SJ Mercury News – New rules make it harder for PG&E to shut off service

San Jose Mercury News
By Dana Hull

Faced with a burgeoning number of Californians struggling to pay their power bills, the Public Utilities Commission voted Thursday to crack down on utilities, making it harder for them to shut off gas and electric service to customers.

On average, nearly 70,000 households in the state have their utility service disconnected every month, while tens of thousands more get warning notices. The number of customers denied service has risen sharply in recent years because of the recession and high unemployment rates.

PG&E, which serves 5.3 million residential customers from Bakersfield to the Oregon border, shut off service to more than 272,000 customers in 2009, up from 185,000 in 2006. And getting the power turned back on is a major expense for consumers because utilities often demand additional deposits or fees that in most cases are twice the customer’s highest monthly bill.

Thursday’s unanimous decision bars utilities from demanding additional deposits from low-income customers and requires them to inform customers behind on bills that they have a right to arrange payment plans.

For customers who have been disconnected but don’t qualify for low-income programs, the ruling reduces the maximum deposit required to reconnect service to twice the average monthly bill, instead of twice the maximum bill. That’s a significant difference, as utility bills often spike in the hot summer months.

Consumer advocates applauded the ruling, praising state regulators for ordering utilities to do more to keep the lights on. A PG&E spokeswoman declined to specify the utility’s objections to it, but said it was already implementing some of the new regulations.

“Payment plans, smaller deposits and waiving deposits are all things the utilities can do to help customers through hard times,” said Mark Toney, executive director of the consumer advocacy group TURN, The Utility Reform Network.

Burlingame resident Sean Perkins says he was asked by PG&E to make a $470 deposit simply because he was chronically late in paying his bills.

“I am living on unemployment insurance checks,” Perkins wrote in a letter of complaint to PG&E in December. “This limits my capital to pay you this unfair deposit!”

PG&E is prohibited from commenting on individual customer accounts because of privacy concerns, but acknowledged that it can require additional deposits on chronically delinquent accounts.

The San Francisco-based utility urges customers who are falling behind on payments to talk to PG&E directly about their financial struggles instead of ignoring shut-off notices. Many families may qualify for assistance like the CARE program, which gives a monthly discount on energy bills for low income households.

“We understand that these are difficult financial times,” said PG&E spokeswoman Nicole Liebelt. “Disconnection of service is really a last resort. We can help you, but you have to contact us.”

Consumer groups said shutting off power affects struggling families in multiple ways.

“There are a lot of families in California who decide each month whether to pay a bill or buy food,” said Stephanie Chen, legal counsel for The Greenlining Institute, a Berkeley-based nonprofit group that works for racial and economic justice. “And when your power is shut off and you can’t afford to get it turned back on, there’s a ripple effect. How much food spoils in the refrigerator? How much homework doesn’t get done? How can you take a hot shower for the job interview?”

The PUC ruling was designed to head off a spike in shut-offs before the coming winter months and affects customers of PG&E, Southern California Edison, San Diego Gas and Electric and Southern California Gas.

Customers dependent on medical life-support equipment while at home or who have special heating and cooling needs will not be disconnected without an in-person visit from a utility representative.

“This decision represents another step toward ensuring California households keep their gas and electric services on during the continuing economic downturn,” said Commissioner Dian Gruenich. “The actions we take today address the needs of those who are financially limited while keeping costs down for other ratepayers.”