COM/TAS/lil Date of Issuance 1/18/2012

Decision 12-01-032 January 12, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Revise and Clarify Commission Regulations Relating to the Safety of Electric Utility and Communications Infrastructure Provider Facilities.

Rulemaking 08-11-005 (Filed November 6, 2008)

DECISION ADOPTING REGULATIONS TO REDUCE
FIRE HAZARDS ASSOCIATED WITH OVERHEAD POWER LINES AND COMMUNICATION FACILITIES

DECISION ADOPTING REGULATIONS TO REDUCE FIRE HAZARDS ASSOCIATED WITH OVERHEAD POWER LINES AND COMMUNICATION FACILITIES 1

1. Summary 2

2. Background 5

2.1. Procedural Background 5

2.2. The Phase 2 Workshops 7

2.3. The Phase 2 Workshop Report and Briefs 9

3. Commission Jurisdiction 10

4. Criteria for the Adoption of New Regulations 12

5. Consensus Proposals 14

5.1. Consensus Proposal 1 re: GO 95, Rule 18A 14

5.1.1. Summary of Proposal 14

5.1.2. Position of the Parties 14

5.1.3. Discussion 15

5.2. Consensus Proposal 2 re: GO 95, Rule 18B 16

5.2.1. Summary of Proposal 16

5.2.2. Position of the Parties 17

5.2.3. Discussion 18

5.3. Consensus Proposal 3 re: GO 95, Rule 35 19

5.3.1. Summary of Proposal 19

5.3.2. Position of the Parties 20

5.3.3. Discussion 21

5.4. Consensus Proposal 4 re: GO 95, Rule 37, Table 1, Case 14 and Footnotes (fff) - (jjj) 22

5.4.1. Summary of Proposal 22

5.4.2. Position of the Parties 23

5.4.3. Discussion 23

5.5. Consensus Proposal 5 re: GO 95, Rules 23.0, 44.1, 44.2, and 44.3 24

5.5.1. Summary of Proposal 24

5.5.2. Position of the Parties 26

5.5.3. Discussion 26

5.6. Consensus Proposal 6 re: GO 165, Sections I - IV 27

5.6.1. Summary of Proposal 27

5.6.2. Position of the Parties 28

5.6.3. Discussion 29

6. Contested Proposals 30

6.1. Contested Proposals 1A and 1B re: GO 95, Rule 11 31

6.1.1. Summary of Proposals 31

6.1.2. Position of the Parties 31

6.1.3. Discussion 33

6.2. Contested Proposal 2 re: GO 95, Rule 12 and GO 165 34

6.2.1. Summary of Proposal 34

6.2.2. Position of the Parties 35

6.2.3. Discussion 35

6.3. Contested Proposals 3A and 3B re: GO 95, Rule 18A 36

6.3.1. Summary of Proposals 36

6.3.2. Position of the Parties 38

6.3.3. Discussion 42

6.4. Contested Proposal 4 re: GO 95, Rule 18C 45

6.4.1. Summary of Proposal 45

6.4.2. Position of the Parties 45

6.4.3. Discussion 48

6.5. Contested Proposal 5 re: GO 95, Rule 31.1 55

6.5.1. Summary of Proposal 55

6.5.2. Position of the Parties 56

6.5.3. Discussion 58

6.6. Contested Proposals 6A - 6D re: GO 95, Rules 31.2 and 80.1A 61

6.6.1. Summary of Proposals 6A and 6B 61

6.6.2. Summary of Proposals 6C and 6D 62

6.6.3. Position of the Parties 63

6.6.4. Discussion 71

6.7. Contested Proposal 6E re: GO 95, Rule 80.1B 79

6.7.1. Summary of Proposal 79

6.7.2. Position of the Parties 80

6.7.3. Discussion 83

6.8. Contested Proposal 7A re: GO 95, Rule 35, Paragraph 4 86

6.8.1. Summary of Proposal 86

6.8.2. Position of the Parties 86

6.8.3. Discussion 90

6.9. Contested Proposal 7B re: GO 95, Rule 35, Third Exception 95

6.9.1. Summary of Proposal 95

6.9.2. Position of the Parties 96

6.9.3. Discussion 98

6.10. Contested Proposal 8A re: GO 95, Appendix E 99

6.10.1. Summary of Proposal 99

6.10.2. Position of the Parties 100

6.10.3. Discussion 101

