To: Direct Access "Puppy" Group D
From: Michael Shames
RE: Consumer Principles (Second Draft)

CONSUMER RIGHTS IN RESTRUCTURING

This is NOT a memorialization of the agreements reached at the May 16th meetings. Instead, it builds off of the proposals made, incorporating principles established in other states.

I. Right to Know

Since a competitive market is only as beneficial as the information available to customers, customers must be ensured of access to affordable and accurate informational and education materials to all customers that enable comparison of price, quality, service record and terms of service offered by all market participants.

Elements:

II. Right to Choice

Customers should have choices which offer substantial savings and identifiable value. All customers should have the ability to aggregate efficiently on a non-discriminatory basis. Where competitive services are not available to certain customer groups, barriers to competition that prevent access by these customers must be eliminated.

Elements:

III. Fair Dealing

All classes of customers should have access to affordable choices and pricing options without undue discrimination. Service claims must be verifiable and service responsive to all customer classes.

Elements:

IV. Right to Redress

Regulatory oversight must continue to ensure that electric providers maintain prompt, low-cost and effective redress for customer complaints in a neutral forum. Regulatory enforcement and penalty power required.

Elements:

V. Right to Privacy

Consumers have a constitutionally protected right to control personal information and records used only in a pertinent manner and to reject unduly intrusive communications and technology.

Elements:

VI. Customer Participation

Customers must be able to participate in regulatory oversight of restructuring which should be on-going during and after competition commences until such time as all customers have meaningful choices of services and providers.

Elements:

VII. Quality of Service

Service must be safe and reliable with a choice of differentiated levels of service

Elements:

VIII. Required Codes of Conduct

As a condition of registration and continued service rights, all providers must either accept an industry standard code of conduct or offer an alternative code specifying principles upon which their customer service policies and business practices will be based.

Elements:

IX. Right to Affordable Electric Service

Because it is a necessary service, electric restructuring must result in no greater costs for the most inelastic classes of customer.

Elements:

X. Transaction Costs

Essential elements of electric service should be non-proprietary and customers without or with modest market choice should be responsible for no more than an equitable share of costs arising from restructuring. Public policy to promote access requires minimizing transaction costs.

Elements:

XI. Improvement over the status quo

Competition must support, rather than jeopardize, existing and evolving social and environmental policies and programs Special "lifeline" rates and services and safeguards for low-income customers, the elderly and disabled should be preserved in a restructured environment.

Elements:

***********
Time is the best teacher. The only problem is she kills off all of her students..

Michael Shames
mshames@electriciti.com
UCAN
1717 Kettner Blvd. Suite 105
San Diego, CA 92101
(v) 619-696-6966
(f) 619-696-7477