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HomeMy WebLinkAboutAgenda Report - November 16, 2022 C-17CITY OF zt� .. . w CALIFORNIA AGENDA ITEM Coo 17 COUNCIL COMMUNICATION AGENDA TITLE: Adopt a resolution accepting the independent third party audit of the Wildfire Mitigation Plan performed by Guidehouse, Inc. of Folsom. MEETING DATE: November 16, 2022 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Adopt a resolution accepting the independent third party audit of the Wildfire Mitigation Plan (WMP) performed by Guidehouse, Inc. of Folsom. BACKGROUND INFORMATION: Senate Bill 901, enacted in 2018, amended the California Public Utilities Code requiring electric utilities to prepare and submit an annual WMP that meets various regulatory requirements. SB 901 also requires electric utilities to contract with a qualified independent evaluator with experience in assessing the safe operation of electrical infrastructure to review and assess the comprehensiveness of its WMP on a three-year cycle. Upon Council approval to contract with Navigant (now Guidehouse, Inc.), the initial audit was completed in 2019. To meet the regulatory requirements, staff recently contracted with Guidehouse, Inc. to perform the second three-year audit of the WMP. The audit finds that the WMP is comprehensive in accordance with regulatory requirements. Staff hereby submits the independent audit evaluation report for council consideration. FISCAL IMPACT: Not -to -exceed $10,000. FUNDING AVAILABLE: Included in FY 2022/23 Budget Account No. 50061500.72450 Jeff Berkheimer (Nov 2, 2022 12:53 PDT) Jeff Berkheimer Electric Utility Director APPROVED: Stephen Schwabauer, City Manager Guidehouse Outwit Complexity Wildfire Mitigation Plan Independent Evaluation Prepared for: Lodi Electric Utility Submitted by: Guidehouse Inc. 4001 South 700 East Salt Lake City, UT 84107 November 1, 2022 guidehouse.com This deliverable was prepared by Guidehouse Inc. for the sole use and benefit of, and pursuant to a client relationship exclusively with Lodi Electric Utility ("Client"). The work presented in this deliverable represents Guidehouse's professional judgement based on the information available at the time this report was prepared. Guidehouse is not responsible for a third party's use of, or reliance upon, the deliverable, nor any decisions based on the report. Readers of the report are advised that they assume all liabilities incurred by them, or third parties, as a result of their reliance on the report, or the data, information, findings and opinions contained in the report. / Guidehouse Wildfire Mitigation Plan Independent Evaluation Outwit Complexity Table of Contents ExecutiveSummary......................................................................................................1 1. Background............................................................................................................... 2 1.1 Wildfire Mitigation Plans.............................................................................................. 2 1.1.1 SB 901..............................................................................................................2 1.1.2 AB 1054 Statutory Modifications.......................................................................2 1.2 Lodi Electric Utility Plan Preparation............................................................................ 2 1.2.1 Independent Evaluation Services......................................................................3 2. Evaluation Scope and Approach.............................................................................4 2.1 Evaluation Parameters................................................................................................ 4 2.1.1 WMP Requirements..........................................................................................4 2.1.2 Industry Knowledge and Regulatory Proceedings.............................................5 2.2 Evaluation Approach................................................................................................... 6 2.2.1 Statutory Compliance........................................................................................6 2.2.2 Industry Wildfire Mitigation Practices Comparison............................................6 2.2.3 Value Determination of Plan Metrics.................................................................6 K1!I4111111TAJiI A4 - Tr - 3.1 Responsibilities of Persons Responsible for Executing the Plan .................................. 7 3.2 Objectives of the Plan................................................................................................. 7 3.3 Wildfire Prevention Strategies..................................................................................... 7 3.4 Metrics........................................................................................................................ 8 3.5 Disabling Reclosers..................................................................................................... 8 3.6 De -Energizing Protocols.............................................................................................. 9 3.7 Event Communication................................................................................................. 9 3.8 Vegetation Management............................................................................................. 9 3.9 Infrastructure Inspections.......................................................................................... 10 3.10 Risk Assessment and Drivers.................................................................................. 10 3.11 Asset Overview and Service Territory ...................................................................... 10 3.12 Restoration.............................................................................................................. 10 3.13 Monitoring and Auditing the Plan............................................................................. 11 3.14 Annual Review........................................................................................................ 11 4. Results and Discussion..........................................................................................12 Appendix A. Statutory Compliance Matrix.............................................................. A-1 List of Tables Table1 — POU Requirements................................................................................................... 4 Confidential information for the sole benefit and use of Lodi Electric Utility. Page i / Guidehouse Outwit Complexity Wildfire Mitigation Plan Independent Evaluation Table 2 — LEU Proposed Metrics.............................................................................................. 