4. Hearing

Hearing was held on the emergency motions on March 22, 2001. MHS and CHW presented three witnesses in support of the motions. Statements in support of the motions were also made by the California Association of Health Facilities (CAHF), plus the University of California and California State University (which include several medical centers). CAHF also asks that the exemption be extended to include all skilled nursing facilities.

MHS and CHW presented evidence that SCE curtailed electricity service to two hospitals on March 19, 2001. According to MHS and CHW, SCE now includes a hospital in rolling outages if the hospital has backup generation.

MHS and CHW assert that SCE does not, however, make an evaluation of the adequacy of the backup generation. Rather, it is their understanding that SCE makes this determination based on whether or not the hospital complies with Office of Statewide Health Planning and Development (OSHPD) regulations. While those regulations require backup emergency generation equipment, they only protect a hospital's critical functions, according to MHS and CHW, such as the cessation of procedures already underway, and the continued maintenance of a small and explicitly defined list of minimal hospital functions.

MHS and CHW testify that PG&E applies either the OSHPD standard, or another standard. In either case, however, the same unacceptable result is reached, according to MHS and CHW.

SCE affirms its use of OSHPD regulations, and contends these regulations represent a reasonable, objective means to evaluate whether hospital facilities possess adequate standby generation. PG&E states that it discusses the adequacy of backup generation with its customers, and generally relies on a customer's representation of adequacy.

Neither PG&E nor SCE oppose the motions, but each note that other groups may ask for similar exemption, with expansion of the number of exempted customers negatively affecting other customers. SCE asks that any ruling on the motions indicate the extent to which other essential customer classifications are impacted, and the extent to which the standby generation rule adopted in Decision No. 82-06-021 applies.