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HomeMy WebLinkAboutResolutions - 2000.10.19 - 26225MISCELLANEOUS RESOLUTION 100276 October 19, 2000 BY: PUBLIC SERVICES COMMITTEE, FRANK MILLARD, CHAIRPERSON IN RE: ELECTRICAL ENERGY EVALUATION TASK FORCE RECOMMENDATIONS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS the Oakland County Board of Commissioners, by MR#99218, created the Electrical Energy Evaluation Task Force; and WHEREAS the Task Force was charged to, amongst other matters, investigate and assist with customer concerns regarding their electrical service and related issues; and WHEREAS the task force has reviewed customer letters, inquiries, and communications to the Task Force and to Detroit Edison to identify issues and focus on satisfactory remedies; and WHEREAS the task force reviewed hundreds of pages of Michigan Public Service Commission transcripts, examined extensive literature on related topics, and gathered information from the many individuals who appeared before the committee; and WHEREAS the Task Force received a comprehensive overview by Detroit Edison representatives of the existing system for generation, transmission, and distribution of electric power in Oakland County, and WHEREAS the Task Force's body of work reflects the many valuable contributions of the late Dr. Karl Greimel, Dean Emeritus of Lawrence Technological University; and WHEREAS the Task Force has issued a report enumerating its recommendations developed to date and, on September 12, 2000, presented it to the Public Services Committee; and WHEREAS the Public Services Committee has accepted the report of the Electrical Energy Evaluation Task Force and is in support of its recommendations; and WHEREAS one of the recommendations of the Task Force is that it be allowed to continue its charge until the end of calendar year 2000 so that additional evaluation can be performed on the progress made by Detroit Edison with respect to recommendations identified by the Task Force and outlined in its report. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners accepts the attached Electrical Energy Task Force Report. BE IT FURTHER RESOLVED that the Task Force is authorized to continue its charge until completion of the Board of Commissioners 1999-2000 session and to report as necessary to the Public Services Committee. BE IT FURTHER RESOLVED that on time-sensitive issues, the Electrical Energy Evaluation Task Force may make recommendations to the Public Services Committee and, with a unanimous vote, the Public Services Committee may comment on behalf of the Board of Commissioners to the Michigan Public Services Commission. Chairperson, I move the adoption of the foregoing resolution. PUBLIC SERVICES COMMITTEE PUBLIC SERVICES COMMITTEE VOTE: Motion carried on a roll call vote with Schmid voting no and McPherson and Moffitt absent. Sue Ann Douglas Chairperson Terry Sever Vice Chairperson OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 NORTH TELEGRAPH ROAD, PONTIAC, MICHIGAN 48341-0470 Telephone: (248) 858-0100 FAX: (248) 858-1572 ELECTRICAL ENERGY EVALUATION TASK FORCE David L. Moffitt David N. Galloway Karen Lewis Vern Kors Ron May Dr. Karl Greimel, Deceased Brenda-Causey Mitchell Charles E Palmer Nancy Din geldey ELECTRICAL ENERGY EVALUATION TASK FORCE RECOMMENDATIONS The Oakland County Board of Commissioners by MR#99218, dated September 9, 1999, created the Electrical Energy Evaluation Task Force. The task force was charged with the responsibility, amongst other matters, to investigate and assist with customer concerns regarding their electrical service and related issues. Following its investigation, the Task Force was directed to report its findings to the Board of Commissioners' Public Services Committee. The Task Force consists of seven (7) members appointed by the Chairperson of the Board of Commissioners, one (1) member representing Oakland County's local governments, and three (3) appointed by the County Executive. The members are as follows: Board Chairperson Appointments: Sue Ann Douglas, Chairperson David L. Moffitt Terry L. Sever David N. Galloway Member Representing Local Governments: Mrs. Karen Lewis County Executive Appointments: Vem Kors Ron May Dr. Karl Greimel (Now Deceased) Three Commissioner alternates were appointed who may represent any absent Commissioner: Brenda Causey-Mitchell, Charles E. Palmer and Nancy Dingeldey. June 21, 2000 1 The Task Force acknowledges the valuable contribution of Dr. Karl Greimel, Dean Emeritus of Lawrence Technological University, who passed away in April, 2000. His choice to further the work of this task force in his remaining days stands as a poignant tribute to his dedication to public service and as a role model to all who aspire to serve their community. The Task Force deliberative process included a diverse variety of information sources and expertise. Customer letters, inquiries and communications to the Task Force, its individual members and to. Detroit Edison were reviewed both for their identification of issues and to focus the inquiries into satisfactory remedies. Hundreds of pages of Michigan Public Service Commission