Direct Access Working Group

Subgroup D - Consumer Protection and Education

Framework for Consumer Education About Electricity Restructuring

DISCUSSION DRAFT -- September 12, 1996 (Lorenzo Kristov, CEC)

Basic Messages

The framework described here identifies five basic messages that should be conveyed to consumers to help prepare them for competitive electric service. The messages should be expressed and conveyed in a manner that is clear and simple and emphasizes the practical implications for the consumer and avoids abstract concepts. The five messages are:

1. Change is coming. The way you purchase electric service is about to change.

2. What the change is about. Consumers will be allowed / required to choose among competing electric service providers. Providers will be making contact with consumers to try to sell them electric service. We might tell consumers: "Remember what happened when long-distance telephone service became competitive? The same thing is about to happen in electricity."

3. What every consumer should look out for. Can the consumer ignore the change - continue service as usual - without being penalized? Where to call for reliable information and help.

4. How to make a good choice. If the consumer wants to participate in the competitive market, how to obtain the service that best meets the consumer's needs.

5. How to seek redress. Where to go, what to do in the event of intrusive marketing, unethical business practices, failure to perform on contract, etc.

Presentation

These messages may be "packaged" for consumers as separate materials and presented in some sequence, as might be done in an advertising campaign. Or they may be combined into a single media vehicle as a comprehensive education package. A variety of media should be utilized.

Target Audience

Messages 1, 2 and 3 should be universal, to reach all consumers regardless of whether and how direct access is phased in. Messages 4 and 5, however, may go to the more limited audience that is eligible to participate or has expressed interest in participating.

Unresolved Questions and Concerns

1. If we educate the entire population that change is coming, what if nothing happens? That is, what if there is little or no retail activity aimed at small customers? We may want to advise the CPUC to order a market assessment, to assess customer interest in direct access as well as supplier interest in serving small customers.

2. Should consumer education be implemented entirely as a transition activity, or should there be a component that is ongoing? (Not to be confused with consumer protection, which certainly would be ongoing.)