BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1409|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 1409
Author: Hill (D)
Amended: 4/21/14
Vote: 21
SENATE ENERGY, UTILITIES & COMMUNICATIONS COMM : 9-0, 4/29/14
AYES: Padilla, Fuller, Block, Cannella, Corbett, DeSaulnier,
Hill, Knight, Wolk
NO VOTE RECORDED: De Le�n, Pavley
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Public Utilities Commission: safety investigations
SOURCE : Author
DIGEST : This bill requires the California Public Utilities
Commission (PUC) 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.
ANALYSIS : Existing law:
1.Requires the PUC 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.
CONTINUED
SB 1409
Page
2
2.Requires the PUC 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.
This bill requires the PUC 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
PUC Accident Investigations . Investigations serve multiple
purposes. First, they enable utilities, PUC staff, and the
public to learn from accidents and, possibly, act to prevent
similar accidents from happening in the future. Second, they are
used by plaintiffs to build civil cases against utilities.
Third, they are a prerequisite for any PUC enforcement action.
Finally, the PUC 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 PUC received 82 natural gas incident reports and 93 electric
incident reports in 2009. 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 PUC has not produced an Electric, Natural Gas, and
Propane Safety Report since 2009.
PUC Disclosures . The PUC ordered its staff to disclose
PUC-generated reports, summaries, and correspondence regarding
completed PUC safety audits and investigations. The PUC
generally has done so for gas and electric audits, but not for
most investigations.
CONTINUED
SB 1409
Page
3
PUC Pending Rulemaking . The PUC 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 PUC 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.
Comments
This bill is part of the author's ongoing effort to encourage
the PUC to learn from, and then act on, information about safety
at regulated public utilities. The author states that it is
unclear whether commissioners and PUC 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 PUC management and the public, and
will be consistent with the PUC's focus on transparency in
safety matters."
Related Legislation
AB 1456 (Hill, Chapter 469, Statutes of 2012) requires the PUC
to develop performance metrics for gas safety.
AB 578 (Hill, Chapter 462, Statutes of 2012) requires the PUC to
address National Transportation Safety Board safety
recommendations regarding gas and rail.
SB 291 (Hill, Chapter 601, Statutes of 2013) required the PUC 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
JG:nl 5/9/14 Senate Floor Analyses
CONTINUED
SB 1409
Page
4
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****
CONTINUED