Order Instituting Rulemaking (OIR): Customer Electric & Natural Gas Service Disconnection Issues Overview of OIR Low Income Oversight Board Meeting March 30, 2010
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
OIR Actions • Provides Interim Relief to Customers • Sets out Scope of Proceeding • Requires IOUs to Seek ARRA Funding • Defines Interim Reporting Requirements
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
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
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.
Advice Letters: ARRA Funds Amount of IOU CARE funds to be utilized* Matching ARRA funds=$40 M Total for qualified households=$50 M April 2010: Resolutions anticipated to be on Commission agenda for approval *Maximums, funding not used will be returned to CARE balancing account.
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
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
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