BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 66
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          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  








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            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  








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            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  








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            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 |      |        |       |      |    |








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            |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  








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            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  








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            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 report  on 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 
           








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          Pacific Gas and Electric (PG&E) (unless amended)
          Southern California Edison (SCE)
           
          Analysis Prepared by  :    Susan Kateley / U. & C. / (916)  
          319-2083