Weakened Consumer Advocate Approved By Legislature

Coloradans Lose Consumer Voice on Telephone Issues

CoPIRG

Late Wednesday night the Legislature reauthorized a weakened version of Colorado’s Consumer Advocate, allowing the consumer watchdog to continue to advocate for Coloradans but only on gas and electric issues moving forward. Despite its track record of success and clear role in future telecommunication cases coming before the Public Utilities Commission (PUC) from 9-1-1 surcharge increases to the state’s high cost fund, Republicans in the Senate locked down with a party line vote that stopped the Office of Consumer Counsel (OCC) from representing consumers on telecommunication issues.

“For years Coloradans have had an effective consumer watchdog whose sole mission is to advocate for consumers on gas, electric, and telephone issues,” said Danny Katz, Director of the consumer advocacy group CoPIRG. “While the Legislature reapproved Colorado’s Consumer Advocate, they stopped it from representing consumers on telephone issues. That is a loss for anyone or any business that has a telephone bill in Colorado.”

Since 1984, the OCC has been subject to sunset laws, requiring the Legislature to reapprove the office or it would cease to exist no matter how well it fought and won for consumers. This year, the reauthorization vote came down literally to the last few hours. While the House approved a full reauthorization, the Senate’s version cut the OCC’s authority to weigh in on telephone issues.

“Allowing our Consumer Advocate to continue to do its job fighting for consumers on telephone issues at the PUC was clearly in the best interests of Colorado consumers,” said Katz. “They’re the only entity that solely represents consumers. They had the expertise to ask the tough questions to flush out waste and abuse. We all lost an important voice.”

CoPIRG highlighted a number of major decisions that the PUC will need to make in the next couple of years that would benefit from having a consumer voice including:

1. The distribution of tens of millions of dollars from the state’s high cost fund built up every year from a surcharge on many consumer’s phone bills. Telephone companies like CenturyLink apply for the money, which is only suppose to fund programs that provide phone service in hard to reach areas.
2. A 2018 review by the PUC of the telephone industry reform happening across Colorado to ensure there is no unacceptably high prices or poor service.
3. Proposals to increase the 9-1-1 surcharges that all telephone customers pay to fund critical 9-1-1 services. A recent CoPIRG report found surcharges vary widely and 53 of 57 local authorities are at or above the threshold set by state law that requires PUC approval for any further increases. Residents of Summit County and San Juan County pay four times more than many in the Denver metro area.

“Not only does Colorado’s consumer watchdog advocate for consumers when 9-1-1 fee increases come forward, but they represent consumers in state conversations about using newer technologies to upgrade 9-1-1 services,” said Katz “These improvements show a lot of promise in the increasing response time and effectiveness of our first responders but someone needs to ask the tough questions to ensure consumers are getting value and reliability. That has been the OCC but not anymore.”

Some Senators argued that the OCC could be eliminated because it was repetitive and that the PUC itself could look out for consumers. However, the PUC mission is to balance the interests of all parties involved and rule impartially on the cases argued before it.

“Saying the PUC can handle the consumer’s interest is like saying you don’t need a prosecutor or defense attorney in the judicial system because the judge will take care of it,” said Katz. “That’s not how it works. Removing the consumer voice undermines the whole PUC system.”

Despite repeated calls by Democratic Senators to try to reconcile differences between the House’s full reauthorization and the Senate’s weakened version in a conference committee, Senate Republicans refused to negotiate. Without action, the entire OCC would have been eliminated so Democrats eventually joined Republicans in approving the weakened version.

“When Colorado’s Consumer Advocate fought for consumers, we all won,” said Katz. “They have a track record of success asking the tough questions that have cut waste and stopped abuse. Too many Senators made the wrong call tonight and stopped our consumer watchdog from doing its job on telephone issues.”

Reauthorization heads to the Governor’s desk where he is expected to sign it.