HomeMy WebLinkAbout12- City Administrator CITY OF SAN BERN RDINO REQUEST I jR COUNCIL ACTION
From:
FRED WILSON Subject: Opposition to PUC application
Assistant Cit y Administrator
. by Southern California Gas Company
Dept:
Date:
March 29 , 1993
-
Synopsis of Previous Council action:
3/14/93 -- Ways and Means Committee recommend Mayor send letter
to the Public Utilities Commission opposing rate
increase by Gas Co.
Recommended motion:
That the attached letter be sent by Mayor Holcomb stating City' s
Opposition to a proposed rate increase by Southern California
Gas Company in their application to the Public Utilities
Commission.
Signature
Contact person: Fred Wilson Phone: 5122
Supporting data attached: yes Ward:
FUNDING REQUIREMENTS: Amount:
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
75-0262 Agenda Item No.
CITY OF SAN BERN. -RDINO - REQUEST Kill COUNCIL ACTION
STAFF REPORT
At their March 17, 1993 meeting, the Ways and Means Committee
recommended a letter be sent by Mayor Holcomb to the Public
Utilities Commission opposing the application of Southern
California Gas Company for a rate increase while, at the same time,
consolidating the company and eliminating services.
They are proposing cutbacks such as the elimination of local
dispatchers in times of emergencies which, in our opinion, will
threaten the safety our community. It is for this reason and
others as outlined in their proposal, that staff recommends your
approval of sending the attached letter from Mayor Holcomb opposing
their application to the PUC.
75-0264
QERNARp�tip
OC I T Y O F
an bernardino
D IN
O F F I C E O F T H E M A Y O R
W R B 0 B H 0 L C 0 M B
M A Y O R
March 30, 1993
Daniel Fessler
California Public Utilities
505 Van Ness Avenue
San Francisco, CA 94102
RE: So. Cal Gas Company's Elimination of Services and Rate
Increases
As Mayor of San Bernardino, I am writing to oppose the Southern
California Gas Company's proposal to consolidate the company and
eliminate services, while increasing rates.
The City is especially concerned about the Gas Company's soft close
policy, and the elimination of local dispatchers in times of
emergencies. These cutbacks threaten the safety of our communities
by leaving the gas turned on in vacant structures and eliminating
dispatchers who direct service people to local areas in times of
emergencies, such as earthquakes. Situations such as these will
force our Fire Department and other emergency response teams to
deal with buildings in which they are unsure as to whether or not
the gas has been terminated. This, as well as the threat of
explosions and carbon monoxide coming from vacant buildings are
hazardous situations which need not exist.
In addition to these cutbacks, the Gas Company is proposing rate
increases for residential and some business customers as well as
increasing the service establishment fee from $5.00 to $35.00.
PRIDE
IN PROGRESS
3 0 0 N O R T H ' D ' S T R E E T . S A N 8 E R N A R D I N 0
C A L I F 0 R N I A 9 2 4 1 8 - 0 0 0 1 7 1 4 / 3 6 4 - 5 1 3 3
I therefore, urge you, for the safety and welfare of our city to
oppose the Southern California Gas Company's proposal to
consolidate and eliminate services while increasing rates.
Sincerely,
W. R. Holcomb
Mayor
cc: Sarah Bradshaw, Save Our Services
City Administrator
r , I'IHM YJ1 73 1f L U.W.U.M. ••-
3/1/93
Dear Mayor and City Council Members,
This a plea for your immediate attention, support,
endorsement, attendance, and whatever it is that you feel is an
appropriate response to the Southern California Gas Company's plans
to hike rates and cut services. All of your constituents will be
affected, yourself included. Seniors groups, minority and women's
organizations, consumer rights advocates, environmentalists,
unions, city and county governments as well as gas customers are
banding together to fight gas company proposals.
As the gas company shifts its focus from servicing residents
to transporting gas for private aggregators, franchise fees to the
cities are lost. Cities will be again burdened as the poorer
segment of your population starts calling the fire department when
they can no longer afford gas company service fees. We also fear
that emergency response teams are going to be running into to
buildings unsure as to whether or not the gas has been terminated.
