UCAN – CONTINUING THE WORK
As Summer turns to Fall, we hope this newsletter finds you healthy and coping well with current times. For UCAN, whether it’s advocating, representing, or educating, our work continues. Below we highlight some of our ongoing work to help individual ratepayers, as well as some of the cases we’re involved with at the California Public Utilities Commission (CPUC). And, finally, we offer some consumer education about hot issues in the utility industry. UCAN remains here to offer personal assistance, to fight for lower and well-justified rates, and to advocate for more reasonable utility programs to better our environment. Together – UCAN, We Can!
ADVOCATING FOR CUSTOMERS ONE-TO-ONE. UCAN, WE CAN!
Beyond intervening on ratepayers’ behalf before the CPUC, UCAN is proud to offer 1:1 consumer assistance on issues like resolving billing disputes and avoiding service shut-offs. With “UCAN, We Can!”, each individual bill or service dispute receives dedicated staff attention from our Consumer Advocate, Dan Whitworth.
Recently, Dan helped a senior couple with their AT&T bill. Mr. B. and his wife were struggling with a telecommunications problem. He is blind and, like many other customers, became overwhelmed with company offers, eventually losing track of what he had signed up for. When the bills came they were much more than he and his wife expected! Then the couple’s services were abruptly shut off. It turned out there was a past-due balance on a previous account in Mr. B’s name, and the carrier had attached that account to the new one. In turn, this meant their newly consolidated account was immediately badly past-due, triggering the service cutoff, all without the couple even being aware of what was going on. Dan jumped into action and called AT&T on their behalf. Over the years Dan has built up relationships with many of the utilities’ offices – if not the individual representatives – so he knew who to call to get action. Here, Dan convinced AT&T to open a case file researching the account history. Once the facts were tracked down, AT&T agreed to a $240 credit on the combined account, and provided a reasonable repayment schedule. Most importantly the couple had their service restored.
This is but one example of what Dan and UCAN do on a daily basis. A customer that Dan helped in the past wrote in to let us know:
“Mr. Whitworth pursued my case with tenacity, honesty and effectiveness. . . . I cannot say enough about the way UCAN and Mr. Whitworth professionally handled my case and I know that I could not have done it alone.”
Not all calls require such doggedness but we do not rest until relief is obtained. Dan and UCAN are just a phone call or email away; you may also submit an online request at: http://www.ucan.org/submit-request/. You need not go it alone – together we’ll overcome it all – UCAN, We Can!
REPRESENTING RATEPAYERS AT THE CPUC
For over 35 years UCAN has consistently challenged SDG&E to justify their revenue requests, effectively contributing to millions in ratepayer savings. We’re not shy about sharing the big wins for ratepayers that we’ve been part of. It’s also important to know that at any given time we’re active in a dozen or so smaller cases, chipping away doggedly at proposed increases and defeating bloated or unfair proposals.
When new state environmental targets are signed into law, the CPUC plays a leading role in implementing by ordering utilities to submit proposals that support reaching these goals. UCAN knows that such “mandates” can be used as an excuse for bloated proposals. In particular, Transportation Electrification (TE) is front and center, with applications already approved and several more in process. While UCAN wants California to achieve its clean air and energy goals, SDG&E rates are already among the highest in America, so we understand every new proposal must be evaluated for reasonableness. Our role is not to stand in the way of this progress, but to ensure that ratepayers benefit from and do not bear an unfair portion of the costs for SDG&E’s TE programs.
Routinely, the utilities have asked permission to charge residential customers to subsidize other categories of customers. Each time UCAN asks the Commission to examine whether proposed TE investments will increase affordability pressures on San Diego ratepayers beyond reason. For example, in the EV-HP proceeding – discussed below – UCAN argued it was unfair that costs of the preferential commercial rates would be recovered from residential ratepayers. SDG&E subsequently revised its application to recover costs strictly from commercial customers.
Jane Krikorian, UCAN’s CPUC Regulatory Program Manager leads our efforts to support California and the Commission’s strategies, policies, and proposals to reduce greenhouse gas emissions and promote TE. Below are highlights from Jane’s ongoing cases.
