BILL ANALYSIS Ó AB 66 Page 1 Date of Hearing: April 29, 2013 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Steven Bradford, Chair AB 66 (Muratsuchi) - As Amended: March 14, 2013 SUBJECT : Local electric reliability SUMMARY : This bill would require the California Public Utilities Commission (PUC) to require an electrical corporation to publish and maintain on the electrical corporation's Internet Web site a report describing local level system reliability problems. Specifically, this bill : a)Requires the PUC to require an electrical corporation to publish and maintain on the electrical corporation's Internet Web site a report describing local level system reliability problems, including, the frequency and duration of interruptions in services ranked by areas with both the most frequent and longest outages. b)Requires the reports to be updated at least quarterly. EXISTING LAW 1)Requires the PUC to set inspection, maintenance, repair, and replacement standards. (Public Utilities Code 330(i)) 2)Requires the PUC to adopt inspection, maintenance, and replacement standards for the distribution systems of investor-owned electric utilities no later than March 31, 1997 to provide for high quality, safe and reliable service. (Public Utilities Code 364) FISCAL EFFECT : Unknown COMMENTS : 1)Author's Statement. "For too long, cities, businesses, and residents along the Palos Verdes Peninsula - and across California - have suffered from frequent and at times lengthy power outages. These outages led to hundreds of acres being burned, food being spoiled, and residents being left without recourse. AB 66 allows consumers to see quarterly outage reports from their electrical corporations, while providing AB 66 Page 2 the California Public Utilities Commission and Californians with readily accessible information that can be utilized for better infrastructure planning. Transparency has been shown to be good for business and for consumer relations. AB 66 provides Californians with information they have a right to know, and provides a mechanism for accountability for rate payers." 2)Local Reliability Problems. According to the author, since 2008, the city of Rancho Palos Verdes and other cities on the Palos Verdes Peninsula have dealt with an average of twenty-six power outages a year. A 2012 Rancho Palos Verdes staff report cited over 100 unscheduled outages from 2008-2011 occurring within the city. These power outages have raised concerns about the frequent open space fires caused by electrical failures and accidents that threaten lives and property. Since 2005, there have been at least three fires attributed to service disruptions in the region. Outage related fires have resulted in approximately 200 open space acres being destroyed. Inconsistent electricity service in Rancho Palos Verdes and throughout the South Bay has resulted in growing frustration amongst ratepayers in the region. 3)Current Reliability Reporting Requirements . Through Public Utilities Commission Decision D9609045 and subsequent decisions, the PUC adopted incident reporting rules to ensure that the PUC is able to monitor incidents that affect utility operations or facilities. The annual reports provide information on: a) The top ten power outage events based on customer-minutes, excluding events such as weather, declared emergencies, or disasters affecting over 10% of the utility's customers; and b) Circuits in which customers have experienced greater than twelve sustained outages in a reporting year. These reports are compiled and published annually on the PUC website. PUC Decision D9609045 does require circuit-level reliability information to be made available in response to a request by an interested party. This decision states that: "Reliability indices using a portion of the system (circuit, division, region, or district), or smaller time periods (no smaller than AB 66 Page 3 a month), should be recorded and provided to any interested person upon request. In a footnote, the Decision states: Utilities should record information at whichever of these levels (circuit, district, division, or region) their then current information collecting capacities exist at." In this Decision, the PUC expressed concern over groups of customers being served on a common cluster of distribution facilities that experience repeated disruption and inform the PUC of their difficulty in arranging for the necessary repair or maintenance work. The PUC expressed a desire to spotlight such clusters of customers in a manner that orients the utilities' work and consolidates customer complaint information in a meaningful fashion. For example, customers in a common neighborhood, served from a common distribution feeder, who have experienced on average an outage over 5 minutes on a monthly basis over any annual period are suffering from a typically poor system reliability, are complaining directly to the Commission about difficulties obtaining repair work, and may simply be falling through the cracks. The PUC expressed that this type of recording and reporting would assist the utility in prioritizing work, and allow the PUC intervene and mandate remediation on a broad basis if the reporting becomes extensive and repetitively identifies the same clustered areas. On this same subject, the PUC stated: "Although the utilities may not like the public attention they may receive from disclosure of information regarding circuit performance, we will not hide information from the media or the general public on the basis that the utilities might be inconvenienced by any public attention it draws." As a result of this Decision and subsequent PUC actions, the five largest electric utilities annually report standard information on the duration and frequency of outages and identify problem divisions and circuits, duration and frequency of sustained and momentary outages using System Average Interruption Duration Index (SAIDI), System Average Interruption Frequency Index (SAIFI), and Momentary Average Interruption Frequency Index (MAIFI), with and without excludable major events for the past 10 years. In addition, the reports include System Average Interruption Duration Index Exceeding Threshold (SAIDIET), the minutes of AB 66 Page 4 sustained outages per customer per year exceeding a defined annual threshold of 150 minutes and the Estimated Restoration Time (ERT), which is the sum of the weighted accuracy of each outage divided by the number of customers who experienced an outage. (Weighted accuracy is determined by using the time in play and number of customers who received accurate estimates). 1)Local outage information . Currently, PG&E, SCE, and SDG&E provide real-time information on their websites showing locations and number of customers affected by outages. This information shows the start time of the outage, the estimated restoration time, the number of customers impacted, and the cause (if available). 