RPVCCA_CC_SS_2015_06_16_02_SoCal_Edison_Prolonged_Power_OutagesCITY OF RANCHO PALOS VERDES
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: COUNCILMAN ANTHONY MISETICH
DATE: JUNE 16, 2015
SUBJECT: SOUTHERN CALIFORNIA EDISON PROLONGED POWER OUTAGES
Recommendation
Direct staff to place the letter on the Consent Calendar of the next regular City Council
meeting.
Background
Attached to this report is a letter regarding Southern California Edison's claims process
that I propose we send to our state legislators.
The PUC cannot award claims to residents. If a resident has a claim he or she wishes
to pursue, the resident first must file a claim with Edison, and if it is rejected, the
resident then must file a lawsuit against Edison (probably in small claims court). Most
residents will not want to spend the time and effort to pursue small claims for monetary
damages arising from extended power outages. I believe that Edison counts on the fact
that most Edison customers will not pursue claims in court.
Edison also only awards claims for damages caused by its own negligence. This
means that if an extended power outage is caused by a weather-related event, the
claim will be denied. The Edison website also states that it will not cover claims for
power surges. Since Edison often moves power from one line to another to enable
repairs, etc., Edison can be the cause of the power surge, but residents won't receive
compensation for those claims either.
New Legislation
The letter proposes legislation that will provide rebates in flat amounts to Edison
customers for extended power outages that exceed 24 hours in length. This will avoid
the frustrating Edison claims process; it will provide a direct remedy to Edison
customers who have suffered a small financial loss (usually perishable food), and it may
incentivize Edison to restore power more quickly to its customers.
I would like to place this letter on the consent calendar on the next City Council meeting.
1
, 2015
Honorable Senator Ben Allen
State Capitol, Room 2054
Sacramento, CA 95814
Dear Senator Allen:
The City Council of the City of Rancho Palos Verdes is writing to you on behalf of its
residents to express our collective concerns regarding the ineffective process by which
the Southern California Edison Company ("Edison") addresses residents' claims and to
obtain your assistance in correcting that process. Although we write on behalf of our
residents, we believe that these concerns apply to all of the areas and customers that
are served by Edison.
By way of background, on the Palos Verdes Peninsula, Edison's aged infrastructure has
caused fires and repeated, prolonged power outages. The prolonged power outages
are the focus of this request, because they adversely affect the City's residents in a
variety of ways.
In particular, the City Council is deeply concerned for:
1. Residents who have a variety of physical challenges and rely on a constant
source of power for medical devices;
2. 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
3. Residents who suffer financial burdens as a result of losing food, medication and
other perishable items during prolonged power outages.
Edison's claims process does not cover planned power outages, regardless of whether
the outage extends beyond the estimated timeframe that was given by Edison. In
addition, Edison's claims process does not apply to unplanned power outages, unless
the outage was caused by a failure of Edison's equipment. (In the City's experience,
Edison will not acknowledge responsibility for the failure of its equipment and will fight
tooth and nail to disavow such responsibility, even when faced with irrefutable facts to
the contrary.) Further, if the outage is caused by an outside event, such as a
windstorm, any resulting outage is not eligible for reimbursement pursuant to the Edison
claims process, which reduces Edison's incentive to restore the power promptly in these
circumstances. This is true even when the resident provides documentation of financial
loss due to items such as food spoilage.
R6876-0001\1844198v1.doc
The City Council is aware that the Public Utilities Commission (PUC) has recognized
these issues previously when it penalized Edison in the amount of $24.5 million as a
result of the prolonged power outages that followed the unusual wind event in 2011.
However, that penalty does not seem to have affected Edison's attitude towards its
customers. In our view, Edison's customers need to receive immediate compensation
from Edison for prolonged power outages without having to go through Edison's claim
process.
For these reasons, the Rancho Palos Verdes City Council requests that you propose
legislation that will require Edison to modify its processes as follows:
Planned power outages should not exceed one day (24 hours) in length. If that
time period is exceeded, Edison should be required to give each customer that is
affected by the extended outage an immediate credit on the customer's bill in the
amount of $25.00 for the first 24-hour period following the initial twenty-four hours
of the outage and $50 for each additional day thereafter that the power is not
restored.
2. Any customer who loses electrical power due to an unplanned outage that is
caused by a failure of Edison's equipment should receive a credit in the amount
of $50 per day for each twenty-four hour period during which the power is not
restored.
