Incorporating risk information into GRC decision making - - PowerPoint PPT Presentation

Incorporating risk information into GRC decision making Richard White CPUC Policy and Planning Division April 29th 2015

Presentation to 2015 State Energy Risk Assessment Workshop

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CPUC adopts a new paradigm for regulating safety

Safety policy statement of July 2014 “Ultimately we are striving to achieve a goal of zero accidents and injuries across all the utilities and businesses we regulate, …” What people think … What we are doing… What people hear…  Risks cannot be eliminated, only managed  Implementing a Safety Action Plan to improve the internal safety processes of the CPUC  Costs can become un- bounded in the desire to reach “Zero”  Embedded risk assessment process into the General Rate Case (GRC)  Developing processes to share risk information with stakeholders  Developing models to evaluate the safety portfolio of a utility

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CPUC adds new risk-based processes to GRC*

*D.14-12-025. Order Instituting Rulemaking to Develop a Risk-Based Decision- Making Framework to Evaluate Safety and Reliability Improvement

S-MAP RAMP GRC Risk Report Year 1 Risk Report Year 2 Risk Report Year 3

Safety feedback loop is now built into GRC

Next GRC Cycle Expected Risk Mitigation

S-MAP: Safety Model Assessment Proceeding RAMP: Risk Assessment Mitigation Phase

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CPUC is facilitating risk communication among stakeholders

S-MAP RAMP GRC

CPUC Intervener Stakeholder workshop: Model review and comments Program review and comments

Utility based risk models Program assessment and mitigation plan

SED Staff report

Program selection w/ expected costs and expected risk mitigation

Utilities

Stakeholders Final Rule

= Risk Communications

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CPUC is exploring ways to model the safety portfolio of a utility

A Bayesian network approach to modeling the safety portfolio of a utility

Natural events Asset condition System response Outage impact Utility Recovery

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Local conditions

External event uncertainties Utility system uncertainties Stakeholder values

Injuries Environment Terror Attacks Asset Testing Worker Testing Accidental dig in Convenience Cost

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Ongoing challenges for incorporating risk information into safety regulation

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Developing safety metrics utilized by all utilities

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Building confidence in risk-informed decision making

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Identifying leading indicators of safety risk

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Establishing clear risk communication standards for utilities, regulators, and interveners Distinguishing long term objectives from short term

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