8 List of Figures Figure 1 — Mitigation Strategy Overview.................................................................................... 6 Confidential information for the sole benefit and use of Lodi Electric Utility. Page ii / Guidehouse Wildfire Mitigation Plan Independent Evaluation Outwit Complexity Executive Summary Lodi Electric Utility (LEU) contracted with Guidehouse Inc. (Guidehouse) to engage in an independent evaluation of its Wildfire Mitigation Plan (Plan or WMP). This independent evaluation report (Report) describes the technical review and evaluation provided by Guidehouse. Guidehouse performed this evaluation in October 2022 and finalized the Report on November 1, 2022. Guidehouse's project team reviewed detailed information related to the Plan and assessed LEU's procedures related to the Plan. The Plan was prepared as a response to Senate Bill (SB) 901. SB 901 and included a number of provisions and directives, among which includes the requirement for electric utilities to prepare and adopt WMPs and revise and update the Plan annually thereafter. These requirements are codified in the California Public Utilities Code (PUC) Section 8387 for publicly owned utilities (POUs). Guidehouse evaluated the Plan based on the statutory requirements of PUC Section 8387 as it relates to POUs. This PUC Section was amended in 2019 with the signing of California's Assembly Bill (AB) 1054 into law. The POUs are now subject to the guidance provided by the California Wildfire Safety Advisory Board and mandatory cyclical reviews, including a comprehensive update every three years. The required elements for a WMP have not been modified by this new legislation. This Report meets LEU's requirements under PUC Section 8387(c), which mandate an independent evaluation of LEU's WMP. The Report was developed to satisfy the statutory requirement for public review. This Report underlies the required evaluation by the Board of Directors at a public meeting, scheduled for November 16, 2022. The Report includes the following: • Background of the legislative history requiring WMPs and their independent evaluations • Approach and methodology evaluating the WMP's comprehensiveness • LEU's WMP elements and their compliance with SB 901 and PUC Section 8387 WMP elements and directives • An evaluation of the WMP's presented metrics to assess the effectiveness of the overall WMP • Determinations and results Based on relevant experience in grid hardening and resiliency, natural disaster response, prior experience in WMP development, and active tracking of wildfire legislative and regulatory proceedings Guidehouse has concluded that LEU's WMP is comprehensive in accordance with PUC section 8387. Confidential information for the sole benefit and use of Lodi Electric Utility. Page 1 / Guidehouse Wildfire Mitigation Plan Independent Evaluation Outwit Complexity 1. Background In recent years, California has seen an increase in catastrophic wildfires, some of which were caused by utility equipment. The unique geographic profile of California and the impacts of climate change are creating elongated fire seasons with dry conditions, high winds, and elevated heat. The state is also burdened with historically levels of vegetation fuel due to past fire suppression efforts. This increasingly abundant dry vegetation is the leading driver of wildfires. The increase in utility -involved wildfire incidents and the significant financial and livelihood impacts associated with them led to more formalized efforts to ensure safe operations of electric utility equipment and greater investment in wildfire mitigation efforts.' Specifically, the state adopted legislation and regulations to strengthen oversight of utility wildfire prevention and mitigation. 1.1 Wildfire Mitigation Plans 1.1.1 SB 901 In an effort to minimize future devastating occurrences through risk -driven wildfire prevention, electric utilities, including publicly owned utilities (POUs), were mandated, by Senate Bill (SB) 901 to prepare and annually adopt a WMP. The WMPs must Include several mitigation and response elements in each utility's strategies, protocols, and programs. The requirements for POUs are codified in Public Utilities Code (PUC) Section 8387. Details relating to POU requirements are discussed in Section 2 of this WMP evaluation report (Report). 1.1.2 AB 1054 Statutory Modifications In 2019, Assembly Bill (AB) 1054 was signed into law, modifying the requirements for POU WMPs. AB 1054 aims to mitigate the intensity of wildfire impacts through several initiatives separate from those actions required of electric utilities. AB 1054 includes directives to establish the Wildfire Safety Division at the California Public Utilities Commission and the state's Wildfire Safety Advisory Board (WSAB). AB 1054 requires POUs submit their WMPs by July 1 of each year for review by and recommendations from WSAB and requires POUs to comprehensively update their WMPs at least every three years. 1.2 Lodi Electric Utility Plan Preparation Lodi Electric Utility (LEU) is a department within the City of Lodi. Its service territory is contained entirely within the City limits. LEU's primary goal is to provide safe, reliable, and cost-effective electricity while also anticipating and meeting customer needs. As a POU, LEU has no fiduciary obligations to shareholders and its actions and decisions are governed by City Manager and the City Council and ultimately to the citizens of Lodi. ' California Public Utilities Commission, 2019. "Fire Incident Data Reports for Investor -Owned Utilities," https://www.cpuc.ca.gov/fireincidentsdata/ 2 Oversight and responsibility for the Wildfire Safety Division was transferred from the California Public Utilities Commission to the California Natural Resources Agency on July 1, 2021 and is now known as the Office of Energy Infrastructure Safety. Confidential information for the sole benefit and use of Lodi Electric Utility. Page 2 / Guidehouse Wildfire Mitigation Plan Independent Evaluation Outwit Complexity LEU prepared its first WMP pursuant to SB 901 directives in 2019. This initial WMP was independently evaluated by Guidehouse, and the report was presented to the City Council and made publicly available on LEU's website along with LEU's WMP. The WMP addresses each of the required elements presented by PUC Section 8387 and reduces the risk of contributing to utility -involved wildfire events through WMP execution and metric tracking. 