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Consumer Groups to Tom Wheeler: Keep Pushing Forward on Real Reforms

Wheeler

Wheeler

One of the biggest surprises of the Obama Administration has been FCC chairman Thomas Wheeler, whose industry background made his appointment immediately suspect among consumer advocates, including Stop the Cap!

But over the last few years of his tenure, he has built one of the strongest pro-consumer records of accomplishments the commission has seen in decades. Not only has Wheeler outclassed Kevin Martin and Michael Powell — the two chairmen under the prior Bush Administration, he has also demonstrated strong conviction and consistency lacking from his immediate predecessor, Julius Genachowski. Wheeler has won praise from consumer groups after pushing through Net Neutrality, adding stronger terms and conditions to the Charter-Time Warner Cable-Bright House merger to extend a ban on usage caps for seven years, discouraging more wireless provider mergers, and several other pro-consumer measures dealing with persistent problems like phone bill cramming.

Many top telecom executives and lobbyists and many Republican members of Congress have been highly critical of Mr. Wheeler and have bristled at media reports suggesting he might not exit with the outgoing Obama Administration. More than a few have hinted they would like to see Wheeler depart sooner than later.

The Wall Street Journal is now questioning whether Wheeler can complete at least three more of his important agenda items before President Obama’s term ends early next year.

His “open standards” for set-top boxes reform is mired in a full-scale cable industry push-back, efforts to impose strong privacy rules on what cable and phone companies do with your private information apparently violates Comcast’s right to offer you a discount if you agree to let them monitor your online activity, and even an effort to clean up business telecommunications service rules has met opposition, mostly from the companies that are quite happy making enormous profits with the rules as written today.

“Chairman Wheeler has accomplished a lot during his tenure, but with the election fast approaching, he probably has time to get one more big thing done,” Rep. Frank Pallone of New Jersey, the top Democrat on the House Energy and Commerce Committee, told the newspaper.

Some Republicans in the Senate are holding up a vote on a second 5-year term for Democratic Commissioner Jessica Rosenworcel after hearing media reports Wheeler may be thinking of remaining as FCC chairman after the end of the Obama Administration. Wheeler’s term doesn’t expire just because the president that appointed him leaves office, but it would be unusual for Wheeler to stay. But then a lot of traditions in Washington are not necessarily good ideas and we see no reason to hurry Wheeler out of his chairmanship. The chances we will get someone as tenacious as Mr. Wheeler has proven to be from the next president is unlikely. Those blocking the vote on Ms. Rosenworcel are playing the usual Washington power games, simply looking for a commitment Wheeler will leave with President Obama.

Wheeler has few allies among Republicans, who don’t like his Net Neutrality policies, don’t want Wheeler’s open-standard set-top box plan, and believe he is a regulator more than a preferred deregulator. Rosenworcel has recently been wavering on support for Wheeler’s set-top box plan and his internet privacy plan, which worries us because her vote is critical to assure passage. Rosenworcel could be trying to be seen as an independent to improve her chances at winning reappointment, but she risks alienating consumer groups if she sides with the two Republican FCC commissioners, who have shown themselves to be engaged in almost open warfare against consumers. Rosenworcel would do better to vote with consumers and avoid any appearance she is more interested in protecting her position in Washington.

“Sure, there are headwinds, but that’s often a sign that they’re doing something right,” Todd O’Boyle, program director for the media and democracy reform initiative at Common Cause told the newspaper. “There’s reason to think that the FCC will advance all three reforms.”

As far as Mr. Wheeler, as long as he represents the interests of the American people over those of AT&T and Comcast, he should feel free to stay as long as his term allows.

Some Fla. Lawmakers Fed-Up With Industry-Friendly Public Service Comm. That Grants Corporate Wishes

Phillip Dampier December 8, 2014 Consumer News, Public Policy & Gov't, Video Comments Off on Some Fla. Lawmakers Fed-Up With Industry-Friendly Public Service Comm. That Grants Corporate Wishes

corrupt pscFlorida’s Public Service Commission is charged with overseeing the state’s utility companies on behalf of the public interest, but some Florida lawmakers complain the regulator is corrupt, obsessed with fulfilling corporate wish lists and doing political favors for some of the state’s most powerful utilities and state legislators.

