WEBVTT

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>> Good afternoon and welcome.

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I'm calling to order
this hearing of

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the Assembly Committee
on Utilities and Energy.

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We are here to discuss
California's utility

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wildfire safety regime.

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Before we jump into the topic
at hand, I have some brief

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housekeeping announcements.

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Public comment comment
will be welcome in person.

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We'll have an opportunity for
public comment at the end of

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our panel discussion.

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If you're unable to provide
public comment here in

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person, you can submit
your comments online via

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the committee website.

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And lastly, we will not
accept disruptive behavior

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and will apply all assembly
rules in order to maintain

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order and run a fair hearing.

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With that, last week,
we were all reminded of

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why this work matters.

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As Santa Ana winds swept
through Southern California

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and high winds hit the north,
both C and P, G and E cut

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power to more than 150,000
California customers.

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We saw fires break out in
Malibu, Azusa and Orange

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County, where the North Fire
damaged and destroyed homes

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near the city of San Clemente.

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Our hearts are getting hotter,
our dries are getting drier,

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and our fire weather is getting
harder and harder to manage.

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Following the devastating
fires of 2017 and 2018,

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the legislature constructed
a new wildfire safety regime.

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Wildfire mitigation plans
reviewed reviewed by

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a new Office of Energy
Infrastructure Safety,

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annual safety certificates.

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Safety culture assessments
and a $21 billion wildfire fund,

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which SB 254 extended last year.

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The bargain was pretty simple.

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Utilities that plan
and carry out mitigation

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under state oversight
earn a safety certificate,

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and that certificate gives
them access to the wildfire

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fund and a presumption that
they acted prudently.

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And there has been real progress
over the nearly decade since we

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enacted that construct.

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Reported utility ignitions in
high fire threat districts

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fell by half in 2025.

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Utilities have hardened
thousands of miles of

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lines and inspect far more
frequently, finding hazards

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that they used to miss.

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But ratepayers have paid
dearly for this progress.

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About $40 billion in
authorized wildfire costs from

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2019 to 2024, or roughly $250
to $490 a year for a typical

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California household.

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In today's hearing, we're
asking really three

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fundamental questions.

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First, has this safety regime
sufficiently lowered the risk

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that utility equipment start
a catastrophic fire here in

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California.

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Number two, our incentives
appropriately aligned

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between California utilities
and the customers that they

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say they serve as we are
making and prioritizing

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these investments.

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And lastly, when a utility
gets it wrong and a fire

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starts, despite all of our best
efforts, what accountability

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measures are in place and are
these sufficient?

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To answer these questions, we
need a shared understanding

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of what success looks like so
that regulators, utilities

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and the public are all
working toward the same goal.

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As a reminder, this hearing
is a first in a series.

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Next Wednesday, this
committee will examine

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the generational investments
that California utilities are

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making today, how they're
financed, and the financial

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strain that the state's
climate risks are creating.

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And on Thursday of next week, we
will partner with our colleagues

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in the Insurance Committee to
examine the fairest and lowest

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cost way to allocate wildfire
subrogation costs.

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That said, fast and fair
victim compensation, statewide

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community wildfire mitigation
efforts, and a statewide

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strategy, the Wildfire Fund's
durability are also important

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topics and will also be
examined in future discussions.

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With that, I want to thank
our panelists for joining

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us today and look forward
to today's discussion,

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and I would like to go ahead.

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Oh, before I welcome our
panelists, I'll turn it

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over to my colleagues for
any welcoming remarks.

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All right, all right.

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Seeing and hearing none.

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We will go ahead and welcome
our panelists to the dais.

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We are joined today by Forrest
Kaiser, who is the director

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of the Office of Energy
Infrastructure Safety, by Doctor

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Nathaniel Skinner, the deputy
director of energy at the Public

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Advocate's office.

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Jill Anderson, the executive
vice president and chief

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operating officer of
Southern California, Edison.

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Steve Poncelet, the public
information officer

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and strategic affairs director
from the Truckee Donner Public

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Utility District.

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And doctor Ilkay Altintas,
the chief data science

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officer and faculty fellow
from the University of

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California at San Diego.

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Once again, thank you all
so much for joining us.

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This is a far reaching,
complex and challenging topic,

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and really look forward to your
engagement and your perspectives

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as the committee digs into
the questions before us.

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So I think we are going to begin
with some opening comments

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from each of our panelists,
and then we will open it up for

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questions and discussion with
the committee.

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I think we're beginning, yes.

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All right. So, Mr.

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Kaiser, welcome, director
Kaiser. Welcome. Thank you.

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>> Good afternoon, Chair
Petrie-norris and Assembly

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Member Garabedian.

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My name is Forrest Kaiser.

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Energy infrastructure safety
or energy safety for short.

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I appreciate the opportunity
to address you today.

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Energy safety was created
by the legislature in 2019

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in response to a series of
catastrophic wildfires that

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took place in 2017 and 2018.

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Following an extended
multiyear drought.

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Um and science tells us that
such droughts will likely

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become much more frequent
occurrence in the future.

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Energy safety's primary
objective is to ensure that

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electric utilities are reducing
wildfire risk and adhering

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to their approved wildfire
mitigation plans, even as

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climate increases the risks.

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The statutory mechanisms we have
to do that focus on continuous

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learning and changing behavior,
energy safety reviews and can

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require changes in utilities
wildfire mitigation plans.

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We also evaluate how well
utilities implement those plans,

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including sending inspectors
into the field to assess

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the extent and the quality of
utilities work.

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And we assess the safety culture
of utility Organizations as

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an incentive to participate in
this approach.

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Utilities that meet certain
criteria, such as having

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an approved wildfire mitigation
plan and having an executive

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compensation package that
complies with certain

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statutory requirements, receive
a certificate from Energy

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Safety.

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This certificate requires
the CPUc to presume an investor

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owned utility acted reasonably
when determining whether they

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have to repay the Wildfire
fund and caps what they have

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to repay.

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See.

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Where should I point
this to make this work?

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Yeah.

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Okay.

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Okay. Uh, great.

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Um, so if the fire agency
having jurisdiction determines

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that a catastrophic wildfire
was caused by investor owned

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utility equipment, the utility
faces a variety of potential

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consequences, including payment
of damages due to the due to

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California's strict liability
standard for utilities, which

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would also apply to publicly
owned utilities.

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Repayment of money received
from the wildfire fund,

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payment of fines, compensation
reductions, credit rating

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downgrades, which also applies
to publicly owned utilities.

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Um, share price reductions
and criminal prosecution.

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All of those consequences
provide financial or criminal

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accountability and fall under
the responsibility of other

00:29:02.407 --> 00:29:03.508 align:middle line:85% position:50% size:18%
bodies.

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Energy safety has
a different mission

00:29:05.777 --> 00:29:06.945 align:middle line:85% position:50% size:63%
and a different approach.

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Energy safety's primary
objective is to drive

00:29:09.814 --> 00:29:12.750 align:middle line:79% position:50% size:70%
behavioural change to reduce
future wildfire risk.

00:29:13.451 --> 00:29:16.321 align:middle line:79% position:50% size:70%
Potential consequences from
energy safety include direct

00:29:16.387 --> 00:29:20.425 align:middle line:79% position:50% size:65%
feedback to the utility on
actions to avoid starting

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another fire of the same type.

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If utility does not take action
to respond to their feedback,

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energy safety can and has
denied utilities wildfire

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mitigation plan and could deny
a certificate in future years.

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Okay, so we have seen
a lot of progress under

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the new framework.

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As the chair pointed out
in her opening remarks.

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This slide shows
the main categories of

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work that utilities do
to reduce wildfire risk.

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As one example, all three large
utilities have deployed weather

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dependent, sensitive, protective
device setting programs on 100%

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of the areas of highest utility
wildfire risk in each utilities

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territory, which are called
the High fire threat districts.

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Ignitions of even the largest
fires start very small.

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Every inch covered by every
mitigation installed is

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reducing some degree of risk.

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In many cases, medications
are layered so that if one

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mitigation fails, another
mitigation is there to catch

00:30:18.750 --> 00:30:20.485 align:middle line:85% position:50% size:78%
the problem and prevent a fire.

00:30:21.486 --> 00:30:24.022 align:middle line:79% position:50% size:78%
Not shown in the slide are
the less tangible but essential

00:30:24.088 --> 00:30:27.125 align:middle line:79% position:50% size:68%
contributions to improve
the quality and accuracy of

00:30:27.192 --> 00:30:30.728 align:middle line:79% position:50% size:75%
fundamental utility work, like
inspections and maintenance

00:30:31.429 --> 00:30:33.865 align:middle line:79% position:50% size:70%
and culture change, which is
the foundation for making

00:30:33.932 --> 00:30:34.966 align:middle line:85% position:50% size:53%
everything else work.

00:30:35.900 --> 00:30:38.703 align:middle line:79% position:50% size:68%
Together, these mitigations
have and will continue

00:30:38.770 --> 00:30:41.206 align:middle line:79% position:50% size:68%
to reduce the risk of
utility caused catastrophic

00:30:41.272 --> 00:30:42.941 align:middle line:85% position:50% size:60%
wildfires in California.

00:30:43.675 --> 00:30:46.344 align:middle line:85% position:50% size:80%
But that risk is still not zero.

00:30:48.947 --> 00:30:51.449 align:middle line:79% position:50% size:60%
This slide shows utility
ignitions from 2015 to

00:30:51.516 --> 00:30:54.052 align:middle line:79% position:50% size:65%
2025, which the chair also
mentioned in her remarks.

00:30:54.252 --> 00:30:57.789 align:middle line:79% position:50% size:80%
The lines show the trend of
ignitions from each large IOU in

00:30:57.855 --> 00:30:59.290 align:middle line:85% position:50% size:78%
the high fire threat districts.

00:30:59.624 --> 00:31:03.194 align:middle line:79% position:50% size:80%
We see ignitions in the riskiest
areas decreasing over time.

00:31:03.661 --> 00:31:06.564 align:middle line:79% position:50% size:65%
The bump in 2024 coincided
with historically high

00:31:06.631 --> 00:31:09.367 align:middle line:79% position:50% size:80%
heat levels throughout
the state, and ignitions outside

00:31:09.434 --> 00:31:11.302 align:middle line:85% position:50% size:80%
the riskiest areas also went up.

00:31:13.771 --> 00:31:16.341 align:middle line:79% position:50% size:68%
So the ultimate metric for
success in utility wildfire

00:31:16.407 --> 00:31:20.044 align:middle line:79% position:50% size:68%
mitigation is the number of
catastrophic wildfires that

00:31:20.111 --> 00:31:21.112 align:middle line:85% position:50% size:35%
have occurred.

00:31:22.180 --> 00:31:24.682 align:middle line:79% position:50% size:70%
It is not economically
possible to drive the number

00:31:24.749 --> 00:31:26.451 align:middle line:85% position:50% size:53%
of wildfires to zero.

00:31:27.185 --> 00:31:30.888 align:middle line:79% position:50% size:75%
It is possible to drive
catastrophic utility wildfires

00:31:30.955 --> 00:31:34.025 align:middle line:79% position:50% size:70%
to zero, but utilities can't
do that alone.

00:31:34.325 --> 00:31:36.661 align:middle line:79% position:50% size:63%
There is too much risk
embedded in the landscape

00:31:36.728 --> 00:31:38.463 align:middle line:85% position:50% size:75%
outside the utility's control.

00:31:38.930 --> 00:31:42.767 align:middle line:79% position:50% size:80%
Reducing catastrophic wildfires
to zero requires the cooperation

00:31:42.834 --> 00:31:46.471 align:middle line:79% position:50% size:78%
and collaborative participation
of many entities and actors

00:31:46.537 --> 00:31:49.707 align:middle line:79% position:50% size:73%
across the landscape, outside
the utility rights of way.

00:31:51.209 --> 00:31:53.544 align:middle line:79% position:50% size:68%
The good news is that there
is an overall downward

00:31:53.611 --> 00:31:56.447 align:middle line:79% position:50% size:70%
trend in the number of
catastrophic wildfires since

00:31:56.514 --> 00:31:58.650 align:middle line:85% position:50% size:55%
the peak of 9 in 2017.

00:31:59.784 --> 00:32:03.955 align:middle line:79% position:50% size:75%
The Eaton Fire in 2025 was
a horrible, horrific exception

00:32:04.022 --> 00:32:09.427 align:middle line:79% position:50% size:80%
to this trend, but 2023 and 2024
show us what is possible.

00:32:10.928 --> 00:32:13.097 align:middle line:79% position:50% size:70%
It is important to note that
weather plays a major role

00:32:13.164 --> 00:32:17.035 align:middle line:79% position:50% size:75%
in wildfire risk extended
droughts, heat waves, abnormal

00:32:17.101 --> 00:32:18.870 align:middle line:85% position:50% size:68%
precipitation, wind events.

00:32:19.070 --> 00:32:22.507 align:middle line:79% position:50% size:78%
These factors all play outsized
roles in affecting the risk.

00:32:22.974 --> 00:32:25.143 align:middle line:79% position:50% size:63%
Weather related risks are
increasing due to climate

00:32:25.209 --> 00:32:29.380 align:middle line:79% position:50% size:73%
change, and wildfire is front
and center in that problem.

00:32:30.315 --> 00:32:33.284 align:middle line:79% position:50% size:60%
We are essentially in
a race with those risks.

00:32:34.052 --> 00:32:36.788 align:middle line:79% position:50% size:75%
Wildfire risk will continue to
increase for the foreseeable

00:32:36.854 --> 00:32:40.625 align:middle line:79% position:50% size:75%
future, but if we act together
collaboratively across

00:32:40.692 --> 00:32:44.095 align:middle line:79% position:50% size:78%
the state and across sectors,
we can stay ahead of that risk.

00:32:44.495 --> 00:32:46.331 align:middle line:79% position:50% size:65%
Thank you, and I look
forward to your questions.

00:32:47.131 --> 00:32:50.902 align:middle line:79% position:50% size:65%
>> Thank you. Director
Doctor Skinner. Thank you.

00:32:52.937 --> 00:32:54.639 align:middle line:79% position:50% size:60%
>> Good afternoon,
Chairwoman Petrie-norris

00:32:54.706 --> 00:32:55.640 align:middle line:85% position:50% size:55%
and committee members.

00:32:55.707 --> 00:32:57.575 align:middle line:79% position:50% size:70%
Thank you for the invitation
to speak today.

00:32:57.975 --> 00:33:00.778 align:middle line:79% position:50% size:78%
My name is Nathaniel Skinner,
and I am here in my capacity as

00:33:00.845 --> 00:33:04.182 align:middle line:79% position:50% size:73%
Deputy Director of energy for
the Public Advocate's office.

00:33:04.582 --> 00:33:08.186 align:middle line:79% position:50% size:65%
We represent ratepayers of
investor owned utilities

00:33:08.252 --> 00:33:10.788 align:middle line:79% position:50% size:70%
and advocate for affordable,
safe and reliable service

00:33:10.855 --> 00:33:13.491 align:middle line:79% position:50% size:68%
consistent with the state's
environmental goals.

00:33:44.689 --> 00:33:48.025 align:middle line:79% position:50% size:80%
Wildfire costs that are charged
to ratepayers include mitigation

00:33:48.092 --> 00:33:50.862 align:middle line:79% position:50% size:80%
efforts such as undergrounding,
covered conductor and vegetation

00:33:50.928 --> 00:33:55.299 align:middle line:79% position:50% size:73%
management insurance, which
is premiums or self-insurance

00:33:55.366 --> 00:33:58.870 align:middle line:79% position:50% size:80%
self-insurance, particularly
for the larger utilities as well

00:33:58.936 --> 00:34:02.106 align:middle line:79% position:50% size:80%
as the Wildfire Fund because
the Wildfire fund is a secondary

00:34:02.173 --> 00:34:05.843 align:middle line:79% position:50% size:70%
source of insurance and also
wildfire liability.

00:34:05.910 --> 00:34:08.780 align:middle line:79% position:50% size:58%
So that is claims for
damages after wildfire,

00:34:08.846 --> 00:34:11.616 align:middle line:79% position:50% size:70%
be it catastrophic or
non-catastrophic, as well as

00:34:11.682 --> 00:34:15.353 align:middle line:79% position:50% size:78%
the restoration cost to provide
service again after a fire.

00:34:16.020 --> 00:34:21.125 align:middle line:79% position:50% size:68%
Collectively, these charges
comprise 14% or more of

00:34:21.192 --> 00:34:24.028 align:middle line:79% position:50% size:63%
each large investor owned
utilities customer bill,

00:34:24.662 --> 00:34:26.297 align:middle line:85% position:50% size:70%
and those costs are growing.

00:34:29.467 --> 00:34:34.839 align:middle line:79% position:50% size:78%
In 2019, wildfire related costs
comprised about $500 million of

00:34:34.906 --> 00:34:36.174 align:middle line:85% position:50% size:50%
the costs and rates.

00:34:37.208 --> 00:34:40.645 align:middle line:79% position:50% size:60%
Today, that number has
increased to $9 billion.

00:34:40.845 --> 00:34:45.783 align:middle line:79% position:50% size:65%
That's an 18 fold increase
in just five years.

00:34:46.484 --> 00:34:48.820 align:middle line:79% position:50% size:55%
And that number is not
expected to decrease.

00:34:49.387 --> 00:34:52.690 align:middle line:79% position:50% size:65%
In fact, by 2028, just two
years from now, that 9

00:34:52.757 --> 00:34:56.093 align:middle line:79% position:50% size:73%
billion is expected to double
yet again to 18 billion.

00:34:56.727 --> 00:35:00.164 align:middle line:79% position:50% size:80%
This unsustainable increase is
now the single largest component

00:35:00.231 --> 00:35:01.899 align:middle line:85% position:50% size:65%
impacting customers bills.

00:35:06.604 --> 00:35:09.674 align:middle line:79% position:50% size:70%
Regarding utility insurance,
we've seen a similar scope

00:35:09.740 --> 00:35:13.544 align:middle line:79% position:50% size:68%
of increases across all six
investor owned utilities.

00:35:13.611 --> 00:35:16.247 align:middle line:79% position:50% size:70%
The rate payer funding for
insurance has increased over

00:35:16.314 --> 00:35:23.788 align:middle line:79% position:50% size:78%
seven times, from 200,000,000
in 2015 to 1.9 billion in 2025.

00:35:24.155 --> 00:35:26.524 align:middle line:79% position:50% size:73%
Now, that is a mix of general
insurance for everything

00:35:26.591 --> 00:35:29.494 align:middle line:79% position:50% size:60%
from a car accident to
a catastrophic wildfire.

00:35:29.694 --> 00:35:32.897 align:middle line:79% position:50% size:68%
About half of that is just
for catastrophic wildfires,

00:35:33.130 --> 00:35:38.069 align:middle line:79% position:50% size:78%
but we've gone from 200,000,000
in 20 15 to 1.9 billion today.

00:35:43.741 --> 00:35:47.178 align:middle line:79% position:50% size:60%
The pace of increase can
be reduced if you choose

00:35:47.245 --> 00:35:49.981 align:middle line:79% position:50% size:60%
the right mitigations in
the right locations.

00:35:50.381 --> 00:35:52.884 align:middle line:79% position:50% size:70%
There are three primary sets
of mitigations, each with

00:35:52.950 --> 00:35:54.452 align:middle line:85% position:50% size:73%
their own costs and benefits.

00:35:54.852 --> 00:35:58.222 align:middle line:79% position:50% size:73%
Undergrounding is the slowest
and most expensive,

00:35:58.456 --> 00:36:01.425 align:middle line:79% position:50% size:78%
but provides high risk
reduction and high reliability.

00:36:01.926 --> 00:36:04.996 align:middle line:79% position:50% size:65%
However, it costs around
$3 million per underground

00:36:05.062 --> 00:36:09.200 align:middle line:79% position:50% size:80%
mile, and it takes about one
and a half or 1.2 times as much.

00:36:09.267 --> 00:36:12.203 align:middle line:79% position:50% size:55%
Undergrounding mileage
to remove an overhead

00:36:12.270 --> 00:36:16.073 align:middle line:79% position:50% size:60%
mile covered conductor
combined with fast trip.

00:36:16.140 --> 00:36:18.776 align:middle line:79% position:50% size:63%
Still provides high risk
reduction, sometimes even

00:36:18.843 --> 00:36:20.111 align:middle line:85% position:50% size:65%
as high as undergrounding.

00:36:20.378 --> 00:36:22.547 align:middle line:79% position:50% size:50%
And it costs about
$1 million per mile.

00:36:22.947 --> 00:36:25.583 align:middle line:79% position:50% size:58%
And it can also improve
reliability compared to

00:36:26.050 --> 00:36:27.251 align:middle line:85% position:50% size:48%
bare overhead wire.

00:36:27.685 --> 00:36:30.354 align:middle line:79% position:50% size:68%
And then lastly, there's
public safety power shutoff

00:36:30.421 --> 00:36:31.822 align:middle line:85% position:50% size:60%
for fast trip by itself.

00:36:32.089 --> 00:36:34.392 align:middle line:79% position:50% size:55%
It's the default
mitigation used today.

00:36:34.659 --> 00:36:37.395 align:middle line:79% position:50% size:65%
However, I do want to note
as Director Kaiser did,

00:36:37.695 --> 00:36:41.165 align:middle line:79% position:50% size:63%
that that has significant
customer impacts.

00:36:41.232 --> 00:36:43.968 align:middle line:79% position:50% size:78%
They can lose power for days at
a time depending on the wind

00:36:44.035 --> 00:36:46.337 align:middle line:79% position:50% size:73%
conditions and when power can
start being restored.

00:36:49.974 --> 00:36:53.277 align:middle line:79% position:50% size:75%
What does the $9 billion that
ratepayers are paying for each

00:36:53.344 --> 00:36:54.845 align:middle line:85% position:50% size:73%
year for wildfire mitigation.

00:36:54.912 --> 00:36:56.347 align:middle line:79% position:50% size:45%
How does that show
up in their bills?

00:36:57.148 --> 00:37:00.918 align:middle line:79% position:50% size:80%
In residential rates, it's about
$41 a month of every customer's

00:37:00.985 --> 00:37:06.123 align:middle line:79% position:50% size:75%
bill for PG and E, 27 a month
for Edison and $21 a month for

00:37:06.190 --> 00:37:07.658 align:middle line:85% position:50% size:68%
San Diego Gas and Electric.

00:37:08.125 --> 00:37:09.827 align:middle line:79% position:50% size:53%
Much of the focus has
been around the three

00:37:09.894 --> 00:37:10.928 align:middle line:85% position:50% size:40%
large utilities.

00:37:11.128 --> 00:37:14.031 align:middle line:79% position:50% size:68%
However, for the smaller
utilities, their ratepayers

00:37:14.098 --> 00:37:17.635 align:middle line:79% position:50% size:78%
are almost entirely residential
customers, and the impacts can

00:37:17.702 --> 00:37:19.270 align:middle line:85% position:50% size:65%
be similarly catastrophic.

00:37:19.503 --> 00:37:22.907 align:middle line:79% position:50% size:80%
And this we are seeing today for
the smaller utilities as well.

00:37:27.311 --> 00:37:29.847 align:middle line:79% position:50% size:63%
In conclusion, ratepayers
can no longer afford to

00:37:29.914 --> 00:37:32.149 align:middle line:79% position:50% size:63%
be the financial backstop
for wildfires.

00:37:32.350 --> 00:37:36.454 align:middle line:79% position:50% size:80%
And when a utility linked
utility is linked to a wildfire,

00:37:37.188 --> 00:37:38.723 align:middle line:85% position:50% size:80%
the ratepayers are the backstop.

00:37:39.490 --> 00:37:42.226 align:middle line:79% position:50% size:75%
First, continuing to shift
costs onto ratepayers, worsens

00:37:42.293 --> 00:37:46.163 align:middle line:79% position:50% size:80%
the affordability and undermines
the state's climate goals.

00:37:46.564 --> 00:37:50.234 align:middle line:79% position:50% size:78%
This may seem obvious, but it's
a crucial and everyday part of

00:37:50.301 --> 00:37:51.335 align:middle line:85% position:50% size:33%
our advocacy.

00:37:51.902 --> 00:37:53.738 align:middle line:79% position:50% size:50%
Second, keep holding
the investor owned

00:37:53.804 --> 00:37:54.905 align:middle line:85% position:50% size:55%
utilities accountable.

00:37:55.239 --> 00:37:57.475 align:middle line:79% position:50% size:60%
Shareholders do need to
be held responsible when

00:37:57.541 --> 00:37:58.643 align:middle line:85% position:50% size:50%
their managers fail.

00:37:58.843 --> 00:38:01.379 align:middle line:79% position:50% size:75%
On that note, I would like to
thank Chairwoman Petrie-norris

00:38:01.445 --> 00:38:03.848 align:middle line:79% position:50% size:65%
for your leadership in
authoring legislation that

00:38:03.914 --> 00:38:06.550 align:middle line:79% position:50% size:70%
helps promote that utility
accountability that we need.

00:38:07.351 --> 00:38:10.187 align:middle line:79% position:50% size:63%
Third, lowering financing
costs associated with

00:38:10.254 --> 00:38:14.291 align:middle line:79% position:50% size:65%
utilities wildfire related
capital expenditures will

00:38:14.358 --> 00:38:18.496 align:middle line:79% position:50% size:75%
deliver meaningful bill impact
and relief to customers.

00:38:18.863 --> 00:38:21.465 align:middle line:79% position:50% size:73%
And then lastly, helping keep
the focus on the general rate

00:38:21.532 --> 00:38:24.368 align:middle line:79% position:50% size:68%
case, which is and needs to
be the primary vehicle for

00:38:24.435 --> 00:38:27.238 align:middle line:79% position:50% size:70%
funding utility budgets to
make sure that those budgets

00:38:27.304 --> 00:38:30.307 align:middle line:79% position:50% size:65%
are reasonable or in other
words, that they are safe,

00:38:30.374 --> 00:38:34.111 align:middle line:79% position:50% size:73%
prudent, prioritized, and in
the ratepayers best interest.

00:38:34.345 --> 00:38:35.913 align:middle line:79% position:50% size:60%
Thank you, and I welcome
your questions.

00:38:36.547 --> 00:38:37.548 align:middle line:85% position:50% size:33%
>> Thank you.

00:38:39.517 --> 00:38:40.518 align:middle line:85% position:50% size:35%
Miss Anderson.

00:38:40.918 --> 00:38:43.054 align:middle line:79% position:50% size:70%
>> Thank you. Good
afternoon, chair and members

00:38:43.120 --> 00:38:44.755 align:middle line:79% position:50% size:45%
of the committee.
I'm Jill Anderson.

00:38:44.822 --> 00:38:48.025 align:middle line:79% position:50% size:78%
I'm the chief operating officer
for Southern California Edison.

00:38:48.426 --> 00:38:51.095 align:middle line:79% position:50% size:68%
So we're here to talk about
safety and wildfire safety.

00:38:51.162 --> 00:38:53.831 align:middle line:79% position:50% size:48%
And that's not just
an abstract policy

00:38:53.898 --> 00:38:55.599 align:middle line:85% position:50% size:75%
conversation for us at Edison.

00:38:55.800 --> 00:38:57.134 align:middle line:85% position:50% size:50%
It is very personal.

00:38:57.401 --> 00:39:00.971 align:middle line:79% position:50% size:70%
It is part of our mission in
protecting the communities

00:39:01.038 --> 00:39:03.708 align:middle line:79% position:50% size:70%
that we serve, in reducing
risk and in making sure that

00:39:03.774 --> 00:39:07.078 align:middle line:79% position:50% size:75%
we are building back trust
with our customers in the work

00:39:07.144 --> 00:39:08.913 align:middle line:85% position:50% size:53%
that we do every day.

00:39:09.547 --> 00:39:11.682 align:middle line:79% position:50% size:63%
Now, I want to start with
the Eaton Fire, because

00:39:11.749 --> 00:39:14.752 align:middle line:79% position:50% size:65%
I think it's in large part
why we're all here today.

00:39:15.186 --> 00:39:20.858 align:middle line:79% position:50% size:78%
So back in January 2025, we had
historic drought conditions.

00:39:20.925 --> 00:39:23.627 align:middle line:79% position:50% size:70%
We had low humidity, we had
high winds, and we saw fires

00:39:23.694 --> 00:39:25.396 align:middle line:85% position:50% size:70%
break out across California.

00:39:25.763 --> 00:39:28.599 align:middle line:79% position:50% size:68%
And several of those became
catastrophic very quickly.

00:39:29.100 --> 00:39:33.270 align:middle line:79% position:50% size:75%
In the Eaton Fire, 19 people
lost their lives and thousands

00:39:33.337 --> 00:39:35.139 align:middle line:85% position:50% size:53%
more lost everything.

00:39:35.539 --> 00:39:38.409 align:middle line:79% position:50% size:68%
Those are people. Those are
Edison employees included.

00:39:38.476 --> 00:39:39.910 align:middle line:79% position:50% size:55%
Those were my
neighbors and friends.

00:39:39.977 --> 00:39:42.513 align:middle line:79% position:50% size:58%
As my family and I live
in the Altadena area.

00:39:43.514 --> 00:39:48.018 align:middle line:79% position:50% size:75%
Now, a few months ago, the Los
Angeles County Fire Report

00:39:48.085 --> 00:39:50.955 align:middle line:79% position:50% size:65%
came out in cooperation
with Cal Fire, which found

00:39:51.021 --> 00:39:53.791 align:middle line:79% position:50% size:70%
that Edison's equipment was
associated with the ignition

00:39:53.858 --> 00:39:58.229 align:middle line:79% position:50% size:73%
of the Eden Fire, and by that
time, that was not news.

00:39:58.429 --> 00:40:01.132 align:middle line:79% position:50% size:68%
For months prior, we had
already been saying that it

00:40:01.198 --> 00:40:04.001 align:middle line:79% position:50% size:73%
was likely that our equipment
may have been involved in

00:40:04.068 --> 00:40:05.202 align:middle line:85% position:50% size:53%
the ignition at Eden.

00:40:05.503 --> 00:40:08.606 align:middle line:79% position:50% size:78%
Even before the investigation
report came out, we had already

00:40:08.672 --> 00:40:11.442 align:middle line:79% position:50% size:65%
started paying hundreds of
millions of dollars to our

00:40:11.509 --> 00:40:14.445 align:middle line:79% position:50% size:68%
customers who suffered that
terrible tragedy.

00:40:14.512 --> 00:40:17.748 align:middle line:79% position:50% size:70%
And there will be many more
payouts through our wildfire

00:40:17.815 --> 00:40:19.617 align:middle line:85% position:50% size:75%
recovery compensation program.

00:40:20.217 --> 00:40:23.654 align:middle line:79% position:50% size:63%
Now, I'm not here to tell
you that we learned some

00:40:23.721 --> 00:40:26.123 align:middle line:79% position:50% size:70%
important lessons from Eden,
and now we're moving on

00:40:26.190 --> 00:40:28.292 align:middle line:85% position:50% size:73%
because we are not moving on.

00:40:28.492 --> 00:40:30.427 align:middle line:79% position:50% size:55%
We can't. And I don't
think any of us who've

00:40:30.494 --> 00:40:31.962 align:middle line:85% position:50% size:60%
been involved ever will.

00:40:32.163 --> 00:40:34.498 align:middle line:79% position:50% size:48%
It will always be
part of who we are.

00:40:34.965 --> 00:40:39.203 align:middle line:79% position:50% size:70%
We carry that responsibility
with us as we work alongside

00:40:39.270 --> 00:40:41.305 align:middle line:85% position:50% size:70%
the community in rebuilding.

00:40:41.839 --> 00:40:45.176 align:middle line:79% position:50% size:73%
But it's also what reinforces
our belief that our work on

00:40:45.242 --> 00:40:47.945 align:middle line:79% position:50% size:70%
safety and public safety is
something that's never done.

00:40:48.479 --> 00:40:52.149 align:middle line:79% position:50% size:73%
And so as we work to be as
safe as operator as possible,

00:40:52.216 --> 00:40:54.985 align:middle line:79% position:50% size:68%
we have to make sure that
we are constantly learning,

00:40:55.319 --> 00:40:58.389 align:middle line:79% position:50% size:73%
that we're approaching issues
with humility and that we are

00:40:58.455 --> 00:41:00.991 align:middle line:79% position:50% size:65%
taking action when we know
things need to change.

00:41:01.525 --> 00:41:03.828 align:middle line:79% position:50% size:68%
But I also would agree with
what Director Casar said,

00:41:03.894 --> 00:41:07.765 align:middle line:79% position:50% size:63%
which is that the risk of
ignition from an electric

00:41:07.832 --> 00:41:09.466 align:middle line:85% position:50% size:65%
system will never be zero.

00:41:09.533 --> 00:41:11.735 align:middle line:79% position:50% size:58%
It's not technically or
financially feasible.

00:41:12.403 --> 00:41:14.205 align:middle line:79% position:50% size:58%
And so it's important
that we all are working

00:41:14.271 --> 00:41:16.874 align:middle line:79% position:50% size:65%
together, listening
and learning and acting so

00:41:16.941 --> 00:41:20.511 align:middle line:79% position:50% size:63%
that we can minimize that
risk as much as possible.

00:41:21.278 --> 00:41:24.415 align:middle line:79% position:50% size:68%
And to that end, we welcome
our oversight and guidance

00:41:24.481 --> 00:41:27.351 align:middle line:79% position:50% size:70%
that we get from regulators,
energy safety, who you've

00:41:27.418 --> 00:41:29.753 align:middle line:79% position:50% size:70%
heard from already, who is
responsible for our wildfire

00:41:29.820 --> 00:41:32.990 align:middle line:79% position:50% size:68%
mitigation plan and making
sure that we're accountable

00:41:33.057 --> 00:41:34.625 align:middle line:85% position:50% size:63%
and constantly improving.

00:41:35.059 --> 00:41:37.828 align:middle line:79% position:50% size:68%
We have the California
Public Utilities Commission

00:41:37.895 --> 00:41:40.831 align:middle line:79% position:50% size:55%
who has cost and broad
regulatory oversight.

00:41:40.898 --> 00:41:44.201 align:middle line:79% position:50% size:75%
Together, they hold utilities
accountable, make sure that we

00:41:44.268 --> 00:41:46.337 align:middle line:79% position:50% size:75%
are learning and we're getting
better, and that we're meeting

00:41:46.403 --> 00:41:47.638 align:middle line:85% position:50% size:73%
the commitments that we make.

00:41:48.138 --> 00:41:51.175 align:middle line:79% position:50% size:65%
And so I want to summarize
quickly what some of those

00:41:51.242 --> 00:41:53.577 align:middle line:79% position:50% size:65%
commitments have been that
Edison has achieved in

00:41:53.644 --> 00:41:55.813 align:middle line:85% position:50% size:73%
the last really back to 2018.

00:41:56.080 --> 00:41:59.216 align:middle line:79% position:50% size:80%
And it's not just the activities
of the wildfire mitigation plan,

00:41:59.283 --> 00:42:00.951 align:middle line:85% position:50% size:75%
but real, meaningful outcomes.

00:42:01.352 --> 00:42:05.356 align:middle line:79% position:50% size:70%
We have hardened now more
than 85% of our highest risk

00:42:05.422 --> 00:42:07.157 align:middle line:85% position:50% size:75%
circuits with cover conductor.

00:42:07.224 --> 00:42:10.127 align:middle line:79% position:50% size:65%
That's more than 7000
miles that we've deployed.

00:42:10.194 --> 00:42:12.730 align:middle line:79% position:50% size:60%
We've done 100 miles of
targeted undergrounding.

00:42:12.796 --> 00:42:15.532 align:middle line:79% position:50% size:60%
We've trimmed or removed
over 2 million trees.

00:42:15.599 --> 00:42:19.003 align:middle line:79% position:50% size:68%
We've completed 1.9 million
equipment inspections.

00:42:19.069 --> 00:42:20.938 align:middle line:79% position:50% size:60%
I mean, I could keep
going, but it's not just

00:42:21.005 --> 00:42:22.172 align:middle line:85% position:50% size:48%
about the activity.

00:42:22.439 --> 00:42:25.676 align:middle line:79% position:50% size:80%
It's about reducing
the ignitions that are happening

00:42:25.743 --> 00:42:26.977 align:middle line:85% position:50% size:65%
in our highest risk areas.

00:42:27.044 --> 00:42:28.112 align:middle line:85% position:50% size:58%
And we are seeing that.

00:42:28.545 --> 00:42:31.715 align:middle line:79% position:50% size:78%
We've also invested in
situational awareness with more

00:42:31.782 --> 00:42:35.452 align:middle line:79% position:50% size:80%
than 2000 new weather stations
and 200 high definition cameras.

00:42:35.519 --> 00:42:38.322 align:middle line:79% position:50% size:70%
And those benefit Edison,
but also our public and fire

00:42:38.389 --> 00:42:41.592 align:middle line:79% position:50% size:78%
safety partners in all kinds of
fires, regardless of the start.

00:42:41.825 --> 00:42:43.794 align:middle line:79% position:50% size:60%
Now, that's meaningful
progress, but we know we

00:42:43.861 --> 00:42:45.162 align:middle line:85% position:50% size:53%
have more work to do.

00:42:45.796 --> 00:42:48.999 align:middle line:79% position:50% size:70%
And also we know that even
hardening, if you finish all

00:42:49.066 --> 00:42:52.169 align:middle line:79% position:50% size:73%
of the hardening that we have
planned, you are still going

00:42:52.236 --> 00:42:55.839 align:middle line:79% position:50% size:80%
to, at times of extreme weather,
need to temporarily de-energize

00:42:55.906 --> 00:42:58.375 align:middle line:79% position:50% size:78%
the system to completely remove
the ignition risk.

00:42:58.976 --> 00:43:01.478 align:middle line:79% position:50% size:65%
And as Chair Petrie-norris
mentioned in the beginning

00:43:01.545 --> 00:43:02.479 align:middle line:85% position:50% size:60%
here, we had to do that.

00:43:02.546 --> 00:43:06.150 align:middle line:79% position:50% size:70%
Last week, more than 100,000
Edison customers temporarily

00:43:06.216 --> 00:43:09.987 align:middle line:79% position:50% size:73%
lost power when we had strong
Santa Ana winds and red flag

00:43:10.187 --> 00:43:11.622 align:middle line:85% position:50% size:53%
warnings in our area.

