Enacts the "utility preparedness act of 2014"

Summary of provisions

Section 1 provides that the act shall be entitled "utility preparedness act of 2014."

Section 2 provides that the public service law is amended by adding a new section, 66-n, entitled "utility preparedness act of 2014."

Section 1(a) of § 66-n defines "electric transmission and distribution company" to include investor-owned utilities having annual revenues in excess of $200 million that transmit electricity within New York State. Section 1(b) defines "vegetation management."

Section 2 (a) of § 66-n requires that no later than one year following the effective date of this section, the PSC shall create power restora- tion performance benchmarks and standards for utility companies to reduce the duration of power outages, and to facilitate restoration of power after outages or disruptions.

Section 2 of § 66-n provides that these benchmarks and standards are established for power outages in which more than ten percent of a utili- ty's customers are without power for more than forty-eight consecutive hours.

Sections 2 (b) (i) through (xiv) of § 66-n establish that standards and benchmarks shall include provisions for minimum staffing and equipment levels for each company; timetables for restoration of power in outages affecting more than ten percent, thirty percent, fifty percent and seventy percent of such company's customers; creation and-requirements of a communication plan between each company and its customers, includ- ing communication during time periods that are not considered normal business hours; safety of companies' employees, mutual aid crews and private contractors; notification of the commission and the public when a company has requested aid for storm restoration assistance from other utilities, including the number of workers and/or equipment the company

has requested; communication and coordination between each company and the relevant state or local emergency operations center concerning emer- gency preparation, road clearing, and restoration activities; tree trim- ming, cutting and removal by each utility company to reduce power outages caused by trees and limbs; coordination and communication between the utility and the public; reimbursement for actual losses of spoiled food due to refrigeration caused by power outages lasting forty-eight or more hours when greater than ten percent of residential customers have lost power up to $200 per itemized list and above $200 upon submission of itemized list and proof of loss, up to a maximum of $450 for any one customer, and actual losses of perishable prescription medicine spoiled as a result of such outages; timely notice of outage by utilities to state and municipal agencies; operation of an emergency call center by each company; and any other standards the commission deems necessary.

Section 2(c) (i) through (vi) of § 66-n provide that the PSC, in devel- oping its power restoration performance benchmarks and standards required under the bill, shall review the current practices of electric transmission and distribution companies; the adequacy-of each company's infrastructure, facilities and equipment; vegetation management policies of each company; impact of burying power lines underground; impact of expanding area adjacent to distribution lines for tree trimming; and any other policy or practice the PSC deems necessary. Section 2 (d) of 66-n authorizes the PSC to permit companies to recover the reasonable cost incurred by such company to maintain or improve the reliability of such company's infrastructure necessary to meet these standards. Section 2(e) of § 66-n authorizes the PSC to establish additional standards when it is deemed necessary. Section 2 (f) provides that not later than one year after the commission issues an order pursuant to subdivision 2(a) and each year thereafter, each company shall provide an emergency response report to the PSC. The report shall include information and analysis concerning the utility's conduct during the preceding year.

Section 3 of § 66-n authorizes the PSC to review the performance of each company after any emergency in which more than ten percent of any such company's customers were without power for more than forty-eight consec- utive hours

Section 3(b) of § 66-n provides that at the commissioner's discretion upon a finding, after a hearing or opportunity to be heard, that any company fails to comply with any standard required by this section or any order of the commission, the PSC is authorized to order civil penal- ties to be imposed upon such company, not to exceed a total of two and one half percent of such company gross annual revenue and with consider- ation given to whether such company recovered the costs it incurred. Satisfaction of any such penalty imposed shall be made in the form of a credit to ratepayers within 120 days of such order and shall not be included as an operating expense.

Section 3 provides for the effective date of the bill.

Justification

Recent storms, such as Hurricane Sandy, have revealed substantial gaps in the oversight of electric transmission and distribution companies. This super storm underscored that the system would greatly benefit from economic incentives to encourage faster remediation efforts, improved communication with customers and municipal governments, better planning and preparedness, and improved transparency in the operation of our utilities. This bill, based in part on Connecticut's forward-thinking legislation enacted in the wake of Hurricane Irene and the October Nor' easter, requires the utilities, and the PSC to develop, authorize and operationalize stronger storm preparedness plans. In addition, it will provide strong economic incentives for companies to move quickly and professionally in all aspects of their remediation and recovery oper- ations.

Legislative history

04/05/13- REFERRED TO ENERGY AND TELECOMMUNICATIONS

Fiscal implications

To be determined.

Local fiscal implications

To be determined.

Effective date

Immediately.