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caused by a moderate, severe, or catastrophic storm condition are exempt frotp the <br />proam. <br />• How does PGM provide relief to customers that have experienced a prolonged <br />electrical power outage? Like SCE, PG&E has a multi -point service guarantee program <br />that provides customer credits that range from $30 -$100 for a wide range of activities. <br />In addition, PG&E has a specific, weather related program, the "Safety Net" program, <br />which provides automatic, direct payment to customers experiencing electrical power <br />outages, in excess of 48 hours. <br />* What type of customer compensation program does the Resolution call for? The <br />Resolution calls for a customer compensation program that expands beyond PG&E's two <br />existing programs. Under the Resolution, the City of Rancho Palos Verdes would like to <br />compel SCE to adopt a program based on PG&E's "Safety Net" and "Service Guarantee" <br />programs, and also cover weather-related events and planned and unplanned service <br />disruptions. <br />* Do these programs really provide funds to residential customers? While the Resolution <br />holds PG&E's programs in high esteem, after hearing from a number of city officials in <br />PG&E's service territory, it seems that there is a great deal of skepticism around the <br />effectiveness and utilization of their residential compensation programs. Is PG&E's <br />program really working as described? <br />What about California's other Investor Owned Utilities (IOU) and municipal utilities? <br />The Resolution is directed at SCE. However, the committee may want to consider the <br />implications of the Resolution on the other investor owned utilities and municipal <br />utilities. <br />• Is legislation the best approach? The Resolution calls upon the Governor and the Legislature to <br />work with the League of California Cities to enact legislation or to otherwise compel SCE to <br />create a program to automatically provide direct compensation to its customers affected by a <br />prolonged electrical power outage. Given that the California Public Utilities Commission <br />regulates all of the investor owned utilities, it may be more appropriate to seek a regulatory <br />change rather than a legislative proposal. <br />• More information to come. The Resolution could have broader implications beyond SCE and <br />PG&E. Prior to the Environmental Quality Policy Committee and General Resolutions <br />Committee meeting at Annual Conference, League staff will provide additional background <br />information on the following: <br />o Other IOU electrical power outage compensation programs. <br />o Municipal utility electrical power outage compensation programs. <br />o Role of the California Public Utilities Commission. <br />Existing League Policy; <br />In response to the energy crisis of 2001, the League of California Cities established extensive policy and <br />guiding principles related to the electric industry. However, there is no existing policy that pertains to <br />prolonged power outages or compensating customers for damages incurred during a prolonged power <br />outage. <br />2 <br />