Transportation Electrification Framework (R.18-12-006 implements Senate Bill 350 that requires California’s investor owned utilities – IOUs – support the widespread adoption of TE under the oversight of the CPUC.)
The CPUC directed the Energy Division (a part of the CPUC that provides expert analyses) to create a framework to better coordinate the multiple TE programs in California. The Energy Division’s draft TE Framework (TEF) offered an overall strategy for addressing how the IOUs will support the State’s clean transportation and climate goals. UCAN has been involved in this proceeding since February 2019 offering comments and recommendations to the Energy Division as a final TEF is developed.
Electric Vehicle High Power Charging Rate (EV-HP)(In R.19-07-006 the CPUC is considering whether to approve a special charging rate for commercial EV charging operators.)
One thing essential to widespread adoption of Electric Vehicles (EV) – both passenger and commercial – is charging infrastructure. So far most chargers in use are too slow for mid-trip “refueling,” not to mention geographical gaps. The EV-HP Charging Rate addresses this by providing preferential rates for those who invest in the high-power charging infrastructure we need to meet our environmental goals. A familiar example is charging stations for passenger EVs in parking lots. The industry needs to build out much faster, more powerful, “Level 3” chargers (e.g., “Direct Current Fast Chargers”).
The other part of the plan applies to charging infrastructure for a wide range of “medium-duty and heavy-duty” (MD/HD) commercial equipment: forklifts, truck stop electrification, transport refrigeration units, port cargo trucks, transit buses, school buses, airport ground support equipment, and medium-duty vehicles/heavy-duty vehicles and Class 2 through Class 8 on-road vehicles. In many cases these MD/HD vehicles run on diesel today, a carbon-emitter that also emits particulates bad for the lungs.
A Decision in this proceeding is expected by the end of the year.
Power Your Drive 2.0 (A.19-10-012, filed in October 2019 by SDG&E, asked the Commission to authorize a $58.4 million budget to modify and extend its original Power Your Drive – PYD – Pilot program.)
The original PYD Pilot program was approved by the Commission in February 2016 (D.16-01-045) authorizing a $45 million start up budget to deploy 3,000 EV charging stations at a minimum of 300 sites over three years. In this present application, SDG&E wishes to install 2,000 more EV charging stations at 200 sites over two years. UCAN has been involved in this proceeding since January of 2020. In May 2020, we filed expert testimony explaining why this program needs to be modified to minimize costs and maximize benefits on behalf of San Diego ratepayers who would be paying for this program.
Beyond Transportation Electrification, UCAN intervenes in other important cases such as the one spotlighted below.
Better Rules and Policy to Reduce Residential Disconnections (R.18-07-005, is designed to reduce residential disconnections and to improve reconnection processes.)
The CPUC wants a comprehensive set of policies and rules that will reduce residential gas and electric service disconnections for nonpayment. Access to electric and gas service is a necessity for economic and social stability and well-being. Even with an overdue balance paid off, the reconnection process – particularly for gas service – can be time-consuming and costly, with few governing rules. Unfortunately, the rate of customer disconnections has only risen since the Commission issued its last Decision.
Many customer protections UCAN advocated were incorporated into the Phase I Decision. We successfully championed: capping disconnections based on (lower) 2017 levels; extending the extreme weather conditions look-ahead from 24 to 72 hours (disconnections are paused when weather threatens); and expanding the definition of “vulnerable customers” to include any household on medical baseline or life support, as well as customers age 65+.
Our position also addressed Decision provisions such as: requiring the large IOUs to enroll eligible customers in all applicable assistance programs; requiring the IOUs to offer 12-month repayment plans; and prohibiting disconnections if there is a Low Income Home Energy Assistance Program (LIHEAP) pledge in place. This Decision prohibits IOUs from requiring a deposit to establish or reconnect service, as deposits can make it harder for households to meet other financial obligations. Utilities may not charge reconnection fees, either. IOUs must improve their disconnection notices so that customers can better prepare, and they must provide information about available assistance programs. With affordability of monthly utility bills tighter than ever, this Decision creates a separate rate-setting phase of the proceeding to evaluate the “percentage of income payment plan” (PIPP), originally set forth in the Proposed Decision. Finally, this Decision mandates the creation of an enforcement program to ensure that the IOUs are complying with its requirements.
