Bill Text: NY A06502 | 2013-2014 | General Assembly | Amended


Bill Title: Enacts the "utility preparedness act of 2014"; requires the commission to issue an order establishing and requiring compliance with power restoration performance standards for certain electric companies to reduce the duration of outages and disruptions and to facilitate restoration of power after outages and disruptions.

Spectrum: Moderate Partisan Bill (Democrat 17-2)

Status: (Introduced - Dead) 2014-01-28 - print number 6502a [A06502 Detail]

Download: New_York-2013-A06502-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        6502--A
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                     April 4, 2013
                                      ___________
       Introduced  by  M.  of  A.  MAYER,  BRAUNSTEIN, BUCHWALD, GALEF, LAVINE,
         ORTIZ, RAIA, ROZIC, SCHIMEL, TITONE, OTIS, ABINANTI -- Multi-Sponsored
         by -- M. of A. COOK, GUNTHER, PERRY, RIVERA, SALADINO, THIELE, WEISEN-
         BERG -- read once and  referred  to  the  Committee  on  Corporations,
         Authorities  and Commissions -- recommitted to the Committee on Corpo-
         rations, Authorities and Commissions in accordance with Assembly  Rule
         3,  sec. 2 -- committee discharged, bill amended, ordered reprinted as
         amended and recommitted to said committee
       AN ACT to amend the public service law, in relation to utility prepared-
         ness for outages and disruptions of service
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  This  act shall be known and may be cited as the "utility
    2  preparedness act of 2014".
    3    S 2. The public service law is amended by adding a new section 66-n to
    4  read as follows:
    5    S 66-N. UTILITY PREPAREDNESS FOR OUTAGES AND DISRUPTIONS  OF  SERVICE.
    6  1.  DEFINITIONS. AS USED IN THIS SECTION:
