/ STATE OF CONNECTICUT
DEPARTMENT OF ENERGY AND ENVIRONMENTAL PROTECTION
PUBLIC UTILITIES REGULATORY AUTHORITY
TEN FRANKLIN SQUARE
NEW BRITAIN, CT 06051
Docket No. 12-06-0912-06-09 / PURA Establishment of Performance Standards for Electric and Gas CompaniesPURA Establishment of Performance Standards for Electric and Gas CompaniesNobember 1, 2012
By the following Directors:
Arthur H. HouseJohn W. Betkoski, III
DECISION
Page 2
TABLE OF CONTENTS
I. Introduction 1
A. Summary 1
B. Background 1
C. Conduct of Proceeding 3
D. Participants 3
II. Authority Analysis 4
A. Adoption of Standards 4
B. Reporting Requirements of Sections 3 and 4 of the Act 5
1. Section 3(b), System Hardening 5
2. Sections 3(c)1 and 3(c)2, Current Practices 5
3. Section 3(c)(3), Coordination Efforts 6
4. Section 3(c)(4)(A), Tree Trimming Expenditures 6
5. Section 3(c)(4)(B), Tree Contact Reliability Impact 9
6. Section 3(c)(4)(C), Expanded Tree Trimming 10
7. Section 3(c)(4)(D), Tree Contact Statistics 11
8. Section 3(c)(4)(E), Standards for Roadside Care 12
C. Cost Recovery 14
D. Procurement of Contract Resources 14
III. Conclusion and Orders 15
A. Conclusion 15
B. Orders 15
Docket No. 12-06-09 Page 14
DECISION
() Introduction
A. Summary
Pursuant to Public Act 12-148, An Act Enhancing Emergency Preparedness and Response and the General Statutes of Connecticut §16-11, the Public Utilities Regulatory Authority establishes specific standards for acceptable performance by each electric distribution and gas company in an emergency in which more than 10% of any utility’s customers are without service for more than 48 consecutive hours, as well as for gas companies for a comparable scale emergency. The standards attain the goals of protecting public health and safety, prevention of service outages or disruptions or reducing the duration of service outages or disruptions, facilitating restoration of service after outages or disruptions, and identifying the most cost-effective level of tree trimming and system hardening necessary to achieve maximum reliability of the system and to minimize service outages. This Decision also reviews each utility’s practices concerning service restoration after an emergency; the adequacy of each utility’s infrastructure, facilities and equipment; coordination efforts between each electric distribution company and any telecommunications company, community antenna television company, holder of a certificate of cable franchise authority or certified competitive video service provider; and the tree trimming policies of each electric distribution company.
Additionally, this Decision also orders each electric distribution company and gas local distribution company to incorporate these Performance Standards into their Emergency Response Plan and to implement them in their manner of operations. Non-compliance with these standards can subject the electric distribution company or gas company to the imposition of civil penalties pursuant to §16-41 of the General Statutes of Connecticut.
B. Background
Public Act 12-148, An Act Enhancing Emergency Preparedness and Response (Act), requires the Public Utilities Regulatory Authority (Authority or PURA) to establish industry specific standards for acceptable performance by electric distribution companies (The Connecticut Light and Power Company (CL&P) and The United Illuminating Company (UI); collectively, the EDCs) and gas local distribution companies (Connecticut Natural Gas Corporation (CNG), Yankee Gas Services Company (YGS) and The Southern Connecticut Gas Company (SCG; collectively, the LDCs) in an emergency to protect public health and safety, prevent service outages or disruptions, or reduce the duration of service outages or disruptions, facilitate the restoration of service after outages or disruptions, and identify the most cost-effective level of tree trimming and system hardening necessary to achieve maximum reliability of the system and to minimize service outages. The Act also requires the Authority to submit a report identifying such standards and any recommendations concerning legislative changes necessary to implement such standards to the joint standing committee of the General Assembly having cognizance of matters relating to energy by November 1, 2012.
In accordance with the Act, this Decision also reviews:
- Each utility’s practices concerning service restoration after an emergency, including each utility’s:
- Estimates concerning potential damage and service outages prior to any emergency;
- Damage and service outage estimates after each emergency;
- Restoration management after any emergency, including access to alternate restoration resources via regional and reciprocal aid contracts;
- Planning for at-risk and vulnerable customers;
- Policies concerning communication with state and local officials and customers, including individual customer restoration estimates and the timeliness and usefulness of such estimates; and
- Need for mutual assistance during any emergency.
