PG&E, September 26, 1996
DAWG Group "D"
Consumer Protection and Education
(This document was presented at the September 26 meeting of DAWG-D and discussed briefly. Please send comments, alternatives, pros, cons, etc., to its author, Art McAuley, of PG&E by October 4, 1996, for inclusion in the October 8 report draft.)
Section 7.2.6. -Customer Service Quality
INTRODUCTION
This chapter focuses on provisions of direct access implementation that will be necessary to ensure that customer service quality is not compromised in selecting direct access. The chapter deals with:
As a general principle, under restructuring the provision of UDC service will remain subject to the terms and conditions specified by the Commission and incorporated in utility tariffs and service agreements. These terms and provisions will apply to all UDC customers, whether full service or direct access. As a result the UDC will maintain an operational relationship with all customers to ensure continued quality of service for customers and assure integrity of the distribution network. This relationship, which should be delineated in an operational agreement with direct access customers, will include functions and mutual obligations regarding metering, meter-reading (for UDC purposes), notification of changes in customer load and so on. This relationship should be maintained regardless of the billing relationship between the UDC and the customer, i.e. regardless of whether a retailer or billing agent provides a consolidated bill to the customer.
Furthermore, a customer will only be physically disconnected (according to Commission-approved procedures) for violation of its obligations to the UDC -- not to a third-party energy provider. The UDC should not have to be the disconnection agent for disputes between customers and non-UDC providers. Those providers should merely be allowed to cease providing energy services after following Commission-specified procedures and providing adequate notice to the UDC, the default provider.
Another key principle is that standards for credit, deposits, billing disputes, cessation of service etc. should be the same for the UDC and for other ESPs. This is necessary to prevent red-lining and other undesirable selection or rejection of customers by non-UDC providers.
I. INITIATION OF SERVICE
Service may be initiated based on a written agreement between the service provider and the Customer. Customer and Energy Service Provider (ESP) must provide written notice to the Utility Distribution Company (UDC) of change in supplier. Prior to the agreement, the customer shall be informed, in writing, of customer's rights to change back, all rates and charges for the services customer desires, other conditions of service, material terms and conditions, required service provider information listed below, and any other rates or charges which will appear on the customer's first bill.
Potential customers who are denied service for failure to establish credit or pay deposit as described in Rule X must be given the reason for the denial in writing within X days of service denial.
A. APPLICATIONS
The ESP and UDC shall require each prospective customer to sign an application for the service desired, and also to establish credit.
1. Requirements for application of service from a UDC shall remain as they are now or as directed by the CPUC.
2. Requirements for application of service from an ESP may include:
a. Legal name of applicant.
b. Location of premises.
c. Date applicant will be ready for service.
d. Whether service was previously supplied to the premises and by whom.
e. Purpose for which service is to be used, with description of appliances.
f. Address to which bills are to be mailed or delivered.
g. Whether applicant is owner, agent, tenant of premises.
h. Rate schedule desired when optional rate is available.
i. Such other information as the service provider may reasonably require for service.
B. ENERGY SERVICE PROVIDER INFORMATION
A. UDCs shall be required to provide information as obligated under current tariffs on file with the CPUC.
B. ESPs shall provide each applicant for service or customer the following:
1. The California Public Utilities Commission identification number of its registration to operate as an energy service provider within California.
2. The address and telephone number of the California Public Utilities Commission to verify its authority to operate.
3. A copy of these Consumer Protection Regulations.
4. A toll-free number to call for service or billing inquiries, along with an address where the customer may write the service provider.
