11. Assignment of the Proceeding

Timothy A. Simon is the assigned Commissioner and Timothy Kenney is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. The regulatory requirements adopted by today's decision will improve the fire safety of overhead electric utility facilities and aerial CIP facilities in close proximity to overhead power lines. Any additional costs that the new regulatory requirements impose on electric utilities, CIPs, and other entities are more than offset by the public-safety benefits.

2. In addition to enhancing fire safety, many of the revisions to GO 95 and GO 165 that are adopted by today's decision will (i) improve the clarity of these General Orders, (ii) streamline existing requirements, and/or (iii) remove obsolete, unnecessary, or redundant provisions in these General Orders. These revisions will improve the ability of CIPs and electric utilities to manage their operations efficiently and thereby reduce safety hazards and costs.

3. There is a grave and ongoing risk that Santa Ana windstorms will cause catastrophic power-line fires unless electric utilities in Southern California plan and prepare for such events.

4. The FRAP Map and Reax Map show there are millions of acres in Northern California where there is a high fire threat. However, the magnitude of the risk of catastrophic wind-caused power-line fires occurring in Northern California is unknown at this time.

5. Today's decision makes no findings or conclusions regarding the root cause of the Guejito Fire in October 2007.

6. If not installed and maintained properly, aerial CIP facilities located in close proximity to power lines could contact power lines and ignite a fire. CIP-only poles can also fail if not installed and maintained properly, causing a cascade that topples nearby joint-use poles, resulting in a wildfire.

7. The protection of public safety requires that CIPs carry out patrol inspections, detailed inspections, and intrusive inspections of their aerial facilities and poles located in close proximity to overhead power-line facilities in the high fire-threat areas of the state.

8. There is no history of catastrophic power-line fires in Northern California, and Northern California does not experience Santa Ana windstorms that contribute significantly to the risk of catastrophic power-line fires in Southern California. Because the risk of power-line fires is lower in Northern California compared to Southern California, it is reasonable to have a lower frequency of patrol inspections, detailed inspections, and intrusive inspections of CIP facilities in Northern California compared to Southern California.

9. The failure to keep power lines clear of vegetation poses a serious threat to service reliability and public safety. In order to maintain service reliability and to protect public safety, electric utilities need appropriate tools to deal with customers who prevent access to their property for vegetation management.

10. The minimum time-of-trim guidelines in Appendix E of GO 95 provide an adequate margin for fire safety in most circumstances. Electric utilities and CIPs are authorized by Appendix E to exceed the minimum time-of-trim guidelines when it is advantageous to do so for fire-safety and service reliability purposes.

11. Appendix E of GO 95 does not provide guidance about what factors should be considered by electric utilities and CIPs for determining whether, and to what extent, they should exceed the minimum time-of-trim guidelines specified in Appendix E.

12. It is of utmost importance to perform pole-loading calculations and to share information needed for pole-loading calculations in order to ensure that utility poles do not become overloaded and fail, which could ignite a fire, injure and kill people, and destroy property.

13. Wood products have considerable natural variability. As a result, the actual strength of wood products used by electric utilities and CIPs to build structures will likely deviate to some degree from the presumed strength of materials listed in Rules 48.1 though 48.7 of GO 95.

14. The current Heavy Loading District and Light Loading District in Rule 43, and the associated loading standards for electric utility and CIP facilities in each district, are not specifically intended to mitigate the elevated risk of power-line fires occurring and spreading rapidly in high fire-threat areas.

15. Marking CIP cables and conductors attached to joint-use poles with ownership information will enhance fire safety by enabling electric utilities, CIPs, and others to identify the owner of CIP facilities that pose a fire hazard so that the owner can be notified and repairs made.

16. There are many power-line fires every year. Requiring electric IOUs to report information on power-line fires would be useful in formulating fire-prevention measures and gauging the effectiveness of the adopted measures.

17. The availability of high-resolution maps that can accurately identify areas where power-line fires are more likely to occur and spread rapidly is essential to the successful and cost-effective deployment of many of the fire-prevention measures adopted in this proceeding.

