CONTACT: Dianne Dienstein August 1, 1997 CPUC - 89
415-703-2423 (R.94-04-031/I.94-04-032)

CPUC APPROVES PACIFICORP CUSTOMER EDUCATION PROGRAM

ABOUT ELECTRIC INDUSTRY CHANGE

The California Public Utilities Commission (CPUC) today approved PacifiCorp's plan for educating its customers about changes in California's electric industry and the kinds of choices they will have in January of 1998. All CPUC-regulated electric utilities will carry out a comprehensive consumer education program beginning September 1 and continuing until May 1998. The goal is to make sure utility customers statewide receive accurate, clear, and enough unbiased information to help them make appropriate choices about their electric service.

Public Utilities Code Section 392 requires "that electricity consumers be provided with sufficient and reliable information to be able to compare and select among products and services provided in the electricity market, and [that] consumers be provided with mechanisms to protect themselves from marketing practices that are unfair or abusive."

Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric will carry out a joint, coordinated program under Commission oversight. PacificCorp and Sierra Pacific sought, and today received, Commission approval to carry out programs tailored to their customers and services.

The Commission found that PacifiCorp was very thorough in explaining: its reasons for wanting a separate consumer education program, and details of how it plans to develop and carry out the program, and how it plans to use the money it has requested for the program - which it will recover through rates. Although PacifiCorp requested $268,000, the Commission authorized up to $180,000 as reasonable.

PacifiCorp's involvement in the competitive electricity market will differ from other CPUC-regulated utilities in several ways, and that is why it wants to create an education plan specific to its customers.

PacifiCorp does business in California as Pacific Power & Light and serves 40,000 electric customers in Alturas, Crescent City, Mt. Shasta, Yreka and the surrounding communities.

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CPUC APPROVES PACIFICORP CUSTOMER EDUCATION PLAN 2

PacifiCorp will turn over operation of its transmission system to the Northwest independent grid operator, instead of to California's Independent System Operator. Because its rates are already lower than those of other utilities, it proposes a price freeze through 2001 but no 10 percent reduction for residential and small commercial customers as other utilities will implement. PacifiCorp is not seeking recovery of competition transition costs during the price freeze, nor is it proposing rate reduction bonds. It won't compete as a power supplier for contestable loads within its Northern California service area, but will remain the default supplier. Its customers rely on local, small town media or Southern Oregon for news. The Commission agreed that given these circumstances unique to PacifiCorp, it should carry out its own customer education program. However, PacifiCorp must refrain from addressing in that program the issue of whether the 10 percent rate reduction for residential and small commercial customers required by AB 1890 applies to Sierra Pacific customers (as it does to those of the three major utilities) until the Commission decides the matter in a future decision.

PacifiCorp will educate its employees to make sure they have the information they need to answer customers' questions, and will communicate with customers using:

• community advisory groups to help develop the education program.
• focus groups to determine how much customers already understand about the coming competitive electric industry.
• bill inserts in summer and fall to describe changes in the electric industry.
• meetings with media to discuss industry changes and to encourage the media to assist in educating the public.
• paid advertisements, mailing information brochures to customers, public forums, and
• speaking with community groups.

Some of the key messages PacifiCorp will focus on include: assuring customers that although they will have choices, they do not have to do anything differently than they currently do; assuring customers that safe and reliable service will continue no matter who they purchase electricity from; and advising customers where to get additional information, how they can switch to a new supplier; and that safeguards are available if they want to report marketer abuse.

PacifiCorp must have its customer education materials reviewed and approved by CPUC Energy staff to ensure they are accurate and unbiased, that is, that they do not favor PacifiCorp at the expense of competing electricity suppliers.

The utility may also develop marketing materials specifically to favor itself, and those materials will not be subject to review, but the costs for them will be borne by shareholders, not ratepayers.