SENATE ECONOMIC GROWTH COMMITTEE
STATEMENT TO
SENATE COMMITTEE SUBSTITUTE FOR
SENATE, Nos. 719, 889 and 2221
STATE OF NEW JERSEY
DATED: april 5, 2018
The Senate Economic Growth Committee reports favorably a Senate Committee Substitute for Senate Bill Nos. 719, 889 and 2221.
As reported, this substitute, known as “The Reliability, Preparedness, and Storm Response Act of 2018,” requires the Board of Public Utilities (BPU) to develop and enforce performance benchmarks for service reliability, service disruption, service restoration, and communications for electric public utilities that distribute electricity to end users within New Jersey.
The substitute requires every electric public utility to file an emergency response plan with the BPU, which is to reflect the performance benchmarks established by the BPU. This plan is to serve as an official plan of action for each electric public utility in the event of a widespread power outage and is to include, but not be limited to: 1) the identification of management staff responsible for electric public utility operations during an emergency; 2) an explanation of the electric public utility’s system of communication with customers during an emergency that extends beyond normal business hours and business conditions; 3) a history of contacts with customers that report or document to the electric public utility a need of essential electricity for medical reasons; 4) designation of electric public utility staff to communicate with local officials and relevant regulatory agencies; 5) provisions regarding how the electric public utility will assure the safety of its employees and contractors; 6) procedures for deploying electric public utility and mutual aid crews to work assignment areas; 7) the designation and prioritization of areas where a power outage may result in the malfunctioning of septic systems or the loss of drinkable water due to customers’ use of electric well water pumps; 8) strategies to address flooding, wind damage, and vegetation management; and 9) identification of supplies and equipment anticipated to be needed by the electric public utility during an emergency and the means of obtaining additional supplies and equipment.
The substitute requires BPU to establish and enforce separate standards concerning service reliability, service disruption, service restoration, and communications for public utilities that are not electric public utilities, and requires each of those public utilities to annually submit a service reliability plan and an emergency communications plan to the BPU.
The substitute also requires the BPU to undertake a detailed and comprehensive study of public utility service reliability in this State, to prepare a report on the study, and to submit the report to the Governor and the Legislature. This substitute reaffirms the BPU’s authority to open an investigation to review the performance or communications of any public utility during a disruption of service in the public utility’s service area. If the BPU finds that certain harms occurred as a result of a public utility’s failure follow an applicable emergency response plan, an applicable service reliability plan, or an applicable emergency communications plan, the BPU may impose certain civil administrative penalties. The substitute also allows the BPU to fine any public utility for failing to file a required plan in a timely manner.
The substitute increases the maximum for existing civil penalties paid by all public utilities, subject to the jurisdiction of the BPU, for violating any law, rule, regulation, or order by the BPU. Civil penalties are increased from $100 a day to $25,000 a day for each violation, but penalties are not to exceed $2,000,000 for any series of related events. The substitute also extends the applicability of these civil penalties to include failure to meet the performance benchmarks described in an emergency response plan and failure to meet standards described in a service reliability plan or an emergency communications plan. The “Board of Public Utilities Civil Penalty Fund” is established in the BPU, into which all collected penalties will be deposited. The BPU is required to use the monies in the fund to provide grants for certain municipal maintenance activities and to otherwise increase public utilities’ service quality and reliability. Civil penalties will not be recoverable from ratepayers.