6.11. Contested Proposals 8B and 8C re: GO 95, Rule 35, Appendix E, Guidelines Only 102

6.11.1. Summary of Proposals 102

6.11.2. Position of the Parties 104

6.11.3. Discussion 105

6.12. Contested Proposal 9 re: GO 95, Rule 38, Table 2, Footnote (aaa) 107

6.12.1. Summary of Proposal 107

6.12.2. Position of the Parties 108

6.12.3. Discussion 110

6.13. Contested Proposals 10A and 10B re: GO 95, Rule 44.2, Rule 44.4, and Appendix I 111

6.13.1. Summary of Proposals 111

6.13.2. Position of the Parties 113

6.13.3. Discussion 114

6.14. Contested Proposals 11A and 11B re: GO 95, Rule 48 117

6.14.1. Summary of Proposals 117

6.14.2. Position of the Parties 118

6.14.3. Discussion 120

6.15. Contested Proposal 12 re: GO 95, Rule 91.5 123

6.15.1. Summary of Proposal 123

6.15.2. Position of the Parties 124

6.15.3. Discussion 126

6.16. Contested Proposals 13A and 13B re: GO 165, Section V and Proposed Ordering Paragraph 128

6.16.1. Summary of Proposals 128

6.16.2. Position of the Parties 129

6.16.3. Discussion 132

6.17. Contested Proposals 14A, 14B, and 14C re: Fire-Threat Maps 135

6.17.1. Summary of Proposals 135

6.17.1.1 Summary of Contested Proposal 14A 136

6.17.1.2 Summary of Contested Proposals 14B and 14C 137

6.17.2. Position of the Parties 138

6.17.3. Position of Cal Fire 141

6.17.4. Discussion 142

6.18. Record Retention 150

6.19. Commission Jurisdiction and Publicly Owned Utilities 150

6.20. Cost Recovery 151

6.20.1. Cost Recovery for Electric IOUs 153

6.20.2. Cost Recovery for the Small LECs 154

6.21. Implementation 156

7. California Environmental Quality Act 156

8. Proposed Rulemaking Proceeding re: Electric Tariff Rule 20 158

8.1. Background 158

8.2. Position of the Parties 160

8.3. Discussion 163

9. Need for Hearing 164

10. Comments on the Proposed Decision 164

11. Assignment of the Proceeding 165

Findings of Fact 165

Conclusions of Law 168

ORDER 174

Appendix A: Proposed Regulations A-1

Consensus Proposal 1 re: GO 95, Rule 18A A-2

Consensus Proposal 2 re: GO 95, Rule 18B A-5

Consensus Proposal 3 re: GO 95, Rule 35 A-6

Consensus Proposal 4 re: GO 95, Rule 37, Table 1, Case 14 and Footnotes (fff) - (jjj) A-7

Consensus Proposal 5 re: GO 95, Rules 23, 44.1, 44.2, and 44.3 A-9

Consensus Proposal 6 re: GO 165, Sections I - IV A-11

Contested Proposal 1A re: GO 95, Rule 11 (CPSD) A-17

Contested Proposal 1B re: GO 95, Rule 11 (CIP Coalition) A-17

Contested Proposal 2 re: GO 95, Rule 12 (CPSD) A-17

Contested Proposal 3A re: GO 95, Rule 18 (CIP Coalition) A-18

Contested Proposal 3B re: GO 95, Rule 18 (SDG&E) A-22

Contested Proposal 4 re: GO 95, Rule 18C (MGRA) A-26

Contested Proposal 5 re: GO 95, Rule 31.1 (Joint Utilities) A-26

Contested Proposal 6A re: GO 95, Rule 31.2 (CIP-1) A-28

Contested Proposal 6B re: GO 95, Rule 31.2 (CIP-2) A-29

Contested Proposal 6C re: GO 95, Rule 31.2 and Rule 80.1 (CPSD) A-30

Contested Proposal 6D re: GO 95, Rule 31.2 and Rule 80.1 (SDG&E) A-32

Contested Proposal 6E re: GO 95, Rule 31.2 and Rule 80.1B (CPSD) A-34

Contested Proposal 7A re: GO 95, Rule 35, Paragraph 4 (Joint Utilities) A-35

Contested Proposal 7B re: GO 95, Rule 35, Exception 3 (Joint Utilities) A-36

Contested Proposal 8A re: GO 95, Rule 35, Appendix E, Table (Joint Utilities) A-38