1.2.1 Independent Evaluation Services PUC Section 8387(c) directs POUs to procure a independent evaluation (IE) of the comprehensiveness of the WMP. The provisions of PUC Section 8387 state that the "qualified independent evaluator" shall be experienced in "assessing the safe operation of electrical infrastructure" and will perform an assessment to determine the comprehensiveness of the WMP.3 LEU sought out IE services to assess the comprehensiveness of its WMP pursuant to PUC Section 8387(c). Accordingly, LEU issued a request for proposals from IEs and selected Guidehouse to perform this assessment based on Guidehouse's prior experience with assessing the safe operation of electrical infrastructure, including grid -hardening and WMPs, with an emphasis on electrical equipment, public, and personnel safety. Guidehouse has conducted over 10 independent evaluations of POUs across California and is an Energy Safety - designated qualified independent evaluator for the last two years, and as such has conducted six independent evaluations of three CA IOUs. This Report presents the results of Guidehouse's WMP IE. 3 It is recognized that this requirement does not yet include a clear definition of comprehensiveness. Confidential information for the sole benefit and use of Lodi Electric Utility. Page 3 / Guidehouse Outwit Complexity Wildfire Mitigation Plan Independent Evaluation 2. Evaluation Scope and Approach Guidehouse completed this evaluation based on industry standard practices, our experience developing and reviewing WMPs and other grid hardening activities, our active tracking of wildfire legislative and regulatory proceedings and, most importantly, a comparison of the specific criteria in PUC Section 8387(b)(2) to the specific wildfire -related plans outlined in LEU's WMP. 2.1 Evaluation Parameters 2.1.1 WMP Requirements Table 1 lists the requirements for the statutory requirements for POUs to address in their WMPs. Table 1 — POU Requirements (a) Each local publicly owned electric utility and electrical cooperative shall construct, maintain, and operate its electrical lines and equipment in a manner that will minimize the risk of wildfire posed by those electrical lines and equipment. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (b) (1) The local publicly owned electric utility or electrical cooperative shall, before January 1, 2020, prepare a wildfire mitigation plan. After January 1, 2020, a local publicly owned electric utility or electrical cooperative shall prepare a wildfire mitigation plan annually and shall submit the plan to the California Wildfire Safety Advisory Board on or before July 1 of that calendar year. Each local publicly owned electric utility and electrical cooperative shall update its plan annually and submit the update to the California Wildfire Safety Advisory Board by July 1 of each year. At least once every three years, the submission shall be a comprehensive revision of the plan. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (2) The wildfire mitigation plan shall consider as necessary, at minimum, all of the following: (A) An accounting of the responsibilities of persons responsible for executing the plan. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (B) The objectives of the wildfire mitigation plan. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (C) A description of the preventive strategies and programs to be adopted by the local publicly owned electric utility or electrical cooperative to minimize the risk of its electrical lines and equipment causing catastrophic wildfires, including consideration of dynamic climate change risks. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (D) A description of the metrics the local publicly owned electric utility or electrical cooperative plans to use to I evaluate the wildfire mitigation plan's performance and the assumptions that underlie the use of those metrics. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (E) A discussion of how the application of previously identified metrics to previous wildfire mitigation plan performances has informed the wildfire mitigation plan. 4i (F) Protocols for disabling reclosers and deenergizing portions of the electrical distribution system that consider the associated impacts on public safety, as well as protocols related to mitigating the public safety impacts of those protocols, including impacts on critical first responders and on health and communication infrastructure. ----------------------------------------------------------------------------------------------------------------------------------------------- (G) Appropriate and feasible procedures for notifying a customer who may be impacted by the deenergizing of electrical lines. The procedures shall consider the need to notify, as a priority, critical first responders, health care facilities, and operators of telecommunications infrastructure. 4i (H) Plans for vegetation management. Confidential information for the sole benefit and use of Lodi Electric Utility. Page 4 / Guidehouse Wildfire Mitigation Plan Independent Evaluation Outwit Complexity Plans for inspections of the local publicly owned electric utility's or electrical cooperative's electrical infrastructure. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- A list that identifies, describes, and prioritizes all wildfire risks, and drivers for those risks, throughout the local publicly owned electric utility's or electrical cooperative's service territory. The list shall include, but not be limited to, both of the following: --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Risks and risk drivers associated with design, construction, operation, and maintenance of the local publicly owned electric utility's or electrical cooperative's equipment and facilities. F a Particular risks and risk drivers associated with topographic and climatological risk factors throughout the different parts of the local publicly owned electric utility's or electrical cooperative's service territory. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Identification of any geographic area in the local publicly owned electric utility's or electrical cooperative's service territory that is a higher wildfire threat than is identified in a commission fire threat map, and identification of where the commission should expand a high fire -threat district based on new information or changes to the environment. A methodology for identifying and presenting enterprise wide safety risk and wildfire -related risk. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- A statement of how the local publicly owned electric utility or electrical cooperative will restore service after a wildfire. