CONSUMER PROTECTIONS AND SERVICE QUALITY March 14, 2011

Consumer Protections:  Low-Income assistance programs that promote universal service.  Regulations governing metering, billing, payment, termination, and winter termination.  Regulations providing for a dispute process, at the utility level and with the PUC (due process).  Regulations and reporting requirements governing quality of service. 2

Universal Service:  Programs and policies to promote the goal of universal utility service.  Making utility service affordable and available for all.  PUC obligated to protect public health and safety.  Combination of federal, state and utility programs.  Controlling the costs of these programs as to limit the price impact on all consumers and taxpayers. 3

LIHEAP:  Low Income Heating Energy Assistance Program.  Federal money, federal taxes.  Distributed by the state.  Low income customers must apply at local assistance office or at utility.  Cash grants in the winter (state usually sends money directly to the utility on the customer’s behalf). 4

CAP: Customer Assistance Programs:  Electric and gas utilities are required to offer discounted rates to low-income customers.  Percent of low-income customers (at or below 150% of the federal poverty level): ELECTRIC: 23% GAS: 26% 5

LIURP: Low Income Usage Reduction Program:  Utility will audit the low-income customer’s residence and determine if “weatherization” measures are appropriate.  Weatherization can include: insulation, energy-efficient lighting, new appliances, (furnaces, water heaters, refrigerators).  Customers receive education on energy conservation and usage reduction.  Energy savings of 5 – 17%. 6

Utility Cost Recovery:  Utilities recover the costs of CAP and LIURP universal assistance programs through rates charged to all residential customers.  Usually done in base-rate proceedings or separate rate riders. 7

Utility Cost Recovery: 8 RECOVERABLE CAP COSTS INCLUDE:  Administrative costs: (Percent of total CAP costs: electric 4%, gas 3%).  CAP credits (the difference between the discounted CAP rate and the standard tariff rate): (Percent of total CAP costs: electric 72%, gas 88%).  Arrearage forgiveness: (Percent of total CAP costs: electric 24%, gas 9%). Average annual cost per residential customer (2009):  ELECTRIC: $  GAS: $ 84.68

Report on Universal Service Programs & Collections Performance. 9

 eports/publications_reports_yearly.aspx eports/publications_reports_yearly.aspx  Utilities are required to report to the PUC annually. This data is then presented to the public in this report.  Includes: number of customers, customers in debt, how much money in debt, average debt, write-offs, number of accounts terminated, universal programs availability and enrollment, costs of universal service programs. 10

Residential Service Regulations.  52 Pa. Code Chapter 56  r56/chap56toc.html r56/chap56toc.html  Apply to electric, gas and water utilities and competitive electric and gas suppliers. Includes:  Billing and payment.  Credit and deposits.  Termination of service.  Customer disputes.  Transfer of service. 11

Residential Service Regulations: 12 TERMINATION OF SERVICE FOR NONPAYMENT:  10-day written notice.  Attempt to personally contact customer.  Medical emergency protections.  Customer can dispute termination.  Low-income customers cannot have service terminated in the winter (December – March). TERMINATIONS (2009):  Electric: 175,559 (out of 4,879,111 total customers)  Gas: 128,363 (out of 2,507,145 total customers)

Residential Service Regulations: 13 WINTER SURVEY:  Every autumn (October – November), utilities are to contact customers whose service was previously terminated and not restored. They attempt to deal with the customer to work out something (payment and assistance) to get service restored.  By December 15, utilities have to report to the PUC as to how many customers are still without service.  December 2010: 19,657 without central heating.

Residential Service Regulations: 14 CONSUMER DISPUTE RIGHTS:  Consumers have the right to dispute matters directly with the utility. The utility must respond within 30 days.  If the consumer is not satisfied with the utility’s response, they can file an informal complaint against the utility with the PUC. PUC can investigate and issue a binding informal decision.  Consumer can escalate to formal complaint; request a hearing with an Administrative Law Judge.

Quality of Service Reporting: 15  Electric and natural gas utilities are required to report to the PUC annually on quality of service measures.  ELECTRIC: 52 Pa Code : 4/chap54toc.html  GAS: 52 Pa. Code – 37: 2/subchapBtoc.html

Quality of Service Reporting: 16 PERFORMANCE MEASURES:  Telephone Access (no regulatory standards) :  Busy-out rate  Call abandonment rate  Percent of calls answered within 30 seconds  Billing:  Number of meters not read in 6 months  Number of meters not read in 12 months  Disputes:  Number of disputes not responded to in 30 days.

Quality of Service Reporting: 17  Utilities are to randomly survey customers and determine their level of satisfaction with the utility’s service.  Survey includes satisfaction with call center, field visits, and overall satisfaction.  All of this data is reported to the PUC annually. The data is released to the public in a report.

reports/pdf/Quality_Of_Service_Rpt_09.pdf Customer Service Performance Report 18

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