ATTACHMENT A Simon R0704015
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STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

May 9, 2008 Agenda ID # 7613

TO PARTIES OF RECORD IN RULEMAKING 07-04-015

This is the proposed decision of Commissioner Timothy Alan Simon. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. The Commission may act then, or it may postpone action until later.

When the Commission acts on the proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the proposed decision as provided in Article 14 of the Commission's Rules of Practice and Procedure (Rules), accessible on the Commission's website at www.cpuc.ca.gov. Pursuant to Rule 14.3, opening comments shall not exceed 15 pages.

Comments must be filed either electronically pursuant to Resolution ALJ-188 or with the Commission's Docket Office. Comments should be served on parties to this proceeding in accordance with Rules 1.9 and 1.10. Electronic and hard copies of comments should be sent to ALJ O'Donnell at jpo@cpuc.ca.gov and Commissioner Simon's advisor Phyllis White at prw@cpuc.ca.gov. The current service list for this proceeding is available on the Commission's website at www.cpuc.ca.gov.

/s/ ANGELA K. MINKIN

Angela K. Minkin, Chief

Administrative Law Judge

ANG:avs

Attachment

COM/TAS/avs DRAFT Agenda ID # 7613

June 26, 2007

Decision PROPOSED DECISION OF COMMISSIONER SIMON
(Mailed 5/9/2008)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Rulemaking on the Commission's Own Motion into Reliability Standards for Telecommunications Emergency Backup Power Systems and Emergency Notification Systems Pursuant to Assembly Bill 2393.

Rulemaking 07-04-015

(Filed April 12, 2007)

DECISION ADDRESSING STANDARDS FOR TELECOMMUNICATIONS BACKUP POWER SYSTEMS AND EMERGENCY NOTIFICATION SYSTEMS PURSUANT TO ASSEMBLY BILL 2393

TABLE OF CONTENTS

Title Page

DECISION ADDRESSING STANDARDS FOR TELECOMMUNICATIONS BACKUP POWER SYSTEMS AND EMERGENCY NOTIFICATION SYSTEMS PURSUANT TO ASSEMBLY BILL 2393 22

Title Page

Findings of Fact 3737

Conclusions of Law 3939

ORDER 4040

ATTACHMENT A - Final Analysis Report

DECISION ADDRESSING STANDARDS FOR TELECOMMUNICATIONS BACKUP POWER SYSTEMS AND EMERGENCY NOTIFICATION SYSTEMS PURSUANT TO ASSEMBLY BILL 2393

1. Summary

This decision concludes a proceeding that has examined several topics involving backup power supply for telecommunications systems and notification to the public of emergencies using those systems. It was initiated at the direction of legislation enacted in response to Hurricane Katrina and other disasters. Recent events, including the April 16, 2007 shootings at the Virginia Polytechnical Institute and State University and the 2007 Southern California fire storms have highlighted its importance. We provide a report to the Legislature that analyzes these topics and provides recommendations to enhance the reliability of our telecommunications network and its ability to notify the public in case of emergencies.

Assembly Bill (AB) 2393, signed into law on September 29, 2006, added §§ 776, 2872.5 and 2892.1 to the Public Utilities Code.1 Sections 776 and 2892.1 address backup power systems while § 2872.5 addresses emergency notification systems.

Section 776 requires the Commission to consider the need for performance reliability standards for backup power systems installed on a residential or small commercial customer's property by a facilities-based telecommunications service provider, and to develop and implement them if the benefits of the standards exceed the costs.

We intend to require facilities-based service providers to provide and maintain at least eight hours of backup power at the customer's premises.2 Therefore, we direct our Communications Division to prepare for our consideration a rulemaking to address this matter more comprehensively.

Section 2892.1 requires the Commission, in consultation with the Office of Emergency Services and the Department of General Services, to determine the need for backup power systems, other than those located on the customer's premises, and to determine performance criteria. The Commission is also to determine whether the best practices for backup power systems recommended by the Federal Communications Commission's Network Reliability and Interoperability Council in December 2005 (Best Practices) have been implemented by service providers. In addition, the Commission is required to determine the feasibility of using zero greenhouse gas emission fuel cell systems to replace diesel generators for such backup power systems.

Since this section was signed into law, the Federal Communications Commission issued an order that requires local exchange carriers and commercial mobile radio service providers to have 24 hours of emergency backup power for central offices and 8 hours for cell sites, remote switches and digital loop carrier system remote terminals.3 The order provides exemptions for smaller providers. We have no reason to believe that the federal requirement is unreasonable. However, it is not yet in effect and may be changed. Therefore, we find that California should not separately establish such requirements at this time. Instead, it should actively participate in the development of the federal requirements. When such requirements are established, California will be in a much better position to determine whether additional standards are needed.

As to Best Practices, there has been substantial implementation by most service providers. However, there is some room for improvement by the small local exchange carriers and we encourage their implementation of the Best Practices.

Fuel cell systems for backup power are far more costly than diesel backup power systems. Additionally, diesel backup power systems are not a significant cause of greenhouse gases because they are used infrequently. Thus we do not recommend fuel cells as a preferred means of providing backup power at this time.

Section 2872.5 requires the Commission, in consultation with the Office of Emergency Services and the Department of General Services, to determine whether there should be design and operation standards for notification systems used by entities, such as police, firefighters and emergency medical personnel, that are authorized to use automatic dialing devices to notify the public in the event of local emergencies. The Commission is not to establish standards unless the benefits exceed the costs.

California's emergency notification systems should be compatible with systems in other states and with federal requirements when they are established. Therefore, we find that California should not separately establish standards at this time. Instead, it should actively participate in the development of the federal requirements. When such standards are established, California will be in a much better position to determine whether additional standards are needed.

Through AB 2231, the Office of Emergency Services is required to examine policies, procedures and a framework to enhance public access to emergency alerts. We provide guidance to our Communications Division to continue the cooperation established with the Office of Emergency Services in this proceeding with respect to enhancing emergency alerting in California.

This proceeding is closed.

1 All section references are to the Public Utilities Code.

2 As used herein regarding backup power systems on the customer's premises, backup power refers to the amount of backup power necessary to maintain the capability of making a call, not continuous talk time.

3 When used in connection with facilities other than those located on the customer's premises, the amount of backup power refers to power needed to continue operating the telecommunications network, including ongoing usage by customers.

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