Office of Ratepayer Advocates
The Division of Ratepayer Advocates (DRA) is the consumer-advocacy arm of the California Public Utilities Commission (CPUC), which regulates privately owned public utilities in the state of California. DRA is a statutorily mandated agency that is specifically authorized to represent the interests of public utility customers within the jurisdiction of the CPUC to obtain the lowest possible rate for service consistent with reliable and safe service levels. In fulfilling its mission, DRA also advocates for customer and environmental protections.
History
DRA was created by the CPUC as a separate “Public Staff Division” in 1984. Prior to the creation of DRA, the CPUC staff often functioned as both advocates in formal regulatory proceedings as well as in an advisory role to the Commission. Over time, this dual role of staff as both advocates and advisors came under criticism from both utilities and consumer organizations.
The California Legislature codified the Public Staff Division in Public Utilities Code Section 309.5, renaming it the Division of Ratepayer Advocates.
In 1996, SB 960 recognized the importance of keeping DRA housed within the CPUC to preserve the efficiency of mutual operations, but also granted it a measure of independence with respect to policy, advocacy and budget. SB 960 also made the DRA Director a gubernatorial appointee subject to Senate confirmation. SB 201 further expanded DRA’s role to represent consumer interest outside the formal administrative proceedings of the CPUC.
In 2005, the Legislature further defined and codified the role of DRA with SB 608, providing the agency the autonomy over its budget and staffing resources and authorizing the appointment of a full-time Chief Counsel.
DRA is a member of the National Association of State Utility Consumer Advocates (NASUCA), which includes 44 utility consumer advocates in 40 states designated by law to represent the interests of consumers in their jurisdictions before state and federal regulators.
Role
Unlike other consumer advocates who intervene in CPUC proceedings, DRA has a mandate by law to represent the interests of ratepayers in virtually all Commission proceedings. In 2010, DRA participated in more than 200 proceedings and filed more than 660 pleadings. In certain proceedings, such as water utility rate cases, DRA is usually the only party representing the interests of customers. Similarly, in more obscure energy cases, DRA is often the sole voice for consumer interests.
Energy
DRA represents the ratepayers of California’s investor-owned energy utilities, or approximately 80% of all California’s energy customers. In 2011, DRA advocacy efforts saved ratepayers $4 billion in energy costs.
DRA also acts as a consumer advocate in the state’s policymaking to reduce greenhouse gases, increase energy efficiency, keep the energy system reliable, and increase renewable energy in ways that do not unnecessarily burden the ratepayers, especially those who face low-income.
Water
DRA represents 1.3 million customers of investor-owned Class A & B water utilities. DRA scrutinizes water utility requests for additional revenues that will increase customer bills and intervenes to shape water policies to protect ratepayer interests while meeting the state’s water conservation goals. In 2011, DRA saved water customer over $23.3 million.
DRA has advocated for cost-effective water conservation and encouraged associated energy savings measures. DRA seeks water supply solutions to address long-term water supply needs while keeping rates affordable.
Communications
DRA represents customers of both wireline and wireless telephone carriers on Communications policy issues with particular focus on affordability, consumer protection, and service quality. DRA also works to ensure that all customers have equal access to broadband services at reasonable costs. In 2011, DRA succeeded in convincing the CPUC to examine the existence of viable competition in the largely rate-deregulated telecommunications industry.
DRA persuaded the CPUC to take action to address basic telephone service “LifeLine” rates targeted to California’s low-income population, which were expected to increase in January 2011 in the absence of CPUC action. Subsequently, the CPUC capped LifeLine rates to $6.84 for the next two years. The CPUC also adopted DRA’s recommendation to offer LifeLine customers a wireless option.
DRA won additional protections for wireless telephone customers as the CPUC adopted rules in 2010 requiring phone companies to be responsible for the content of their bills, refund customers for unauthorized charges, and provide customers with the option to block third party charges to their phone bills.
Structure
The current staffing level consists of 142 technical, policy, and financial analysts with professional backgrounds as engineers, auditors, and economists with expertise in regulatory issues related to the electricity, [natural gas], telecommunications, and water industries in California.
References
- DRA Annual Report 2011
- DRA Annual Report 2010
- DRA Annual Report 2007
- "California Public Utilities Code Section 309.5".
- "Public Utilities Commission Reform".
- "SB 201".
- NASUCA website#