5. A full disclosure of all fictitious, i.e. dba, names.
6. The names of billing agents it uses in place of performing the billing function itself.
7. Rate information as required by the Commission.
8. Declaration of being bonded or not.
9. Service provider address or place of business.
II. BILLING
A. INFORMATION REQUIRED OF UDC AND ENERGY SERVICE PROVIDERS ON CUSTOMER BILLS
The billing agent shall identify the UDC and the ESP, if applicable, on each bill. Each bill must prominently display a toll-free number for service or billing inquiries, along with an address where the customer may write. If the service provider uses a billing agent, the provider must also include the name of the billing agent it uses. Each bill for energy service will contain notations concerning the following areas:
1. When to pay your bill;
2. Billing detail including the period of service covered by the bill;
3. Late payment charge and when applied;
4. How to pay your bill;
5. Questions about your bill;
6. Termination of service;
7. Breakdown of services, if other services are billed;
8. Breakdown or unbundling of energy components included in the bill shall allow comparisons with other suppliers;
9. Description of how to read and understand the bill;
10. Date that bill is due and payable by;
11. Dispute resolution procedure.
B. DISPUTED BILLS
1. CORRECTNESS OF BILL
If the correctness of a bill is questioned or disputed by a customer, an explanation should be promptly requested from the billing agent. If the bill is determined to be incorrect, the billing agent will issue a corrected bill.
2. BILL REVIEW PROCEDURE
A customer who has initiated a complaint or requested an investigation shall be given an opportunity for review of his/her complaint.
a. After review, when a residential customer and the UDC or ESP agree on the amount of the bill, the UDC or ESP will determine and advise the customer: of the date the unpaid balance of the account must be paid. If an amortization period is warranted and agreed to by the customer and the billing agent, service will not be discontinued for nonpayment, provided the customer continues to meet the obligations of that agreement and keeps current their account for utility service as charges accrue in each subsequent billing period. If the customer fails to comply with this arrangement, service shall be subject to discontinuance for nonpayment of bills as provided in the Section concerning Discontinuance of Service.
b. After review, when a customer and the service provider or UDC fail to agree on the amount of the bill and upon review, the service provider or UDC has determined to its satisfaction that the bill is correct, the service provider or UDC will explain to the customer that:
1) The service provider or UDC has completed its investigation and review.
2) In lieu of paying the disputed bill, the customer may deposit with the California Public Utilities Commission at its office in the State Building, San Francisco, CA 94102, the amount claimed by the UDC or service provider to be due. A check or other form of remittance for such deposit should be made payable to the California Public Utilities Commission. A residential customer who is unable to pay the full amount in dispute will not be required to deposit the full amount in dispute for a bill covering a period in excess of 90 days but shall deposit an amount equal to 90 days at the average disputed charge per day of the disputed bill.
3) The customer shall submit the disputed bill and a statement setting forth the basis for the dispute of the amount billed.
4) Upon receipt of the deposit, the commission will notify the UDC or service provider, review the basis of the billed amount, and advise both parties of its findings and disburse any deposit in accordance therewith.
5) Service will not be discontinued for nonpayment of the disputed bill when deposit has been made with the Commission pending the outcome of the Commission's review.
6) Failure of the customer to submit a dispute to the Commission in accordance with 1) and 2) above will warrant discontinuance of customer's service in accordance with the Section concerning Discontinuance of Service.
7) If, before completion of the commission's review, additional bills become due which the customer also wishes to dispute, the customer should follow the procedures set forth in 2) and 3) above with regard to the additional amounts claimed by the service provider or UDC to be due. Failure to follow the procedures in 2) and 3) above may warrant discontinuance of customer's service in accordance with the Section concerning Discontinuance of Service.
8) Subsequent bills, not in dispute, rendered prior to the settlement of the disputed bill, will be due and payable in accordance with the Sections concerning Rendering and Payment of Bills and Discontinuance of Service.
III. CREDIT AND DEPOSITS
The same credit and deposit requirements shall apply to all Energy Services Providers and UDCs, alike.
A. CREDIT REQUIREMENTS
Each applicant for service shall provide credit information satisfactory to the service provider or pay a deposit.
Deposits shall not be required if the applicant:
1. Provides credit history acceptable to the service provider. Credit information contained in the applicant's account record may include, but shall not be limited to, account established date, "can-be-reached" number, name of employer, employer's address, customer's driver's license number or other acceptable personal identification, billing name, and location of current and previous service. Credit cannot be denied for failure to provide social security number.
