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

Learn about OIR's efforts to improve customer notification and education to reduce utility service disconnections. Explore OIR actions and phases of the rulemaking process.

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

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  1. Order Instituting Rulemaking (OIR): Customer Electric & Natural Gas Service Disconnection Issues OIR Update Low Income Oversight Board Meeting September 22, 2010

  2. 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

  3. OIR Actions • Provided Interim Relief to Customers • 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 • Set out Scope of Proceeding • Interim practices • Best practices • Tailoring scripts and automated calls • Reporting requirements • Benchmarks for disconnections • Required IOUs to Seek ARRA Funding • Required Interim Reporting Requirements

  4. OIR Phase I Process • April 2, 2010 — OIR Reply Comments • April 2010 — Resolutions adopted approving transfer of CARE funds to TANF/ARRA program • April 2010 – Data request submitted by ALJ and IOU responses received • May 2010 – Application submitted by CA to US DHHS for matching ARRA funds • June 2010 — Proposed decision issued • July 2010 — Decision approved 5-0 by Commission

  5. OIR Decision Phase I • Requires IOUs’ CSRs to inform customers with overdue bills that three-month payment plans are available. Gives CSRs the discretion to extend the payment period. • Eliminates re-establishment credit deposits due to disconnection for CARE and FERA households. Bans IOUs from collecting re-establishment deposits as a result of late payment of bills. • Requires IOUs to provide an automatic payment plan to allow new or reconnecting customers a payment option in lieu of a cash credit deposit. • Prohibits IOUs from disconnecting medical baseline or life support customers without an in-person visit from a utility representative. Requires IOUs to allow for in-person payment collection for these customers. • Requires IOUs to submit draft uniform disconnection process by October 1, 2010.

  6. OIR Phase II Process • August 26, 2010 — ALJ Ruling Issued seeking comments re: a) Individual billing dates, b) Defining “sensitive customers”, c) Exceptions to deposit rules. • September 2010 – All-party meeting to discuss pilot re educating and assisting customers. • September 15, 2010 – Responses to ALJ ruling submitted. • October 1, 2010 – Uniform Disconnection Procedures submitted by IOUs. • November 2010 — Proposed Phase II Decision mailed. • December 2010 – Proposed Decision on Commission calendar for vote.

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