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?PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIAEXECUTIVE DIVISION RESOLUTION M-4857 September 23, 2021R E S O L U T I O NResolution M-4857 Approval of Additional Moratoriums on Disconnections for Non-Payment and Fees for Late Payment for Telephone Service Through December 31, 2021______________________________________________________________________________SUMMARYThis Resolution affirms the extension of the current moratorium on fees for late payment and disconnection for non-payment of voice service for residential (including LifeLine) and small business customers through September 30, 2021. Resolution M-4857 also approves an additional moratorium moratorium on fees for late payment and disconnection for non-payment of voice service for residential (including LifeLine) and small business customers through December 31, 2021, in our continued efforts to assist consumers throughout the novel coronavirus (COVID-19) pandemic. This Resolution requires all telephone corporations in California (including LifeLine providers), who have not previously filed advice letters pursuant to Resolution M-4848, to file a new Tier 2 Advice letter with the Communications Division (CD) notifying the Commission of their implementation of a moratorium on disconnections for non-payment and on late-payment fees for voice service for residential and small business customers. This Resolution also authorizes the Executive Director to issue one or more extensions to the moratorium beyond December 31, 2021 if necessary. Any extensions issued by the Executive Director shall not exceed 90 days. BACKGROUNDOn December 17, 2020, the Commission adopted Resolution M-4848, which implemented a 90-day moratorium on fees for late payment and disconnection for non-payment for voice service for residential and small business customers and gave the Commission’s Executive Director the authority to extend the moratorium. On March 23, 2021, the Commission’s Executive Director extended the moratorium adopted in Resolution M-4848 until July 15, 2021. On July 14, 2021, the Commission’s Executive Director extended the moratorium adopted in Resolution M-4848 through September 30, 2021, or until the Commission votes on the additional moratorium. The Commission determined that extending the moratorium on disconnections and late fees until December 31, 2021 would alleviate at least some of the impact experienced by customers in California, especially given the recent increase in COVID-19 cases due to the Delta variant. The Centers for Disease Control (CDC) recently stated that while the approved vaccines are highly effective at limiting or preventing hospitilizations and death, the Delta variant is at least twice as contagious as previous COVID-19 strains and is behind this increase in cases in California and around the country. As of August 12, 2021, California has seen an increase of over 460,000 confirmed COVID-19 cases since March 2021, for a total 3,980,172 cases statewide that have resulted in 64,037 deaths. Also, the national 7-day average for new COVID-19 cases was approximately 12,000 on July 1, but that it had risen to over 60,000 by July 31, 2021. According to the CDC, the Delta variant is also easily transmitted by vaccinated individuals ad can cause much more severe illness amonth those who are not vaccinated.The Delta variant driven increase in in COVID-19 cases is also largely responsible for the California Department of Public Health (CDPH) recommending universal mask wearing indoors for all individuals, regardless of vaccination status. Additionally, on July 26, 2021, Governor Newsom, in concert with the CDPH, ordered all state employees and healthcare workers to get vaccinated. This mandate was followed by another on August 11 that all public and private educations workers in the state to prove their vaccination status by October 15, 2021.Overall, the significant increases in cases and subsequent mask wearing recommendations and new vaccine mandates, clearly demonstrate that COVID-19 is not going to dissipate in the near term and that it will continue to impact the lives of residents and consumers in California.As detailed in the Commission’s July 14, 2021 Executive Director letter, although the Governor rescinded some emergency COVID-19 measures in June 2021, California is still transitioning in its management of the COVID-19 pandemic, which as stated above, is still impacting every aspect of life in this state. As such, customers are still at risk of falling behind on utility payments as we slowly transition out of the pandemic, and access to these services is needed as school attendance and employment ramp back up. Moreover, having access to essential voice services is critical to maintaining Californians’ health and safety in this period. The state is currently experiencing a drought and is in the midst of wildfire season, which make access to voice services paramount to allow Californians access to 911 and emergency response services. Similarly, the Commission extended the moratorium to voice its recent decision regarding the moratorium on disconnections for non-payment regarding energy utility services.While vaccines are currently being administered to protect against COVID-19, many Californians remain unvaccinated and it is unclear when we will reach herd immunity in the state for residents 12 years and older. Furthermore, children under age 12 are not currently eligible for a COVID-19 vaccine. New variants of the virus introduce uncertainty over vaccine efficacy. The Delta variant of the COVID-19 virus is spreading, and 24 states are seeing at least a 10% uptick in cases, including in California, where cases have increased since mid-June. DISCUSSIONThe COVID-19 pandemic continues to be extremely disruptive to all Californians and still impacts many Californians’ ability to work. The Commission has contended with many highly disruptive events and is currently dealing with devastating wildfires throughout our State. In response to reoccurring natural and manmade disasters, the CPUC initiated an emergency disaster relief Rulemaking, R.18-03-011 and adopted a series of requirements for utility companies (electric, gas, water and sewer) and communications providers, culminating in customer protection measures adopted in D.19-07-015 and D.19-08-025).The customer protection measures adopted in R.18-03-011 apply in cases where a gubernatorial or presidential declared emergency relates to the disruption or degradation of service. As we stated in Resolution M-4848, the COVID-19 pandemic represents a different type of emergency, one where the threat -- in this case, a virus -- necessitates a response due to its impact on Californians’ ability to pay for utility service. The continually changing public health and safety measures such as social distancing, shelter-in-place requirements, executive and county orders, and proclamations have required non-essential businesses including bars, dine-in restaurants, and shops, to swing back and forth from closing to reopening and sometimes completely changing their business model. This disruption has resulted in employee layoffs,underemployment, as well as has increased the risk of customers falling behind on utility payments due at the same time that COVID-19 shelter-in-place and work from home orders will likely continue to cause increased usage of utility services resulting in higher utility bills.It is evident that the COVID-19 pandemic will continue to economically