Best Practices Water Companies NARUC Winter Meeting February 2014 Jani Tuzinski, manager Technical Utility Service.

Best Practices Water Companies

NARUC Winter MeetingFebruary 2014

Jani Tuzinski, manager Technical Utility Service

Photo description: Ricketts Glen State Park harbors Glens Natural Area, a National Natural Landmark. Take the Falls Trail and explore the Glens, which boasts a series of wild, free-flowing waterfalls, each cascading through rock-strewn clefts in this ancient hillside. The 94-foot Ganoga Falls is the highest of 22 named waterfalls. Old growth timber and diverse wildlife add to the scenic area. Ricketts Glen State Park is one of the most scenic areas in Pennsylvania. This large park is comprised of 13,050 acres in Luzerne, Sullivan and Columbia counties.

February 2014NARUC Winter Meeting - Water Best Practices1This presentation will be available on the NARUC website. Printing is recommended using the Notes Pages option.

Timeline of EventsFebruary 2014NARUC Winter Meeting - Water Best Practices2

200820092011201220132014DateIndustrySubjectDocket No.Sep 14-15, 2008HURRICANE IKESep 25, 2008EnergyPUC initiated investigation on handling energy outagesApr 30, 2009EnergyReport launched rulemaking & policy statementSep 23, 2009EnergyFinal rulemaking orderL-2009-2104274Dec 15, 2011WATERFinal policy statement revised to include water M-2008-2065532Aug 2011HURRICANE IRENESep 2011TROPICAL STORM LEEOct 12, 2011EnergyPUC special reliability meeting on energyOct 2012SUPERSTORM HURRICANE SANDYJan 10, 2013EnergyPUC initiated Best Practices project for energyMar-Sep 2013EnergyBest Practices team briefings (3) to PUCSep 26, 2013WATERBest Practices kick-off meetingSep 27, 2013EnergyRevised policy statement released for commentsM-2013-2382943Oct 31, 2013WATERBest Practices conference callJan 15, 2014WATERIndustry Best Practices meetingCreating Best Practices for WaterFebruary 2014NARUC Winter Meeting - Water Best Practices3Selection of companiesJuly 1, 2013Invitationsby e-mailJuly 30, 2013Kick-off meetingSept 26, 2013Conference callOct 31, 2013Top 3 issuesNov 22, 2013Finalized issuesDec 15, 2013Company meetingJan 15, 2014To All Class A Water Utility Companies,Over the past two years, several high profile incidents involving jurisdictional water utilities caused the issuance of do-not-use and do-not-consume notices to a significant number of water customers. In addition to the alarming safety implications, each incident resulted in a negative media event. While some incidents were directly impacted by severe weather events that caused flooding and extended power outages, other incidences were due to intrusions into utility facilities. Overall, the Commission commends your prompt and timely responses to these incidents and the various actions you have taken to address any lapses going forward. However, more can and should be done.To promote effective operation in both normal working conditions and during unusual events, the Commission has undertaken coordination of industry best practices among our jurisdictional utilities. Similar to our efforts with energy companies, the Commissions Bureau of Technical Utility Services (TUS) is creating an avenue to initiate the sharing of best practices and lessons learned from preparations, responses, and recovery from these unusual events.All Class A water utilities (utilities with over $1 million in annual water operating revenue) are requested to attend a best practice sharing meeting at the Commissions Executive Chambers on September 26, 2013, from 11 a.m. to 12 noon (immediately following public meeting). Your representative should be prepared to discuss unusual or emergency events they underwent and share their experiences in dealing with such events. The presentation should include a brief description of the event(s), what went well, what went wrong, corrective actions, and lessons learned from the event(s). This meeting is a no-fault environment meant to allow sharing of best practices among utilities without concerns of regulatory consequences.Please reply . . . by August 15, 2013 via email to . . . with the names of your expected attendees. Due to the size of the meeting room, we would like to limit each utility to two participants, if possible. Kick-off MeetingDHSPaWARNSCPTFNAWCPaPUCFebruary 2014NARUC Winter Meeting - Water Best Practices4Govt Agencies & Industry AssocsAgencies:Department of Homeland Security has a vital mission: to secure the nation from the many threats we face.

PaWARN is a statewide Water/Wastewater Agency Response Network (WARN) of utilities helping utilities to prepare for the next natural or human-caused emergency.

National Association of Water Companies is the voice of the private water industrythe organization exclusively representing this group of quality service providers, innovation drivers and responsible partners.

Pennsylvania Public Utility Commission balances the needs of consumers and utilities.

South Central Task Force consists of eight counties in the South Central portion of Pennsylvania. The SCTF will assume a leadership role in delivering a comprehensive and sustainable regional "all-hazards" emergency preparedness program that addresses planning, prevention, response and recovery for events in South Central PA that exceed local capabilities.Kick-off MeetingFebruary 2014NARUC Winter Meeting - Water Best Practices5

Class A water utilities (over $1M in annual water operating revenue)

Eight of the ten largest water companies were available to participate in the initial kick-off meeting. The remaining two companies (CAN DO, Inc. and United Water Bethel, Inc.) came on board in subsequent meetings.

GoalsCoordination among water utilitiesShared experiencesWhat went wrongWhat worked bestCorrective actionsLessons learnedIndustry projectFebruary 2014NARUC Winter Meeting - Water Best Practices6

Notes:

The concept for Pennsylvanias water company Best Practices originated with an earlier project involving energy companies. Based on the success of the energy project, the Commission advocated a similar project for jurisdictional water companies.

