BILL ANALYSIS �
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
SB 1409 - Hill Hearing Date:
April 29, 2014 S
As Amended: April 21, 2014 FISCAL B
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DESCRIPTION
Current law requires the California Public Utilities Commission
(CPUC) to investigate the cause of all accidents occurring
within this state upon the property of any public utility that
results in loss of life or injury to person or property. (Public
Utilities Code � 315)
Current law requires the CPUC to develop and publish by February
1 of each year an annual workplan for the Governor, the
Legislature, and the public. The workplan shall describe
transactions, ratemaking proceedings, and other decisions;
explain achievements and proposed activities relating to
reducing energy rates; and report the number of cases where
resolutions exceeded the time periods prescribed in scoping
memos as well as the number of days that commissioners presided
in hearings. (Public Utilities Code � 321.6)
This bill would require the CPUC to add to its annual workplan a
succinct description of each safety investigation in progress or
completed within the last year, including the reason for the
investigation, the facility type involved, and the owner of the
facility.
BACKGROUND
CPUC Accident Investigations - Investigations serve multiple
purposes. First, they enable utilities, CPUC staff, and the
public to learn from accidents and, possibly, act to prevent
similar accidents from happening in the future. Second, they are
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used by plaintiffs to build civil cases against utilities.
Third, they are a prerequisite for any CPUC enforcement action.
Finally, the CPUC may use investigation reports to determine
whether the expenses in settling accident claims against
utilities are a reasonable business expense or instead a result
of imprudent utility management and therefore not recoverable in
future rates.
The CPUC received 82 natural gas incident reports and 93
electric incident reports in 2009<1>. Many investigations are
completed within a couple of months; however, investigations
involving fatalities often take multiple years. It is difficult
to assess whether these 175 incidents have been fully
investigated - not to mention resolution of incidents that have
occurred since 2009 - because the CPUC has not produced an
Electric, Natural Gas, and Propane Safety Report since 2009.
CPUC Disclosures - The CPUC ordered<2> its staff to disclose (on
its website, without a vote of the Commission) CPUC-generated
reports, summaries, and correspondence regarding completed CPUC
safety audits and investigations. The CPUC generally has done so
for gas<3> and electric<4> audits, but not for most
investigations.
CPUC Pending Rulemaking - The CPUC has indicated that it will
open a proceeding (or add a phase to an existing proceeding) to
implement SB 291 (Hill, Chapter 601, Statutes of 2013), which
requires the CPUC to implement an electric safety enforcement
program by January 1, 2015 and a gas safety enforcement program
by July 1, 2014, including procedures for investigations. The
committee staff are unaware of any scoping memo on the topic.
COMMENTS
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<1> http://tinyurl.com/n89smau
<2>
http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M050/K423/50
423132.PDF
<3>
http://www.cpuc.ca.gov/PUC/safety/Pipeline/Natural+Gas+Audits.htm
<4>
http://www.cpuc.ca.gov/PUC/aboutus/Divisions/Consumer+Protection/
ESRB/Audit+Schedule+and+Reports.htm
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1. Author's Statement . This bill is part of the author's
ongoing effort to encourage the CPUC to learn from, and
then act on, information about safety at regulated public
utilities. The author asserts that it is unclear whether
commissioners and CPUC management are aware of how long it
takes to complete accident investigations. If they were
aware, they might "have been inclined to argue for
additional electrical safety positions in the last two
budget cycles, and the Legislature may have approved such
positions. An annual reporting requirement will raise the
profile of accident investigations with CPUC management and
the public, and will be consistent with the CPUC's focus on
transparency in safety matters."
2. Minimal Ratepayer Impact . This bill is not expected to
result in rate increases, decreases, or cost shifts for
customers. Additional staff time may be necessary to
prepare the expanded workplan proposed in this bill.
3. Related Legislation .
AB 1456 (Hill, Chapter 469, Statutes of 2012) required the
CPUC to develop performance metrics for gas safety.
AB 578 (Hill, Chapter 462, Statutes of 2012) and SB 1064
(Hill, 2014) require the CPUC to address National
Transportation Safety Board safety recommendations
regarding gas and rail. SB 1064 Status: Set for hearing in
the Senate Appropriations Committee April 28th.
SB 291 (Hill, Chapter 601, Statutes of 2013) required the
CPUC to develop gas and electric safety enforcement
programs that include procedures for investigations, among
others.
SB 900 (Hill, 2014) requires that safety performance
information be placed into the record of rate case
proceedings. Status: Set for hearing in the Senate
Appropriations Committee April 28th.
POSITIONS
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Sponsor:
Author
Support:
None on file
Oppose:
None on file
Alexis Erwin
SB 1409 Analysis
Hearing Date: April 29, 2014
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