State Representative Chris Sprowls (R–District 65) and State Senator John Legg (R–District 17) have jointly filed legislation to reform Florida’s Public Service Commission (PSC). The two lawmakers joined consumer advocates in the state that complain the regulator has abandoned any pretense of representing consumers and today acts more like a consultant to facilitate corporate objectives in the state. The two lawmakers say their new bill is designed to send a strong message the PSC needs to be more reflective of the people they are supposed to serve.

“The Public Service Commission should serve the public good.  While millions of Floridians are left in the dark – or fleeced by companies like Duke Energy – the PSC continues to turn a blind eye,” said Representative Sprowls.  “These meaningful first steps will add some diversity and accountability to the PSC as we work on other reforms that will fundamentally alter the culture of the PSC.”

In recent years, the agency has reviewed proposals to end local oversight of cell tower placement, allowing AT&T and other carriers first choice of tower locations that work best for the companies, even if it creates visual pollution for nearby residents.

Last year, the Public Service Commission “compromised” with Duke Energy Florida, Inc. and saddled Floridians with $3.2 billion of the costs of shuttering one nuclear power plant and canceling another on the drawing boards. Duke’s shareholders were only on the hook for the first $295 million in costs associated with the Crystal River plant, while ratepayers covered more than ten times that amount.

The Commission also approved a sweeping series of rate increases for Florida Power & Light that will cause electric rates to soar across FPL’s service area, despite being informed that less than 1% of FPL customers supported the rate plan. In December 2012, FPL was granted a $350 million increase, but the deal also included increases of $236 million in 2014 and $217.9 million in 2016.

pscFlorida’s Public Counsel called the rate increases “abusive” and complained the PSC violated its due process when, despite the public counsel’s objections, it “abandoned” proceedings in which the public counsel had raised objections to FPL’s original petition and instead pursued approval of a settlement proposal from the utility that ultimately was agreed to by only a group of commercial customers.

This year, at the behest of the state’s largest energy companies, the Commission is rolling back energy efficiency goals originally proposed by the utilities themselves and is expected to kill a solar energy rebate program that has been a target of the American Legislative Exchange Council (ALEC). Energy companies complain their rights are being violated by policies that require them to buy excess solar generated power from residential customers. In some states, homeowners attempting to install solar panels have received legal threats from utilities warning they would take the homeowners to court if the solar installation continued. In Florida, utility companies complain residential solar power is a nuisance.

“We want to bring on more renewables, but we also want to make sure the cost of electricity stays reasonable,” said Randy Wheeless, a spokesman for Duke Energy Corp., which serves customers in the Carolinas, the Midwest and Florida. Duke Energy has no objections to solar-generated power it collects itself.

Furthermore, the transition to solar energy is not as daunting as it might seem. There are numerous resources available to guide you through the process. One such resource that I found particularly helpful is https://www.instagroup-homes.co.uk/solar-power/installing-solar-energy/. It’s filled with practical advice and insights.

One of the fiercest critics of Florida’s PSC is its former chair, Nancy Argenziano, who served a single two-year term while utilities complained about her pro-consumer voting record. She was not reappointed for a second term.

“I’ve never seen anything so corrupt as the PSC,” said Argenziano. “It’s the most corrupt place I have ever seen in my life, and that is someone coming from the House and Senate.”

Former PSC chairwoman Nancy Argenziano called Florida's current PSC "corrupt."

Former PSC chairwoman Nancy Argenziano calls Florida’s current PSC corrupt. (Image: Saint Petersburg Blog)

Argenziano blames Republican Gov. Rick Scott and several pro-business legislators for the corruption. According to Argenziano, the pressure to cave to the utilities’ demands came almost immediately after she joined the agency.

“After the third month,” she said, “I was at the PSC, the threats came in from the legislature to do as they say. l’m not going to sit there as a puppet head for some legislator.”

She has no love for lobbyists either, at one point sending a 25-pound box of manure to a lobbyist with whom she clashed on a nursing home bill.

Mike Fasano, the Pasco tax collector and a former state representative and senator, is also a critic of the PSC saying, “Unfortunately, the Public Service Commission and the Florida Legislature are bought and paid for by the utilities of Florida.”

Since the Scott Administration was voted into office, campaign contributions from electric utilities have flooded in to the point where Fasano believes the PSC now exists as a rubber stamp for the utilities.

“They can get away with it because they have paid for, they’ve bought and paid for the Florida Public Service Commission and the Florida Legislature and unfortunately the present governor,” said Fasano.