00:43:12.323 --> 00:43:14.959 align:middle line:79% position:50% size:58%
And when that happens,
I spend time out in our

00:43:15.025 --> 00:43:16.193 align:middle line:85% position:50% size:65%
customer resource centers.

00:43:16.260 --> 00:43:18.495 align:middle line:79% position:50% size:68%
Personally, I was out there
on Thursday and Friday,

00:43:18.562 --> 00:43:21.365 align:middle line:79% position:50% size:65%
and I'm listening directly
to customers about their

00:43:21.432 --> 00:43:24.835 align:middle line:79% position:50% size:78%
experience and their feedback
so that we can listen and learn

00:43:24.902 --> 00:43:28.238 align:middle line:79% position:50% size:75%
and make changes in our public
safety power shutoff programs.

00:43:28.639 --> 00:43:31.675 align:middle line:79% position:50% size:75%
We are targeting which
circuits we're hardening next,

00:43:31.742 --> 00:43:34.411 align:middle line:79% position:50% size:65%
so that the ones that have
had a lot of fatigue with

00:43:34.478 --> 00:43:37.781 align:middle line:79% position:50% size:68%
repeat outages are avoided,
are avoided in the future.

00:43:37.982 --> 00:43:40.718 align:middle line:79% position:50% size:80%
We're helping our customers
prepare for outages because they

00:43:40.784 --> 00:43:43.554 align:middle line:79% position:50% size:78%
shouldn't assume they will have
unlimited access to electricity

00:43:43.620 --> 00:43:46.657 align:middle line:79% position:50% size:73%
under all weather conditions,
and we have programs for our

00:43:46.724 --> 00:43:48.325 align:middle line:85% position:50% size:65%
most vulnerable customers.

00:43:48.859 --> 00:43:52.329 align:middle line:79% position:50% size:73%
We work every day to minimize
the impact and the likelihood

00:43:52.396 --> 00:43:54.965 align:middle line:79% position:50% size:70%
of PSPs, and we are seeing
that it will have a downward

00:43:55.032 --> 00:43:58.135 align:middle line:79% position:50% size:70%
trend in future years, while
also making sure that we are

00:43:58.202 --> 00:44:00.437 align:middle line:85% position:50% size:68%
prioritizing public safety.

00:44:00.938 --> 00:44:03.807 align:middle line:79% position:50% size:70%
So the last thing I want to
say about our safety, public

00:44:03.874 --> 00:44:06.844 align:middle line:79% position:50% size:78%
safety, and it's also something
that Director Kaiser mentioned,

00:44:07.144 --> 00:44:09.113 align:middle line:85% position:50% size:68%
really starts with culture.

00:44:09.480 --> 00:44:12.816 align:middle line:79% position:50% size:53%
And at Edison, we are
continuously learning

00:44:12.883 --> 00:44:15.352 align:middle line:79% position:50% size:63%
and improving and working
on our safety culture.

00:44:15.652 --> 00:44:18.288 align:middle line:79% position:50% size:60%
We're building a culture
where our employees not

00:44:18.355 --> 00:44:21.892 align:middle line:79% position:50% size:68%
only feel comfortable,
but feel obligated to speak

00:44:21.959 --> 00:44:24.428 align:middle line:79% position:50% size:68%
up when they see something
that needs to be addressed.

00:44:24.695 --> 00:44:27.131 align:middle line:79% position:50% size:60%
We're building a culture
where we learn as much

00:44:27.197 --> 00:44:31.035 align:middle line:79% position:50% size:60%
from a near miss as we
do from an actual event.

00:44:31.635 --> 00:44:33.937 align:middle line:79% position:50% size:55%
And the Eaton Fire has
absolutely influenced

00:44:34.004 --> 00:44:35.039 align:middle line:85% position:50% size:30%
our culture.

00:44:35.105 --> 00:44:38.442 align:middle line:79% position:50% size:65%
It's one where we now look
at not just learning from

00:44:38.509 --> 00:44:42.046 align:middle line:79% position:50% size:68%
events of the past and what
experiences that we or

00:44:42.112 --> 00:44:43.480 align:middle line:85% position:50% size:63%
other utilities have had.

00:44:43.547 --> 00:44:46.517 align:middle line:79% position:50% size:73%
But we have to be looking for
that event that has never

00:44:46.583 --> 00:44:50.254 align:middle line:79% position:50% size:65%
happened before, that risk
that could possibly be in

00:44:50.320 --> 00:44:51.955 align:middle line:85% position:50% size:73%
the tail end of our analysis.

00:44:52.022 --> 00:44:54.992 align:middle line:79% position:50% size:75%
But we know, as Eaton has
shown us, that even those tail

00:44:55.059 --> 00:44:56.560 align:middle line:85% position:50% size:65%
risks need to get managed.

00:44:57.494 --> 00:45:00.731 align:middle line:79% position:50% size:73%
So with that, I'll close just
by saying that maybe zooming

00:45:00.798 --> 00:45:03.133 align:middle line:79% position:50% size:75%
out a little bit, because what
we're talking about here is

00:45:03.200 --> 00:45:05.803 align:middle line:79% position:50% size:70%
so much bigger than Southern
California Edison, or even

00:45:05.869 --> 00:45:07.304 align:middle line:85% position:50% size:63%
bigger than any one fire.

00:45:07.704 --> 00:45:10.174 align:middle line:79% position:50% size:78%
You know, wildfires are risking
the lives and the homes

00:45:10.240 --> 00:45:13.210 align:middle line:79% position:50% size:75%
and the businesses of of every
Californian making it more

00:45:13.277 --> 00:45:16.513 align:middle line:79% position:50% size:70%
expensive to live here, more
difficult to work here.

00:45:16.713 --> 00:45:19.950 align:middle line:79% position:50% size:78%
And we've seen utilities who've
made important investments in

00:45:20.017 --> 00:45:22.586 align:middle line:79% position:50% size:73%
reducing the likelihood of
ignitions from their systems.

00:45:22.653 --> 00:45:26.190 align:middle line:79% position:50% size:78%
And we've seen the state invest
in suppression and help with

00:45:26.256 --> 00:45:27.991 align:middle line:85% position:50% size:68%
fuel and forest management.

00:45:28.592 --> 00:45:30.627 align:middle line:79% position:50% size:53%
But we will never get
that risk to zero.

00:45:30.894 --> 00:45:33.630 align:middle line:79% position:50% size:68%
And once an ignition
happens, it either is going

00:45:33.697 --> 00:45:36.333 align:middle line:79% position:50% size:63%
to be a non-event and put
out quickly, or it could

00:45:36.400 --> 00:45:37.835 align:middle line:85% position:50% size:60%
turn into a catastrophe.

00:45:38.235 --> 00:45:40.437 align:middle line:79% position:50% size:73%
And at that point, the point,
the utility really has no

00:45:40.504 --> 00:45:43.574 align:middle line:79% position:50% size:80%
control over whether an ignition
is turning into a catastrophe.

00:45:44.041 --> 00:45:46.477 align:middle line:79% position:50% size:68%
It's dependent on whether
it's dependent on the homes

00:45:46.543 --> 00:45:48.378 align:middle line:79% position:50% size:63%
and where they were built
and how they were built,

00:45:48.445 --> 00:45:49.913 align:middle line:85% position:50% size:58%
and many other factors.

00:45:50.214 --> 00:45:51.648 align:middle line:85% position:50% size:53%
Yet it's the utility.

00:45:51.715 --> 00:45:54.918 align:middle line:79% position:50% size:80%
Like Doctor Skinner just said,
it's the utilities customers who

00:45:54.985 --> 00:45:56.854 align:middle line:85% position:50% size:80%
are bearing that financial risk.

00:45:57.354 --> 00:45:59.756 align:middle line:79% position:50% size:73%
And those rates, as we are
seeing, are going to continue

00:45:59.823 --> 00:46:03.460 align:middle line:79% position:50% size:73%
to go up as those risks are
continue to be unpredictable.

00:46:03.760 --> 00:46:06.230 align:middle line:79% position:50% size:48%
And there's a limit
on the liability.

00:46:06.830 --> 00:46:10.267 align:middle line:79% position:50% size:80%
And so as you consider the input
you're getting from this hearing

00:46:10.334 --> 00:46:12.636 align:middle line:79% position:50% size:78%
on safety and the future
hearings that you have planned,

00:46:12.703 --> 00:46:14.304 align:middle line:85% position:50% size:80%
we hope that you will reconvene.

00:46:14.538 --> 00:46:17.574 align:middle line:79% position:50% size:73%
We hope you will reconvene in
a special session so that we

00:46:17.641 --> 00:46:21.445 align:middle line:79% position:50% size:73%
can work together on a long
term, durable and a permanent

00:46:21.512 --> 00:46:23.347 align:middle line:85% position:50% size:78%
solution to wildfire liability.

00:46:23.747 --> 00:46:27.718 align:middle line:79% position:50% size:63%
We have SB 254, which was
or 1054 first, which was

00:46:27.784 --> 00:46:31.288 align:middle line:79% position:50% size:65%
an important foundation to
254 then, which provided

00:46:31.355 --> 00:46:32.789 align:middle line:85% position:50% size:63%
that near-term stability.

00:46:32.856 --> 00:46:35.392 align:middle line:79% position:50% size:80%
But we heard from the California
earthquake authorities report

00:46:35.459 --> 00:46:37.828 align:middle line:79% position:50% size:75%
earlier this year that neither
are sufficient.

00:46:38.195 --> 00:46:41.999 align:middle line:79% position:50% size:70%
We need meaningful reform so
that we can all collectively

00:46:42.065 --> 00:46:45.135 align:middle line:79% position:50% size:73%
deliver on that affordability
promise that the constituents

00:46:45.202 --> 00:46:48.038 align:middle line:79% position:50% size:60%
here are counting on us
to, and that we can have

00:46:48.105 --> 00:46:51.208 align:middle line:79% position:50% size:73%
a safe and reliable electric
system that every Californian

00:46:51.275 --> 00:46:52.876 align:middle line:85% position:50% size:50%
requires. Thank you.

00:46:54.311 --> 00:46:57.681 align:middle line:85% position:50% size:68%
>> Thank you, Mr. Poncelet.

00:46:59.216 --> 00:47:00.217 align:middle line:85% position:50% size:10%
Yes.

00:47:05.722 --> 00:47:08.692 align:middle line:79% position:50% size:75%
>> Do I have a PowerPoint that
they're loading up, I believe.

00:47:18.802 --> 00:47:20.938 align:middle line:79% position:50% size:53%
There we go. Thank
you for your support.

00:47:21.004 --> 00:47:24.208 align:middle line:79% position:50% size:65%
So Steven Poncelet, public
information and strategic

00:47:24.274 --> 00:47:27.678 align:middle line:79% position:50% size:78%
affairs director, Truckee
Donner Public Utility District.

00:47:28.045 --> 00:47:30.247 align:middle line:79% position:50% size:60%
That's our agenda on
the next slide up there.

00:47:30.314 --> 00:47:32.516 align:middle line:79% position:50% size:50%
I'll skip through
that to keep moving.

00:47:33.183 --> 00:47:35.152 align:middle line:79% position:50% size:43%
Talk a little bit
about who we are.

00:47:35.452 --> 00:47:37.788 align:middle line:85% position:50% size:70%
We were established in 1927.

00:47:37.854 --> 00:47:39.856 align:middle line:85% position:50% size:80%
We turn 100 years old next year.

00:47:39.923 --> 00:47:41.425 align:middle line:85% position:50% size:60%
Very excited about that.

00:47:41.792 --> 00:47:44.228 align:middle line:79% position:50% size:45%
Electric and water
utility serving

00:47:44.294 --> 00:47:45.896 align:middle line:85% position:50% size:63%
the Greater Truckee area.

00:47:45.963 --> 00:47:49.900 align:middle line:79% position:50% size:58%
About 16,000 customers,
largely residential.

00:47:50.300 --> 00:47:53.537 align:middle line:79% position:50% size:68%
We are locally elected
board of directors, not for

00:47:53.604 --> 00:47:55.239 align:middle line:85% position:50% size:60%
profit, community owned.

00:47:55.305 --> 00:47:57.441 align:middle line:85% position:50% size:75%
Public owned electric utility.

00:47:57.741 --> 00:47:59.576 align:middle line:85% position:50% size:73%
We are cost of service based.

00:47:59.643 --> 00:48:02.546 align:middle line:79% position:50% size:65%
And while we have seen
significant cost pressures

00:48:02.613 --> 00:48:05.515 align:middle line:79% position:50% size:58%
and wildfire mitigation
costs, our rates do

00:48:05.582 --> 00:48:09.152 align:middle line:79% position:50% size:63%
remain very competitive
and stable in California.

00:48:09.720 --> 00:48:12.155 align:middle line:79% position:50% size:63%
And we do operate in
a mountainous environment

00:48:12.222 --> 00:48:13.156 align:middle line:85% position:50% size:43%
that we all love.

00:48:13.223 --> 00:48:16.793 align:middle line:79% position:50% size:58%
6000 8500ft our systems
built for the winter

00:48:17.261 --> 00:48:18.762 align:middle line:85% position:50% size:65%
wildfire mitigation plans.

00:48:18.829 --> 00:48:20.063 align:middle line:85% position:50% size:45%
Next slide please.

00:48:20.364 --> 00:48:22.065 align:middle line:85% position:50% size:75%
You guys know what's in there.

00:48:22.132 --> 00:48:26.036 align:middle line:79% position:50% size:65%
Our plan is tailored to
the unique situation faced

00:48:26.103 --> 00:48:29.206 align:middle line:79% position:50% size:63%
by the greater Truckee
community and so tailored

00:48:29.273 --> 00:48:31.808 align:middle line:85% position:50% size:58%
to our local situation.

00:48:31.875 --> 00:48:32.976 align:middle line:85% position:50% size:45%
Next slide please.

00:48:34.144 --> 00:48:36.280 align:middle line:79% position:50% size:40%
We call this one
the Money Slide.

00:48:36.346 --> 00:48:38.815 align:middle line:79% position:50% size:55%
It's a great slide for
just summarizing what

00:48:38.882 --> 00:48:43.053 align:middle line:79% position:50% size:55%
a WMP is and what's in
there and prevention.

00:48:43.120 --> 00:48:46.990 align:middle line:79% position:50% size:65%
You have edge management
inspections, patrol system

00:48:47.057 --> 00:48:50.327 align:middle line:79% position:50% size:65%
hardening detection is
your situational awareness

00:48:50.394 --> 00:48:52.195 align:middle line:85% position:50% size:43%
in your modeling.

00:48:52.262 --> 00:48:56.066 align:middle line:79% position:50% size:70%
And then protection are your
devices, your one shot,

00:48:56.133 --> 00:48:59.569 align:middle line:79% position:50% size:70%
your fast trip and then
ultimately shutting down for

00:48:59.636 --> 00:49:00.871 align:middle line:85% position:50% size:40%
wildfire safety?

00:49:01.138 --> 00:49:04.041 align:middle line:79% position:50% size:63%
We also call it the money
slide because this stuff

00:49:04.107 --> 00:49:05.475 align:middle line:85% position:50% size:53%
costs a lot of money.

00:49:05.709 --> 00:49:08.478 align:middle line:79% position:50% size:58%
So but it's a great one
to get it out there.

00:49:08.545 --> 00:49:09.713 align:middle line:85% position:50% size:45%
Next slide please.

00:49:09.980 --> 00:49:13.950 align:middle line:79% position:50% size:58%
For the early revisions
of our WMP, we focused

00:49:14.017 --> 00:49:15.218 align:middle line:85% position:50% size:45%
on veg management.

00:49:15.285 --> 00:49:18.989 align:middle line:79% position:50% size:55%
We live in a forest in
mountains, and we took

00:49:19.056 --> 00:49:23.226 align:middle line:79% position:50% size:53%
our budget from 350 K
to over 2.5 million.

00:49:23.593 --> 00:49:27.597 align:middle line:79% position:50% size:50%
And if you strip out
capital and purchase

00:49:27.664 --> 00:49:31.568 align:middle line:79% position:50% size:65%
power, we're a $25 million
a year operating utility.

00:49:31.635 --> 00:49:33.370 align:middle line:79% position:50% size:58%
So that's a significant
investment.

00:49:33.437 --> 00:49:35.505 align:middle line:79% position:50% size:48%
And we've seen big
benefits from that.

00:49:35.972 --> 00:49:38.642 align:middle line:79% position:50% size:43%
We had to rely on
others early on.

00:49:38.709 --> 00:49:41.511 align:middle line:79% position:50% size:58%
And we're transmission
dependent of NV energy.

00:49:41.945 --> 00:49:43.947 align:middle line:79% position:50% size:55%
And they had modeled
our area because their

00:49:44.014 --> 00:49:45.415 align:middle line:85% position:50% size:48%
facilities come in.

00:49:45.482 --> 00:49:48.251 align:middle line:79% position:50% size:63%
And our sister California
investor owned utility

00:49:48.318 --> 00:49:50.854 align:middle line:79% position:50% size:60%
Liberty Utilities, had
also done a lot of work.

00:49:50.921 --> 00:49:53.523 align:middle line:79% position:50% size:55%
And we've worked very
well together to share

00:49:53.590 --> 00:49:54.858 align:middle line:85% position:50% size:53%
all that information.

00:49:55.258 --> 00:49:56.593 align:middle line:85% position:50% size:45%
Next slide please.

00:49:57.427 --> 00:50:01.098 align:middle line:79% position:50% size:55%
Today, investments in
situational awareness.

00:50:01.164 --> 00:50:02.165 align:middle line:85% position:50% size:48%
We have cloud fire.

00:50:02.232 --> 00:50:06.903 align:middle line:79% position:50% size:68%
Now it's a model that was
built largely by NV energy,

00:50:07.304 --> 00:50:11.842 align:middle line:79% position:50% size:75%
but it does real time wildfire
risk modeling and forecasting.

00:50:12.042 --> 00:50:15.445 align:middle line:79% position:50% size:60%
We're installing grid
ware and grid scope line

00:50:15.512 --> 00:50:18.448 align:middle line:79% position:50% size:65%
sensors that are giving us
real time information even

00:50:18.515 --> 00:50:20.117 align:middle line:85% position:50% size:60%
when our system is down.

00:50:20.517 --> 00:50:23.820 align:middle line:79% position:50% size:63%
Um, and we are still
relying on collaboration.

00:50:24.020 --> 00:50:26.656 align:middle line:79% position:50% size:58%
Significant investments
in overhead overhead

00:50:26.723 --> 00:50:27.958 align:middle line:85% position:50% size:43%
system hardening.

00:50:28.024 --> 00:50:30.560 align:middle line:79% position:50% size:50%
For us, it's granite
we're going through.

00:50:30.627 --> 00:50:32.863 align:middle line:79% position:50% size:43%
So underground is
very expensive.

00:50:33.430 --> 00:50:38.368 align:middle line:79% position:50% size:73%
Metal poles, cover conductors
and fiberglass cross arms

00:50:38.435 --> 00:50:41.605 align:middle line:79% position:50% size:68%
have shown to give almost
the same risk reduction for

00:50:41.671 --> 00:50:43.240 align:middle line:85% position:50% size:50%
$0.20 on the dollar.

00:50:43.573 --> 00:50:49.146 align:middle line:79% position:50% size:65%
Um, preemptive power shut
off is our version of SPS.

00:50:49.713 --> 00:50:52.682 align:middle line:79% position:50% size:63%
Um and we are moving
towards fast trip, but we

00:50:52.749 --> 00:50:55.786 align:middle line:79% position:50% size:63%
require some controls to
be able to automate that.

00:50:55.986 --> 00:50:58.688 align:middle line:79% position:50% size:68%
And then everything we do
is viewed through a lens of

00:50:58.755 --> 00:51:00.924 align:middle line:85% position:50% size:63%
risk reduction and costs.

00:51:02.025 --> 00:51:03.226 align:middle line:85% position:50% size:45%
Next slide please.

00:51:03.794 --> 00:51:05.896 align:middle line:79% position:50% size:63%
Cloudflare has really
been a great tool for us.

00:51:05.962 --> 00:51:07.731 align:middle line:79% position:50% size:55%
We've had it for
a couple of years now.

00:51:07.798 --> 00:51:11.968 align:middle line:79% position:50% size:75%
It does real time and forecast
fire one week out, and it

00:51:12.035 --> 00:51:16.206 align:middle line:79% position:50% size:70%
breaks our four by ten mile
system into 40 weather zones

00:51:16.273 --> 00:51:17.674 align:middle line:85% position:50% size:50%
and a circuit zones.

00:51:17.741 --> 00:51:22.345 align:middle line:79% position:50% size:70%
And that allows us to really
target where we prioritize

00:51:22.412 --> 00:51:25.816 align:middle line:79% position:50% size:70%
our investments, where we do
our veg management, where we

00:51:25.882 --> 00:51:28.685 align:middle line:79% position:50% size:63%
put that first steel pole
and where we put our line

00:51:28.752 --> 00:51:33.023 align:middle line:79% position:50% size:70%
sensors, it also informs our
preemptive power shut off.

00:51:33.323 --> 00:51:36.326 align:middle line:79% position:50% size:73%
And that model in
the composite risk index that

00:51:36.393 --> 00:51:41.565 align:middle line:79% position:50% size:75%
it uses is the same used by NV
energy and by liberty and by

00:51:41.631 --> 00:51:42.999 align:middle line:85% position:50% size:63%
PG and E over the summit.

00:51:43.066 --> 00:51:46.203 align:middle line:79% position:50% size:63%
So it allows us to talk
in a common language when

00:51:46.269 --> 00:51:49.372 align:middle line:79% position:50% size:63%
we're sharing information
during events.

00:51:50.307 --> 00:51:51.641 align:middle line:85% position:50% size:45%
Next slide please.

00:51:52.576 --> 00:51:54.044 align:middle line:85% position:50% size:65%
Preemptive power shut off.

00:51:54.110 --> 00:51:58.582 align:middle line:79% position:50% size:70%
It's a local and appropriate
version of SPS.

00:51:59.115 --> 00:52:01.852 align:middle line:79% position:50% size:73%
And like you know we're never
going to reduce the risk.

00:52:01.918 --> 00:52:04.120 align:middle line:79% position:50% size:63%
And it's been shown there
are situations where we

00:52:04.187 --> 00:52:05.589 align:middle line:85% position:50% size:63%
just need to shut it off.

00:52:05.856 --> 00:52:08.391 align:middle line:79% position:50% size:70%
We'll almost certainly be
shut off at the transmission

00:52:08.458 --> 00:52:11.561 align:middle line:79% position:50% size:70%
level first, but we have
the ability to do it locally

00:52:11.628 --> 00:52:13.063 align:middle line:85% position:50% size:50%
and sectionalize it.

00:52:13.463 --> 00:52:14.631 align:middle line:85% position:50% size:45%
Next slide please.

00:52:15.398 --> 00:52:17.601 align:middle line:79% position:50% size:53%
What I kind of really
want to talk about is

00:52:17.667 --> 00:52:19.202 align:middle line:85% position:50% size:55%
the holistic approach.

00:52:19.269 --> 00:52:21.338 align:middle line:85% position:50% size:55%
SB 258 was very clear.

00:52:21.404 --> 00:52:22.806 align:middle line:85% position:50% size:80%
You have to deal with hardening.

00:52:22.873 --> 00:52:24.674 align:middle line:79% position:50% size:53%
You have to deal with
defensible space.

00:52:24.741 --> 00:52:29.312 align:middle line:79% position:50% size:65%
You have to deal with
turning a $20 billion fire

00:52:29.379 --> 00:52:31.047 align:middle line:85% position:50% size:60%
into a $10 billion fire.

00:52:31.114 --> 00:52:33.950 align:middle line:79% position:50% size:68%
Fire because you dealt with
fuels and you dealt with

00:52:34.184 --> 00:52:35.785 align:middle line:85% position:50% size:55%
the built environment.

00:52:35.852 --> 00:52:37.053 align:middle line:85% position:50% size:53%
We have partnerships.

00:52:37.120 --> 00:52:40.257 align:middle line:79% position:50% size:68%
Our local community did
a measure T through Truckee

00:52:40.323 --> 00:52:42.192 align:middle line:85% position:50% size:53%
Fire funded measures.

00:52:42.425 --> 00:52:46.596 align:middle line:79% position:50% size:68%
We had 150 acre parcel next
to a private property.

00:52:46.663 --> 00:52:49.766 align:middle line:79% position:50% size:63%
We got together and did
all 300 acres together in

00:52:49.833 --> 00:52:51.635 align:middle line:85% position:50% size:73%
collaboration with measure T.

00:52:52.035 --> 00:52:54.337 align:middle line:79% position:50% size:65%
You need that kind of
work, and we're very tight

00:52:54.404 --> 00:52:58.508 align:middle line:79% position:50% size:63%
with Cal Fire, with Tahoe
National Forest, Cal OES

00:52:58.575 --> 00:53:00.343 align:middle line:85% position:50% size:50%
and the local fires.

00:53:00.977 --> 00:53:04.614 align:middle line:79% position:50% size:58%
And then partnerships
NV energy does a weekly

00:53:04.681 --> 00:53:07.684 align:middle line:79% position:50% size:68%
briefing every Wednesday
morning during fire season.

00:53:07.751 --> 00:53:11.254 align:middle line:79% position:50% size:70%
And they lay out all
the risks and the forecasts.

00:53:11.321 --> 00:53:13.590 align:middle line:79% position:50% size:63%
Everybody talks about are
we in fast trip or not?

00:53:13.657 --> 00:53:17.761 align:middle line:79% position:50% size:80%
Are we potentially communicating
for De-energization.

00:53:17.994 --> 00:53:20.096 align:middle line:85% position:50% size:70%
And then final slide please.

00:53:21.631 --> 00:53:25.368 align:middle line:79% position:50% size:63%
In terms of opportunities
and risks, you know we're

00:53:25.435 --> 00:53:26.703 align:middle line:85% position:50% size:40%
a small utility.

00:53:26.770 --> 00:53:30.006 align:middle line:79% position:50% size:63%
Public power collaborates
through N c, p a and C,

00:53:30.073 --> 00:53:31.308 align:middle line:85% position:50% size:60%
m, u a and other groups.

00:53:31.374 --> 00:53:32.542 align:middle line:85% position:50% size:45%
We got to do that.

00:53:32.809 --> 00:53:35.779 align:middle line:79% position:50% size:58%
We need to address
the costs and the risks

00:53:35.845 --> 00:53:37.047 align:middle line:85% position:50% size:48%
that are out there.

00:53:37.747 --> 00:53:39.583 align:middle line:85% position:50% size:70%
We are funding out of rates.

00:53:39.983 --> 00:53:43.520 align:middle line:79% position:50% size:58%
Our our access to state
funds is very limited.

00:53:43.920 --> 00:53:48.325 align:middle line:79% position:50% size:75%
Unfunded state mandates really
hit us in what we can do.

00:53:48.558 --> 00:53:52.329 align:middle line:79% position:50% size:70%
The law making us pay
apprentice lineman wages for

00:53:52.762 --> 00:53:56.800 align:middle line:79% position:50% size:75%
veg management took 20% out of
what we could do every year.

00:53:57.267 --> 00:53:58.835 align:middle line:85% position:50% size:58%
And that's just a fact.

00:53:59.402 --> 00:54:02.572 align:middle line:79% position:50% size:58%
And then we are
demonstrating effective

00:54:02.772 --> 00:54:05.241 align:middle line:85% position:50% size:68%
and responsible mitigation.

00:54:05.308 --> 00:54:07.477 align:middle line:79% position:50% size:63%
We're doing it at
community wide because we

00:54:07.544 --> 00:54:09.112 align:middle line:85% position:50% size:65%
live in these communities.

00:54:09.412 --> 00:54:11.481 align:middle line:79% position:50% size:45%
Strict liability
must be addressed.

00:54:11.548 --> 00:54:13.917 align:middle line:79% position:50% size:68%
If you want to address
affordability, you're never

00:54:13.984 --> 00:54:15.819 align:middle line:85% position:50% size:75%
going to get there without it.

00:54:15.885 --> 00:54:17.454 align:middle line:85% position:50% size:58%
And we're here to help.

00:54:17.520 --> 00:54:21.458 align:middle line:79% position:50% size:73%
And, you know, local decision
making and collaboration has

00:54:21.524 --> 00:54:22.459 align:middle line:85% position:50% size:43%
worked very well.

00:54:22.525 --> 00:54:25.195 align:middle line:79% position:50% size:55%
And we appreciate your
support. Thank you.

00:54:26.529 --> 00:54:31.401 align:middle line:79% position:50% size:63%
>> Thank you. And last
Doctor Altintas. Welcome.

00:54:31.468 --> 00:54:34.604 align:middle line:79% position:50% size:78%
>> Hello. Good afternoon, chair
and members of the committee.

00:54:34.671 --> 00:54:36.306 align:middle line:79% position:50% size:43%
I can probably do
this. Thank you.

00:54:36.373 --> 00:54:37.607 align:middle line:85% position:50% size:55%
I'll have some slides.

00:54:37.674 --> 00:54:39.042 align:middle line:85% position:50% size:48%
Um with my remarks.

00:54:39.109 --> 00:54:41.811 align:middle line:79% position:50% size:65%
Today will be about
the interoperability layer

00:54:41.878 --> 00:54:45.582 align:middle line:79% position:50% size:65%
that we can build around
our solutions and, uh, our

00:54:45.649 --> 00:54:48.685 align:middle line:79% position:50% size:63%
investments in this space
and how that can enable

00:54:48.752 --> 00:54:51.154 align:middle line:79% position:50% size:70%
an innovation infrastructure
going forward.

00:54:51.688 --> 00:54:56.259 align:middle line:79% position:50% size:60%
Um, I'm a, I'm a, I lead
a lab called Societal

00:54:56.326 --> 00:54:58.762 align:middle line:79% position:50% size:60%
Computing and innovation
lab at UC San Diego.

00:54:59.329 --> 00:55:02.098 align:middle line:79% position:50% size:40%
And, um, somehow
it's not moving.

00:55:02.165 --> 00:55:03.533 align:middle line:85% position:50% size:80%
Maybe I'll give this one to you.

00:55:04.234 --> 00:55:06.302 align:middle line:85% position:50% size:63%
That was a good idea. Um.

00:55:06.369 --> 00:55:07.437 align:middle line:85% position:50% size:38%
Thank you. Yes.

00:55:07.704 --> 00:55:11.041 align:middle line:79% position:50% size:78%
The societal Computer Computing
and Innovation lab advances

00:55:11.107 --> 00:55:13.843 align:middle line:79% position:50% size:75%
scalable solutions for complex
societal challenges.

00:55:13.910 --> 00:55:15.345 align:middle line:85% position:50% size:55%
Which wildfire is one?

00:55:15.679 --> 00:55:18.081 align:middle line:79% position:50% size:60%
And I want to talk about
the Wi-Fi program,

00:55:18.148 --> 00:55:22.385 align:middle line:79% position:50% size:65%
and especially a success
story in the Wi-Fi program

00:55:22.452 --> 00:55:25.622 align:middle line:79% position:50% size:63%
to make a point of what's
possible when we actually

00:55:25.689 --> 00:55:29.459 align:middle line:79% position:50% size:65%
collectively work together
cross-sector innovations

00:55:29.526 --> 00:55:34.564 align:middle line:79% position:50% size:70%
and solutions and what can
enable this WiFi program had

00:55:36.066 --> 00:55:40.236 align:middle line:79% position:50% size:70%
in the past an investment
that was actually legislated

00:55:40.303 --> 00:55:43.940 align:middle line:79% position:50% size:60%
by Chair Petrie-norris
called Firis, and it was

00:55:44.007 --> 00:55:47.243 align:middle line:79% position:50% size:65%
wrapped in as a scientific
solution and a usable tool

00:55:47.310 --> 00:55:51.347 align:middle line:79% position:50% size:78%
infrastructure into a statewide
program for aircraft

00:55:51.881 --> 00:55:56.252 align:middle line:79% position:50% size:73%
intelligence integration with
these models and vast stores

00:55:56.319 --> 00:56:00.290 align:middle line:79% position:50% size:75%
since 2018, forward from
a Southern California pilot to

00:56:00.356 --> 00:56:01.424 align:middle line:85% position:50% size:40%
a state program.

00:56:01.758 --> 00:56:05.962 align:middle line:79% position:50% size:78%
And my team at the UC San Diego
works with Cal OES to model

00:56:06.029 --> 00:56:11.301 align:middle line:79% position:50% size:73%
every fire, every ignition in
California and these models,

00:56:11.367 --> 00:56:16.806 align:middle line:79% position:50% size:75%
which was, for instance, in 20
2025, we had 15,000 ignitions

00:56:16.873 --> 00:56:19.509 align:middle line:79% position:50% size:65%
alert that were evaluated
through the fusion center,

00:56:19.743 --> 00:56:23.747 align:middle line:79% position:50% size:78%
and about 1200 of these were
communicated through close with

00:56:23.813 --> 00:56:24.748 align:middle line:85% position:50% size:23%
everyone.

00:56:24.814 --> 00:56:27.517 align:middle line:79% position:50% size:80%
So we were able to, through this
program, democratize access

00:56:27.584 --> 00:56:31.087 align:middle line:79% position:50% size:70%
to these models and aircraft
intelligence together with

00:56:31.154 --> 00:56:33.523 align:middle line:79% position:50% size:65%
a communication structure,
a governance structure

00:56:33.590 --> 00:56:38.595 align:middle line:79% position:50% size:73%
around this for trustworthy
dissemination of information.

00:56:39.195 --> 00:56:40.730 align:middle line:85% position:50% size:65%
So what did we learn here?

00:56:40.797 --> 00:56:44.067 align:middle line:79% position:50% size:68%
We learned that we need to
enable collective capacity.

00:56:44.334 --> 00:56:48.972 align:middle line:79% position:50% size:70%
And we also enable a digital
infrastructure that enables

00:56:49.038 --> 00:56:52.442 align:middle line:79% position:50% size:68%
that collective capacity to
innovate together.

00:56:52.809 --> 00:56:55.478 align:middle line:79% position:50% size:65%
So Wildfire Science
and Technology Commons was

00:56:55.545 --> 00:56:59.849 align:middle line:79% position:50% size:73%
a congressional redirect
funded through the support of

00:57:00.083 --> 00:57:03.686 align:middle line:79% position:50% size:70%
Senator Padilla and a few of
our representatives in DC.

00:57:04.087 --> 00:57:05.388 align:middle line:85% position:50% size:78%
And it was funded through this.

00:57:05.455 --> 00:57:10.226 align:middle line:79% position:50% size:55%
It started it revamped
the platform again in

00:57:10.293 --> 00:57:11.694 align:middle line:85% position:50% size:58%
a couple of years time.

00:57:11.761 --> 00:57:16.132 align:middle line:79% position:50% size:80%
It became a program that now we
have a concept called California

00:57:16.199 --> 00:57:19.502 align:middle line:79% position:50% size:80%
Wildfire Commons that integrates
the state investments into

00:57:19.569 --> 00:57:23.306 align:middle line:79% position:50% size:70%
this interoperability layer,
so we can actually make sure

00:57:23.373 --> 00:57:27.043 align:middle line:79% position:50% size:75%
these investments can actually
be useful in innovations

00:57:27.110 --> 00:57:28.645 align:middle line:85% position:50% size:70%
and solutions going forward.

00:57:28.845 --> 00:57:32.348 align:middle line:79% position:50% size:75%
What would this mean for
the utility and energy safety.

00:57:32.715 --> 00:57:36.820 align:middle line:79% position:50% size:73%
Um this means actually we can
bring many of the state's

00:57:36.886 --> 00:57:41.224 align:middle line:79% position:50% size:68%
investments in wildfire
safety onto one platform to

00:57:41.925 --> 00:57:44.327 align:middle line:85% position:50% size:60%
federate, not integrate.

00:57:44.761 --> 00:57:48.331 align:middle line:79% position:50% size:70%
Uh, and we need, we can then
make them interoperable with

00:57:48.398 --> 00:57:51.501 align:middle line:79% position:50% size:78%
each other and we can make them
discoverable and accessible.

00:57:51.568 --> 00:57:54.804 align:middle line:79% position:50% size:65%
So many solutions can be
built to actually increase

00:57:54.871 --> 00:57:57.407 align:middle line:79% position:50% size:63%
the value and capacity of
these investments.

00:57:57.640 --> 00:58:01.444 align:middle line:79% position:50% size:78%
And downstream, the opportunity
is by making them shared,

00:58:01.511 --> 00:58:05.582 align:middle line:79% position:50% size:70%
we create innovations that
enable us in the resilience,

00:58:05.648 --> 00:58:08.852 align:middle line:79% position:50% size:80%
affordability, and science
and AI readiness of the utility,

00:58:08.918 --> 00:58:12.355 align:middle line:79% position:50% size:70%
safety infrastructure
and the collective learning.

00:58:12.989 --> 00:58:17.160 align:middle line:79% position:50% size:68%
So this approach also is
rooted in economical theory

00:58:17.227 --> 00:58:19.796 align:middle line:79% position:50% size:60%
of awards like the Nobel
Prize winning theory of

00:58:19.863 --> 00:58:24.200 align:middle line:79% position:50% size:73%
the Commons of Doctor Ostrom
on communities to sustainably

00:58:24.267 --> 00:58:26.202 align:middle line:85% position:50% size:73%
manage common pool resources.

00:58:26.269 --> 00:58:29.606 align:middle line:79% position:50% size:73%
So this actually goes from
this compliance to collective

00:58:29.672 --> 00:58:31.908 align:middle line:79% position:50% size:58%
learning and collective
capacity building.

00:58:32.475 --> 00:58:35.545 align:middle line:79% position:50% size:70%
So what we have today is can
we measure what utilities

00:58:35.612 --> 00:58:37.714 align:middle line:85% position:50% size:70%
are doing for the most part?

00:58:38.281 --> 00:58:40.583 align:middle line:79% position:50% size:50%
Yes, largely we are
able to measure what

00:58:40.650 --> 00:58:41.918 align:middle line:85% position:50% size:60%
the utilities are doing.