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- A description of the processes and procedures the local publicly owned electric utility or electrical cooperative shall use to do all of the following: ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (i) Monitor and audit the implementation of the wildfire mitigation plan. (ii) Identify any deficiencies in the wildfire mitigation plan or its implementation, and correct those deficiencies. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (iii) Monitor and audit the effectiveness of electrical line and equipment inspections, including inspections performed by contractors, that are carried out under the plan, other applicable statutes, or commission rules. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (3) The local publicly owned electric utility or electrical cooperative shall, on or before January 1, 2020, and not less than annually thereafter, present its wildfire mitigation plan in an appropriately noticed public meeting. The local publicly owned electric utility or electrical cooperative shall accept comments on its wildfire mitigation plan from the public, other local and state agencies, and interested parties, and shall verify that the wildfire mitigation plan complies with all applicable rules, regulations, and standards, as appropriate. (c) The local publicly owned electric utility or electrical cooperative shall contract with a qualified independent evaluator with experience in assessing the safe operation of electrical infrastructure to review and assess the comprehensiveness of its wildfire mitigation plan. The independent evaluator shall issue a report that shall be made available on the internet website of the local publicly owned electric utility or electrical cooperative, and shall present the report at a public meeting of the local publicly owned electric utility's or electrical cooperative's governing board. 2.1.2 Industry Knowledge and Regulatory Proceedings The state's priority towards abating future catastrophic wildfire events is demonstrated through aggressive measures, directing utilities to enhance their protocols for fire prevention, public communications, and response. That collection of information is presented in a comprehensive WMP. Guidehouse tracks state proceedings and routinely advises, assesses, and guides utility wildfire mitigation efforts. Accordingly, we reviewed LEU's WMP against the provisions in PUC § 8387 and relative to its risk profile which includes, but is not limited to, its topography, climate, assets, and structure. Confidential information for the sole benefit and use of Lodi Electric Utility. Page 5 / Guidehouse Wildfire Mitigation Plan Independent Evaluation Outwit Complexity 2.2 Evaluation Approach To perform an assessment of the comprehensiveness of the Guidehouse assessed the comprehensiveness of the plan against the applicable regulations. 2.2.1 Statutory Compliance Guidehouse sought to determine compliance with the provisional requirements laid out in SB901 as codified in PUC Section 8387. The WMP's alignment with the statutory requirement is presented in Appendix A. LEU's mitigation measures are not required to exceed the statutory requirements. 2.2.2 Industry Wildfire Mitigation Practices Comparison Guidehouse's understanding of an effective WMP draws on comparisons from existing WMPs and industry practices, WSAB guidance, risk profile, and mitigation strategy. This mitigation strategy analysis is visually summarized in Figure 1. Design & Construction: System, equipment, and structure design and technical upgrades designed to improve system hardening to prevent contact between infrastructure and fuel sources, such as vegetation. Inspection & Maintenance: Assessment and diagnostic activities as well as associated corrective actions aimed to ensure all infrastructure is in working condition and vegetation adheres to defined minimum distance specifications. Operational Practices: Proactive, day-to-day actions taken to mitigate wildfire risks aimed to ensure the POU is prepared in high-risk situations, such as dry, windy environmental conditions. Methods to improve system visualization and awareness of environmental conditions aimed to provide tools to improve the other components of the plan. Figure 1 — Mitigation Strategy Overview Response & Recovery: Procedures to react to de- energization, wildfire, or other related emergency conditions, aimed to formalize protocols for these situations, so the POU can provide an adequate response and recovery. Expertise in these critical elements facilitated Guidehouse's review of the comprehensiveness of LEU's WMP. While not all of these strategies are present in or applicable to LEU's WMP, due to LEU's size, location, and operational characteristics. 2.2.3 Value Determination of Plan Metrics Metrics for tracking the WMP's progress intend to allow the utility to refresh information as trends become clearer. Confidential information for the sole benefit and use of Lodi Electric Utility. Page 6 / Guidehouse Wildfire Mitigation Plan Independent Evaluation Outwit Complexity 3. LEU WMP Elements Guidehouse reviewed the WMP elements and determined whether the activities achieve the objective of WMP "comprehensiveness" of PUC Section8387. This determination incorporates individual elements as well as underlying data sources that further describe data collection methodologies and implementation procedures to ensure measures are carried out and also tracked. Guidehouse determined LEU's WMP meets the requirement of comprehensiveness PUC Section 8387. In this section, we review the WMP's elements and their purpose relative to the development and successful execution of the WMP. A table comparing each subsection of PUC Section 8387 to the significant sections of the WMP can be found in Appendix A. 3.1 Responsibilities of Persons Responsible for Executing the Plano Section IIIA, and to a lesser extent Section 111.13, identify the organization of LEU within the City of Lodi and identifies those responsible for the execution of the activities detailed in the plan. Specifically, the WMP assigns duties to the Electric Utility Director, Engineering & Operations Manager, and Electric Superintendent and clarifies how LEU interacts with other Lodi departments. 