BILL ANALYSIS SB 68 X2 Page 1 SENATE THIRD READING SB 68 X2 (Battin) As Amended June 7, 2001 2/3 vote. Urgency SENATE VOTE :39-0 ENERGY 16-0 APPROPRIATIONS 20-0 ----------------------------------------------------------------- |Ayes:|Wright, Pescetti, Briggs, |Ayes:|Migden, Bates, Alquist, | | | | |Aroner, Washington, | | |Bill Campbell, John | |Corbett, Correa, Daucher, | | |Campbell, Cancimilla, | |Goldberg, Maldonado, | | |Diaz, Dickerson, Florez, | |Robert Pacheco, Papan, | | |Leonard, Reyes, Richman, | |Pavley, Runner, Simitian, | | |Steinberg, Vargas, Wesson | |Thomson, Wesson, Wiggins, | | |Zettel | |Wright, Zettel | | | | | | ----------------------------------------------------------------- SUMMARY : Requires the California Public Utilities Commission (CPUC) to consider, when establishing priorities in a rotating blackout, the potential effect of extreme temperatures on the health and safety of residential customers. Specifically, this bill : 1)Requires CPUC to make a determination of the potential effect of extreme temperatures on the health and safety of residential customers when establishing priorities among the categories of customers of electrical corporation, and to do all of the following: a) Consult with medical experts; b) Take into account the potential health, safety, and reliability effects on other customers resulting from potentially more frequent and longer blackouts; c) Only provide additional outage exemptions to those customers when the temperature is extreme; and, d) Consider whether alternatives to a complete exemption from rolling blackouts, such as reduced outage duration or an outage at a different time of day, are appropriate. EXISTING LAW requires CPUC to: SB 68 X2 Page 2 1)Establish priorities among the types of customers of every electric and gas corporation, and among the uses of electricity or gas by such customers. 1)Determine which customers and uses provide the most important public benefit and serve the greatest public need, and categorize those customers and uses in descending priority. When establishing those priorities, CPUC must include a determination of: a) The customers and uses of electricity and gas, which provide the most important public benefits and serve the greatest public need; and, b) The economic, social, and other effects of a temporary discontinuance in electricity and gas service to those customers and uses. FISCAL EFFECT : Unknown COMMENTS : Two months ago, CPUC issued a decision revising the list of "essential customers" who are exempt from rotating outages. The list includes essential public services such as police, fire, hospitals, government agencies essential to the national defense, and specified customers who agree to reduce their usage during rotating outages. The electric grid is divided into distribution circuits. When an "essential customer" is exempted from a rotating blackout, every other customer on that circuit is exempted as well. Statewide, approximately 50% of the load is exempt from rolling blackouts. This bill requires CPUC to consider, when establishing priorities in a rotating blackout, the potential effect of extreme temperatures on the health and safety of residential customers. CPUC would not be required to exempt these customers, but simply to consider the effect on the health and safety of customers who live in extreme temperatures. Adding customers to the list of essential customers would decrease the amount of load available for rotating outages. This would increase both the frequency and duration of outages for non-exempt customers. (Currently, rolling blackouts typically last between one and two hours for most customers.) Additionally, any of these customers may already have petitioned SB 68 X2 Page 3 CPUC for an exemption based on health and safety issues. There has been a process in place at CPUC to accommodate special needs and balance these against overall grid reliability and equity among customers. This bill asks the Legislature to effectively override the policy decision already made at CPUC in this regard and to require the agency to review policies and exemptions or special accommodations, when it has already done so in light of system constraints. Increasing the number of exempt customers could threaten the reliability of the grid. CPUC currently requires utilities to have 40% of their load available to participate in rolling blackouts. (As noted above, approximately 50% of circuits are presently available for this purpose.) If CPUC, pursuant to this bill, elected to exempt customers living in areas of extreme temperatures from rotating outages, the number of exempt customers could potentially rise above the utilities' current 40% of load requirement. Overexposure to heat can prove deadly, especially for the elderly. In 1995, Chicago experienced a heat wave that resulted in 465 deaths. These deaths occurred as a result of prolonged exposure to heat. Rolling blackouts, on the other hand, typically last between one and two hours. The limited duration of rotating outages limits a customer's exposure to extreme heat. Disconnection of electric service, on the other hand, poses a more significant threat to the health of customers in areas of extreme heat. Legislation enacted in the First Extraordinary Session [AB X1 3 (Wright), Chapter 11, Statutes of 2001] prohibits utilities from disconnecting customers that are in compliance with payment arrangements offered by a gas or electric utility. Analysis Prepared by : Joseph Lyons / E. C. & A. / (916) 319-2083 FN: 0002168