Contested Proposal 8B re: GO 95, Rule 35, Guidelines (Joint Utilities) A-38

Contested Proposal 8C re: GO 95, Rule 35, Guidelines (CFBF and MGRA) A-39

Contested Proposal 9 re: GO 95, Rule 38, Table 2, Footnote (aaa) (Joint Utilities) A-39

Contested Proposal 10A re: GO 95, Rule 44.4 (CIP Coalition) A-40

Contested Proposal 10B re: GO 95, Rule 44.2, Rule 44.4, and Appendix I (Joint Utilities) A-41

Contested Proposal 11A re: GO 95, Rule 48 (Joint Utilities) A-43

Contested Proposal 11B re: GO 95, Section IV, Proposed Ordering Paragraph (CPSD) A-43

Contested Proposal 12 re: GO 95, Proposed Rule 91.5 (SDG&E) A-43

Contested Proposal 13A re: GO 165, Section V (CPSD and MGRA) A-44

Contested Proposal 13B re: Proposed Ordering Paragraph on Data Collection (PG&E) A-44

Contested Proposal 14A re: Proposed Ordering Paragraph Regarding Fire Maps (CPSD and MGRA) A-45

Contested Proposals 14A and 14B re: GO 95, Rule 31.2, Fire Maps for CIP Inspections A-46

Appendix B: Adopted Revisions to General Orders 95, 165, and 166 B-1

General Order 95, Rule 11 B-2

General Order 95, Rule 18A B-3

General Order 95, Rule 18B B-6

General Order 95, Rule 23.0 B-6

General Order 95, Rule 31.1 B-7

General Order 95, Rule 31.2 B-8

General Order 95, Rule 35 B-9

General Order 95, Rule 35, Appendix E, Guidelines B-11

General Order 95, Rule 35, Appendix E, Table B-11

General Order 95, Rule 37, Table 1, Case 14 and Footnotes (fff) -(jjj) B-12

General Order 95, Rules 44.1, 44.2, 44.3 B-13

General Order 95, Rule 44.4 B-14

General Order 95, Rule 80.1A B-15

General Order 95, Rule 80.1B B-18

General Order 95, Rule 91.5 B-20

General Order 165, Sections I - IV B-21

General Order 166, Standard 1.E B-26

Appendix C: Adopted Interim Fire-Threat Maps C-1

DECISION ADOPTING REGULATIONS TO REDUCE FIRE HAZARDS ASSOCIATED WITH OVERHEAD POWER LINES AND COMMUNICATION FACILITIES

1. Summary

Today's decision adopts regulations to reduce the fire hazards associated with overhead power lines and aerial communication facilities located in close proximity to power lines. The most significant regulations adopted by today's decision are as follows:

· Rule 18A of General Order (GO) 95 is revised to require electric utilities and communication infrastructure providers (CIPs) to correct within 12 months any Level 2 nonconformance that creates a fire hazard in a high fire-threat area of Southern California.

· Rule 31.2 of GO 95 is revised to require CIPs to inspect their aerial facilities on the following cycles:

i. Patrol inspections every year for facilities located in high fire-threat areas of Southern California, and every two years for facilities located in high fire-threat areas of Northern California.

ii. Detailed inspections every five years for facilities located in high fire-threat areas of Southern California, and every 10 years for facilities located in high fire-threat areas of Northern California.

iii. The inspection requirements in Items (i) - (ii) apply to CIP facilities attached to joint-use poles and to CIP-only poles within three spans of a joint-use pole.

iv. Intrusive inspections on the cycles set forth in GO 165 for CIP-only poles that are located within three spans of a joint-use pole in high fire-threat areas of Southern California, and within one span of a joint-use pole in high fire-threat areas of Northern California.

