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Home My WebLink About12- 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 vl v ` r � J i� I IVi`. 1 L.ti iIV • .. 1y vV 1 ILJJ./ hu, V 1 1 --J iS '40 NO • U`f 1 I • V� The Gas Cam ,� 32s�� Y 3 1 M3 _ JudiW 9ettey MAR �-� Post-It'-brand fax transmittal memo M71 i m paps ► A&MCIXR DW. G , one 0 Vex OF r, 7Ms, Shauna Clark Gascempapy �.7,ty 1S�tor 674 W Fourth Siwi City of San Bernardino sutfe F 3710 North D St• .Can fltrnardina,(A Seen Bernardino, Ca 924 J 8 9.1417 Deer +S.`hauna, MrilinK Addreu.- Rar?00? Kedlendt,CA 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. A u