transcripts, testimony by consumers, Detroit Edison representatives, government officials, businesses, homeowner associations, and other interested parties from public hearings in Farmington Hills, Dearborn and Rochester were reviewed by the Task Force. Task Force analysis included review of the details of the Michigan Public Service Commission's settlement with Detroit Edison, reached in response to the MPSC Order for Detroit Edison to respond to the Commission's staff report on Detroit Edison's storm response in the Spring of 2000. The Task Force received a comprehensive overview by Detroit Edison representatives of the currently existing system for generation, transmission and distribution of electric power in Oakland County. Extensive literature on numerous related topics, including federal and state regulatory framework of public utility operations, court decisions, rate structures, public service review bodies, sources of generation of electric power, the economics of generation, transmission and delivery issues presented by electric deregulation, related newspaper articles, amongst others, was distributed to the committee. Many other information requests were responded to by Detroit Edison on a number of issues, including alternative power delivery, construction methods, line clearance procedures, reliability criteria and planning, customer contact processes and capability, and compensation for outage- related damage. Many individuals appeared before the committee to provide information, monitor proceedings, and to respond to specific issues, including MPSC representative, Peter J. Derkos; private citizen and attorney, Johannes A. Buiteweg; Ron May, Vice President, Detroit Edison; Paul D. Whitman, Director of Engineering, Detroit Edison; Tom Roberts, Manager of Engineering, Detroit Edison; Carla Gribbs, Oakland County Regional Manager, Detroit Edison, arnongt others. ISSUE 1 Public concern that Detroit Edison has had difficulty maintaining its system to meet the demands of our growing area and that these problems become apparent during and after a major storm. June 21, 2000 There is a belief that storm damage is not repaired promptly and that there is no follow up after users are back on line to check for minor storm damage that may cause a future problem. The public is concerned that Detroit Edison has not acted in a timely manner to repair known problem areas with frequent non-storm outages. There is general concern regarding upgrading and maintenance of the system and the perception that system development has not met the growing demands of the county. BACKGROUND Detroit Edison's service territory has recently experienced a higher than normal rate of severe storms. Eight severe or catastrophic storms occurred during the past 2 years ('98-'99) compared to only four storms in the five-year period before then ('93-'98). As a result of public hearings and review of Detroit Edison customer satisfaction, Detroit Edison has taken steps to improve its reliability and response to customers. Detroit Edison is addressing line clearance issues and enhancing the company's pocket program for improvements in reliability to specific areas in Oakland County. Detroit Edison recognizes the importance of line clearance as a major factor in delivering reliable electric service. During storms, trees cause more than 66% of all outages: Detroit Edison line clearance crews trim on an average of 800,000 trees per year. The company has increased its budgeted expenditures for line clearance by 46% since 1998 or $46 million in 2000. In addition, the company is aware of pocket areas where repeat outages are a problem. Detroit Edison has recently reached an agreement with the Michigan Public Service Commission (MPSC) to improve the definition of "pocket" areas by including storm-related outages. Pocket areas are defined as a group of more than 10 customers who experience more than 2 storm or non-storm outages (greater than 5 minutes in length) in consecutive years. RECOMMENDATION Detroit Edison should carry out the recent agreement with MPSC to update and improve their system. .*The company should improve methods of communicating with residents, businesses and local governments after a storm by using television, radio, cable TV and local public access stations to inform the community of Detroit Edison's efforts to restore power and provide a realistic time frame for repair. * Detroit Edison should use the above media, community newsletters and direct mail to inform the public of maintenance and improvements to the system and outline the areas where they can expect improvement in their service. * Improve the company's website to provide customers with information on what to do and how to proceed if they lose their power and to also advise residents on how to protect electric motors and sensitive computer equipment on a regular basis. * The company should continue to improve its tree-trimming program. * Seek cooperation from local governments to have Detroit Edison inform their public safety and public works employees to spot potential problems with trees and/or lines while they are on the job and