2. A cosigner or guarantor may be used providing the cosigner or guarantor has acceptable credit history with the service provider.
3. UDC has the ability to use back payment record with aggregator (service provider) against customer upon return to bundled service.
B. DEPOSITS
1. In the event the customer fails to establish a satisfactory credit history, deposits are a form of security that shall be required from customers to ensure payment of bills.
2. Each energy service provider can require a deposit.
3. Deposits are not transferable when changing from ESP to UDC service or from a UDC to ESP service.
C. RETURN OF DEPOSIT
1. The UDC will refund the supply portion of a customer's deposit upon customer change from UDC to ESP as a provider of supply subject to conditions in Rule X. The UDC may refund a customer's deposit by draft or by applying the deposit to the customer's account and the customer will be so advised. If the customer establishes service at a new location, the UDC may retain the deposit for such new account, subject to the conditions following.
2. Upon discontinuance of service, the UDC will refund the customer's deposit or the balance thereof which is in excess of unpaid bills for service furnished by the UDC.
3. When the customer's credit is otherwise established in accordance with the Section concerning Establishment and Re-establishment of Credit, the UDC will refund the deposit either upon the customer's request for return of the deposit or upon review by the UDC.
IV. DISCONTINUANCE OF SERVICE PROCEDURES
A. Requirements of UDCs may include:
1. UDCs will follow approved discontinuance of service procedures. The UDC will not terminate service for service provided by a third party.
2. The UDC may deny or terminate service to the customer immediately and without notice when:
a. The UDC determines that the premise wiring, or other electrical equipment, or the use of either, is unsafe, or endangers the UDC's service facilities; or
b. The customer threatens to create a hazardous condition; or
c. Any governmental agency, authorized to enforce laws, ordinances or regulations involving electric facilities and/or the use of electricity, notifies the UDC in writing that the customer's facilities and/or use of electricity is unsafe or not in compliance with applicable laws, ordinances, or regulations.
d. When relocation or replacement of electric service by the UDC is necessary, the service, including the metering facilities, will be installed in locations mutually acceptable to the UDC and the customer and which conform to current applicable codes, regulations and standards. If no such mutually acceptable location can be agreed upon, the UDC shall discontinue service until the customer and the UDC reach agreement.
e. The UDC will not supply service to a customer operating equipment which is considered by the UDC to be detrimental to either the service of other UDC customers or to the UDC. The UDC will terminate service and refuse to restore service to any customer who continues to operate such equipment after receiving notification from the UDC to cease.
f. The rights of the UDC and the consequences in cases where fraudulent information is given to the UDC by the customer shall remain as they are presently.
B. Requirements of ESPs may include:
1. ESPs will follow Commission approved procedures for discontinuance of service.
2. Requirements of service discontinuance due to non payment of energy services bill by the due date shown on the bill and after all notice requirements and periods of response have been met.
3. The ESP shall provide the applicant of Notice of the proposed discontinuance pursuant to Rule X.
4. The ESP shall have the right to terminate supply arrangement, discontinue service, or refuse to provide service to applicant or customer, without advance notice if the acts of the customer or conditions upon the premises are such as to indicate that false, incomplete, or inaccurate information was provided to the ESP or if the acts indicate intention to defraud the service provider. This includes fraudulently providing and receiving energy and energy services and /or providing false credit information.
5. Energy services providers must provide at least 30 days notice to UDC of intent to cease, discontinue or terminate supply or service arrangement whether due to non-payment or customer request.
C. Customer is responsible for notification to UDC, proper agreements, etc. for customer default service if UDC provides energy due to discontinuance of service by energy service provider.
