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CA Utility Commission to Regulate DSL
mgrimes writes "According to this story on Internet.com, the California Public Utilities Commission has ruled that it has the authority to regulate DSL-based Internet services in addition to the FCC. Could be a good step in creating more competition in the broadband market... but then again given the PUC's track record, maybe we're all in for rolling DSL blackouts."
Before travelling overseas, I signed up for a MCI Worldcom plan that included, along with long distance service, a Worldcom phone card that had very low rates for the countries I would be visiting (UK was 25 cents per minute, France was about 40 cents per minute).
Because I was travelling, I never saw the bill until I returned home. It was then that I discovered the rates on the card and accompanying material were only good for calls TO or FROM the United States. Since I had made several local calls to relatives and friends during my UK and France stays, I had not been billed at those rates. The rates I got charged were as high as $8 per minute.
What was particularly galling was the fact that they could have bounced the call over the Atlantic twice, and I still would have be charges at the most 50 cents per minute.
I called MCI to complain, but they refused to negotiate with me. They insisted that since I had already used the airtime I was required to pay the full amount.
Angry, I flipped over my phone bill and, as per California law, there was instructions for filing a grievance with the California Public Utilities Commission. I was to make out a check for the amount in question and sent it, with my complaint, to the CPUC. I suppose in this fashion the CPUC was acting a big like an escrow agent, holding the money until they determined the outcome.
But it never came to that. A couple weeks after I mailed my letter to the CPUC I got an envelope from MCI Worldcom. Inside was a letter that had been sent to the CPUC and carbon copied to me. The letter basically asked the CPUC to disregard the matter, as MCI had concluded that "in the interest of customer service" and because "there was the chance that an unwary customer could be misled" they were going to only charge me at the 25 cent per minute rate I originally expected to get.
To this day, I'm not sure if this is a matter of the squeaky wheel getting the grease, or the phone company really and truly afraid of whatever big stick the CPUC may wield. However, I am at this point quite glad for the CPUC. However bumbling or inept a government agency might be, they have a process for getting things done and if you are willing to spent the time learning and following it, it's amazing what you can accomplish.
- JoeShmoe
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-- I wonder which will go down in history as the bigger failure: the War on Drugs or the War on Filesharing
Loretta Lynch, honcho of the California Public Utilities Commission, worked night and day in defense of the electrical and natural gas consumers of California while the forces of "laissez-faire" were screwing everyone. During the crisis, I read everything I could find anywhere about the pending legislation, the regulatory actions, spot market prices, plans for plants, environmental regulations, homebrew power regulations/incentives/products/services and even the lawsuit brought by the CPUC itself against the Federal Energy Regulatory Commission for being lax on crooked corporations--most notably Enron. Need I say more? Yep.
I live in the Republican-dominated state of South Dakota. What do these sincerely conservative people want? A regulated monopoly. What do we get? Power for about a penny or two per kilowatt-hour wholesale year round with nary a failure even with our horrible weather. When the lines go down, laissez-faire does not provide us with understaffed, undertrained, low morale linemen. The lights go on again pronto, and people do not get killed due to "cost consciousness" in the training budget. Through mandatory stable pricing, adequate capitalization, strict accountability, open records, and the mandatory glut, abundance, reasonable and stable profits, and cheap reliable power is the law. One day last summer when it was nearly 100 degrees outside, I saw no exhaust coming out of the fuel-oil-fired peaking plant as I drove by. We had juice to spare.
Ms. Lynch didn't put California into the opposite condition of South Dakota. Governor George and the "bold" legislative assembly initiative (the infamous AB 1890) illegalized long term price stability from any electric power seller to any electric power buyer in California, effectively making the Federal regulators the only regulators with significant, enforceable authority. Loretta Lynch raised a little hell a little frequently about that. Given those reckless laws on the books, Ms. Lynch and the rest of the CPUC were thrown the unpleasant duty to make rulings within a system that illegalized stability. The CPUC did its best within the insane laws there to make the system work like something that didn't lay out a red carpet for Enron to screw California. In the infamous May day of 1999, it was a CPUC-mandated scientific study that sounded the alarm about bad market conditions to come. When the crisis intensified, the State of California worked so hard for Joe Blow customer that they set up a trading floor to try to "speculate back" against Enron and its ilk with the biggest (little) army that could be afforded on short notice to man the phones and the energy-trading workstations. The fiery redhead, Ms. Lynch, kept up morale for the underpaid (by energy company litigants' standards), overworked and outgunned CPUC lawyers to take on Enron, Uncle Sam's lazier regulatory side, and anybody else who would bend the law against the ordinary customer.
Bear in mind that California is drenched in sunlight, whipped by the wind, sitting on oil and natural gas galore, and beset with few extremes in temperature (except in the desert, which is sunnier, windier, less populated, and and more predictable). For ten years "laissez-faire" indicated that no new plants should be built. Ok. Environmental and NIMBY ("Not In My Back Yard") dynamics were in play, but the CPUC is not to be blamed for bourgeois disgust with the actual production of what gets consumed. The CPUC is a consumer-protecting watchdog organization... almost as good as the esoteric little PUC in South Dakota. ;-) Only weeks before the big disaster in power prices in California, our since-deceased South Dakota PUC commissioner wrote a polite little note to the feds, saying (in effect), "Nope. We know you want us to deregulate like California, but we're just fine the way we are." The CPUC did not have that option. That commission did the very best it could in a horrible situation, and it did some good.
Just so people remember correctly, it wasn't either deregulation or regulation that got California into so much trouble with the rolling blackouts, etc. It was the combination of half-assed deregulation AND half-assed regulation combined that caused their self-imposed troubles. The state decided to deregulate most aspects of the power industry, but didn't feel like taking the consequences, so it capped what power companies could charge for the power.
Forgive me for saying so, but people in California seem to have a bad habit of wanting everything, but not wanting to pay for it in some way or another. Like requiring 15 different grades of gasoline, but then complaining about the high prices at the pump. Or griping about the poor public education facilities in the state, but then not putting up the money to fix them up (actually, squandering the funds so that a bond issue had to be floated).
DSL is not a life necessity. There are people who would benefit much more if those legislators and administrators spent their time looking into solving CA's power, housing, labor, and immigration problems. I don't feel particularly bad for either the providers of DSL service or the consumers right now. One is scamming the other, and the other is allowing themselves to be scammed. So I don't particularly think that these regulation efforts are best spent in this area. But it's their state -- maybe they can do DSL differently? Somehow, I have a bad feeling!
Apologies for the rant. It just seems that people, Californians in particular, want to fix the wrong problems. Like when the Berkeley city council votes to condemn border disputes between Myanmar and Burma, but in the meantime, the streets of their own city go to shit, so homeless people actually flock there for the fringe benefits. Or when the state has a referendum on whether to outlaw the consumption of horsemeat. I mean really, how many people does this affect? And all the while, countless others are living in poverty, right next to dot com billionaires. Oops, there I go again. Sorry. I'll stop now.