18. The FRAP Map is not suited for use on a permanent basis to designate areas where the fire-preventions measures adopted in this proceeding should be deployed.

19. The Reax Map and the SDG&E Map are designed to identify areas where fire-prevention measures should be deployed, but neither map has been reviewed by neutral experts.

20. With the possible exception of SDG&E's service territory, there are currently no maps that accurately identify areas of Southern California where power-line fires are more likely to occur and spread rapidly.

21. There were no requests for evidentiary hearings in Phase 1 or Phase 2 of this proceeding.

Conclusions of Law

1. This is a quasi-legislative rulemaking proceeding in which no party requested evidentiary hearings and none were held. Accordingly, today's decision may rely on legislative facts obtained from written submissions in this proceeding, such as the Phase 2 Workshop Report and briefs. Today's decision may also draw on evidence from past proceedings, the Commission's experience and expertise in regulating utilities, Commission policies, and common sense.

2. Without determining the root cause of any of the October 2007 wildfires, several potential issues involving the overhead facilities of electric utilities and CIPs have been identified that, in an abundance of caution, warrant adoption of new regulations to reduce the risk of wildfires.

3. It is in the public interest to adopt the revisions to GOs 95, 165, and 166 that are contained in Appendix B of today's decision for the reasons set forth in the body of today's decision and the Findings of Fact.

4. CPSD should amend GOs 95, 165, and 166 to incorporate the revisions to these GOs adopted by today's decision and publish the amended GOs on the Commission's website within 60 days from today's decision. The adopted revisions include replacing the placeholder "Decision 11-XX-YYY" in several locations with the decision number for today's decision.

5. The deadlines for completing corrective actions under the inspection and maintenance programs established by electric utilities pursuant to GO 165 may not exceed the deadlines for completing corrective actions specified in Rule 18A of GO 95, as modified by today's decision.

6. Each electric IOU in Southern California should prepare and submit a fire-prevention plan by December 31, 2012.

7. Each electric IOU in Northern California should determine if there is a credible risk of catastrophic power-line fires in its service territory and, if so, prepare and submit a fire-prevention plan by December 31, 2012.

8. Each electric IOU's fire-prevention plan should address situations where all three of the following conditions occur simultaneously: (i) 3-second wind gusts exceed the structural and mechanical design standards for overhead power-line facilities; (ii) these 3-second gusts occur during a period of high fire danger; and (iii) the affected facilities are located in high fire-threat areas. The fire-prevention plans should also specify (a) how the utility will identify the occurrence of 3-second gusts that exceed the design standards for overhead power-line facilities; and (b) the countermeasures the utility will implement to mitigate the threat of power-line fire ignitions.

9. Any electric IOU that intends to shut off power as part of its fire-prevention plan should file an application for authority to do so. The application should demonstrate with a cost-benefit analysis developed in accordance with the guidance provided by D.09-09-030 that the benefits of shutting off power in terms of a net reduction in fires outweigh the substantial costs, burdens, and risks that shutting off power would impose on customers and communities affected by the shut off.

10. The new Standard 1.E of GO 166 that is adopted by today's decision is subject to the other provisions in GO 166, including the requirement to update a fire-prevention plan annually and to conduct an annual exercise of the fire-prevention plan.

11. The Commission has authority to determine what constitutes compliance with GO 95 on a case-by-case basis in light of specific facts and circumstances.

12. For the purpose of implementing the patrol and detailed inspection intervals for CIP facilities in GO 95, Rule 80.1, and for electric utility facilities in GO 165, the term "year" should be defined as 12 consecutive calendar months starting the first full calendar month after an inspection is performed, plus or minus two calendar months, not to exceed the end of the calendar year in which the next inspection is due.

13. Electric IOUs should revise their tariffs to state that the electric utility may shut off power to customers who do not allow access to their property for vegetation-management activities. The authority to shut off power should be limited to situations where there is a breach of the minimum vegetation clearances required by GO 95, Rule 35, Table 1, Cases 13 and 14.