3.2 Objectives of the Plans LEU has clearly stated objectives in Section II of the WMP. LEU's primary goal is to "reduce the probability that LEU's electric supply system could be the origin or contributing source for the ignition of a wildfire; and in doing the aforementioned, comply with CA PUC Section 8387 and CA SB -901 2018 and its underlying goal to operate the electric -system safely when in high wildfire risk conditions." The secondary objective is to improve the resiliency of LEU's electric system 3.3 Wildfire Prevention Strategiess Section V of LEU's WMP describes in detail LEU's preventative strategies and programs, which includes understanding risks through efforts to participate in and understand the designations of the CPUC Fire Threat Map, weather monitoring design and construction standards, vegetation management, system maintenance and inspections, reclosing policy, and de-energization. The following are discussed in more detail in the sections below: Section 3.5 Section 3.6 Section 3.8 Section 3.9 4 PUC Section 8387(2)(A) 5 PUC Section 8387(2)(B) 6 PUC Section 8387(2)(C) Disabling Reclosers De -Energizing Protocols Vegetation Management Infrastructure Inspection Confidential information for the sole benefit and use of Lodi Electric Utility. Page 7 / Guidehouse Wildfire Mitigation Plan Independent Evaluation Outwit Complexity 3.4 Metrics' This section provides an assessment of the proposed metrics in Section VIII.A of LEU's WMP. The statutory requirements for the inclusion of metrics are found in PUC Section 8387(b)(2)(D) and (E) where utilities are directed to present these metrics and address how prior metrics impact the proposed metrics for the next version of the WMP. The four proposed metrics in LEU's 2022 WMP are shown in Table 2 — LEU Proposed Metrics . These metrics represent LEU's approach to track fire ignitions related to its electrical infrastructure and to track the progress of its vegetation management and inspection programs. The underlying assumptions suggest that monitoring the frequency and cause of ignition events as well as the status of its programs will shape the direction of mitigation strategies as this information is collected and analyzed. These proposed metrics meet the regulatory objective and will assist in providing insight on the effectiveness of the WMP in future years. Table 2 — LEU Proposed Metrics Fire Ignitions Count of Events No material increase (1) LEU facility was associated with origin of the fire (2) Fire was self -propagating and of a material other than electrical and/or communication facilities (3) Resulting fire traveled greater than one linear meter from ignition point (4) LEU has knowledge fire occurred 3.5 Disabling Reclosers$ Section V.F of the WMP states that LEU does not have any reclosers deployed downstream of its substations, and accordingly, does not have a protocol for disabling reclosers at its substations. This decision is explained in detail and is based on the low-risk nature of LEU's power system and the negative impacts to public safety, critical first responders, and on health and communication infrastructure expected under extended outages. PUC Section 8387(2)(D) and PUC Section 8387(2)(E) 8 PUC Section 8387(2)(F) Confidential information for the sole benefit and use of Lodi Electric Utility. Page 8 Any instance where an electric transmission Wire Down Events Count of Events No material increase or primary distribution conductor falls to the ground or on a foreign object Inspection -Cycle % Grid 100% complete per GO LEU service territory is divided into 66 Completion Completion 165 timelines smaller grids and each grid is inspected per the GO 165 timeline Vegetationo LEU service territory is divided into 66 Management o �o Grid 50-66% complete every smaller grids and the vegetation near LEU Cycle Completion Completion 12 months assets is trimmed, removed, or managed in each grid every 18-24 months 3.5 Disabling Reclosers$ Section V.F of the WMP states that LEU does not have any reclosers deployed downstream of its substations, and accordingly, does not have a protocol for disabling reclosers at its substations. This decision is explained in detail and is based on the low-risk nature of LEU's power system and the negative impacts to public safety, critical first responders, and on health and communication infrastructure expected under extended outages. PUC Section 8387(2)(D) and PUC Section 8387(2)(E) 8 PUC Section 8387(2)(F) Confidential information for the sole benefit and use of Lodi Electric Utility. Page 8 / Guidehouse Outwit Complexity 3.6 De -Energizing Protocols9 Wildfire Mitigation Plan Independent Evaluation Section V.G of the WMP identifies that while LEU has the authority to de -energize portions of its electric system for fire -threat conditions, it is not proposing to implement de-energization (commonly known as Public Safety Power Shutoff or PSPS) protocols for wildfire prevention As with the decision not to disable LEU's reclosers, because LEU operates entirely within a Tier 1, low risk area LEU considered the harm from preemptory and longer duration power outages exceeds the low likelihood LEU's system may ignite a wildfire. LEU discusses several reasons related to public safety, critical first responders, and on health and communication infrastructure for not developing such a protocol. This section also addresses that if power fed into LEU's system is cut by a public safety power shutoff (PSPS), LEU would enact its communication and notification capabilities to alert the community of the PSPS. 3.7 Event Communication10 LEU sets forth several communication channels in Section III (notably parts D, E, and F) of the WMP for use in an emergency situation to notify the public. These include the County of San Joaquin's emergency alert system and cell -phone triangulation system, AM broadcasting, the company website, and Lodi Unified School District's public -messaging capabilities. LEU also implemented an Outage Management System and an Interactive Voice Response system to assist with customer notification. In addition, the utility complies with the California Office of Emergency Services' Standardized Emergency Management System (SEMS) Regulations and is a participant in the Western Energy Institute's Western Region Mutual Assistance Agreement. The WMP states that these communication channels and resources are available to LEU during an emergency event and would be used in the event of de-energization of an upstream feed to LEU (operating beyond its control). 3.8 Vegetation Management" In Section V.D, LEU describes its vegetation management plan that implements standards based on, and exceeding, the minimum requirements in CPUC GO 95. LEU's standard practice for trimming is to cut at least a five-foot clearance around secondary voltage overhead infrastructure, a ten -foot clearance around all primary voltage overhead infrastructure, and a 15 - foot clearance around all sub -transmission and transmission overhead infrastructure. The vegetation within LEU's service territory is reflective of those typically found in an urban or suburban setting. All trees in proximity to LEU electric infrastructure are visited at least every 18-24 months. Dense -vegetation areas are prioritized, and fast-growing or invasive species are removed, subject to the permission of the tree's owner. LEU uses contractors for this service but also has two dedicated tree crews with the ability to quickly scale up if needed. 