report back to Detroit Edison. *Detroit Edison should be encouraged to identify tree problems that are outside of their utility easements that interfere with power service and to communicate with the customer the means of alleviating the potential easement interference. * Due to the fact that tree trimming is a big effort and is pervasive throughout the County, Detroit Edison should closely monitor the quality of the work. June 21, 2000 3 * The company should explore the possibility of adding a global positioning system to its vehicles to be better able to assign crews to address problems in a timely fashion. * The company should explore the possibility of working with Oakland County to use the county's geographic information system to assist crews in locating problem areas. ISSUE 2 Long waiting times when trying to call Detroit Edison's toll-free number and lack of personal contact and information. BACKGROUND The company has taken steps to improve the response time to customer calls by improving the call process, increasing training as well as hiring additional employees to handle customer questions and requests for information. The number of customer representatives is increasing from 268 to 350 this year. The company's call center (1-800-477-4747) can effectively handle more than 35,000 calls per hour. Prior to installing the automated voice unit, which allows customers to electronically leave information about outages, the company could handle only 14,500 calls per hour. The ability to handle this large number of calls is particularly beneficial to customers during storm situations when thousands of customer are calling at the same time. RECOMMENDATION * The company should monitor, evaluate and report to the Task Force the extent to which its hiring of additional employees successfully reduced customer-calling waiting times and enhanced customer contact. ISSUE 3 Frequent outage complaints. The company has identified pocket areas as a group of more than 10 customers in a specific area or locale, which experience more than two outages per year in successive years. BACKGROUND Detroit Edison recognizes there are small problem areas that have developed due to severe weather conditions (pocket areas). The company has enhanced its pocket improvement program to improve reliability to customers in those areas affected by frequent outages. In addition, to provide a single point of contact for customers with frequent outages concerns, an Ombudsman is available for customers to contact through the company's toll free customer service line 1-800- 477-4747. RECOMMENDATION *Encourage the company to closely monitor its pocket program and demonstrate significant improvement over the next year. It is the hope of the Task Force that the recent agreement between Detroit Edison and the Michigan Public Service Commission that resulted in Order #U12269, dated March 14, 2000, will address these pocket areas. ISSUE 4 Wind and lightning cause most of the problems during a storm by tree contact with lines. Animals coming into contact with lines are a problem in addition to equipment failures. There is also a perception by the public that Detroit Edison's distribution system is vulnerable to storms, June 21, 2000 4 animals, wind, lightening, etc., and that underground lines will solve outage problems. Detroit Edison should strive to improve the exposure of their system to the vulnerability of these elements both in their existing and future systems utilizing innovative technology. Educate the public about the costs involved with underground lines so the public will be aware that underground wires are not the solution to power outages. Additionally, there is an increased frequency by contractors disturbing underground wires. Contractors should be encouraged to contact MISS DIG prior to excavation to determine the location of existing utility lines, because utility line damage from excavation contributes to service interruptions. BACKGROUND Detroit Edison recognizes that line clearance is a key driver of reliability. The line clearance cycles for circuits' range from 3 to 7 years depending on the tree density and construction of each circuit. The tree density in Oakland County is more than 2 times higher than the national average. The company continually monitors the effectiveness of the scheduled cycle and adjusts cycles based on reliability performance of individual circuits. Detroit Edison is taking steps to make the electric distribution system stronger. To further minimize the impact of trees, the company is using alternative construction including the use of improved aerial cable, covered wire and fiberglass cross arms. The company has significantly increased the usage of these techniques and will install more than 41 miles of improved aerial cable in 2000, primarily in areas where "tree tunnels" exist. Governed by the MPSC, Detroit Edison is regulated as an overhead electric utility. All customer rates are based on the cost of installing and maintaining overhead electric equipment. Since 1971 electric services in new subdivisions are required by the MPSC to be installed underground. The cost for