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HomeMy WebLinkAboutItem 4.02 Rule20AUtilityUndergr CITY CLERK FILE # 1020-30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 3, 2001 SUBJECT: Status of Rule 20A Utility Undergrounding Projects Report Prepared by: Lee S. Thompson, Public Works Director ATTACHMENTS: Letter from PG&E RECOMMENDATION:/~ Receive Report FINANCIAL STATEMENT: None at this time. DESCRIPTION: The California Public Utilities Commission (CPUC) is currently reviewing a request from Pacific Gas and Electric Company and Southern California Edison to suspend or defer Rule 20A utility undergrounding projects. This item has been on the CPUC agenda for the past several meetings and was held over again until March 27th. A member of the City Attorney's staff is monitoring the proceedings. A draft decision was issued on February 23rd, in which the Administrative Law Judge denied certain provisions of the utilities' proposals relating to personnel issues, but recommended that the capital deferments, including Rule 20A projects, be implememed. PG&E has sent letters to many cities and counties throughout California indicating that the projects have been suspended. A number of agencies' projects have been halted, some of which are under construction. Dublin's next Rule 20A project, which is associated with the Dublin Boulevard Widening from West of Clark Avenue to Sierra Court, is proposed to begin next fiscal year in conjunction with the road widening project. PG&E has not begun any design work for this undergrounding project as yet; however, the PG&E staffmember who serves as the Rule 20A liaison has indicated that the design of the project will go forward, with construction scheduled to start late in 2001. Since the City's road widening project would require relocating the overhead utility poles along Dublin Boulevard, it is possible that PG&E will determine that undergrounding is more cost effective than moving the poles. Staff is cominuing to monitor the proceedings at the CPUC and to communicate with PG&E regarding the City's Rule 20A project. tl:Xal!enmisc\rule20a project status COPIES TO: Sterling Priam, PG&E ITEM NO. 1030 Detroit Avenue Concord, CA 94518-2487 Robert M. Fredianelli UO OM&C Area 2 Director Pacific Gas and Electric Company February 27, 2001 Mr. Richard Ambrose City Manager City of Dublin P. O. Box 2340 Dublin, CA 94568 RECBVED MAR - 5 2.001 CiTY-OF DUBLIN Re: Rule 20A Undergrounding Dear Mr. Ambrose: As you are well aware, Pacific Gas and Electric Company is currently in a severe-financial crisis. The Company, the Governor, the State Legislature,. and regulators are striving to resolve the wholesale electric supply crisis in a timelyand effective manner. The Company's borrowing capacity has been exhausted and its available cash is rapidly being depleted. The Company's strategy under these unfortunate circumstances is to minimize the impact on customers, and concentrate scarce funds on projects that ensure the safe reliable operations of its systems. The Company has identified cash conservation measures to see it through this crisis; included among the items that are being temporarily deferred or suspended are Rule 20A projects. Under the present circumstances, since the primary benefit of Rule 20A projects are aesthetic, the Company believes that it is appropriate to defer the Rule 20A underground conversion projects until the financial crisis is resolved. The Company has already begun the process of deferring some Rule 20A projects, For Rule 20A projects in construction, we have reviewed the project and determined an appropriate and safe point to stop the work. This has been communicated to the Project Managers of both the city and the Company. We have also communicated with the other affected utilities. For planned projects that are not yet under construction, we will work with the affected cities to delay that construction. For planned projects to be done with a road improvement or other street improvement, it is our intent to review the project and determine the least cost option to permit the road improvement work to continue. Throughout the process, we intend to work closely with city staff. The Company is constantly evaluating its financial situation to determine if it can discontinue its cash conservation measures, or if the implementation of additional measures will be necessary. Our hope is to manage through this crisis so that we may resume deferred projects once the electric crisis is resolved. We appreciate your cooperation during this difficult time. If you have any concerns, please feel free to contact me at (925) 674-6335. Sincerely, Steve Grimes. Sr. Project Manager