CC SR 20160301 D - Support AB 1800 Utility Outage Comp ClaimsRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 03/01/2016
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to express support for Assembly Bill No. 1800
regarding utility outage compensation claims
RECOMMENDED COUNCIL ACTION:
(1) Authorize the Mayor to sign a letter supporting Assembly Bill No. 1800 (AB 1800)
regarding utility outage compensation claims.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Kit Fox, AICP, Senior Administrative Analyst.,"
REVIEWED BY: Gabriella Yap, Deputy City Manager
APPROVED BY: Doug Willmore, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Draft support letter for AB 1800 (page A-1)
B. AB 1800 (page B-1)
C. AB 1800 fact sheet (page C-1)
BACKGROUND AND DISCUSSION:
The City of Rancho Palos Verdes and other cities in the South Bay have longstanding
concerns regarding the ineffective process by which Southern California Edison (SCE)
addresses residents' claims for compensation due to losses incurred as a result of
prolonged power outages. In 2015, the average duration of prolonged outages in
Rancho Palos Verdes exceeded three (3) hours, and the average annual frequency of
prolonged outages exceeded one (1) for each of the thirty (30) SCE circuits serving the
City's residents and businesses.
On the Palos Verdes Peninsula, SCE's aged infrastructure has caused fires and
repeated, prolonged power outages. The prolonged power outages adversely affect
residents in a variety of ways, particularly:
• Residents who have a variety of physical challenges and rely on a constant
source of power for medical devices;
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• Residents who are senior citizens and are particularly susceptible to injury if
power outages persist for a long period of time into the evening hours; and,
• Residents who suffer financial burdens as a result of losing food, medication and
other perishable items during prolonged power outages.
Last year, the City Council authorized Staff to prepare and present a resolution
regarding SCE's claims process and service reliability for the consideration of the
General Assembly at the annual California League of Cities (League) conference.
Although the City's resolution was not approved for presentation to the League's
General Assembly, the League's Environmental Quality Committee expressed interest
in investigating the claims processes and service reliability for all Investor -Owned
Utilities (IOUs) and Publicly -Owned Utilities (POUs) in the State.
At the same time that the City was preparing its League resolution, 66th District State
Assemblymember David Hadley took an active role in facilitating dialogue between the
City and SCE on this issue. One of the important facts revealed by this dialogue was
that only thirty-seven percent (37%) of claims filed against SCE in the past three (3)
years were successful. SCE expressed a commitment to improve and clarify the claims
process information on its website. However, as a result of these discussions,
Councilmember Anthony Misetich also impressed upon Assemblymember Hadley the
need for a legislative "fix" to this issue.
On February 8, 2016, Assemblymember Hadley introduced Assembly Bill No. 1800
(AB 1800) regarding utility outage compensation claims (see Attachments B & C). In
essence, AB 1800 would require all electrical IOUs and POUs to collect and annually
post on their websites the number of claims and outcomes of claims that customers
submit for reimbursement due to service interruptions caused by negligence on the
party of the utility. Specifically, AB 1800 will require the online posting of statistics
related to claims received, the results of those claims, the average time before a
judgment is made, and the average claim amount. The bill will also require IOUs and
POUs to publish the number of appealed claims and the result of those appeals. The
goal of AB 1800 is give utility ratepayers the information necessary to know if their
claims for reimbursement are being fairly and expeditiously processed, and to inspire
more confidence in the claims process. Staff has prepared a draft letter of support for
AB 1800 (Attachment A) for the City Council's consideration and approval at tonight's
meeting.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative actions are available
for the City Council's consideration:
Do not authorize the Mayor to sign the support letter for AB 1800.
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March 1, 2016
VIA FAX: (916) 319-2166
Honorable David Hadley
California State Assembly
State Capitol, Room 4102
Sacramento, CA 95814
RE: AB 1800 (Hadley): Utility Outage Compensation Claims.
Notice of Support
Dear Assemblymember Hadley:
On behalf of the City of Rancho Palos Verdes and its residents, I would like to convey our
support for AB 1800 regarding utility outage compensation claims.
Every year, electrical utility customers file claims for reimbursement for outages due to
utilities' negligence. Outages and service interruptions are inconvenient at best, and deadly
at worst. They can lead to spoiled food and prescription medication; damage to electronic
equipment and appliances due to energy interruptions; or failure in necessary medical
equipment for senior citizens and those with physical challenges.
Customers may file claims for reimbursement, but there is currently no way to know what
percentage of claims are being approved and denied, or how quickly, or the rationale behind
these decisions. Without readily accessible claims data, many customers assume that all
claims are denied. On the Palos Verdes Peninsula, Southern California Edison (SCE) has
recently confirmed that only 37% of claims filed over the past three (3) years were paid.
AB 1800 will require the online posting of statistics related to claims received, the results of
those claims, the average time before a judgment is made, and the average claim amount.