00:58:42.118 --> 00:58:44.787 align:middle line:79% position:50% size:53%
Can we independently
determine what works,

00:58:45.088 --> 00:58:47.023 align:middle line:85% position:50% size:60%
where and at what costs?

00:58:47.090 --> 00:58:50.727 align:middle line:79% position:50% size:60%
I think we have parts of
this in place, but this

00:58:50.793 --> 00:58:52.896 align:middle line:85% position:50% size:65%
needs comparable evidence.

00:58:52.962 --> 00:58:54.564 align:middle line:85% position:50% size:60%
This needs transparency.

00:58:54.764 --> 00:58:58.368 align:middle line:79% position:50% size:75%
And this needs also documented
assumptions, reproducible

00:58:58.434 --> 00:59:02.105 align:middle line:79% position:50% size:80%
methods which call out for these
more open platforms that we can

00:59:02.171 --> 00:59:03.706 align:middle line:85% position:50% size:73%
actually transparently share.

00:59:03.907 --> 00:59:07.810 align:middle line:79% position:50% size:75%
Not maybe everything in there,
but the methods and also

00:59:07.877 --> 00:59:10.847 align:middle line:79% position:50% size:73%
the products that come out of
these methods in ways we can

00:59:10.914 --> 00:59:12.148 align:middle line:85% position:50% size:55%
provide that evidence.

00:59:12.615 --> 00:59:18.121 align:middle line:79% position:50% size:70%
And what the gap is, is can
we then learn from these big

00:59:18.187 --> 00:59:21.057 align:middle line:79% position:50% size:70%
investments, especially with
larger utilities, and make

00:59:21.124 --> 00:59:24.160 align:middle line:79% position:50% size:78%
sure those investments actually
can be a learning opportunity

00:59:24.227 --> 00:59:26.729 align:middle line:79% position:50% size:73%
for the smaller public
utilities and help with their

00:59:26.796 --> 00:59:30.566 align:middle line:79% position:50% size:73%
affordability crisis and make
sure we can actually bring

00:59:30.633 --> 00:59:33.703 align:middle line:79% position:50% size:78%
these learnings into a platform
that others can learn from.

00:59:33.903 --> 00:59:36.172 align:middle line:79% position:50% size:48%
So this is very
common sense today.

00:59:36.472 --> 00:59:39.342 align:middle line:79% position:50% size:65%
Today's regime, which
would be absolutely useful

00:59:39.409 --> 00:59:44.647 align:middle line:79% position:50% size:63%
to carry the ball forward
and what is not a common.

00:59:44.714 --> 00:59:45.815 align:middle line:85% position:50% size:55%
Let's start with that.

00:59:46.015 --> 00:59:47.917 align:middle line:79% position:50% size:55%
It's not a centralized
repository.

00:59:47.984 --> 00:59:49.152 align:middle line:85% position:50% size:38%
It's federated.

00:59:49.385 --> 00:59:52.956 align:middle line:79% position:50% size:58%
It's also not a mandate
to push sensitive data.

00:59:53.189 --> 00:59:57.860 align:middle line:79% position:50% size:75%
It's actually a way to steward
data by the owners while they

00:59:57.927 --> 01:00:01.197 align:middle line:79% position:50% size:73%
retain ownership and control
of those operational systems,

01:00:01.264 --> 01:00:05.134 align:middle line:79% position:50% size:75%
but be able to share what can
be shared in a way they govern

01:00:05.201 --> 01:00:07.570 align:middle line:79% position:50% size:70%
and steward how that's being
shared.

01:00:08.171 --> 01:00:11.407 align:middle line:79% position:50% size:63%
And it's also not another
proprietary platform.

01:00:11.474 --> 01:00:14.610 align:middle line:79% position:50% size:73%
We are talking about a public
platform here that could be

01:00:14.677 --> 01:00:17.647 align:middle line:79% position:50% size:70%
actually maintained through
the collective and stewarded

01:00:17.714 --> 01:00:20.984 align:middle line:79% position:50% size:58%
through the collective,
extending the existing

01:00:21.050 --> 01:00:23.886 align:middle line:79% position:50% size:68%
California wildfire commons
by everyone's investments.

01:00:23.953 --> 01:00:29.025 align:middle line:79% position:50% size:75%
And if anyone can actually add
to it and, you know, leave

01:00:29.092 --> 01:00:33.262 align:middle line:79% position:50% size:68%
it one step further than
they found it, that's where

01:00:33.329 --> 01:00:37.333 align:middle line:79% position:50% size:73%
the commons become this model
becomes really important.

01:00:37.734 --> 01:00:40.837 align:middle line:79% position:50% size:75%
So we are talking about tiered
access, public approved

01:00:40.903 --> 01:00:43.473 align:middle line:79% position:50% size:75%
controlled access and how this
could be governed.

01:00:43.673 --> 01:00:47.944 align:middle line:79% position:50% size:78%
And we are really talking about
the type of technical capacity

01:00:48.011 --> 01:00:51.881 align:middle line:79% position:50% size:73%
we know how to build, both in
the state in research space

01:00:51.948 --> 01:00:54.484 align:middle line:85% position:50% size:75%
and also in private platforms.

01:00:55.485 --> 01:00:59.022 align:middle line:79% position:50% size:80%
So this federated digital assets
and capabilities governed

01:00:59.088 --> 01:01:02.692 align:middle line:79% position:50% size:80%
through a trust and governance
fabric, and making sure everyone

01:01:02.759 --> 01:01:06.929 align:middle line:79% position:50% size:80%
who wants to and can contribute,
can contribute in a safe, secure

01:01:07.230 --> 01:01:10.867 align:middle line:79% position:50% size:75%
and well stewarded way is what
we are talking about here.

01:01:11.067 --> 01:01:14.137 align:middle line:79% position:50% size:75%
So the five principles here in
that sense would be the public

01:01:14.203 --> 01:01:16.973 align:middle line:79% position:50% size:55%
interest, stewardship,
interoperability over

01:01:17.040 --> 01:01:21.344 align:middle line:79% position:50% size:73%
centralization, governance as
an enabler, not as a blocker.

01:01:22.211 --> 01:01:25.815 align:middle line:79% position:50% size:78%
Measured effectiveness and also
scientific accountability.

01:01:25.882 --> 01:01:28.284 align:middle line:79% position:50% size:60%
We can have all of these
in one platform if we

01:01:28.351 --> 01:01:31.120 align:middle line:79% position:50% size:70%
collectively work towards it
and put our heads together.

01:01:32.055 --> 01:01:35.625 align:middle line:79% position:50% size:75%
Lastly, I think there is
a phase path towards a commons

01:01:35.892 --> 01:01:39.695 align:middle line:79% position:50% size:75%
built on the existing wildfire
science and Technology commons

01:01:39.762 --> 01:01:42.965 align:middle line:79% position:50% size:68%
and the California Wildfire
Commons concept.

01:01:43.466 --> 01:01:46.102 align:middle line:79% position:50% size:60%
We can start with taking
inventory of what exists

01:01:46.169 --> 01:01:50.006 align:middle line:79% position:50% size:70%
and create, again, pilots of
what this would look like

01:01:50.073 --> 01:01:55.478 align:middle line:79% position:50% size:75%
in a stakeholder governance
fashion and define access tier

01:01:55.545 --> 01:01:59.382 align:middle line:79% position:50% size:73%
standards and evaluate that
progress and launch a version

01:01:59.449 --> 01:02:02.852 align:middle line:79% position:50% size:75%
of a federated commons that we
can learn from and expand over

01:02:02.919 --> 01:02:06.055 align:middle line:79% position:50% size:75%
time, which is exactly what
happened in the fires program.

01:02:06.122 --> 01:02:08.524 align:middle line:79% position:50% size:58%
We are still learning,
we are still expanding,

01:02:08.591 --> 01:02:10.927 align:middle line:79% position:50% size:58%
but that underlying
infrastructure and that

01:02:10.993 --> 01:02:14.130 align:middle line:79% position:50% size:68%
democratization approach of
everyone having access to

01:02:14.330 --> 01:02:16.332 align:middle line:85% position:50% size:70%
technology and models holds.

01:02:16.766 --> 01:02:17.767 align:middle line:85% position:50% size:50%
Thank you very much.

01:02:19.068 --> 01:02:20.303 align:middle line:85% position:50% size:60%
>> Thank you. All right.

01:02:20.369 --> 01:02:23.306 align:middle line:79% position:50% size:73%
We'll go ahead and open it up
for some some questions now.

01:02:23.372 --> 01:02:26.476 align:middle line:79% position:50% size:58%
I'm just going to start
with one and then open

01:02:26.542 --> 01:02:27.477 align:middle line:85% position:50% size:60%
it up for my colleagues.

01:02:27.543 --> 01:02:31.647 align:middle line:79% position:50% size:68%
So I think I just want to,
um, before we dive into any

01:02:31.714 --> 01:02:34.050 align:middle line:79% position:50% size:63%
more questions, just make
sure that we walk away.

01:02:34.117 --> 01:02:36.919 align:middle line:79% position:50% size:53%
I think with a shared
understanding of what

01:02:36.986 --> 01:02:38.087 align:middle line:85% position:50% size:48%
success looks like.

01:02:38.354 --> 01:02:42.525 align:middle line:79% position:50% size:73%
Um, you know, what goals are
we shooting for and how do we

01:02:42.592 --> 01:02:43.759 align:middle line:85% position:50% size:70%
know if we're getting there?

01:02:44.093 --> 01:02:47.597 align:middle line:79% position:50% size:75%
Um, I think a couple of, you
know, pulling on a thread from

01:02:47.797 --> 01:02:50.366 align:middle line:79% position:50% size:75%
a couple of comments that were
made in your opening remarks.

01:02:50.666 --> 01:02:52.401 align:middle line:85% position:50% size:35%
Um, I know Mr.

01:02:52.468 --> 01:02:56.973 align:middle line:79% position:50% size:75%
Kaiser, Director Kaiser, you
said that it's not a realistic

01:02:57.039 --> 01:03:02.945 align:middle line:79% position:50% size:75%
goal for us to get wildfires
to zero, but it is a realistic

01:03:03.012 --> 01:03:06.249 align:middle line:79% position:50% size:75%
and it should be the goal of
California to get catastrophic

01:03:06.716 --> 01:03:08.117 align:middle line:85% position:50% size:45%
wildfires to zero.

01:03:08.584 --> 01:03:13.356 align:middle line:79% position:50% size:68%
Um, Miss Anderson, I think
I heard you, uh, echo that.

01:03:13.422 --> 01:03:17.093 align:middle line:79% position:50% size:65%
Um. So is what I just said
is that is that our goal?

01:03:17.160 --> 01:03:18.127 align:middle line:85% position:50% size:58%
Is that our North Star.

01:03:18.194 --> 01:03:19.228 align:middle line:85% position:50% size:60%
And does everyone agree?

01:03:20.530 --> 01:03:23.666 align:middle line:79% position:50% size:68%
Got it. Um, okay, so then
follow up question and I'll

01:03:23.733 --> 01:03:28.504 align:middle line:79% position:50% size:68%
start with you is how do we
how do we measure if we're

01:03:28.571 --> 01:03:32.175 align:middle line:79% position:50% size:60%
actually starting to get
there beyond ignitions?

01:03:32.241 --> 01:03:36.546 align:middle line:79% position:50% size:80%
Um, you know, is there any other
metric that you at the Office

01:03:36.612 --> 01:03:38.915 align:middle line:79% position:50% size:78%
of Energy Infrastructure Safety
are tracking?

01:03:39.348 --> 01:03:43.619 align:middle line:79% position:50% size:78%
Um, as part of how you are
evaluating whether or not these

01:03:43.686 --> 01:03:46.923 align:middle line:79% position:50% size:75%
investments and these safety
plans are actually delivering.

01:03:48.558 --> 01:03:50.459 align:middle line:79% position:50% size:58%
>> Yeah. Thank you very
much for that question.

01:03:50.526 --> 01:03:54.564 align:middle line:79% position:50% size:65%
And I think this continues
to be something that we

01:03:54.630 --> 01:03:55.998 align:middle line:85% position:50% size:60%
are actively working on.

01:03:56.065 --> 01:03:59.569 align:middle line:79% position:50% size:63%
What is the right metric
short of the fire itself.

01:03:59.902 --> 01:04:02.438 align:middle line:79% position:50% size:55%
Um, so we do have
detailed tracking that

01:04:02.505 --> 01:04:04.040 align:middle line:85% position:50% size:53%
we perform currently.

01:04:04.106 --> 01:04:07.343 align:middle line:79% position:50% size:70%
So utilities submit wildfire
mitigation plans to us.

01:04:07.643 --> 01:04:11.113 align:middle line:79% position:50% size:80%
They make commitments in those
plans for what their targets are

01:04:11.314 --> 01:04:14.917 align:middle line:79% position:50% size:75%
that are customized to their
specific territories and their

01:04:14.984 --> 01:04:16.719 align:middle line:85% position:50% size:63%
specific strategic goals.

01:04:17.053 --> 01:04:19.589 align:middle line:79% position:50% size:68%
We track each one of those,
and we send inspectors out

01:04:19.655 --> 01:04:22.959 align:middle line:79% position:50% size:75%
into the field, and we measure
whether or not they are

01:04:23.159 --> 01:04:26.229 align:middle line:79% position:50% size:75%
meeting those commitments
that they put forward in their

01:04:26.295 --> 01:04:27.630 align:middle line:85% position:50% size:63%
wildfire mitigation plan.

01:04:28.130 --> 01:04:31.601 align:middle line:79% position:50% size:70%
So that is that is a current
practice, and that's one we

01:04:31.667 --> 01:04:32.802 align:middle line:85% position:50% size:43%
plan to continue.

01:04:33.069 --> 01:04:36.906 align:middle line:79% position:50% size:73%
Um, but I think that there is
room for, you know, growth

01:04:36.973 --> 01:04:40.309 align:middle line:79% position:50% size:70%
and improvement in that area
as well to better relate,

01:04:40.509 --> 01:04:45.748 align:middle line:79% position:50% size:68%
um, the effectiveness of
those individual actions to

01:04:45.815 --> 01:04:47.683 align:middle line:79% position:50% size:65%
the overall amount of risk
reduction.

01:04:47.917 --> 01:04:50.253 align:middle line:79% position:50% size:55%
Um, you know, I think
there's, there's maybe

01:04:50.319 --> 01:04:55.891 align:middle line:79% position:50% size:78%
an underappreciated, um, factor
here, which is that there's

01:04:55.958 --> 01:04:58.761 align:middle line:79% position:50% size:78%
still a lot we don't understand
about wildfire risk.

01:04:58.961 --> 01:05:03.733 align:middle line:79% position:50% size:70%
Um, risk modeling, you know,
is, is, is still a nascent

01:05:03.799 --> 01:05:05.534 align:middle line:85% position:50% size:70%
sort of practice in science.

01:05:05.735 --> 01:05:08.638 align:middle line:79% position:50% size:55%
And so we have to be
a little bit humble as

01:05:08.704 --> 01:05:11.974 align:middle line:79% position:50% size:65%
we move forward about how
certain are the signals we

01:05:12.041 --> 01:05:13.542 align:middle line:85% position:50% size:63%
get from our risk models.

01:05:13.609 --> 01:05:16.379 align:middle line:79% position:50% size:70%
You know, how sure are we
that something that we think

01:05:16.445 --> 01:05:18.781 align:middle line:85% position:50% size:73%
reduced risk, um, really did.

01:05:18.848 --> 01:05:22.051 align:middle line:79% position:50% size:53%
And so I think that's
an area of ongoing.

01:05:22.118 --> 01:05:24.854 align:middle line:79% position:50% size:73%
I think hopefully
collaborative research across

01:05:24.920 --> 01:05:28.257 align:middle line:79% position:50% size:68%
utilities and with academia
to try to figure out.

01:05:28.324 --> 01:05:32.528 align:middle line:79% position:50% size:68%
And one thing that I think,
uh, really proud of from

01:05:32.595 --> 01:05:35.264 align:middle line:79% position:50% size:68%
our organization is that we
have tried to sponsor those

01:05:35.331 --> 01:05:37.733 align:middle line:79% position:50% size:63%
kinds of collaborative,
collaborative activities.

01:05:37.800 --> 01:05:40.569 align:middle line:79% position:50% size:63%
We've asked utilities on
numerous occasions to get

01:05:40.636 --> 01:05:43.773 align:middle line:79% position:50% size:68%
together and do joint white
papers on things like

01:05:44.106 --> 01:05:46.676 align:middle line:79% position:50% size:73%
the effectiveness of enhanced
clearances in vegetation

01:05:46.742 --> 01:05:50.413 align:middle line:79% position:50% size:73%
management, the effectiveness
of covered conductors in

01:05:50.479 --> 01:05:51.681 align:middle line:85% position:50% size:48%
reducing fire risk.

01:05:51.747 --> 01:05:55.217 align:middle line:79% position:50% size:65%
So definitely encourage
that sort of collaborative

01:05:55.284 --> 01:05:58.120 align:middle line:79% position:50% size:68%
approach to coming up with
shared understandings about

01:05:58.187 --> 01:05:59.355 align:middle line:85% position:50% size:70%
how to measure these things.

01:06:00.923 --> 01:06:03.959 align:middle line:79% position:50% size:78%
>> I have a follow up question,
but before I ask you any other.

01:06:04.026 --> 01:06:07.863 align:middle line:79% position:50% size:63%
Any comments on that from
any of our panelists?

01:06:09.765 --> 01:06:11.067 align:middle line:85% position:50% size:50%
Mr.. Doctor Skinner.

01:06:11.867 --> 01:06:14.403 align:middle line:79% position:50% size:73%
>> Thank you. I think really,
as we're looking at leading

01:06:14.470 --> 01:06:17.239 align:middle line:79% position:50% size:75%
indicators versus the lagging,
because the lagging is either

01:06:17.306 --> 01:06:20.309 align:middle line:79% position:50% size:80%
an ignition that could have been
or ended up in an ignition.

01:06:20.743 --> 01:06:22.411 align:middle line:79% position:50% size:63%
One of the things that we
look at is how good is

01:06:22.478 --> 01:06:25.881 align:middle line:79% position:50% size:73%
the weather forecasting
accuracy down to the circuit?

01:06:25.948 --> 01:06:28.250 align:middle line:79% position:50% size:63%
Because if the better
the forecasting accuracy,

01:06:28.317 --> 01:06:31.454 align:middle line:79% position:50% size:60%
and I know sometimes our
utilities have even done

01:06:31.520 --> 01:06:34.156 align:middle line:79% position:50% size:70%
more accurate, longer term
forecasting than the weather

01:06:34.223 --> 01:06:38.060 align:middle line:79% position:50% size:63%
service has been able to,
then we know, okay, is it

01:06:38.127 --> 01:06:39.929 align:middle line:79% position:50% size:58%
built now to be able to
withstand that wind?

01:06:39.995 --> 01:06:42.465 align:middle line:79% position:50% size:65%
Do we turn on fast trip as
a protective measure just

01:06:42.531 --> 01:06:45.401 align:middle line:79% position:50% size:73%
in case, or do we do public
safety power shut off because

01:06:45.468 --> 01:06:48.437 align:middle line:79% position:50% size:68%
we're seeing winds that are
well exceeding how well

01:06:48.504 --> 01:06:50.973 align:middle line:79% position:50% size:70%
the system has been designed
to handle those winds?

01:06:51.640 --> 01:06:54.944 align:middle line:79% position:50% size:63%
Um, I think also is where
do things seem to peak?

01:06:55.311 --> 01:06:57.413 align:middle line:79% position:50% size:58%
Where are things moving
slowly versus where are

01:06:57.480 --> 01:06:58.414 align:middle line:85% position:50% size:50%
they getting sticky?

01:06:58.481 --> 01:07:00.583 align:middle line:79% position:50% size:63%
When we look at, you
know, public safety power

01:07:00.649 --> 01:07:02.651 align:middle line:79% position:50% size:60%
shutoffs, I know as it's
part of the background.

01:07:03.085 --> 01:07:07.356 align:middle line:79% position:50% size:78%
Our report was cited last year,
and one of the things that

01:07:07.423 --> 01:07:10.159 align:middle line:79% position:50% size:75%
unfortunately has still stayed
stuck for Edison a little bit

01:07:10.226 --> 01:07:14.397 align:middle line:79% position:50% size:78%
is that public safety power
shutoff, um, forecast accuracy.

01:07:14.864 --> 01:07:17.767 align:middle line:79% position:50% size:75%
Um, we've looked specifically
at the notification time frame

01:07:17.833 --> 01:07:20.703 align:middle line:79% position:50% size:75%
so that the most vulnerable
customers have a chance to get

01:07:20.770 --> 01:07:21.971 align:middle line:85% position:50% size:68%
somewhere with electricity.

01:07:22.271 --> 01:07:24.140 align:middle line:79% position:50% size:58%
Um, that just seems to
have been an issue that

01:07:24.206 --> 01:07:25.408 align:middle line:85% position:50% size:55%
sometimes we're stuck.

01:07:25.474 --> 01:07:28.677 align:middle line:79% position:50% size:75%
PGE was stuck there for years
and finally has gotten better.

01:07:29.078 --> 01:07:31.847 align:middle line:79% position:50% size:73%
Um, try and understand why do
we not have enough weather

01:07:31.914 --> 01:07:33.682 align:middle line:85% position:50% size:78%
sensors in the right locations?

01:07:33.749 --> 01:07:35.851 align:middle line:79% position:50% size:60%
Do we not have the right
computer models?

01:07:36.085 --> 01:07:38.254 align:middle line:79% position:50% size:70%
Um, things that can help
understand because certainly

01:07:38.320 --> 01:07:41.056 align:middle line:79% position:50% size:60%
the coastal geography of
California is incredibly

01:07:41.123 --> 01:07:43.159 align:middle line:79% position:50% size:70%
hard to model and figure
out what the wind speeds are

01:07:43.225 --> 01:07:44.560 align:middle line:85% position:50% size:68%
going to be in those areas.

01:07:44.627 --> 01:07:46.529 align:middle line:79% position:50% size:60%
And that's where we tend
to have some of the most

01:07:46.595 --> 01:07:48.197 align:middle line:85% position:50% size:65%
catastrophic fires ignite.

01:07:49.532 --> 01:07:52.001 align:middle line:79% position:50% size:70%
Um, and then I think lastly,
throughout all of this is

01:07:52.067 --> 01:07:54.970 align:middle line:79% position:50% size:70%
are we seeing rates starting
to at least flatten?

01:07:55.438 --> 01:07:58.240 align:middle line:79% position:50% size:68%
I'm not so optimistic at
this point to say decrease.

01:07:58.307 --> 01:08:00.843 align:middle line:79% position:50% size:65%
We'd love to get there,
but if we can at least see

01:08:00.910 --> 01:08:03.913 align:middle line:79% position:50% size:75%
ourselves going from 9 billion
this year in investment,

01:08:04.313 --> 01:08:06.982 align:middle line:79% position:50% size:70%
not to 18,000,000,000 in 2
years, because we've figured

01:08:07.049 --> 01:08:09.885 align:middle line:79% position:50% size:70%
out the right mitigations at
the right pace and the right

01:08:09.952 --> 01:08:10.886 align:middle line:85% position:50% size:18%
places.

01:08:10.953 --> 01:08:14.423 align:middle line:79% position:50% size:75%
So maybe it's only 12,000,002,
12,000,000,000 in 2 years.

01:08:14.790 --> 01:08:16.892 align:middle line:79% position:50% size:58%
And then maybe we start
slowly coming down once

01:08:16.959 --> 01:08:18.227 align:middle line:85% position:50% size:78%
the infrastructure is hardened.

01:08:20.629 --> 01:08:25.234 align:middle line:79% position:50% size:80%
>> And I would just add, picking
up on the kind of affordability

01:08:25.568 --> 01:08:27.837 align:middle line:85% position:50% size:63%
part of the answer there.

01:08:28.237 --> 01:08:34.477 align:middle line:79% position:50% size:65%
Um, we got, uh, reviewed
by S&P after the LA fires.

01:08:34.543 --> 01:08:37.980 align:middle line:79% position:50% size:68%
We were one of 7POUS
and a high fire threat area

01:08:38.047 --> 01:08:39.982 align:middle line:85% position:50% size:70%
that got to go through that.

01:08:40.583 --> 01:08:44.320 align:middle line:79% position:50% size:75%
And while their response was,
wow, you're doing a great job.

01:08:44.386 --> 01:08:45.654 align:middle line:85% position:50% size:45%
And this is great.

01:08:45.721 --> 01:08:49.692 align:middle line:79% position:50% size:65%
We had X miles in the high
fire threat and it was X

01:08:49.758 --> 01:08:51.527 align:middle line:85% position:50% size:58%
years to get rid of it.

01:08:51.594 --> 01:08:56.665 align:middle line:79% position:50% size:78%
And they downgraded us, um,
because we did such a good job.

01:08:56.732 --> 01:09:00.336 align:middle line:79% position:50% size:73%
They moved us from a negative
outlook to stable,

01:09:00.603 --> 01:09:04.039 align:middle line:79% position:50% size:80%
but everything we do in
the future now costs more money.

01:09:04.440 --> 01:09:10.579 align:middle line:79% position:50% size:80%
So what's one measure of success
that the rating agencies believe

01:09:10.646 --> 01:09:14.116 align:middle line:79% position:50% size:70%
that the risk reduction is
real, and they're willing to

01:09:14.183 --> 01:09:17.953 align:middle line:79% position:50% size:80%
then give the corresponding
rating and the financial benefit

01:09:18.020 --> 01:09:20.890 align:middle line:79% position:50% size:73%
that needs to come with these
investments.

01:09:21.323 --> 01:09:24.026 align:middle line:79% position:50% size:53%
Um, insurance is
the exact same thing.

01:09:24.093 --> 01:09:27.897 align:middle line:79% position:50% size:80%
Another benefit of success is we
could actually get insurance.

01:09:27.963 --> 01:09:31.133 align:middle line:79% position:50% size:78%
That's not, you know, a million
bucks for a million bucks.

01:09:31.567 --> 01:09:35.504 align:middle line:79% position:50% size:60%
Um, and if we saw those
markets actually engage,

01:09:35.571 --> 01:09:36.805 align:middle line:85% position:50% size:60%
you would try to see it.

01:09:36.872 --> 01:09:40.476 align:middle line:79% position:50% size:75%
So the comment that the models
need to get better.

01:09:40.876 --> 01:09:44.513 align:middle line:79% position:50% size:50%
I agree, but they're
ten years into them.

01:09:44.580 --> 01:09:46.515 align:middle line:85% position:50% size:73%
They're pretty sophisticated.

01:09:46.582 --> 01:09:50.686 align:middle line:79% position:50% size:63%
And at some point we need
to say, I spent this many

01:09:50.753 --> 01:09:53.889 align:middle line:79% position:50% size:63%
million dollars, I got
this much risk reduction.

01:09:53.956 --> 01:09:58.861 align:middle line:79% position:50% size:68%
And please adjust my
bonding and insurance rates

01:09:58.928 --> 01:10:00.829 align:middle line:85% position:50% size:70%
effectively to reflect that.

01:10:00.896 --> 01:10:04.233 align:middle line:79% position:50% size:65%
If that started to happen,
then we could bond against

01:10:04.300 --> 01:10:06.769 align:middle line:79% position:50% size:65%
that future cost reduction
and we could raise money

01:10:06.835 --> 01:10:09.605 align:middle line:79% position:50% size:68%
and all kinds of markets
could come in and serve us.

01:10:09.838 --> 01:10:12.541 align:middle line:79% position:50% size:55%
But that doesn't exist
in California today.

01:10:13.442 --> 01:10:14.743 align:middle line:79% position:50% size:65%
>> All right. Thank you.
I'm going to have a couple

01:10:14.810 --> 01:10:15.811 align:middle line:85% position:50% size:63%
follow ups based on that.

01:10:15.878 --> 01:10:20.783 align:middle line:79% position:50% size:43%
But just coming
back to, uh, Mr..

01:10:20.849 --> 01:10:22.418 align:middle line:85% position:50% size:65%
Or sorry, Director Kaiser.

01:10:23.052 --> 01:10:27.556 align:middle line:79% position:50% size:73%
Um, so I think one thing that
is incredibly important for

01:10:27.623 --> 01:10:30.893 align:middle line:79% position:50% size:68%
us as policy makers and for
the constituents that we

01:10:30.960 --> 01:10:34.930 align:middle line:79% position:50% size:63%
represent, is that these
wildfire mitigation plans

01:10:34.997 --> 01:10:40.135 align:middle line:79% position:50% size:73%
and the entire process that
we've designed around this is

01:10:40.202 --> 01:10:43.739 align:middle line:85% position:50% size:75%
real and that it's meaningful.

01:10:44.006 --> 01:10:48.477 align:middle line:79% position:50% size:65%
And so not just, you know,
some spectacular exercise

01:10:48.544 --> 01:10:49.578 align:middle line:85% position:50% size:55%
in bureaucracy, right?

01:10:49.645 --> 01:10:52.581 align:middle line:79% position:50% size:65%
So I have a couple of
questions along that vein.

01:10:52.648 --> 01:10:55.584 align:middle line:85% position:50% size:45%
So, um, Let's see.

01:10:55.784 --> 01:10:58.354 align:middle line:79% position:50% size:75%
All right. You approved. Okay.
Energy safety. You approved.

01:10:58.420 --> 01:11:02.491 align:middle line:79% position:50% size:63%
CES 2026 to 2028 Wildfire
Mitigation Plan.

01:11:02.558 --> 01:11:06.695 align:middle line:79% position:50% size:78%
While noting that said plan did
not include any lessons learned

01:11:06.762 --> 01:11:08.897 align:middle line:85% position:50% size:70%
from the January 2025 fires.

01:11:09.298 --> 01:11:11.800 align:middle line:79% position:50% size:55%
Um, that struck all of
us as a little odd.

01:11:12.234 --> 01:11:17.506 align:middle line:79% position:50% size:80%
Um, should a plan be achievable
after a catastrophic ignition in

01:11:17.573 --> 01:11:22.044 align:middle line:79% position:50% size:75%
the absence of lessons learned
and an after action analysis?

01:11:24.113 --> 01:11:26.415 align:middle line:79% position:50% size:58%
>> Yeah. Thank you very
much for that question.

01:11:26.482 --> 01:11:30.285 align:middle line:79% position:50% size:80%
Um, so one of the challenges,
one of the logistical challenges

01:11:30.352 --> 01:11:33.889 align:middle line:79% position:50% size:78%
that we face with when there's
an actual catastrophic wildfire

01:11:33.956 --> 01:11:38.093 align:middle line:79% position:50% size:80%
event and what energy safety's
response to that event might be,

01:11:38.360 --> 01:11:42.464 align:middle line:79% position:50% size:80%
is that there can be significant
timing lag.

01:11:42.731 --> 01:11:47.036 align:middle line:79% position:50% size:78%
So normally we are approving
a plan and then a fire happens,

01:11:47.102 --> 01:11:48.604 align:middle line:85% position:50% size:75%
you know, after that approval.

01:11:48.837 --> 01:11:52.374 align:middle line:79% position:50% size:78%
Um, and, and we don't
necessarily know what the cause

01:11:52.441 --> 01:11:54.510 align:middle line:85% position:50% size:60%
of that fire was before.

01:11:54.576 --> 01:11:57.046 align:middle line:79% position:50% size:53%
We have another plan
before us to approve.

01:11:57.112 --> 01:12:02.551 align:middle line:79% position:50% size:75%
Now that could change with 254
SB 254 changes the frequency

01:12:02.618 --> 01:12:04.219 align:middle line:85% position:50% size:65%
that utilities file plans.

01:12:04.286 --> 01:12:06.989 align:middle line:79% position:50% size:80%
So it used to be, you know,
every year and now it's going to

01:12:07.056 --> 01:12:10.192 align:middle line:79% position:50% size:75%
be every four years coincident
with the filing of the general

01:12:10.259 --> 01:12:11.527 align:middle line:85% position:50% size:55%
rate case at the CPUc.

01:12:11.593 --> 01:12:13.262 align:middle line:85% position:50% size:70%
So that could change things.

01:12:13.328 --> 01:12:16.932 align:middle line:79% position:50% size:60%
But historically, it has
been very challenging to

01:12:17.166 --> 01:12:20.636 align:middle line:79% position:50% size:63%
get accurate information
about exactly what caused

01:12:20.703 --> 01:12:23.505 align:middle line:85% position:50% size:68%
a fire in a timely fashion.

01:12:23.572 --> 01:12:26.008 align:middle line:79% position:50% size:65%
So that really affects our
ability to incorporate

01:12:26.075 --> 01:12:30.646 align:middle line:79% position:50% size:75%
information into the next
year's consideration of a WMP.

01:12:32.047 --> 01:12:36.251 align:middle line:79% position:50% size:73%
Even when we have that
information, it, um, there is

01:12:36.318 --> 01:12:38.087 align:middle line:85% position:50% size:65%
kind of a question for us.

01:12:38.153 --> 01:12:44.993 align:middle line:79% position:50% size:80%
Um, you know, when, when you
deny a plan, um, now the utility

01:12:45.060 --> 01:12:47.696 align:middle line:79% position:50% size:68%
has no, you no longer have
traction on that utility in

01:12:47.763 --> 01:12:49.932 align:middle line:79% position:50% size:70%
terms of when you, when you,
when they've approved, when

01:12:49.998 --> 01:12:52.134 align:middle line:79% position:50% size:78%
you've approved a plan, you are
following up on that plan.

01:12:52.201 --> 01:12:54.069 align:middle line:79% position:50% size:63%
You're sending inspectors
out into the field.

01:12:54.136 --> 01:12:56.705 align:middle line:79% position:50% size:78%
You're checking to see whether
they're making progress against

01:12:56.772 --> 01:12:58.240 align:middle line:85% position:50% size:78%
the commitments that they made.

01:12:58.607 --> 01:13:01.443 align:middle line:79% position:50% size:75%
If there's no plan to approve,
you have nothing to check.

01:13:01.944 --> 01:13:05.647 align:middle line:79% position:50% size:75%
So in some ways, not approving
a plan doesn't necessarily

01:13:06.315 --> 01:13:09.985 align:middle line:79% position:50% size:65%
lead to improving behavior
and improving performance.

01:13:10.052 --> 01:13:11.420 align:middle line:85% position:50% size:68%
And that is our North Star.

01:13:11.487 --> 01:13:12.955 align:middle line:85% position:50% size:78%
That is what we are focused on.

01:13:13.889 --> 01:13:17.793 align:middle line:79% position:50% size:78%
So I hope that provides some
context into the considerations

01:13:17.860 --> 01:13:20.629 align:middle line:85% position:50% size:68%
that go into that decision.

01:13:20.696 --> 01:13:23.565 align:middle line:79% position:50% size:73%
I guess one thing I would add
is that it's also, you know,

01:13:23.632 --> 01:13:27.836 align:middle line:79% position:50% size:73%
a fact specific decision like
we wouldn't by categorically

01:13:27.903 --> 01:13:31.573 align:middle line:79% position:50% size:65%
make a denial or approval
decision just based on one

01:13:31.640 --> 01:13:32.574 align:middle line:85% position:50% size:43%
particular event.

01:13:32.641 --> 01:13:34.476 align:middle line:79% position:50% size:65%
So we're looking at
the totality of everything

01:13:34.543 --> 01:13:35.844 align:middle line:85% position:50% size:65%
that the utility is doing.

01:13:36.245 --> 01:13:40.015 align:middle line:79% position:50% size:68%
Um, both, you know, going
forward and not not looking

01:13:40.082 --> 01:13:42.851 align:middle line:79% position:50% size:68%
back, we're looking at what
are they planning to do to

01:13:42.918 --> 01:13:44.987 align:middle line:79% position:50% size:63%
make the system more safe
in the future.

01:13:45.053 --> 01:13:48.290 align:middle line:79% position:50% size:68%
And we look at the totality
of the facts in that plan

01:13:48.357 --> 01:13:49.358 align:middle line:85% position:50% size:35%
approval year.

01:13:51.360 --> 01:13:53.529 align:middle line:79% position:50% size:55%
>> So just a couple
reactions and I would.

01:13:53.595 --> 01:13:57.633 align:middle line:79% position:50% size:78%
I'll first say that yes, that
is, I think useful context for,

01:13:57.699 --> 01:14:00.769 align:middle line:79% position:50% size:65%
um, helping me understand,
I guess, why we would have

01:14:01.403 --> 01:14:04.239 align:middle line:79% position:50% size:78%
an approved wildfire mitigation
plan while at the same time,

01:14:04.606 --> 01:14:07.342 align:middle line:79% position:50% size:73%
you know, comment noting that
there was not lessons learned

01:14:07.409 --> 01:14:12.147 align:middle line:79% position:50% size:78%
incorporated, I think, um,
again, sort of just big picture

01:14:12.214 --> 01:14:13.148 align:middle line:85% position:50% size:20%
context.

01:14:13.215 --> 01:14:16.518 align:middle line:79% position:50% size:63%
I think we've got to make
sure that the, you know,

01:14:16.585 --> 01:14:18.854 align:middle line:79% position:50% size:73%
the constructs that we design
as part of the legislative

01:14:18.921 --> 01:14:21.790 align:middle line:79% position:50% size:70%
process and the regulatory
process that they still pass

01:14:21.857 --> 01:14:23.425 align:middle line:85% position:50% size:73%
the common sense test, right?

01:14:23.492 --> 01:14:26.195 align:middle line:79% position:50% size:65%
And if we let these things
out into the wild and you

01:14:26.261 --> 01:14:28.730 align:middle line:79% position:50% size:68%
kind of look at how they're
unfolding and they don't,

01:14:29.097 --> 01:14:31.533 align:middle line:79% position:50% size:65%
there's an opportunity for
us to refine that and make

01:14:31.600 --> 01:14:33.468 align:middle line:85% position:50% size:53%
it make sense, right?

01:14:33.535 --> 01:14:34.770 align:middle line:79% position:50% size:55%
And make it make sense
for normal people.