    7    (A)  "ELECTRIC TRANSMISSION AND DISTRIBUTION COMPANY" OR "TRANSMISSION
    8  AND DISTRIBUTION COMPANY" OR "COMPANY"  SHALL  MEAN:  AN  INVESTOR-OWNED
    9  UTILITY  HAVING ANNUAL REVENUES IN EXCESS OF TWO HUNDRED MILLION DOLLARS
   10  THAT TRANSMITS AND DISTRIBUTES ELECTRICITY WITHIN THIS STATE.
   11    (B)  "VEGETATION  MANAGEMENT"  SHALL  MEAN:  PROGRAMS  AND   PRACTICES
   12  DESIGNED  TO PREVENT ELECTRIC SYSTEM DISRUPTIONS OR POWER OUTAGES CAUSED
   13  BY THE PHYSICAL INTERFERENCE OR COLLAPSE OF  TREES,  TREE  BRANCHES  AND
   14  OTHER VEGETATION ON ELECTRIC TRANSMISSION AND DISTRIBUTION LINES.
   15    2.  TRANSMISSION  AND  DISTRIBUTION COMPANY PERFORMANCE BENCHMARKS AND
   16  STANDARDS.  (A) NO LATER THAN ONE YEAR FOLLOWING THE EFFECTIVE  DATE  OF
   17  THIS  SECTION, THE COMMISSION SHALL ESTABLISH, AND EACH TRANSMISSION AND
   18  DISTRIBUTION COMPANY IS  REQUIRED  TO  COMPLY  WITH,  POWER  RESTORATION
   19  PERFORMANCE  BENCHMARKS  AND STANDARDS TO REDUCE THE DURATION OF OUTAGES
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09413-05-4
       A. 6502--A                          2
    1  AND DISRUPTIONS AND TO FACILITATE RESTORATION OF POWER AFTER OUTAGES  OR
    2  DISRUPTIONS.  PRIOR  TO  ESTABLISHING SUCH BENCHMARKS AND STANDARDS, THE
    3  COMMISSION MAY REQUIRE COMPANIES  TO  SUBMIT  DOCUMENTS  AND  ANY  OTHER
    4  INFORMATION  IN  THEIR  POSSESSION  IN ORDER TO ASSIST THE COMMISSION IN
    5  ESTABLISHING SUCH BENCHMARKS AND STANDARDS.
    6    (B) THE BENCHMARKS AND STANDARDS ESTABLISHED BY THE  COMMISSION  SHALL
    7  BE DESIGNED FOR POWER OUTAGES IN WHICH MORE THAN TEN PERCENT OF A TRANS-
    8  MISSION  AND DISTRIBUTION COMPANY'S CUSTOMERS ARE WITHOUT POWER FOR MORE
    9  THAN FORTY-EIGHT CONSECUTIVE HOURS AND SHALL INCLUDE BUT NOT BE  LIMITED
   10  TO, STANDARDS FOR:
   11    (I)  MINIMUM  STAFFING AND EQUIPMENT LEVELS FOR EACH COMPANY, BASED ON
   12  THE NUMBER OF CUSTOMERS SERVED BY SUCH COMPANY AND  THE  NATURE  OF  THE
   13  INFRASTRUCTURE  DEPLOYED  TO SERVE SUCH COMPANY'S CUSTOMERS IN THE EVENT
   14  OF AN EMERGING OR WIDE-SPREAD OUTAGE OR DISRUPTION;
   15    (II) A TIMETABLE FOR RESTORATION OF POWER IN  OUTAGES  AFFECTING  MORE
   16  THAN  TEN  PERCENT, THIRTY PERCENT, FIFTY PERCENT AND SEVENTY PERCENT OF
   17  SUCH COMPANY'S CUSTOMERS;
   18    (III) A TIMETABLE FOR RESTORATION OF POWER WHEN  OUTAGES  ARE  DUE  TO
   19  BLACKOUTS OF THE ENTIRE GRID;
   20    (IV)  CREATION  OF  A  COMMUNICATION PLAN BETWEEN EACH COMPANY AND ITS
   21  CUSTOMERS, INCLUDING, BUT NOT  LIMITED  TO,  COMMUNICATION  DURING  TIME
   22  PERIODS THAT ARE NOT CONSIDERED NORMAL BUSINESS HOURS;
   23    (V)  SAFETY  OF  COMPANIES' EMPLOYEES, WORK CREWS AND PRIVATE CONTRAC-
   24  TORS;
   25    (VI) CREATION OF MUTUAL AID AGREEMENTS WITH  OTHER  UTILITIES  IN  THE