- The adequacy of each such utility’s infrastructure, facilities and equipment, which shall include an analysis of:
- Whether such utility is following standard industry practice concerning operation and maintenance of such infrastructure, facilities and equipment; and
- Whether such utility had access to adequate replacement equipment for such infrastructure, facilities and equipment.
- The coordination efforts between each EDC and any telecommunications company, community antenna television company, holder of a certificate of cable franchise authority or certified competitive video service provider.
- The tree trimming policies of each EDC, including:
- The amount spent by each EDC for each year since its most recent rate proceeding;
- Each EDC’s System Average Interruption Duration Index (SAIDI) caused by falling trees and limbs;
c. The impact of expanding the area adjacent to distribution lines for tree trimming, including an analysis of the benefits and costs of expansion to ratepayers and the likelihood that such expansion would decrease damage to infrastructure, facilities and equipment used to distribute electricity and decrease service outage frequency or duration;
d. The percentage of service outages during Tropical Storm Irene and the October, 2011 snowstorm caused by trees and limbs outside the current trim area based on an analysis of the quantity and effectiveness of prior tree trimming; and
e. The standards appropriate for road-side tree care in the state, vegetation management standards in utility rights-of-way, right tree-right place standards, and standards recommended by the State Vegetation Management Task Force (SVMTF) established by the Department of Energy and Environmental Protection (DEEP).
- Other policies, practices and information that the Authority has determined is relevant to this review.
C. Conduct of Proceeding
The Authority was assisted in its investigation on the matters in this proceeding by Jacobs Consultancy Inc. (JCI).
By Notice of Opportunity to Comment dated September 28, 2012, the Authority offered participants the opportunity to comment on draft standards for restoration. By Notice of Technical Meeting dated October 2, 2012, the Authority held technical meetings on October 10, 11, and 12, at its offices, Ten Franklin Square, New Britain, Connecticut. By Notice of Comment and Oral Argument dated October 17, 2012, the Authority offered participants the opportunity to comment on its restoration standards that were revised based on input it received at the above Technical Meetings. No participants requested oral argument on the proposed restoration standards; therefore, no oral argument was held.
The Authority issued a final Decision in this matter on November 1, 2012.
D. Participants
The PURA recognized the following as participants in this proceeding: The Connecticut Water Company; Department of Homeland Security/Office of Emergency Communications; The Department of Energy and Environmental Protection, Forestry Division; Sprint Nextel Corporation; Jewett City Water Company; Hazardville Water Company; the Office of Consumer Counsel; Comcast Hartford; Olmstead Water Supply Company, Inc.; Judea Water Company; Tyler Lake Water Company; Verizon Wireless; Town of Wilton; AT&T Connecticut; Towns of Newtown/Redding; FiberTech Communications; QualComm-Enterprise Services; Cablevision Systems Corp.; Local 420 – IBEW; Comcast Cable; Charter Communications; Charter Communications Entertainment 1; Metrocast Communication; the Office of the Attorney General; The United Illuminating Company; Connecticut Natural Gas Corporation; The Southern Connecticut Gas Company; Old Newgate Ridge Water Company; Aquarion Water Company of Connecticut; Valley Council of Governments; New England Cable and Telecommunications Association, Inc.; Connecticut Conference of Municipalities; Verizon New York, Inc.; One Communications; Zagorsky, Zagorsky & Galske, P.C.; Ztar Mobile, Inc.; Preston Plains Water Company; CWA-Local 1298; Coxcom, LLC d/b/a Cox Communications; Thames Valley Communications, Inc.; Conexions, LLC; Statewide Video Advisory Council; Town of Ridgefield; Consumer Cellular, Inc.; Kevin McCarthy; Alltel Communications, Inc.; Total Call Mobile, Inc.; Yankee Gas; Heritage Village Water Company; Torrington Water Company; The Connecticut Light and Power Company; T-Mobile USA, Inc.; Valley Water Company; Avon Water Company; and West Service Corporation.
II. Authority Analysis
A. Adoption of Standards
The Authority hereby adopts and requires each EDC and gas LDC to incorporate these Performance Standards into their Emergency Response Plan (ERP) and to comply with the electric and gas performance standards attached as Appendix A and Appendix B, respectively. Non-compliance with these standards may subject the EDC or the gas LDC to the imposition of civil penalties pursuant to the General Statutes of Connecticut (Conn. Gen. Stat.) §16-41. In the case of gas companies, these standards apply to its manner of operations for a comparable scale of outage events.
