In a surprising turnabout, CPUC, the California Public Utilities Comission has actually taken a small step toward its stated goal of protecting ratepayers* by imposing limits on SDG&E's draconian shut-off policies.

One of the many reasons that SDG&E and other California utilities are almost universally loathed by the working poor, is SDG&E's scathing and mean-spirited attitude toward customers who have fallen on hard times. 

Until yesterday, if you faced electric shut off from SDG&E, the utility would double the amount of your highest energy bill in the last 12 months. Then they add the past due amount you currently owe, and demand the entire sum as a "credit deposit" before turning the power back on.

In yesterday's San Diego Union Tribune, Mindy Spat of TURN, The Utility Reform Network, describes the old policy as "kicking them while they were down."

Ms. Spatt's characterization is charitable.  The reality is that it is more akin to stomping them when they are down, or more accurately, holding their heads under water until they drown. Over the last 25 years UCAN has repeatedly protested this policy, and now, finally, CPUC has actually done something about it.

According to an official summary of the new rules, SDG&E can not demand new credit deposits equal to twice the amount of the highest monthly bill when a customer is late on a bill. Now, SDG&E can ask for a maximum credit deposit equal to twice the average amount of the ratepayer's average bill over the previous 12 months - and it can only be demanded when the utility is reestablishing service after a disconnection. Further, SDG&E must offer a payment program for new accounts or ratepayers who have fallen behind, rather than demanding a cash deposit before turning the power back on.

CPUC justified its decision based on current economic conditions. It said that as the economic crisis in California deepens, the new policy will help reduce natural gas and electric disconnections.  You can read the full decision here.

It's about time.

* The California Public Utilities Commission (CPUC) was chartered to protect consumers from utility abuse. You can read their mission statement HERE. New evidence shows that for the last several years CPUC has ignored consumer complaints, claiming erroneously, that "competition" has increased the quality of utility services - especially phone services.  UCAN was formed in 1984 to protect consumers from utility abuse. Unlike CPUC, or any other regional consumer group, we aggressively intervene on behalf of consumers who have been deceived, defrauded, or mistreated by SDG&E or a phone company doing business in the State of California.  If you have a gripe with SDG&E or your telephone company, COMPLAIN TO UCAN. We'll listen. And if you like what we do, please join us. UCAN is a member-supported not-for-profit.