The historic data presented by the company on outages are not accurate. The company admitted to not collecting all relevant data, changing the standards for data collection and submitting inconsistent data. The level of vegetation management is unacceptable, including a lack of preventive control and neglect of proper clearing which has led to unnecessary risks. This aggravated the impact of the January 1997 ice storm which left up to 120,000 EGS customers without power. The management structure does not give Texas managers authority and resources to supervise their specific areas.
Rural customers are more likely to experience outages and wait longer for restoration of power.
To help improve service quality, the company would hire an independent consultant to assess the distribution system, revise data collection practices and establish evaluation criteria. In an annual proceeding before the Commission, the company would have to file a reconciliation statement showing how effectively the company has complied with new quality of service standards. The exact amount of the penalty will be computed once a final order is issued in the company's pending rate case. The order approved today would reduce the company's authorized return on equity, including taxes, by 60 basis points as of June 1, 1996. Commissioner Wood and Walsh heard the service quality portion of the rate case themselves on Nov. 20 and 21, 1997.