CONTACT: Kyle DeVine September 24, 1997 CPUC - 552
213-897-4225 C95-10-012

CPUC ORDERS PACIFIC BELL TO IMPROVE NOTICES AND BILLS

The California Public Utilities Commission today ordered Pacific Bell to lift the fog off of estimates, confirmations, billing and collection notices so that customers can see and understand what charges they may be billed for, what they must pay to avoid disconnection of local services, and what installation or repair services consumers or another company may provide.

The action taken results from a consumer, Wilson Ogg, bringing to the Commission's attention the confusion he experienced when Pacific Bell installed a second telephone service in his home. He was quoted one price. He was sent a confirming notice after the work was done that had listed a different price; although there was a disclaimer that labor charges are not shown, the disclaimer was buried in the middle of the page. Then he was billed another price which incorrectly included charges for installing a jack when there was one already in place.

Because Ogg was disputing the bill, he did not pay it and received a notice that his service would be temporarily disconnected for non-payment. A quick reading of the notice gives the impression that service will be disconnected if the full amount has not been paid by a specified date. But a careful reading informs customers - in industry terms, not plain language - that basic service will not be disconnected for failure to pay installation charges.

Part of this confusion stems from the fact that Pacific Bell does not draw a clear line, on its notices or estimates, between services performed by monopolies and services that can be done by competitors. Providing dialtone to a home at the time Ogg's service was installed was exclusive to local phone companies; the in-home wiring done at Ogg's premises was open to competition. But the Commission believes the confusion can be cleared up by better written notices and orders Pacific Bell to work with the CPUC Public Advisor's office in creating clearer notices.

The Commission is concerned that the incorrect charges billed to Ogg may not be an isolated case and orders the CPUC Consumer Services Division to review Pacific Bell service and billing records to see if there is a pattern. If so, the Commission will launch an investigation into the utility's billing practices.