From mshames@ucan.org Thu Jun 27 14:13:20 1996
Subject: Privacy -- for posting on the Web Page

TO:  Team "D"
FROM: Michael Shames
RE:       PRIVACY 
DATE:  June 24, 1996


The following are UCAN's responses to the questions posed by the group at the
June 19th meeting.     As a preface, UCAN believes that questions about privacy
should be broken into two types of information:  protected and unprotected
information. "Protected" information is any information that is customer
specific or can be used to readily secure customer-specific information.
"Unprotected" information is aggregated customer information.     These
categories roughly correspond to the "personal" and "impersonal" information
terms used by the group at the last meeting.


1.  Equal access by electric or generation service providers?

UCAN submits that all players in the electric markets should enjoy equal access
to unprotected information at as low a cost as possible.     We see no
differentiating factor for generation service providers.


2.  Privacy standards governing retailers?

Retailers must preserve the confidentiality of any "protected" information.
Retailers have an obligation to sell, at cost, any "unprotected" information to
the UDC if the UDC can demonstrate that that information is necessary to conduct
load profiling.   They do not have an obligation to sell "unprotected"
information to other energy service providers.


3.   Release of UDC protected and unprotected information?

The UDC must sell, AT COST, any unprotected information to any licensed energy
provider.    UDC may not attempt to sell the information at "market" prices nor
may it sell the information to other companies without CPUC approval.
Protected information may also be sold, at cost, but only when specifically
authorized by the individual customer.


4.  Opt-in/Opt-out

UCAN submits that customers must expressly CHOOSE to have any protected
information released by a UDC or any other energy service provider. Providers
may periodically offer customers the option of opting-in to a release of such
information. However, in no circumstance can protected information be released
due to a customer's inaction.


5.   Pricing for information provided by the UDC

Any customer information sold by the UDC (protected or unprotected) must be sold
at cost.    Cost will be determined by the CPUC in period regulatory
proceedings.     In some cases, the CPUC will determine that such information
has literally no cost.   For example, the MIRACLE customer consumption surveys
conducted annually by a UDC have costs that have already been collected in
rates.    The CPUC may reasonably conclude that such information, having been
paid by ratepayers, can be released at the cost of copying and handling, and no
more.

The public interest will be served by the low-cost and ready dissemination of
unprotected customer information to the marketplace.    UCAN will look to this
interest being served by offering existing unprotected customer information
collected by IOUs at as low a cost as possible.


6.   Who gets the revenue

There will be little, if any revenue, to squabble over if all information is
disseminated at cost.     If information is sold at above cost, then revenue
should go to the individual customer, which has previously given information to
the utility with the understanding that it was for limited use purposes.   UCAN
believes that customer specific information has been given to IOUs in the past
with a limited-use restriction. The customer has retained the right to control
any use of the information beyond the provision of monopoly electric service.


Michael Shames - mshames@ucan.org

Utility Consumers' Action Network
1717 Kettner Blvd.  Suite 105
San Diego, CA  92101
619-696-6966