New Jersey-2012-AR213-Amended

An Assembly Resolution urging the Board of Public Utilities to establish uniform Statewide reliability standards for electric and gas public utilities.

Whereas, Reliable electric and gas public utility service is essential to the health, welfare, safety, and economic well-being of the citizens of this State; and

Whereas, State agencies require sufficient information to make appropriate regulatory decisions affecting the electric and gas public utility industry and consumers in New Jersey; and

Whereas, There is a need for more proactive discussions among appropriate State government agencies, regional entities, and electric and gas public utilities concerning ¹[an] a¹ uniform approach to ensure electric and gas public utility service reliability; and

Whereas, There is a need for increased certainty and greater flexibility to preserve electric and gas public utility service reliability and to mitigate additional rate increases through the timely maintenance of the electric and gas public utility network infrastructure; and

Whereas, The adoption of uniform Statewide standards of acceptable performance, in the areas of service reliability and restoration of service, by electric and gas public utilities will help minimize health and safety problems due to public utility service hazards or disruptions; and

Whereas, The Board of Public Utilities is urged to adopt uniform Statewide standards of acceptable performance for electric and gas public utilities; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey:

1. a. Consistent with federal law, the Board of Public Utilities (board) is respectfully urged to establish uniform Statewide standards of acceptable performance for service reliability and restoration of service for electric and gas public utilities conducting business in the State. The board is urged to adopt standards which address the following components of electric and gas public utility (public utility) service:

(1) Communications coordination;

(2) Emergency preparedness and operations;

(3) Facilities design and operations maintenance;

(4) Personnel performance, training, and qualifications requirements;

(5) Distribution system restoration; and

(6) Distribution service reliability.

b. The board, at its discretion, is urged to commence a full investigation of any alleged failure of a public utility to meet the standards in subsection a. of this section. The board is urged to investigate whether a public utility has committed a violation of the board's standards of acceptable performance.

2. a. The board is urged to require each public utility conducting business in the State to annually submit to the board, on or before May 15 for electric public utilities, and on or before June 1 for gas public utilities, a service reliability plan for review and approval by the board. The board is urged to require the service reliability plan to be designed for the provision of safe and reliable service and the reasonably prompt restoration of service in the event of a widespread disruption in service in the service area of the public utility due to storms or other causes beyond the control of the public utility. The board is urged to require the provisions of the plan to reflect the standards in subsection a. of section 1 of this resolution.

b. After review of a public utility's service reliability plan, the board, at its discretion, is urged ¹[to]¹, within 90 days of receipt of the plan, ¹to¹ either approve the plan or provide the public utility with proposed modifications to the plan and, at its discretion, is urged ¹[to]¹, subsequent to review in collaboration with the public utility, ¹to¹request that the public utility amend the plan. If the board finds a material deficiency in the plan, the board, at its discretion, is urged to order the public utility to make such modifications as it deems reasonably necessary to remedy the deficiency.

c. The board is urged to commence an investigation to review the performance of any public utility in restoring service during a widespread disruption in service in the public utility's service area.

d. The board is urged to deem a public utility in compliance with the requirements of this section if the public utility complies with reliability and restoration plans or standards.

3. The Board of Public Utilities is urged to undertake a detailed study of public utility service reliability and its impact on electricity and natural gas prices, economic activity, the number of jobs created to maintain service reliability, and the reliability of electric and natural gas service in this State. Within three years after the adoption of the standards for service reliability and restoration of service, the board is urged to prepare a report of its study and provide a copy thereof to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature.

4. a. The board is urged to require each public utility conducting business in the State to annually submit to the board, on or before May 15 for electric public utilities, and on or before June 1 for gas public utilities, an emergency communications strategic plan for review and approval by the board. The board is urged to review the plan in consultation with the State Office of Emergency Management in the Division of State Police in the Department of Law and Public Safety. After review of a public utility's emergency communications strategic plan, the board, at its discretion, is urged ¹[to]¹, within 90 days of receipt of the plan, ¹to¹either approve the plan or provide the public utility with proposed modifications to the plan and, at its discretion, is urged ¹[to]¹, subsequent to review and in collaboration with the public utility, ¹to¹ order the public utility to make modifications as the board deems reasonably necessary to remedy any provision of the plan the board deems deficient. The board is urged to require that the plan include, but not be limited to, providing an explanation of the public utility's system for communicating with customers during and after an emergency that extends beyond normal business hours and the designation of public utility staff to communicate with local officials and relevant regulatory agencies.

b. The board is urged to commence an investigation to review the communications of any public utility during a disruption of service in the public utility's service area.

5. The board is urged to require each electric public utility conducting business in the State to annually submit to the board, on or before May 15th of each year, a review of strategies to mitigate potential flooding of substations constructed within flood hazard areas as defined by the Department of Environmental Protection. The board is urged to require that the review by the electric public utility address the feasibility of mitigation by, among other things, switching to other sources, deployment of mobile units, construction of flood walls, raising equipment, and the relocation of facilities. The board is urged to require that the review include timeframes to implement the recommended measures and cost estimates for each scenario considered.

6. The board is urged to establish uniform reliability, safety, and service quality standards for electric power suppliers.

7. Duly authenticated copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to each Commissioner of the Board of Public Utilities.