“Reforms are needed to restore confidence in the Public Service Commission,” said Sen. Legg. “Unfortunately, people don’t feel like they’ve been dealt with fairly and that is a problem.  I applaud Representative Sprowls for his courage and leadership on making this his first bill.”

The proposed legislation:

  • Limits commissioners from serving more than two consecutive terms;
  • Amends provisions for the purpose of statewide representation on the commission;
  • Divides the state into five districts, whose boundaries align with the district courts of appeal;
  • Each member of the Public Service Commission must reside within the respective district from which they are appointed;
  • Restricts elected officials from being appointed to the Commission for 2 years after leaving office.

[flv]http://www.phillipdampier.com/video/WTSP Tamps Florida PSC called corrupt by former chair 12-4-14.flv[/flv]

WTSP in Tampa investigated the Florida PSC and uncovered a major link between utility campaign contributions and how the PSC votes. (3:24)

The Trauma Trinity: Comcast, Time Warner, Charter Now America’s Most-Hated Companies

ygbix_logoAmericans would rather deal with unwanted telemarketing calls, fight their insurance company, or pay top dollar for oil and gas because almost anything is better than dealing with the cable company, if it happens to be named Comcast, Time Warner Cable, or Charter.

As state and federal regulators contemplate allowing these three companies to co-mingle, Americans have bottom-rated them like never before in the most recent YouGov BrandIndex survey of consumer satisfaction.

Any number below 60 results in the failing grade of “F” and shame for all concerned. The three cable operators managed a grade of just 13.2, nearly twice worse than the next lowest scoring industry – wireless providers. The cable sector once again achieved the lowest scores among 43 rated industries and has sunk to a level reserved for a war criminal popularity contest.

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YouGov BrandIndex

Although Time Warner Cable’s scores were called “crap” by one consumer advocate reviewing the data, Comcast performed much worse, plummeting to new lows after customers related to the gone-viral recording of Ryan Block’s customer service call from hell. Block spent more than 20 minutes arguing with a cocky and insufferable customer service representative who repeatedly resisted Block’s efforts to cancel his service. It hit a familiar nerve with Comcast customers and the company took a major hit, according to Lance Fraenkel, head of client services for BrandIndex.

cable guy“That to me stands out as a major event over the last few months that has damaged the brand and category perception,” Fraenkel told The Huffington Post.

The proposed merger of Comcast and Time Warner Cable, although well received by non-profit groups and politicians receiving Comcast contribution checks, is a dead on arrival proposition for average consumers. This allowed Charter, which typically rates about as popular as burnt popcorn, to achieve a new high in its perennially dismal consumer satisfaction score. It can take its “barely neutral” rating to the bank.

But it isn’t bad for everyone. Verizon FiOS in particular achieved top grades for service, with AT&T U-verse also doing better than the cable competition.

“If you have a couple brands in negative territory and the category average is still firmly positive, then you know that there are brands that perform well in the sector,” Fraenkel added.

Comcast and Time Warner Cable both acknowledged their lousy ratings, both promising to continue spending millions improving the customer service experience. Comcast has promised that annually since 2007 and its ratings continue to decline. Many blame offshore call centers and intransigent operators unwilling to depart from a script that emphasizes giving credits and refunds only as a last resort. Most complaining customers are offered temporary discounts on service upgrades, which eventually expire and result in an even higher bill.

Charter couldn’t be bothered responding to a call for a comment. When the alternative is DSL from Frontier, CenturyLink or Windstream, why should they?

Time Warner Cable’s Teeny-Tiny Fine Print Makes Redeeming Rebates Difficult

Phillip Dampier March 18, 2014 Consumer News, Editorial & Site News Comments Off on Time Warner Cable’s Teeny-Tiny Fine Print Makes Redeeming Rebates Difficult
Good luck reading the fine print.

Good luck reading the fine print.

A Texas Time Warner Cable customer has discovered the fine art of cable company fine print, and it only cost her the Samsung Galaxy Note tablet promised in return for upgrading her cable package.

Sherry Buffington of Farmers Branch learned first hand that 1/16th of an inch print has but one purpose — to take away the promised tablet worth $399.

Time Warner Cable ran the tablet promotion nationwide over the holidays. Buffington wanted to know she would qualify before upgrading her service, so she called Time Warner Cable and got confirmation. She upgraded her service on the spot.

Weeks later, no tablet and no answers from Time Warner Cable. It took the Dallas Morning News’ Watchdog reporter to finally pry some answers out of the cable company.

