RPVCCA_CC_SR_2015_06_30_O_SCE_Prolonged_Power_OutagesCITY OF RANCHO
PALOS VERDES
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: CAROL W. LYNCH, CITY ATTORNEY
DATE: JUNE 30, 2015
SUBJECT: SOUTHERN CALIFORNIA EDISON PROLONGED POWER OUTAGES
Recommendation
Authorize the Mayor to sign the attached letters to Senator Ben Allen and Assemblyman
David Hadley.
Background
The State Public Utilities Commission (PUC) has the authority to impose penalties on
utilities, including for prolonged power outages and did so in connection with the
extreme wind event that occurred in 2011. However, the PUC is not authorized to
award claims to residents for prolonged electrical power outages. If a resident has a
claim he or she wishes to pursue, the resident must file a claim with Southern California
Edison Company (Edison) along with documentation of the financial loss that was
incurred. If the claim 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.
Edison 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 still will not receive
compensation for those claims.
Proposed Legislation
The attached letter proposes legislation that will provide rebates in flat amounts to
Edison customers for extended power outages that exceed 24 hours in length. This
legislation would avoid the frustrating Edison claims process; it would provide a direct
remedy to Edison customers who have suffered a relatively small financial loss (usually
the loss of perishable food), and it may incentivize Edison to restore power more quickly
to its customers.
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Southern California Edison Prolonged Power Outages
June 30, 2015
Page 2 of 3
At the last City Council meeting, Council Members inquired if any other California cities
had made a similar proposal. Although City Staff contacted the staff at the League's
Legislation & Policy Development Division and CPUC's Safety & Enforcement Division,
Staff's phone calls have not been returned as of the preparation of this staff report, and
Staff has not located any information indicating that other California cities have made a
similar request. Any additional information that is obtained after the agenda packet is
released will be reported to the City Council at this evening's meeting.
A review of information on the Internet demonstrates that like California, other states
(including New York, New Jersey, Massachusetts and Maryland) have commissions
that regulate public utilities that have imposed penalties upon utilities for prolonged
power outages. However, in that review, Staff did not locate legislation providing direct
rebates to customers for prolonged power outages.
At the last study session, the City Council also inquired about the amount of the refunds
that were proposed and if they are too low. In proposing the additional amounts, there
was a concern that if the amount of the refunds is too high, Edison will be able to use
that as a basis to oppose the Legislation. Nonetheless, given the cost of food and other
perishable items, and as a result of the Council's discussion at the last study session,
the proposed amounts have been doubled, and would be 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 $50.00 for the first 24-hour period following the initial twenty-four hours
of the outage and $100 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 $100 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 $50.00 for the first 24-hour period following the initial twenty-four hours
of the outage and an additional $100 for each additional day thereafter that the
power is not restored.
These amounts are just suggestions, and the City Council should provide direction to
Staff about the amounts of the refunds that should be proposed in the letters to Senator
Allen and Assemblyman Hadley.
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Southern California Edison Prolonged Power Outages
June 30, 2015
Page 3 of 3
Conclusion
Staff recommends that the City Council give additional direction to Staff about the
content of the letters so they can be sent to Senator Allen and Assemblyman Hadley to
determine if either or both of them would be willing to sponsor legislation that will
provide direct rebates to Edison customers that are affected by prolonged power
outages and thereby make Edison more accountable to its customers.
Attachments:
Draft letter to Senator Ben Allen (page 4)
Draft letter to Assemblyman David Hadley (page 6)
9
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.
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
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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 $50.00 for the first 24-hour period following the initial twenty-four hours
of the outage and $100 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 $100 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 $50.00 for the first 24-hour period following the initial twenty-four hours
of the outage and an additional $100 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
5
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.
Al
•
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 $50.00 for the first 24-hour period following the initial twenty-four hours
of the outage and $100 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 $100 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 $50.00 for the first 24-hour period following the initial twenty-four hours
of the outage and an additional $100 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
7