2014 EAP Consumer Services Conference

Mary Beth O’Hara OsborneDirector of Regulatory Affairs

Sept. 17, 2014

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About the PUC

$68 + million budget for the 2014-15 FY

Funded by assessments on utilities, not PA tax dollars; however some federal funding reimbursements do exist

Regulates nearly 8,000 entities

Created by General Assembly in 1937

Duties given by statute – Public Utility Code, Title 66, Pa. Consolidated Statutes

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Our Office Locations

We have about 500 employees at the PUC, who are based in Harrisburg, but have regional offices in Philadelphia, Pittsburgh and Scranton

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Purpose of PUC

Original Purpose: to protect consumers from monopolies Imposing unreasonably high rates, or Providing inadequate service Safety was and is of primary importance

Changes in the laws over the last nearly 20 years have placed PUC in the role of overseeing competition in marketplace

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PUC Organizational Chart (prior to November 2013)

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PUC Organizational Chart (current)

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Office of Competitive Market Oversight

The Office of Competitive Market Oversight (OCMO) has recently become a Bureau

within the Executive Director’s Office

OCMO is headed by Kirk House and Dan Mumford

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Director of Regulatory Affairs

The Director of Regulatory Affairs Oversees 262 positions in the following Bureaus:

Technical Utility Services Bureau of Audits Bureau of Consumer Services Office of Administrative Law Judge Office of Special Assistants

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Technical Utility Services

Serves as the principal technical advisory bureau regarding fixed utility and transportation regulatory matters

Advises on technical issues for electric, natural gas, water/wastewater and telecommunications

Offers policy recommendations on rates, tariffs, regulatory matters, applications processes and emergency operations

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Bureau of Audits

Performs financial, management, operational and specialized audits of regulated utility companies

Reviews adjustment clause rate filings and 1307(e) reconciliation statements

Provides recommendations to refund over-collected costs and to improve accounting and operational procedures to save utilities, consumer money

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Bureau of Consumer Services

Responds to and investigates informal complaints from residential and small commercial customers made against regulated utility companies and, in some instances, electric and gas supply companies

Serves as intermediary between utilities and consumers to:▪ Resolve complaints▪ Develop payment arrangements▪ Provide utility-related information▪ Monitor utility compliance with PUC regulations

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Office of Administrative Law Judge

Fulfills a judicial role by hearing cases, mediating cases through alternative dispute resolution process and issuing decisions

Provides fair and prompt resolution of contested proceedings, including consumer complaints, rate filings, investigations, billing disputes and applications

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Office of Special Assistants

Serves as an advisory support bureau

Provides legal and technical advice primarily regarding challenges to ALJ decisions and policy issues

Drafts opinions and orders for consideration at Public Meetings disposing of Exceptions filed in response to OALJ decisions and also, pursuant to motions adopted at Public Meeting

Reviews petitions for relief

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Goals & Priorities

Strategic Planning▪ Succession planning

Management Structure▪ Streamlining/Efficiencies▪ Reducing caseload in a timely manner without

sacrificing quality work

Aligning Goals and Objectives▪ Facilitating collaboration and communication between

and among Bureaus and Offices to handle work well

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Challenges Managing the increased workload of Bureau of Consumer

Services, Secretary’s Bureau, Office of Administrative Law Judge and potentially Office of Special Assistants, with budget challenges

▪ Causes of Workload Increase▪ Polar Vortex▪Variable Rates

▪ Budget Challenges▪Operating under zero growth budget and a projected

shortfall due to increased labor costs, federal funding reimbursements which are flat-lined at decades-old levels

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Variable Rates Issues Winter 2014▪ Higher prices in wholesale market = higher prices for customers with

variable-rate contracts (uplift charges) with competitive suppliers and fixed-rate customers whose contracts expired

▪ This led to significantly higher call and intake volume (30% - 40%).

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Variable Rates Issues, cont. Case and Call Volume

▪ In 2014 (through 9/16/2014) BCS has taken in 65,000 cases to investigate as compared with 70,410 for the entire year of 2013.

▪ Of these 65,000 cases, close to 10,000 have been variable rate, supplier, or general competition and contract related as compared with approximately 2,100 cases for the entire year of 2013.

