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6.2. ERMUSR 07-08-2003 J Elk River Municipal Utilities 372 King Avenue phone: 763.441.2020 Elk River.MN 55330 Far.763.441.8099 June 26, 2003 To: Elk River Municipal Utilities Commission John Dietz Jerry Takle James Tralle From: Bryan C. Adams Subject: Minnesota Energy Security & Reliability Act Distribution Reliability Standards At the January 14, 2003, Elk River Municipal Utilities Commission meeting we discussed the Minnesota Energy, Security, and Reliability Act and the Distribution Reliability Standard as addressed in this legislation. The rules for the Distribution Reliability Standards portion of this legislation have been issued. This memo addresses these rules and how it might effect us. The distribution reliability standards were adopted to address real or perceived problems for the Investor Owned Utilities. Co-op's and Municipals must adopt standards for safety, reliability, and service quality, but from our interpretation are exempt from the reporting requirements, unless we report to our governing boards. The following 18 sections make up the significant portions of this legislation. 1. Safety Standards a) New and modified facilities shall comply with National Electrical Safety Code requirements. b) Utilities are encouraged to follow the recommended practices of the Institute of Electrical and Electronics Engineers Inc. and American National Standards Institute on electricity metering and standard voltage rating. c) Utilities shall comply with all regulations promulgated by U.S. Occupational Safety & Health Administration and Occupational Safety & Health Division of the Minnesota Department of Labor and Industry. Elk River Municipal Utilities is in compliance with the above three items. 2. Annual Safety Report a) Summary of all reports filed with U.S. OSHA and Minnesota OSHA on an annual basis. b) Summary of all incidents in which an injury required medical attention on property damage resulting in compensation on an annual basis. Municipals are not required to report. 3. Reliability Reporting Requirements Annually, utilities shall report SAIDI, SAIFI, and CAIDI statistics, along with how they statistically normalize major storms, action plan for remedying failures, report interruption data, data on out of compliance service voltage, data on staffing levels, and other information that effects reliability performance. Municipals not required to submit annual reports. 4. Reliability Standards a) Annually, each utility establishes reliability performance standard numbers for SAIDI, SAIFI, and CAIDI. b) Annually, PUC shall establish reliability performance standard numbers for SAIDI, SAIFI, and CAIDI. SAIDI=System average interruption duration index. ERMU SAIDI=53.43 SAIFI=System average interruption frequency index. ERMU SAIFI=.279 CAIDI=Customer average interruption duration index. ERMU CAIDI=45.33 Elk River Municipal Utilities already keeps these statistics, but awaiting for comparison statistics. 5. Reporting Major Service Interruptions Utilities shall promptly inform PUC Consumer Affairs Office of any major service interruptions (affecting 500 customers for more than 1 hour), include information on location, cause, number of customers, expected duration, all followed by a written report within 30 days. Municipals not required to report. 6. Customer Notice of Planned Service Interruptions Utilities shall give customers notice, if feasible, of planned interruption lasting longer than 20 minutes either by mailed notices or door to door visits, 12 to 72 hours before interruption. Elk River Municipal Utilities does this notification on a routine basis. 7. Meter Reading Frequency; Customer Accommodation a) Utilities shall attempt to read on a monthly basis, 90% of all customer from April through November, and 80% through the months of December through March. b) Utilities shall read meters during the evening or weekends for customers whose meters are inaccessible or reading meters on the normal schedule creates a hardship for the customer. Elk River Municipal Utilities exceed this requirement. This is also why we are installing radio read meters. 8. Replacing Malfunctioning Meters Utilities shall replace a malfunctioning meter within ten calendar days of receiving a report from a customer questioning its accuracy or within ten calendar days of learning in some other way that it may be inaccurate. Elk River Municipal Utilities' policy required meter to be tested for accuracy at customers expense. If found faulty, Elk River Municipal Utilities reimburses customer expense with refund for previous 12 months, per state statute. 9. Keeping Service Calls Utilities shall keep service call appointments and shall provide as much notice as possible when an appointment cannot be kept. A service call appointment is kept if the worker arrives within a four-hour period set by the utility and clearly communicated to the customer. Elk River Municipal Utilities complies with this requirement. 10. Call Center Response Time a) Calls to business office—on an annual basis, utilities shall answer 80% of the calls during regular business hours within 20 seconds. If the utility uses an automated call-processing system, the 20 second period begins when the customer selects a menu option to speak to a live person. b) Calls regarding service interruptions—on an annual basis, utilities shall answer 80% of the calls within 20 seconds. Answering may mean connecting to a recorded message giving the pertinent information. Elk River Municipal Utilities exceeds this requirement. 11. Annual Service Quality Report Filing Annually, each utility shall file a report on its service quality performance. Municipals not required to report. 12. Reporting Meter-Reading Performance Annually, each utility shall report meter-reading performance for each customer class in the following: a) Number and percentage of meters read by utility personnel. b) Number and percentage of meters self-read by customer. c) Number and percentage of meters not read by utility personnel for 6-12 months and greater than 12 months and explain why. d) Data on monthly meter-reading staffing levels. Municipals not required to report. 13. Reporting Involuntary Disconnections Annually, each utility must include a detailed report on involuntary disconnection of service for each customer, class to include: a) Number of customers who receive disconnection notices. b) Number of customers who sought cold weather rule protection, and received cold weather rule protection. c) Number of customers whose service was disconnected involuntarily and number of these customers restored to service within 24 hours. d) Number of disconnected customers restored to service by entering into a payment plan. Municipals not required to report. 14. Reporting Service Extension Request Response Times Annually, utilities must include a detailed report on service extension request response time to include: a) Number of customers requesting service not previously served by the utility and the interval between date service line was installed and in-service date requested by customer. b) Number of customers requesting service previously served by the utility, but not served at the time of the request and the interval between date service line was installed and in-service date requested by customer. Municipals not required to report. 15. Reporting Call Center Response Times Annual service quality report must include a detailed report on call center response times, including calls to the business office and calls regarding service interruptions. Report must include a month-by-month breakdown. Municipals not required to report. • 16. Reporting Emergency Medical Account Status Annual service quality report must include the number of customers who requested emergency medical account status under Minnesota Statutes, number whose applications were granted, and number whose applications were denied and the reasons for each denial. Elk River Municipal Utilities complies with this requirement. 17. Reporting Customer Deposits Annual service quality report must include the number of customers who were required to make a deposit as a condition of receiving service. Municipals not required to report. 18. Reporting Customer Complaints Annual service quality report on complaints by customer class and calendar month, including the following: a) The number of complaints received. b) The number and percentage of complaints alleging billing errors, inaccurate metering, wrongful disconnection, high bills, inadequate service, and the number involving service-extension intervals, service-restoration intervals, and any other identifiable subject matter involved in five percent or more of customer complaints. c) The number and percentage of complaints resolved upon initial inquiry, within ten days, and longer than ten days. d) The number and percentage of all complaints resolved by taking any of the following actions: (1) taking the action the customer requested; (2) taking an action the customer and the utility agree is an acceptable compromise; (3) providing the customer with information that demonstrates that the situation complained of is not reasonably within the control of the utility; or (4) refusing to take the action the customer requested; and e) The number of complaints forwarded to the utility by the commission's Consumer Affairs Office for further investigation and action. Municipals not required to report. This list reflects the issues the public has with some of the Investor Owned Utilities. Co-op's and Municipals generally do not have these issues because we are locally owned and locally controlled. MMUA is drafting a recommended distribution reliability standard for municipals to comply with this new legislation.