News
Mich. PUC Announces Electric Order Involving DTE Electric of Detroit and Consumers Energy of Jackson

* * *
In the matter, on the Commission's own motion, to investigate, audit, and review the methods employed by
At the
PRESENT: Hon.
Hon.
Hon.
ORDER
On
As a result of this brief storm, almost half a million
A significant number of customers also expressed frustration with the communications they received from the utilities, and the Commission observed a marked increase in the number of customers filing informal complaints with the Commission.
Just one year ago, the Commission addressed the responses of the utilities to similar storms, as well as the increase in extreme weather caused by climate change, in the
[r]atepayers have a right to expect the utilities to anticipate extreme weather events, to provide a hardened grid that can withstand extreme weather, and to be prepared to restore power expediently when the grid fails; and the Commission is committed to implementing improvements in these areas. The Commission has conducted numerous investigations into weather-related events and service quality issues since at least 1991, beginning with Case No. U-9916. See also, Case No. U-20169; Case No. U-18346; Case No. U-17542; Case No. U-16462; Case No. U-15605; Case No. U-14603; Case No. U-12769; Case No. U-12270; and Case No. U-10908. Weather-related events are not uncommon in
These efforts have produced some effective measures, particularly in the area of vegetation management. However, the Commission is concerned that not enough progress has been made in the last year to harden the 4.8 kV system or to increase measures that ensure the safety of the public and utility workers who encounter the electrical distribution system. The Commission finds that simply commencing another examination of the response of the utilities to increasingly predictable extreme weather conditions is no longer the reasonable and prudent course of action. As listed in the
Background
The performance of the distribution system in
These performance metrics fall behind
A review of storm investigation orders issued over the last nine years reveals the following.
The
[t]hese are ongoing dockets in which the utilities file annual reports no later than
(1) a list of their 10 worst performing circuits for the prior year in terms of both SAIDI and SAIFI;
(2) for each of the 10 worst performing circuits, the utility shall provide the following information: (a) SAIDI and SAIFI excluding major events for the year, (b) circuit name, number and location, (c) length of circuit (miles), (d) number of customers served, (e) substation name, (f) last circuit trim, (g) list of outages and causes, and (h) corrective action plan to improve performance;
(3) number of customers experiencing multiple interruptions (CEMI) reporting for indices CEMI0 through CEMI10+; and
(4) number of customers experiencing long interruption durations (CELID) reporting for indices CELID60hrs and CELID8hrs (excluding catastrophic events).
The
The
including rules located in Technical Standards for Electric Service, R 460.3101 et seq., Electrical Supply and Communication Lines and Associated Equipment rules, R 460.811 et seq., and
(1) R 460.3801 provides that "Each utility shall exercise reasonable care to reduce the hazards to which its employees, its customers, and the general public may be subjected."
(2) R 460.3501 provides that "The electric plant of the utility shall be constructed, installed, maintained, and operated pursuant to accepted good engineering practice in the electric industry to assure, as far as reasonably possible, continuity of service, uniformity in the quality of service furnished, and the safety of persons and property."
(3) R 460.3504 provides that "Each utility shall adopt a program of inspection of its electric plant to ensure safe and reliable operation. The frequency of the various inspections shall be based on the utility's experience and accepted good practice. Each utility shall keep sufficient records to verify compliance with its inspection program."
(4) R 460.721 provides that "An electric utility shall plan to operate and maintain its distribution system in a manner that will permit it to provide service to its customers without experiencing an unacceptable level of performance as defined by these rules." An unacceptable level of performance is defined in R 460.722- 460.724. R 460.723(1) provides that "It is an unacceptable level of performance for an electric utility to fail to respond to a request for relief of a non-utility employee guarded downed wire at a location in a metropolitan statistical area within 240 minutes after notification at least 90% of the time under all conditions."/8
(5) R 460.3502 and 460.813 require utilities to apply the standards of accepted good practice as adopted in the National Electrical Safety Code, 2017 edition (ANSI-C2- 2017) (NESC). The NESC pertains to the inspection and tests of line and equipment when in service and when out of service. NESC Rule 214.A.5.a addresses the correction of lines that are in service. It provides that "Lines and equipment with recorded conditions or defects that would reasonably be expected to endanger life or property shall be promptly corrected, disconnected, or isolated."
