Order Instituting Rulemaking (OIR): Customer Electric & Natural Gas Service Disconnection Issues OIR Update Low Income Oversight Board Meeting September 22, 2010

2 OIR Purpose To continue Commission efforts to reduce the number of gas and electric utility service disconnections due to nonpayment by improving customer notification and education. -- OIR issued 2/5/2010

September 22, OIR Actions Provided Interim Relief to Customers Inform customers asking about payment plans that the customer has at least 3 months to pay back arrearage. Eliminate additional deposits for the purpose of reestablishing credit Set out Scope of Proceeding Interim practices Best practices Tailoring scripts and automated calls Reporting requirements Benchmarks for disconnections Required IOUs to Seek ARRA Funding Required Interim Reporting Requirements

September 22, OIR Phase I Process April 2, 2010 — OIR Reply Comments April 2010 — Resolutions adopted approving transfer of CARE funds to TANF/ARRA program April 2010 – Data request submitted by ALJ and IOU responses received May 2010 – Application submitted by CA to US DHHS for matching ARRA funds June 2010 — Proposed decision issued July 2010 — Decision approved 5-0 by Commission

September 22, OIR Decision Phase I Requires IOUs’ CSRs to inform customers with overdue bills that three-month payment plans are available. Gives CSRs the discretion to extend the payment period. Eliminates re-establishment credit deposits due to disconnection for CARE and FERA households. Bans IOUs from collecting re- establishment deposits as a result of late payment of bills. Requires IOUs to provide an automatic payment plan to allow new or reconnecting customers a payment option in lieu of a cash credit deposit. Prohibits IOUs from disconnecting medical baseline or life support customers without an in-person visit from a utility representative. Requires IOUs to allow for in-person payment collection for these customers. Requires IOUs to submit draft uniform disconnection process by October 1, 2010.

September 22, OIR Phase II Process August 26, 2010 — ALJ Ruling Issued seeking comments re: a) Individual billing dates, b) Defining “sensitive customers”, c) Exceptions to deposit rules. September 2010 – All-party meeting to discuss pilot re educating and assisting customers. September 15, 2010 – Responses to ALJ ruling submitted. October 1, 2010 – Uniform Disconnection Procedures submitted by IOUs. November 2010 — Proposed Phase II Decision mailed. December 2010 – Proposed Decision on Commission calendar for vote.