Safety Model Assessment Proceeding (S-MAP)
May 2015, PG&E,
filed Applications for CPUC review of their Safety Model Assessment Proceeding
(S-MAP) frameworks and programs to evaluate risks and improve risk management
practices of their operations.
September 2015, the CPUC issued a Ruling
stating that the purpose of the S-MAP proceeding is to develop Policies and
the utilities proposed models to prioritize programs/projects intended to
- Establish standards and requirements
for those models.
S-MAP framework will set the foundation for the CPUC’s Risk Assessment
Mitigation Phase (RAMP). The RAMP will precede utilities’ General Rate Case (GRC)
filings, which will specifically address issues of safety and risk mitigation
for each of the four large investor-owned utilities.
directed in the proceeding to update the Energy
Utility Rate Case Plan, the S-MAP is directed to accomplish certain
a comprehensive analysis of each utility’s risk-based decision making
the different approaches.
common elements across approaches and models.
whether various utility elements can be utilize by other utilities.
CPUC determined that evidentiary hearings were not needed in the S-MAP
proceeding. Instead, parties provided input through Workshops
and written comments.
CPUC Staff Report
March 21, 2016, the CPUC issued its staff's Report
on "Risk Evaluation Models and Risk-based Decision Frameworks"
summarizing stakeholder workshops and making recommendations 2016. The Staff
Report noted some of the strengths of utility risk models, but also provided
examples of where models were lacking, such as comparing models to other
utilities and considering shareholder financials.
Report acknowledges S-MAP progress, but also issued a number of recommendations
and potential improvements, including:
of a specific level of acceptable risk
of the utility models
of a process to find the optimal risk mitigation portfolio
CPUC anticipates an interim Proposed Decision on Policies & Guidelines in
May 2016, with the second phase of S-MAP expected to begin in mid/late 2016.
S-MAP applications will be filed every three years.
supports the S-MAP process and believes that the CPUC should provide clear
guidance to utilities and parties to develop better data, prior to the CPUC
adopting a particular modeling approach.
agreed with a number of the recommendations in the CPUC's March 2016 staff
Report, such as shareholder financial considerations should be removed from
models. ORA also recommends that the CPUC should establish:
detailed and clear roadmap to guide the S-MAP process should be established.
technical working group in order to continue making progress.
April 11, 2016 Comments
on the CPUC Staff's Report.
ORA's April 25, 2016 Reply
ORA's February 12, 2016 Comments
on the January 28, 2016 White Paper on “Intervenor
Perspective Regarding an Improved Methodology to Promote Safety and Reliability
of Electric and Natural Gas Service in California.”
the CPUC’s S-MAP Proceeding
can subscribe at the docket to receive regular updates to the proceeding.
the CPUC’s S-MAP
Webpage for a record of Workshop activities and presentations.