   26  REGION AND, AS NEEDED, IN THE UNITED STATES AND CANADA, FOR MUTUAL STORM
   27  RESTORATION  ASSISTANCE,  WHICH  SUCH AGREEMENTS SHALL BE FILED WITH THE
   28  COMMISSION;
   29    (VII) NOTIFICATION OF THE COMMISSION AND THE PUBLIC WHEN A COMPANY HAS
   30  REQUESTED AID FOR STORM  RESTORATION  ASSISTANCE  FROM  OTHER  UTILITIES
   31  INCLUDING  THE NUMBER OF WORKERS AND/OR ADDITIONAL EQUIPMENT THE COMPANY
   32  HAS REQUESTED;
   33    (VIII) COMMUNICATION AND COORDINATION BETWEEN  EACH  COMPANY  AND  THE
   34  RELEVANT  STATE,  MUNICIPAL AND/OR EMERGENCY OPERATIONS CENTER OFFICIALS
   35  CONCERNING EMERGENCY PREPARATION, ROAD CLEARING AND THE ESTABLISHMENT OF
   36  RESTORATION PRIORITIES;
   37    (IX) TREE TRIMMING, CUTTING  AND  REMOVAL  BY  EACH  TRANSMISSION  AND
   38  DISTRIBUTION COMPANY TO REDUCE POWER OUTAGES CAUSED BY TREES AND LIMBS;
   39    (X)  COMMUNICATION  AND  COORDINATION, AFTER CONSULTATION WITH THE NEW
   40  YORK STATE DIVISION OF HOMELAND SECURITY AND EMERGENCY SERVICES, BETWEEN
   41  EACH TRANSMISSION AND DISTRIBUTION COMPANY AND THE PUBLIC INCLUDING, BUT
   42  NOT LIMITED TO, STANDARDS CONCERNING THE USE OF ANY EMERGENCY  NOTIFICA-
   43  TION  SYSTEM  TO  NOTIFY  THE PUBLIC OF POWER RESTORATION STATUS AND ANY
   44  DANGEROUS CONDITIONS, INCLUDING  NOTIFICATION  METHODS  SUCH  AS  MOBILE
   45  TELEPHONE  TEXT  MESSAGES,  ELECTRONIC  MAIL AND ANY OTHER ELECTRONIC OR
   46  NON-ELECTRONIC MEANS THAT THE COMMISSION MAY REQUIRE;
   47    (XI) REIMBURSEMENT TO RESIDENTIAL CUSTOMERS FOR:
   48    (A) ACTUAL LOSSES OF FOOD SPOILED DUE TO LACK OF REFRIGERATION  CAUSED
   49  DURING A POWER OUTAGE LASTING FORTY-EIGHT OR MORE CONSECUTIVE HOURS WHEN
   50  GREATER  THAN TEN PERCENT OF A COMPANY'S RESIDENTIAL CUSTOMERS HAVE LOST
   51  POWER, IN AN AMOUNT UP TO TWO HUNDRED  DOLLARS  UPON  SUBMISSION  OF  AN
   52  ITEMIZED  LIST AND IN AN AMOUNT OVER TWO HUNDRED DOLLARS UPON SUBMISSION
   53  OF AN ITEMIZED LIST AND PROOF OF LOSS, UP TO A MAXIMUM OF FOUR  HUNDRED-
   54  FIFTY  DOLLARS  FOR  ANY  ONE  CUSTOMER FOR ANY ONE INCIDENT, WHICH SUCH
   55  AMOUNTS MAY BE PERIODICALLY REVIEWED AND CHANGED BY THE COMMISSION;
       A. 6502--A                          3
    1    (B) ACTUAL LOSSES OF PERISHABLE PRESCRIPTION MEDICINE, SPOILED DUE  TO
    2  LACK  OF REFRIGERATION, UPON SUBMISSION OF AN ITEMIZED LIST AND PROOF OF
    3  LOSS AND, IF REQUESTED BY THE COMPANY, SUBMISSION  OF  AUTHORIZATION  TO
    4  ENABLE THE COMPANY TO VERIFY THE CLAIMED LOSS;
    5    (XII)  TIMELY NOTIFICATION OF POWER OUTAGES AND RESTORATION EFFORTS BY
    6  EACH COMPANY TO ANY RELEVANT STATE  OR  MUNICIPAL  AGENCY  OR  OFFICIALS
    7  INCLUDING, BUT NOT LIMITED TO, ANY PUBLIC SAFETY AGENCY OR OFFICIALS;
    8    (XIII) THE OPERATION OF AN EMERGENCY CALL CENTER BY EACH COMPANY; AND
    9    (XIV) ANY OTHER STANDARDS THE COMMISSION DEEMS NECESSARY.
