Consumer Protection Under Statewide Video Franchises

1. Consumer Protection Under Statewide Video Franchises SCAN NATOA Annual Conference May 24, 2007

2. Purpose • The Division of Ratepayer Advocate’s (DRA’s) consumer protection role under the Digital Infrastructure Video and Communications Act (DIVCA) • Identify ways for DRA to work with local entities to protect video consumers Division of Ratepayer Advocates

3. Topics of Discussion • Overview of DRA’s statutory role and mission • Requirements under DIVCA • Building a working relationship with local entities Division of Ratepayer Advocates

4. Overview of DRA’s Role and Statutory Mission • DRA is an independent division of the CPUC • DRA’s legislative mandate is to advocate on behalf of the interests of public utility and video customers • DRA’s statutory goal is to obtain the lowest possible rate for service consistent with safe and reliable service levels. Division of Ratepayer Advocates

5. How DRA Operates • Independent from the CPUC for policy, budget and resources • Participates in CPUC administrative proceedings by analyzing utility filings and assessing policy initiatives • Performs investigations and legal discovery • Prepares expert analysis and testimony • Lobbies Commissioners and Legislature • Negotiates settlements Division of Ratepayer Advocates

6. DRA’s Role Under DIVCA • Public Utilities (PU) Code section 5900(k) DRA shall have authority to advocate on behalf of video customers regarding renewal of a state-issued franchise and enforcement of: • PU Code section 5890 (anti-discrimination and build out provisions), • PU Code section 5900 (customer service and consumer protection standards), and • PU Code section 5950 (cross-subsidization prohibition) Division of Ratepayer Advocates

7. Anti-Discrimination and Build-Out Provisions (5890) • DRA is barred from independently filing a formal complaint regarding discrimination issues • DRA can raise discrimination issues by: • Informally raising the issue with the Commission; • Participating in a formal investigation or enforcement action initiated by the Commission; and • Partnering with a local entity to bring a joint complaint. Division of Ratepayer Advocates

8. Customer Service and Consumer Protection Standards (5900) • Local Entities, not CPUC have jurisdiction for enforcement • Prohibited from establishing new standards • DRA’s enforcement authority for customer service and consumer protection will be practiced before local entities and the courts • State Legislature can enact additional standards Division of Ratepayer Advocates

9. Prohibition of Cross Subsidization (5950) • Franchise holders cannot use revenue from basic residential phone service to offset video service prices • Residential phone service prices cannot be increased until January 1, 2009 • Future protection only through affiliate rules and accounting requirements Division of Ratepayer Advocates

10. Consumer Protection • Customer Service and Consumer Protection Standards • Government Code • Customer Service standards: installation, disconnection, service and repair, service call response time and scheduling, office hours, billing, procedures for service termination, programming change and rate increase notice, complaint and bill dispute procedures (53055) Division of Ratepayer Advocates

11. Consumer Protection (cont’d) • Annual notice to employees, customers, city and county describing customer service standards. The notice shall include the customer service standards, a listing and description of the services offered, the rates for each level of service, a telephone number for customer service and a description of rights and remedies available. Video providers must report annually on customer service standard performance. (53055.1-2) Division of Ratepayer Advocates

12. Consumer Protection (cont’d) • Providers shall render reasonably efficient service, make repairs promptly, and interrupt service only as necessary. Specific notice requirements for rate increases, allowance for bill payment, rules and notice for service termination, refund requirements, and sets forth schedule of penalties. (53088.2) • Customer Privacy Protections (Penal Code Section 637.5 ) Division of Ratepayer Advocates

13. Consumer Protection (cont’d) • Customer service rep availability by toll-free phone 24/7; response time guidelines for service installation (within 7 business days) or interruption (work to commence within 24 hours), and 4 hour appointment windows; and timely refunds and credits.Federal Cable Act (47 U.S.C.) Division of Ratepayer Advocates

14. Working with Local Entities • Local entities receive customer complaints • Local entities can file complaints regarding discrimination and build-out issues • DRA has access to all information possessed by the CPUC • DRA has experience with and knowledge of CPUC process Division of Ratepayer Advocates

15. Next Steps • DRA and local entities need to establish process for monitoring video franchisee performance • Awareness of current customer service standards and local enforcement • Follow up meetings to develop process going forward Division of Ratepayer Advocates

16. Contact Information Division of Ratepayer Advocates: Cynthia Walker, Deputy Director 415 703 1836, ciw@cpuc.ca.gov Mary Jo Borak, Supervisor 415 703 1333, bor@cpuc.ca.gov Consumer Services and Information Division: Phil Enis, Program Manager 415 703 4112, pje@cpuc.ca.gov Division of Ratepayer Advocates