01:14:34.837 --> 01:14:36.572 align:middle line:79% position:50% size:48%
So I'll sort of put
that out there.

01:14:36.638 --> 01:14:39.575 align:middle line:79% position:50% size:70%
I think as both a follow up,
you know, for, for my team

01:14:39.641 --> 01:14:43.345 align:middle line:79% position:50% size:70%
and I, but also as an offer,
um, for us to, to make sure

01:14:43.412 --> 01:14:47.382 align:middle line:79% position:50% size:78%
that if there's timing issues
or, oh gosh, we have to approve

01:14:47.449 --> 01:14:49.718 align:middle line:79% position:50% size:70%
all of these plans because
otherwise we're worried that

01:14:50.085 --> 01:14:51.653 align:middle line:85% position:50% size:65%
the denying them is worse.

01:14:51.720 --> 01:14:55.257 align:middle line:79% position:50% size:80%
Like, let's figure out some
interim state or something where

01:14:55.324 --> 01:14:59.294 align:middle line:79% position:50% size:70%
you'd still have oversight,
but perhaps it's a you're in

01:14:59.361 --> 01:15:00.629 align:middle line:85% position:50% size:80%
a revision process or something.

01:15:00.696 --> 01:15:02.731 align:middle line:79% position:50% size:58%
I think we can can
solve for some of that.

01:15:03.065 --> 01:15:05.868 align:middle line:79% position:50% size:63%
Um, because in a similar,
in a similar thing, that

01:15:05.934 --> 01:15:09.338 align:middle line:79% position:50% size:60%
sort of, at least on its
face doesn't pass.

01:15:09.404 --> 01:15:13.408 align:middle line:79% position:50% size:65%
The common sense question
is, and maybe I'm not sure

01:15:13.475 --> 01:15:15.711 align:middle line:79% position:50% size:70%
that we understood this
correctly, so please provide

01:15:15.777 --> 01:15:16.745 align:middle line:85% position:50% size:60%
context on this as well.

01:15:16.812 --> 01:15:21.416 align:middle line:79% position:50% size:55%
So um, SE2024 safety
culture scores rose to

01:15:21.483 --> 01:15:23.752 align:middle line:85% position:50% size:60%
their highest level yet.

01:15:23.819 --> 01:15:25.654 align:middle line:85% position:50% size:63%
Energy safety questioned.

01:15:26.088 --> 01:15:31.126 align:middle line:79% position:50% size:75%
Uh, in your Energy Safety 2024
safety culture assessment for

01:15:31.193 --> 01:15:36.031 align:middle line:79% position:50% size:70%
SSE Energy Safety questioned
s e seriousness about

01:15:36.098 --> 01:15:37.132 align:middle line:85% position:50% size:38%
the assessment.

01:15:37.432 --> 01:15:41.737 align:middle line:79% position:50% size:55%
Um, and so once again,
like what, what should

01:15:41.803 --> 01:15:45.841 align:middle line:79% position:50% size:78%
an assessment have to show
before a certificate is issued?

01:15:48.210 --> 01:15:50.946 align:middle line:79% position:50% size:70%
>> Yeah. The certificate
process is a very particular

01:15:51.013 --> 01:15:53.782 align:middle line:79% position:50% size:63%
and specific process that
is unlike the Wildfire

01:15:53.849 --> 01:15:55.284 align:middle line:85% position:50% size:58%
mitigation plan review.

01:15:55.584 --> 01:15:58.553 align:middle line:79% position:50% size:68%
So wildfire mitigation plan
review and implementation

01:15:58.620 --> 01:16:03.191 align:middle line:79% position:50% size:70%
performance assessment, we
have a significantly greater

01:16:03.258 --> 01:16:07.663 align:middle line:79% position:50% size:80%
degrees of freedom to go in
and really dive into the details

01:16:07.729 --> 01:16:10.866 align:middle line:79% position:50% size:73%
and look at the quality of
the submittal, the quality of

01:16:10.933 --> 01:16:12.601 align:middle line:85% position:50% size:80%
the implementation in the field.

01:16:13.035 --> 01:16:16.171 align:middle line:79% position:50% size:73%
With the certificate process,
there is a very specific

01:16:16.238 --> 01:16:20.309 align:middle line:79% position:50% size:73%
list of requirements
and the utility that provides

01:16:20.375 --> 01:16:23.278 align:middle line:79% position:50% size:68%
documentation of compliance
with those requirements.

01:16:23.612 --> 01:16:26.782 align:middle line:79% position:50% size:63%
The statutory language
requires energy safety to

01:16:26.848 --> 01:16:28.216 align:middle line:85% position:50% size:63%
approve that certificate.

01:16:28.984 --> 01:16:32.387 align:middle line:79% position:50% size:73%
>> Okay. So I there again, it
feels like perhaps there's

01:16:32.454 --> 01:16:35.590 align:middle line:79% position:50% size:73%
an opportunity for us to work
together to strengthen that

01:16:35.657 --> 01:16:39.227 align:middle line:79% position:50% size:68%
process and make that, make
that more robust.

01:16:39.294 --> 01:16:42.631 align:middle line:79% position:50% size:75%
So that's why we're here to
identify opportunities to keep

01:16:42.698 --> 01:16:43.999 align:middle line:85% position:50% size:75%
making progress. So thank you.

01:16:44.433 --> 01:16:47.336 align:middle line:79% position:50% size:70%
I will have a couple other
questions, but before I jump

01:16:47.402 --> 01:16:49.538 align:middle line:85% position:50% size:70%
into those. Assembly member.

01:16:50.539 --> 01:16:51.573 align:middle line:85% position:50% size:65%
>> Thank you, Madam Chair.

01:16:51.640 --> 01:16:52.808 align:middle line:85% position:50% size:63%
Thank you for doing this.

01:16:52.874 --> 01:16:57.079 align:middle line:79% position:50% size:68%
I just want to applaud your
efforts, as always, to talk

01:16:57.145 --> 01:16:59.514 align:middle line:79% position:50% size:78%
about these big issues and have
these oversight hearings.

01:16:59.581 --> 01:17:02.184 align:middle line:79% position:50% size:68%
We've been doing them since
I joined this committee

01:17:02.784 --> 01:17:04.119 align:middle line:85% position:50% size:60%
less than two years ago.

01:17:04.419 --> 01:17:06.221 align:middle line:79% position:50% size:60%
Certainly not the first
time we're talking about

01:17:06.288 --> 01:17:08.623 align:middle line:79% position:50% size:58%
these issues, certainly
not the last time.

01:17:08.690 --> 01:17:10.192 align:middle line:79% position:50% size:60%
But I just want to thank
you for your leadership.

01:17:10.258 --> 01:17:15.230 align:middle line:79% position:50% size:80%
I want to thank the staff for
an incredibly robust, thoughtful

01:17:15.297 --> 01:17:19.935 align:middle line:79% position:50% size:73%
and detailed background paper
leading up to this hearing,

01:17:20.002 --> 01:17:22.671 align:middle line:79% position:50% size:78%
and I think anyone who actually
read it, hopefully everyone

01:17:22.738 --> 01:17:28.210 align:middle line:79% position:50% size:80%
here, uh, learned a lot and also
learned at just how imperfect

01:17:28.777 --> 01:17:32.581 align:middle line:79% position:50% size:75%
the system that we are working
within is.

01:17:33.048 --> 01:17:35.751 align:middle line:79% position:50% size:65%
And I can say that because
I didn't create it.

01:17:35.817 --> 01:17:38.754 align:middle line:79% position:50% size:73%
So I'm very lucky enough to
come to this as a new member.

01:17:39.054 --> 01:17:41.757 align:middle line:79% position:50% size:68%
Um, having lived through my
district, you know, having

01:17:41.823 --> 01:17:43.191 align:middle line:85% position:50% size:73%
lived through the Eaton fire.

01:17:43.258 --> 01:17:47.095 align:middle line:79% position:50% size:70%
And now with that experience
saying we are obviously

01:17:47.162 --> 01:17:51.633 align:middle line:79% position:50% size:68%
still in a work in progress
moment from 2017 to today,

01:17:51.967 --> 01:17:53.969 align:middle line:79% position:50% size:70%
and today is really about
trying to figure out what is

01:17:54.036 --> 01:17:56.972 align:middle line:79% position:50% size:70%
working, as the chair said,
what isn't working and where

01:17:57.039 --> 01:17:58.040 align:middle line:85% position:50% size:48%
do we go from here?

01:17:58.540 --> 01:18:01.943 align:middle line:85% position:50% size:73%
Um, so let me start with one.

01:18:02.978 --> 01:18:07.115 align:middle line:79% position:50% size:65%
I think very apparent, uh,
inherent conflict within

01:18:07.182 --> 01:18:09.785 align:middle line:79% position:50% size:70%
the system that we have set
up through 1054 and a number

01:18:09.851 --> 01:18:11.186 align:middle line:85% position:50% size:48%
of different bills.

01:18:11.253 --> 01:18:17.926 align:middle line:79% position:50% size:75%
And that is the role that
energy safety has with the WMP

01:18:18.326 --> 01:18:21.196 align:middle line:85% position:50% size:75%
versus the CPUc with the ramp.

01:18:21.663 --> 01:18:28.970 align:middle line:79% position:50% size:73%
And I find it startling that,
uh, it seems as though energy

01:18:29.037 --> 01:18:33.608 align:middle line:79% position:50% size:78%
safety has much less of a role
to play in what is getting done

01:18:33.675 --> 01:18:40.849 align:middle line:79% position:50% size:73%
on the wildfire mitigation
side than the PUC via the WMP

01:18:41.249 --> 01:18:43.718 align:middle line:85% position:50% size:65%
and the CPUc ramp process.

01:18:43.952 --> 01:18:46.421 align:middle line:79% position:50% size:70%
It seems as though if you
look at the outcomes and not

01:18:46.488 --> 01:18:49.658 align:middle line:79% position:50% size:73%
the inputs, a lot of the work
that is getting done is being

01:18:49.724 --> 01:18:52.627 align:middle line:79% position:50% size:70%
driven by the ramp, and it's
being driven by the rate

01:18:52.694 --> 01:18:55.397 align:middle line:85% position:50% size:68%
case, and that makes sense.

01:18:55.464 --> 01:18:57.833 align:middle line:79% position:50% size:70%
I mean, it makes sense to me
because obviously a lot of

01:18:57.899 --> 01:19:01.136 align:middle line:79% position:50% size:75%
the financial incentives to
do the work are going to drive

01:19:01.203 --> 01:19:02.704 align:middle line:85% position:50% size:60%
what work is being done.

01:19:03.004 --> 01:19:04.172 align:middle line:85% position:50% size:28%
And so, Mr.

01:19:04.239 --> 01:19:05.640 align:middle line:85% position:50% size:73%
Kizer, let me start with you.

01:19:05.974 --> 01:19:10.112 align:middle line:79% position:50% size:73%
Have we set up a system here
where your office and the WMP

01:19:10.178 --> 01:19:13.014 align:middle line:79% position:50% size:73%
and the safety certificate
process is effectively taking

01:19:13.081 --> 01:19:18.086 align:middle line:79% position:50% size:73%
a back seat to the Puc's rate
case process and the ramp.

01:19:19.054 --> 01:19:21.022 align:middle line:79% position:50% size:58%
>> Yeah. Thank you very
much for that question.

01:19:21.423 --> 01:19:24.459 align:middle line:79% position:50% size:75%
I would just directly say, no,
I don't think that's the case.

01:19:24.526 --> 01:19:27.762 align:middle line:79% position:50% size:60%
I think I can definitely
understand where you're

01:19:27.829 --> 01:19:28.763 align:middle line:85% position:50% size:50%
coming from on that.

01:19:28.830 --> 01:19:33.268 align:middle line:79% position:50% size:65%
I think especially if you
look at the higher capital

01:19:33.335 --> 01:19:37.672 align:middle line:79% position:50% size:73%
cost projects, undergrounding
and cover conductors, you can

01:19:37.739 --> 01:19:43.078 align:middle line:79% position:50% size:68%
point to past GRC decisions
where you saw a change from

01:19:43.378 --> 01:19:44.846 align:middle line:85% position:50% size:50%
what was in the WMP.

01:19:44.913 --> 01:19:47.816 align:middle line:79% position:50% size:70%
The energy safety approved,
and then what ultimately got

01:19:47.883 --> 01:19:50.051 align:middle line:85% position:50% size:80%
approved for funding in the GRC.

01:19:50.118 --> 01:19:52.821 align:middle line:79% position:50% size:58%
So if you zero in on
those specific types of

01:19:52.888 --> 01:19:56.224 align:middle line:79% position:50% size:73%
investments, you know, I can
I can see what you're saying.

01:19:56.458 --> 01:19:57.893 align:middle line:85% position:50% size:28%
Um, I will.

01:19:57.959 --> 01:20:00.896 align:middle line:79% position:50% size:65%
So I do think though, that
there's a whole range of

01:20:00.962 --> 01:20:04.166 align:middle line:79% position:50% size:60%
other activities that
are happening that don't

01:20:04.232 --> 01:20:06.635 align:middle line:79% position:50% size:60%
involve those specific
capital investments that

01:20:06.701 --> 01:20:10.238 align:middle line:79% position:50% size:70%
are very meaningful and very
important for reducing risk.

01:20:10.639 --> 01:20:13.575 align:middle line:79% position:50% size:68%
Um, and, uh, Doctor Skinner
referred to some of them.

01:20:13.642 --> 01:20:15.143 align:middle line:79% position:50% size:60%
I mentioned some of them
in my comments as well.

01:20:15.210 --> 01:20:22.350 align:middle line:79% position:50% size:78%
So operational activities like
SPS, IPS, sensors, cameras, um,

01:20:22.417 --> 01:20:27.088 align:middle line:79% position:50% size:73%
changes to procedures, better
inspections, quality control,

01:20:27.556 --> 01:20:30.892 align:middle line:79% position:50% size:73%
quality assurance activities,
all of those sort of blocking

01:20:30.959 --> 01:20:34.396 align:middle line:79% position:50% size:70%
and tackling fundamentals of
running an electrical system

01:20:34.696 --> 01:20:38.700 align:middle line:79% position:50% size:78%
are extremely important for
keeping risk low and especially

01:20:38.767 --> 01:20:39.768 align:middle line:85% position:50% size:28%
affordably.

01:20:39.834 --> 01:20:43.271 align:middle line:79% position:50% size:70%
So all of those activities,
I would say energy safety is

01:20:43.338 --> 01:20:46.007 align:middle line:79% position:50% size:70%
at the front line of and our
inspectors out in the field

01:20:46.074 --> 01:20:47.976 align:middle line:85% position:50% size:73%
are looking at very directly.

01:20:48.410 --> 01:20:50.412 align:middle line:79% position:50% size:53%
Vegetation management
is another example.

01:20:50.712 --> 01:20:52.914 align:middle line:79% position:50% size:68%
We have a whole team within
energy safety that is

01:20:52.981 --> 01:20:56.017 align:middle line:79% position:50% size:78%
specifically looking at, excuse
me, vegetation management

01:20:56.084 --> 01:20:57.452 align:middle line:85% position:50% size:58%
practices of utilities.

01:20:57.686 --> 01:21:03.491 align:middle line:79% position:50% size:75%
We, um, recently issued a some
findings on a study that shows

01:21:03.558 --> 01:21:07.829 align:middle line:79% position:50% size:70%
that enhanced clearances
really do make a difference.

01:21:07.896 --> 01:21:12.033 align:middle line:79% position:50% size:73%
And so I think in numerous
ways, energy safety is taking

01:21:12.100 --> 01:21:16.638 align:middle line:79% position:50% size:70%
the lead across the entire
range of, of WMP activities.

01:21:16.938 --> 01:21:19.908 align:middle line:79% position:50% size:68%
Um, and it is very much
meant to be a collaborative

01:21:19.975 --> 01:21:21.643 align:middle line:85% position:50% size:55%
process with the CPUc.

01:21:21.943 --> 01:21:26.114 align:middle line:79% position:50% size:73%
And I think again, going back
to 254, that set up a process

01:21:26.181 --> 01:21:28.450 align:middle line:79% position:50% size:63%
that has the potential to
be much more streamlined

01:21:28.516 --> 01:21:29.784 align:middle line:85% position:50% size:58%
and much more coherent.

01:21:30.252 --> 01:21:32.287 align:middle line:79% position:50% size:65%
So instead of having two
processes that are running

01:21:32.354 --> 01:21:36.491 align:middle line:79% position:50% size:75%
in parallel at different with
different timing, Now you have

01:21:36.558 --> 01:21:40.095 align:middle line:79% position:50% size:75%
the WMP feeding directly into
the GRC so that everything can

01:21:40.161 --> 01:21:41.596 align:middle line:85% position:50% size:58%
be considered together.

01:21:41.663 --> 01:21:44.699 align:middle line:79% position:50% size:78%
And I'll note that
the California Public Utilities

01:21:44.766 --> 01:21:48.136 align:middle line:79% position:50% size:70%
Commission does have an open
rate case plan proceeding,

01:21:48.336 --> 01:21:51.506 align:middle line:79% position:50% size:80%
where this issue of coordination
and alignment between the two

01:21:51.573 --> 01:21:55.010 align:middle line:79% position:50% size:75%
organizations is explicitly
called out as a scoping issue.

01:21:55.076 --> 01:21:57.078 align:middle line:79% position:50% size:65%
So we're really looking
forward to working closely

01:21:57.145 --> 01:22:00.415 align:middle line:79% position:50% size:78%
and collaboratively with
the commission and stakeholders

01:22:00.482 --> 01:22:02.751 align:middle line:79% position:50% size:70%
to figure out a way to make
sure that that is working as

01:22:02.817 --> 01:22:03.818 align:middle line:85% position:50% size:43%
well as possible.

01:22:04.152 --> 01:22:06.755 align:middle line:79% position:50% size:63%
>> I appreciate that,
and I want to open it up,

01:22:06.821 --> 01:22:11.092 align:middle line:79% position:50% size:78%
especially for Miss Anderson
from Edison to to address that.

01:22:11.159 --> 01:22:14.796 align:middle line:79% position:50% size:75%
And I think that the utilities
are are in a sort of

01:22:14.863 --> 01:22:17.832 align:middle line:79% position:50% size:70%
precarious situation with
energy safety, with the PUC,

01:22:17.899 --> 01:22:18.833 align:middle line:85% position:50% size:48%
with the rate case.

01:22:18.900 --> 01:22:22.037 align:middle line:79% position:50% size:73%
And I do think that the there
have been statements

01:22:22.103 --> 01:22:24.973 align:middle line:79% position:50% size:73%
and evidence from each of
the IOUs that have said a lot

01:22:25.040 --> 01:22:30.378 align:middle line:79% position:50% size:75%
of times their investments are
being driven, uh, oftentimes

01:22:30.445 --> 01:22:33.615 align:middle line:79% position:50% size:73%
not by the highest risk areas
that they need to address,

01:22:33.682 --> 01:22:36.785 align:middle line:79% position:50% size:73%
but, rather by the rate case,
and I and I think that that

01:22:36.851 --> 01:22:37.886 align:middle line:85% position:50% size:30%
is an issue.

01:22:37.952 --> 01:22:42.257 align:middle line:79% position:50% size:78%
And I think that it is actually
affecting the WMP and it's

01:22:42.324 --> 01:22:45.794 align:middle line:79% position:50% size:75%
affecting the mitigation plans
because of kind of this dual

01:22:45.860 --> 01:22:50.131 align:middle line:79% position:50% size:75%
agency action and really three
pieces that are trying to put

01:22:50.198 --> 01:22:51.132 align:middle line:85% position:50% size:53%
this puzzle together.

01:22:51.199 --> 01:22:52.701 align:middle line:79% position:50% size:63%
So, Miss Anderson, do you
want to comment on that?

01:22:53.335 --> 01:22:56.037 align:middle line:79% position:50% size:75%
>> I would say we also welcome
the opportunity to streamline

01:22:56.104 --> 01:22:59.541 align:middle line:79% position:50% size:68%
the process and make sure
the timing is more aligned.

01:22:59.607 --> 01:23:04.079 align:middle line:79% position:50% size:73%
As Director Kaser was talking
earlier, um, we we also don't

01:23:04.145 --> 01:23:07.449 align:middle line:79% position:50% size:78%
wait for these processes or
these, these rate case, whether

01:23:07.515 --> 01:23:08.783 align:middle line:85% position:50% size:75%
it's the rate case or the WMP.

01:23:08.850 --> 01:23:11.820 align:middle line:79% position:50% size:73%
If we know something needs to
get done, then we'll do it.

01:23:11.886 --> 01:23:15.223 align:middle line:79% position:50% size:70%
And so when we were talking
earlier, Chair Petrie Norris

01:23:15.290 --> 01:23:18.593 align:middle line:79% position:50% size:75%
asked about Edison not
including lessons learned from

01:23:18.660 --> 01:23:19.828 align:middle line:85% position:50% size:70%
the Eaton Fire and the plan.

01:23:19.894 --> 01:23:22.030 align:middle line:79% position:50% size:53%
A lot of that plan is
was written before

01:23:22.097 --> 01:23:23.131 align:middle line:85% position:50% size:45%
the fire happened.

01:23:23.198 --> 01:23:25.433 align:middle line:79% position:50% size:63%
And so just that's
the nature of the timing.

01:23:25.500 --> 01:23:29.704 align:middle line:79% position:50% size:80%
But once we realized that we had
an unmitigated risk or a risk

01:23:29.771 --> 01:23:33.742 align:middle line:79% position:50% size:80%
that we needed to, to learn from
the potential that the ignition

01:23:33.808 --> 01:23:36.478 align:middle line:79% position:50% size:70%
had happened from a grounded
transmission line, which had

01:23:36.544 --> 01:23:37.545 align:middle line:85% position:50% size:55%
never happened before.

01:23:37.812 --> 01:23:39.981 align:middle line:79% position:50% size:53%
We started putting on
additional grounds.

01:23:40.048 --> 01:23:42.884 align:middle line:79% position:50% size:63%
We changed our inspection
practices so that we

01:23:42.951 --> 01:23:44.085 align:middle line:85% position:50% size:58%
could reduce that risk.

01:23:44.152 --> 01:23:47.422 align:middle line:79% position:50% size:65%
We didn't wait for a plan
or a rate case to do that.

01:23:47.489 --> 01:23:51.059 align:middle line:79% position:50% size:73%
So while I do agree, there's
opportunity for us to be more

01:23:51.126 --> 01:23:54.162 align:middle line:79% position:50% size:70%
efficient in the process
and maybe evaluate something

01:23:54.229 --> 01:23:56.965 align:middle line:79% position:50% size:75%
once where we're looking at
both the risk spend efficiency

01:23:57.031 --> 01:24:00.301 align:middle line:79% position:50% size:80%
and ultimately the affordability
impacts to the customer.

01:24:00.969 --> 01:24:02.904 align:middle line:79% position:50% size:68%
We also are going to need
those degrees of freedom to

01:24:02.971 --> 01:24:04.839 align:middle line:85% position:50% size:73%
be able to do things in year.

01:24:04.906 --> 01:24:06.941 align:middle line:79% position:50% size:63%
Once we learn something
so that we're not waiting

01:24:07.008 --> 01:24:08.042 align:middle line:85% position:50% size:43%
for that process.

01:24:08.109 --> 01:24:09.444 align:middle line:79% position:50% size:53%
>> And I think that's
a great point.

01:24:10.044 --> 01:24:13.948 align:middle line:79% position:50% size:68%
And I think that there is
obviously a huge difference

01:24:14.015 --> 01:24:18.353 align:middle line:79% position:50% size:75%
from the POS and the IOUs, um,
and how they approach this.

01:24:18.420 --> 01:24:22.624 align:middle line:79% position:50% size:73%
And I think that on one side,
you really have more freedom

01:24:22.690 --> 01:24:25.193 align:middle line:79% position:50% size:70%
with the POS and how they're
approaching this and a lot

01:24:25.260 --> 01:24:26.928 align:middle line:85% position:50% size:63%
less freedom by the IOUs.

01:24:26.995 --> 01:24:29.697 align:middle line:79% position:50% size:60%
And I think it does call
into question the safety

01:24:29.764 --> 01:24:31.099 align:middle line:85% position:50% size:68%
regime that we have set up.

01:24:31.332 --> 01:24:33.868 align:middle line:79% position:50% size:70%
And so I will I'm just going
to throw it to the panel

01:24:33.935 --> 01:24:35.136 align:middle line:85% position:50% size:60%
and anyone can weigh in.

01:24:35.570 --> 01:24:38.606 align:middle line:79% position:50% size:53%
Does what we're doing
make any sense?

01:24:38.907 --> 01:24:42.944 align:middle line:79% position:50% size:70%
I have a wildfire, you know,
an energy safety that is

01:24:43.011 --> 01:24:47.382 align:middle line:79% position:50% size:75%
issuing certificates that have
rated certain IOUs the highest

01:24:47.449 --> 01:24:50.118 align:middle line:79% position:50% size:73%
that they've ever been rated,
the same year that they're

01:24:50.185 --> 01:24:52.687 align:middle line:85% position:50% size:70%
starting catastrophic fires.

01:24:53.221 --> 01:24:56.257 align:middle line:79% position:50% size:78%
That's one data point that just
says, I think that what we're

01:24:56.324 --> 01:24:58.193 align:middle line:85% position:50% size:78%
doing probably can be improved.

01:24:58.626 --> 01:25:00.428 align:middle line:79% position:50% size:58%
And you also have other
data showing that we're

01:25:00.495 --> 01:25:02.897 align:middle line:79% position:50% size:60%
tracking things like
inputs and other things.

01:25:02.964 --> 01:25:07.569 align:middle line:79% position:50% size:80%
While we're really not getting
to the question of are we safer?

01:25:07.969 --> 01:25:12.474 align:middle line:79% position:50% size:60%
And and so, you know, to
take a step back, what,

01:25:12.974 --> 01:25:14.509 align:middle line:85% position:50% size:65%
what needs to be improved?

01:25:14.576 --> 01:25:18.446 align:middle line:79% position:50% size:53%
And I want to hear
from all voices here.

01:25:18.513 --> 01:25:23.051 align:middle line:79% position:50% size:73%
I think that there is
a shocking lack of innovation

01:25:23.485 --> 01:25:26.554 align:middle line:79% position:50% size:65%
that we are deploying that
can be deployed in a much,

01:25:26.621 --> 01:25:28.256 align:middle line:85% position:50% size:73%
much more cost effective way.

01:25:28.923 --> 01:25:31.125 align:middle line:79% position:50% size:78%
um, you know, if one of
the inputs is how many billions

01:25:31.192 --> 01:25:34.362 align:middle line:79% position:50% size:80%
of dollars we're spending, we're
not measuring this correctly

01:25:34.429 --> 01:25:37.232 align:middle line:79% position:50% size:80%
because obviously we can spend
billions and billions of dollars

01:25:37.298 --> 01:25:38.900 align:middle line:85% position:50% size:70%
in not a very efficient way.

01:25:39.100 --> 01:25:40.468 align:middle line:79% position:50% size:43%
And that doesn't
mean we're safer.

01:25:40.535 --> 01:25:44.272 align:middle line:79% position:50% size:78%
So with all that, what do we
need to do to actually not only

01:25:44.339 --> 01:25:47.475 align:middle line:79% position:50% size:80%
streamline the process, but make
it actually work so that we have

01:25:47.542 --> 01:25:50.912 align:middle line:79% position:50% size:75%
objective safety and not just
kind of an input based system,

01:25:50.979 --> 01:25:52.313 align:middle line:85% position:50% size:65%
which we sort of have now.

01:25:53.414 --> 01:25:55.717 align:middle line:79% position:50% size:63%
>> Yeah, no, I greatly
appreciate that question.

01:25:55.783 --> 01:25:59.487 align:middle line:79% position:50% size:75%
Um, and, um, you know, I think
I'll go back to actually

01:25:59.554 --> 01:26:02.857 align:middle line:79% position:50% size:75%
some of the comments of my
fellow panelists and also that

01:26:02.924 --> 01:26:07.195 align:middle line:79% position:50% size:78%
I mentioned and, and talk about
the need for shared data.

01:26:07.629 --> 01:26:10.231 align:middle line:79% position:50% size:80%
So that's one of the challenges,
I think, uh, again,

01:26:10.298 --> 01:26:13.434 align:middle line:79% position:50% size:75%
an underappreciated aspect of,
of the system is that there's

01:26:13.501 --> 01:26:14.936 align:middle line:85% position:50% size:78%
a lot that we still don't know.

01:26:15.003 --> 01:26:18.506 align:middle line:79% position:50% size:78%
I mean, there are so many
different individual components

01:26:18.573 --> 01:26:20.508 align:middle line:85% position:50% size:55%
in an electric system.

01:26:20.575 --> 01:26:23.545 align:middle line:79% position:50% size:63%
Um, they're, they're just
hundreds or thousands.

01:26:23.611 --> 01:26:27.048 align:middle line:79% position:50% size:70%
And we don't know how each
of each one of them can fail

01:26:27.382 --> 01:26:29.684 align:middle line:79% position:50% size:65%
and how that failure could
then lead to ignition.

01:26:29.751 --> 01:26:31.686 align:middle line:79% position:50% size:53%
There's actually
a lot that's unknown.

01:26:31.953 --> 01:26:36.124 align:middle line:79% position:50% size:70%
So having a system for being
able to share data that is

01:26:36.190 --> 01:26:40.395 align:middle line:79% position:50% size:70%
standardized and, and shared
across as broad a number of

01:26:40.461 --> 01:26:43.898 align:middle line:79% position:50% size:73%
utilities as possible gives
us more data to be able to do

01:26:43.965 --> 01:26:47.468 align:middle line:79% position:50% size:73%
better analytics, make better
inferences, and be able to be

01:26:47.535 --> 01:26:50.405 align:middle line:79% position:50% size:75%
predictive about what's going
to fail and when it's going to

01:26:50.471 --> 01:26:52.473 align:middle line:85% position:50% size:70%
fail in terms of innovation.

01:26:52.540 --> 01:26:54.275 align:middle line:79% position:50% size:63%
I mean, that's actually
one of the areas I'm most

01:26:54.342 --> 01:26:57.245 align:middle line:79% position:50% size:65%
excited about right now is
you are seeing innovation

01:26:57.312 --> 01:27:00.248 align:middle line:79% position:50% size:55%
in sensing and taking
advantage of equipment

01:27:00.315 --> 01:27:03.885 align:middle line:79% position:50% size:73%
that's already installed on
systems to identify patterns,

01:27:03.952 --> 01:27:08.222 align:middle line:79% position:50% size:75%
electromagnetic signatures for
potential future failures.

01:27:08.489 --> 01:27:12.060 align:middle line:79% position:50% size:70%
And that's the kind of thing
that could potentially allow

01:27:12.126 --> 01:27:16.464 align:middle line:79% position:50% size:63%
us to, or allow utilities
to go in and fix problems

01:27:17.365 --> 01:27:20.702 align:middle line:79% position:50% size:73%
before they become ignitions
and before they become fires.

01:27:21.669 --> 01:27:25.807 align:middle line:79% position:50% size:70%
And I think that the ability
of large and small PLU

01:27:25.873 --> 01:27:29.744 align:middle line:79% position:50% size:60%
and IOU operations could
be greatly improved with

01:27:29.811 --> 01:27:31.045 align:middle line:85% position:50% size:53%
greater data sharing.

01:27:31.379 --> 01:27:33.147 align:middle line:79% position:50% size:68%
This is one of
the recommendations that we

01:27:33.214 --> 01:27:37.518 align:middle line:79% position:50% size:73%
made and submitted as part of
the SB 254 report process, so

01:27:37.585 --> 01:27:39.053 align:middle line:85% position:50% size:78%
you can read more detail there.

01:27:39.454 --> 01:27:41.556 align:middle line:79% position:50% size:70%
But definitely that would be
something that would need to

01:27:41.623 --> 01:27:44.592 align:middle line:79% position:50% size:70%
be developed collaboratively
across multiple entities.

01:27:44.993 --> 01:27:46.761 align:middle line:79% position:50% size:68%
There's a, there's a second
aspect of, of this.

01:27:46.828 --> 01:27:49.063 align:middle line:79% position:50% size:58%
So there's data sharing
on just a regular sort

01:27:49.130 --> 01:27:50.298 align:middle line:85% position:50% size:48%
of near miss basis.

01:27:50.365 --> 01:27:53.267 align:middle line:79% position:50% size:70%
Like what information are
you seeing right before some

01:27:53.334 --> 01:27:54.602 align:middle line:85% position:50% size:63%
piece of equipment fails?

01:27:54.669 --> 01:27:57.672 align:middle line:79% position:50% size:73%
Or what do you see associated
with an outage or ignition?

01:27:57.739 --> 01:28:01.643 align:middle line:79% position:50% size:78%
So that's sort of normal course
data sharing that I think can

01:28:01.709 --> 01:28:05.213 align:middle line:79% position:50% size:73%
be extremely helpful and lead
to cost effective solutions.

01:28:05.580 --> 01:28:07.849 align:middle line:79% position:50% size:55%
There's also post
incident data sharing.

01:28:08.049 --> 01:28:11.319 align:middle line:79% position:50% size:70%
So when there's been a fire,
you know other agencies not

01:28:11.386 --> 01:28:14.288 align:middle line:79% position:50% size:70%
energy safety, take the lead
on finding out, you know,

01:28:14.355 --> 01:28:15.590 align:middle line:85% position:50% size:68%
what happened in that fire.

01:28:16.057 --> 01:28:20.928 align:middle line:79% position:50% size:78%
And it can take quite some time
before that information finds

01:28:20.995 --> 01:28:24.666 align:middle line:79% position:50% size:78%
its way to us or to the general
public or to other utilities.

01:28:24.732 --> 01:28:27.201 align:middle line:79% position:50% size:68%
So, you know, you have
other models out there like

01:28:27.268 --> 01:28:31.906 align:middle line:79% position:50% size:73%
NTSB investigates accidents
involving, you know, aircraft

01:28:31.973 --> 01:28:33.608 align:middle line:85% position:50% size:43%
or gas pipelines.

01:28:33.808 --> 01:28:36.144 align:middle line:79% position:50% size:75%
We don't have a similar system
where you have an independent

01:28:36.210 --> 01:28:38.780 align:middle line:79% position:50% size:70%
body that goes in and just
collects facts that can then

01:28:38.846 --> 01:28:41.783 align:middle line:79% position:50% size:73%
be used by whatever party for
whatever purpose, whether

01:28:41.849 --> 01:28:44.786 align:middle line:79% position:50% size:70%
that's enforcement, which is
not us, or finding the root

01:28:44.852 --> 01:28:48.589 align:middle line:79% position:50% size:73%
cause and identifying ways to
encourage utilities to change

01:28:48.656 --> 01:28:51.225 align:middle line:79% position:50% size:75%
their behavior to prevent that
fire from happening again.

01:28:51.526 --> 01:28:54.796 align:middle line:79% position:50% size:75%
So bottom line, I think
the data sharing piece on both

01:28:54.862 --> 01:28:58.299 align:middle line:79% position:50% size:78%
a normal course and an incident
basis could be very helpful.

01:29:02.937 --> 01:29:04.138 align:middle line:85% position:50% size:75%
>> Thank you, Assembly member.

01:29:04.672 --> 01:29:07.642 align:middle line:79% position:50% size:75%
Um, I want to start first with
I'm glad to see that energy

01:29:07.709 --> 01:29:11.279 align:middle line:79% position:50% size:78%
safety and the Public Utilities
Commission, as part of the SB

01:29:11.345 --> 01:29:14.782 align:middle line:79% position:50% size:73%
254 process, launched a joint
workshop earlier this year.

01:29:15.049 --> 01:29:17.819 align:middle line:79% position:50% size:73%
We expect that collaboration
to continue because there has

01:29:17.885 --> 01:29:21.089 align:middle line:79% position:50% size:68%
been dis alignment between,
particularly the timing of

01:29:21.155 --> 01:29:24.559 align:middle line:79% position:50% size:73%
the wildfire mitigation
plans and the risk assessment

01:29:24.625 --> 01:29:26.794 align:middle line:79% position:50% size:68%
mitigation phase going into
the GRC.

01:29:27.695 --> 01:29:30.765 align:middle line:79% position:50% size:75%
Um, regarding your question
about waiting between the two.

01:29:31.666 --> 01:29:34.268 align:middle line:79% position:50% size:75%
Part of what we've seen on our
end of the public advocate's

01:29:34.335 --> 01:29:37.905 align:middle line:79% position:50% size:68%
office is that the wildfire
mitigation plan is really,

01:29:37.972 --> 01:29:39.340 align:middle line:85% position:50% size:53%
truly more of a plan.

01:29:39.741 --> 01:29:43.044 align:middle line:79% position:50% size:65%
We can go in. Their energy
safety is required,

01:29:43.244 --> 01:29:45.880 align:middle line:79% position:50% size:78%
but circuits as the utility
working on planning to work on.

01:29:45.947 --> 01:29:49.183 align:middle line:79% position:50% size:80%
Over the next couple of years,
you will never get that level of

01:29:49.250 --> 01:29:51.986 align:middle line:79% position:50% size:78%
detail in the general rate case
or through the risk assessment

01:29:52.053 --> 01:29:56.190 align:middle line:79% position:50% size:80%
mitigation phase, because really
those are programmatic areas.

01:29:57.191 --> 01:29:59.460 align:middle line:79% position:50% size:60%
Really, we don't want
the commission dictating

01:29:59.527 --> 01:30:01.929 align:middle line:79% position:50% size:60%
every last piece of work
that the utility does.

01:30:02.330 --> 01:30:03.865 align:middle line:79% position:50% size:58%
Wouldn't be appropriate
for the commission.

01:30:03.931 --> 01:30:06.968 align:middle line:79% position:50% size:75%
It doesn't have the resources,
and it takes away the agency

01:30:07.034 --> 01:30:09.470 align:middle line:79% position:50% size:55%
from the utility to do
the right thing.

01:30:10.938 --> 01:30:13.674 align:middle line:79% position:50% size:58%
Um, and really, it gets
down to some of this

01:30:13.741 --> 01:30:14.675 align:middle line:85% position:50% size:58%
just takes a long time.