D. UDC has the right to discontinue service without any liability to energy services provider.
NOTICES FOR DISCONTINUANCE OF SERVICE
A. Discontinuance of Service Notice
Notices to discontinue service for nonpayment of bills shall be provided in writing by first class mail to the customer and to the UDC, not less than 10 calendar days prior to termination. Each notice of discontinuance of service for nonpayment of bills shall include all of the following information:
1. The name and address of the customer whose account is delinquent.
2. The amount that is delinquent.
3. The date by which payment or arrangements for payment are required in order to avoid termination.
4. The procedure the customer may use to initiate a complaint or to request an investigation concerning service or charges.
5. The procedures the customer may use to request amortization of the unpaid charges.
6. The procedure for the customer to obtain information on the availability of financial assistance, including private, local, state, or federal sources, if applicable.
7. The telephone number of a representative of the UDC or service provider, who can provide additional information or institute arrangements for payment.
8. The telephone number of the commission where the customer may direct inquiries.
V. FORMAL CHANGE OF SERVICE PROVIDER
A. Solicitation of customer authorization for non-UDC supply or energy service termination and transfer.
Solicitations by service providers, or their agents, of customer authorization for termination of service with an existing service provider and the subsequent transfer to a new service provider must include current rate information on the new service provider and information regarding the terms and conditions of service with the new provider. Solicitations by service providers, or their agents, must conform with the appropriate California Public Utilities Code Section XXX. All solicitations sent by service providers or their agents to customers must be legible and printed in a minimum point size of type of at least 10 points. A penalty or fine of up to $XXX.XX may apply for each violation of this Rule.
B. Unauthorized service termination and transfer ("Slamming")
A service provider will be held liable for both the unauthorized termination of service with an existing provider and the subsequent unauthorized transfer to their own service. Service providers are responsible for the actions of their agents that solicit unauthorized service termination and transfers. A provider who engages in such unauthorized activity shall restore the customer's service to the original provider without charge to the customer. All billings during the unauthorized service period shall be refunded to the applicant or customer. A penalty or fine of up to $XXX.XX payable to the Commission may apply to each violation of this Rule. As prescribed under PU Code Section XXX, each day of a continuing violation shall constitute a separate and distinct offense. The service provider responsible for the unauthorized transfer will reimburse the original provider for reestablishing service at the tariff rate of the original service provider.
VI. STANDARDS FOR METERING DEVICES, INSTALLATION AND MAINTENANCE
Shall meet all ANSI standards for metering, engineering and applicable building codes. (See DAWG Appendices G, H, and I).
A. METER TESTS
1. A standard shall be put in place so that any Customer may, upon not less than X working days notice, require the UDC to test the Customer's electric meter. No payment or deposit will be required from the customer for such tests when the customer meets certain usage or credit/deposit criteria. A deposit to cover the reasonable cost of the test will be required of Customers that abuse or request tests greater than the amount of tests set forth in the standard.
2. The deposit will be returned to the Customer if the meter is found, upon testing, to register more than two percent fast or slow under conditions of normal operation.
3. A Customer shall have the right to require the UDC to conduct the test in the customer's presence, or in the presence of an expert or other representative appointed by the Customer. A report giving the result of the test will be supplied to the Customer by the UDC within a reasonable amount of time after completion of the test.
4. All electric meters will be tested at the time of their installation. No meter will be placed in service or allowed to remain in service which has an error in registration in excess of two percent under conditions of normal operation. On newly purchased single-phase meters, the manufacturer's test may be used as the installation test when the UDC's random tests indicate satisfactory test results for a particular manufacturer and for a particular shipment.
VII. BONDING AND INSURANCE PROVISIONS FOR ENERGY SERVICES PROVIDERS
The purpose of requiring retailers to be bonded would be partly to protect their customer from financial exposure in case the retailer defaulted on its obligations to the ISO, the UDC or other entities. In the case of the UDC, for example, the end-use customer will probably remain liable for UDC charges, even if it is billed indirectly by a billing agent.
AB 1890 (sec. 397) does not establish a requirement that retailers be bonded or insured to cover their obligations in case of default. In the event that retailers are not required to post a reasonable bond, there are other avenues open to addressing financial protection for customers: