HomeMy WebLinkAbout4.02 Rule20AUtilityUndergrCITY CLERK
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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: 14A— 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 27`h. 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 implemented. 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 neat 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 staffinember 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 continuing to monitor the proceedings at the CPUC and to communicate with PG&E regarding the
City's Rule 20A project.
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COPIES TO: Sterling Pflaum, PG&E oGf'
ITEM NO. JJ
gAagenmis6rule20a project status 4*41
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