CPUC orders utilities to develop pilot program for community-based organizations to help with consumer bills

In one of its latest decisions, the California Public Utilities Commission (CPUC) ordered utilities to create a pilot program designed to push community-based organizations (CBOs) to help consumers with utility bills.

“We know that case management by trusted CBO partners helps customers with high amounts of arrearages, or otherwise at risk of disconnection, keep their lights and other essential utilities powered,” Darcie Houck, the commissioner assigned to the proceeding, said. “The COVID-19 pandemic has changed all of our lives. Two years later, as we start to emerge from the pandemic, we know that long-term efforts will be necessary for recovery. Today’s Decision emphasizes the importance of stakeholder coordination and input for the creation of a successful proposal of the CBO pilot, and we will continue to work through these issues in the disconnections proceeding.”

Utilities will be required to develop a CBO Case Management Pilot Program proposal for California communities hardest hit by electric bills during the first year of the COVID-19 pandemic, relative to their available resources. Approximately 12,000 customers who would otherwise remain locked in debt even after statewide relief is distributed will benefit from this. Those funds will be distributed to customer accounts by the end of March 2022.

In the meantime, CPUC has also created a CBO Pilot Working Group to manage the development of the pilot proposal. This will include the selection of the CBOs in targeted communities. However, Pacific Gas and Electric Company (PG&E) will convene that group and require representatives from advocacy groups, oversight boards, and CBOs to staff it. The working group will be in charge of creating a budget, payment structure, and means of evaluating the pilot program.

Communities that stand to benefit from this are those where electricity is most unaffordable and where customers are at the highest risk of disconnection under existing, investor-owned utility disconnection policies. Under current state law, utilities are prohibited from disconnecting customers for 90 days after being given debt relief from the California Arrearage Payment Program.