CUSTOMERS' SURVEY FAKED, EDISON SAYS.Byline: Kevin Smith Staff Writer ROSEMEAD - Southern California Edison Southern California Edison (or SCE Corp), the largest subsidiary of Edison International (NYSE: EIX), is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity. announced Monday that at least 12 of its employees falsified data in an attempt to influence the outcome of customer satisfaction surveys conducted by an independent survey group. The utility - a division of Rosemead-based Edison International Edison International (NYSE: EIX) is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and un-regulated non-utility assets Edison Mission Energy, a power producer, and Edison Capital. - has initiated an investigation with the help of its internal audit team, general counsel and outside legal advisers. SCE SCE (in Scotland) Scottish Certificate of Education SCE n abbr (= Scottish Certificate of Education) → Schulabschlusszeugnis in Schottland has shared the initial results of that investigation with the California Public Utilities Commission The California Public Utilities Commission (CPUC; also often commonly referred to as simply the PUC) [1] is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power, , company spokesman Gil Alexander said. ``This is very disturbing to us on two levels,'' Alexander said. ``First, we value our integrity and believe we are a company of integrity. And secondly, we are not just any business. We're a regulated monopoly - and the state of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). has to trust us.'' Under the PUC's performance-based rate-making mechanism, the results of the customer satisfaction surveys are used, in part, to determine whether SCE receives an incentive reward or penalty. SCE has not yet been able to determine whether or to what extent the surveys that are the basis for that determination have been compromised. The utility company recorded customer satisfaction-related incentive rewards totaling $28 million from 1997 through 2000. Potential incentive rewards for customer satisfaction totaling $10 million for 2001 and 2002 are pending before the PUC (Public Utility Commission) A regulatory body in every state in the U.S. that governs public utilities within its jurisdiction such as electricity, gas, oil, sewer, water, transportation and telephone service. Some states call it the Public Service Commission (PSC). . The 12 employees work in SCE's service planning group and are responsible for helping contractors and builders obtain power for new projects and project expansions. ``This was not done by manipulating the data because that was developed by an independent research firm,'' Alexander said. ``But each department lists all of the major transactions that occurred for the year, including each client's name, address and phone number.'' SCE officials think the employees replaced clients' phone numbers with alternate numbers of other people who would pose as builders or contractors when called and give glowing reviews of Edison's service, he said. In other instances, SCE officials suspect that the employees either didn't enter a client's information or transposed trans·pose v. trans·posed, trans·pos·ing, trans·pos·es v.tr. 1. To reverse or transfer the order or place of; interchange. 2. digits in the phone number if they suspected that that company might give SCE a low score. Under SCE's ``results sharing'' plan, the employees in question stood to reap more profits, Alexander said. ``This groups appears to have attempted to rig the system to get the maximum payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. ,'' he said. SCE officials said they will refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies any incentive rewards that have been inappropriately received, and forgo any future rewards that have not been properly earned. The investigation is ongoing, but the conduct of those involved ``will not be tolerated,'' the company said. Alexander said disciplinary action has been taken, although he declined to say what that action was. ``I think they are being open and up front with the (PUC),'' said Mike Worms, managing director of Harris, Nesbitt Gerard, a New York-based brokerage firm. ``Going back and reporting this to the commission was the right thing to do.'' Sheri Inouye, a spokeswoman for the PUC, said her agency is working with Edison on the investigation. ``Edison has 30 days to report back to us and share their (complete) findings with our commission staff,'' she said. ``Then we'll take that back to the PUC to assess the impacts and determine if any remedial action A remedial action is a change made to a nonconforming product or service to address the deficiency. Rework and repair are generally the remedial actions taken on products, while services usually require additional services to be performed to ensure satisfaction. needs to be taken.'' Kevin Smith, (626) 962-881113-3634 kevin.smith(at)sgvn.com |
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