   10    (C)  THE  COMMISSION,  IN DEVELOPING ITS POWER RESTORATION PERFORMANCE
   11  BENCHMARKS AND STANDARDS PURSUANT TO PARAGRAPH (A) OF THIS  SUBDIVISION,
   12  SHALL REVIEW:
   13    (I)  EACH  TRANSMISSION  AND  DISTRIBUTION COMPANY'S CURRENT PRACTICES
   14  CONCERNING POWER RESTORATION  AFTER  AN  EMERGENCY.  SUCH  REVIEW  SHALL
   15  INCLUDE,  BUT NOT BE LIMITED TO, AN ANALYSIS OF EACH SUCH COMPANY'S: (A)
   16  ESTIMATES CONCERNING POTENTIAL DAMAGE AND POWER DISRUPTIONS  MADE  PRIOR
   17  TO  A  POTENTIAL  OUTAGE  AFFECTING MORE THAN TEN PERCENT OF A COMPANY'S
   18  CUSTOMERS FOR A PERIOD OF MORE THAN FORTY-EIGHT CONSECUTIVE  HOURS;  (B)
   19  DAMAGE AND POWER OUTAGE ASSESSMENTS AFTER ANY EMERGENCY; (C) RESTORATION
   20  MANAGEMENT  AFTER  ANY EMERGENCY, INCLUDING ACCESS TO ALTERNATE RESTORA-
   21  TION RESOURCES VIA MUTUAL AID AGREEMENTS WITH OTHER UTILITIES FOR MUTUAL
   22  STORM RESTORATION ASSISTANCE, INCLUDING THOSE ENTERED  INTO  WITH  OTHER
   23  TRANSMISSION  AND  DISTRIBUTION  COMPANIES;  (D) EACH COMPANY'S PLAN FOR
   24  AT-RISK AND VULNERABLE CUSTOMERS INCLUDING, BUT NOT LIMITED TO,  CUSTOM-
   25  ERS IDENTIFIED IN PARAGRAPHS (A) AND (B) OF SUBDIVISION THREE OF SECTION
   26  THIRTY-TWO  OF  THIS CHAPTER; (E) POLICIES CONCERNING COMMUNICATION WITH
   27  STATE AND LOCAL  OFFICIALS  AND  CUSTOMERS,  INCLUDING  NOTIFICATION  OF
   28  CUSTOMER  RESTORATION ESTIMATES AND THE TIMELINESS, ACCURACY AND USEFUL-
   29  NESS OF SUCH ESTIMATES; AND (F) NEED  FOR  MUTUAL  AID  AGREEMENTS  WITH
   30  OTHER  UTILITIES  FOR MUTUAL STORM RESTORATION INCLUDING ASSISTANCE FROM
   31  CREWS SERVING OTHER UTILITIES OR COMPANIES;
   32    (II) THE ADEQUACY OF  EACH  TRANSMISSION  AND  DISTRIBUTION  COMPANY'S
   33  INFRASTRUCTURE, FACILITIES AND EQUIPMENT, INCLUDING, BUT NOT LIMITED TO,
   34  ELECTRIC  DISTRIBUTION  LINES, ELECTRIC TRANSFORMERS AND CIRCUITS, WHICH
   35  SHALL INCLUDE AN ANALYSIS OF: (A)  WHETHER  SUCH  COMPANY  IS  FOLLOWING
   36  STANDARD  INDUSTRY  PRACTICES  FOR  OPERATION  AND  MAINTENANCE  OF SUCH
   37  INFRASTRUCTURE, FACILITIES AND EQUIPMENT; AND (B) WHETHER  SUCH  COMPANY
   38  HAS  ACCESS  TO  ADEQUATE REPLACEMENT EQUIPMENT FOR SUCH INFRASTRUCTURE,
   39  FACILITIES AND EQUIPMENT DURING THE COURSE OF A POWER  OUTAGE  AFFECTING
   40  MORE THAN TEN PERCENT OF A COMPANY'S CUSTOMERS FOR MORE THAN FORTY-EIGHT
   41  CONSECUTIVE HOURS;
   42    (III) VEGETATION MANAGEMENT POLICIES OF EACH TRANSMISSION AND DISTRIB-
   43  UTION  COMPANY  INCLUDING:  (A) EXPENDITURES FOR TREE TRIMMING AND OTHER
   44  PRACTICES TO PREVENT INTERFERENCE OF TRANSMISSION AND DISTRIBUTION LINES
   45  BY VEGETATION; (B) INCIDENCE  OF  POWER  OUTAGES  CAUSED  BY  VEGETATION
   46  INCLUDING  FALLING  TREES  AND  TREE BRANCHES CAUSED BY WEATHER OR OTHER
   47  EVENTS; AND (C) THE AMOUNT AND DURATION OF POWER OUTAGES DURING PREVIOUS
   48  MAJOR STORMS CAUSED BY TREES AND LIMBS OUTSIDE THE CURRENT RIGHT OF  WAY
   49  MANAGEMENT WITH CONSIDERATION GIVEN TO THE QUANTITY AND EFFECTIVENESS OF
   50  PRIOR TREE TRIMMING;
   51    (IV) THE IMPACT, INCLUDING, BUT NOT LIMITED TO, POTENTIAL REDUCTION OF
   52  POWER OUTAGES AND POTENTIAL COST OF BURYING POWER LINES UNDERGROUND WERE
   53  SUCH EFFORT TO BE UNDERTAKEN;
   54    (V)  THE  IMPACT  OF EXPANDING THE AREA ADJACENT TO DISTRIBUTION LINES
   55  FOR TREE TRIMMING, INCLUDING AN ANALYSIS OF THE BENEFITS AND  THE  COSTS
   56  OF  SUCH  EXPANSION TO RATEPAYERS AND THE LIKELIHOOD THAT SUCH EXPANSION