Time Warner Cable’s position was finally made clear: No tablet for Ms. Buffington; she did not qualify for the offer because she didn’t pay attention to the fine print. It turns out customers have to switch to a specific bundled package to qualify for the promotion. Customers who simply upgraded service more often than not did not qualify for the promised tablet.

But Buffington still got something after her ordeal. It turns out Time Warner likes to keep recordings of customer calls indefinitely. A supervisor was able to pull the months-old recording of the call between Buffington and the customer service representative who promised she qualified for the tablet even though Time Warner now insists she does not. The cable company offered Buffington a $300 credit on her next bill to set things right.

Consumer advocates warn customers to take special care reviewing the fine print attached to most promotional offers and follow instructions precisely to qualify. But Watchdog Dave Lieber said Time Warner really went beyond the pale with the “disgustingly small” fine print he found completely unreadable.

Lieber’s inability to read the terms and conditions did not faze Melissa C. Sorola, TWC’s director of public relations. She reminded him the requirements are “stated three times in the documents.”

twc“Yes, that’s true,” wrote Lieber. “But it was in 1/16 of an inch everywhere. I don’t find that acceptable. Do you?”

Texas’ competing electric companies are held to a different standard. They have to produce their fine print in no smaller than 10-point type in paragraphs that do not exceed 250 words. Time Warner’s is half that size.

Customers rejected for rebates or promotions should file complaints with both the Better Business Bureau and their state’s Attorney General. This usually triggers a contact from an executive customer service agent to settle the matter. If you made a good faith effort to comply with the rebate, you should be able to receive a service credit equal to the amount or value of the rebate. Do not insist on receiving the promotional item or gift card, which is usually handled by a third-party fulfillment company.

Common Cause-NY Wants Anti-Corruption Commission to Review Big Telecom’s Political Contributions

Phillip Dampier September 23, 2013 AT&T, Cablevision (see Altice USA), Comcast/Xfinity, Consumer News, Public Policy & Gov't, Verizon Comments Off on Common Cause-NY Wants Anti-Corruption Commission to Review Big Telecom’s Political Contributions

donor contributionsSince 2005, five cable and telephone companies and their respective lobbying trade associations have donated nearly $12 million to New York politicians, making Big Telecom companies among the biggest political donors in the state. Now a government reform group wants an investigation by the state’s anti-corruption commission.

By exploiting giant loopholes in New York’s campaign finance laws, telecom companies that used to live with annual campaign finance limits of $5,000 are now donating millions to powerful political leaders in Albany – the majority conferences in the legislature, the state party committees, and the governor. Some are using secretive “housekeeping” accounts controlled by political parties. Others hide behind shadowy contributions from “limited liability corporations” (LLCs) established by some of the state’s biggest cable and phone companies and treated under current law as living, breathing people.

“Big Telecom exemplifies the pay-to-play culture which has come to define Albany, giving generously to the leadership in exchange for veto power over bills which favor the public interest,” said Common Cause-New York executive director Susan Lerner.

The Optimum donor to state "housekeeping" accounts among telecom providers is Cablevision.

The Optimum donor to state “housekeeping” accounts among telecom providers is Cablevision.

No telecom company donates more in New York than Cablevision, which has given more than $5.3 million in contributions to state politicians since 2005 as it fights its way through union problems, fierce competition from Verizon, and complaints from subscribers about rising cable prices and questionable service. The cable company doesn’t just donate in name-only. Common Cause-NY discovered Cablevision using eight different LLCs to evade contribution limits, handing over $1.5 million to candidates and committees. Gov. Andrew Cuomo received $130,000 from four different Cablevision-controlled LLCs between July and October 2010. On April 29 of this year, former Nassau County executive Tom Suozzi’s campaign received $190,000 from three Cablevision-controlled LLCs on that single day.

Verizon (82%) and Time Warner Cable (70%) prefer to quietly give the largest percentage of their political donations to the parties’ secretive, soft money “housekeeping” accounts. The Republican and Democratic recipients are not using the money to buy Endust, mops or spare light bulbs, although the average voter might assume as much.

Corporations with an agenda just love New York’s hush-hush “housekeeping” accounts because they come without dollar limits or complete disclosure about how the money was ultimately spent.