The Authority notes that initial versions of the draft standards included certain requirements for communications, staffing, equipment and vegetation management. However, these topics are complex and involve many other interests other than electric and gas operations and require a more comprehensive and participative review. Thus, the Authority will incorporate the above communications, staffing and equipment standards issues in Docket No. 12-09-13, PURA Investigation of the Best Practices of Other State Public Utility Commissions, Public Utility Companies and Municipal Utilities' Emergency Management Best Practices. The Authority will incorporate the above-referenced vegetation management issues in Docket No. 12-01-10, PURA Investigation into the Tree Trimming Practices of Connecticut’s Utility Companies.
In its Written Comments to the Authority's October 17, 2012 Notice of Written Comment and Oral Argument, the OCC stated that the Performance Standards should require an EDC to implement mobile data terminals (MDTs) or equivalent real time electronic methods of communication with line crews. The Authority addressed this issue in Order No. 3 of the Decision in Docket No. 11-09-09, in which the Authority ordered as follows:
CL&P shall formulate a plan to assure that real-time damage assessment and outage restoration data are available from field crews, including crews from mutual assistance and line crews, and shall take action to ensure that field crews utilize such technologies. CL&P shall submit its report on the actions it has taken and plans to take in its submittals in Order No. 1.
Accordingly, the issue of MDTs or equivalent technology deployment is being addressed pursuant to that Order, and, until that investigation is completed, any requirement imposed by these standards is premature.
B. Reporting Requirements of Sections 3 and 4 of the Act
1. Section 3(b), System Hardening
Section 3(b) of the Act requires the Authority to “…identify the most cost-effective level of tree trimming and system hardening, including undergrounding, necessary to achieve the maximum reliability of the system and to minimize service outages. As documented in its Decision dated August 1, 2012, in Docket No. 11-09-09, PURA Investigation of Public Service Companies’ Response to 2011 Storms, Tropical Storm Irene and the October 2011 snowstorm (the 2011 Storms) had a more severe impact in CL&P’s service territory than in UI’s service territory. The Authority is currently investigating cost-effective ways to accomplish “hardening,” or increasing the storm resiliency, of CL&P’s electric distribution system in Docket No. 12-07-06, Application of The Connecticut Light and Power Company for Approval of its System Resiliency Plan. In that proceeding, the Authority will act on a request by CL&P to approve its plan for improving the storm resiliency of its electric distribution system, including expanding tree trimming programs and other measures to reduce the impact of major storms. The Authority is also examining ways to improve the cost-effectiveness of the vegetation management programs of CL&P and UI in Docket No. 12-01-10. Taken collectively, the Authority’s actions on these two proceedings will maximize the cost-effectiveness of EDC expenditures targeted toward improving system reliability under major storm conditions.
2. Sections 3(c)1 and 3(c)2, Current Practices
Section 3(c)1 of the Act requires the Authority to review the following EDC and gas LDC practices concerning service restoration after an emergency, including A) estimates concerning potential damage and service outages prior to any emergency; B) damage and service outage assessments after any emergency; C) restoration management after any emergency, including access to alternate restoration resources via regional and reciprocal aid contracts; D) planning for at-risk and vulnerable customers; E) policies concerning communication with state and local officials and customers; and F) need for mutual assistance during an emergency.
Section 3(c)2 of the Act requires the Authority to review the adequacy of each utility’s infrastructure, facilities and equipment, including A) whether the utility is following standard industry practice concerning operation and maintenance of such infrastructure, facilities and equipment; and B) whether each utility had access to adequate replacement equipment for such infrastructure, facilities and equipment during the course of an emergency.
The EDCs and gas LDCs practices have been exhaustively reviewed in the Authority’s August 1, 2012 Decision in Docket No. 11-09-09 and addressed in that document. This subject matter was thoroughly reviewed over the course of this proceeding and modified accordingly by the emergency restoration standards adopted in this Decision.
3. Section 3(c)(3), Coordination Efforts
Section 3(c)(3) of the Act requires the Authority to review coordination efforts between each EDC and any telecommunications company, community antenna television (CATV) company, holders of a certificate of cable franchise authority or certified competitive video service provider, as those terms are defined in Conn. Gen. Stat. §16-1, including coordinated planning before any emergency.
CL&P’s coordination efforts with telecommunications companies and with holders of certificates of cable franchise authority are defined in its ERP. The ERP’s provisions apply to coordination efforts before, during and after an emergency. No specific provisions are included regarding community antenna television companies or certified competitive video service providers; however, such coordination efforts with such entities are adequately covered by the provisions applicable to coordination with other telecommunications entities.