2)Is another report necessary? AB 66 mandates that the PUC require electrical corporations to publish a report on local level system reliability problems. The report is to include the frequency and duration of interruptions in services ranked by areas with both the most frequent and longest outages. The report would be updated quarterly. A review of the current Reliability Reports on file at the PUC reveals that information is presented in a manner that does not provide the location of the areas that might be experiencing more frequent outages than perhaps other areas within the corporation's service area. An example of the data presented in the 2011 SDG&E report shows the following information: -------------------------------------------------------------- | CRITERIA |SAIDI | SAIFI | MAIFI |SAIDET|ERT | | | | | | | | |--------------------------+------+--------+-------+------+----| |Including PUC Major |567.59| 1.472 | 0.239 | - | - | |Events (2011) | | | | | | |--------------------------+------+--------+-------+------+----| |Excluding PUC Major |54.14 | 0.473 | 0.239 |26.24 |59% | |Events (2011) | | | | | | |--------------------------+------+--------+-------+------+----| |10-Year Average |155.49| 0.751 | 0.527 | - | - | |(2002-2011) Including PUC | | | | | | |Major Events | | | | | | |--------------------------+------+--------+-------+------+----| |10-Year Average |64.22 | 0.580 | 0.508 | - |- | |(2002-2011) Excluding PUC | | | | | | AB 66 Page 5 |Major Events | | | | | | -------------------------------------------------------------- This information is also available over the prior 10-year period but does not provide an understanding of where the utility may be experiencing frequent regional reliability issues because system averages don't provide insights into the data outliers: areas with high reliability and areas where service interruptions are more frequent. PG&E does provide regional information in its report. The regional information shows reliability indices in each of PG&E's Divisions. If a customer knows which Division services their area they might be able see whether their area was more or less reliable than other areas. However, the information does show information on what might be occurring within the Division. SDG&E did not provide regional information in its 2011 report. SCE shows circuit level statistics in its 2011 report. While these reports are very useful, information on the frequency and location of regions with reliability problems would help to give clarity and meaning to the incidents described in the statistical analyses. It should be noted that the electrical system is not deployed consistent with political boundaries of cities and counties. In addition, for security reasons, it may be necessary and appropriate to be less specific and instead generally indicate the regions when ranking frequency and location of regions with reliability problems. The PUC could solicit input from the electrical corporations on including regional information in the annual reliability reports and ensure that the data present regional reliability information aggregated to the level necessary to protect system security. In addition, it may not be necessary or useful to provide this information on a quarterly basis when what is actually being sought is a trend analysis: how frequently is a particular area within a service area having more frequent momentary or extended outages? Including a trend analysis in the current annual reporting requirement may be sufficient to achieve the author's desired results. 3)Is this information available now? The PUC Decision D9609045 AB 66 Page 6 requires that the electrical corporations "record and maintain reliability information specified in and provide it to any interested person within 30 days of a request. The Decision goes states "Reliability indices using a portion of the system (circuit, division, region, or district), or smaller time periods (no smaller than a month), should be recorded and provided to any interested person upon request." However, the information "for consumers" on the PUC's website does not provide consumers with information on what they can do if they are experiencing frequent service interruptions, so it is unclear how a customer who is troubled by frequent service interruptions might be able to find out if their problem is a widespread issue. All of the utilities website currently provide customer service contacts to help individual customers with outages but the utilities do not publish information on regional service reliability statistics. Customers are not informed that they can request region-specific outages information from their utility. The PUC supports AB 66 with an amendment to provide the PUC authority to suspend the program if it finds through a proceeding or rate case that the expenditures by the electrical corporation to provide this data are not justified, or the program is not effective at improving safety and reliability. The author may wish to amend the bill to require the PUC to order the electrical corporations to include a region-specific trend analysis, including frequency and duration of outages, in their annual system reliability reports. The region specific data should be disaggregated sufficiently to determine locations with highest and lowest reliability scores but aggregated sufficiently to provide confidentiality for purposes of security. The author may wish to amend the bill to require the PUC to require remediation if the reports repetitively identify the same region with frequent service interruptions, with consideration toward local permitting matters or a major event that may be a higher priority. The author may also wish to amend the bill to require the PUC to investigate, by January 1, 2015, whether a trend analysis of regional service reliability can be developed, regularly AB 66 Page 7 updated, and made publicly available by electrical corporations or the commission, in a manner that provides sufficient confidentiality for purposes of electrical system security. 2774.1. (a) The commission shall require an electrical corporation include information in the electrical corporation's annual reliability report, required pursuant to Decision 96-09-045,to publish and maintain on the electrical corporation's Internet Web site a report annual system reliability reporton system reliability, including, but not limited to, the frequency and duration of interruptions in services ranked by areas with both the most frequent and longest outages.The report shall be updated at least quarterly.The information shall be sufficiently aggregated to maintain electrical system security.(b) The commission shall use the information in the electrical corporation's annual reliability report, required pursuant to Decision 96-09-045, to require remediation if the reporting repetitively identifies the same region. In requiring mediation, the commission may consider mitigating factors that may impede an electrical corporation from implementing required remediation, such as local permitting matters or a major event that may be a higher priority. (c) The PUC to may order the electrical corporations to make trend analyses of regional service reliability more frequent and make those analyses publicly available by electrical corporations or the commission, in a manner that provides sufficient confidentiality for purposes of electrical system security. REGISTERED SUPPORT / OPPOSITION : Support California Public Utilities Commission (CPUC) (if amended) City of Rolling Hills Estates Ranch Palos Verdes City Council San Diego Gas & Electric (SDG&E) (if amended) South Bay Cities Council of Governments (SBCCOG) Opposition AB 66 Page 8 Pacific Gas and Electric (PG&E) (unless amended) Southern California Edison (SCE) Analysis Prepared by : Susan Kateley / U. & C. / (916) 319-2083