01:30:14.742 --> 01:30:16.677 align:middle line:79% position:50% size:65%
I was one of the first
people working on the risk

01:30:16.744 --> 01:30:18.379 align:middle line:85% position:50% size:70%
assessment mitigation phase.

01:30:18.446 --> 01:30:20.615 align:middle line:79% position:50% size:50%
I hate to say it, it
was 12 years ago.

01:30:20.948 --> 01:30:22.950 align:middle line:79% position:50% size:63%
I think I'm the last one
still standing who worked

01:30:23.017 --> 01:30:24.085 align:middle line:85% position:50% size:50%
on the original one.

01:30:24.819 --> 01:30:27.021 align:middle line:79% position:50% size:70%
And at the time I told
everybody who was working on

01:30:27.088 --> 01:30:30.391 align:middle line:79% position:50% size:70%
it, it will take us at least
a decade to get this right.

01:30:30.925 --> 01:30:33.995 align:middle line:79% position:50% size:73%
And the public advocate's
office was nobody agreed with

01:30:34.061 --> 01:30:35.263 align:middle line:85% position:50% size:63%
us at that point in time.

01:30:35.763 --> 01:30:37.932 align:middle line:79% position:50% size:68%
It really took about
a decade to get that right.

01:30:38.499 --> 01:30:41.469 align:middle line:79% position:50% size:75%
The wildfire mitigation plans
are moving a lot more quickly.

01:30:41.702 --> 01:30:43.738 align:middle line:79% position:50% size:75%
The ways that they're starting
and will hopefully continue

01:30:43.805 --> 01:30:46.607 align:middle line:79% position:50% size:68%
to interact with the risk
assessment mitigation phase

01:30:46.808 --> 01:30:48.643 align:middle line:79% position:50% size:70%
will hopefully go a lot more
smoothly.

01:30:49.577 --> 01:30:51.579 align:middle line:79% position:50% size:60%
But it really comes down
to that difference of

01:30:51.646 --> 01:30:52.914 align:middle line:85% position:50% size:55%
one of them is a plan.

01:30:52.980 --> 01:30:55.883 align:middle line:79% position:50% size:65%
So it will be more
specific, more measurable.

01:30:56.417 --> 01:30:59.687 align:middle line:79% position:50% size:78%
We saw some of that interaction
in PG and E's previous general

01:30:59.754 --> 01:31:03.057 align:middle line:79% position:50% size:65%
rate case, where PG and E
wanted a lot more mileage.

01:31:03.124 --> 01:31:04.325 align:middle line:85% position:50% size:68%
We looked at the risk data.

01:31:04.392 --> 01:31:07.228 align:middle line:79% position:50% size:63%
We criticized it as being
done exactly as you said,

01:31:07.295 --> 01:31:09.096 align:middle line:85% position:50% size:65%
not in the riskiest areas.

01:31:09.730 --> 01:31:11.265 align:middle line:79% position:50% size:58%
We've looked at
the more recent models.

01:31:11.332 --> 01:31:14.869 align:middle line:79% position:50% size:75%
The good news is a lot more of
it is indeed being targeted in

01:31:14.936 --> 01:31:16.003 align:middle line:85% position:50% size:55%
the higher risk areas.

01:31:16.070 --> 01:31:18.806 align:middle line:79% position:50% size:78%
Exactly where it does make
sense to target undergrounding.

01:31:19.307 --> 01:31:22.276 align:middle line:79% position:50% size:73%
Other utilities, such as
Edison, went with a different

01:31:22.343 --> 01:31:24.779 align:middle line:79% position:50% size:68%
approach, which was covered
conductor almost everywhere

01:31:24.846 --> 01:31:28.716 align:middle line:79% position:50% size:68%
first, which isn't quite as
good as undergrounding.

01:31:28.783 --> 01:31:32.186 align:middle line:79% position:50% size:80%
But on the other hand, when we
look at the numbers, um, Edison,

01:31:32.253 --> 01:31:35.056 align:middle line:79% position:50% size:70%
thousands of miles have been
done with covered conductor.

01:31:35.122 --> 01:31:37.058 align:middle line:79% position:50% size:75%
Now their targeted
undergrounding is hitting some

01:31:37.124 --> 01:31:41.495 align:middle line:79% position:50% size:75%
of the riskiest areas PG and E
we've still got 17,000 miles

01:31:41.562 --> 01:31:42.897 align:middle line:85% position:50% size:63%
without a plan to harden.

01:31:43.331 --> 01:31:46.000 align:middle line:79% position:50% size:80%
And so it's going to be stuck
with public safety power shutoff

01:31:46.067 --> 01:31:49.003 align:middle line:79% position:50% size:80%
or fast trip until they get
through the undergrounding side.

01:31:49.070 --> 01:31:51.072 align:middle line:79% position:50% size:65%
They are doing some
covered conductor as well.

01:31:51.539 --> 01:31:54.075 align:middle line:79% position:50% size:75%
Um, but we're seeing different
approaches work out.

01:31:54.141 --> 01:31:56.577 align:middle line:79% position:50% size:58%
Both utilities have had
catastrophic fires.

01:31:56.978 --> 01:31:59.146 align:middle line:79% position:50% size:70%
And I really just want to
agree with director Forrest,

01:31:59.213 --> 01:32:03.618 align:middle line:79% position:50% size:65%
that director Kaiser, that
it can take a long time to

01:32:03.684 --> 01:32:06.487 align:middle line:79% position:50% size:58%
get the results of fire
investigations and even

01:32:06.554 --> 01:32:09.457 align:middle line:79% position:50% size:73%
having a summary a lot
quicker of the proximal cause

01:32:09.824 --> 01:32:12.460 align:middle line:79% position:50% size:68%
can really help those of us
on the safety side try to

01:32:12.526 --> 01:32:14.662 align:middle line:85% position:50% size:65%
figure out what's gone on.

01:32:14.729 --> 01:32:17.398 align:middle line:79% position:50% size:58%
We have definitely seen
transmission failures

01:32:17.465 --> 01:32:20.101 align:middle line:79% position:50% size:68%
that ignited a.
Wildfires the Kincade Fire.

01:32:20.167 --> 01:32:21.502 align:middle line:85% position:50% size:58%
Certainly the campfire.

01:32:21.769 --> 01:32:26.540 align:middle line:79% position:50% size:55%
But having a circuit
that was de-energized.

01:32:26.941 --> 01:32:29.477 align:middle line:79% position:50% size:65%
Especially a transmission
circuit, ignite a wildfire

01:32:29.543 --> 01:32:30.478 align:middle line:85% position:50% size:50%
is a fairly new one.

01:32:30.544 --> 01:32:32.914 align:middle line:79% position:50% size:78%
There's not a lot of literature
or other things out there,

01:32:32.980 --> 01:32:36.217 align:middle line:79% position:50% size:75%
and so that can take a bit
longer to try to find out what

01:32:36.284 --> 01:32:37.885 align:middle line:85% position:50% size:55%
was the cause exactly.

01:32:37.952 --> 01:32:40.655 align:middle line:79% position:50% size:68%
The point of so that money
doesn't get spent in areas.

01:32:40.988 --> 01:32:44.992 align:middle line:79% position:50% size:78%
If this really is one specific
circuit configured in a certain

01:32:45.059 --> 01:32:48.963 align:middle line:79% position:50% size:78%
way, if we spend tens,
hundreds, billions of ratepayer

01:32:49.030 --> 01:32:52.767 align:middle line:79% position:50% size:78%
dollars fixing something, if it
ends up being just that one

01:32:52.833 --> 01:32:55.736 align:middle line:79% position:50% size:75%
circuit happened to be done in
just the right way under just

01:32:55.803 --> 01:32:58.839 align:middle line:79% position:50% size:75%
the right conditions, we fixed
mitigate that one circuit.

01:32:58.906 --> 01:33:00.741 align:middle line:79% position:50% size:60%
On the other hand, this
issue, as we get through

01:33:00.808 --> 01:33:02.209 align:middle line:85% position:50% size:65%
it, could be a lot larger.

01:33:02.410 --> 01:33:04.712 align:middle line:79% position:50% size:70%
And then maybe we do need to
look at putting ratepayer

01:33:04.779 --> 01:33:08.182 align:middle line:79% position:50% size:78%
resources towards addressing it
if it is a bigger threat, just

01:33:08.249 --> 01:33:11.285 align:middle line:79% position:50% size:70%
unfortunately, that can take
a while to really understand

01:33:11.352 --> 01:33:14.121 align:middle line:79% position:50% size:78%
on a utility system, because
they're measured in hundreds of

01:33:14.188 --> 01:33:15.623 align:middle line:85% position:50% size:68%
thousands of miles of wire.

01:33:15.923 --> 01:33:18.626 align:middle line:79% position:50% size:58%
And that's just a lot
of hooks, towers, poles

01:33:18.693 --> 01:33:21.696 align:middle line:79% position:50% size:65%
and conductor that has to
be worked on and assessed.

01:33:23.631 --> 01:33:25.666 align:middle line:79% position:50% size:70%
>> I agree with the comments
of the panelists so far.

01:33:25.733 --> 01:33:27.802 align:middle line:79% position:50% size:70%
So let me add something that
hasn't been brought up yet.

01:33:27.868 --> 01:33:31.772 align:middle line:79% position:50% size:80%
And I think an opportunity that
we have is really on permitting.

01:33:31.973 --> 01:33:34.976 align:middle line:79% position:50% size:68%
So I think, Assemblymember,
you talked about what's,

01:33:35.176 --> 01:33:37.345 align:middle line:79% position:50% size:65%
you know, the opportunity
here between energy safety

01:33:37.411 --> 01:33:39.947 align:middle line:85% position:50% size:68%
and CPUc and the utilities.

01:33:40.014 --> 01:33:42.016 align:middle line:79% position:50% size:50%
And we certainly can
better streamline.

01:33:42.083 --> 01:33:45.319 align:middle line:79% position:50% size:55%
And we are encouraged
by SB 254 that gets us

01:33:45.386 --> 01:33:46.754 align:middle line:85% position:50% size:65%
pointed in that direction.

01:33:46.821 --> 01:33:49.657 align:middle line:79% position:50% size:73%
But our plans are only as
good as what can be executed.

01:33:49.724 --> 01:33:52.860 align:middle line:79% position:50% size:80%
And so we still have a lot of
opportunity with other agencies,

01:33:52.927 --> 01:33:56.497 align:middle line:79% position:50% size:75%
both state and federal, to get
in, get aligned and support

01:33:56.564 --> 01:33:58.632 align:middle line:79% position:50% size:73%
these plans, because there
are trees that aren't getting

01:33:58.699 --> 01:34:01.402 align:middle line:79% position:50% size:70%
trimmed, cover conductor
that's not getting strong or

01:34:01.469 --> 01:34:04.839 align:middle line:79% position:50% size:78%
undergrounding that's not being
dug because we have challenges

01:34:04.905 --> 01:34:06.774 align:middle line:85% position:50% size:70%
getting the permitting. Mhm.

01:34:07.708 --> 01:34:09.010 align:middle line:79% position:50% size:63%
>> I have a lot more. I'm
going to do one more.

01:34:09.076 --> 01:34:10.077 align:middle line:85% position:50% size:63%
And then and then we can.

01:34:10.378 --> 01:34:11.946 align:middle line:79% position:50% size:50%
Yeah, we'll just go
back and forth here.

01:34:12.013 --> 01:34:15.516 align:middle line:79% position:50% size:60%
The kind of following up
on a few of the comments

01:34:15.583 --> 01:34:16.584 align:middle line:85% position:50% size:50%
that were just made.

01:34:16.650 --> 01:34:21.455 align:middle line:79% position:50% size:75%
I do think that it seems as
though we were focused heavily

01:34:21.522 --> 01:34:24.358 align:middle line:79% position:50% size:60%
from a dollar standpoint
and a time standpoint on

01:34:24.425 --> 01:34:28.195 align:middle line:79% position:50% size:73%
distribution for forever,
really, and that's where most

01:34:28.262 --> 01:34:31.866 align:middle line:79% position:50% size:73%
of the resources for the IOUs
were going.

01:34:31.932 --> 01:34:34.668 align:middle line:79% position:50% size:78%
I'm not sure about the PWS
because they obviously probably

01:34:34.735 --> 01:34:38.105 align:middle line:79% position:50% size:68%
have much less transmission
versus distribution.

01:34:38.172 --> 01:34:43.644 align:middle line:79% position:50% size:63%
But I guess what happened
and how did it catch us?

01:34:44.211 --> 01:34:47.948 align:middle line:79% position:50% size:68%
So, I mean, it caught up to
us there very quickly where

01:34:48.015 --> 01:34:51.118 align:middle line:79% position:50% size:80%
we're spending a couple million
dollars a year on mitigation for

01:34:51.185 --> 01:34:54.688 align:middle line:79% position:50% size:78%
transmission and billions of
dollars a year on distribution.

01:34:54.755 --> 01:34:58.125 align:middle line:79% position:50% size:60%
And we have Kincaid,
Camp and Eaton all being

01:34:58.192 --> 01:35:00.327 align:middle line:85% position:50% size:60%
started by transmission.

01:35:00.628 --> 01:35:05.299 align:middle line:79% position:50% size:80%
And one sort of the common sense
theory or test that the chair

01:35:05.366 --> 01:35:08.536 align:middle line:79% position:50% size:75%
was talking about, that just
doesn't make a lot of sense to

01:35:08.602 --> 01:35:13.941 align:middle line:79% position:50% size:78%
me that we're putting literally
like 1/100 of the investment

01:35:14.008 --> 01:35:18.112 align:middle line:79% position:50% size:80%
into transmission when we've
had three catastrophic fires now

01:35:18.179 --> 01:35:19.647 align:middle line:85% position:50% size:60%
started by transmission.

01:35:19.713 --> 01:35:22.183 align:middle line:85% position:50% size:55%
And so, you know what?

01:35:22.249 --> 01:35:23.350 align:middle line:85% position:50% size:45%
What am I missing?

01:35:23.617 --> 01:35:27.088 align:middle line:79% position:50% size:65%
Why are the fire experts
within the IOUs and within

01:35:27.154 --> 01:35:29.223 align:middle line:85% position:50% size:43%
the agencies not?

01:35:29.290 --> 01:35:31.092 align:middle line:79% position:50% size:45%
Why didn't they
flag this earlier?

01:35:31.525 --> 01:35:35.463 align:middle line:79% position:50% size:78%
And why weren't we investing
more or forcing the investments

01:35:35.529 --> 01:35:39.100 align:middle line:79% position:50% size:73%
more on the transmission side
so that maybe we would have

01:35:39.733 --> 01:35:42.470 align:middle line:79% position:50% size:75%
not had these fires started by
transmission?

01:35:42.870 --> 01:35:46.540 align:middle line:79% position:50% size:73%
And, Mr. Skinner, you just,
I think, answered part of it,

01:35:46.607 --> 01:35:50.044 align:middle line:79% position:50% size:73%
which is maybe it's just this
one off sort of black swan

01:35:50.111 --> 01:35:54.682 align:middle line:79% position:50% size:75%
moment that really had nothing
to do with the inherent risk

01:35:54.748 --> 01:35:55.883 align:middle line:85% position:50% size:50%
of the transmission.

01:35:56.484 --> 01:35:58.953 align:middle line:79% position:50% size:68%
But as we get more and more
transmission fires, that

01:35:59.019 --> 01:36:00.354 align:middle line:85% position:50% size:60%
seems less likely to me.

01:36:00.421 --> 01:36:02.857 align:middle line:79% position:50% size:53%
So why did this catch
us flat footed?

01:36:06.727 --> 01:36:08.362 align:middle line:79% position:50% size:65%
>> Part of it is, as you
mentioned, Assemblymember,

01:36:08.429 --> 01:36:10.264 align:middle line:79% position:50% size:60%
is when we look at those
three wildfires.

01:36:10.331 --> 01:36:12.066 align:middle line:85% position:50% size:78%
There's three different causes.

01:36:12.700 --> 01:36:14.301 align:middle line:85% position:50% size:75%
Uh, two of them, I should say.

01:36:14.368 --> 01:36:17.872 align:middle line:79% position:50% size:68%
One of them very well known
with the Kincaid ignition

01:36:17.938 --> 01:36:20.441 align:middle line:79% position:50% size:58%
piece of equipment came
loose, touched another

01:36:20.508 --> 01:36:22.309 align:middle line:85% position:50% size:63%
wire, ignited a wildfire.

01:36:22.810 --> 01:36:25.779 align:middle line:79% position:50% size:80%
You can see that across any kind
of infrastructure, similar to

01:36:25.846 --> 01:36:29.583 align:middle line:79% position:50% size:75%
the kind of ignitions that we
had back in San Diego in 2007.

01:36:30.251 --> 01:36:34.388 align:middle line:79% position:50% size:73%
When we look at the campfire,
that was a piece of equipment

01:36:34.455 --> 01:36:37.725 align:middle line:79% position:50% size:75%
that, frankly, needed somebody
climbing towers to look at.

01:36:38.425 --> 01:36:39.860 align:middle line:85% position:50% size:75%
How is our equipment up there?

01:36:40.194 --> 01:36:42.363 align:middle line:79% position:50% size:73%
Looking at it from the ground
wouldn't have caught it.

01:36:42.429 --> 01:36:45.799 align:middle line:79% position:50% size:73%
Same problem with the Kincade
Fire is that the piece of

01:36:45.866 --> 01:36:48.169 align:middle line:79% position:50% size:68%
equipment that failed was
hidden behind a steel span.

01:36:48.736 --> 01:36:50.804 align:middle line:79% position:50% size:60%
No way for anybody short
of climbing that tower

01:36:50.871 --> 01:36:51.872 align:middle line:85% position:50% size:45%
to look behind it.

01:36:52.106 --> 01:36:53.607 align:middle line:85% position:50% size:78%
So it's really those two fires.

01:36:53.674 --> 01:36:56.177 align:middle line:79% position:50% size:70%
When we look at it, it was
a matter of inspections, not

01:36:56.243 --> 01:36:57.545 align:middle line:85% position:50% size:60%
having enough diligence.

01:36:58.345 --> 01:37:00.781 align:middle line:79% position:50% size:80%
These things could have been
seen, could have been prevented.

01:37:01.115 --> 01:37:02.917 align:middle line:79% position:50% size:63%
You know, both of those
two fires I'm calling out

01:37:02.983 --> 01:37:05.586 align:middle line:79% position:50% size:78%
in particular, because
the conditions existed for well

01:37:05.653 --> 01:37:09.023 align:middle line:79% position:50% size:80%
over a decade that could have
and should have been remediated.

01:37:10.257 --> 01:37:12.226 align:middle line:79% position:50% size:68%
I have tried looking at
the literature for the kind

01:37:12.293 --> 01:37:14.795 align:middle line:79% position:50% size:73%
of ignition that resulted in
the Eaton Fire, based on what

01:37:14.862 --> 01:37:19.099 align:middle line:79% position:50% size:75%
we've been able to see, and we
won't start our analysis of

01:37:19.166 --> 01:37:21.502 align:middle line:79% position:50% size:75%
the public advocate's office
for another couple of years in

01:37:21.569 --> 01:37:25.606 align:middle line:79% position:50% size:73%
full until the cost recovery
application comes in, we find

01:37:25.673 --> 01:37:29.777 align:middle line:79% position:50% size:73%
out what the commission's
fire report alongside the Los

01:37:29.843 --> 01:37:31.512 align:middle line:85% position:50% size:78%
Angeles Fire Report looks like.

01:37:31.779 --> 01:37:34.515 align:middle line:79% position:50% size:68%
I have not been able to
find much of any literature

01:37:34.715 --> 01:37:37.384 align:middle line:79% position:50% size:68%
around this particular kind
of ignition.

01:37:37.885 --> 01:37:42.456 align:middle line:79% position:50% size:80%
So two of them were just simple,
flat out routine maintenance

01:37:42.523 --> 01:37:43.857 align:middle line:85% position:50% size:58%
and inspection failure.

01:37:44.225 --> 01:37:46.360 align:middle line:79% position:50% size:58%
The Eaton Fire. I don't
quite know enough.

01:37:46.427 --> 01:37:48.295 align:middle line:79% position:50% size:58%
Our office won't know
until we really dig in.

01:37:48.696 --> 01:37:51.265 align:middle line:79% position:50% size:70%
When we compare that to what
we see igniting, typically

01:37:51.332 --> 01:37:52.666 align:middle line:85% position:50% size:48%
distribution fires.

01:37:53.133 --> 01:37:56.470 align:middle line:79% position:50% size:73%
Those poles and the conductor
are a lot lower.

01:37:56.537 --> 01:37:58.205 align:middle line:85% position:50% size:80%
A lot of times it's tree strike.

01:37:58.572 --> 01:38:00.741 align:middle line:79% position:50% size:48%
It's that kind of
mechanical failure.

01:38:00.975 --> 01:38:05.279 align:middle line:79% position:50% size:70%
And so some of it could very
well be that it's bias.

01:38:05.346 --> 01:38:07.548 align:middle line:79% position:50% size:53%
We understand exactly
how this happened.

01:38:07.615 --> 01:38:09.216 align:middle line:79% position:50% size:58%
We know why it happens.
We've seen it happen

01:38:09.283 --> 01:38:10.284 align:middle line:85% position:50% size:50%
time and time again.

01:38:10.551 --> 01:38:13.153 align:middle line:79% position:50% size:75%
So you put focus on it,
particularly given the impacts

01:38:13.220 --> 01:38:16.390 align:middle line:79% position:50% size:75%
of climate change and the rate
of spread, because we've had

01:38:16.457 --> 01:38:20.628 align:middle line:79% position:50% size:68%
these distribution circuits
throughout California for

01:38:20.694 --> 01:38:24.265 align:middle line:79% position:50% size:75%
decades, and we have typically
seen very few catastrophic

01:38:24.331 --> 01:38:29.036 align:middle line:79% position:50% size:75%
fires only in the last decade,
two decades.

01:38:29.103 --> 01:38:31.839 align:middle line:79% position:50% size:68%
If we go back to San Diego,
have we seen it be this

01:38:31.905 --> 01:38:33.807 align:middle line:85% position:50% size:68%
level of catastrophic fire.

01:38:33.874 --> 01:38:36.176 align:middle line:79% position:50% size:60%
And it's being fueled in
part by climate change.

01:38:36.910 --> 01:38:38.746 align:middle line:79% position:50% size:58%
We have seen
transmission ignitions.

01:38:38.812 --> 01:38:41.949 align:middle line:79% position:50% size:80%
Those have been some of the most
devastating fires we've had.

01:38:42.283 --> 01:38:44.418 align:middle line:79% position:50% size:58%
But in terms of overall
frequency, it's a much

01:38:44.485 --> 01:38:45.552 align:middle line:85% position:50% size:43%
lower proportion.

01:38:45.619 --> 01:38:47.755 align:middle line:79% position:50% size:73%
Not to say that we don't need
to all collectively sharpen

01:38:47.821 --> 01:38:52.393 align:middle line:79% position:50% size:73%
our pencils, try to see, are
these really just things that

01:38:52.459 --> 01:38:53.727 align:middle line:85% position:50% size:53%
we're missing seeing?

01:38:53.794 --> 01:38:57.564 align:middle line:79% position:50% size:78%
Have we just black swan events,
too much attention focused on

01:38:57.631 --> 01:39:01.235 align:middle line:79% position:50% size:78%
other areas, or is there some
underlying pattern to this that

01:39:01.302 --> 01:39:03.837 align:middle line:79% position:50% size:75%
we're missing that I certainly
know we're all going to be

01:39:03.904 --> 01:39:07.274 align:middle line:79% position:50% size:78%
looking at through the wildfire
mitigation plans because to my

01:39:07.341 --> 01:39:09.977 align:middle line:79% position:50% size:73%
mind, especially in the high
threat fire areas and next to

01:39:10.044 --> 01:39:12.946 align:middle line:79% position:50% size:78%
it, that's really the advantage
that it provides over the risk

01:39:13.013 --> 01:39:16.784 align:middle line:79% position:50% size:78%
assessment mitigation phase is
that it is focused on one thing

01:39:17.117 --> 01:39:20.287 align:middle line:79% position:50% size:70%
and one thing only, which is
how do we reduce and get to

01:39:20.354 --> 01:39:24.491 align:middle line:79% position:50% size:78%
zero or as close to zero as we
can for catastrophic wildfires?

01:39:24.558 --> 01:39:26.827 align:middle line:79% position:50% size:68%
When we look at the broader
risk assessment mitigation

01:39:26.894 --> 01:39:29.596 align:middle line:79% position:50% size:65%
phase, there's 30 risks on
there. You've got.

01:39:29.663 --> 01:39:32.900 align:middle line:79% position:50% size:78%
And if in my slide deck, if you
have a copy appendix, page two,

01:39:33.467 --> 01:39:36.036 align:middle line:79% position:50% size:68%
there's a layout, pulls out
an example from San Diego.

01:39:36.103 --> 01:39:40.441 align:middle line:79% position:50% size:78%
They're looking at earthquakes,
dam failures, electrical

01:39:40.507 --> 01:39:43.310 align:middle line:79% position:50% size:75%
distribution, wildfire,
certainly the top of the list.

01:39:43.510 --> 01:39:45.846 align:middle line:79% position:50% size:60%
But there's everything
on there, including, uh,

01:39:45.913 --> 01:39:48.482 align:middle line:79% position:50% size:63%
release of nuclear fuel
at a nuclear power plant.

01:39:48.782 --> 01:39:52.786 align:middle line:79% position:50% size:73%
And so just to close the loop
on that piece is it's really

01:39:52.853 --> 01:39:56.123 align:middle line:79% position:50% size:73%
making sure is the utility
looking holistically at risk?

01:39:56.557 --> 01:39:58.692 align:middle line:79% position:50% size:60%
Do they have mitigations
that make sense?

01:39:58.992 --> 01:40:01.295 align:middle line:79% position:50% size:60%
And then that funnels
into their GRC planning.

01:40:01.595 --> 01:40:04.565 align:middle line:79% position:50% size:50%
The WMP is much more
directive looks at

01:40:04.631 --> 01:40:06.767 align:middle line:79% position:50% size:73%
transmission distribution,
kind of the whole nine yards,

01:40:06.834 --> 01:40:08.268 align:middle line:85% position:50% size:68%
but much more specifically.

01:40:08.936 --> 01:40:11.739 align:middle line:79% position:50% size:75%
But certainly would agree that
looking more into transmission

01:40:12.306 --> 01:40:15.309 align:middle line:79% position:50% size:73%
is something because we've
had three fires now linked to

01:40:15.376 --> 01:40:16.477 align:middle line:85% position:50% size:58%
transmission equipment.

01:40:21.115 --> 01:40:24.118 align:middle line:79% position:50% size:65%
>> Yeah. I mean, I guess
I think I definitely agree

01:40:24.184 --> 01:40:27.654 align:middle line:79% position:50% size:68%
with many of the statements
that Doctor Skinner made.

01:40:27.721 --> 01:40:31.558 align:middle line:79% position:50% size:68%
I think, you know, there is
a challenge of the unknown

01:40:31.625 --> 01:40:32.559 align:middle line:85% position:50% size:40%
unknowns, right?

01:40:32.626 --> 01:40:34.962 align:middle line:79% position:50% size:60%
There is the challenge
of what don't we know on

01:40:35.028 --> 01:40:38.799 align:middle line:79% position:50% size:65%
the system that could pose
a problem in the future?

01:40:38.866 --> 01:40:39.833 align:middle line:85% position:50% size:65%
And how do we get at that?

01:40:39.900 --> 01:40:44.972 align:middle line:79% position:50% size:63%
And again, not to be too
repetitive here, but, you

01:40:45.038 --> 01:40:47.474 align:middle line:79% position:50% size:73%
know, collaboration with
academia and thinking through

01:40:47.541 --> 01:40:51.678 align:middle line:79% position:50% size:70%
like how, how do we think
about those unknown factors?

01:40:51.745 --> 01:40:55.115 align:middle line:79% position:50% size:50%
Um, it, you know, it
can be a challenge.

01:40:55.182 --> 01:40:59.853 align:middle line:79% position:50% size:80%
Um, I mean, I just point back to
2012 when as a state, it was not

01:40:59.920 --> 01:41:02.890 align:middle line:79% position:50% size:75%
commonly thought that wildfire
risk was a major problem for

01:41:02.956 --> 01:41:04.057 align:middle line:85% position:50% size:50%
Northern California.

01:41:04.825 --> 01:41:07.494 align:middle line:79% position:50% size:75%
We thought it was a Southern
California specific challenge,

01:41:08.195 --> 01:41:09.396 align:middle line:85% position:50% size:73%
and that was commonly shared.

01:41:09.463 --> 01:41:11.932 align:middle line:79% position:50% size:63%
I mean, you can look at
public record on the CPUc

01:41:11.999 --> 01:41:14.234 align:middle line:79% position:50% size:53%
docket, and that was
a commonly understood

01:41:14.301 --> 01:41:16.470 align:middle line:85% position:50% size:63%
kind of state of affairs.

01:41:16.537 --> 01:41:19.406 align:middle line:79% position:50% size:63%
And we just didn't know
at that time just how bad

01:41:19.473 --> 01:41:20.607 align:middle line:85% position:50% size:58%
that risk actually was.

01:41:20.674 --> 01:41:23.277 align:middle line:79% position:50% size:75%
It was lying there waiting for
us and we just didn't see it.

01:41:23.577 --> 01:41:26.447 align:middle line:79% position:50% size:60%
Um, is there a way to
kind of pierce that veil

01:41:26.513 --> 01:41:28.248 align:middle line:85% position:50% size:63%
for other types of risks?

01:41:28.315 --> 01:41:31.752 align:middle line:79% position:50% size:68%
I don't know, but I think
it's a it's a question very

01:41:31.819 --> 01:41:36.156 align:middle line:79% position:50% size:68%
much, I think, worth asking
and trying to see if we can

01:41:36.223 --> 01:41:37.658 align:middle line:85% position:50% size:53%
make any progress on.

01:41:38.058 --> 01:41:43.697 align:middle line:79% position:50% size:80%
I will note that after the fire,
we have issued requests to

01:41:43.764 --> 01:41:48.602 align:middle line:79% position:50% size:70%
utilities in their next WMP
to document the transmission

01:41:48.669 --> 01:41:50.671 align:middle line:79% position:50% size:60%
assets and the risks of
the transmission assets.

01:41:50.737 --> 01:41:54.441 align:middle line:79% position:50% size:68%
So, um, I also agree with
the notion that, hey, maybe

01:41:54.508 --> 01:41:56.810 align:middle line:79% position:50% size:70%
this is something we weren't
paying as much attention to,

01:41:56.877 --> 01:41:59.513 align:middle line:79% position:50% size:73%
but let's make sure we're not
missing it in the future.

01:41:59.880 --> 01:42:03.951 align:middle line:79% position:50% size:68%
Um, I think the third thing
and last thing I'll say is,

01:42:05.018 --> 01:42:08.989 align:middle line:79% position:50% size:68%
you know, Doctor Skinner
mentioned that distribution

01:42:09.056 --> 01:42:11.859 align:middle line:79% position:50% size:75%
fires are much more frequent
and that is true. That's data.

01:42:11.925 --> 01:42:14.495 align:middle line:79% position:50% size:65%
You know, I've seen that
data and there's just much

01:42:14.561 --> 01:42:18.365 align:middle line:79% position:50% size:70%
more frequently seeing fires
come from distribution.

01:42:18.599 --> 01:42:21.268 align:middle line:79% position:50% size:78%
And I think that can maybe lead
you to think that that's where

01:42:21.335 --> 01:42:22.636 align:middle line:85% position:50% size:68%
you need to put your focus.

01:42:23.036 --> 01:42:26.440 align:middle line:79% position:50% size:75%
Um, and, and it relates to
this concept of prioritization

01:42:26.640 --> 01:42:29.476 align:middle line:79% position:50% size:80%
and like, how do you prioritize,
what do you spend your time

01:42:29.543 --> 01:42:31.078 align:middle line:85% position:50% size:55%
and your resources on?

01:42:31.378 --> 01:42:33.480 align:middle line:79% position:50% size:63%
And so you, you look at
distribution, you look at

01:42:33.547 --> 01:42:36.550 align:middle line:79% position:50% size:73%
that high frequency and there
are many catastrophic fires.

01:42:36.617 --> 01:42:38.852 align:middle line:79% position:50% size:78%
I mean, there are many more
catastrophic fires started from

01:42:38.919 --> 01:42:41.922 align:middle line:79% position:50% size:68%
distribution infrastructure
than from transmission.

01:42:41.989 --> 01:42:44.424 align:middle line:85% position:50% size:53%
So that risk is real.

01:42:44.758 --> 01:42:48.295 align:middle line:79% position:50% size:78%
Um, but sometimes there's
a trade off in figuring out how

01:42:48.362 --> 01:42:52.199 align:middle line:79% position:50% size:73%
to allocate resources between
a pure risk prioritization

01:42:52.266 --> 01:42:56.169 align:middle line:79% position:50% size:65%
perspective and one that
ensures sort of uniform or

01:42:56.236 --> 01:42:59.973 align:middle line:79% position:50% size:75%
blanket or universal coverage
over a wide range of assets or

01:43:00.040 --> 01:43:01.375 align:middle line:85% position:50% size:43%
geographic areas.

01:43:01.441 --> 01:43:04.444 align:middle line:79% position:50% size:75%
And so I think that's maybe
a concept also to keep in mind

01:43:04.511 --> 01:43:07.714 align:middle line:79% position:50% size:70%
is that you can't just you
can't forget about the basic

01:43:07.781 --> 01:43:10.017 align:middle line:79% position:50% size:60%
blocking and tackling of
maintaining an electric

01:43:10.083 --> 01:43:14.388 align:middle line:79% position:50% size:75%
system and having some kind of
uniform coverage for all your

01:43:14.454 --> 01:43:15.889 align:middle line:85% position:50% size:68%
assets, regardless of risk.

01:43:15.956 --> 01:43:18.592 align:middle line:79% position:50% size:65%
Prioritization is probably
an essential piece of how

01:43:18.659 --> 01:43:19.960 align:middle line:85% position:50% size:65%
to run the system as well.

01:43:22.396 --> 01:43:25.999 align:middle line:79% position:50% size:78%
>> All right. Thank you. I want
to pivot a little bit, but I am

01:43:26.266 --> 01:43:30.137 align:middle line:79% position:50% size:75%
going to pull on a thread that
Assembly member John raised,

01:43:30.671 --> 01:43:34.575 align:middle line:79% position:50% size:80%
but I want to dig into what for
me is always a central question,

01:43:34.641 --> 01:43:38.412 align:middle line:79% position:50% size:75%
which is how are we getting
the biggest bang for our buck?

01:43:38.478 --> 01:43:40.948 align:middle line:79% position:50% size:45%
We do not have
unlimited dollars.

01:43:41.014 --> 01:43:43.083 align:middle line:79% position:50% size:65%
You know, frankly, whether
whether we're saying that

01:43:43.150 --> 01:43:45.385 align:middle line:79% position:50% size:63%
California ratepayers are
paying for this for this

01:43:45.452 --> 01:43:48.088 align:middle line:79% position:50% size:70%
California home insurance
policyholders are paying for

01:43:48.155 --> 01:43:52.025 align:middle line:79% position:50% size:73%
this, or California taxpayers
are paying for this surprise.

01:43:52.092 --> 01:43:53.126 align:middle line:85% position:50% size:63%
Were all the same people.

01:43:53.193 --> 01:43:59.132 align:middle line:79% position:50% size:73%
And we do not have unlimited
resources to throw at what is

01:43:59.533 --> 01:44:00.834 align:middle line:85% position:50% size:65%
phenomenally hard problem.

01:44:00.901 --> 01:44:03.170 align:middle line:79% position:50% size:68%
So how are we ensuring that
we're getting the biggest

01:44:03.236 --> 01:44:04.171 align:middle line:85% position:50% size:45%
bang for our buck?

01:44:04.237 --> 01:44:09.910 align:middle line:79% position:50% size:75%
And I want to, I guess, start,
uh, with I like, uh, Mr.

01:44:09.977 --> 01:44:12.813 align:middle line:79% position:50% size:68%
Gonzalez, I think you
called it your money slide.

01:44:12.879 --> 01:44:14.982 align:middle line:79% position:50% size:60%
So let's bring us back
here to the money slide.

01:44:15.282 --> 01:44:19.753 align:middle line:79% position:50% size:73%
So, uh, this lays out kind of
three buckets of activities

01:44:19.820 --> 01:44:22.055 align:middle line:79% position:50% size:68%
and I'm sure se, you know,
thinks of things similarly,

01:44:22.122 --> 01:44:25.993 align:middle line:79% position:50% size:80%
we've got prevention, detection,
protection, and a bunch of

01:44:26.059 --> 01:44:31.465 align:middle line:79% position:50% size:75%
strategies and activities that
you are, uh, engaging in.

01:44:31.665 --> 01:44:37.671 align:middle line:79% position:50% size:75%
How do you prioritize these
and how do you evaluate what's

01:44:37.738 --> 01:44:40.307 align:middle line:79% position:50% size:78%
giving you and your ratepayers
the biggest bang for your buck?

01:44:40.374 --> 01:44:42.709 align:middle line:79% position:50% size:75%
And then, Mr. Anderson, I have
the same question for you.

01:44:42.776 --> 01:44:47.948 align:middle line:79% position:50% size:63%
>> Sure. Thank you. Um,
the first answer is every

01:44:48.015 --> 01:44:49.549 align:middle line:85% position:50% size:53%
utility is different.

01:44:49.616 --> 01:44:53.153 align:middle line:79% position:50% size:70%
And I know people hate that,
but what works for Truckee

01:44:53.220 --> 01:44:56.123 align:middle line:79% position:50% size:60%
Donner pud were built to
a heavy loading district

01:44:56.189 --> 01:45:00.927 align:middle line:79% position:50% size:75%
standard because of, you know,
blizzards and ice and stuff.

01:45:00.994 --> 01:45:03.196 align:middle line:79% position:50% size:70%
So we're different in how
we're built, we're different

01:45:03.263 --> 01:45:04.598 align:middle line:85% position:50% size:48%
in our environment.

