Looking forward: Maybe the Governor should focus on this


Last January, Tom Johnson of New Jersey Spotlight wrote an interesting article about legislation designed to cope with the kind of disaster we are facing in the aftermath of Hurricane Sandy.

His headline: Senate Committee Holds Hurricane-Response Bill — for Now.

The legislature appears ready to overhaul how New Jersey’s four electric utilities respond to widespread power outages, such as those that occurred last summer when a hurricane made landfall in the state, leaving nearly 2 million customers without power.

But not just yet.

The Senate Economic Growth Committee yesterday held a bill (S-467) that would direct the New Jersey Board of Public Utilities to establish a set of standards for emergency preparation and restoration of service, which every investor-owned utility must follow.

State Sen. Raymond Lesniak (D-Union), the chairman of the panel, said the committee deferred action on the bill at the request of the New Jersey Utilities Association, which noted that the BPU is already is looking into the issue. Lesniak said the committee would not hold up the bill “indefinitely.”

The widespread outages, which at its peak affected 1 million customers of the four electric utilities, triggered angry protests from customers, local officials, and even Gov. Chris Christie. The governor, whose home in Mendham was among hundreds of thousands to lose power during a rare October snowstorm, ordered the agency to assess the utilities’ performance.

In a preliminary report issued last December, the BPU recommended immediate action by the four utilities to improve communications, including the addition of staff during storms to handle expected calls, the use of social media to inform affected customers, and the creation of a full communications plan approved by the agency in advance.

Those recommendations addressed some of the most frequent complaints voiced by customers and local officials during a series of hearings on the Hurricane Irene outages — that they could not reach utility executives to get information about when power would be restored and when they did, it often was misleading or wrong.

By far, most of the criticism was leveled at Jersey Central Power & Light, the state’s second biggest electric utility, with about 1 million customers. Some of its customers were left without power for up to eight days, according to the preliminary report, which largely focused on that utility.

The agency also is in the process of hiring a consultant to help it draw up “best management practices” for utilities to follow when a big storm is expected to lead to widespread outages. Greg Reinert, a spokesman for BPU, said the agency expects to hire the consultant next month.

The legislation held by the Senate committee would require the agency to establish practices that are “intended to serve as a minimum set of best practices that every utility in the state should follow with regard to power outages.” It also carries with it a heavy stick: failure to meet the standards could lead to fines of up to $10,000 per day, according to the bill, which is sponsored by state Sen. Shirley Turner (D-Mercer).

The bill also requires every utility to file an emergency response plan with the board, which would serve as an official plan for each utility in the event of a major power outage.

A call to the New Jersey Utilities Association for their reaction to the bill was not returned.

The legislation has been languishing in the Senate for more than 10 months. If passed, it had intended that each public electric utility would have an emergency response plan for review and approval on or before last May 15. This plan would have addressed the following:

The emergency response plan shall be designed for the reasonably prompt restoration of service in the event of a widespread outage in the service area of the utility due to storms or other causes beyond the control of the utility, and the provisions of the plan shall reflect the standards established pursuant to subsection a. of section 2 of this act. The emergency response plan shall include but not be limited to the following:

(1) The identification of management staff responsible for utility operations during an emergency;

(2) An explanation of the utility’s system for communicating with customers during an emergency that extends beyond normal business hours and business conditions;

(3) A history, for the year ending April 30, of contacts with customers that document a need of essential electricity for medical reasons;

(4) Designation of utility staff to communicate with local officials and relevant regulatory agencies;

(5) Provisions regarding how the utility will assure the safety of its employees and contractors;

(6) Procedures for deploying utility and mutual aid crews to work assignment areas; and

(7) Identification of supplies and equipment reasonably anticipated by the utility to be needed during an emergency and the means of obtaining additional supplies and equipment.

Sounds like this legislation could have come in handy. Maybe the Governor should look into it and ask the Legislature to push it to the front of the agenda.  Why did the Democrats hold the bill at the request of a special interest?

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  1. The problem with this legislation is that it will accomplish NOTHING. No utitilty would ever be able to keep the amount of resources on hand for a storm like Sandy. The legislators do not have a clue to what has to be done to restore power to those who lost it.

    They have no idea of how our electric distribution system works. They only put road blocks in front of the utilities by forcing them to import power from other states. Put up stupid solar panels on the telephone poles which caused many of them to fail. They force the companies to implement “green energy” projects which sucks needed capital to improve and maintain the system.

    Who do they think will pay the fines that the law imposes? The ratepayers will since the cost will be passed through in the form of higher energy costs.

    The bill is nothing but window dressing for these elected morons to show their constituents how tough they are. Instead of stupid laws like this, they should start cutting state spending, cut the size of government and cut taxes!

  2. Rob Eichmann says:

    It is the irony of their rhetoric against the backdrop of their actions.

  3. Rob:

    Agree! You know me and the energy industry, the legislature and governor are screwing the ratepayers over good.