The ultimate goal encompasses coordination across all fixed utilities, i.e., water, energy, telecommunications and encourages mutual aid, especially during critical situations affecting consumer safety. February 2014NARUC Winter Meeting - Water Best Practices7No fault environmentNo regulatory consequences . . .

Stated in the invitation letter and reiterated at beginning of meeting.Commission staff was cautioned that the success of the project relies on our promise that all discussions are confidential and may not be used against any of the participants now or in the future

February 2014NARUC Winter Meeting - Water Best Practices8MessageThe MESSAGE could get lost if we fail to keep our promise regarding regulatory repercussions . . . .Kick-off Meeting: Industry TopicsFebruary 2014NARUC Winter Meeting - Water Best Practices9Unforeseen customer service issuesWater utilitys role at EMA CenterStorage tank intrusion incidentCentralized command centerFuel procurement during emergenciesPre-planning and post-mortemExperience with electric power grid Notes:

Staff compiled a 3-page list of topics mentioned during the initial kick-off meeting.

Three primary objectives were expressed:Safety of employeesContinuity of serviceProtection of assets

Topics were categorized as follows:Planning and preparednessUnanticipated problemsProcedures during emergencies

Follow-UpFebruary 2014NARUC Winter Meeting - Water Best Practices10Conference Call: Oct 31, 2013 PaPUC facilitator roleWater companies agreed to each send 3 5 issues to PaPUC for compilation3 common issues emergedWater companies agreed to provide updates to PaPUC Notes:

Documents from electric utilities best practice group meetings provided as a guide.Water group to meet at least quarterly until they get a good handle on things. Group will begin with critical areas of known problems, e.g., customer notifications.PUC is only playing a facilitator role for the first few meetings after which the water group will be in-charge.The group is expected to provide updates on the best practices/lessons learned discussed and improved upon to the Chairman and the Commissioners periodically (possibly next summer).

Follow-ThroughIndustry Meeting: Jan 15, 2014Discussion on West Virginia spill Presentations on each issueSocial MediaCybersecurityFuel alternativesOpen DialogueFebruary 2014NARUC Winter Meeting - Water Best Practices11Notes:

The Best Practices meeting was held immediately following a scheduled closed session of the NAWC PA chapter (not all Pennsylvania water companies are NAWC members). The group expressed interest in learning more about the recent West Virginia spill incident and water contamination including the regulatory response.

#1 CommunicationCustomer Notification and Education through the use of social media before, during and after an incident or emergency

February 2014NARUC Winter Meeting - Water Best Practices12

ISSUESPhoto description: Susquehanna River, Pennsylvania

Observations offered by the group as part of this discussion included the following:Customer call centers remain the primary mode of communication. Not all utility customers engage in social media.Reporters for the press, television, radio, etc., as well as consumers increasingly rely on social media for information during emergency events.Social media offers the real time benefit of enlightening the utility about service outages affecting unreported areas.User preferences for social media outlets constantly change especially with younger customers; staying current presents new challenges to the utility.Company social media messaging should be controlled from the top.During an emergency event, some utility companies bring public relations staff into their command center to track all forms of media, including social media such as Facebook, SnapChat, etc. #2 CybersecurityCybersecurity and the Cyber Threat to our Industry with a focus on SCADA systems and the link between cyber and physical security

February 2014NARUC Winter Meeting - Water Best Practices13

ISSUESPhoto description: Susquehanna River, Pennsylvania

Observations offered by the group as part of this discussion include the following:Cybersecurity and physical security are interdependent.SCADA systems are vulnerable to cyber-attacks. Visual displays should be accessible only through intranets. Multiple layers of security walls make hacking more difficult.Thumb drives pose an entryway for security breaches. As such thumb drives should not be used unless they are scanned for viruses.SCADA software typically varies so patches should not be implemented from a central location.Radio communication is preferable for maintaining contact with plant facilities and cyber access should be limited to a back-up option.Use of satellite communications should be considered.Water plant systems should be designed so that they can be quickly switched to manual control when needed.Redundant controls and back-up data retrieval are important.Utilities should read NARUCs Cybersecurity for State Regulators 2.0 for security audit guidance.ISSUES#3 Fuel SupportIdentifying and Developing Fuel Support Mechanisms during an Emergency

February 2014NARUC Winter Meeting - Water Best Practices14

Photo description: Susquehanna River, Asylum Township, Bradford County, as seen from Marie Antoinette Overlook along Route 6. Visible here is the French Azilum Historic Site, where some Revolution-fleeing French aristocrats settled in 1793.

Observations offered by the group as part of this discussion included the following:The use of alternate fuels (i.e., natural gas) should be considered for emergency generators.Utilities should consider retaining a back-up fuel supplier.A utility may opt to divert fuel oil stores within its facility to serve other equipment.Utility equipment needs to be prioritized for fuel deliveries.Fuel management is as equally important as the fuel supply during emergencies.Utilities should establish relationships with their county emergency management agency (EMA) coordinators to help facilitate fuel procurement during emergencies.

Next StepsIndustry meeting May 2014Implementation resultsSelection of new topics Periodic progress reports to PaPUCProject expansion: small companies February 2014NARUC Winter Meeting - Water Best Practices15February 2014NARUC Winter Meeting - Water Best Practices16Jani TuzinskiTelecommunications & WaterManagerCommonwealth of PennsylvaniaPublic Utility CommissionTechnical Utility ServicesCommonwealth Keystone BuildingP.O. Box 3265Harrisburg. PA 17105-3265Phone:(717) 783-6175Fax:(717) 787-4750E-mail:[email protected]