Disconnections Proceeding – Arrearage Management Plan Advice Letter

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On July 20, 2018, the CPUC issued Rulemaking (R.) 18-07-005 to implement the requirements of SB 598 in order to address disconnection rates across California’s electric IOUs by adopting policies and rules that reduce disconnections and improve reconnections processes and outcomes for disconnected customers. As part of the Rulemaking, on June 16, 2020, the CPUC issued another decision adopting rules designed to reduce the number of residential customer disconnections.

Decision (D.) 20-06-003 (the Decision) ordered IOUs to submit Advice Letters within 90 days of the effective date to establish an Arrearage Management Plan (AMP). The Decision requires that AMP be designed to forgive 1/12 of a customer’s total arrearage each month in exchange for the customer making on-time payments on their current bill. The customer would effectively have all arrears forgiven after one year of on-time payments. Additionally, the Decision requires that the IOUs discuss the implementation and cost recovery plan with its CCAs.

To qualify for the AMP program, customers must be enrolled in CARE or FERA, have a total of $500 or more in arrears that are at least 90 days old and have been a customer for at least six months. While enrolled in AMP, customers are protected from disconnection even after COVID-related disconnection protections in place have expired.

On September 28, CalCCA filed a protest against SCE’s advice letter asking for clarification related to cost recovery to the CCAs and timing of a CCA’s intent to participate in the AMP program. Meantime, CalChoice and other CCAs in SCE territory had a preliminary meeting September 28 to begin discussing the mechanics of cost recovery to the CCAs and other pertinent details regarding implementation and operation of the AMP program.

Next Steps

CalChoice will continue to participate in the proceeding and work collaboratively with SCE to implement a program and process that reduces customer disconnections and recovers what might otherwise be uncollectible debt for CCAs.