14. Electric utilities have wide latitude under Appendix E of GO 95 to exceed the minimum time-of-trim guidelines for fire-safety and service reliability purposes.

15. The failure to maintain the required minimum clearance between an energized conductor and another conductor is either a Level 1 or Level 2 nonconformance, depending on circumstances, and must be corrected within the timeframes specified in Rule 18 of GO 95.

16. The definition of what constitutes a material increase in load on a utility structure that is contained in Ordering Paragraph 4 of D.09-08-029 is reasonable and should be incorporated into Rule 44.2 of GO 95.

17. A new Phase 3 of this proceeding with facilitated workshops should be instituted to consider, develop, and adopt regulations regarding the matters identified in the body of today's decision.

18. The threat of catastrophic power-line fires is so great that the public interest is better served by requiring CIPs and electric utilities to implement the fire-prevention measures adopted in this proceeding using the available fire-threat maps rather than waiting for the development and adoption of permanent fire-threat maps in Phase 3.

19. Until permanent fire-threat maps are adopted in Phase 3, the CIPs and electric utilities should use the FRAP Map, Reax Map, and SDG&E Map on an interim basis to implement the fire-prevention measures adopted in this proceeding. The CIPs should use Reax Map in Northern California and the FRAP Map in Southern California. The electric utilities other than SDG&E should use the Reax Map in Northern California and the FRAP Map in Southern California. SDG&E should use its own fire-threat map or the FRAP Map.

20. Electric utilities and CIPs should create and retain records of all pole-loading calculations, patrol inspections, detailed inspections, and repairs for at least ten years in order to provide information needed for forensic analysis in the event there is a major safety-related incident associated with overhead facilities. For the same reason, electric utilities and CIPs should create and retain records of all intrusive inspections of a wood utility pole, and any associated repairs that result from such inspections, for the life of the pole. This new record-retention requirement should apply to records currently in a company's possession and records created on or after the date of today's decision.

21. Cost-of-service utilities are entitled to recover the reasonable costs they incur to implement the regulations that are adopted in this proceeding after the reasonableness of such costs has been verified by the Commission. The cost-of-service utilities should be authorized to seek recovery of such costs on an interim basis until such costs can be incorporated into each utility's GRC.

22. There is no need to establish a cost-recovery mechanism for utilities and CIPs whose rates are not regulated by the Commission.

23. All entities subject to the rules, regulations, and ordering paragraphs adopted by today's decision should implement these directives as soon as possible. There should be no implementation deadlines except for those specifically established in the rules, regulations, or ordering paragraphs themselves.

24. CEQA applies to any project that has a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment unless the project is exempt from CEQA by statute or regulation.

25. The Commission is the lead agency under CEQA with respect to the regulations adopted by today's decision.

26. All of the regulations adopted by today's decision are exempt from CEQA pursuant to one or more the statutory exemptions or categorical exemptions identified in the body of today's decision.

27. GRCs are a superior regulatory mechanism for selecting and funding fire-prevention measures compared to the ad hoc allocation of ratepayer funds for fire-prevention projects under Electric Tariff Rule 20.

28. There is no need for evidentiary hearings in Phase 2 of this proceeding.

29. The following order should be effective immediately.

ORDER

IT IS ORDERED that:

1. General Orders (GOs) 95, 165, and 166 are revised to include the new and amended rules set forth in Appendix B of today's decision. The Commission's Consumer Protection and Safety Division shall revise GOs 95, 165, and 166 to incorporate the new and amended rules and publish the revised GOs on the Commission's website within 60 days from the issuance date of today's decision.

2. Each investor-owned electric utility in Southern California shall (i) prepare a fire-prevention plan, and (ii) file and serve a copy of its fire-prevention plan by December 31, 2012, via a Tier 1 compliance advice letter.

