Incorporating risk information into GRC decision making - PowerPoint PPT Presentation

Incorporating risk information into GRC decision making Presentation to 2015 State Energy Risk Assessment Workshop Richard White CPUC Policy and Planning Division April 29 th 2015 1

CPUC adopts a new paradigm for regulating safety Safety policy statement of July 2014 “Ultimately we are striving to achieve a goal of zero accidents and injuries across all the utilities and businesses we regulate, …” What people hear…  Costs can become un-  Risks cannot be What people think … bounded in the desire to eliminated, only reach “Zero” managed  Implementing a Safety Action Plan to improve the internal What we are doing… safety processes of the CPUC  Embedded risk assessment process into the General Rate Case (GRC)  Developing processes to share risk information with stakeholders  Developing models to evaluate the safety portfolio of a utility 2

CPUC adds new risk-based processes to GRC* RAMP S-MAP GRC Expected Next Risk GRC Mitigation Cycle Risk Risk Risk Report Report Report Year 2 Year 1 Year 3 Safety feedback loop is now built into GRC *D.14-12-025. Order Instituting Rulemaking to Develop a Risk-Based Decision- Making Framework to Evaluate Safety and Reliability Improvement S-MAP: Safety Model Assessment Proceeding 3 RAMP: Risk Assessment Mitigation Phase

CPUC is facilitating risk communication among stakeholders Stakeholders Program Program selection w/ expected Utility based assessment and costs and expected risk risk models mitigation plan mitigation Utilities SED Final S-MAP RAMP GRC Staff Rule report CPUC Stakeholder workshop: Model Program review review and comments and comments Intervener = Risk Communications 4

CPUC is exploring ways to model the safety portfolio of a utility A Bayesian network approach to modeling the = safety portfolio of a utility Natural events Injuries System Utility response Recovery Terror Outage Attacks impact Prepared Asset Environment condition -ness Accidental dig in Cost Asset Worker Testing Testing Local conditions Convenience External event Utility system Stakeholder uncertainties uncertainties values 5

Ongoing challenges for incorporating risk information into safety regulation Building confidence in risk-informed decision making 1 Developing safety metrics utilized by all utilities 2 Identifying leading indicators of safety risk 3 Distinguishing long term objectives from short term 4 objectives Establishing clear risk communication standards for 5 utilities, regulators, and interveners 6