Resolution E-5114: Arrearage Management Plan (AMP) Program

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On June 16, 2020, the CPUC issued Decision (D.) 20-06-003 (the Decision), which was designed to reduce the number of residential disconnections, and ordered IOUs to submit Advice Letters within 90 days of the effective date to establish an Arrearage Management Plan (AMP). The Decision requires that the 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 which 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 disconnection protections in place related to COVID have expired.

On December 18, 2020, the CPUC approved Resolution E-5114 (the Resolution) approving the AMP program and cost recovery for the arrearages through the electric Public Purpose Program (PPP) Charge, which is paid for by all customers, including utility and CCA customers.

The AMP Program approved by the Resolution essentially forgives past due arrearages for participants in the program. Customers will be entitled to arrearage forgiveness equal to 1/12 of their beginning arrearage balance for every on-time payment of a current monthly bill up to a maximum of $8,000 over 12 months of payments.

The Resolution authorizes the utilities to record costs and recover those costs through the PPP Charge during an annual true-up process. Additionally, the Resolution requires that the utilities make remittance payments to each CCA with customers enrolled in AMP to compensate CCAs for the cost of forgiven arrearages owed to the CCA by their unbundled customers.

CalChoice staff met with SCE staff several times to coordinate marketing and outreach to customers and ensure CCA customers were treated equitability, as well as to ensure that CCAs received timely remittance of forgiven arrearage amounts.

Next Steps

CalChoice will continue to work collaboratively with SCE and work with its members to implement the program thereby reducing CCA customer disconnections and ensuring recovery what might otherwise be uncollectible debt for CCAs.