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California PUC Resolution Will Extend Moratorium on Telephone Disconnection Policies for Nonpayment Until December 31, 2021

Fees for late payment for residential, LifeLine & small business voice services also waived if a customer self-certifies financial hardship

· COVID-19,Telecommunications,LifeLine,Telephone disconnect,Moratorium

On September 23, 2021, the California Public Utilities Commission will vote on Resolution M-4857 which will extend the moratorium until December 31, 2021, on telephone disconnections for non-payment and fees for late payments for residential (including LifeLine) and small business voice services customers facing financial hardship.  The Resolution is expected to be approved and continue substantial COVID-19 relief measures ordered by the CPUC for consumers impacted by job losses and related economic impacts of the pandemic.

Should the resolution be approved, telephone companies must continue to allow customers to self-certify, either by phone, email or mail, that they are experiencing financial hardship and therefore are eligible for the moratorium relief.  The relief means the telephone company cannot disconnect a customer's telephone due to non-payment or charge extra fees for late payments.  The relief is limited to residential and small business voice customers, and excludes large business and enterprise customers.  Also the CPUC made clear that the moratorium does not relieve customers of their financial obligations.

The CPUC specifically requested that telephone companies refrain from sending out late fee or disconnection notices during the moratorium to avoid confusion and customer service inquiries from impacted customers.  However, notices describing flexible payment plans and the amounts acruing to the customer's account are allowable, so long as it is clear that the telephone company is not requiring payment in full during the pendency of the moratorium.  

Telephone companies are also required to file a Tier 2 advice letter conforming to the prior Resolution M-4848 requirements to describe its reasonable and necesssary actions to implement the moratorium within 20 days of September 23rd, if it has not yet filed such a compliance advice letter.