01:45:04.665 --> 01:45:08.035 align:middle line:79% position:50% size:63%
So I think the answer is
going to vary by utility.

01:45:08.101 --> 01:45:11.438 align:middle line:79% position:50% size:68%
And we're going to continue
to argue for local control.

01:45:11.505 --> 01:45:14.775 align:middle line:79% position:50% size:70%
And please let us make those
decisions because we live

01:45:14.841 --> 01:45:17.544 align:middle line:79% position:50% size:68%
it every day and we kind of
know what works for us.

01:45:18.245 --> 01:45:20.180 align:middle line:85% position:50% size:65%
So I'll only speak for us.

01:45:20.914 --> 01:45:25.686 align:middle line:79% position:50% size:70%
Truckee Donner pud from this
point, um, there's a trade

01:45:25.752 --> 01:45:30.190 align:middle line:79% position:50% size:63%
off between affordability
rates and risk reduction.

01:45:30.257 --> 01:45:34.094 align:middle line:79% position:50% size:68%
And our board and our staff
are forced to struggle with

01:45:34.161 --> 01:45:36.697 align:middle line:79% position:50% size:68%
that every day because we'd
like to do more.

01:45:36.763 --> 01:45:38.565 align:middle line:85% position:50% size:58%
But how can we do more?

01:45:38.999 --> 01:45:43.370 align:middle line:79% position:50% size:65%
I think one thing to point
out is the CPUc high fire

01:45:43.437 --> 01:45:47.340 align:middle line:85% position:50% size:73%
threat maps are pretty blunt.

01:45:48.075 --> 01:45:54.915 align:middle line:79% position:50% size:73%
So as an example, Donner Lake
in Truckee is entirely red in

01:45:55.115 --> 01:45:57.117 align:middle line:85% position:50% size:70%
tier three high fire threat.

01:45:57.484 --> 01:46:01.054 align:middle line:79% position:50% size:78%
But when you look at it in
the cloud fire maps, only about

01:46:01.121 --> 01:46:03.657 align:middle line:85% position:50% size:73%
20% of it's really high risk.

01:46:04.424 --> 01:46:08.695 align:middle line:79% position:50% size:73%
If a fire starts on the south
shore of Donner Lake with

01:46:08.762 --> 01:46:12.099 align:middle line:79% position:50% size:73%
a west southwest wind, it
blows right into Donner Lake.

01:46:12.165 --> 01:46:15.836 align:middle line:79% position:50% size:73%
And so that's not the circuit
you have to hit first.

01:46:16.036 --> 01:46:19.773 align:middle line:79% position:50% size:60%
But if a fire starts at
the west end, it'll blow

01:46:19.840 --> 01:46:20.774 align:middle line:85% position:50% size:50%
right up into Tahoe.

01:46:20.841 --> 01:46:24.745 align:middle line:79% position:50% size:75%
Donner and the town of Truckee
and take everything out.

01:46:24.978 --> 01:46:28.548 align:middle line:79% position:50% size:70%
And so I think some
granularity in that kind of,

01:46:28.615 --> 01:46:30.517 align:middle line:85% position:50% size:68%
hey, it's CPUc, tier three.

01:46:30.584 --> 01:46:32.152 align:middle line:85% position:50% size:73%
How come you're not doing it?

01:46:32.419 --> 01:46:36.490 align:middle line:79% position:50% size:80%
Or why are you doing it when we
all know that that part of that.

01:46:36.556 --> 01:46:39.659 align:middle line:79% position:50% size:58%
So I think that
granularity is an issue

01:46:40.193 --> 01:46:42.295 align:middle line:85% position:50% size:65%
and we're struggling with.

01:46:42.362 --> 01:46:43.997 align:middle line:85% position:50% size:78%
We have this great information.

01:46:44.064 --> 01:46:48.201 align:middle line:79% position:50% size:75%
But if I put it on my website,
it's an arsonist map to

01:46:48.268 --> 01:46:49.603 align:middle line:85% position:50% size:68%
burning down the community.

01:46:49.669 --> 01:46:51.938 align:middle line:79% position:50% size:40%
There's homeland
security issues.

01:46:52.239 --> 01:46:55.976 align:middle line:79% position:50% size:75%
If the private property owners
will complain that their value

01:46:56.042 --> 01:46:58.879 align:middle line:79% position:50% size:75%
went down because we put them
in a purple or a red or a blue

01:46:58.945 --> 01:47:00.180 align:middle line:85% position:50% size:50%
or whatever that is.

01:47:00.680 --> 01:47:05.018 align:middle line:79% position:50% size:63%
So how do you work
and collaborate and share

01:47:05.385 --> 01:47:08.789 align:middle line:79% position:50% size:53%
in a way that doesn't
expose the utility to

01:47:08.855 --> 01:47:10.357 align:middle line:85% position:50% size:45%
nefarious players?

01:47:10.724 --> 01:47:14.194 align:middle line:79% position:50% size:60%
And so for us, you know,
we've looked at all of

01:47:14.261 --> 01:47:16.696 align:middle line:85% position:50% size:63%
that and what's going on.

01:47:17.297 --> 01:47:21.635 align:middle line:79% position:50% size:55%
The other thing
I would add is SB 254.

01:47:21.701 --> 01:47:25.305 align:middle line:79% position:50% size:48%
And the earthquake
study had it right.

01:47:26.106 --> 01:47:28.842 align:middle line:79% position:50% size:58%
You know, you can't
just look at the spark.

01:47:28.909 --> 01:47:31.077 align:middle line:85% position:50% size:75%
You have to address the fuels.

01:47:31.278 --> 01:47:34.581 align:middle line:79% position:50% size:70%
You have to address the home
hardening and everything.

01:47:34.781 --> 01:47:38.852 align:middle line:79% position:50% size:80%
And then you have to acknowledge
that in the event of a fire.

01:47:38.919 --> 01:47:41.988 align:middle line:79% position:50% size:58%
I've heard numbers up
to $0.50 on the dollar.

01:47:42.055 --> 01:47:44.591 align:middle line:79% position:50% size:50%
Doesn't go to making
the victims whole.

01:47:45.058 --> 01:47:48.695 align:middle line:79% position:50% size:75%
It goes to all the transaction
costs out there.

01:47:49.396 --> 01:47:51.198 align:middle line:85% position:50% size:65%
as a public owned utility.

01:47:51.264 --> 01:47:53.233 align:middle line:85% position:50% size:63%
No shareholder behind us.

01:47:53.667 --> 01:47:56.136 align:middle line:79% position:50% size:60%
If you put it all on me,
you're putting it on

01:47:56.203 --> 01:47:58.638 align:middle line:79% position:50% size:75%
the community because you
and me are all the same thing.

01:47:58.705 --> 01:48:00.273 align:middle line:85% position:50% size:80%
And then it goes state, federal.

01:48:00.340 --> 01:48:02.676 align:middle line:79% position:50% size:50%
I mean, it just goes
right out the chain.

01:48:02.909 --> 01:48:07.180 align:middle line:79% position:50% size:63%
So how can we protect
victims, make them whole?

01:48:07.547 --> 01:48:11.751 align:middle line:79% position:50% size:65%
But, you know, with strict
liability today where it's

01:48:11.818 --> 01:48:17.390 align:middle line:79% position:50% size:75%
just shooting fish in a barrel
and our community pays for it.

01:48:17.457 --> 01:48:18.558 align:middle line:85% position:50% size:60%
There is no shareholder.

01:48:18.625 --> 01:48:20.627 align:middle line:79% position:50% size:45%
There is no one
else behind there.

01:48:20.961 --> 01:48:25.498 align:middle line:79% position:50% size:63%
So my answer is let us do
our work and support us.

01:48:25.832 --> 01:48:29.836 align:middle line:79% position:50% size:58%
But then look at what's
happening in society

01:48:29.903 --> 01:48:31.137 align:middle line:85% position:50% size:50%
with climate change.

01:48:31.338 --> 01:48:33.607 align:middle line:79% position:50% size:70%
And again, in Truckee, we're
dealing with the fuels,

01:48:33.673 --> 01:48:34.774 align:middle line:85% position:50% size:53%
we're home hardening.

01:48:34.841 --> 01:48:36.676 align:middle line:85% position:50% size:75%
We're doing everything we can.

01:48:36.910 --> 01:48:41.014 align:middle line:79% position:50% size:68%
If we can tighten up that
whole system, you have half

01:48:41.081 --> 01:48:42.616 align:middle line:85% position:50% size:60%
the problem financially.

01:48:42.682 --> 01:48:46.052 align:middle line:79% position:50% size:80%
You would before when you have
to make these decisions on who's

01:48:46.119 --> 01:48:47.787 align:middle line:85% position:50% size:73%
going to pay that 10 billion.

01:48:48.121 --> 01:48:50.790 align:middle line:79% position:50% size:75%
But, you know, at least you're
talking about ten instead of

01:48:50.857 --> 01:48:52.893 align:middle line:85% position:50% size:75%
20 and hopefully one day zero.

01:48:54.995 --> 01:48:57.197 align:middle line:79% position:50% size:60%
>> Thank you, Miss
Anderson. Same question.

01:48:58.098 --> 01:49:00.667 align:middle line:79% position:50% size:73%
>> I completely agree that
each utility is going to have

01:49:00.734 --> 01:49:03.470 align:middle line:79% position:50% size:73%
different answers to which
measures are going to be best

01:49:03.536 --> 01:49:06.840 align:middle line:79% position:50% size:75%
for their communities, whether
how their system is designed

01:49:06.907 --> 01:49:09.576 align:middle line:79% position:50% size:70%
or what their service area
is, the terrain that they're

01:49:09.643 --> 01:49:12.412 align:middle line:79% position:50% size:73%
working in, the height of
the trees, all of those other

01:49:12.479 --> 01:49:13.613 align:middle line:85% position:50% size:48%
things are factors.

01:49:13.947 --> 01:49:16.683 align:middle line:79% position:50% size:80%
What we look at, and I think all
the utilities do in partnership

01:49:16.750 --> 01:49:19.552 align:middle line:79% position:50% size:70%
here with our regulators, is
we look at the risk spend

01:49:19.619 --> 01:49:21.254 align:middle line:85% position:50% size:73%
efficiency of these measures.

01:49:21.588 --> 01:49:24.991 align:middle line:79% position:50% size:58%
And so how much risk am
I buying down for every

01:49:25.058 --> 01:49:25.992 align:middle line:85% position:50% size:68%
dollar that we're spending.

01:49:26.059 --> 01:49:28.962 align:middle line:79% position:50% size:70%
And that's a that's a pretty
universal approach that that

01:49:29.029 --> 01:49:31.831 align:middle line:79% position:50% size:70%
is used in the analysis that
we do and that we share

01:49:32.165 --> 01:49:33.533 align:middle line:85% position:50% size:55%
share with regulators.

01:49:33.733 --> 01:49:37.070 align:middle line:79% position:50% size:73%
That's how you saw Edison
coming to the conclusion that

01:49:37.137 --> 01:49:40.473 align:middle line:79% position:50% size:73%
we wanted to move as fast as
possible and get the most buy

01:49:40.540 --> 01:49:44.177 align:middle line:79% position:50% size:78%
down for the lowest cost, which
is why we have over 7200 miles

01:49:44.244 --> 01:49:47.380 align:middle line:79% position:50% size:73%
of covered conductor deployed
in the last 6 to 7 years.

01:49:47.814 --> 01:49:50.317 align:middle line:79% position:50% size:58%
Now we know, and Doctor
Skinner mentioned it.

01:49:50.383 --> 01:49:52.953 align:middle line:79% position:50% size:65%
It's not as much risk that
you remove when you do

01:49:53.019 --> 01:49:54.220 align:middle line:85% position:50% size:60%
targeted undergrounding.

01:49:54.587 --> 01:49:57.190 align:middle line:79% position:50% size:65%
But we have only been able
to do about 100 miles of

01:49:57.257 --> 01:49:58.992 align:middle line:79% position:50% size:65%
targeted undergrounding in
the same timeframe.

01:49:59.059 --> 01:50:01.227 align:middle line:85% position:50% size:55%
We've done 7200 miles.

01:50:01.294 --> 01:50:02.996 align:middle line:79% position:50% size:53%
And that goes back to
permitting and all of

01:50:03.063 --> 01:50:04.998 align:middle line:79% position:50% size:55%
those other challenges
too, that I mentioned.

01:50:05.465 --> 01:50:08.234 align:middle line:79% position:50% size:75%
But also, as we look at
the biggest bang for the buck,

01:50:08.301 --> 01:50:11.438 align:middle line:79% position:50% size:68%
as you said, chair, we have
to think about what those

01:50:11.504 --> 01:50:14.908 align:middle line:79% position:50% size:68%
other trade offs are beyond
the ignition reduction.

01:50:14.975 --> 01:50:18.011 align:middle line:79% position:50% size:68%
So PSPs is going to be your
biggest bang for the buck.

01:50:18.078 --> 01:50:21.047 align:middle line:79% position:50% size:68%
It's the cheapest tool that
does the most to eliminate

01:50:21.114 --> 01:50:22.048 align:middle line:85% position:50% size:53%
the risk of ignition.

01:50:22.115 --> 01:50:26.252 align:middle line:79% position:50% size:60%
But there are real risks
that are created when we

01:50:26.319 --> 01:50:27.854 align:middle line:85% position:50% size:68%
temporarily turn off power.

01:50:28.054 --> 01:50:30.924 align:middle line:79% position:50% size:73%
And our communities remind us
of that every time, not even

01:50:30.991 --> 01:50:32.092 align:middle line:85% position:50% size:73%
just when the power goes off.

01:50:32.158 --> 01:50:34.361 align:middle line:79% position:50% size:55%
Just leading up to
the power going off is

01:50:34.427 --> 01:50:37.130 align:middle line:79% position:50% size:60%
an incredible hardship
for our our communities.

01:50:37.197 --> 01:50:41.534 align:middle line:79% position:50% size:70%
And so it has to be not just
a what's the lowest common

01:50:41.601 --> 01:50:44.804 align:middle line:79% position:50% size:78%
denominator, but what is going
to make sense in this scenario.

01:50:44.871 --> 01:50:48.775 align:middle line:79% position:50% size:68%
So there are cases where in
our in our situation we are

01:50:48.842 --> 01:50:51.845 align:middle line:79% position:50% size:73%
doing cover conductor, but we
find it's still necessary to

01:50:51.911 --> 01:50:54.647 align:middle line:79% position:50% size:68%
go all the way to do target
undergrounding when it's

01:50:54.714 --> 01:50:58.118 align:middle line:79% position:50% size:75%
a highly critical area, maybe
with difficult ingress egress,

01:50:58.184 --> 01:51:00.487 align:middle line:79% position:50% size:68%
and you wouldn't be able to
evacuate the community.

01:51:00.553 --> 01:51:03.456 align:middle line:79% position:50% size:78%
So all those other factors have
to play into that might not

01:51:03.523 --> 01:51:06.426 align:middle line:79% position:50% size:78%
show up so neatly in the bottom
line of an equation.

01:51:06.760 --> 01:51:09.095 align:middle line:79% position:50% size:78%
But when you factor all of
those different pieces in, then

01:51:09.162 --> 01:51:13.767 align:middle line:79% position:50% size:80%
I think you do get a portfolio
that is achieving the most value

01:51:13.833 --> 01:51:16.202 align:middle line:79% position:50% size:73%
for the lowest cost, but it's
going to be using a number of

01:51:16.269 --> 01:51:18.138 align:middle line:85% position:50% size:78%
tools and not any one solution.

01:51:19.506 --> 01:51:22.242 align:middle line:79% position:50% size:68%
>> I have a follow up,
but before I ask, I'm going

01:51:22.308 --> 01:51:23.910 align:middle line:85% position:50% size:55%
to ask Doctor Skinner.

01:51:23.977 --> 01:51:28.915 align:middle line:79% position:50% size:60%
Um, Miss Anderson, uh,
mentioned the risk spend

01:51:28.982 --> 01:51:33.453 align:middle line:79% position:50% size:65%
analysis that all of our
utilities do and submit to

01:51:34.187 --> 01:51:36.022 align:middle line:85% position:50% size:78%
regulatory bodies for approval.

01:51:36.222 --> 01:51:37.724 align:middle line:85% position:50% size:65%
Is that is it good enough?

01:51:38.191 --> 01:51:40.960 align:middle line:79% position:50% size:70%
Are those assessments good
enough from your perspective

01:51:41.027 --> 01:51:42.262 align:middle line:85% position:50% size:58%
as the public advocate?

01:51:44.164 --> 01:51:48.468 align:middle line:79% position:50% size:78%
>> I'll pick on an example from
the SB 84 undergrounding plans.

01:51:48.668 --> 01:51:50.670 align:middle line:79% position:50% size:58%
There have been furious
back and forths between

01:51:50.737 --> 01:51:53.673 align:middle line:79% position:50% size:63%
us and the utilities over
the last several months,

01:51:53.740 --> 01:51:56.776 align:middle line:79% position:50% size:68%
over kind of what goes in
which part of the equation.

01:51:57.377 --> 01:51:59.446 align:middle line:79% position:50% size:65%
Commission recently issued
a proposed decision that

01:51:59.512 --> 01:52:03.116 align:middle line:79% position:50% size:65%
ultimately agreed with
the Safety Policy Division

01:52:03.183 --> 01:52:05.085 align:middle line:79% position:50% size:63%
staff proposal, which we
had supported through our

01:52:05.151 --> 01:52:06.553 align:middle line:85% position:50% size:63%
own independent analysis.

01:52:07.153 --> 01:52:11.191 align:middle line:79% position:50% size:58%
Um, all of it is a step
in the right direction.

01:52:11.458 --> 01:52:13.460 align:middle line:79% position:50% size:48%
We still don't know
what we don't know.

01:52:13.693 --> 01:52:15.995 align:middle line:79% position:50% size:50%
Um, to the assembly
members point around

01:52:16.062 --> 01:52:17.363 align:middle line:85% position:50% size:50%
transmission issues.

01:52:17.997 --> 01:52:24.137 align:middle line:79% position:50% size:70%
Um, and, but it's all a step
towards quantification.

01:52:24.437 --> 01:52:27.874 align:middle line:79% position:50% size:80%
And as we get to quantification,
we can agree, we can disagree.

01:52:28.141 --> 01:52:30.276 align:middle line:79% position:50% size:63%
But more often than not,
I found that we're moving

01:52:30.343 --> 01:52:33.713 align:middle line:79% position:50% size:73%
closer and closer to really
understanding where the areas

01:52:33.780 --> 01:52:40.854 align:middle line:79% position:50% size:78%
of risk, um, to the point from,
uh, Truckee Donner District

01:52:40.920 --> 01:52:41.955 align:middle line:85% position:50% size:60%
almost got it backwards.

01:52:42.822 --> 01:52:47.127 align:middle line:79% position:50% size:65%
Um, I, we absolutely agree
that there's different

01:52:47.193 --> 01:52:48.728 align:middle line:85% position:50% size:75%
solutions for different areas.

01:52:48.795 --> 01:52:50.930 align:middle line:79% position:50% size:58%
And I think that as was
highlighted, you know,

01:52:50.997 --> 01:52:53.199 align:middle line:79% position:50% size:63%
the use of stronger poles
out of certain materials

01:52:53.266 --> 01:52:56.469 align:middle line:79% position:50% size:70%
is finding effectiveness up
there a basically equivalent

01:52:56.536 --> 01:52:59.706 align:middle line:79% position:50% size:70%
to undergrounding, but lower
price, quicker to deploy.

01:52:59.973 --> 01:53:02.041 align:middle line:79% position:50% size:50%
Always love hearing
solutions like that.

01:53:02.275 --> 01:53:04.978 align:middle line:79% position:50% size:65%
But I think one of the key
things that I always want

01:53:05.044 --> 01:53:07.213 align:middle line:79% position:50% size:68%
us to be able to do is
we're quantifying is agree.

01:53:07.413 --> 01:53:12.152 align:middle line:79% position:50% size:73%
Is this an area of high risk,
medium risk to the point

01:53:12.218 --> 01:53:14.988 align:middle line:79% position:50% size:75%
about, you know, if the wind
blows, from what direction are

01:53:15.054 --> 01:53:17.757 align:middle line:79% position:50% size:73%
we going to be more likely to
have a catastrophic fire?

01:53:18.558 --> 01:53:19.959 align:middle line:85% position:50% size:75%
We're going to be less likely.

01:53:20.226 --> 01:53:21.828 align:middle line:85% position:50% size:65%
We're moving towards that.

01:53:21.895 --> 01:53:25.431 align:middle line:79% position:50% size:78%
There's still areas of
disagreement, but the agreement

01:53:25.498 --> 01:53:29.369 align:middle line:79% position:50% size:73%
is somewhat similar in some
ways to the notion of kind of

01:53:29.435 --> 01:53:33.506 align:middle line:79% position:50% size:73%
having a commons around this,
where all of us pooling our

01:53:33.573 --> 01:53:36.309 align:middle line:79% position:50% size:78%
minds together will hopefully
get to the right solution until

01:53:36.376 --> 01:53:39.712 align:middle line:79% position:50% size:80%
we realize there's some other
variable that we can't quantify.

01:53:40.146 --> 01:53:42.782 align:middle line:79% position:50% size:63%
And I believe the example
from Edison around egress

01:53:42.849 --> 01:53:44.918 align:middle line:85% position:50% size:63%
routes is a critical one.

01:53:45.385 --> 01:53:47.420 align:middle line:79% position:50% size:68%
One of my concerns is
always around the telephone

01:53:47.487 --> 01:53:48.588 align:middle line:85% position:50% size:58%
poles that are left up.

01:53:48.888 --> 01:53:51.491 align:middle line:79% position:50% size:73%
Most people, let alone people
trying to evacuate, are not

01:53:51.558 --> 01:53:54.761 align:middle line:79% position:50% size:78%
going to know the difference
between an electric line that's

01:53:54.827 --> 01:53:57.830 align:middle line:79% position:50% size:65%
active or reactive versus
a telecommunications line.

01:53:58.164 --> 01:54:00.934 align:middle line:79% position:50% size:75%
And so the more in those areas
that we can get undergrounded,

01:54:01.000 --> 01:54:04.404 align:middle line:79% position:50% size:75%
that's certainly a qualitative
factor that I know we look at

01:54:04.470 --> 01:54:07.807 align:middle line:79% position:50% size:68%
in our analyses around what
are the mitigation tools.

01:54:08.041 --> 01:54:12.245 align:middle line:79% position:50% size:80%
And it really gets down to every
last piece of mitigation done.

01:54:12.845 --> 01:54:15.748 align:middle line:79% position:50% size:53%
Is location
and project specific.

01:54:16.282 --> 01:54:18.751 align:middle line:79% position:50% size:60%
Your overall
programmatic assessment.

01:54:20.086 --> 01:54:23.156 align:middle line:79% position:50% size:78%
It's an assessment. It can help
you do overall arching ranking.

01:54:23.223 --> 01:54:27.660 align:middle line:79% position:50% size:80%
But you can have a ten mile span
of conductor, half of it in

01:54:27.727 --> 01:54:29.896 align:middle line:85% position:50% size:80%
the middle of a nice open field.

01:54:29.963 --> 01:54:33.399 align:middle line:79% position:50% size:68%
Very easy to put out if you
underground that you're not

01:54:33.466 --> 01:54:35.001 align:middle line:85% position:50% size:75%
really reducing a lot of risk.

01:54:35.201 --> 01:54:37.170 align:middle line:79% position:50% size:60%
On the other hand,
if you sectionalize that

01:54:37.237 --> 01:54:39.739 align:middle line:79% position:50% size:75%
And the other half is located,
you know, in the midst of

01:54:39.806 --> 01:54:42.375 align:middle line:79% position:50% size:68%
a canyon with a bunch of
pine trees, everything else

01:54:42.842 --> 01:54:45.645 align:middle line:79% position:50% size:75%
hardening that you might go
all the way to undergrounding.

01:54:45.878 --> 01:54:48.548 align:middle line:79% position:50% size:55%
And so it's really, in
a sense, we have to be

01:54:48.815 --> 01:54:52.452 align:middle line:79% position:50% size:68%
program wise and understand
the program, set a budget

01:54:52.518 --> 01:54:54.454 align:middle line:85% position:50% size:63%
for it, act towards that.

01:54:54.520 --> 01:54:57.323 align:middle line:79% position:50% size:78%
But then really, at the end of
the day, we need to be ensuring

01:54:57.390 --> 01:55:01.561 align:middle line:79% position:50% size:80%
that the utilities are hardening
in those riskiest places and not

01:55:01.628 --> 01:55:05.164 align:middle line:79% position:50% size:75%
just to do a whole span absent
a good reason, because then

01:55:05.231 --> 01:55:08.601 align:middle line:79% position:50% size:75%
we're putting good money after
bad money in a project that

01:55:08.668 --> 01:55:11.904 align:middle line:79% position:50% size:68%
could have been $5 million,
half underground and half

01:55:11.971 --> 01:55:16.242 align:middle line:79% position:50% size:78%
covered conductor is now a $20
billion or $20 million program,

01:55:16.309 --> 01:55:19.212 align:middle line:79% position:50% size:75%
and we've reduced just as much
risk as only spending five.

01:55:22.015 --> 01:55:25.218 align:middle line:79% position:50% size:68%
>> Okay, so, Miss Anderson,
my follow up question is

01:55:25.285 --> 01:55:28.254 align:middle line:79% position:50% size:73%
actually, I think when I've
asked other folks in hearings

01:55:28.321 --> 01:55:32.925 align:middle line:79% position:50% size:73%
like this and, um, I think
Assemblymember Garabedian was

01:55:32.992 --> 01:55:34.160 align:middle line:85% position:50% size:63%
alluding to this as well.

01:55:34.227 --> 01:55:39.465 align:middle line:79% position:50% size:75%
I think a lot of folks look at
the IOU construct and really

01:55:39.532 --> 01:55:43.403 align:middle line:79% position:50% size:78%
have a lot of questions about
whether incentives are properly

01:55:43.469 --> 01:55:48.441 align:middle line:79% position:50% size:73%
aligned between IOU customers
and IOU shareholders.

01:55:48.508 --> 01:55:51.144 align:middle line:79% position:50% size:73%
And I think particularly when
we're talking about these

01:55:51.210 --> 01:55:53.680 align:middle line:79% position:50% size:80%
wildfire mitigation investments,
because there's some of these

01:55:53.746 --> 01:55:59.085 align:middle line:79% position:50% size:73%
things on this slide that are
considered capital expenses.

01:55:59.152 --> 01:56:01.020 align:middle line:79% position:50% size:55%
And you therefore earn
a rate of return.

01:56:01.087 --> 01:56:02.922 align:middle line:79% position:50% size:65%
There's also some things
on this slide that are not

01:56:02.989 --> 01:56:04.324 align:middle line:85% position:50% size:70%
considered capital expenses.

01:56:04.390 --> 01:56:06.426 align:middle line:79% position:50% size:45%
And you don't earn
a rate of return.

01:56:06.693 --> 01:56:12.398 align:middle line:79% position:50% size:68%
So how as you're navigating
this how do you ensure that

01:56:12.465 --> 01:56:13.766 align:middle line:85% position:50% size:58%
incentives are aligned.

01:56:15.134 --> 01:56:17.236 align:middle line:79% position:50% size:68%
>> So I might I'm not sure
what other people have said

01:56:17.303 --> 01:56:19.172 align:middle line:79% position:50% size:73%
when you've asked them this
question, but the way I think

01:56:19.238 --> 01:56:22.141 align:middle line:79% position:50% size:70%
about it is there's actually
very little disagreement

01:56:22.208 --> 01:56:24.243 align:middle line:79% position:50% size:65%
between what is good for
the shareholder and what's

01:56:24.310 --> 01:56:25.345 align:middle line:85% position:50% size:55%
good for the customer.

01:56:25.645 --> 01:56:28.781 align:middle line:79% position:50% size:70%
The shareholder wants to see
that the utility is healthy,

01:56:28.848 --> 01:56:31.884 align:middle line:79% position:50% size:73%
that the customers are happy,
that we have a productive

01:56:31.951 --> 01:56:34.887 align:middle line:79% position:50% size:75%
and constructive relationship
with our regulator, that we're

01:56:34.954 --> 01:56:37.490 align:middle line:79% position:50% size:78%
proposing things that are
the right things to do and that

01:56:37.557 --> 01:56:38.691 align:middle line:85% position:50% size:70%
we're getting them approved.

01:56:39.025 --> 01:56:42.528 align:middle line:79% position:50% size:65%
We are in a time of growth
with almost an unlimited

01:56:42.595 --> 01:56:46.366 align:middle line:79% position:50% size:60%
need to do investment in
hardening and upgrading

01:56:46.432 --> 01:56:49.535 align:middle line:79% position:50% size:65%
and modernizing the system
all across the country.

01:56:49.602 --> 01:56:52.438 align:middle line:79% position:50% size:60%
There is no shortage of
opportunity for capital.

01:56:52.638 --> 01:56:56.109 align:middle line:79% position:50% size:73%
The most important thing then
becomes that we are doing

01:56:56.175 --> 01:57:00.012 align:middle line:79% position:50% size:78%
the absolute right capital that
we need to do, and we're doing

01:57:00.079 --> 01:57:01.848 align:middle line:85% position:50% size:75%
it as efficiently as possible.

01:57:01.914 --> 01:57:04.650 align:middle line:79% position:50% size:70%
And we're managing those O&M
costs not because it has

01:57:04.717 --> 01:57:07.253 align:middle line:79% position:50% size:65%
anything to do with it not
being capital, but because

01:57:07.320 --> 01:57:09.489 align:middle line:79% position:50% size:70%
those are all recovered from
the customer in the year.

01:57:09.555 --> 01:57:12.024 align:middle line:79% position:50% size:78%
We incur them and they have
the biggest impact on the bill.

01:57:12.392 --> 01:57:15.495 align:middle line:79% position:50% size:73%
And so it is good for
the customer when we're being

01:57:15.561 --> 01:57:18.531 align:middle line:79% position:50% size:68%
very strict and efficient
with O&M, and it's good for

01:57:18.598 --> 01:57:21.067 align:middle line:79% position:50% size:73%
the customer when we're doing
the right capital.

01:57:21.134 --> 01:57:23.503 align:middle line:79% position:50% size:70%
And that's also good for
the shareholder because they

01:57:23.569 --> 01:57:26.906 align:middle line:79% position:50% size:75%
want to see that our customers
are happy and that we have

01:57:26.973 --> 01:57:29.041 align:middle line:79% position:50% size:80%
the right relationship, and that
we're achieving the goals that

01:57:29.108 --> 01:57:30.610 align:middle line:85% position:50% size:75%
the state has laid out for us.

01:57:32.412 --> 01:57:35.081 align:middle line:79% position:50% size:63%
>> Yes, but you're also
an investor owned company

01:57:35.148 --> 01:57:39.118 align:middle line:79% position:50% size:80%
and you have a fiduciary duty to
deliver a shareholder return.

01:57:39.185 --> 01:57:41.220 align:middle line:79% position:50% size:50%
And that I don't say
that as a criticism.

01:57:41.287 --> 01:57:43.289 align:middle line:85% position:50% size:75%
That is that is the construct.

01:57:43.556 --> 01:57:48.861 align:middle line:79% position:50% size:73%
And so I understand, I guess,
the ethos of what of what you

01:57:48.928 --> 01:57:52.198 align:middle line:79% position:50% size:75%
just said, but it sort of
breaks down at either extreme.

01:57:52.265 --> 01:57:56.102 align:middle line:79% position:50% size:68%
So obviously, if all you're
all you're doing is, you

01:57:56.169 --> 01:58:00.773 align:middle line:79% position:50% size:73%
know, undergrounding, then
that and delivering a maximum

01:58:00.840 --> 01:58:04.076 align:middle line:79% position:50% size:68%
shareholder return, that's,
that's obviously going to

01:58:04.143 --> 01:58:05.211 align:middle line:85% position:50% size:60%
fall apart and not work.

01:58:05.278 --> 01:58:09.482 align:middle line:79% position:50% size:70%
But equally, if, if you were
to realize, oh, it turns out

01:58:09.549 --> 01:58:12.718 align:middle line:79% position:50% size:70%
that our most cost effective
strategies are vegetation

01:58:12.785 --> 01:58:15.455 align:middle line:79% position:50% size:65%
management and inspections
and patrols.

01:58:15.521 --> 01:58:17.890 align:middle line:79% position:50% size:63%
We're going to deploy all
of our resources there.

01:58:18.424 --> 01:58:22.595 align:middle line:79% position:50% size:80%
And by the way, that's not going
to earn any rate of return.

01:58:22.962 --> 01:58:26.466 align:middle line:79% position:50% size:60%
You're also that is just
it's actually completely

01:58:26.532 --> 01:58:30.603 align:middle line:79% position:50% size:73%
impossible for you as an IOU
to pursue that as a strategy.

01:58:30.670 --> 01:58:33.906 align:middle line:79% position:50% size:70%
So I guess my question is
kind of as you're navigating

01:58:34.307 --> 01:58:38.044 align:middle line:79% position:50% size:68%
this balance, how do you
make the case to your board

01:58:38.277 --> 01:58:41.247 align:middle line:79% position:50% size:73%
and how do you make the case
to your shareholders that you

01:58:41.314 --> 01:58:46.118 align:middle line:79% position:50% size:70%
would ever do something that
you know you would ever do?

01:58:46.185 --> 01:58:48.788 align:middle line:79% position:50% size:65%
Vegetation management
and inspection and patrols

01:58:49.055 --> 01:58:50.623 align:middle line:85% position:50% size:63%
versus a capital expense.

01:58:51.157 --> 01:58:54.060 align:middle line:79% position:50% size:63%
>> So I would start with,
we, we're never going to

01:58:54.126 --> 01:58:56.629 align:middle line:79% position:50% size:60%
operate in the extremes,
right, in either one.

01:58:56.829 --> 01:59:00.199 align:middle line:79% position:50% size:78%
And wildfire investment is only
one component of the investment

01:59:00.266 --> 01:59:03.035 align:middle line:79% position:50% size:73%
that all of the utilities p o
you or I or you are making.

01:59:03.102 --> 01:59:05.438 align:middle line:79% position:50% size:80%
We have load growth, we have
electric transportation, we have

01:59:05.505 --> 01:59:07.206 align:middle line:85% position:50% size:68%
infrastructure replacement.

01:59:07.273 --> 01:59:10.076 align:middle line:79% position:50% size:73%
There's if if all of a sudden
there was a solution that

01:59:10.142 --> 01:59:12.612 align:middle line:79% position:50% size:65%
could eliminate wildfire
ignition, it was 100% O&M.

01:59:12.678 --> 01:59:13.613 align:middle line:85% position:50% size:65%
I will sign up right away.

01:59:13.679 --> 01:59:15.481 align:middle line:79% position:50% size:53%
I don't have to ask
anybody's permission.

01:59:15.681 --> 01:59:17.850 align:middle line:79% position:50% size:55%
Like we are going to
do the right thing for

01:59:17.917 --> 01:59:18.951 align:middle line:85% position:50% size:45%
reducing the risk.

01:59:19.185 --> 01:59:22.722 align:middle line:79% position:50% size:53%
That's the right long
term decision for all

01:59:22.788 --> 01:59:25.591 align:middle line:79% position:50% size:60%
of us as owners, as
customers, as employees.

01:59:25.925 --> 01:59:27.894 align:middle line:79% position:50% size:58%
And so I don't, I don't
I know there's a lot of

01:59:27.960 --> 01:59:30.563 align:middle line:79% position:50% size:73%
discussion about this tension
in an investor owned model.

01:59:30.630 --> 01:59:33.633 align:middle line:79% position:50% size:78%
But I will tell you, inside
the walls there is not tension.

01:59:33.933 --> 01:59:36.536 align:middle line:79% position:50% size:58%
We are making the right
investments, and there

01:59:36.602 --> 01:59:40.640 align:middle line:79% position:50% size:60%
is certainly in a desire
to grow the company.

01:59:40.706 --> 01:59:45.044 align:middle line:79% position:50% size:78%
But we are growing because
the whole society is increasing

01:59:45.111 --> 01:59:47.146 align:middle line:85% position:50% size:70%
its reliance on electricity.

01:59:47.213 --> 01:59:51.284 align:middle line:79% position:50% size:73%
And so we need to make sure
that we are deploying capital

01:59:51.350 --> 01:59:54.453 align:middle line:79% position:50% size:78%
in the place that is maximizing
the value to the customer.

01:59:54.520 --> 01:59:56.889 align:middle line:79% position:50% size:53%
And when we do that,
it will be maximizing

01:59:56.956 --> 01:59:59.959 align:middle line:79% position:50% size:70%
the value to the shareholder
and the shareholder is

02:00:00.393 --> 02:00:02.962 align:middle line:79% position:50% size:60%
receiving when we manage
the business, right,

02:00:03.329 --> 02:00:04.797 align:middle line:85% position:50% size:70%
an authorized return, right.

02:00:04.864 --> 02:00:06.866 align:middle line:79% position:50% size:45%
There is a ceiling
in this business.

02:00:06.933 --> 02:00:11.103 align:middle line:79% position:50% size:70%
And so it's not that I'm not
even on paper incentivized

02:00:11.170 --> 02:00:12.638 align:middle line:85% position:50% size:53%
to maximize a return.

02:00:12.705 --> 02:00:16.108 align:middle line:79% position:50% size:75%
There's an authorized ceiling,
of which we generally are

02:00:16.175 --> 02:00:18.878 align:middle line:79% position:50% size:65%
returning lower than that
authorized year over year.

02:00:19.512 --> 02:00:22.748 align:middle line:79% position:50% size:73%
And our goal is to make sure
that customers can afford our

02:00:22.815 --> 02:00:26.218 align:middle line:79% position:50% size:68%
bills, that we're achieving
the state's objectives

02:00:26.285 --> 02:00:28.988 align:middle line:79% position:50% size:75%
and the objectives that our
regulators put on us, and that

02:00:29.055 --> 02:00:30.623 align:middle line:85% position:50% size:73%
this is all working together.

