Legislative Update: December 2008
TURN Wins New Consumer Rights in 2008 Legislative Session
TURN made some gains for consumers in the last legislative session and staved off some potentially harmful legislation. But there is major work left undone, particularly in resolving long-standing issues left over from the electric deregulation disaster.
Affordable and Reliable Phone Service for All
TURN brought our concerns about keeping basic service affordable and available for rural customers to the Legislature through SB 780 (Wiggins, D-Eureka). It took TURN two years to pass this bill, which assures the continuation of current basic service standards in rural areas.
In addition, SB 780 requires the California Public Utilities Commission (CPUC) to conduct a study of phone affordability. TURN has been demanding an affordability study from the CPUC for some time, but our requests have fallen on deaf ears. Thanks to the Legislature, the CPUC will have to collect information on the price and costs of basic service, and on the accessibility and utilization of phone service by income, ethnicity, age and other factors. TURN salutes Senator Wiggins for her diligence on this bill.
Several other pieces of telecommunication legislation supported by TURN will help to empower and protect phone consumers who, over TURN’s objections, have been virtually abandoned by the CPUC. Assembly Bill 2885 (De La Torre, D-South Gate) will allow CPUC enforcement of existing laws protecting consumers of pre-paid phone cards, and AB 2136 (Mendoza, D-Norwalk) expands requirements for truth-in-advertising for pre-paid phone cards. Senate Bill 1149 (Wiggins) will expand the telecommunications grant program for rural areas, and SB 1193 (Padilla, D-San Fernando Valley) will attempt to expand high-speed Internet to underserved areas.
More Green for Your Green
Many TURN members already know how to take advantage of tiered rates to conserve electricity and keep their bills low. But the utility companies have not done enough to help their customers realize the savings available through tiered rates. That should change with the passage of AB 1763 (Blakeslee, R-San Luis Obispo). This bill requires utility companies to provide understandable information to ratepayers about tiered rates. Saving a relatively small amount of electricity can result in big savings with tiered rates. Both TURN and Senator Blakeslee hope it will help customers maximize the economic and environmental advantages of tiered rates.
TURN opposed ratepayer funding for CPUC President Peevey’s Climate Change Institute in the media, at the CPUC and in the Legislature. Although our legislation to make the institute more accountable was vetoed by the Governor, our combined efforts have paid off with the CPUC agreeing to scrap the plan.
CAREing for Low-Income Customers
TURN supported, and the Governor signed, legislation that would make sure that qualified master-metered customers—particularly mobile homeowners—could receive low-income discounts under the CARE program (AB 2857, Lieber, D-Mountain View).
This bill allows residents of master-metered mobile home parks, apartment buildings or similar residential complexes to participate in the CARE program, making sure all consumers get the rates they are entitled to.
Deregulation Fallout
Due to issues left over from the deregulation disaster, TURN has been negotiating with the utilities on legislation to guarantee long-term rate stability and fair allocation of costs. Lobbyists for the energy companies held us off last year, but we expect to try again in the next session.
Proposals for the state Department of Water Resources (DWR) to renegotiate power contracts from the deregulation debacle could drive the consumer costs of that disaster even higher. TURN senior attorney Mike Florio testified early in the legislative session about a giveaway of $200 million by DWR, which moved the Assembly Committee on Utilities and Commerce to make sure ratepayers are protected in the future. Assembly Bill 3058, supported by TURN, will limit the ability of DWR to renegotiate power contracts without broader CPUC approval and input.
