2019 -- S 0261

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND

CARRIERS

     

     Introduced By: Senators Picard, Euer, and DiPalma

     Date Introduced: February 13, 2019

     Referred To: Senate Commerce

     (Lieutenant Governor)

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 39-2 of the General Laws entitled "Duties of Utilities and Carriers"

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is hereby amended by adding thereto the following sections:

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     39-2-26. Emergency response plans - Submission, approval, penalties for failure to

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file, and denial of recovery of service restoration costs for failure to implement emergency

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response plan.

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     (a) Each electric distribution company and natural gas distribution company conducting

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business in the state shall, on or before May 15, 2020 and annually thereafter, submit to the

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division an emergency response plan for review and approval. The emergency response plan shall

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be designed for the reasonably prompt restoration of service in the case of an emergency event,

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which is an event where widespread outages have occurred in the service area of the company

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due to storms or other causes beyond the control of the company.

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     (b) After review of an electric distribution or natural gas distribution company's

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emergency response plan, the division may request that the company amend the plan. The

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division may open an investigation of the company's plan. If, after hearings, the division finds a

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material deficiency in the plan, the division may order the company to make such modifications

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that it deems reasonably necessary to remedy the deficiency.

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     (c) Any investor-owned electric distribution or natural gas distribution company that fails

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to file its emergency response plan may be fined five hundred dollars ($500) for each day during

 

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which such failure continues. Any fines levied by the division shall be returned to ratepayers

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through distribution rates in a manner determined by the commission.

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     (d) Each investor-owned electric distribution or natural gas distribution company, when

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implementing an emergency response plan, shall designate an employee or employees to remain

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stationed at the Rhode Island emergency management agency's emergency operations center for

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the duration of the emergency when the emergency operations center is activated in response to

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an emergency with an electric or gas service restoration component. In the event of a virtual

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activation of the emergency activation center, each investor-owned electric and natural gas

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distribution company shall designate an employee or employees to participate in the virtual

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activation. The employee or employees shall coordinate communications efforts with designated

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local and state emergency management officials, as required by this section.

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     (e) Each investor-owned electric distribution or natural gas distribution company, when

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implementing an emergency response plan, shall designate an employee or employees to serve as

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community liaisons for each municipality within their service territory. An investor-owned

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electric distribution or natural gas distribution company shall provide each community liaison

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with the necessary feeder map or maps outlining municipal substations and distribution networks

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and up-to-date customer outage reports at the time of designation as a community liaison. An

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investor-owned electric distribution or natural gas distribution company shall, at a minimum,

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provide each community liaison with three (3) customer outage report updates for each twenty-

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four (24) hour period, to the liaison's respective city or town. The community liaison shall utilize

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the maps and outage reports to respond to inquiries from state and local officials and relevant

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regulatory agencies.

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     (f) On or before October 1 of each year, every city or town shall notify each investor-

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owned electric distribution or natural gas distribution company and the Rhode Island emergency

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management agency of the name of the emergency management official or designee responsible

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for coordinating the emergency response during storm restoration. If a municipality does not have

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a designated emergency management official, the chief municipal officer shall designate one

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public safety official responsible for said emergency response.

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     (g) Notwithstanding any existing power or authority, the division may open an

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investigation to review the performance of any investor-owned electric distribution or natural gas

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distribution company in restoring service during an emergency event. If, after evidentiary

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hearings or other investigatory proceedings, the division finds that, as a result of the failure of the

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company to follow its approved emergency response plan, the length of the outages were

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materially longer than they would have been but for the company's failure, the division shall

 

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recommend that the commission enter an order denying the recovery of all, or any part of, the

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service restoration costs through distribution rates, commensurate with the degree and impact of

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the service outage.

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     (h) Notwithstanding any general or special law or rule or regulation to the contrary, upon

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request by the commission, division and any emergency management agency each electric

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distribution or natural gas distribution company conducting business in the state shall provide

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periodic reports regarding emergency conditions and restoration performance during an

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emergency event consistent with orders of the commission and/or division.

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     39-2-27. Standards of acceptable performance for emergency preparation and

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restoration of service.

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     The division shall open a docket and establish standards of acceptable performance for

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emergency preparation and restoration of service for each investor-owned electric and gas

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distribution company doing business in the state. The division shall levy a penalty not to exceed

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one hundred thousand dollars ($100,000) for each violation for each day that the violation of the

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division's standards persists; provided, however, that the maximum penalty shall not exceed

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seven million five hundred thousand dollars ($7,500,000) for any related series of violations. The

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division shall open a full investigation, upon its own initiative. Nothing herein shall prohibit any

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affected city or town from filing a complaint with the division regarding a violation of the

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division's standards of acceptable performance by an investor-owned electric distribution or

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natural gas distribution company; provided, however, that said petition shall be filed with the

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division no later than ninety (90) days after the violation has been remedied. After an initial

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review of the complaint, the division shall make a determination as to whether to open a full

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investigation.

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     39-2-28. Levied penalties to be credited back to customers.

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     Any penalty levied by the division against an investor-owned electric distribution or

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natural gas distribution company for any violation of the division's standards of acceptable

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performance for emergency preparation and restoration of service for electric and gas distribution

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companies shall be credited back to the company's customers in a manner determined by the

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commission.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND

CARRIERS

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     This act would require every electric distribution company and natural gas distribution

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company conducting business in the state would, on or before May 15, 2020, and annually

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thereafter, submit to the division of public utilities and carriers an emergency response plan for

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review and approval. The act would also authorize the assessment of monetary penalties to each

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investor-owned electric and gas distribution company doing business in the state when the

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company does not comply with the division's requirements for responding to and restoring utility

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service to customers.

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     This act would take effect upon passage.

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