Contact: Kyle DeVine 213-897-4225 (R94-04-031) CPUC-23 March 31, 1997

CPUC APPROVES PLANS TO EDUCATE ABOUT ELECTRIC INDUSTRY CHANGES

The California Public Utilities Commission (CPUC) today approved a plan to develop a consumer education program to explain changes in the electric service industry and provide consumers with information to allow them to compare and select among electricity products and services when competition in this industry begins January 1, 1998.

Consumer education will become essential as we transition into new electric market structures. Without it, consumers may become confused about their choices, or receive incomplete information about the restructured electricity market.

The plan was jointly submitted to the CPUC by Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric. The initial cost is set at $20 million and will be recovered from the utilities' customers. The other electric utilities in California - Kirkwood Gas and Electric, PacificCorp., Sierra Pacific Power Company, and Southern California Water Company - may participate in the program or submit their own education programs to the Commission for approval.

A stakeholder group will oversee the education program to develop and implement one that contains unbiased and informative messages and themes about the restructuring of the electric industry. The program will educate all consumers, particularly residential and small business customers who may be the least knowledgeable about the changes in the industry. The stakeholder group will include representatives from the utilities, electric service providers, large electrical users, consumer and bilingual advocates, public members with marketing or consumer education experience, and staff from the CPUC Office of Ratepayer Advocates.

The Commission will review the education plans making sure they promote a competitive marketplace, provide enough information for consumers to make informed choices, and educate consumers about their rights. The Commission will monitor the activities of the stakeholder group, including program milestones and funding requests. As part of the education program, the Commission and its staff are developing public outreach plans such as town hall meetings and telephone answer lines which would inform customers and answer their questions.

Education programs must begin no later than September 1, 1997, to get information to consumers before competition begins on January 1, 1998. The progam should be completed by May 31, 1998, but to assure consumers have access to information after that date, an education trust will be set-up for one year with funding initially set at $3 million. The trust will build upon what the education programs started and will have an oversight committee comprised of CPUC staff, utility and non-utility representatives, and consumer advocates.

-###-