BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2584
                                                                  Page  1

          Date of Hearing:   April 16, 2012

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                               Steven Bradford, Chair
                 AB 2584 (Bradford) - As Amended:  February 24, 2012
          
          SUBJECT  :   Unplanned Service Outages:  Retention of Evidence

           SUMMARY  :   AB 2584 requires electrical and gas corporations to 
          retain all unaltered evidence pertaining to an unscheduled 
          service outage for 5 days if such retention does not impair 
          public safety or the return of service.  Specifically,  this 
          bill  :  

          1) Requires every electrical corporation and gas corporation 
          that has an unplanned service outage resulting from an accident, 
          natural event, or caused by the unplanned act of a utility 
          employee, to preserve and not dispose of any materials that 
          evidence the cause of the unplanned outage for 5 business days 
          following the unplanned outage.

          2) Provides that if the evidence of the cause of an unplanned 
          outage must be altered to restore utility service or to protect 
          public safety, the electrical corporation or gas corporation is 
          required to identify those utility facilities that have been 
          altered and preserve those materials that were unnecessary for 
          the restoration of service or protection of the public safety.

          3) States that the duty to preserve evidence of unplanned 
          outages is inapplicable if during the five-day holding period, 
          the California Public Utilities Commission (PUC) notifies the 
          utility that it has concluded any investigation it intends to 
          conduct as to the reasons for the outage.

           EXISTING LAW  

          1)States the PUC has regulatory authority over public utilities, 
            including electrical and gas corporations.

          2)Requires the PUC to adopt inspection, maintenance, repair, and 
            replacement standards for the distribution systems of 
            electrical corporations in order to provide high quality, 
            safe, and reliable service.

          3)Requires the PUC to conduct a review to determine whether the 








                                                                  AB 2584
                                                                  Page  2

            standards have been met and to perform the review after every 
            major outage.

          4)Provides that any violation of the Public Utilities Act or any 
            PUC order, decision, rule, direction, demand, or requirement 
            is a crime.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   


           1)Author's Statement  : At a Joint Hearing of the Assembly 
            Utilities & Commerce Committee and the Joint Legislative 
            Committee on Emergency Management, the PUC reported that 
            materials and equipment that would have been useful for 
            determining the cause of a widespread and lengthy power outage 
            may have been destroyed. This bill will make it clear that 
            evidence related to an outage shall be preserved until the PUC 
            has determined that it can be released.

           2)Background  :   On April 22, 1911, the Legislature passed an act 
            (Chapter 499, Statutes of 1911) which regulated the erection 
            and maintenance of poles, wires, etc. employed in overhead 
            electric line construction.   In 1915 the Legislature issued 
            Chapter 600, which amended Chapter 499 and required the 
            Railroad Commission (the PUC's predecessor) to inspect all 
            such work.


            On May 1, 1922, the Railroad Commission issued its General 
            Order No. 64 covering rules and regulations for overhead 
            electric line construction. On December 17, 1928, General 
            Order 64-A was issued applicable to lines constructed or 
            reconstructed on and after that date.


            Since that time, the PUC has issued its General Order No. 95 
            that pertains to the Rules for Overhead Electric Line 
            Construction.  Contained in General Order 95 is CPUC Rule 19 
            which orders each regulated utility with electric lines on its 
            duties for preserving evidence related to accidents. 


          3)  Service Outages:  While Californians like to believe that 








                                                                  AB 2584
                                                                  Page  3

            "blackouts" ceased with the closure of the California Energy 
            Crisis in 2001-2, outages for various reasons continue today 
            and remain a significant safety risk.  On September 8, 2011, 
            more than 4 million people lost power after the North 
            Gila-Hassayampa 500 kV transmission line was tripped offline, 
            triggering a massive blackout in Mexico, Southern California 
            and Arizona. Usually this type of outage would have been 
            isolated to the Yuma area.  Questions have arisen as to why 
            this wasn't the case.  San Diego Gas & Electric (SDG&E) said 
            that 1.4 million customers were affected.  Two million more 
            people were reported to be without power in Mexico.  A 
            multi-stage restoration plan was needed to restore all power.  


            Then on November 30, 2012 and December 1, 2012, a windstorm 
            with gusts of 60-80 mph hit the Los Angeles area knocking out 
            power to more than 250,000 residents.  A number of residents 
            were without service for 7 days.  


          4)The author may wish to consider codifying Rule 19 from General 
            Order 95:

             

            SUGGESTED AMENDMENT  :  Strike all language in AB 2584 and 
            insert the following language:



             Each utility shall provide full cooperation to the commission 
            in an investigation into any major accident or any reportable 
            incident regardless of pending litigation or other 
            investigations, including those which may be related to a 
            commission investigation. Once the scene of the incident has 
            been made safe and service has been restored, each utility 
            shall provide the commission, upon request, immediate access 
            to:  

             

               a)     Any factual or physical evidence under the utility 
                 or utility agent's physical control, custody, or 
                 possession related to the incident;









                                                                 AB 2584
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               b)     The name and contact information of any known 
                 percipient witness;

               c)     Any employee percipient witness under the utility's 
                 control;

               d)     The name and contact information of any person or 
                 entity that has taken possession of any physical evidence 
                 removed from the site of the incident;

               e)     Any and all documents under the utility's control 
                 that are related to the incident and are not subject to 
                 the attorney-client privilege or attorney work product 
                 doctrine.



            Any and all documents or evidence collected as part of the 
            utility's own investigation related to the incident shall be 
            preserved for at least five years. 
           
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Public Utilities Commission (CPUC) (if amended)

           Opposition 
           
          PacifiCorp
           
          Analysis Prepared by  :    Susan Kateley / U. & C. / (916) 
          319-2083