Public Utility Commission hearings will be held throughout
SoCal March 8-18 and we need your help. The P.U.C. is the state
regulator of utilities, it alone has approval over rate hikes and
policy changes. The S.O.S. coalition has already blocked 35 branch
closings but the degradation of service continues while consumer
costs skyrocket. I have enclosed a fact sheet, P.U.C. hearing
dates as well as a list of endorsements to date.
Please advise.
Thank you,
Sarah adshaw
Campaign Director
213-380-9274
S.O.S.
CO.`w WMON
Members and Allies
(as of KA.-Ch If 1993)
Assembly Committee on Utilities and Commerce, Gwen Moore, Chair
California State Senate Committee on Energy and Public Utilities,
Herschel Rosenthal
Past President L.A. Board of Education, Jackie Goldberg
L.A. City Councilmember Michael Woo, 13th District
CA Assemblymember Richard Polanco, 45th District
CA State Senator Gary Hart, 18th District
Candidate for the 13th District of LA, Conrado Terrazas
State Assemblymember Jack O'Connell, 35th District
Mayor Judy Abdo, City of Santa Monica
Santa Barbara County Supervisor Tom Rogers
City of Delano City Council
Former Deputy Mayor of Los Angeles, Richard Alarcon
Cesar Chavez, President United Farm Workers
Morris Kight, Commissioner, County of Los Angeles,
Commission on Human Relations
Helen Hernandez, Board Member, National Council of La Raza
Don Cannon, National Organization for Women, National Board Member
Dolores Huerta, Vice-President emeritus, United Farm Workers
Bill Robertson, County Federation of Labor Exec. , Secretary/Treasurer
Katherine Spillar, National Coordinator, Fund for the Feminist Majority
Steve Barr, Founder, Rock the Vote
Michael Weinstein, AIDS Foundation Hospice
National Organization of Women (NOW) , California State Board
Tri-Counties Central Labor Council (Santa Barbara/Ventura/San Luis Obispo)
Utility Workers Local 483
International Wages for Housework
Southern California Council of Communications Workers of America
California Coalition for Utility Workers
International Chemical Workers, Local 995
Coalition on Labor, Agriculture and Business
United Food and Commercial Workers (UFCW) , Local 1036
Consumer Action
International Chemical Workers Union, Local 58
54th Assembly District Caucus of the Democratic Party
International Chemical Workers Union, Local 78
Jewish Labor Committee
International Association of Machinists and Aerospace Workers, Local 2786
Grey Panthers of Los Angeles
International Chemical Workers, Local 350
Hotel Employees and Restaurant Employees, Local 11
Laborers International Union, Local 585
International Chemical Workers, Local 146
Utility Workers Union, Local 132
Communications Workers of America, Local 9000
International Chemical Workers, Local 47
hHK 661 ''J,.) 1 r 1,� w.u.n
S S.O.S. is a coalition of Southern California Gas
• • Company customers, community organizations
and elected officials fighting to stop the continued
SAVIE OUR SERVICES degradation of public gas services.
WHAT HAVEN'T YOU SEEN OR HEARD, BUT DEFINITELY SMELLS?
SOUTHERN CALIFORNIA GAS COMPANY POLICY CHANGES
On :March 8--18th, 1993 a series of open public hearings will be held
to determine the rates for Southern California Gas customers and
whether cutbacks in service will be approved by the Public
Utilities Commission, state regulator of utilities. s.o.s. has
intervened in the upcoming rate case but we need your help.
Deregulation of the gas industry has opened the door to dangerous
poliicy changes. s.o.s. fought the elosing 'of 36 branch offices that
provide full service to the poor, elderly, disabled and ethnic
communities. We won at the PUC and kept the offices open:
The PUc is now being asked by the Gas Company to allow
consolidation of the company and elimination of services to the
ratepayer without corresponding cuts in the rates. The company
wants approval to degrade service and raise rates in the following
areas:
Soft Close policy means gas is not turned off when people move
posing a threat of explosions and carbon monoxide poisoning.
