistent with its applicable tariffs. The disclosure provisions of GO 96-A do not adequately address these matters in today's changing utility industry. The rule revisions we adopt today apply well-recognized principles of contract law and consumer protection to better ensure appropriate disclosure. There are three main revisions.

First, we require that an ambiguity in a tariff provision be construed in the way most favorable to the customer. By definition, tariffs are not individually negotiated, and our process of tariff review and approval cannot absolutely guarantee that application of a tariff will always be clear in any situation that might arise. As the drafter of the tariff and the party with the most complete knowledge of situations the tariff is intended to cover, the utility must properly bear the responsibility for the clarity of its own tariffs and any liability arising from its failure to do so.

Second, we require that a representation (such as advertising) by a utility regarding a tariffed service be consistent with the applicable tariffs. The accuracy of utility marketing has been at issue in several recent complaint and enforcement proceedings at the Commission. With more utilities offering more services and more choices, often in competition with other service providers, accuracy in advertising is necessary both to protect consumers and to ensure fair competition.

Finally, we require that a utility's tariffs identify optional features as such, disclose alternative means of obtaining a particular service, and in both cases specify the means by which the customer chooses. GO 96-A has a similar requirement, but the provision there mentions only optional rates. Particularly for telecommunications, where features and service plans have proliferated, we need to state the requirement more broadly. The proposed rule revision is intended to help ensure that tariffs fully and readily disclose information a customer would need in deciding between service options.