3. Priority System for Curtailment of Electricity

In the 1970's, the Commission adopted a priority system for the curtailment of electricity during periods when demand exceeds supply. (Decision (D.) 86081 (July 7, 1976), 80 CPUC 157.) The adopted priority system, as modified by later orders, separately identifies essential customers from other customers. (D.91548 (April 15, 1980), 3 CPUC2d 510.) It defines essential customers as those normally exempt from rotating outages because they provide a service necessary for the public health, safety, or welfare. These include government agencies providing critical fire, police, prison, and national defense services. Under the Commission's rules, hospitals with 100 beds or more are essential customers, and are normally exempt from rotating outages. (D.91548, 3 CPUC2d 510, 532.)

Utilities were ordered to file action plans, which were reviewed in subsequent proceedings. In one such review, Commission staff stated that customers with sufficient standby generating equipment for their essential load should not be routinely protected from rotating outages because this double protection may jeopardize other equally essential customers. Staff recommended "that the utilities be directed to evaluate the adequacy of the standby generating equipment of protected customers and to consider removing them from the lists of essential use customers." (D.82-06-021 (June 2, 1982), Cal. PUC LEXIS 537.) The Commission adopted the staff recommendation. (D.82-06-021, Findings of Fact 2 and 3.)