EDUCATING CONSUMERS. ARREARAGE & CITY OF SD UTILITY FRANCHISE
In June the CPUC issued Decision 20-06-030, requiring California’s major energy utilities to establish an Arrearage Management Plan (“AMP”) for customers whose unpaid bills exceed $500. The Decision is a big win for customers struggling due to the pandemic!
UCAN strongly supported these AMPs and was an active party in all phases of proceedings. SDG&E’s proposed AMP will allow qualified customers (over $500 in arrears) to pay only what is due on their current and future utility bills. SDG&E will also inform customers about the availability of customer assistance programs, such as CARE, that provide discounts for low-to-moderate income customers. As long as a customer enrolled in an AMP remains current on their account, one-twelfth of the overdue balance would be forgiven each month, so the debt could be wiped out completely at the end of a year.
UCAN believes this will offer much-needed “breathing room” to SDG&E customers who have undergone financial hardship but are now turning the corner toward recovery. Forgiveness of past-due bills should lessen the obstacles for such households to get back on their feet.
SDG&E is required to establish its AMP by the end of 2020. Due to COVID, they have a moratorium on disconnections for unpaid bills, scheduled to end in April, 2021. SDG&E says they will be launch their AMP program sometime this November, so it should be in place well before the shutoffs moratorium ends.
Franchise Fee
The City of San Diego’s 50-year franchise fee agreement with SDG&E comes up for renegotiation in January, 2021. The fee SDG&E pays is for rights of way (ROWs) to install and maintain power and gas delivery infrastructure (poles, pipelines, etc.) on City property.
Recent developments, however, bode poorly for a timely new agreement. City Council and the Mayor have failed to achieve a consensus on what the agreement has to include. City Council knows that residents are dissatisfied today with SDG&E’s high rates and poor service; they just can’t agree on what they want going forward.
Under its Charter, the City must solicit competitive bids for the franchise; an Invitation to Bid (ITB) kicks things off by defining what, specifically, the City wants from the providers. The Mayor’s office prepared one that was shot down in August by City Council. Practically speaking, this means the Mayor must issue an ITB with his best guess at what will get the 2/3 Council vote required to approve the solicitation’s winner. By January.
As a consumer advocate, UCAN welcomes more options for utility customers. But there are “unknowns” regarding any future franchise and franchise models that accompany the various scenarios. UCAN’s experience tells us that consumer protections must be explicit, with definitive accountability for any enterprise delivering energy. Our concerns range from the duration of the new agreement to specific mechanisms that address reasonable rates and ensure safe and green energy outcomes. Considerations of “municipalization” are not without risk; the City already fails to meet adequate customer service standards in operating its Water Department, so UCAN would be skeptical about the City running a new power department! Moreover, given the impending launch of San Diego Community Power (SDCP), it is not even clear how a municipal utility would engage with a Community Choice Entity like SDCP.
THANK YOU TO OUR INCREDIBLE SUPPORTERS!
We hope this information was of interest to you. Please visit http://www.ucan.org/for more information on UCAN’s work and current consumer topics.
Over the past 35 years, UCAN has been blessed with thousands of supporters and donors. Their contributions, large or small, have made a difference in our work to educate, represent, and advocate for the consumer. This December 1, 2020, UCAN will participate in “Giving Tuesday,” which the originators define as “a global generosity movement unleashing the power of people and organizations to transform their communities and the world.” It’s not just about money: every act of generosity counts and everyone has something to give. We encourage you to look for UCAN’s participation, particularly on social media.
If you like what you’ve seen and read, please go to http://www.ucan.org/support-ucan/ and contribute any amount you can. And please tell a friend about us!
UCAN, We Can!