02:00:30.690 --> 02:00:33.559 align:middle line:79% position:50% size:75%
The more there is tension or
perception of tension, the bad

02:00:33.626 --> 02:00:35.328 align:middle line:85% position:50% size:75%
it is for every player, right?

02:00:35.962 --> 02:00:38.764 align:middle line:79% position:50% size:68%
>> And that's helpful. And,
and actually, if I can

02:00:38.831 --> 02:00:41.467 align:middle line:79% position:50% size:63%
sort of play back what
I what I heard you say is

02:00:42.401 --> 02:00:46.339 align:middle line:79% position:50% size:70%
right now, given this just
pivotal and transformational

02:00:46.405 --> 02:00:51.010 align:middle line:79% position:50% size:65%
moment that California is
in, we are making historic

02:00:51.077 --> 02:00:52.211 align:middle line:85% position:50% size:73%
and generational investments.

02:00:52.278 --> 02:00:55.581 align:middle line:79% position:50% size:80%
We need to increase transmission
by something like 350% over

02:00:55.648 --> 02:00:59.251 align:middle line:79% position:50% size:78%
the next 20 years, generation
by 300% over the next 20 years,

02:00:59.652 --> 02:01:08.928 align:middle line:79% position:50% size:78%
that in order to actually have
a stable utility and be able to

02:01:09.528 --> 02:01:12.565 align:middle line:79% position:50% size:80%
do that work and effectively
capitalize on those investments,

02:01:12.999 --> 02:01:16.202 align:middle line:79% position:50% size:80%
you need to do the wildfire work
at the lowest possible cost.

02:01:16.268 --> 02:01:18.971 align:middle line:79% position:50% size:70%
>> We need to do all of it
at the lowest possible cost.

02:01:19.038 --> 02:01:21.407 align:middle line:79% position:50% size:65%
So when I've got a list of
customers that are looking

02:01:21.474 --> 02:01:23.442 align:middle line:79% position:50% size:60%
to connect to the system
and they want to connect

02:01:23.509 --> 02:01:26.979 align:middle line:79% position:50% size:68%
tomorrow, and I need to do
a $300 million transmission

02:01:27.046 --> 02:01:28.080 align:middle line:85% position:50% size:55%
investment to do that.

02:01:28.147 --> 02:01:31.617 align:middle line:79% position:50% size:78%
The very first thing we look at
is, what can we do to increase

02:01:31.684 --> 02:01:33.886 align:middle line:79% position:50% size:68%
the utilization of the grid
that currently exists?

02:01:33.953 --> 02:01:36.088 align:middle line:79% position:50% size:70%
So I can connect them faster
because if I have to do

02:01:36.155 --> 02:01:38.624 align:middle line:79% position:50% size:75%
a transmission investment, I'm
talking about ten years before

02:01:38.691 --> 02:01:39.992 align:middle line:85% position:50% size:80%
I'm going to get them connected.

02:01:40.292 --> 02:01:43.462 align:middle line:79% position:50% size:55%
So we have to do every
aspect of the work at

02:01:43.529 --> 02:01:44.997 align:middle line:85% position:50% size:63%
the lowest possible cost.

02:01:45.364 --> 02:01:46.565 align:middle line:85% position:50% size:45%
>> Thank you. Mr..

02:01:47.233 --> 02:01:49.568 align:middle line:79% position:50% size:75%
>> I mean, I think that this
conversation really is getting

02:01:49.635 --> 02:01:52.805 align:middle line:79% position:50% size:63%
to the heart of, I think,
the most critical way of

02:01:52.872 --> 02:01:55.541 align:middle line:79% position:50% size:75%
addressing this going forward,
which is aligning incentives.

02:01:55.608 --> 02:01:59.645 align:middle line:79% position:50% size:78%
And I do think that the chair's
question, I think, gets at

02:01:59.712 --> 02:02:01.147 align:middle line:85% position:50% size:73%
reality, not just perception.

02:02:01.213 --> 02:02:05.051 align:middle line:79% position:50% size:63%
I mean, I think we're all
pushed back a bit on.

02:02:06.085 --> 02:02:12.124 align:middle line:79% position:50% size:75%
The answer from Miss Anderson,
is the data that we see shows

02:02:12.191 --> 02:02:17.096 align:middle line:79% position:50% size:75%
that the IOUs are not ordering
their investments in a way

02:02:17.163 --> 02:02:20.933 align:middle line:79% position:50% size:75%
that you would think that they
should be highest risk being

02:02:21.000 --> 02:02:22.068 align:middle line:85% position:50% size:40%
addressed first.

02:02:22.935 --> 02:02:24.437 align:middle line:85% position:50% size:70%
The IOUs are not doing that.

02:02:25.438 --> 02:02:27.373 align:middle line:85% position:50% size:80%
And that's what the reports say.

02:02:27.440 --> 02:02:29.442 align:middle line:79% position:50% size:45%
That's what other
experts have said.

02:02:29.709 --> 02:02:33.245 align:middle line:79% position:50% size:68%
And I think to the chair's
question, a lot of the data

02:02:33.312 --> 02:02:38.217 align:middle line:79% position:50% size:70%
points to the way in which
financial incentives work in

02:02:38.284 --> 02:02:40.252 align:middle line:79% position:50% size:65%
a rate case, and it's what
I was getting to earlier.

02:02:40.653 --> 02:02:43.355 align:middle line:79% position:50% size:58%
And so I don't think
that what we're talking

02:02:43.422 --> 02:02:44.356 align:middle line:85% position:50% size:55%
about is a perception.

02:02:44.423 --> 02:02:47.860 align:middle line:79% position:50% size:65%
I think it is a reality of
the way in which IOUs are

02:02:47.927 --> 02:02:49.295 align:middle line:85% position:50% size:58%
doing their mitigation.

02:02:49.495 --> 02:02:52.665 align:middle line:79% position:50% size:80%
And I think that one would argue
that based on that, we should

02:02:52.732 --> 02:02:56.335 align:middle line:79% position:50% size:80%
give you a rate of return on all
of this important stuff.

02:02:56.402 --> 02:02:58.370 align:middle line:79% position:50% size:65%
I mean, we've talked about
it in committee before.

02:02:58.971 --> 02:03:01.040 align:middle line:79% position:50% size:63%
A lot of the reforms that
didn't allow you to get

02:03:01.807 --> 02:03:05.111 align:middle line:79% position:50% size:73%
a rate of return on the first
5 billion of mitigation work

02:03:05.678 --> 02:03:08.247 align:middle line:79% position:50% size:73%
that could be argued to be
doing exactly the opposite of

02:03:08.314 --> 02:03:09.648 align:middle line:85% position:50% size:58%
what we want you to do.

02:03:09.949 --> 02:03:13.018 align:middle line:79% position:50% size:80%
And we can have a debate all day
long on what the rate may be

02:03:13.085 --> 02:03:14.520 align:middle line:85% position:50% size:78%
and how the rate case may work.

02:03:14.720 --> 02:03:17.323 align:middle line:79% position:50% size:73%
But I just want to make clear
that what the question is

02:03:17.389 --> 02:03:20.359 align:middle line:79% position:50% size:70%
getting at, and I think what
the answer sort of deflected

02:03:20.426 --> 02:03:22.461 align:middle line:85% position:50% size:73%
is perception versus reality.

02:03:22.528 --> 02:03:25.898 align:middle line:79% position:50% size:73%
The reality is the IOUs are
not ordering the highest risk

02:03:25.965 --> 02:03:29.001 align:middle line:79% position:50% size:73%
projects first, and I think
it is because of the business

02:03:29.068 --> 02:03:31.437 align:middle line:79% position:50% size:55%
model and the way that
the rate case works.

02:03:31.504 --> 02:03:34.340 align:middle line:79% position:50% size:60%
And so I do think that
we should have an honest

02:03:34.406 --> 02:03:35.541 align:middle line:85% position:50% size:68%
conversation going forward.

02:03:35.608 --> 02:03:36.809 align:middle line:85% position:50% size:65%
And that's why we're here.

02:03:36.876 --> 02:03:37.910 align:middle line:85% position:50% size:58%
We're on the same team.

02:03:38.477 --> 02:03:42.014 align:middle line:79% position:50% size:53%
We are trying to help
you get this right.

02:03:42.081 --> 02:03:44.416 align:middle line:79% position:50% size:60%
And if the answer is
sure, we want the lowest

02:03:44.483 --> 02:03:45.751 align:middle line:85% position:50% size:58%
cost way of doing this.

02:03:46.452 --> 02:03:49.355 align:middle line:79% position:50% size:63%
But in reality, you also
need to run the business.

02:03:50.523 --> 02:03:52.057 align:middle line:79% position:50% size:53%
Does it make sense.
And I'm just going to

02:03:52.124 --> 02:03:53.159 align:middle line:85% position:50% size:60%
ask a pointed follow up.

02:03:53.225 --> 02:03:55.961 align:middle line:79% position:50% size:65%
Does it make sense to not
allow you to get a rate of

02:03:56.028 --> 02:03:58.664 align:middle line:85% position:50% size:65%
return on all of this O&M?

02:03:59.031 --> 02:04:02.601 align:middle line:79% position:50% size:75%
That has to do with very
important wildfire mitigation,

02:04:02.668 --> 02:04:05.004 align:middle line:79% position:50% size:80%
because you're not getting
a rate of return on a lot of it.

02:04:05.271 --> 02:04:07.106 align:middle line:79% position:50% size:55%
And I think because of
that, some of the work

02:04:07.173 --> 02:04:08.140 align:middle line:85% position:50% size:48%
isn't getting done.

02:04:08.207 --> 02:04:10.609 align:middle line:79% position:50% size:58%
>> So we don't get
a rate of return on O&M

02:04:10.943 --> 02:04:13.045 align:middle line:85% position:50% size:48%
broadly on any O&M.

02:04:13.679 --> 02:04:16.615 align:middle line:79% position:50% size:78%
That doesn't stop us from doing
O&M that needs to get done.

02:04:16.682 --> 02:04:18.117 align:middle line:79% position:50% size:43%
So we spend over
a half a billion.

02:04:18.184 --> 02:04:19.185 align:middle line:79% position:50% size:48%
>> But do you think
that makes sense?

02:04:19.251 --> 02:04:21.020 align:middle line:79% position:50% size:58%
Does it make sense that
you don't get a rate of

02:04:21.086 --> 02:04:22.087 align:middle line:85% position:50% size:35%
return on O&M?

02:04:22.588 --> 02:04:25.825 align:middle line:79% position:50% size:80%
>> So if I think you would have
to rebalance the whole equation,

02:04:25.891 --> 02:04:29.895 align:middle line:79% position:50% size:80%
because the objective is not to
increase earnings, the objective

02:04:29.962 --> 02:04:33.799 align:middle line:79% position:50% size:80%
is to make sure that we are able
to be attractive to investors

02:04:33.866 --> 02:04:37.269 align:middle line:79% position:50% size:80%
who have other options for where
they can put the money.

02:04:37.970 --> 02:04:41.006 align:middle line:79% position:50% size:60%
O&M capital and rates of
return are one factor.

02:04:41.073 --> 02:04:43.843 align:middle line:79% position:50% size:73%
But I think the broader
question that I'm hoping that

02:04:43.909 --> 02:04:46.445 align:middle line:79% position:50% size:73%
the committee and the broader
the legislature is

02:04:46.512 --> 02:04:49.248 align:middle line:79% position:50% size:63%
focusing on is addressing
the liability issues.

02:04:49.315 --> 02:04:53.319 align:middle line:79% position:50% size:75%
And I think that my colleague
here from Truckee, Donner, has

02:04:53.385 --> 02:04:57.056 align:middle line:79% position:50% size:78%
also articulated a lot of those
issues very well about how not

02:04:57.122 --> 02:05:00.359 align:middle line:79% position:50% size:75%
having a cap on liability, not
having certainty long term

02:05:00.426 --> 02:05:02.928 align:middle line:79% position:50% size:75%
on how this is going to be
managed, that is a much bigger

02:05:02.995 --> 02:05:06.599 align:middle line:79% position:50% size:75%
impact on the health of all of
our companies, investor or non

02:05:06.665 --> 02:05:10.669 align:middle line:79% position:50% size:68%
investor owned than the O&M
capital splits.

02:05:11.036 --> 02:05:12.304 align:middle line:85% position:50% size:63%
We welcome conversations.

02:05:12.371 --> 02:05:15.441 align:middle line:79% position:50% size:70%
If you would like to revisit
looking at O&M and capital

02:05:15.507 --> 02:05:18.611 align:middle line:79% position:50% size:75%
and rates of return, I don't
think ultimately the objective

02:05:18.677 --> 02:05:20.846 align:middle line:85% position:50% size:78%
is to maximize rates of return.

02:05:20.913 --> 02:05:23.449 align:middle line:79% position:50% size:73%
I think what we want to do is
make sure that we continue to

02:05:23.515 --> 02:05:26.919 align:middle line:79% position:50% size:78%
be an attractive option for
the lowest cost capital, and as

02:05:26.986 --> 02:05:31.056 align:middle line:79% position:50% size:68%
we face downgrades, we are
going to be more expensive.

02:05:31.123 --> 02:05:33.492 align:middle line:79% position:50% size:58%
And those costs in that
year will be passed

02:05:33.559 --> 02:05:34.927 align:middle line:85% position:50% size:63%
directly on to customers.

02:05:35.160 --> 02:05:38.063 align:middle line:79% position:50% size:78%
And so that's the solution that
I hope we're focusing on first.

02:05:38.130 --> 02:05:41.233 align:middle line:79% position:50% size:73%
>> Yeah. And let me be clear,
I don't think anyone up here

02:05:41.467 --> 02:05:46.171 align:middle line:79% position:50% size:70%
would ever be advocating for
maximizing investor return.

02:05:46.238 --> 02:05:47.206 align:middle line:85% position:50% size:65%
That's not why we're here.

02:05:47.273 --> 02:05:49.375 align:middle line:79% position:50% size:60%
And that's not the point
of the question.

02:05:49.441 --> 02:05:52.878 align:middle line:79% position:50% size:68%
The point is to incentivize
better outcomes.

02:05:53.479 --> 02:05:56.815 align:middle line:79% position:50% size:65%
And I think that the where
we are now is we don't

02:05:56.882 --> 02:05:58.183 align:middle line:85% position:50% size:50%
have great outcomes.

02:05:58.651 --> 02:06:00.619 align:middle line:79% position:50% size:65%
And I think that the way
that you incentivize great

02:06:00.686 --> 02:06:04.156 align:middle line:79% position:50% size:73%
outcomes or better outcomes
is the way that you structure

02:06:04.223 --> 02:06:05.291 align:middle line:85% position:50% size:53%
financial incentives.

02:06:05.891 --> 02:06:08.527 align:middle line:79% position:50% size:78%
And I, I don't think that we've
structured it the right way.

02:06:08.928 --> 02:06:13.899 align:middle line:79% position:50% size:68%
I just don't and I don't
understand why we couldn't,

02:06:13.966 --> 02:06:17.236 align:middle line:79% position:50% size:78%
to your point, recalibrate
the whole system so that you're

02:06:17.303 --> 02:06:21.273 align:middle line:79% position:50% size:78%
just as incentivized to do X,
which is going to keep us safe.

02:06:21.473 --> 02:06:25.177 align:middle line:79% position:50% size:73%
As you are Y, which may keep
us safe as well, but probably

02:06:25.244 --> 02:06:26.845 align:middle line:85% position:50% size:60%
should be going after X.

02:06:27.079 --> 02:06:28.647 align:middle line:85% position:50% size:80%
And so I think that's the point.

02:06:28.914 --> 02:06:31.951 align:middle line:79% position:50% size:65%
No one up here is saying,
we are trying to construct

02:06:32.451 --> 02:06:35.387 align:middle line:79% position:50% size:68%
a system where we're just
maximizing investor return.

02:06:35.454 --> 02:06:38.624 align:middle line:79% position:50% size:75%
I mean, I think that's exactly
the problem that we're trying

02:06:38.691 --> 02:06:39.758 align:middle line:85% position:50% size:50%
to address actually.

02:06:39.959 --> 02:06:43.329 align:middle line:79% position:50% size:80%
So I'm glad though, that we're
having this conversation because

02:06:43.395 --> 02:06:46.332 align:middle line:79% position:50% size:73%
I think going forward and for
future hearings and reforms,

02:06:46.565 --> 02:06:48.801 align:middle line:79% position:50% size:80%
this is at the heart of what
we're going to be talking about.

02:06:48.867 --> 02:06:51.804 align:middle line:79% position:50% size:68%
I do not think that you can
address wildfire mitigation

02:06:51.870 --> 02:06:54.640 align:middle line:79% position:50% size:75%
properly without talking
about precisely what the chair

02:06:54.707 --> 02:06:57.443 align:middle line:79% position:50% size:70%
was asking, which is this
inherent tension in the rate

02:06:57.509 --> 02:07:02.081 align:middle line:79% position:50% size:73%
case that every expert across
the country is talked about

02:07:02.147 --> 02:07:05.584 align:middle line:79% position:50% size:73%
on podcasts after podcast has
written papers about.

02:07:05.651 --> 02:07:08.587 align:middle line:79% position:50% size:65%
Many of the experts up
here would agree that it's

02:07:08.654 --> 02:07:11.523 align:middle line:79% position:50% size:68%
not a perfect rate case,
and the way it incentivizes

02:07:11.590 --> 02:07:14.626 align:middle line:79% position:50% size:75%
IOUs to do wildfire mitigation
can be improved.

02:07:14.693 --> 02:07:17.463 align:middle line:79% position:50% size:70%
So I just think that this is
something we're going to be

02:07:17.529 --> 02:07:18.630 align:middle line:85% position:50% size:63%
continuing to talk about.

02:07:19.264 --> 02:07:23.268 align:middle line:79% position:50% size:70%
>> Yes, 100%. And just to to
respond to, I think the very

02:07:23.335 --> 02:07:27.206 align:middle line:79% position:50% size:70%
important point that you
made regarding, uh, wildfire

02:07:27.272 --> 02:07:32.544 align:middle line:79% position:50% size:73%
liability and, uh, the impact
that that has on your ability

02:07:32.611 --> 02:07:37.282 align:middle line:79% position:50% size:80%
to both raise and borrow capital
and the impact that then that

02:07:37.349 --> 02:07:41.220 align:middle line:79% position:50% size:80%
has on California ratepayers,
um, is foundationally important.

02:07:41.286 --> 02:07:43.655 align:middle line:79% position:50% size:70%
And certainly we're not
going to dig into that here,

02:07:43.722 --> 02:07:47.559 align:middle line:79% position:50% size:75%
but that is exactly the topic
of our hearing next Wednesday.

02:07:47.626 --> 02:07:50.195 align:middle line:85% position:50% size:65%
So stay tuned. Stay tuned.

02:07:50.429 --> 02:07:52.965 align:middle line:79% position:50% size:40%
Um, did you have
any other. Okay.

02:07:53.232 --> 02:07:57.236 align:middle line:79% position:50% size:78%
Um all right. I'm going to just
pivot to, to one last topic.

02:07:57.302 --> 02:08:04.777 align:middle line:79% position:50% size:80%
Um, which, uh, miss, uh, or
doctor, uh, Altintas had raised,

02:08:04.843 --> 02:08:08.247 align:middle line:79% position:50% size:75%
uh, in, in her comments, which
is really around innovation.

02:08:08.514 --> 02:08:12.217 align:middle line:79% position:50% size:70%
And I feel like I, you know,
between, you know, myself

02:08:12.284 --> 02:08:13.819 align:middle line:85% position:50% size:80%
and our are incredibly credible.

02:08:13.886 --> 02:08:16.255 align:middle line:79% position:50% size:68%
Committee consultant Laura,
by the way, just celebrated

02:08:16.321 --> 02:08:17.723 align:middle line:85% position:50% size:63%
her birthday on Saturday.

02:08:17.790 --> 02:08:20.225 align:middle line:85% position:50% size:73%
So there you go. Right? Yeah.

02:08:20.292 --> 02:08:21.693 align:middle line:79% position:50% size:40%
Writing probably
the backgrounder

02:08:21.760 --> 02:08:22.761 align:middle line:85% position:50% size:43%
for this hearing.

02:08:23.228 --> 02:08:27.266 align:middle line:79% position:50% size:78%
Um, I think we get a phone call
almost every week from somebody

02:08:27.332 --> 02:08:30.969 align:middle line:79% position:50% size:68%
who's got like the next hot
wildfire technology thing

02:08:31.036 --> 02:08:34.039 align:middle line:79% position:50% size:78%
that's going to transform
everything and save California.

02:08:34.573 --> 02:08:37.543 align:middle line:79% position:50% size:60%
Um, so I guess how do
you and I'd love to hear

02:08:37.609 --> 02:08:42.848 align:middle line:79% position:50% size:60%
from both Miss Anderson
as well as, um, from Mr.

02:08:43.715 --> 02:08:49.221 align:middle line:79% position:50% size:78%
Poncelet. Uh, how do you
evaluate emerging technologies?

02:08:49.288 --> 02:08:50.222 align:middle line:85% position:50% size:53%
How do you test them?

02:08:50.289 --> 02:08:52.624 align:middle line:79% position:50% size:68%
How do you ensure you're
deploying them effectively?

02:08:53.025 --> 02:08:56.462 align:middle line:79% position:50% size:63%
How do you and how do you
compare them to the other

02:08:56.528 --> 02:08:57.563 align:middle line:85% position:50% size:60%
offerings on the market?

02:08:57.629 --> 02:09:01.366 align:middle line:79% position:50% size:78%
Because I also think technology
and innovation and getting

02:09:01.433 --> 02:09:04.169 align:middle line:79% position:50% size:78%
smarter about how we're
tackling these problems is also

02:09:04.236 --> 02:09:06.805 align:middle line:79% position:50% size:75%
an incredibly important part
of ensuring that we're getting

02:09:06.872 --> 02:09:09.308 align:middle line:79% position:50% size:75%
the biggest bang for our buck,
because we absolutely cannot

02:09:09.374 --> 02:09:12.478 align:middle line:79% position:50% size:78%
just keep doing the same thing
that we have been doing because

02:09:12.544 --> 02:09:14.213 align:middle line:85% position:50% size:73%
it's not working well enough.

02:09:14.680 --> 02:09:16.515 align:middle line:79% position:50% size:53%
So, Mr. Poncelet,
we'll start with you.

02:09:16.582 --> 02:09:20.886 align:middle line:79% position:50% size:60%
>> Thank you chair. Um,
we're not a big utility.

02:09:21.220 --> 02:09:26.258 align:middle line:79% position:50% size:70%
Uh, we try not to be the tip
of the spear or, as we say,

02:09:26.325 --> 02:09:27.960 align:middle line:85% position:50% size:58%
too far over your skis.

02:09:28.494 --> 02:09:33.298 align:middle line:79% position:50% size:65%
Um, and part of the answer
is collaboration.

02:09:33.599 --> 02:09:37.035 align:middle line:79% position:50% size:70%
You know, we don't get cloud
fire working the way it is.

02:09:37.102 --> 02:09:40.305 align:middle line:79% position:50% size:73%
If NV energy and liberty
don't put millions into it in

02:09:40.372 --> 02:09:43.375 align:middle line:79% position:50% size:70%
the last five years and then
don't share it with us.

02:09:43.442 --> 02:09:46.578 align:middle line:79% position:50% size:60%
So we look at it and go,
wow, I need that too.

02:09:46.979 --> 02:09:53.185 align:middle line:79% position:50% size:70%
Um, public power through
a PPA and their deed program

02:09:53.252 --> 02:09:54.820 align:middle line:85% position:50% size:50%
does joint research.

02:09:54.887 --> 02:09:58.857 align:middle line:79% position:50% size:60%
That is, the results are
shared with everyone.

02:09:59.291 --> 02:10:03.262 align:middle line:79% position:50% size:73%
Um, Edison does similar stuff
and I think the Edison's

02:10:03.328 --> 02:10:07.099 align:middle line:79% position:50% size:75%
and the a PPA are doing better
at putting that all together

02:10:07.166 --> 02:10:08.934 align:middle line:85% position:50% size:70%
and sharing the information.

02:10:09.201 --> 02:10:13.906 align:middle line:79% position:50% size:80%
So from a science point of view,
you know, I think it's critical

02:10:13.972 --> 02:10:19.311 align:middle line:79% position:50% size:80%
that we not jump too fast at new
technologies, but that we pick

02:10:19.378 --> 02:10:20.546 align:middle line:85% position:50% size:48%
the ones that work.

02:10:20.612 --> 02:10:24.249 align:middle line:79% position:50% size:75%
So as a small utility, we have
the luxury of doing that.

02:10:24.883 --> 02:10:27.653 align:middle line:79% position:50% size:60%
You're I'll give you
an example of innovation

02:10:27.719 --> 02:10:30.155 align:middle line:85% position:50% size:75%
that's going through my brain.

02:10:30.222 --> 02:10:32.824 align:middle line:79% position:50% size:53%
And, you know, our
brain is we have this

02:10:32.891 --> 02:10:34.860 align:middle line:85% position:50% size:60%
liability problem, okay.

02:10:34.927 --> 02:10:39.431 align:middle line:79% position:50% size:78%
And we're we look the same when
it comes to poles and wires

02:10:39.498 --> 02:10:43.869 align:middle line:79% position:50% size:65%
and physics and economics,
pretty much, you know, it

02:10:43.936 --> 02:10:45.437 align:middle line:85% position:50% size:53%
applies to all of us.

02:10:45.804 --> 02:10:49.074 align:middle line:79% position:50% size:53%
But there's this
issue of shareholders

02:10:49.141 --> 02:10:52.778 align:middle line:79% position:50% size:65%
and philosophically, what
is the right risk and what

02:10:52.844 --> 02:10:54.379 align:middle line:85% position:50% size:50%
is the right return.

02:10:54.680 --> 02:10:57.716 align:middle line:79% position:50% size:70%
And just like insurance
and trial lawyers, you can't

02:10:57.783 --> 02:11:00.519 align:middle line:79% position:50% size:68%
just take all the profit
away or they'll just leave.

02:11:01.153 --> 02:11:03.789 align:middle line:79% position:50% size:70%
And I don't know the answers
to those questions, but I'm

02:11:03.855 --> 02:11:07.626 align:middle line:79% position:50% size:70%
counting on you and some
smart people to figure those

02:11:07.693 --> 02:11:08.727 align:middle line:85% position:50% size:28%
things out.

02:11:08.794 --> 02:11:11.129 align:middle line:79% position:50% size:58%
But we know the strict
liability is a problem.

02:11:11.196 --> 02:11:13.532 align:middle line:79% position:50% size:55%
We provide a public
service, and an act of

02:11:13.599 --> 02:11:15.167 align:middle line:85% position:50% size:50%
God can take us out.

02:11:15.234 --> 02:11:19.171 align:middle line:79% position:50% size:60%
And right now we pay
societal cost of climate

02:11:19.238 --> 02:11:21.473 align:middle line:79% position:50% size:55%
change, essentially,
and it's killing rates

02:11:21.540 --> 02:11:23.041 align:middle line:85% position:50% size:70%
and killing everything else.

02:11:23.475 --> 02:11:28.247 align:middle line:79% position:50% size:63%
So while I'm sensitive to
the IOU problem and what

02:11:28.313 --> 02:11:31.516 align:middle line:79% position:50% size:80%
are the right business
incentives and what is the right

02:11:31.583 --> 02:11:36.221 align:middle line:79% position:50% size:78%
shareholder return and how much
risk and, you know, liability

02:11:36.288 --> 02:11:39.925 align:middle line:79% position:50% size:73%
should shareholders assume in
the event of a fire?

02:11:40.259 --> 02:11:42.694 align:middle line:79% position:50% size:53%
Those questions don't
apply to the pews.

02:11:43.295 --> 02:11:44.796 align:middle line:85% position:50% size:70%
It's we're much more simple.

02:11:44.863 --> 02:11:46.064 align:middle line:85% position:50% size:53%
It's cost of service.

02:11:46.131 --> 02:11:49.001 align:middle line:79% position:50% size:68%
And if you put it on us, it
goes on to the community.

02:11:49.334 --> 02:11:53.305 align:middle line:79% position:50% size:68%
And so how could we work
within that if we could get

02:11:53.372 --> 02:11:58.377 align:middle line:79% position:50% size:75%
a solution to strict liability
that applies to pews?

02:11:58.443 --> 02:12:02.314 align:middle line:79% position:50% size:75%
Because maybe that's a problem
that the legislature can bite

02:12:02.381 --> 02:12:07.986 align:middle line:79% position:50% size:73%
off and actually handle, then
that would allow us to tie

02:12:08.053 --> 02:12:11.023 align:middle line:79% position:50% size:75%
that risk reduction that we're
doing in the community.

02:12:11.089 --> 02:12:15.594 align:middle line:79% position:50% size:75%
Wide risk to overall
insurability and bond ability.

02:12:15.894 --> 02:12:18.630 align:middle line:79% position:50% size:65%
And then we could get
a little POU captive going

02:12:18.697 --> 02:12:19.931 align:middle line:85% position:50% size:60%
in the insurance market.

02:12:19.998 --> 02:12:24.102 align:middle line:79% position:50% size:80%
And we could demonstrate that
with limits of liability, proper

02:12:24.169 --> 02:12:28.407 align:middle line:79% position:50% size:80%
management and oversight, we can
actually reduce risk and then

02:12:28.473 --> 02:12:31.209 align:middle line:79% position:50% size:78%
get the financial benefits that
come with that.

02:12:31.543 --> 02:12:33.345 align:middle line:85% position:50% size:80%
To me, that would be innovation.

02:12:33.879 --> 02:12:36.715 align:middle line:79% position:50% size:55%
Um, and we're looking
for help to get there.

02:12:38.317 --> 02:12:39.918 align:middle line:85% position:50% size:70%
>> Thank you, Miss Anderson.

02:12:39.985 --> 02:12:43.088 align:middle line:79% position:50% size:78%
>> So we are, as you said,
always being pitched new ideas.

02:12:43.155 --> 02:12:45.691 align:middle line:79% position:50% size:73%
But we're also always testing
out and trying new things.

02:12:45.757 --> 02:12:49.528 align:middle line:79% position:50% size:78%
We do a lot of learning between
the utilities in the state

02:12:49.594 --> 02:12:50.829 align:middle line:85% position:50% size:65%
and then around the world.

02:12:50.896 --> 02:12:54.266 align:middle line:79% position:50% size:75%
Even cover conductor, in fact,
is something that utilities in

02:12:54.333 --> 02:12:57.469 align:middle line:79% position:50% size:75%
Japan and Korea had advanced
long before anyone in the U.S.

02:12:57.536 --> 02:13:00.339 align:middle line:79% position:50% size:78%
had used it. So when we started
deploying it, we did a lot of

02:13:00.405 --> 02:13:03.875 align:middle line:79% position:50% size:75%
benchmarking, continue to with
utilities in Japan.

02:13:04.176 --> 02:13:06.945 align:middle line:79% position:50% size:75%
And so what we can learn from
what other people are starting

02:13:07.012 --> 02:13:10.849 align:middle line:79% position:50% size:73%
to deploy, but then also what
can we learn and deploy from

02:13:10.916 --> 02:13:13.352 align:middle line:79% position:50% size:70%
technology we're using in
other parts of the business?

02:13:13.418 --> 02:13:17.823 align:middle line:79% position:50% size:70%
So drones is a central part
to wildfire risk management.

02:13:17.889 --> 02:13:20.826 align:middle line:79% position:50% size:68%
Now, we would not have said
that five years ago, but we

02:13:20.892 --> 02:13:23.295 align:middle line:79% position:50% size:63%
use drones now to inspect
transmission like Doctor

02:13:23.362 --> 02:13:25.464 align:middle line:79% position:50% size:70%
Skinner was talking about
things that you can't get up

02:13:25.530 --> 02:13:28.233 align:middle line:79% position:50% size:75%
without climbing and you can't
take outages on necessarily to

02:13:28.300 --> 02:13:29.768 align:middle line:85% position:50% size:63%
climb on a regular basis.

02:13:29.835 --> 02:13:31.436 align:middle line:85% position:50% size:68%
We can see now with drones.

02:13:31.636 --> 02:13:34.606 align:middle line:79% position:50% size:63%
And then we're also using
drones for being able to

02:13:34.673 --> 02:13:38.677 align:middle line:79% position:50% size:68%
restore faster after a PSPs
event, because I have to do

02:13:38.744 --> 02:13:41.346 align:middle line:79% position:50% size:68%
a patrol from end to end of
whatever was de-energized.

02:13:41.413 --> 02:13:43.248 align:middle line:79% position:50% size:48%
I can do that much
faster with drones.

02:13:43.448 --> 02:13:45.550 align:middle line:79% position:50% size:68%
So how do we use these
technologies that customers

02:13:45.617 --> 02:13:48.553 align:middle line:79% position:50% size:73%
are already paying for us
using drones for inspections?

02:13:48.620 --> 02:13:50.655 align:middle line:79% position:50% size:45%
How do we get more
value out of them?

02:13:50.722 --> 02:13:52.791 align:middle line:79% position:50% size:58%
Things like using lidar
attached to the drone.

02:13:52.858 --> 02:13:55.060 align:middle line:79% position:50% size:60%
So you're not just
relying on the human eye

02:13:55.127 --> 02:13:56.928 align:middle line:85% position:50% size:50%
to see is that 18in?

02:13:56.995 --> 02:14:00.732 align:middle line:79% position:50% size:60%
You can actually measure
it with technology, even

02:14:00.799 --> 02:14:03.135 align:middle line:79% position:50% size:73%
learning from other
utilities that have done more

02:14:03.201 --> 02:14:04.603 align:middle line:85% position:50% size:70%
undergrounding than we have.

02:14:05.036 --> 02:14:07.038 align:middle line:79% position:50% size:63%
Learning about, you know,
the directional boring

02:14:07.105 --> 02:14:08.540 align:middle line:85% position:50% size:58%
they do or some of the.

02:14:09.241 --> 02:14:11.009 align:middle line:79% position:50% size:60%
Distribution lines that
they're putting right on

02:14:11.076 --> 02:14:12.344 align:middle line:85% position:50% size:53%
the ground level. So.

02:14:12.411 --> 02:14:14.713 align:middle line:79% position:50% size:55%
I think there's a real
opportunity within

02:14:14.780 --> 02:14:16.314 align:middle line:85% position:50% size:73%
the utility business we have.

02:14:16.381 --> 02:14:19.918 align:middle line:79% position:50% size:63%
Groups like, you know, we
talked about APA, LPC.

02:14:19.985 --> 02:14:23.255 align:middle line:79% position:50% size:70%
You have for us the Electric
Power Research Institute.

02:14:23.321 --> 02:14:26.224 align:middle line:79% position:50% size:70%
We work with universities
like UC San Diego and others

02:14:26.291 --> 02:14:29.428 align:middle line:79% position:50% size:65%
so that we can all benefit
and share from these same

02:14:29.494 --> 02:14:30.729 align:middle line:85% position:50% size:73%
investments that we're doing.

02:14:33.165 --> 02:14:35.734 align:middle line:79% position:50% size:48%
>> And doctor, any
follow up comments?

02:14:35.801 --> 02:14:38.637 align:middle line:79% position:50% size:70%
I think you teed this up
very nicely in your opening.

02:14:38.703 --> 02:14:42.507 align:middle line:79% position:50% size:73%
But if if there was one thing
that you would like to see

02:14:42.574 --> 02:14:45.944 align:middle line:79% position:50% size:68%
utilities across the state
of California, um, and, you

02:14:46.011 --> 02:14:49.948 align:middle line:79% position:50% size:75%
know, talking broadly, so IOUs
and PPAs do differently to,

02:14:50.015 --> 02:14:52.050 align:middle line:79% position:50% size:68%
to more rapidly incorporate
innovation.

02:14:52.117 --> 02:14:54.553 align:middle line:79% position:50% size:70%
What's the one thing that
you would would like to see?

02:14:54.619 --> 02:14:56.655 align:middle line:79% position:50% size:55%
>> Innovation can have
different definitions.

02:14:56.721 --> 02:14:58.156 align:middle line:85% position:50% size:68%
Tech innovation definitely.

02:14:58.223 --> 02:15:00.725 align:middle line:79% position:50% size:60%
But there's also process
innovations, procurement

02:15:00.792 --> 02:15:02.594 align:middle line:85% position:50% size:78%
Innovations that could be done.

02:15:03.295 --> 02:15:05.397 align:middle line:79% position:50% size:48%
And this all points
to the fact that.

02:15:05.764 --> 02:15:08.700 align:middle line:79% position:50% size:58%
Are we creating
an innovation ecosystem

02:15:08.767 --> 02:15:10.502 align:middle line:85% position:50% size:58%
that's outcome focused?

02:15:10.802 --> 02:15:11.736 align:middle line:85% position:50% size:58%
And what's the outcome?

02:15:11.803 --> 02:15:13.438 align:middle line:85% position:50% size:78%
Can we agree on those outcomes?

02:15:13.705 --> 02:15:15.006 align:middle line:85% position:50% size:48%
And can we build a.

02:15:15.574 --> 02:15:18.376 align:middle line:79% position:50% size:80%
Interoperability
and collaboration infrastructure

02:15:18.443 --> 02:15:22.214 align:middle line:79% position:50% size:80%
that we can all trust and govern
so we can actually share things?

02:15:22.280 --> 02:15:25.851 align:middle line:79% position:50% size:65%
One example to this is our
collaboration with San

02:15:25.917 --> 02:15:27.219 align:middle line:85% position:50% size:58%
Diego Gas and Electric.

02:15:27.953 --> 02:15:32.023 align:middle line:79% position:50% size:65%
For the last six years has
been sharing 17 data sets

02:15:32.090 --> 02:15:33.925 align:middle line:85% position:50% size:65%
daily in the fire weather.

02:15:34.259 --> 02:15:37.329 align:middle line:79% position:50% size:65%
And they evaluated
Confidentialities and they

02:15:37.395 --> 02:15:40.332 align:middle line:79% position:50% size:70%
noticed this could actually
be used not just for utility

02:15:40.398 --> 02:15:43.335 align:middle line:79% position:50% size:63%
mitigation, but utilities
are not in isolation.