9 PUC Section 8387(2)(F) 10 PUC Section 8387(2)(G) " PUC Section 8387(2)(H) Confidential information for the sole benefit and use of Lodi Electric Utility. Page 9 / Guidehouse Outwit Complexity 3.9 Infrastructure Inspections12 Wildfire Mitigation Plan Independent Evaluation Section V.E of the WMP describes LEU's infrastructure inspection program. LEU seeks to meet or exceed the inspection requirements in CPUC GO 95 Rule 18 and GO 165. LEU staff also leverage their knowledge of the system and geographical conditions to determine when certain areas require more frequent inspections. 3.10 Risk Assessment and Drivers 13 Section IV of LEU's WMP elaborates the risk analysis and risk drivers that guide the development of LEU's wildfire prevention practices. LEU identifies vegetation mortality, extended drought, and high winds as the primary risk drivers in this section. It also identifies indirect risks associated with dynamic climate change risk such as resource limitations if they are redirected to wildfire -related efforts outside of LEU service territory. This section also sets forth LEU's methodology for identifying enterprise -wide and wildfire -related risk includes overlaying its service territory on the CPUC's Fire -Threat Map. This exercise identified that LEU service territory currently and correctly falls under the category of Tier 1 or low risk under the CPUC Fire -Threat Map. Additionally, LEU's system and service area characteristics (primarily urban, flat, compact, and without any unmanaged wildlands) demonstrate LEU poses a low risk of providing an ignition source for a wildfire. LEU also discusses the specific design and construction standards it has implemented (e.g., use of undergrounding, covered wire, bushing covers, dead -front transformers, less flammable transformer oil) to minimize fire risk in Section V.0 of the WMP. This section details the use of insulated wires, transformer selection, use of high flashpoint transformer oil, and use of undergrounding for new subdivisions and large commercial customers. 3.11 Asset Overview and Service Territory14 As described in Section IV of the WMP, LEU service territory falls under the Tier 1, low risk area of the CPUC fire threat map. LEU does not propose any changes to the map at this time as mentioned in section N.C. 3.12 Restoration15 Section VII of the WMP states LEU will restore service following an outage based on the circuit prioritization outlined in its Electricity Emergency Plan (EEP). Lodi restores vital loads first, before the restoration of non -vital loads. During and following wildfire conditions the WMP also discusses how the system will be inspected for visual damage and hazards prior to energization. 12 PUC Section 8387(2)(1) 13 PUC Section 8387(2)(J)(i); PUC Section 8387(2)(J)(ii); PUC Section 8387(2)(L) 14 PUC Section 8387(2)(K) 15 PUC Section 8387(2)(M) Confidential information for the sole benefit and use of Lodi Electric Utility. Page 10 / Guidehouse Outwit Complexity Wildfire Mitigation Plan Independent Evaluation 3.13 Monitoring and Auditing the Plan 16 LEU conducts an internal audit for completeness, effectiveness, and implementation annually with corrective actions associated with deficiencies implemented as necessary. In addition to the internal audit LEU will have an independent evaluator review the WMP, every three years. In addition, LEU will monitor the effectiveness of its asset inspections through its Computer Maintenance Management System, which tracks issues and deficiencies identified during the inspections and ensures they are addressed. The details of these efforts are described in Section VIII.B-E. 3.14 Annual Review 17 The WMP will be reviewed at least annually. The review will include assessments of the WMP's programs and performance. As part of this process LEU will monitor and audit the implementation of the WMP, identify and correct deficiencies, and monitor and audit the effectiveness of electrical line and equipment inspections, including inspections carried out by contractors. The findings of these audits will be presented at a public meeting of the Lodi City Council in accordance with Section VI. of the WMP. 16 PUC Section 8387(2)(N)(i) and PUC Section 8387(2)(N)(ii) 17 PUC Section 8387(2)(N)(iii) Confidential information for the sole benefit and use of Lodi Electric Utility. Page 11 / Guidehouse Outwit Complexity 4. Results and Discussion Wildfire Mitigation Plan Independent Evaluation Guidehouse finalized this assessment on November 1, 2022. Over the course of reviewing LEU's WMP and supporting documentation, Guidehouse captured takeaways and findings that align the WMP with state laws and effective wildfire measure demonstration for a utility of LEU's size and low-risk profile. LEU's WMP appropriately responds to each of the required elements of PUC Section 8387, which is detailed in Appendix A. The following describes the assessment and resulting findings of the WMP's proposed and established mitigation measures as it applies to safe, reliable operation of all electric infrastructure and wildfire prevention and response. Report Conclusions After internal review of the latest version of the WMP and associated data collection products, Guidehouse concludes this Report with the following: LEU's WMP aligns appropriately with PUC Section 8387 and includes all required elements. 18 • LEU's WMP is comprehensive as described through this Report for an electric utility operating completely within CPUC -designated Tier 1 fire risk areas. '$ Following acceptance of this Report, LEU will post the Report and results online for public view. The Report is scheduled for presentation to the City Council at a public meeting in November 2019. Accomplishing these follow-up tasks will meet all required statutory provisions up until presenting the final WMP to the City Council. Confidential information for the sole benefit and use of Lodi Electric Utility. Page 12 AGuidelhouse Outwit Complexity Wildfire Mitigation Plan Independent Evaluation Appendix A. Statutory Compliance Matrix —1�%�ecti'on Required Statutory Element I Section ..an Elements lements Reference(s) (Summarized) (Determination Each local publicly owned electric utility and electrical cooperative shall construct, maintain, and operate its electrical lines and equipment in a manner that will minimize the risk of wildfire posed by those electrical lines and equipment. (b) (1) The local publicly owned electric utility or electrical cooperative shall, before January 1, 2020, prepare a wildfire mitigation plan. After