BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                                 THIRD READING


          Bill No:  SB 500
          Author:   Torlakson (D)
          Amended:  1/7/02
          Vote:     21

           
           SENATE ENERGY, U.&C. COMMITTEE  :  6-0, 1/15/02 
          AYES:  Bowen, Morrow, Alarcon, Battin, Speier, Vincent


           SUBJECT  :    Utilities and cable television:  service and  
          repair

           SOURCE  :     Author


           DIGEST  :    This bill clarifies the notification  
          requirements regarding a customers right to a four-hour  
          service or delivery window.

           ANALYSIS  :    Current law requires most retailers to both  
          offer and provide customers with a four-hour window during  
          which repairs or deliveries will be made.

          Current law does not apply this same standard to utility  
          and cable television companies.  Those entities can choose  
          to tell customers about the four-hour window either when  
          customers call (as most retailers are required to do) or by  
          mailing such information to their subscribers or ratepayers  
          three times a year.  Utility and cable television companies  
          are required to provide a four-hour delivery or service  
          window to customers upon request.

          This bill deletes the option for utilities and cable  
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          television companies to mail customers a notification of  
          the right to a four-hour window.  These companies will,  
          therefore, have to tell customers of their right to a  
          four-hour window when the customer calls for service.

           Background

           SB 101 (Lockyer), Chapter 1075, Statutes of 1989, SB 101  
          (Lockyer) of 1992, and SB 47 (Lockyer), Chapter 28,  
          Statutes of 1993, combined to generally require that  
          customers be given a four-hour window to expect repairmen  
          to show up or deliveries to be made.  If the company misses  
          the appointment, the customer may go to small claims court  
          and sue for lost wages, expenses actually incurred, or  
          other actual damages not exceeding $500.  Unforeseen or  
          unavoidable events beyond the control of the company are  
          valid reasons for missing the appointment, provided a  
          diligent attempt is made to notify the customer beforehand  
          and a new two-hour window is arranged.

          Current law exempts cable television companies and  
          utilities (electric, natural gas, water, and  
          telecommunication companies) from the general provision  
          requiring retailers to offer and provide a four-hour  
          window.  These companies have to provide the four-hour  
          window, but they can choose to offer it verbally when the  
          customer calls for service or by mail three times per year.

          Pacific Bell has been required by the California Public  
          Utilities Commission, as part of the resolution of a  
          complaint, to modify its "611" repair service to alert  
          customers that four-hour windows are available.

           Comments
           
          This bill does not establish a cable or utility customer's  
          right to a four-hour window for service appointments - that  
          right already exists in current law.  This bill simply  
          requires these companies to provide the notice to customers  
          when they call in to establish service or request repairs  
          and deletes the option that utilities currently have to  
          notify customers solely via a mailing or a bill insert.

          One shortcoming with the current mail or bill insert  







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          notification requirement is only existing customers are  
          notified.  A new customer would not know that he or she has  
          the right to a four-hour window.  This bill corrects that  
          problem.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  1/17/02)

          Attorney General Bill Lockyer
          Consumers Union
          American Federation of State, County and State Employees,  
          AFL-CIO
          The Utility Reform Network (TURN)
          Utility Consumers Action Network (UCAN)
          Office of Ratepayers Advocate of the PUC



          NC:cm  1/17/02   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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