The parties to that proceeding entered into a settlement agreement which the Commission approved in the
1. Provide additional first responder personnel as necessary to meet timeframes set forth in Mich Admin Code, R 460.723(1) and (2);
2. Participate in a statewide initiative coordinated by the Staff and involving all
3. Develop and implement a process to track causes of downed wires;
4. Contract with the
5. Explore potential opportunities to partner with civil infrastructure renewal projects to eliminate rear-lot distribution construction and associated hazards;
6. File an annual report in this docket that includes all of the following:
a. A discussion of the improvements made to
b. A one-time report describing the company's plan to develop and implement a process to track the causes of downed wires;
c. The first two annual reports will describe how many students received training and education on the hazards of electricity under the NEF contract and how many fire departments in the company's service territory received training;
d. The findings and conclusions of the audit process to validate the quality of securing downed wires as described in
e. Estimated target backlog percentage and other progress toward reducing the company's distribution maintenance backlog; and
f. Proof of concept pilot findings to address accessibility and reliability issues related to rear-lot overhead construction as discussed in the
Most recently, the
1. A summary of the utility's ongoing vegetation management and grid hardening efforts, including miles trimmed, dollars spent, and all other metrics and milestones included in the utility's annual reporting requirements.
2. Details on how current efforts outlined above have contributed to reliability performance, including - to the extent data is available - a comparison of like circuits that have been recently trimmed/hardened with those that have not. Information should include changes, if any, to SAIDI, system average interruption frequency index (SAIFI), and customer average interruption duration index (CAIDI) as a result of those efforts.
3. A ranked breakdown of the top 10% worst performing circuits in the year 2021 to date in terms of frequency of outages, and the top 10% worst performing circuits in the year 2021 to date in terms of duration of outages, and provide a map illustrating where those circuits are located within the service territory. Include any planned investments in reliability/resiliency on the circuits and note whether these circuits are primarily back lot-constructed overhead, front lot-constructed overhead, or underground circuits.
4. Using data from the beginning of 2020 to the present, a map of the top ten zip codes with both the highest and lowest SAIFI, and the top ten zip codes where most future tree trimming and other reliability/resiliency improvement efforts are planned.
5. A summary of efforts contained in currently filed distribution plans to address outages and system reliability. For
6. Plans and/or actions taken following the
7. A summary of restoration efforts during the
The Commission would also like to understand the costs and benefits associated with moving established overhead electrical lines underground, and additionally directs investor-owned utilities to include the following:
1. A breakdown of the total cost to move a typical overhead back lot-constructed line and overhead front lot-constructed line underground, including a high, low, and average cost estimate depending on the varying circumstances encountered.
2. The difference in cost of maintenance of an overhead back lot, overhead front lot, and underground electric line, on an average annual basis.
3. The average measured reliability of an underground line compared to a comparable back lot and front lot overhead electrical line.
4. A comparison of the average rate and severity of safety incidents that occur both to the public as well as to utility workers associated with underground lines, overhead front lot lines, and overhead back lot lines.
will include annual reliability performance as reported in Case Nos. U-12270, U16065, and U-16066; reliability metrics that have been proposed in utility distribution plans in Case No. U-20147; and other data or metrics currently reported to public utilities commissions in states that are collecting and/or incentivizing distribution reliability performance, including the
Discussion
With this order, the Commission directs
1. Explain in detail how wire down response audits are performed. It is important to verify that resources are responding to downed wires in a consistent manner that complies with regulatory requirements and company procedures. The Commission seeks to understand what processes are in place to verify compliance with internal and external wire down response procedures to ensure public safety.
2. Explain in detail the technologies used and how they impact improved wire down detection for each system voltage the company utilizes (i.e., 4.8 kV, 4.8 kV wye, 13.2 kV, etc.). The Commission seeks to better understand the wire down detection system capabilities, particularly how the advanced distribution management system (ADMS) module, ground detection program, and AMI contribute to this process, and what improvements could be made that will enhance the safety of the distribution system for the public. The company shall present the information so that it can be readily compared across the system voltages to identify the similarities and differences in wire down detection capabilities across the different system voltages used within its territory.
3. Explain in detail the telecommunications networks used to communicate system status for each system voltage the company utilizes (i.e., 4.8 kV, 4.8 kV wye, 13.2 kV, etc.). This information shall discuss and provide data regarding the telecommunications system type, how it is installed (overhead, underground, etc.), performance during storm events, number of telecommunication outages per year, and what system information is dependent on the telecommunications system.
4. Explain in detail how the technologies being used to monitor and control the grid, including but not limited to ADMS, AMI, and other sensors, perform during an outage, what situations prevent the technology from transmitting data to the utility or performing normally, what information is lost should the technologies not perform, and how operations continue despite missing information and the subsequent impacts on storm recovery.
5. Explain in detail how critical facilities are identified and prioritized for restoration. It is important to improve safety and decrease outage times for schools and other critical facilities. The Commission seeks to better understand how these facilities are identified and responded to in times of crisis, in order to begin to examine potential improvements such as the installation of microgrids or other actions that could supply redundancy to these facilities.
6. Explain in detail the company's procedure, including standby criteria, and the timeline that is employed from the time that a downed wire is identified through deenergization of the downed wire and repair of the downed wire, including the minimum and maximum time for all stages as experienced by the company in the last five years.