       A. 6502--A                          4
    1  WOULD DECREASE DAMAGE TO INFRASTRUCTURE, FACILITIES AND  EQUIPMENT  USED
    2  TO  DISTRIBUTE  ELECTRICITY AND DECREASE POWER OUTAGE FREQUENCY OR DURA-
    3  TION; AND
    4    (VI)  ANY  OTHER  POLICY OR PRACTICE THE COMMISSION DEEMS NECESSARY TO
    5  ANALYZE IN ORDER TO CONDUCT THE REVIEW REQUIRED PURSUANT TO  THIS  PARA-
    6  GRAPH.
    7    (D) THE COMMISSION SHALL PERMIT EACH COMPANY TO RECOVER THE REASONABLE
    8  COSTS INCURRED BY SUCH COMPANY TO MAINTAIN OR IMPROVE THE RELIABILITY OF
    9  SUCH  COMPANY'S  INFRASTRUCTURE  NECESSARY  TO MEET THE STANDARDS ESTAB-
   10  LISHED PURSUANT TO THIS SECTION.
   11    (E)  THE  COMMISSION  MAY  ALSO  ESTABLISH  STANDARDS  FOR  ACCEPTABLE
   12  PERFORMANCE BY EACH TRANSMISSION AND DISTRIBUTION COMPANY IN AN EMERGEN-
   13  CY, IN ACCORDANCE WITH THIS SECTION, UPON A DETERMINATION BY THE COMMIS-
   14  SION  THAT  THE  CHANGED  CIRCUMSTANCES OF ANY UTILITY NECESSITATES SUCH
   15  ADDITIONAL STANDARDS.
   16    (F) NO LATER THAN ONE YEAR FOLLOWING THE ESTABLISHMENT OF  THE  BENCH-
   17  MARKS  AND  STANDARDS  PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION AND
   18  EACH YEAR THEREAFTER, EACH TRANSMISSION AND DISTRIBUTION  COMPANY  SHALL
   19  PROVIDE  AN  EMERGENCY  RESPONSE  REPORT  TO THE COMMISSION. SUCH REPORT
   20  SHALL INCLUDE INFORMATION AND  AN  ANALYSIS  CONCERNING  SUCH  COMPANY'S
   21  ABILITY  AND PERFORMANCE DURING THE PRECEDING YEAR TO MEET THE EMERGENCY
   22  PREPAREDNESS AND RESPONSE STANDARDS ESTABLISHED BY THE COMMISSION PURSU-
   23  ANT TO THIS SECTION. IN ADDITION TO THE ANNUAL RESPONSE REPORT  REQUIRED
   24  IN  THIS  PARAGRAPH,  THE COMMISSION MAY REQUIRE ANY UTILITY TO SUBMIT A
   25  SUPPLEMENTAL EMERGENCY RESPONSE REPORT AFTER  ANY  STORM,  EMERGENCY  OR
   26  EVENT CAUSING SIGNIFICANT POWER DISRUPTIONS.
   27    3.  THE  COMMISSION  SHALL REVIEW THE PERFORMANCE OF EACH TRANSMISSION
   28  AND DISTRIBUTION COMPANY AFTER ANY EMERGENCY: (A) IN WHICH MORE THAN TEN
   29  PERCENT OF ANY SUCH COMPANY'S CUSTOMERS WERE WITHOUT POWER FOR MORE THAN
   30  FORTY-EIGHT CONSECUTIVE HOURS; OR (B) AT  THE  COMMISSION'S  DISCRETION.
   31  THE  COMMISSION,  UPON  A  FINDING, AFTER A HEARING OR OPPORTUNITY TO BE
   32  HEARD, THAT ANY SUCH COMPANY FAILED TO COMPLY WITH ANY RESTORATION STAN-
   33  DARD REQUIRED BY THIS SECTION OR ANY ORDER OF THE COMMISSION IN PREPARA-
   34  TION FOR A POWER OUTAGE, OR IN RESTORATION  OF  A  POWER  OUTAGE,  SHALL
   35  IMPOSE  CIVIL  PENALTIES  AGAINST SUCH COMPANY, NOT TO EXCEED A TOTAL OF
   36  TWO AND ONE-HALF PERCENT OF SUCH COMPANY'S GROSS  ANNUAL  REVENUES  FROM
   37  ELECTRIC  DISTRIBUTION.  IN  DETERMINING  THE AMOUNT OF ANY PENALTY, THE
   38  COMMISSION MAY CONSIDER WHETHER SUCH COMPANY  RECOVERED  COSTS  INCURRED
   39  PURSUANT  TO  PARAGRAPH  (D)  OF SUBDIVISION TWO OF THIS SECTION TO MEET
   40  INFRASTRUCTURE RELIABILITY EFFORTS TO IMPROVE  SUCH  COMPANY'S  PERFORM-
   41  ANCE.  ANY  SUCH PENALTY IMPOSED SHALL BE PAID TO THE CUSTOMERS OR RATE-
   42  PAYERS OF SUCH COMPANY IN THE FORM OF A CREDIT, WHICH SHALL BE  CREDITED
   43  WITHIN ONE HUNDRED TWENTY DAYS OF SUCH ORDER. ANY SUCH PENALTY SHALL NOT
   44  BE  INCLUDED AS AN OPERATING EXPENSE OF SUCH COMPANY FOR THE PURPOSES OF
   45  RATEMAKING.
   46    S 3. This act shall take effect immediately.
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