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RPVCCA_CC_SR_2013_04_02_F_Support_For_State_Assembly_Bill_66CITY OF MEMORANDUM ?ho RANCHO PALOS VERDES TO: FROM: DATE: SUBJECT: REVIEWED: Staff Coordinator: HONORABLE MAYOR &CITY COUNCIL MEMB~ CAROLYNN PETRU,DEPUTY CITY MANAGER~~ep APRIL 2,2013 SUPPORT FOR STATE ASSEMBLY BILL 66 (AB 66) ESTABLISHING MANDATORY UTILITY OUTAGE REPORTING CAROLYN LEHR,CITY MANAGER ~~(').,. Matt Waters,Senior Administrative Analyst @ RECOMMENDATION Authorize the Mayor to sign the draft letter in support of State Assembly Bill 66 (AB 66), which would require utility providers regulated by the California Public Utilities Commission (PUC)to publish the frequency and duration of power outages in their service areas. INTRODUCTION State Assemblymember AI Muratsuchi recently introduced AB 66,which,if enacted, would require California utility providers regulated by the California Public Utilities Commission (PUC)to publish the frequency and duration of power outages on their website.The published information would then be updated quarterly. BACKGROUND Peninsula cities,including Rancho Palos Verdes,experience numerous power outages yearly.These outages are a source of significant frustration,inconvenience and substantial financial loss for City residents.There have been over 100 unplanned outages within the City limits from 2008-2011. The power outages and SCE-related electrical equipment problems have heightened concerns about potential risk.Fires associated with electrical equipment failures pose a threat to the lives and property of City residents as well as to the viability of the City's open space areas. Following a number of extended power outages in late 2011 and the January 9'2012 Crest Fire,the RPV City Council authorized then Mayor Anthony Misetich to send a letter to SCE,dated Feb.28,2012,strongly encouraging SCE to take appropriate measures to reduce the frequency and duration of power outages.Subsequently, F-1 Support For AB 66:Mandatory Utility Outages Reporting April 2,2013 Page 2 SCE's Regional Manager of Public Affairs,Marvin Jackmon appeared at a July 17, 2012 Council meeting to discuss power outages,fires related to SCE equipment and plans for infrastructure improvements.Following that meeting,the Council sent a letter dated October 30,2012 to the PUC and SCE emphasizing the impact of "power outages,electrical system failures,fires and equipment installation on residents of the City of Rancho Palos Verdes (RPV)."Mr.Jackmon then made a second presentation at the December 4,2012 Council meeting to discuss SCE's long-term plans to address electrical infrastructure. DISCUSSION Mayor Brooks,along with several City Councilmembers and City Manager Lehr, discussed the issue of electrical outages and utility reliability problems with newly- elected State Assemblymember Muratsuchi and other legislators during the California Contract Cities Association annual legislative tour in Sacramento in early January.AB 66's information sheet references the concerns about fires and outages raised in the City's July 17,2012 staff report.Assemblymember Muratsuchi asked the City to formally support AB 66.AB 66 was introduced in the Assembly on January 7,2012 and was referred to the Standing Committee on Utilities and Commerce on March 18,2013. AB 66 requires electric companies such as SCE to publish a quarterly report on reliability issues and problems on their websites.The report would show both the frequency and duration of electrical outages by area.According to information provided by Assemblymember Muratsuchi's office,AB 66 would: •Allow the electrical providers,rate payers,and regulators to identity where the most frequent outages occur. •Assist the utilities in focusing their maintenance funds in the areas where the outages are most frequent. •Increase the effectiveness of the PUC and rate-making process by giving the public access to information on outages. •Enable utility companies to better justify their costs towards maintenance by allowing their consumers to see where problems are the most frequent and severe. •Highlight the need for sustainable infrastructure for all Californians. •Would provide Californians with information they have a right to know,and provide a mechanism for accountability for rate payers. The Rolling Hills Estates City Council approved sending a letter of support for AB 66 on March 27,2013 and the South Bay Cities Council of Governments (SBCCOG)has recommended that its Board of Directors support the bill. FISCAL IMPACT There is no known fiscal impact. F-2 Support For AB 66:Mandatory Utility Outages Reporting April 2,2013 Page 3 Attachments: Assembly Bill 66 Information Sheet Draft Letter from Mayor Brooks to PUC F-3 Assembly Bill 66 (Muratsuchi) Public Safety:Utility Outage Reporting SUMMARY This bill would require utility providers regulated by the Public Utility Commission to publish the frequency and duration of power outages in their service areas on their website and