7. Explain in detail efforts to educate, outreach to, and train the public and first responders on the danger of downed wires and how to safely respond to downed wires, and provide information on the improvements to education, outreach, and communication efforts as a result of the storm events and downed wire incidents in 2021 and 2022.
The report shall be filed in this docket no later than
MCL 460.555 provides as follows:
The commission shall have power to inspect and examine all such electrical apparatus already installed in any public highways, streets or places and all such apparatus hereafter installed, and to investigate from time to time the method employed by persons, firms or corporations transmitting and supplying electricity, and shall have power to order such improvements in such method as shall be necessary to secure good service and the safety of the public and of those employed in the business of transmitting and distributing such electricity, and of any persons liable to be injured by the erection, maintenance and use of such apparatus.
And MCL 460.556 provides as follows:
The commission shall have power in its discretion to order electric current for distribution to be delivered at a suitable primary voltage, to any city, village or township through which a transmission line or lines may pass; to order service to be rendered by any such electric utility . . . and to see that their property is maintained and operated for the security and accommodation of the public and in compliance with the provisions of law. It . . . shall also have power to require from all electric utilities in the state such information as the commission may need at any time in connection with the performance of the duties imposed upon it by this act. Said commission shall also have power, in connection with any rate or service hearing or investigation, to make such audit and analysis of the books and records of the utility, and such inventory and appraisal of its property as may be necessary in connection with the duties imposed upon the commission by this act; and in any such case the commission shall keep a record of all expenses incurred by it in connection with its investigation of the affairs and property of the said utility and during the progress or at the conclusion of its work, shall state the amount thereof in writing to the said utility and said utility shall pay into the treasury of the state the amount of such expense at such times and in such manner as the commission may by order require. Said moneys when so paid into the state treasury shall go to the credit of the
The Commission recognizes that significant work is ongoing in the distribution planning process, and further recognizes that changes cannot occur overnight. However, given the ongoing challenges relating to both safety and reliability--and the inescapable conclusion that a series of directives contained in orders following significant storms over the past decade and more has not led to a significant improvement in outage prevention and restoration when compared to peer utilities--the Commission finds that an independent review of the adequacy of the electric distribution system operated by
Pursuant to the described statutory powers and the duties imposed upon the Commission by the Legislature, the Commission directs the Staff to commence the process of hiring a consultant to perform an independent third-party audit and review of the distribution systems, including all equipment and operations, of
The independent third-party audit shall have two parts as follows.
Part 1 will consist of a physical audit of the existing installed infrastructure to determine whether the existing installed infrastructure matches the company's records. This part will involve physical measurements of installed distribution infrastructure to ensure compliance with the utility's engineering standards. Measurements will include a statistically significant sample of infrastructure at a variety of locations and considering a variety of types of distribution infrastructure to get a statistically relevant understanding of the state of the utility's overall distribution system. This part will include a comparison of the condition of the company's distribution system to that of other utilities in similar climates.
Part 2 will consist of an audit of each utility's programs and processes to determine whether the existing programs and processes for emergency preparedness, storm restoration, distribution system maintenance, and investment are sufficient and equitable, and whether they properly plan for climate change and changing load profiles. This part will include a review of each company's engineering standards and inspection and maintenance programs to ensure they meet the needs of the distribution system, now and into the future. It will include an audit of the accounting process for the distribution system to ensure costs are being accurately managed and recorded. It will also include a review of how the utility manages the operations of the distribution system, including how maintenance prioritization is determined, how personnel are managed during outage recovery, and company management and internal policies and procedures regarding outages, distribution management, safety, and planning.
THEREFORE, IT IS ORDERED that:
A.
B. The Commission shall conduct a third-party review of the electric distribution systems of
The Commission reserves jurisdiction and may issue further orders as necessary.
Any party desiring to appeal this order must do so in the appropriate court within 30 days after issuance and notice of this order, pursuant to MCL 462.26. To comply with the Michigan Rules of Court's requirement to notify the Commission of an appeal, appellants shall send required notices to both the Commission's Executive Secretary and to the Commission's Legal Counsel. Electronic notifications should be sent to the Executive Secretary at mpscedockets@michigan.gov and to the
By its action of
* * *
Footnotes:
1/ The Commission also takes note that, in a non-storm-related incident occurring on
2/ The Commission acknowledges the diligence and perseverance of utility employees, including line workers represented by the
3/
4/ CUB Utility Performance Report, 2021 Edition (CUB Report), available at: https://drive.google.com/file/d/1Z0C0y6OloXBXlgeMGoBE4zxtdZHqP5QH/view (accessed
5/ See, https://www.climatecentral.org/climate-matters/surging-weather-related-power-outages (accessed
6/
7/ Ibid.
8/ The Commission notes that the changes to the
* * *
Original text here: https://mi-psc.force.com/sfc/servlet.shepherd/version/download/0688y000004R91BAAS
Discussions
No discussions yet. Start a discussion below.
Get Published - Build a Following
The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.
Sign in to Participate