impact all Californians. Having access to essential utility voice services is critical to maintaining Californians’ health and safety during the COVID-19 pandemic. Therefore, the Commission, through this resolution, affirms the Executive Director’s July 14, 2021 letter extending the current moratorium on fees for late payment and disconnection for non-payment of voice service for residential and small business customers until September 30, 2021. This resolution also approves an additional moratorium on fees for late payment and disconnection for non-payment of voice service for residential (including LifeLine) and small business customers through December 31, 2021. The Commission requires all telephone corporations in California who have not previously filed advice letters pursuant to Resolution M-4848, to file a Tier 2 Advice letter notifying CD of their implementation of the moratorium on disconnections for non-payment and on late-payment fees for voice service for residential and small business customers. In addition, this resolution authorizes the Executive Director to extend the moratorium beyond December 31, 2021, should it be necessaryAll residential (including LifeLine) and small business customers who receive voice service from telephone corporations continue to face financial hardship in California. As such, the Resolution continues the Commission’s effort to relieve customers of the threat of disconnection throughout the COVID-19 pandemic. As specified in Resolution M-4848, telephone corporations shall only require a verbal or written (either via email, traditional mail, or fax) affirmation from customers that they are experiencing financial hardship in order to be eligible for the moratorium. Telephone corporations shall be flexible in how they administer this requirement, giving customers the option of how to self-certify that they are eligible for the moratorium program because they are experiencing financial hardship.This Resolution, which affirms and extends the current moratorium on disconnections for non-payment and fees for late payment of voice services supplements the customer protections put in place in D.19-07-015, D.19-08-025, and Resolution M-4848. As we noted in Resolution M-4848, these customer protections are a floor, not a ceiling. In D.19-07-015 and D.19-08-025, we supported and encouraged telephone corporations to do more to help Californians in this time of need. Telephone corporations have the discretion to add additional customer relief efforts that are unique to their customers’ experience, or the specific type of damage a customer may suffer from as a result of COVID-19. While we do not mandate it here, we strongly encourage telephone corporations subject to this resolution to waive all late fees for customers facing financial hardship during the pendency of this moratorium.ADVICE LETTER FILINGTelephone corporations subject to this Resolution, those who have not previously filed advice letters pursuant to Resolution M-4848, shall take the immediate action to demonstrate compliance with the Commission’s Communications Division by filing a Tier 2 Advice Letter no later than 20 days after the adoption of this MENTS ON DRAFT RESOLUTIONIn compliance with Public Utilities Code, § 311(g)(1), a Notice of Availability was e-mailed on August 19, 2021, informing all parties on the attached Service List of the availability of the draft of this Resolution for public comments at the Commission’s website at . This letter also served to inform parties that the final conformed Resolution the Commission adopts will be posted and available on this same website. FINDINGS On December 17, 2020, in response to the COVID-19 pandemic, the Commission adopted Resolution M-4848, which implemented a 90-day moratorium on fees for late payment and disconnection for non-payment for voice service for residential and small business customers and gave the Commission’s Executive Director the authority to extend the moratorium. On March 23, 2021, the Commission’s Executive Director extended the moratorium adopted in Resolution M-4848 until July 15, 2021. On July 14, 2021, the Commission’s Executive Director extended the moratorium adopted in Resolution M-4848 through September 30, 2021, or until the Commission votes on the additional moratorium.Although the Governor rescinded some emergency COVID-19 measures in June 2021, California is still in the midst of the COVID-19 pandemic, which has impacted every aspect of life in California.Having access to essential voice services is critical to maintaining Californians’ health and safety.Extending the moratorium for voice services is similar to the Commission’s recent decision to extend its moratorium on disconnections for non-payment regarding energy utility services.This Resolution’s advice letter filing requirements shall apply to those telephone corporations who did not file advice letters pursuant to previous Resolution M-4848.A notice was emailed on August 19, 2021, informing the parties on the attached Service List of the availability of the draft of this Resolution for public comments at the Commission’s website . This letter also informed parties that the final conformed Resolution adopted by the Commission will be posted and available on this same website.THEREFORE, IT IS ORDERED that:Telephone corporations subject to this Resolution shall apply the moratorium on telephone disconnections for non-payment and fees for late payment for residential (including LifeLine) and small business voice services customers facing financial hardship through December 31, 2021 unless the Executive Director authorizes one or more extensions not to exceed an additional 90 days.Telephone corporations must continue to allow customers electing to utilize the moratorium to self-certify, either via telephone, email, or mail, that they are experiencing financial hardship, and are therefore eligible for the relief set forth in this resolution. Telephone corporations subject to this Resolution are encouraged not to send residential and small business voice services customers late fees or disconnection notices during the pendency of this moratorium in order to avoid confusion and lengthy customer service inquiries from affected customers who utilize the moratorium program. However, billing notices indicating flexible payment plans or the amount that is accruing to a customer’s account may be useful, so long as the notices are clear that the telephone corporations are only providing information to customers, not requiring customers to pay in full or at all during the pendency of the moratorium program.Telephone corporations who did not previously file a Tier 2 Advice Letter pursuant to previous Resolution M-4848, shall file a Tier 2 Advice Letter no later than 20 days after this Resolution’s approval describing all reasonable and necessary actions to implement the moratorium to support California residential and small businesses voice services customers.The moratorium does not relieve customers of their financial obligations.The moratorium will be offered proactively as an option to customers facing financial difficulty who are unable to enter an extended payment plan.This order is effective today.I certify that the foregoing resolution was adopted by the California Public Utilities Commission at its regular meeting of ______________, and the following Commissioners approved favorably thereon:Rachel Peterson Executive Director ................
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