In some cases new dwellers are billed for gas used during
vacancy and less expensive baseline rates are chewed up.
Due to the Soft close policy routine inspections of aPpliances
and gas plumbing traditionally done during closures and turn-
' on$ will not happen.
No more local dispatchers in times of emergencies (e.9.
earthquake) to direct service people to proper local
locations.
change in the rate structure so that residential customer
rates jump up.
» gig business consumers get preferential service over
residential and small business customers.
Increase in the service establishment fee from $5 to $35.
-- A move to automated meter reading will eliminate detection by
meter readers of leaks and illegal bypasses.
- - bro ers.
,;.O.S. is warning all communities about the cutbacks in natural gas
.service that may be approved by the PUc. We are also pointing out
'the real culprit: deregulation of the gas industry which provides
incentive for companies to slash services to residential customers.
Phone:213-380-9274; FAX: 213-380-2976 3010 Wilshire Blvd. P.O.Box 491 Los Angeles, CA. 910
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Merry of the statements made by SOS in their mailer to the City are 92M-006
mi.sleadin . As Tan Minor pointed out at the March 17 Was and Means
Committee meeting, the ornrmnts regarding The Gas C n 's soft. close tel 714 P5.7941
Z,licy are being made b x the group formed s cificall to se chang2s
to our 0 rations. These qpe rational changes are necessary to increase
cost effectiveness and efficiency in order to ensure the lowest rates
Eossible.
SCS is a group composed prixeril,y of our Union employees concerned
about JOBS not services. The major guiding 2rinciple for all proposed
revisions to service delivery to reduce cost of delivery is, NO CarQro-
mise Of Safety. The Gas Company has built a reputation based on employee
and customer safety for over 100 years. �
Please consider the attached information before moving forward with
any_ opposition to the soft close policy. I would also like the
22portunity to address the Ways and Means Committee.
Sincerely,
Judi W._ Sattey
1J -46 N0 . UU1 P . 02
SOUTHERN CALIFORNIA GAS COMPA14Y
SOF`I CLOSE PROCEDURE
SUIJ AARY_SHEET
The customer's right to have their appliances checked has in no way been
diminished by the soft close procedure. They may request this service any time.
Historically, of the approximately one million turn-on orders worked annually, field
personnel did not enter and check appliances about 40% of the time. This was
due to our procedure of matching turn-on orders with close orders where the
gas is already on. Appliances are checked only if the customer specifically
requests it.
In 1992, utilizing the soft close procedure, 66.4% of the turn on orders were "non-
entered". Our goal is to have 80% of the turn-on orders "non-entered".
Other gas utilities have successfully used a soft close procedure for several years.
PG&E has had such a program year-round for approximately five years;
Consumer Gas of Michigan also has a year-round program; Iowa Illinois Gas
Company and Electric Company and Northern Illinois Gas Company use a soft
close procedure during the winter season.
- The field representative makes a meter registration check to determine the amount
of gas gong through the meter. If more than pilot usage is indicated, the meter
is turned off.
The premises is monitored by the meter reader on the regular meter reading cycle
for evidence of new occupancy and to obtain the meter read.
When total gas flow through the meter from the soft close date reaches 30 Ccf, or if
the average daily usage is greater than the established criteria based on the
applicable rate for that account, an order is issued to inspect the premises for a
new occupant or to close the meter. If the average per day use indicates that 30
Ccf will be used before the next meter read date, an order is issued for the
projected date that 30 Ccf will be used to inspect the premises for a new
occupant or to close the meter.
- There has been no increase in requests for leak investigations since the soft close
procedure was implemented.
The number of claims received for asphyxiations, flash burns, explosions and fires
at residential premises actually decreased in 1992 from the previous years'
annual averages.
- The soft close procedure allows us to provide a faster response time on other types
of customer generated orders.
- The rate of non-productive service calls (the service person could not gain access to
the premises) has been reduced from 8% to less than 5%.
• By 1994, we expect to realize savings of approximately $4 Million annually as a
result of the soft close procedure. All cost savings have been passed along to
rate-payers.
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