TO:
Honorable Mayor and Members of the City Council
FROM:
David N. Carmany, City Manager
SUBJECT:Title
Supplemental Report on the Level of Service Provided By Southern California Edison (SCE).
DISCUSS AND PROVIDE DIRECTION, RECEIVE AND FILE
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Recommended Action
RECOMMENDATION:
It is respectfully requested that the City Council consider and discuss the information herein; provide staff and the Mayor with direction as appropriate; and receive and file this report.
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FISCAL IMPLICATIONS:
There are nominal fiscal implications associated with this item if Council authorizes the Mayor to continue working with legislators and regional elected officials. One option under consideration is for legislators and regional elected officials to appear before the California Public Utilities Commission (PUC) in San Francisco. If Council authorizes the Mayor to appear before the PUC there is sufficient funding in the City Council "Conferences and Meetings" budget to defray travel expenses.
BACKGROUND:
Electrical service provided by Southern California Edison (SCE) to residents and businesses in the City of Manhattan Beach have been subject to numerous disruptions in recent years. The disruptions have included planned outages when SCE has upgraded equipment and an increasing number of unplanned outages. While some of the unplanned outages have been due to Palm tree fronds and metallic balloons interfering with power generation infrastructure, many others appear to have been caused by system failures and deferred maintenance. Regardless of the cause the electrical service provided by SCE to the Manhattan Beach community has been unreliable and adversely impacted the City.
On August 20, 2013, staff presented a report to Council with options to address the unreliability of electrical service supplied by SCE (Attachment 1). Council directed staff to prepare a letter to the PUC which regulates SCE (Attachment 2) and the Mayor to work with state legislators and regional officials as part of a "phased approach." Since the August 20, 2013 Council meeting, however, there have been a series of unplanned outages and poorly implemented planned outages. The disruptions have adversely impacted residents, businesses, and the City.
The Mayor and staff are returning to Council for direction before taking further action to address the unreliability of electrical service by SCE.
DISCUSSION:
The reliability of SCE service in the City of Manhattan Beach has markedly declined during the past several years. Staff estimates during the past 12 months there have been approximately 30 power outages of varying duration which have impacted thousands of SCE customers throughout the City. The outages have inconvenienced residents, harmed businesses, and strained City services.
Since this matter was last discussed by Council at its August 20, 2013 meeting, the reliability of power supplied by SCE appears to have worsened. While City staff had a productive meeting with SCE representatives to review current and upcoming improvements, a series of unplanned outages have occurred within the City of Manhattan Beach and other South Bay cities. Power disruptions in Downtown Manhattan Beach and at the Manhattan Village shopping center have cast restaurants into darkness and prevented retailers from completing sales.
City services have been required to address the recurrent problems with SCE infrastructure. Manhattan Beach Fire Department personnel were called to extinguish fires caused by failed SCE equipment and Manhattan Beach Police Department officers were required to direct traffic when roadway street lights were without power.
Planned outages since the August 20, 2013 Council meeting have also adversely impacted residents and businesses. Outages were scheduled on a religious holiday in one instance and during peak business hours in another before City staff intervened to insist the dates be changed. Customers have also had to seek help from City staff when information about unplanned outages was not readily available. The SCE website is not easy to navigate and the SCE telephone hotline is not well advertised.
Further, information distributed by SCE about outages has not always been accurate. Downtown businesses received notice from SCE that a planned outage was scheduled for Friday September 20, 2013. A representative of SCE subsequently stated in writing that no businesses would be affected. At approximately 10:00 p.m. that evening, however, a number of Downtown businesses including crowded restaurants lost power and had to send their customers away.
SCE is a state regulated utility. The company operates under a franchise agreement with the City granted in 1938. The City has limited authority to regulate the operations of SCE beyond requiring it to repair damage it causes to city streets. State legislators and the PUC, however, can assist the City.
At the direction of Council, the Mayor has worked with legislators and local elected officials to address service by SCE. The Mayor has met with State Senator Ted Lieu and the Senator sent a letter to Theodore F. Craver, Jr., Chairman, President, and Chief Executive Officer of SCE on September 15, 2013 (Attachment 3). The letter insists SCE improve its reliability or face legislation which would impose monetary damages on utilities for power outages.
The Mayor is scheduled to meet with PUC President Michael Peevey next month and is exploring options with Senator Lieu's and Assembly member Al Muratsuchi's staffs to request a PUC investigation of regional outages in the South Bay. Further, the Mayor has met with elected officials of South Bay Cities Council of Governments (SBCCOG) member cities since 2012 to explore potential collaborations in approaching the PUC. Councilmember Burton is Council's Delegate to the SBCCOG and Mayor Lesser is the Alternate Delegate and a member of the SBCCOG Board Steering Committee. One proposal under discussion is for SBCCOG members to urge the PUC to investigate repeated outages in South Bay cities.
In light of recent unplanned and planned outages and the direction at the August 20, 2013 Council meeting to pursue limited steps, the Mayor and staff seek further direction from Council before taking additional action. Options include:
1. Continue to Partner with State Legislators. On May 7, 2013, Council endorsed legislation by Assembly member Muratsuchi, AB 66, to address issues with electrical system reliability. AB 66 was approved by the Legislature and is awaiting action by the Governor. Mayor Lesser is in discussions with Senator Ted Lieu's and Assembly member Muratsuchi's staff about further action, including the initiation of an investigation by the PUC of power outages in the South Bay and potential orders directing SCE to improve its infrastructure.
2. Coordination with Other South Bay Cities Council of Governments Member Cities' Elected Officials. The Mayor has met with other SBCCOG member cities' officials to explore potential collaborations to urge PUC to investigate repeated outages by SCE in South Bay cities. One proposal under consideration is for regional elected officials including Mayor Lesser to travel to San Francisco to urge the PUC to investigate repeated outages in South Bay cities.
3. Direct Communication with the PUC. At the August 20, 2013 Council meeting, Council briefly discussed certain no and low-cost approaches to communicate with the PUC regarding ongoing reliability problems. Council may wish to authorize travel to San Francisco, either in conjunction with a regional effort or as an initial, independent effort, to communicate directly with PUC commissioners and its staff on reliability problems in Manhattan Beach.
4. Engagement of Regulatory Counsel. At the August 20, 2013 Council meeting, Council deferred a decision to engage regulatory legal counsel until other low- and no-cost alternatives were pursued. Council may wish to revisit whether it would be appropriate to engage regulatory counsel to provide advice on further options. Mayor Lesser has been in contact with one regulatory attorney who has suggested various low-cost alternatives.
5. Letter Writing Campaign. At the August 20, 2013 Council meeting, Council briefly discussed the possibility of encouraging residents to send letters to PUC Commissioners complaining about electrical service by SCE. Council may wish to revisit the benefits of such a campaign.
CONCLUSION:
It is respectfully recommended that the City Council consider and discuss the information herein; provide the Mayor and staff with direction as appropriate; and receive and file this report.
Attachments:
1. Staff Report dated August 20, 2013
2. Letter from City Manager David N. Carmany to PUC dated August 26, 2013
3. Letter from Senator Ted Lieu to Theodore F. Craver, Jr. of SCE dated September 15, 2013