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Variable Rates Issues, cont. It is hoped that cases can be resolved to the customer’s

satisfaction at the BCS and company level

To facilitate case closures, BCS is working with companies to develop an Informal Complaint Resolution Program (more on this later)

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Variable Rates Issues, cont.▪ Decisions to informal complaints are mailed to

the Complainant by BCS along with an “Intent to Appeal” form. 

▪ If the Complainant timely sends this to the Secretary, the Secretary’s  Bureau then sends out a formal complaint form, and the complainant has 20 days to file a formal complaint appealing the BCS decision.  This is a requirement of 52 Pa. Code Section 56.172.

▪ In FY 2013-14, the Secretary’s Bureau received 700 formal EGS-related complaints

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Case Management

For Fiscal Year 2013-14, OALJ had approximately 3,000 active cases/assignments

While ALJs make decisions based solely upon the record, the written product is subject to quality review

All Initial Decisions and Recommended Decisions are reviewed for legal and technical sufficiency before issuance

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Case Management, cont.

Decisions are then served by the Secretary’s Bureau on all parties of record

Internal and statutory deadlines control the timing of many decisions by an ALJ

A party may challenge the ALJ’s decision by filing Exceptions, which are then handled by the OSA which prepares an Order for consideration by the Commission at Public Meeting

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“Pig in a Python”

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Informal Complaint Filed by Consumer Against Utility Company

Consumer calls BCS

BCS accepts as inquiry (no criteria for complaint, however, contact

with BCS is recorded)

BCS initiates

complaint; notifies utility

Utility response (30 days)

BCS investigator rules on complaint

Utility/ consumer

can appeal

BCS decision through formal

complaint process

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Formal Complaint Filed by Consumer Against Utility Company

Bureau of Investigation

& Enforcement intervenes in

case

Hearings are held and OALJ

issues decision

Secretary’s Bureau

assigns it to the OALJ

Secretary’s Bureau receives

filing

Exceptions are filed

with Secretary

Secretary assigns it to

Office of Special

Assistants

OSA drafts Order for

Commission to vote on at

Public Meeting

Commission adopts

OSA’s draft order

Secretary’s Bureau

issues order

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Pre-Warm Transfer Initiative/Informal Complaint Resolution

Targeted major gas/electric utilities with highest case volume, but all companies other than suppliers may participate

Upon a case being opened by BCS intake staff, the utility is notified electronically within 15-30 minutes via existing BCS Data Exchange Process

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Pre-Warm Transfer Initiative/Informal Complaint Resolution, cont.

The company contacts the complainant in an effort to resolve the issue:

▪ No restrictions. Company chooses which cases to contact

▪ When BCS has the phone and software capability to support the function, the companies may choose to transition to a warm transfer via phone rather than calling the complainant after the case opening

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Pre-Warm Transfer Initiative/Informal Complaint Resolution, cont.

BCS receives confirmation from the complainant that the matter is resolved to his/her satisfaction and BCS closes the case

Benefits to the company:▪ No utility report required, just an email or voice

mail confirmation to close the case▪ The case will not be evaluated by an investigator for

infractions, but may be randomly selected for compliance review for UCARE Report

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Pre-Warm Transfer Initiative/Informal Complaint Resolution, cont.

Methods of contact:▪ Company contacts our voice message system with the

complainant on the line and they record their resolution/satisfaction. The voice file is attached to the case and the case is closed.

▪ An email confirmation may be sent to the complainant by the company, with a copy to the BCS service account. BCS generates its own email to the consumer and closes the case. If the BCS email rejects, a letter is sent to the complainant via U.S. postal service. (Fax and snail mail also accepted)

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Pre-Warm Transfer Initiative/Informal Complaint Resolution – cont.

Benefits to BCS: Faster case resolution All processes are clerical and administrative in nature Much of this is designated for automated routing to

clerical support staff Process routes activity away from inbound telephone

traffic to lighten the load Allows BCS Policy Staff to maintain its random case

selection and evaluation to meet case analysis and UCARE reporting requirements

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Partnering with Utilities

To promote: Positive changes to customer processes Promote customer satisfaction

Goal: Satisfied resolution of complaint Customer retention

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Final Thoughts

“Look at a day when you are supremely satisfied at the end. It's not a day when you lounge around doing nothing; it's a day you've had everything to do and you've done it.”

― Margaret Thatcher

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FISH! Philosophy