January 1, 2020, a local publicly owned electric utility or electrical cooperative shall prepare a wildfire mitigation plan annually and shall submit the plan to the California Wildfire Safety Advisory Board on or before July 1 of that calendar year. Each local publicly owned electric utility and electrical cooperative shall update its plan annually and submit the update to the California Wildfire Safety Advisory Board by July 1 of each year. At least once every three years, the submission shall be a comprehensive revision of the Ian. (2) The wildfire mitigation plan shall consider as necessary, at minimum, all of the following: LEU has a Roles and Responsibilities section in its plan with descriptions of the roles of the Electric Utility Director, Engineering and Operations Manager, and Electric Superintendent as well as An accounting of the each City Department. responsibilities of persons Section III While the WMP identifies the Fire Yes responsible for executing the A B & C ' Chief as the person responsible for plan. implementing the Incident Command Structure protocols, the identification of other roles with respect to the Incident Command Structure during a potential wildfire emergency may be helpful. Confidential information for the sole benefit and use of Lodi Electric Utility. Page A-1 / Guidehouse Outwit Complexity Wildfire Mitigation Plan Independent Evaluation Confidential information for the sole benefit and use of Lodi Electric Utility. Page A-2 LEU has clearly stated objectives in its plan. LEU's primary objective refers to reducing, eliminating, minimizing or mitigating the risk of The objectives of the wildfire Section II wildfires caused by or exacerbated by Yes mitigation plan. the entity's electrical system. The secondary goal of improving system resilience in the context of wildfire risk is also a valid objective. A description of the Section V provides a detailed preventive strategies and description of LEU's preventative programs to be adopted by the strategies with specific subsections on local publicly owned electric utility its low-risk service territory, weather or electrical cooperative to monitoring, design and construction minimize the risk of its electrical Section V standards, vegetation management Yes lines and equipment causing and maintenance and inspection. LEU catastrophic wildfires, including also states that it has not identified consideration of dynamic climate any direct impacts on its territory from change risks. dynamic climate change risks. A description of the metrics The four metrics identified represent the local publicly owned electric measurements of WMP effectiveness, utility or electrical cooperative including metrics that track wires plans to use to evaluate the Section VIII down, fire ignitions, the completion Yes wildfire mitigation plan's A rate of its inspection, and vegetation performance and the management cycles. assumptions that underlie the use of those metrics. As with many other WMPs prepared A discussion of how the for 2020, LEU's plan does not discuss application of previously identified the impact of previous metrics metrics to previous wildfire Section VIII because those metrics have not been there Yes mitigation plan performances has B monitored and was no previous informed the wildfire mitigation wildfire mitigation plan to assess plan. performance. The WMP clearly states LEU has not monitored these metrics in the past. A section on reclosers is included in Protocols for disabling the plan and clearly states that LEU reclosers and deenergizing does not currently have a protocol for portions of the electrical blocking the reclosing of lines distribution system that consider because it is in a low-risk area and it the associated impacts on public Section V would have significant adverse impacts on customers. safety, as well as protocols F & G Yes related to mitigating the public Similarly, de-energization is not being safety impacts of those protocols, implemented by LEU at this time and including impacts on critical first the discussions and justification are responders and on health and explained in detail. LEU will review communication infrastructure. this decision in the future iterations of the WMP. Confidential information for the sole benefit and use of Lodi Electric Utility. Page A-2 / Guidehouse Outwit Complexity Wildfire Mitigation Plan Independent Evaluation Appropriate and feasible procedures for notifying a customer who may be impacted While LEU's stated policy is NOT by the deenergizing of electrical lines. The procedures shall Section III performing de-energization, it would consider the need to notify, as a c E use the communication procedures Yes priority, critical first responders, noted in Section III.E to notify health care facilities, and customers. operators of telecommunications infrastructure. Details of tree trimming activities are adequate and include minimum Plans for vegetation Section V D distances and frequency of vegetation Yes management. work. LEU may wish to consider appending additional vegetation management program details. LEU's WMP states that it meets or (1) Plans for inspections of the exceeds the inspection cycles and local publicly owned electric Section V E requirements provided in GO 95 and Yes utility's or electrical cooperative's 165. LEU may wish to consider electrical infrastructure. appending additional vegetation management program details. A list that identifies, describes, In general, this section identifies and prioritizes all wildfire risks, LEU's risk and risk drivers and and drivers for those risks, addresses the topics of design, throughout the local publicly Section IV operation, and construction, as well as Yes owned electric utility's or electrical A & B topographic and climatological risk cooperative's service territory. factors. The list shall include, but not be limited to, both of the following: Risks and risk drivers LEU states that specific risks from associated with design, these risk -drivers include increased construction, operation, and Section IV vegetation mortality, contributing dry - maintenance of the local publicly A & B fuels to the region, as well as Yes owned electric utility's or electrical vegetation in a weakened -state cooperative's equipment and potentially falling into energized lines facilities. during high -wind events. Particular risks and risk In general, this section identifies drivers associated with LEU's risk and risk drivers and topographic and climatological factors throughout the Section IV addresses the topics of design, Yes risk different parts of the local publicly A & B operation, and construction as well as owned electric utility's or electrical topographic