· Rule 35 of GO 95 is revised to (1) apply vegetation management requirements to electric utility facilities and CIP facilities located on lands owned by state and local agencies; (2) require electric utilities and CIPs to remove vegetation-related strain on conductors energized at 750 volts or less; and (3) allow electric utilities and CIPs to notify land owners who obstruct vegetation management that if a vegetation-related fire occurs, the company may seek to recover its fire-related costs from the land owner.

· Rule 44.2 of GO 95 is revised to require pole-loading calculations whenever there is a material increase in load as defined by Ordering Paragraph 4 of Decision 09-08-029. Rule 44.4 is revised to require entities to share information needed for pole-loading calculations.

· A new Rule 91.5 is added to GO 95 that requires CIPs to attach a marker to newly constructed and reconstructed CIP facilities on joint-use poles. The marker must identify the owner of the CIP facilities and provide contact information for the owner.

· Appendix E of GO 95 is revised to (1) state that electric utilities and CIPs may exceed the recommended minimum time-of-trim vegetation clearances, and (2) provide a list of factors that electric utilities and CIPs should consider when deciding whether, and to what extent, to exceed the recommended minimum time-of-trim clearances.

· A new Standard 1.E is added to GO 166 that requires investor-owned electric utilities (electric IOUs) in Southern California to prepare and submit plans to prevent power-line fires during extreme fire-weather events. Electric IOUs in Northern California must make a good faith effort to determine if there is a credible possibility of extreme fire-weather events in their service territories and, if so, to prepare and submit plans to prevent power-line fires from occurring during such events.

· Electric IOUs are authorized to revise their tariffs to state that the electric utility may shut off power to a property owner who obstructs access to the utility's overhead power-line facilities located on the owner's property for vegetation management purposes. This authority is limited to (1) situations where vegetation has breached the minimum required clearances for bare-line conductors set forth in GO 95, Rule 35, Table 1, Cases 13 and 14; and (2) one meter serving the property owner's primary residence, or if the property owner is a business entity, the entity's primary place of business. This one meter is in addition to shutting off power at the location of the vegetation-related fire hazard. Prior to shutting off power, the electric utility must follow the notice requirements that are applicable to the discontinuance of service for non payment, including the notice requirements applicable for sensitive customers, customers who are not proficient in English, multifamily accommodations, and other customer groups.

· A new Phase 3 of this proceeding is established to consider, develop, and adopt regulations regarding the following matters: (1) Revising Section IV of GO 95 to reflect modern materials and practices, with the goal of improving fire safety. (2) Revising Section IV of GO 95 to incorporate a new High Fire-Threat District and new standards for the design and construction of electric utility and CIP structures located in the new District. (3) Developing a plan for the Consumer Protection and Safety Division to collect data from electric IOUs regarding power-line fires and using this data to (a) identify and assess systemic fire-safety risks associated with overhead power-line facilities and aerial CIP facilities in close proximity to power lines, and (b) formulate cost-effective measures to reduce systemic fire-safety risks. (4) Developing fire-threat maps. This last matter will include consideration of fire-threat maps developed by the CIP Coalition (the Reax Map), San Diego Gas & Electric Company (SDG&E), and other parties. The California Department of Forestry and Fire Protection (Cal Fire), Lawrence Livermore National Laboratory, and the parties to this proceeding are invited to participate in Phase 3. The final scope and schedule for Phase 3 will be set forth in the Assigned Commissioner's scoping memo for Phase 3.

· Until permanent fire-threat maps are adopted in Phase 3, the electric utilities and CIPs shall use, on an interim basis, the Reax Map, the SDG&E Map, and Cal Fire's Fire Resource Assessment Program Fire Threat Map to implement the fire-prevention measures adopted in this proceeding.

The investor-owned electric utilities may file applications to recover the costs they incur to implement the regulations adopted in this proceeding until their next general rate case (GRC) proceedings. The electric utilities shall thereafter seek to recover such costs through the GRC process. Similarly, the Small Local Exchange Carriers may use their annual California High Cost Fund-A advice letters to recover the costs they incur to implement the regulations adopted in this proceeding until their next GRC proceedings.

Finally, today's decision denies the request by several parties to open a new rulemaking proceeding to consider if electric Tariff Rule 20 should be amended to add "fire risk" to the list of reasons to permit the undergrounding of aerial facilities pursuant to Tariff Rule 20.