9. Comments on Draft Decision
The draft decision of the Administrative Law Judge (ALJ) was mailed to the parties on ___________, 2001. An extended period for public review and comment was provided, with concurrent opening comments due on ________, and concurrent reply comments due on __________. Discussion of the comments follows.
1. GO 96-B comprehensively governs utility tariffs and advice letters.
2. To implement GO 96-B, a transition period is appropriate.
3. The number of advice letters pending during the transition period should be minimized.
4. A special approval process during the transition period is appropriate.
5. The Commission's rules for public review and comment regarding draft resolutions complement the GO 96-B advice letter procedures.
6. Large utilities should be required to provide Internet access to their tariffs.
7. Historic advice letter practice, as set forth in GO 96-A, has become inadequate in relation to the volume and variety of advice letters submitted for Commission review in recent years.
8. Advice letters should be separated into two broad groups: advice letters disposed of by staff, where approval or rejection is ministerial; and advice letters disposed of by Commission resolution, where approval or rejection requires the exercise of discretion.
9. Only an advice letter that the utility has properly submitted for staff disposition (for water, the "Ministerial Tier;" for energy and telecommunications, Tier 1 or Tier 2) may be deemed approved.
10. The tier under which a utility submits an advice letter does not irrevocably dictate the mode of disposition of that advice letter.
11. Whenever disposition of an advice letter would be a ministerial act, staff has delegated authority under GO 96-B to make that disposition.
12. Allowing certain advice letters to be implemented at some time before their approval will both help the Commission and the stakeholders to focus their resources on more controversial matters and better accommodate innovation and competition in the marketplace.
13. A necessary condition to allowing any advice letter to go into effect before it has received approval is that the utility must be prepared to undo any actions the utility has taken to implement the advice letter if the advice letter ultimately is not approved.
14. Drafting, placing on the Commission's agenda, and voting on a resolution within the 30-day initial review period contemplated by Pub. Util. Code § 455 is generally not possible.
15. An extension of the Tier 1 review period does not cancel the effectiveness of the advice letter.
16. A 60-day rather than a 30-day initial review period for Tier 1 advice letters is appropriate.
17. A Tier 2 advice letter is not in effect during the initial review period, and its effectiveness is suspended throughout any subsequent review period, consistent with Pub. Util. Code § 455 and with the fundamental premise of Tier 2 (and Tier 3) advice letters that approval of these advice letters must occur before any proposed change becomes effective.
18. The suspension of Tier 3 advice letters under GO 96-B is automatic if (as generally will be the case) disposition does not occur by the end of the initial review period.
19. Unprotested advice letters in Tiers 1 or 2 may be deemed approved without a written disposition. In all other instances, there will be a written disposition.
20. All advice letter dispositions will be reported in tabular form at the Commission's Internet site.
21. In general, a Commission resolution disposing of a prior advice letter should be subject to modification through the same informal procedure, so long as proper notice is given.
22. It is appropriate to require a cover sheet, which would concisely summarize all critical information about a given advice letter.
23. The text of any given tariff as in effect at any given time must be readily determined.
24. The exclusive use of advice letter supplements to modify advice letters will enhance the review process and better track the text of proposed and approved tariffs.
25. A utility should ensure that its advice letter includes all necessary supporting data when submitting the advice letter.
26. Public access to tariffs is vital as long as utility service continues to depend, generally or to any significant extent, on filed tariffs.
27. Any interested person should be able to determine the applicable tariffs currently in effect, or in effect as of a particular date, for a particular utility. A logical system of tariff sheet numbering is helpful in making such determinations.
28. For new energy products and services to be offered under tariff, only Tier 3 provides an appropriate level of regulatory scrutiny.
29. All telecommunications advice letters proposing new services should be reviewed under Tier 2, which will ensure fairness and appropriate regulatory scrutiny before they become effective.
30. The various Industry Rules are modified, compared to the versions originally proposed, to better conform to the provisions, structure, and terminology of the General Rules, and to make appropriate cross-references to the General Rules, other Commission rules and orders, and statutory provisions. Where appropriate, the allocation of advice letter subject matter by tier is adjusted, and procedures for specific types of advice letters are added.
1. If an advice letter is clearly erroneous, Industry Division staff should reject the advice letter.
2. The Commission may lawfully delegate ministerial determinations to its staff.
3. If the reviewing Industry Division determines that the utility's Tier 1 or 2 designation of an advice letter was improper under the applicable Industry Rules, staff will reject the advice letter without prejudice. If designated Tier1, the advice letter's effectiveness will cease, and the Commission will further direct the utility regarding any other remedial actions.
4. Pub. Util. Code § 455 governs tariff changes "not increasing or resulting in an increase in any rate." Rate changes generally are governed by Pub. Util. Code § 454.
5. Since Tier 1 advice letters may become effective pending disposition, Pub. Util. Code § 455 does not constrain the Commission to complete its review within 30 days.
6. Utility representations, for example in ads regarding a tariffed service, must be consistent with the terms and conditions of the applicable tariff(s).
7. A utility's tariffs must identify optional features as such, must disclose alternative means (such as different rate plans) of obtaining a particular service, and in both cases must specify the means by which the customer chooses.
8. Regarding tariff content, the utility must provide comprehensive tariffs and bear the risk of any tariff ambiguity.
9. To rapidly accomplish the reform of the Commission's advice letter procedures and tariff requirements, today's order should be made effective immediately.
IT IS ORDERED that:
1. General Order (GO) 96-B is adopted, effective July 1, 2001, and shall govern the review and disposition of advice letters submitted on or after its effective date.
2. GO 96-A shall continue to govern the review and disposition of any advice letter filed on or before June 30, 2001. Any such advice letter that was filed on or before May 21, 2001, that is unprotested (i. e., no timely protest was submitted), and that is still pending as of July 1, 2001, shall be automatically approved as of that date, unless, on or before that date, the reviewing Industry Division either has (1) placed on the Commission's agenda a draft resolution disposing of the advice letter, or (2) made a data request or otherwise given written notice to the utility that its advice letter is undergoing active review.
3. Rulemaking 98-07-038 is closed.
This order is effective today.
Dated March , 2001, at San Francisco, California.
See Acrobat Version
For the Cover Letter, Matrix, Draft Decision, and
Appendices A--E