update the information quarterly. BACKGROUND Since 2008,the ~ity of Rancho Palo Verdes and other cities on the Palo Verdes Peninsula have dealt with an average oftwenty-six power outages a year.A 2012 Rancho Palo Verdes staff report cited over 100 unscheduled outages from 2008-2011 occurring within the city. • • • • • Assist the utilities focus their maintenance funds in the areas where the outages are most frequent. Increase the effectiveness of the Public Utilities Commission and rate making process by giving the public access to information on outages. Utility companies can better justify their costs towards maintenance by alloWing their consumers to see where problems are the most frequent and severe. Would highlight the need for sustainable infrastructure for all Californians. Strengthens the commission's regulation and enforcement of General Rate Case applications by prOViding updated information about the region quarterly. These power outages have raised concerns about the frequent open space fires caused by electrical failures and accidents that threaten lives and property.Since 2005,there have been at least three fires attributed to service disruptions in the region.Outage related fires have resulted in approximately 200 open space acres being destroyed.Inconsistent electricity service in Rancho Palo Verdes and throughout the South Bay has resulted in growing frustration amongst ratepayers in the region. AB 66 mandates that the California Public Utilities commission reqUire electrical corporations to publish a report on local level system reliability problems.The report will include the frequency and duration of interruptions in services ranked by areas with both the most frequent and longest outages.The report would be updated quarterly. NEED FOR THE BILL AB 66 would prOVide much needed transparency and accountability for Californian rate payers.AB 66 would: •Allow the electrical providers,rate payers,and regulators to identify where the most frequent outages occur. Last Updated 5-Mar-13 Simple accessibility to this information will create reliability and trust between Californians and their utility prOViders.Transparency has been shown to be good for business and for consumer relations.AB 66 prOVides Californians with information they have a right to know,and provides a mechanism for accountability for rate payers. SUPPORT Rancho Palo Verdes OPPOSITION None Known CONTACTS Timothy Kamermayer (916)319-2066 Timothy.Kamermayer@asm.ca.gov F-4 April 2,2013 The Honorable AI Muratsuchi Assemblymember,66th A.D. State Capitol Sacramento,CA 95814 SUBJECT:Support for Assembly Bill 66:Mandatory Utility Outage Reporting Dear Assemblymember Muratsuchi: The RPV City Council authorized me at our April 2,2013 meeting to send this letter expressing our unqualified support for Assembly Bill 66 (AB 66).Thank you for introducing this important piece of proposed legislation to the Assembly. The City Council is very concerned about the impact of power outages,electrical system failures and associated fires on residents of the City of Rancho Palos Verdes (RPV).The effect on our residents from planned and unplanned outages and the related impact of fires on habitat,wildlife,structures,and most importantly human lives is an important community issue that merits attention.Hundreds of acres of precious native habitat have been burned by several large fires in recent years.Additionally there have been over a hundred unscheduled Southern California Edison (SCE)outages from 2008-2011 which are a continuing sources of frustration,inconvenience and financial loss to City residents. The City supports AB 66's requirement that electric companies such as SCE publish a quarterly report on reliability issues and problems on their websites.The report would show both the frequency and duration of electrical outages by area.We agree with and support your position that AB 66 would: •Allow the electrical providers,rate payers,and regulators to identity where the most frequent outages occur. •Assist the utilities in focusing their maintenance funds in the areas where the outages are most frequent. •Increase the effectiveness of the PUC and rate-making process by giving the public access to information on outages. •Utility companies can better justify their costs towards maintenance by allowing their consumers to see where problems are the most frequent and severe. •Highlight the need for sustainable infrastructure for all Californians. F-5 Support For State Assembly Bill 66:Mandatory Utility Outage Reporting April 2,2013 Page 2 •Provide Californians with information they have a right to know,and provide a mechanism for accoLintability for rate payers. Speaking on behalf of the Rancho Palos Verdes City Council and the residents of Rancho Palos Verdes,I whole-heartedly offer our support for Assembly Bill 66. Sincerely, Susan Brooks Mayor cc:California Public Utilities Commission Rancho Palos Verdes City Council Carolyn Lehr,Rancho Palos Verdes City Manager F-6