this underground construction is borne by the subdivision developer. Detroit Edison will install underground lines in other areas at the request of an individual customer. Costs associated with these installations are the responsibility of the requesting party. These costs can range from 3 to 15 times the cost of overhead installations. There is a misconception that underground lines are a cure-all for reliability problems. While recent data shows underground systems can sometimes improve reliability, underground lines bring with them significant disadvantages including longer outages (due to difficulty in locating an outage and the complexity of the work performed to restore the outage), damage to above ground facilities during outage restoration as well as reduced capacity. RECOMMENDATION *Detroit Edison should strive to meet its 4.5 to 5 year average tree trimming cycle and continue to evaluate the validity of this timing cycle. *Detroit Edison should increase the use of improved aerial cable systems in the county and use other innovative technology to protect lines from tree contact. ISSUE 5 Improve communication between Detroit Edison and local public safety officials to inform them of the nature and extent of an outage and the timeframe for power restoration should be improved. June 21, 2000 5 BACKGROUND Local officials in each community in Oakland County have their own Personal Identification Number (PIN) for immediate access to Detroit Edison customer representatives. Primarily the community's Police/Fire dispatcher uses the PIN number. Any situations reported to the company where police or fire departments are standing by receive a special high priority code for restoration efforts. In addition, during major storms the company communicates with local communities to confirm that all police and fire priorities have been reported to Detroit Edison. RECOMMENDATION *Detroit Edison should look into developing a high priority conference call arrangement with local officials to provide them with current, reliable information so those officials can promptly relay outage information to their individual communities. ISSUE 6 Many local ordinances require the planting of large trees or bushes that may increase in size and ultimately interfere with Detroit Edison power lines. BACKGROUND Detroit Edison meets regularly with area builders and builder associations. The company has an education program aimed at increasing builder's knowledge about which trees and plants are appropriate for planting under electric lines and around utility equipment. Recent discussions with the builders are focusing on getting their support for improved planting requirements on their site plans. Detroit Edison provides tree-planting guidelines to all interested parties upon request. RECOMMENDATION *Encourage communities to consider the impact their planting requirements have on electrical service and to review the types of trees and shrubs that are currently required in or near easements. Specific and enforceable codified statewide standards for all areas of performance addressed in the foregoing recommendations should be developed and enacted. ISSUE 7 Classification of storms and standards for addressing storm-related outages was considered by the task force. There currently exists no specific, codified, state-wide standards for determining the adequacy of Detroit Edison's response to storm outage situations and reliability of electrical service delivery. BACKGROUND The Michigan Public Service Commission is working on establishing statewide standards for storm-related outages. RECOMMENDATION *Since Detroit Edison is currently negotiating this issue, the Task Force is not taking a position at this time. The MPSC has been sending a representative to Task Force meetings and has been told that the proposed standards should be available for comment later this year. In light of this, the task force would like to reserve the right to comment when the proposed standards are released. June 21, 2000 6 Resolution #00276 October 19, 2000 Moved by Millard supported by Douglas the resolution be adopted. Discussion followed. Moved by Palmer supported by Garfield the resolution be amended by deleting the last BE IT FURTHER RESOLVED paragraph. Discussion followed. The Chairperson stated a "YES" vote would eliminate the paragraph and a "NO" vote would not. Vote on Palmer's amendment: AYES: Jensen, McPherson, Melton, Moffitt, Palmer, Schmid, Taub, Amos, Appel, Buckley, Causey-Mitchell, Colasanti. (12) NAYS: Law, McCulloch, Millard, Obrecht, Patterson, Sever, Suarez, Dingeldey, Douglas, Galloway, Garfield, Gregory. (12) A sufficient majority not having voted therefor, the amendment failed. Vote on resolution: AYES: McCulloch, McPherson, Melton, Millard, Moffitt, Obrecht, Patterson, Schmid, Sever, Suarez, Taub, Amos, Appel, Buckley, Causey-Mitchell, Colasanti, Dingeldey, Douglas, Galloway, Garfield, Gregory, Jensen, Law. (23) NAYS: Palmer. (1) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on October 19, 2000 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 191-1 dam/bf October, 2000. T. William Caddell, County Clerk