3. Each investor-owned electric utility in Northern California shall take the following steps to determine the risk of catastrophic power-line fires in its service territory and prepare a fire-prevention plan, if necessary:

4. The fire-prevention plans required by today's decision shall address situations where all three of the following conditions occur simultaneously: (i) 3-second wind gusts exceed the structural or mechanical design standards for the affected overhead power-line facilities, (ii) these 3-second gusts occur during a period of high fire danger, and (iii) the affected facilities are located in a high fire-threat area. For the purpose of this Ordering Paragraph, the following definitions apply: (a) structural and mechanical design standards are the maximum working stresses set forth in Section IV of General Order 95; (b) period of high fire danger is the period covered by a Red Flag Warning issued by the United States National Weather Service; and (c) high fire-threat areas are areas designated as such on the fire-threat maps adopted by today's decision.

5. The fire-prevention plans required by today's decision shall specify (i) how the investor-owned electric utility will identify the occurrence of 3-second wind gusts that exceed the structural or mechanical design standards for overhead power-line facilities; and (ii) the countermeasures the utility will implement to mitigate the threat of power-line fire ignitions.

6. Any investor-owned electric utility that intends to shut off power as part of its fire-prevention plan must file an application for authority to do so. The application shall demonstrate with a cost-benefit analysis developed in accordance with the guidance provided by Decision 09-09-030 that the benefits of shutting off power in terms of a net reduction in fires outweigh the substantial costs, burdens, and risks that shutting off power would impose on customers and communities affected by the shut off. The application must also identify proposed mitigation measures to reduce or eliminate the inevitable adverse impacts caused by shutting off power, particularly the adverse impacts on people with disabilities, providers of essential services, and schools.

7. Investor-owned electric utilities shall file and serve a Tier 3 advice letter to revise their tariffs to state that the electric utility may shut off power to customers who do not allow access to their property for vegetation management activities, subject to the following conditions:

8. Phase 3 of this proceeding is instituted to consider, develop, and adopt regulations regarding the following matters:

9. Facilitated workshops shall be held in Phase 3 regarding the matters identified in the previous Ordering Paragraph. The Assigned Commissioner and/or the assigned Administrative Law Judge may appoint a neutral facilitator for the Phase 3 workshops.

10. The assigned Commissioner shall convene a prehearing conference (PHC) for Phase 3 and set a schedule for parties to file written comments prior to the PHC regarding the scope of Phase 3. These comments may include proposals to add and/or delete issues from Phase 3.

11. Today's decision constitutes a preliminary scoping memo for Phase 3 and, as such, sets a preliminary deadline of 18 months from the issuance date of today's decision for resolving Phase 3 issues pursuant to Pub. Util. Code § 1701.5(b). The final deadline will be set forth in the Assigned Commissioner's scoping memo for Phase 3. The exact scope and schedule for Phase 3, and the process and procedures for conducting Phase 3, shall be set forth in the assigned Commissioner's scoping memo for Phase 3.

12. Until permanent fire-threat maps are adopted in Phase 3, the electric utilities and communication infrastructure providers (CIPs) shall use the following fire-threat maps to implement the fire-prevention measures adopted by Decision (D.) 09-08-029 and today's decision that rely on a fire-threat map for their implementation:

13. Any utility with deregulated rates or rate flexibility that seeks to place a line-item charge on its customer bills to recover costs that are incurred as a result of this proceeding must not state or imply that the line-item charge is mandated or approved by the Commission.

14. The electric investor-owned utilities (IOUs) and Small Local Exchange Carriers (LECs) shall use the following procedures to request the recovery of the costs they incur to implement the regulations adopted in this proceeding:

15. All entities subject to the rules, regulations, and ordering paragraphs adopted by today's decision shall implement these directives as soon as possible. Today's decision does not adopt any deadlines except those specifically established in the rules, regulations, or ordering paragraphs themselves.

16. For the purpose of the previous ordering paragraphs, Southern California is defined as Imperial, Los Angeles, Orange, Riverside, Santa Barbara, San Bernardino, San Diego, and Ventura Counties. Northern California is defined as all other counties in California.

17. This proceeding remains open for Phase 3.

This order is effective today.

Dated January 12, 2012, at San Francisco, California.

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