The State Board of Elections says “housekeeping” money is supposed to go toward maintaining a party’s headquarters and staff or “ordinary activities that are not for the express purpose of promoting the candidacy of specific candidates.” Unfortunately, nobody bothered to require detailed accounting, allowing funds to disappear down a political rabbit hole, to be distributed at each party’s discretion.

Comcast (59%) and AT&T (53%) are considerably smaller players, in part because neither company serves many wired cable/broadband customers in New York.

Verizon’s corporate PAC also likes to raise relatively large numbers of small contributions given in the name of company executives or employees, not necessarily mentioning the company itself. Campaign finance disclosures may list only the individuals’ contribution(s), not the company that signed their paycheck.

loophole

contribution by typeWhere does all the money go?

Common Cause-NY says most of the money is channeled to the most influential politicians in the state, with minority parties and unelected candidates typically getting much less.

To gain influence on the state level, Big Telecom companies contribute to the governor, attorney general, and the majority parties controlling the state Assembly and Senate, with Republicans getting the lion’s share (over $3.5 million) in the Senate and Democrats (over $1.6 million) in the Assembly.

For local issues of interest to the state’s local cable and phone companies, contributions are funneled to influential county-level political machines, perhaps helpful in making life difficult for a competing Wi-Fi project, a municipal fiber network, or helping to cut red tape to place a cell tower in a controversial location.

The top six recipients of Big Telecom’s political cash in the legislature:

  • Key Party Leaders: Dean Skelos ($117,700), Tom Libous ($57,150), Jeff Klein ($49,450), and Sheldon Silver ($32,749.61)
  • Current and former Chairs of the Senate Energy and Telecom Committee: George Maziarz ($79,718.02) and Kevin Parker ($34,444.00).

Common Cause-NY notes the corporations involved don’t give money without expecting something in return. After generous contribution checks were deposited, a number of telecom consumer protection bills mysteriously died in committee or never made it to the floor. The same fate did not meet bills offering special tax breaks for cable and Internet Service Providers that have cost New York taxpayers nearly $500 million and counting.

“Multi-million dollar campaign contributions clearly help Big Telecom maintain the status quo of corporate control, high prices, and lax regulation,” Common Cause-NY concludes.

where is the money going

top ten recipients

The legislature is rife with examples of bills that would have likely passed with popular support but suddenly or “mysteriously” didn’t:

  • common cause nyA 7635-A / S5630-A: Establishes a moratorium on telephone corporations on the replacement of landline telephone service with a wireless system.
    • The “VoiceLink” moratorium bill, passed the Assembly, had broad bi-partisan support in the Senate but never came to a vote.
  • S542: Relates to enacting the “Save New York Call Center Jobs Act of 2013,” which requires prior notice of relocation of call center jobs from New York to a foreign country; directs the Commissioner of Labor to maintain a list of employers who move call center jobs; prohibits loans or grants.
    • The “Call Center Jobs Act” would take away tax breaks and state grants if companies move a call center to another country. The bill passed the Assembly in 2012 (A9809) and had bipartisan support in Senate but was blocked. The 2013 bill died in Senate committee.
  • fair electionsA6003/S5577 — Directs the Department of Public Service to study and report on the current status of cable television systems providing services over fiber optic cables.
    • Bipartisan support in Assembly for further oversight of broadband but gets little support in Senate, the same bill was also blocked in 2012.
  • A5234/S1075 — Enacts the “Roadway Excavation Quality Assurance Act” demanding utility companies or their contractors shall use competent workers and shall pay the prevailing wage on projects where a permit to use or open a street is required to be issued.
    • Bipartisan support in the Senate and Assembly but no passage in either 2012 and 2013.
  • A6239/S4550 — Creates the State Office of the Utility Consumer Advocate to represent interests of residential utility customers.
    • Bipartisan support in Assembly, dies in Senate.
  • A6757/S4449 — Requires providers of electric, gas, steam, telephone and cable television services to issue standardized bills to residential customers; provides the standards for such bills shall be established by the Public Service Commission.
    • Bipartisan support, passes Assembly, dies in Senate.

“Here’s the evidence that giant telecom companies are taking advantage of huge loopholes and lax regulations so they can increase profits, often at the expense of everyday New Yorkers,” said Karen Scharff, executive director of Citizen Action of New York on behalf of the Fair Elections for New York campaign. “It’s time for our leaders in Albany to acknowledge the ever-growing wealth of evidence that we need to fix our broken campaign finance system and pass a comprehensive Fair Elections system centered around publicly financed elections.”

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