Order Instituting Rulemaking (OIR) Customer Information Sharing between Water & Energy Utilities

1. Order Instituting Rulemaking (OIR)Customer Information Sharing betweenWater & Energy Utilities LIOB Meeting – March 2010 Carolina Contreras Division of Water & Audits

2. OIR’s Intent: OIR issued on December 17, 2009 • To determine whether sharing of qualified low income customer information should be required between regulated water utilities and regulated energy/municipal energy utilities. • To develop the guidelines and procedures governing such sharing, should it be required.

3. Background • All Class A water utilities have instituted assistance programs for low income customers. • Water utilities’ vs. Energy IOU’s penetration rates: Water Energy 2006 - 15.2%, 2006 – 72.4% 2007 - 16.1% 2009 – 85% Penetration rates are relatively low compared to those achieved by energy IOU’s.

4. Increasing Penetration Rates • The Commission’s Water Action Plan, 2005: includes objectives to improve the water assistance programs looking into the existing programs in the energy and telcom industries for guidance. • Assessment of Water Utility Low-Income Assistance Programs, 2007: • Automatic Enrollment • Leveraging • Coordinated Efforts

5. Energy Utilities share Customer Information for Enrollment in Low Income Assistance Programs • Energy utilities successfully share customer information with other energy utilities in joint service territories for automatic enrollment into CARE (required some programming). • Energy utilities share same information with the Department of Community Services and Development, to leverage Federal LIHEAP funds. This was achieved with a memorandum of understanding. • Commission determined that different definition of household and income guidelines currently precludes automatic enrollment between CARE and ULTS (D.02-07-033).

6. Data Sharing Efforts by Energy Utilities have been Successful • The high penetration rates achieved by energy utilities has been attributed, in part, to the data sharing efforts • Sharing between energy utilities automatically enrolled over 412,000 customers into CARE in the past three years alone, at a low cost. • That amounts approximately 60% of the new enrollments since 2007. The enrollment numbers above include sharing between IOU’s.

7. Energy IOU’s Customer Data Sharing Efforts PU CODE 386 386.3 (c) A publicly owned electric utility shall streamline enrollment for low –income programs by collaborating with existing providers for the Low-Income Home Energy Assistance Programs No similar code exists for water utilities.

8. Commission Dictates • SB580, approved by the Governor in October 2005, provides support for sharing of low-income customer information: • Requires that Energy utilities streamline enrollment process through collaboration with other utilities, while complying with State & Federal Privacy Laws. • Provides clear legislative intents for sharing of customer information between utilities. • Public Utilities (PU) Code §382.1(a)(5) - Assist in streamlining the application and enrollment process of programs for low-income electricity and gas customers with general low-income programs, including, but not limited to, the Universal Lifeline Telephone Service (ULTS) program and, including compliance with Section 739.1. • PU Code §382.1(e) (1) - Work with the board, interested parties, and community-based organizations to increase participation in programs for low-income customers.

9. MOU’s and Non-Disclosure Agreements • Regulated energy utilities have entered into MOU’s and Non-Disclosure Agreements with: • Other Regulated Energy Utilities: Including agreements between: • SCE and PG&E • SoCalGas and PG&E • Municipal Utilities Including agreements between: • SoCalGas and LADWP • PG&E and SMUD • PG&E and Modesto Irrigation District

10. Data Sharing will Likely Increase Participation Rates Given the successful efforts of the regulated energy utilities regarding the sharing of low income customer information and resulting increase in reaching and enrolling customers that qualify for assistance, the application of this type of program to water utilities is likely to be an efficient and effective way to increase participation in their assistance programs.

11. Sharing of Customer Information Would Benefit Low-Income Customers • Streamline water low-income program application process for water utility customers. • Increase number of low-income customers reached by water utility assistance programs. • Coordinated outreach effort between energy and water utilities, which could reduce program costs. • Ensure process complies with previous Commission Decisions & Programs, Public Utilities (PU) Code, and State and Federal Laws.

12. All programs and agreements shall comply with State and Federal laws, as well as Commission codes, decisions, orders, and rules. Regulated water utilities shall develop a program and associated agreement(s) with regulated energy utilities in which the utilities share Customer Data of those customers enrolled in low-income assistance programs. Customer Data is defined as the name, address, and other pertinent information to the provision of low-income assistance. Regulated water utilities may develop a program and associated agreement(s) with municipal utilities in which the utilities share Customer Data of those customers enrolled in low-income assistance programs. Confidential customer information consists of customer names, address, and other customer-specific information. Confidential customer information does not include such information that can be found in the public domain. All reasonable measures shall be taken to protect confidential customer information. All utility employees involved in the handling of shared customer information shall be instructed as to the use and handling of confidential customer information. Each utility, whether it be the water or the energy utility, must notify the other utility it has entered into an agreement with, immediately in writing in the event of any disclosure of confidential customer information. OIR Proposed Guidelines Asked whether the rules adopted in this proceeding by the Commission should be based on the existing program between regulated energy utilities:

13. OIR Rulings to Date However,existing energy IOU’s data sharing programs were informally developed pursuant to requirements to collaborate to streamline enrollment • February 11, 2010 Ruling • Suspended schedule • February 17, 2010 Ruling: • Corrected OIR’s original assumption that the Commission had previously adopted “rules” governing existing data sharing programs. • Set workshop to inform participants and explore how existing low-income customer information is shared among the energy utilities and discuss whether these programs can serve as models.

14. DWA Workshop, March 3, 2010 • Panel discussion by energy IOU representatives providing an overview of existing data sharing programs: • Introduction and history. • Effects of programs on new CARE enrollments. • Program characteristics. • Type and manner in which data is shared. • Past issues and solutions. • MOU/Non-disclosure agreements. • Discussed applicability of existing data sharing programs to the water industry.

15. Next Steps… • Scoping Memo will be issued containing • Scope further refined by workshop findings and discussion. • Proceeding schedule. • Reply comments anticipated.

16. Stakeholders • Customers • Community Based Organizations • Consumer Groups • Division of Ratepayer Advocates • Water Utilities • Privacy Advocates • Government Agencies