02:15:43.401 --> 02:15:46.071 align:middle line:79% position:50% size:58%
They're a part of
a system that increases

02:15:46.137 --> 02:15:48.173 align:middle line:85% position:50% size:60%
our wildfire resilience.

02:15:48.240 --> 02:15:50.876 align:middle line:79% position:50% size:60%
So they decided to share
this with the public,

02:15:50.942 --> 02:15:54.646 align:middle line:79% position:50% size:78%
the scientists, and we created
a better intelligence platform.

02:15:54.713 --> 02:15:57.782 align:middle line:79% position:50% size:75%
So there's the understanding
of the public of the situation

02:15:57.849 --> 02:16:02.454 align:middle line:79% position:50% size:75%
and making sure these type of
utility driven innovations are

02:16:02.687 --> 02:16:04.022 align:middle line:85% position:50% size:43%
actually helpful.

02:16:04.422 --> 02:16:07.826 align:middle line:79% position:50% size:63%
And you said one thing to
add to that is I think we

02:16:07.893 --> 02:16:12.430 align:middle line:79% position:50% size:68%
need to go from utility by
utility mitigation to these

02:16:12.497 --> 02:16:14.399 align:middle line:85% position:50% size:68%
shared collective capacity.

02:16:14.633 --> 02:16:17.068 align:middle line:79% position:50% size:63%
And that would benefit
the public utilities that

02:16:17.135 --> 02:16:19.104 align:middle line:85% position:50% size:58%
would benefit the IOUs.

02:16:19.371 --> 02:16:22.140 align:middle line:79% position:50% size:75%
And more importantly, it would
benefit all of us. Right.

02:16:22.207 --> 02:16:25.343 align:middle line:79% position:50% size:63%
I'm not touched myself by
fire in my house, but my

02:16:25.410 --> 02:16:26.344 align:middle line:85% position:50% size:45%
lungs are touched.

02:16:26.411 --> 02:16:29.381 align:middle line:79% position:50% size:58%
My pocket is such I'm
a rate payer, you know.

02:16:29.581 --> 02:16:33.919 align:middle line:79% position:50% size:75%
That's actually a problem that
we need to solve collectively.

02:16:33.985 --> 02:16:36.288 align:middle line:79% position:50% size:50%
And wildfire problem
is very complex.

02:16:36.354 --> 02:16:39.024 align:middle line:85% position:50% size:73%
And energy itself is complex.

02:16:39.090 --> 02:16:41.393 align:middle line:79% position:50% size:60%
When you add wildfire,
it becomes more complex.

02:16:41.459 --> 02:16:45.931 align:middle line:79% position:50% size:75%
I think we need to really
think through this as a what's

02:16:45.997 --> 02:16:49.467 align:middle line:79% position:50% size:80%
the digital infrastructure in
addition to physical and capital

02:16:49.534 --> 02:16:51.102 align:middle line:85% position:50% size:75%
investments that we can build?

02:16:51.503 --> 02:16:54.973 align:middle line:79% position:50% size:80%
>> Well thank you. And yes, we
are indeed all in this together.

02:16:55.240 --> 02:16:58.143 align:middle line:79% position:50% size:58%
And I think I'm going
to let that be the last

02:16:58.209 --> 02:16:59.344 align:middle line:85% position:50% size:48%
word I want to say.

02:16:59.411 --> 02:17:03.048 align:middle line:79% position:50% size:78%
Once again, thank you to all of
our panelists for being here,

02:17:03.582 --> 02:17:07.385 align:middle line:79% position:50% size:80%
for sharing your insights, for
what I thought was a very robust

02:17:07.452 --> 02:17:11.957 align:middle line:79% position:50% size:80%
and productive conversation with
certainly much more to come.

02:17:12.490 --> 02:17:13.525 align:middle line:85% position:50% size:53%
So thank you so much.

02:17:13.725 --> 02:17:16.261 align:middle line:79% position:50% size:63%
We'll go ahead and open
it up for public comment.

02:17:16.328 --> 02:17:18.463 align:middle line:79% position:50% size:78%
If you'd like to provide public
comment, you can go ahead

02:17:18.530 --> 02:17:22.367 align:middle line:79% position:50% size:73%
and approach the microphone
at this point, and we'll give

02:17:22.434 --> 02:17:25.136 align:middle line:79% position:50% size:70%
everyone a minute for public
comment, please.

02:17:25.770 --> 02:17:27.772 align:middle line:79% position:50% size:65%
>> Thank you, Madam Chair.
Member Scott, on behalf of

02:17:27.839 --> 02:17:29.941 align:middle line:79% position:50% size:60%
the California Coalition
of Utility Employees

02:17:30.008 --> 02:17:32.744 align:middle line:79% position:50% size:63%
and the State Association
of Electrical Workers, we

02:17:32.811 --> 02:17:35.013 align:middle line:79% position:50% size:75%
appreciate the importance of
these hearings and that you're

02:17:35.080 --> 02:17:39.017 align:middle line:79% position:50% size:73%
taking a holistic look at all
of the wildfire issues.

02:17:39.651 --> 02:17:46.491 align:middle line:79% position:50% size:80%
But frankly, my members find it
paramount that that in this time

02:17:46.558 --> 02:17:50.795 align:middle line:79% position:50% size:75%
that we are sitting in today,
that the legislature trying to

02:17:50.862 --> 02:17:57.669 align:middle line:79% position:50% size:78%
assess the progress of the IOUs
in mitigating wildfire is sort

02:17:57.736 --> 02:18:01.206 align:middle line:79% position:50% size:70%
of like a mechanic trying to
do 100 point inspection of

02:18:01.272 --> 02:18:06.277 align:middle line:79% position:50% size:75%
an automobile that's on blocks
with no battery and no gas in

02:18:06.344 --> 02:18:07.345 align:middle line:85% position:50% size:23%
the tank.

02:18:07.579 --> 02:18:10.982 align:middle line:79% position:50% size:68%
Um, if you look at PG and E
having to pull back $2

02:18:11.049 --> 02:18:14.386 align:middle line:79% position:50% size:73%
billion worth of financing,
I can tell you right now from

02:18:14.452 --> 02:18:17.422 align:middle line:79% position:50% size:73%
boots on the ground that this
work has come to a grinding

02:18:17.489 --> 02:18:18.957 align:middle line:85% position:50% size:70%
halt, at least in the north.

02:18:19.491 --> 02:18:21.459 align:middle line:79% position:50% size:73%
I think it's important if you
just give me a moment to

02:18:21.526 --> 02:18:24.729 align:middle line:79% position:50% size:73%
tell the committee that PG
and E has just this week sent

02:18:24.796 --> 02:18:31.569 align:middle line:79% position:50% size:80%
out notification to 25,000
applicants for interconnections,

02:18:31.803 --> 02:18:33.338 align:middle line:79% position:50% size:78%
telling them that they're going
to be delayed.

02:18:33.838 --> 02:18:37.942 align:middle line:79% position:50% size:75%
68 large renewable energy
projects have been put on ice.

02:18:38.009 --> 02:18:39.844 align:middle line:79% position:50% size:70%
They don't know when they're
going to be interconnected.

02:18:40.078 --> 02:18:45.417 align:middle line:79% position:50% size:68%
And over 200 large capacity
projects for universities

02:18:45.483 --> 02:18:49.020 align:middle line:79% position:50% size:68%
and large mixed use housing
projects have all been

02:18:49.087 --> 02:18:51.623 align:middle line:79% position:50% size:60%
notified that they're on
indefinite delay.

02:18:51.690 --> 02:18:53.892 align:middle line:79% position:50% size:55%
And my members are not
out doing the work.

02:18:54.192 --> 02:18:56.394 align:middle line:79% position:50% size:73%
and that's really what I hope
the committee will focus on

02:18:56.461 --> 02:18:58.663 align:middle line:79% position:50% size:63%
before these hearings are
concluded. Thank you.

02:18:59.264 --> 02:19:00.265 align:middle line:85% position:50% size:33%
>> Thank you.

02:19:02.934 --> 02:19:05.470 align:middle line:79% position:50% size:68%
>> I'm Janet Mundy Jones
with the Independent Energy

02:19:05.537 --> 02:19:10.875 align:middle line:79% position:50% size:70%
Producers, and I actually
represent a number of the 68

02:19:11.209 --> 02:19:14.312 align:middle line:79% position:50% size:60%
renewable companies that
got notice from PG and E

02:19:14.379 --> 02:19:18.383 align:middle line:79% position:50% size:70%
that they will not be, uh,
whether in risk of not being

02:19:18.450 --> 02:19:20.452 align:middle line:85% position:50% size:58%
interconnected in 2027.

02:19:20.652 --> 02:19:25.023 align:middle line:79% position:50% size:70%
This has the impact of not
meeting their 2030 deadlines

02:19:25.223 --> 02:19:30.462 align:middle line:79% position:50% size:68%
in order to, uh, get access
to the federal credits that

02:19:30.528 --> 02:19:31.629 align:middle line:85% position:50% size:63%
are associated with that.

02:19:31.696 --> 02:19:34.532 align:middle line:79% position:50% size:60%
And I promise, Scott did
not set this up for me.

02:19:34.766 --> 02:19:38.536 align:middle line:79% position:50% size:75%
Um, but the fact of the matter
is, is that this is a very

02:19:38.603 --> 02:19:40.505 align:middle line:85% position:50% size:60%
obvious important issue.

02:19:40.572 --> 02:19:43.742 align:middle line:79% position:50% size:80%
And I think this hearing I want
to thank you for not for keeping

02:19:43.808 --> 02:19:47.712 align:middle line:79% position:50% size:75%
the pressure up on like, let's
fix this because this affects

02:19:47.779 --> 02:19:49.914 align:middle line:85% position:50% size:70%
all of us on various levels.

02:19:50.215 --> 02:19:53.017 align:middle line:79% position:50% size:55%
Um, I just want to
point out the reality.

02:19:53.084 --> 02:19:56.254 align:middle line:79% position:50% size:80%
The simple fact of the matter is
one of the big concerns we have.

02:19:56.488 --> 02:19:59.224 align:middle line:79% position:50% size:70%
We have contracts with
the utilities, both investor

02:19:59.290 --> 02:20:01.926 align:middle line:85% position:50% size:73%
owned and and publicly owned.

02:20:02.127 --> 02:20:04.262 align:middle line:79% position:50% size:63%
And when they go bankrupt
and this has happened

02:20:04.329 --> 02:20:07.832 align:middle line:79% position:50% size:65%
twice, we spend all of our
time basically trying to

02:20:07.899 --> 02:20:09.167 align:middle line:85% position:50% size:60%
protect those contracts.

02:20:09.234 --> 02:20:13.772 align:middle line:79% position:50% size:70%
Governor Newsom was in power
for about five days when PGE

02:20:13.838 --> 02:20:15.406 align:middle line:85% position:50% size:78%
declared their last bankruptcy.

02:20:15.473 --> 02:20:16.741 align:middle line:85% position:50% size:58%
That was a big problem.

02:20:16.808 --> 02:20:19.577 align:middle line:79% position:50% size:60%
The second issue, which,
uh, Scott just referred

02:20:19.644 --> 02:20:24.382 align:middle line:79% position:50% size:65%
to, was PGE has removed $2
billion from their credit

02:20:24.449 --> 02:20:26.785 align:middle line:85% position:50% size:60%
plans for next for 2027.

02:20:26.851 --> 02:20:29.287 align:middle line:79% position:50% size:58%
And that means those
issues will be delayed.

02:20:29.954 --> 02:20:33.358 align:middle line:79% position:50% size:73%
And they, they, they're doing
that based on the idea that

02:20:33.424 --> 02:20:37.095 align:middle line:79% position:50% size:80%
because they got downgraded,
the credit costs associated with

02:20:37.162 --> 02:20:39.030 align:middle line:85% position:50% size:78%
those interconnections goes up.

02:20:39.097 --> 02:20:40.598 align:middle line:85% position:50% size:75%
And that's reflected in rates.

02:20:40.665 --> 02:20:42.167 align:middle line:85% position:50% size:78%
So it's an affordability issue.

02:20:42.233 --> 02:20:45.470 align:middle line:79% position:50% size:68%
So please keep up the this
activity is very important.

02:20:45.537 --> 02:20:47.539 align:middle line:79% position:50% size:68%
And hopefully the various
committees that are looking

02:20:47.605 --> 02:20:49.941 align:middle line:79% position:50% size:70%
at different things here can
coordinate because I think

02:20:50.008 --> 02:20:53.111 align:middle line:79% position:50% size:78%
the California Energy Authority
did a good job of laying out

02:20:53.178 --> 02:20:56.014 align:middle line:79% position:50% size:70%
some pathways that don't fit
all into this committee.

02:20:56.080 --> 02:20:57.749 align:middle line:79% position:50% size:55%
But thank you very
much for your efforts.

02:20:57.816 --> 02:20:58.817 align:middle line:85% position:50% size:33%
>> Thank you.

02:21:00.852 --> 02:21:02.420 align:middle line:79% position:50% size:73%
>> Thank you, chair
and members, Alex Torres here

02:21:02.487 --> 02:21:05.290 align:middle line:79% position:50% size:73%
on behalf of Vibrant Planet,
a wildfire analytics company.

02:21:05.523 --> 02:21:06.691 align:middle line:85% position:50% size:63%
Your point is well taken.

02:21:06.758 --> 02:21:09.260 align:middle line:79% position:50% size:70%
We need to be able to find
solutions that have a proven

02:21:09.327 --> 02:21:10.461 align:middle line:85% position:50% size:55%
track record and work.

02:21:10.728 --> 02:21:13.131 align:middle line:79% position:50% size:68%
We started with multi-year
relationship with Cal Fire,

02:21:13.198 --> 02:21:16.167 align:middle line:79% position:50% size:78%
beginning with pilots that
we've since expanded statewide.

02:21:16.234 --> 02:21:19.604 align:middle line:79% position:50% size:75%
We also contract with investor
owned utilities like PG and E.

02:21:19.904 --> 02:21:22.407 align:middle line:79% position:50% size:63%
The platform uses partial
specific data, landscape

02:21:22.473 --> 02:21:24.709 align:middle line:79% position:50% size:60%
conditions, and wildfire
modeling to assess risk

02:21:24.776 --> 02:21:28.413 align:middle line:79% position:50% size:73%
and compare mitigation
options, essentially allowing

02:21:28.479 --> 02:21:31.549 align:middle line:79% position:50% size:73%
all the users across the Cal
Fire units to see where those

02:21:31.616 --> 02:21:33.017 align:middle line:85% position:50% size:65%
dollars would go furthest.

02:21:33.451 --> 02:21:36.588 align:middle line:79% position:50% size:75%
That provides a really good
foundation for, in partnership

02:21:36.654 --> 02:21:39.357 align:middle line:79% position:50% size:68%
with the Cal Fire Units, in
partnership with investor

02:21:39.424 --> 02:21:41.926 align:middle line:79% position:50% size:73%
owned utilities to determine
what they can do with limited

02:21:41.993 --> 02:21:43.127 align:middle line:85% position:50% size:48%
mitigation dollars.

02:21:43.494 --> 02:21:46.397 align:middle line:79% position:50% size:65%
But that work is underway
now, and that is a earlier

02:21:46.464 --> 02:21:48.233 align:middle line:79% position:50% size:65%
this year was announced as
a multiyear relationship

02:21:48.299 --> 02:21:49.234 align:middle line:85% position:50% size:58%
with Cal Fire. CalFire.

02:21:49.300 --> 02:21:51.469 align:middle line:79% position:50% size:55%
And so we we thank you
for the hearing today.

02:21:51.536 --> 02:21:53.504 align:middle line:79% position:50% size:68%
Welcome. The opportunity to
share these experiences,

02:21:53.571 --> 02:21:55.306 align:middle line:79% position:50% size:73%
serve as a resource for these
hearings going forward.

02:21:55.373 --> 02:21:56.407 align:middle line:85% position:50% size:53%
Thank you, thank you.

02:22:01.079 --> 02:22:03.047 align:middle line:79% position:50% size:53%
>> Good afternoon. My
name is Brooke Rose,

02:22:03.114 --> 02:22:05.583 align:middle line:79% position:50% size:70%
and I represent the Wildfire
Solutions Coalition,

02:22:05.650 --> 02:22:08.253 align:middle line:79% position:50% size:65%
a multi-sector alliance of
over 95 organizations all

02:22:08.319 --> 02:22:11.189 align:middle line:79% position:50% size:70%
across California working to
scale funding for wildfire

02:22:11.256 --> 02:22:14.759 align:middle line:79% position:50% size:73%
mitigation from state, local,
federal, and private sources.

02:22:14.993 --> 02:22:16.594 align:middle line:79% position:50% size:60%
We would like to thank
the legislature for your

02:22:16.661 --> 02:22:19.063 align:middle line:79% position:50% size:65%
continued attention to
this very important topic.

02:22:19.297 --> 02:22:22.433 align:middle line:79% position:50% size:70%
As the legislature continues
discussion of wildfire risk

02:22:22.500 --> 02:22:24.702 align:middle line:79% position:50% size:65%
and liability, we urge you
to remember that the only

02:22:24.769 --> 02:22:28.106 align:middle line:79% position:50% size:65%
way to reduce the overall
cost of wildfire disasters

02:22:28.172 --> 02:22:30.208 align:middle line:79% position:50% size:65%
is by reducing risk on
the landscapes where fires

02:22:30.275 --> 02:22:33.678 align:middle line:79% position:50% size:73%
start, and in the communities
the fires burn into stable

02:22:33.745 --> 02:22:34.979 align:middle line:85% position:50% size:65%
and proactive investments.

02:22:35.046 --> 02:22:37.916 align:middle line:79% position:50% size:73%
Scale to the financial risk
is ultimately the only way to

02:22:37.982 --> 02:22:41.185 align:middle line:79% position:50% size:78%
reduce the costs of wildfire
damage and disaster. Thank you.

02:22:41.252 --> 02:22:42.253 align:middle line:85% position:50% size:33%
>> Thank you.

02:22:44.923 --> 02:22:47.659 align:middle line:79% position:50% size:65%
>> Good afternoon, chair
and members Vanessa Chavez

02:22:47.725 --> 02:22:50.295 align:middle line:79% position:50% size:70%
with the California Building
Industry Association.

02:22:50.361 --> 02:22:52.797 align:middle line:79% position:50% size:60%
Just wanted to thank you
for today's dialogue.

02:22:53.097 --> 02:22:55.767 align:middle line:79% position:50% size:65%
We want to highlight
the symbiotic relationship

02:22:55.833 --> 02:22:58.102 align:middle line:79% position:50% size:55%
with insurance and our
utility partners.

02:22:58.169 --> 02:23:01.272 align:middle line:79% position:50% size:70%
And just adding to, um, you
know, the fact that if there

02:23:01.339 --> 02:23:04.609 align:middle line:79% position:50% size:78%
are additional delays in
the process of interconnection,

02:23:04.676 --> 02:23:08.513 align:middle line:79% position:50% size:78%
that ultimately means that home
buyers pay the price on that

02:23:08.579 --> 02:23:11.082 align:middle line:85% position:50% size:78%
with interest rates increasing.

02:23:11.382 --> 02:23:14.752 align:middle line:79% position:50% size:73%
Um, you know, every day, it
just is really important that

02:23:14.819 --> 02:23:18.790 align:middle line:79% position:50% size:75%
we ensure that property owners
and home buyers are able to

02:23:18.856 --> 02:23:21.726 align:middle line:79% position:50% size:70%
get into their homes without
any delays in that process.

02:23:21.793 --> 02:23:24.595 align:middle line:79% position:50% size:68%
We welcome more
conversations in this space

02:23:24.662 --> 02:23:26.931 align:middle line:79% position:50% size:63%
and happy to be a partner
and resource. Thank you.

02:23:26.998 --> 02:23:27.999 align:middle line:85% position:50% size:33%
>> Thank you.

02:23:30.401 --> 02:23:33.638 align:middle line:79% position:50% size:70%
>> Good afternoon, chair
and member of the committee,

02:23:33.705 --> 02:23:36.607 align:middle line:79% position:50% size:78%
Lillian Mervis with
the Environmental Defense Fund.

02:23:36.674 --> 02:23:39.410 align:middle line:79% position:50% size:65%
First off, I want to thank
the chair for convening

02:23:39.477 --> 02:23:40.945 align:middle line:85% position:50% size:60%
this series of hearings.

02:23:41.012 --> 02:23:44.682 align:middle line:79% position:50% size:73%
We definitely ran out of time
at the end of last session to

02:23:44.916 --> 02:23:46.250 align:middle line:85% position:50% size:68%
focus on this conversation.

02:23:46.317 --> 02:23:48.219 align:middle line:79% position:50% size:50%
So it's really great
to have this time to

02:23:48.286 --> 02:23:49.620 align:middle line:85% position:50% size:55%
dig into these issues.

02:23:49.954 --> 02:23:54.192 align:middle line:79% position:50% size:70%
We at EDF believe that
mitigation is the number one

02:23:54.258 --> 02:23:58.029 align:middle line:79% position:50% size:73%
thing we need to focus on for
while reducing wildfire risk.

02:23:58.096 --> 02:23:59.931 align:middle line:79% position:50% size:58%
And we appreciate
the comments in today's

02:23:59.998 --> 02:24:03.668 align:middle line:79% position:50% size:70%
hearing on how the rate of
return is not necessarily in

02:24:03.735 --> 02:24:05.136 align:middle line:85% position:50% size:63%
alignment with this goal.

02:24:05.570 --> 02:24:09.007 align:middle line:79% position:50% size:80%
In that vein, we also appreciate
the chair's leadership on

02:24:09.073 --> 02:24:12.610 align:middle line:79% position:50% size:65%
AB 2463, looking at return
on equity and increasing

02:24:12.677 --> 02:24:13.911 align:middle line:85% position:50% size:48%
transparency there.

02:24:13.978 --> 02:24:16.814 align:middle line:79% position:50% size:63%
It's all part of the same
conversation on how we

02:24:16.881 --> 02:24:20.018 align:middle line:79% position:50% size:65%
can make sure that we can
focus on reducing wildfire

02:24:20.084 --> 02:24:23.187 align:middle line:79% position:50% size:65%
risk without having to
worry about affordability.

02:24:23.254 --> 02:24:24.222 align:middle line:85% position:50% size:48%
So thank you again.

02:24:24.288 --> 02:24:26.357 align:middle line:79% position:50% size:75%
Thank you for your leadership,
chair Petrie-norris, and we

02:24:26.424 --> 02:24:28.292 align:middle line:79% position:50% size:58%
look forward to future
hearings on this topic.

02:24:28.359 --> 02:24:29.360 align:middle line:85% position:50% size:33%
>> Thank you.

02:24:31.996 --> 02:24:34.432 align:middle line:79% position:50% size:70%
>> Good afternoon, John
Kennedy with Rural Counties.

02:24:34.499 --> 02:24:36.934 align:middle line:79% position:50% size:65%
Appreciate the opportunity
to provide a few public

02:24:37.001 --> 02:24:38.436 align:middle line:85% position:50% size:63%
comments and the hearing.

02:24:38.736 --> 02:24:41.472 align:middle line:79% position:50% size:68%
Wildfire risk reduction is
of tremendous importance to

02:24:41.539 --> 02:24:44.375 align:middle line:79% position:50% size:73%
our communities and other
communities across the state.

02:24:44.776 --> 02:24:46.978 align:middle line:79% position:50% size:60%
And I want to start with
the premise that we have

02:24:47.045 --> 02:24:50.048 align:middle line:79% position:50% size:63%
made significant strides
towards reducing wildfire

02:24:50.114 --> 02:24:51.582 align:middle line:85% position:50% size:60%
risk in our communities.

02:24:51.949 --> 02:24:53.885 align:middle line:79% position:50% size:58%
PG and E is the biggest
service provider in our

02:24:53.951 --> 02:24:56.487 align:middle line:79% position:50% size:70%
counties, but SoCal Edison
provides service to a number

02:24:56.554 --> 02:24:58.723 align:middle line:79% position:50% size:65%
of our counties, and we've
got p o use as well.

02:24:58.790 --> 02:25:01.192 align:middle line:79% position:50% size:65%
PG and E has substantially
reduced the risk.

02:25:01.259 --> 02:25:02.860 align:middle line:79% position:50% size:43%
They had a long
way to go. Right.

02:25:02.927 --> 02:25:05.763 align:middle line:79% position:50% size:73%
And from, you know, decades
where maybe they needed to be

02:25:05.830 --> 02:25:08.800 align:middle line:79% position:50% size:78%
a little more proactive in
terms of vegetation management,

02:25:08.866 --> 02:25:10.868 align:middle line:79% position:50% size:70%
in terms of inspections, all
of those things.

02:25:10.935 --> 02:25:13.271 align:middle line:79% position:50% size:68%
So there have been growing
pains, as we've spent a lot

02:25:13.337 --> 02:25:16.741 align:middle line:79% position:50% size:75%
of state resources to catch up
on those things, but they've

02:25:16.808 --> 02:25:19.544 align:middle line:79% position:50% size:68%
done a world of good in our
communities in terms of

02:25:19.610 --> 02:25:23.147 align:middle line:79% position:50% size:70%
reducing fuel load, reducing
the risk of things falling

02:25:23.214 --> 02:25:24.982 align:middle line:85% position:50% size:75%
into lines in our communities.

02:25:25.049 --> 02:25:29.187 align:middle line:79% position:50% size:68%
And we've had PSPs events,
which we've grown with over

02:25:29.253 --> 02:25:30.488 align:middle line:85% position:50% size:58%
the last several years.

02:25:30.755 --> 02:25:33.424 align:middle line:79% position:50% size:70%
They're no longer the events
that we had when we started

02:25:33.491 --> 02:25:35.193 align:middle line:85% position:50% size:65%
to experience PSPs events.

02:25:35.259 --> 02:25:37.995 align:middle line:79% position:50% size:65%
PG and E has substantially
reduced the scope, size

02:25:38.062 --> 02:25:42.033 align:middle line:79% position:50% size:80%
and frequency of those events,
but we have had a sharp increase

02:25:42.100 --> 02:25:45.103 align:middle line:79% position:50% size:78%
in fastrip outages in our
communities, where we're seeing

02:25:45.169 --> 02:25:49.140 align:middle line:79% position:50% size:73%
about 2000 outages in a given
year in our communities.

02:25:49.207 --> 02:25:52.910 align:middle line:79% position:50% size:73%
Some circuits hit up to 2530
times per year, and these are

02:25:52.977 --> 02:25:54.345 align:middle line:85% position:50% size:65%
different types of events.

02:25:54.779 --> 02:25:56.848 align:middle line:79% position:50% size:68%
So I think there's
an opportunity to also look

02:25:56.914 --> 02:26:00.785 align:middle line:79% position:50% size:63%
at when we're calling for
a PSPs, how many of those

02:26:00.852 --> 02:26:04.856 align:middle line:79% position:50% size:73%
residents are experiencing
fast trips or have fast trips

02:26:04.922 --> 02:26:07.225 align:middle line:85% position:50% size:63%
enabled on their systems?

02:26:07.291 --> 02:26:08.860 align:middle line:85% position:50% size:45%
Does that de-risk?

02:26:09.127 --> 02:26:13.397 align:middle line:79% position:50% size:60%
Um, and, you know, mean
that we don't need to do

02:26:13.464 --> 02:26:17.034 align:middle line:79% position:50% size:63%
as much of a PSPs event
as large of a PSPs event?

02:26:17.235 --> 02:26:20.671 align:middle line:79% position:50% size:78%
Um, or can we expand fast trip
and some of those areas so that

02:26:20.738 --> 02:26:22.640 align:middle line:85% position:50% size:70%
we reduce the risk for PSPs.

02:26:22.707 --> 02:26:24.275 align:middle line:85% position:50% size:60%
And I'll try to wrap up.

02:26:24.342 --> 02:26:26.744 align:middle line:79% position:50% size:65%
Appreciate the comments on
the costs and benefits of

02:26:26.811 --> 02:26:28.446 align:middle line:85% position:50% size:80%
different mitigation strategies.

02:26:28.713 --> 02:26:31.215 align:middle line:79% position:50% size:73%
Um, I think the presentations
knocked it out of the park.

02:26:31.415 --> 02:26:34.085 align:middle line:79% position:50% size:73%
Undergrounding is the most
expensive by far, but it does

02:26:34.152 --> 02:26:36.020 align:middle line:85% position:50% size:80%
provide significant reliability.

02:26:36.087 --> 02:26:39.390 align:middle line:79% position:50% size:73%
Covered conductor plus EPS is
something we've been strongly

02:26:39.457 --> 02:26:40.858 align:middle line:85% position:50% size:58%
advocating for as well.

02:26:41.125 --> 02:26:44.262 align:middle line:79% position:50% size:78%
PS PS is just turning the power
off in those communities.

02:26:44.328 --> 02:26:47.098 align:middle line:79% position:50% size:75%
And and we've we're at a place
now where we've. De-risked.

02:26:47.165 --> 02:26:49.767 align:middle line:79% position:50% size:73%
Now we need to start building
back in reliability, at least

02:26:49.834 --> 02:26:51.335 align:middle line:85% position:50% size:75%
in PG and E service territory.

02:26:51.402 --> 02:26:54.805 align:middle line:79% position:50% size:50%
And then finally to,
um, to thank you.

02:26:55.206 --> 02:26:56.607 align:middle line:85% position:50% size:60%
>> Thank you, thank you.

02:27:00.244 --> 02:27:02.880 align:middle line:79% position:50% size:75%
>> Thank you so much, chair
and committee members, Melissa

02:27:02.947 --> 02:27:05.550 align:middle line:79% position:50% size:75%
Sparks Kranz with the League
of California Cities just here

02:27:05.616 --> 02:27:09.453 align:middle line:79% position:50% size:70%
today to express, um, thanks
for hosting this hearing.

02:27:09.754 --> 02:27:13.157 align:middle line:79% position:50% size:65%
Um, also thank you for
just allowing the dialogue

02:27:13.224 --> 02:27:14.458 align:middle line:85% position:50% size:65%
to continue on this topic.

02:27:14.525 --> 02:27:16.961 align:middle line:79% position:50% size:63%
It's a very complex topic
that we've been dealing

02:27:17.028 --> 02:27:19.997 align:middle line:79% position:50% size:53%
with in the last year
with the 254 report.

02:27:20.064 --> 02:27:23.000 align:middle line:79% position:50% size:70%
I think for us at the center
of this discussion is

02:27:23.067 --> 02:27:24.368 align:middle line:85% position:50% size:55%
prevention and safety.

02:27:24.669 --> 02:27:28.606 align:middle line:79% position:50% size:73%
Um, that has always been sort
of the core for our cities to

02:27:28.673 --> 02:27:31.776 align:middle line:79% position:50% size:73%
protect our cities, make sure
we have safe communities that

02:27:31.842 --> 02:27:32.977 align:middle line:85% position:50% size:48%
can withstand fire.

02:27:33.044 --> 02:27:36.514 align:middle line:79% position:50% size:78%
So we just appreciate the focus
on safety and accountability,

02:27:36.581 --> 02:27:38.783 align:middle line:79% position:50% size:63%
especially safety from
the regard to the utility

02:27:38.849 --> 02:27:39.817 align:middle line:85% position:50% size:60%
operational perspective.

02:27:39.884 --> 02:27:40.818 align:middle line:85% position:50% size:53%
So thank you so much.

02:27:40.885 --> 02:27:41.886 align:middle line:85% position:50% size:33%
>> Thank you.

02:27:44.855 --> 02:27:47.258 align:middle line:79% position:50% size:60%
>> Good afternoon, Madam
Chair. Assembly member.

02:27:48.192 --> 02:27:50.861 align:middle line:79% position:50% size:60%
Thank you all for having
this hearing and your

02:27:50.928 --> 02:27:53.831 align:middle line:79% position:50% size:68%
ongoing diligence to trying
to solve this problem.

02:27:53.898 --> 02:27:57.034 align:middle line:79% position:50% size:80%
Also, thank you to the committee
consultants for as yet again,

02:27:57.101 --> 02:28:00.504 align:middle line:79% position:50% size:80%
just a very robust, very great
write up on the problems that we

02:28:00.571 --> 02:28:02.240 align:middle line:85% position:50% size:60%
have as discussed today.

02:28:02.306 --> 02:28:04.308 align:middle line:79% position:50% size:50%
I'm here on behalf
of NRDC Action Fund.

02:28:04.375 --> 02:28:06.944 align:middle line:79% position:50% size:50%
Forgot that part as
was discussed today.

02:28:07.011 --> 02:28:09.947 align:middle line:79% position:50% size:55%
Um, we know
the electricity rates.

02:28:10.014 --> 02:28:12.817 align:middle line:79% position:50% size:50%
They're not going
down associated with

02:28:13.017 --> 02:28:13.985 align:middle line:85% position:50% size:50%
wildfire prevention.

02:28:14.051 --> 02:28:17.088 align:middle line:79% position:50% size:75%
Liability and lending
continues to hit Californians,

02:28:17.154 --> 02:28:20.524 align:middle line:79% position:50% size:78%
particularly those, um, who are
in the lower income bracket who

02:28:20.591 --> 02:28:22.059 align:middle line:85% position:50% size:68%
are disproportionately hit.

02:28:22.126 --> 02:28:24.895 align:middle line:79% position:50% size:78%
We hope the legislature
and the Commission may consider

02:28:24.962 --> 02:28:28.532 align:middle line:79% position:50% size:63%
wider range of options to
reduce who pays and how.

02:28:28.833 --> 02:28:31.402 align:middle line:79% position:50% size:75%
First, the legislature may
consider limits on subrogation

02:28:31.469 --> 02:28:35.106 align:middle line:79% position:50% size:78%
for utilities and new liability
revenue sources like surcharges

02:28:35.339 --> 02:28:36.707 align:middle line:85% position:50% size:55%
on insurance premiums.

02:28:36.774 --> 02:28:40.344 align:middle line:79% position:50% size:78%
Second, California policymakers
may want to consider structural

02:28:40.411 --> 02:28:44.582 align:middle line:79% position:50% size:75%
changes to which electricity
customers pay, such as through

02:28:44.649 --> 02:28:48.552 align:middle line:79% position:50% size:73%
wildfire safety charge that
could lower volumetric costs.

02:28:48.619 --> 02:28:51.422 align:middle line:79% position:50% size:80%
Thank you for your consideration
and your ongoing work in this.

02:28:51.989 --> 02:28:52.990 align:middle line:85% position:50% size:43%
>> And thank you.

02:28:54.525 --> 02:28:58.195 align:middle line:79% position:50% size:58%
And just in closing, as
the climate crisis has

02:28:58.262 --> 02:29:02.667 align:middle line:79% position:50% size:68%
and continues to intensify,
we have seen communities in

02:29:02.733 --> 02:29:05.770 align:middle line:79% position:50% size:63%
every corner of the state
of California ravaged by

02:29:06.404 --> 02:29:07.905 align:middle line:85% position:50% size:58%
catastrophic wildfires.

02:29:07.972 --> 02:29:13.511 align:middle line:79% position:50% size:73%
And, uh, we know that these
risks are going to intensify.

02:29:13.577 --> 02:29:18.816 align:middle line:79% position:50% size:80%
We are going to continue to see,
as I said at the beginning,

02:29:18.883 --> 02:29:20.985 align:middle line:79% position:50% size:60%
the huts getting hotter,
the dries getting drier,

02:29:21.052 --> 02:29:24.221 align:middle line:79% position:50% size:80%
and wildfire risk getting harder
and harder for us to manage.

02:29:24.622 --> 02:29:27.758 align:middle line:79% position:50% size:68%
Um, tackling this challenge
is something that

02:29:27.825 --> 02:29:30.261 align:middle line:79% position:50% size:70%
I really, truly believe is
foundationally important for

02:29:30.328 --> 02:29:35.232 align:middle line:79% position:50% size:70%
the state of California, um,
both to protect communities.

02:29:36.701 --> 02:29:40.071 align:middle line:79% position:50% size:58%
to ensure the stability
of California's utility

02:29:40.137 --> 02:29:41.772 align:middle line:85% position:50% size:55%
and insurance sectors.

02:29:42.173 --> 02:29:45.843 align:middle line:79% position:50% size:75%
Um, ensure that we are able to
continue to build the clean

02:29:45.910 --> 02:29:49.647 align:middle line:79% position:50% size:78%
energy future that Californians
want, need, and deserve.

02:29:50.114 --> 02:29:53.884 align:middle line:79% position:50% size:78%
Um, and also really to ensure
the stability and the stability

02:29:53.951 --> 02:29:56.020 align:middle line:79% position:50% size:65%
of California's economy as
a whole.

02:29:56.420 --> 02:29:58.856 align:middle line:79% position:50% size:50%
And so the stakes in
this conversation

02:29:58.923 --> 02:30:00.524 align:middle line:85% position:50% size:53%
could not be greater.

02:30:00.791 --> 02:30:03.060 align:middle line:79% position:50% size:75%
And I think the scope
and scale of the challenges we

02:30:03.127 --> 02:30:05.363 align:middle line:85% position:50% size:68%
recognize our are enormous.

02:30:05.429 --> 02:30:08.733 align:middle line:79% position:50% size:73%
So, um, as I said at
the beginning of the hearing,

02:30:08.933 --> 02:30:12.236 align:middle line:79% position:50% size:73%
this is the first in a series
of hearings that we will be

02:30:12.303 --> 02:30:16.006 align:middle line:79% position:50% size:75%
having over the next several
weeks, digging into the myriad

02:30:16.073 --> 02:30:20.344 align:middle line:79% position:50% size:80%
challenges and, uh, look forward
to continued conversation

02:30:20.411 --> 02:30:22.980 align:middle line:79% position:50% size:73%
and continued problem solving
with all of you.

02:30:23.247 --> 02:30:25.182 align:middle line:79% position:50% size:70%
In closing, just once again,
thank you to our panelists.

02:30:25.249 --> 02:30:28.386 align:middle line:79% position:50% size:78%
Thank you for everyone who came
to provide public comment.

02:30:28.452 --> 02:30:30.488 align:middle line:79% position:50% size:60%
And with that for today,
we are adjourned.