Order Instituting Rulemaking (OIR): Customer Electric & Natural Gas Service Disconnection Issues

Overview of OIRLow Income Oversight Board

MeetingMarch 30, 2010

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OIR Purpose

To continue Commission efforts to reduce the number of gas and electric utility service disconnections due to nonpayment by improving customer notification and education.

-- OIR issued 2/5/2010

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OIR Actions

Provides Interim Relief to Customers

Sets out Scope of Proceeding Requires IOUs to Seek ARRA

Funding Defines Interim Reporting

Requirements

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OIR Interim Relief

Four IOUs required to implement the following two practices: Inform customers asking about

payment plans that the customer has at least 3 months to pay back arrearage.

Eliminate additional deposits for the purpose of reestablishing credit

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Scope of OIR

Comments (3/12) & Reply Comments (4/2) Interim practices Best practices

Contacting customers delinquent in paying monthly bill Outreach & education for customer assistance

programs, bill management, etc. Targeting customers

Tailoring scripts and automated calls Reporting requirements Benchmarks for disconnections

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Leveraging ARRA Funds

ARRA funds appropriated to Temporary Assistance to Needy Families (TANF) program (expires September 30, 2010).

Every $1 of local contributions matched with $4 from ARRA.

OIR directs IOUs to file Tier 3 advice letters to take advantage of the funds.

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Advice Letters: ARRA Funds

Amount of IOU CARE funds to be utilized*

Matching ARRA funds=$40 MTotal for qualified households=$50 MApril 2010: Resolutions anticipated to be on

Commission agenda for approval

*Maximums, funding not used will be returned to CARE balancing account.

PGE = $5 million SCE = $2 million

SDG&E = $1 million

SCG = $2 million

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Interim Reporting

Monthly data filed by four IOUs Billing Assistance/Payment

Arrangements Late or Broken Payment Arrangements Account Arrearages Service Terminations

Data categorized CARE, FERA, Non-CARE/FERA

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Parties Providing Comments Investor Owned Utilities

PGE, SCE, SDG&E, & SoCalGas Consumer Organizations

Division of Ratepayer Advocates Disability Rights Advocates & Greenlining

Institute Greenlining Institute National Consumer Law Center The Utility Reform Network (TURN)

Other Parties The City & County of San Francisco

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OIR Next Steps

Estimated Timeline April 2, 2010 — OIR Reply Comments

Due April 2010 — Resolution approving

advice letters on Commission agenda for adoption

May 2010 — Proposed decision issued June 2010 — Proposed decision on

Commission agenda