3. Any customer who loses electrical power due to an unplanned outage that is
caused by an external cause, such as a windstorm, should receive a credit in the
amount of $25.00 for the first 24-hour period following the initial twenty-four hours
of the outage and an additional $50 for each additional day thereafter that the
power is not restored.
These penalties are designed to provide direct compensation to Edison's customers
who are adversely affected by prolonged power outages and to incentivize Edison to
restore the power as quickly as possible. They also will eliminate the frustration that
Edison's customers experience as a result of Edison's existing claim process.
The City Council will be requesting other governmental entities, the League of California
Cities and the California Contract Cities Association to support this legislation that will
make Edison directly accountable to its customers.
Thank you for your anticipated assistance with this important issue.
Very truly yours,
Mayor Knight and the Members of the City Council of the City of Rancho Palos Verdes
R6876-0001\1 844198v l .doc -2 "
, 2015
Honorable Assemblyman David Hadley
State Capitol, Room 4102
Sacramento, CA 95814
Dear Assemblyman Hadley:
The City Council of the City of Rancho Palos Verdes is writing to you on behalf of its
residents to express our collective concerns regarding the ineffective process by which
the Southern California Edison Company ("Edison") addresses residents' claims and to
obtain your assistance in correcting that process. Although we write on behalf of our
residents, we believe that these concerns apply to all of the areas and customers that
are served by Edison.
By way of background, on the Palos Verdes Peninsula, Edison's aged infrastructure has
caused fires and repeated, prolonged power outages. The prolonged power outages
are the focus of this request, because they adversely affect the City's residents in a
variety of ways.
In particular, the City Council is deeply concerned for:
1. Residents who have a variety of physical challenges and rely on a constant
source of power for medical devices;
2. 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
3. Residents who suffer financial burdens as a result of losing food, medication and
other perishable items during prolonged power outages.
Edison's claims process does not cover planned power outages, regardless of whether
the outage extends beyond the estimated timeframe that was given by Edison. In
addition, Edison's claims process does not apply to unplanned power outages, unless
the outage was caused by a failure of Edison's equipment. (In the City's experience,
Edison will not acknowledge responsibility for the failure of its equipment and will fight
tooth and nail to disavow such responsibility, even when faced with irrefutable facts to
the contrary.) Further, if the outage is caused by an outside event, such as a
windstorm, any resulting outage is not eligible for reimbursement pursuant to the Edison
claims process, which reduces Edison's incentive to restore the power promptly in these
circumstances. This is true even when the resident provides documentation of financial
loss due to items such as food spoilage.
R6876-0001\1 844198v l .doc
The City Council is aware that the Public Utilities Commission (PUC) has recognized
these issues previously when it penalized Edison in the amount of $24.5 million as a
result of the prolonged power outages that followed the unusual wind event in 2011.
However, that penalty does not seem to have affected Edison's attitude towards its
customers. In our view, Edison's customers need to receive immediate compensation
from Edison for prolonged power outages without having to go through Edison's claim
process.
For these reasons, the Rancho Palos Verdes City Council requests that you propose
legislation that will require Edison to modify its processes as follows:
Planned power outages should not exceed one day (24 hours) in length. If that
time period is exceeded, Edison should be required to give each customer that is
affected by the extended outage an immediate credit on the customer's bill in the
amount of $25.00 for the first 24-hour period following the initial twenty-four hours
of the outage and $50 for each additional day thereafter that the power is not
restored.
2. Any customer who loses electrical power due to an unplanned outage that is
caused by a failure of Edison's equipment should receive a credit in the amount
of $50 per day for each twenty-four hour period during which the power is not
restored.
3. Any customer who loses electrical power due to an unplanned outage that is
caused by an external cause, such as a windstorm, should receive a credit in the
amount of $25.00 for the first 24-hour period following the initial twenty-four hours
of the outage and an additional $50 for each additional day thereafter that the
power is not restored.
These penalties are designed to provide direct compensation to Edison's customers
who are adversely affected by prolonged power outages and to incentivize Edison to
restore the power as quickly as possible. They also will eliminate the frustration that
Edison's customers experience as a result of Edison's existing claim process.
The City Council will be requesting other governmental entities, the League of California
Cities and the California Contract Cities Association to support this legislation that will
make Edison directly accountable to its customers.
Thank you for your anticipated assistance with this important issue.
Very truly yours,
Mayor Knight and the Members of the City Council of the City of Rancho Palos Verdes
R6876-0001\1 844198v l .doc -2