The bill will also require electrical utilities to publish the number of appealed claims and the
results of those appeals.
We appreciate your leadership on this important issue and, for these reasons, the City of
Rancho Palos Verdes supports AB 1800.
Sincerely yours,
Ken Dyda
Mayor, City of Rancho Palos Verdes
cc: Rancho Palos Verdes City Council
Doug Willmore, City Manager
Gabriella Yap, Deputy City Manager
Kit Fox, Senior Administrative Analyst
A-1
CALIFORNIA LEGISLATURE -2015-16 REGULAR SESSION
ASSEMBLY BILL No. 1800
Introduced by Assembly Member Hadley
February 8, 2016
An act to add Chapter 6 (commencing with Section 8390) to Division
4.1 of the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1800, as introduced, Hadley. Utility outage compensation claims:
annual posting.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations, while
local publicly owned electric utilities are under the direction of their
governing boards. Existing law requires each electrical corporation to
report annually on its compliance with specified standards or rules
adopted by the commission, including, but not limited to, standards for
operation, reliability, and safety during periods of emergency and
disaster.
This bill would require each electrical corporation and local publicly
owned electric utility to annually post on its Internet Web site specified
information relating to utility outage compensation claims for the
previous year.
Vote: majority. Appropriation: no. Fiscal committee: no.
State -mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Chapter 6 (commencing with Section 8390) is
2 added to Division 4.1 of the Public Utilities Code, to read:
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CHAPTER 6. ELECTRICAL UTILITY OUTAGE COMPENSATION
CLAIMS
8390. Each electrical corporation and local publicly owned
electric utility shall annually post on its Internet Web site all of
the following information relating to utility outage compensation
claims for the previous year:
(a) Applications still open from the previous year.
(b) New applications received.
(c) The number of incomplete applications received.
(d) Total number of incomplete applications that were still left
incomplete by the end of the year.
(e) Pool of total applicants awaiting determination or judgment
at the end of the year.
(f) Progress on processing applications.
(g) Current average time taken to process applications.
(h) The number of applications approved.
(i) The percentage of applications approved.
0) The number of applications denied.
(k) The average number of days it took to close approved
applications.
(0 The average number of days it took to close denied
applications.
(m) The number of denied applications that were subsequently
appealed.
(n) The number of successful appeals from denied applications.
(o) For the Successful appeals, the average number of days
between the submission of the appeal and the closing of the appeal.
(p) The average amount paid for successful claims.
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CAPITOL OFFICE Zlg!5enlbtp California Zegi!gtature
State Capitol DAVID HADLEY
Sacramento, CA 94249-0066
(916) 319-2066 ASSEMBLYMAN, 66TH DISTRICT
FAX (916) 319-2166
DISTRICT OFFICE
23211 Hawthorne Blvd. 'r
Suite 200A
Torrance, CA 90505 ,
(310) 375-0691,
FAX (310) 375-8245
FACT SHEET
Assemblyman David Hadley
COMMITEES
Vice Chair: Aging and Long
Term Care
Arts, Entertainment, Sports,
Tourism, and Internet Media
Banking and finance
Natural Resources
Utilities and Commerce
Joint Committee on Arts
Assembly Bill 1800: Reporting Claims for Utility Service Interruptions
SUMMARY
Assembly Bill 1800 will require all electrical
Investor Owned Utilities (IOUs) and Publicly
Owned Utilities (POUs) to collect and
annually post on their websites the number
of claims and outcomes of claims that
customers submit for reimbursement due to
service interruptions caused by negligence
on the part of the utility.
ISSUE BACKGROUND
Every year customers of IOUs and POUs
file claims for reimbursement for outages
due to negligence. Outages and service
interruptions are inconvenient at best, and
deadly at worst. They can lead to spoiled
food and prescription medication, damage
to products due to energy interruptions, or
failure in necessary equipment for senior
citizens and those with physical challenges
Customers file claims for reimbursement but
there is currently no way to know what
percentage of claims are being approved
and denied, or how quickly, or the rationale
behind these decisions. Without readily
accessible claims data, many customers
assume all claims are denied.
SOLUTION
This bill will require utilities to post data that
is currently inaccessible to the public. This
will help ensure claims are being fairly
evaluated and expeditiously resolved.
Specifically AB 1800 will require the online
posting of statistics related to claims
received, the results of those claims, the
average time before a judgment is made,
and the average claim amount. The bill will
also require IOUs and POUs to publish the
number of appealed claims and the result of
those appeals.
AUTHOR'S STATEMENT
"AB 1800 will give utility ratepayers the
information necessary to know if their claims
for reimbursement are being fairly and
expeditiously processed, and will inspire
more confidence in the claims process."
Assemblyman David Hadley
SUPPORT
OPPOSITION
For More Information: Lyndsay Mitchell, Legislative Director
916-319-2066, Lyndsay.mitcheligasm.ca.gov �+ ��
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