and climatological risk cooperative's service territory. factors. Confidential information for the sole benefit and use of Lodi Electric Utility. Page A-3 / Guidehouse Outwit Complexity Wildfire Mitigation Plan Independent Evaluation Identification of any geographic area in the local publicly owned electric utility's or LEU's WMP confirms that its system electrical cooperative's service is located completely in a low (tier 1) territory that is a higher wildfire fire threat zone. threat than is identified in a Section IVB YeS commission fire threat map, and LEU states it does not propose identification of where the changes to the CPUC fire threat map commission should expand a at this time. high fire -threat district based on new information or changes to the environment. LEU includes a map overlay exercise A methodology for identifying as its methodology to identify and and presenting enterprise wide Section IV B present wildfire -related risk. LEU should consider adding a formal risk Yes safety risk and wildfire -related assessment process to identify and risk. present enterprise safety and wildfire - related risks. A statement of how the local LEU's WMP provides a statement of publicly owned electric utility or how it plans to restore service after a electrical cooperative will restore Section VII wildfire, including a discussion of Yes service after a wildfire. efforts to inspect the condition of the system prior to energization. A description of the processes and procedures the local publicly owned electric utility or electrical cooperative shall use to do all of the following: LEU states it will conduct both internal and external (independent) audits of the plan to identify deficiencies. LEU has stated that the Electric Utility Director is responsible for the internal review and audit of the plan as well as the identification and tracking of deficiencies in the WMP's implementation and direct corrective Monitor and audit the Section VIII actions for any plan or implementation deficiencies identified by LEU, its implementation of the wildfire C, D & contractors or any external auditing Yes mitigation plan. parties. LEU also plans to monitor and audit the implementation of the plan by evaluating the progress of its vegetation management and inspection programs. LEU could expand upon this by instituting monthly or quarterly assessments that track LEU investments and activities proposed in the plan or directed to minimize wildfire risks. Confidential information for the sole benefit and use of Lodi Electric Utility. Page A-4 / Guidehouse Outwit Complexity Wildfire Mitigation Plan Independent Evaluation Confidential information for the sole benefit and use of Lodi Electric Utility. Page A-5 LEU has stated that the Electric Utility Director is responsible for the internal review and audit of the plan as well as Identify any deficiencies in the the identification and tracking of wildfire mitigation plan or its Section VIII deficiencies in the WMP's Yes implementation, and correct C, D & E implementation and direct corrective those deficiencies. actions for any plan or implementation deficiencies identified by LEU, its contractors or any external auditing parties. LEU also plans to monitor and audit Monitor and audit the the effectiveness of its vegetation effectiveness of electrical line and management and inspection equipment inspections, including Section VIII programs through two of the metrics it has established in its WMP. LEU inspections performed by C, D & E could expand upon this by instituting Yes contractors, that are carried out monthly or quarterly assessments that under the plan, other applicable track LEU investments and activities statutes, or commission rules. proposed in the plan or directed to minimize wildfire risks. (3) The local publicly owned electric utility or electrical cooperative shall, on or before January 1, 2020, and not less than annually thereafter, present its wildfire mitigation plan in an appropriately noticed public meeting. The local publicly owned LEU will present its WMP to the City electric utility or electrical cooperative shall accept Section VIII Council at a public meeting in Yes comments on its wildfire November 2019. mitigation plan from the public, other local and state agencies, and interested parties, and shall verify that the wildfire mitigation plan complies with all applicable rules, regulations, and standards, as appropriate. (c) The local publicly owned electric utility or electrical cooperative shall contract with a qualified independent evaluator with experience in assessing the safe operation of electrical infrastructure to review and assess the comprehensiveness LEU contracted with Guidehouse of its wildfire mitigation plan. The Consulting, Inc. to perform an independent evaluator shall issue Section IX independent evaluation of its WMP. Yes a report that shall be made Qualifications are described in Section available on the internet website 1. of the local publicly owned electric utility or electrical cooperative, and shall present the report at a public meeting of the local publicly owned electric utility's or electrical cooperative's governing board. Confidential information for the sole benefit and use of Lodi Electric Utility. Page A-5 RESOLUTION NO 2022-282 A RESOLUTION OF THE LODI CITY COUNCIL ACCEPTING THE THIRD -PARTY AUDIT OF THE WILDFIRE MITIGATION PLAN PERFORMED BY GUIDEHOUSE, INC., OF FOLSOM ------------------------------------------------------------------------ ------------------------------------------------------------------------ WHEREAS, Senate Bill 901, enacted in 2018, amended the California Public Utilities Code requiring electric utilities to prepare and submit an annual Wildfire Mitigation Plan ((WMP) that meets various regulatory requirements; and WHEREAS, SB 901 also requires electric utilities to contract with a qualified independent evaluator with experience in assessing the safe operation of electrical infrastructure to review and assess the comprehensiveness of its WMP; and WHEREAS, Lodi Electric Utility (LEU) contracted with Guidehouse, Inc., to provide WMP Independent Evaluation Services; and WHEREAS, the evaluation of the WMP finds that it is comprehensive in accordance with regulatory requirements. NOW, THEREFORE, BE IT RESOLVED that Lodi City Council does hereby accept the WMP audit report prepared by Guidehouse, Inc., of Folsom, California. Dated: November 16, 2022 1 hereby certify that Resolution No. 2022-282 was passed and adopted by the City Council of the City of Lodi in a regular meeting held on November 16, 2022, by the following vote: AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None OLIVIA NASHED City Clerk 2022-282