R. Bruce Wright, CPCU
One of the things our consultants frequently bring up during visits to cooperatives insured in the NHA Power program is the importance of a formal documented line patrol program; a program designed to pinpoint potential problems out in the system so that repairs can be made before actual problems occur. Oftentimes, these conversations focus on ways to systematically inspect the distribution system (along with any transmission lines that may be owned) while only touching lightly if at all on the issue of defects on the consumer’s side of the connection.
Defects on the consumer’s side of the connection present a difficult challenge. There are some good reasons why you may not want to have a formal program to look for defects in the consumer’s equipment. These reasons include the problems of creating an expectation among your customers that you will ensure that their equipment is properly installed and working, creating a duty for yourself where one may not now exist, and the practical fact that some potential problems are simply not easily spotted without a very close inspection, one that might require inspections inside a consumer’s building. Reasons like these cause many utilities choose to try to “steer clear” of the whole issue of consumer-side defects.
Unfortunately, this strategy does not solve the problem. Ignoring the issue of consumer-side defects can turn out to be a very costly decision. In fact, the failure to observe open and obvious defects, or worse yet, the failure to respond to all reports of potentially dangerous situations, can be disastrous. Let’s look at an example of what I mean, in the form of an actual case taken directly from the insurance company's claims files. Here are the facts reflected in an actual file.
One summer, a new member called the offices of a cooperative insured in our program and asked that service be connected at the house he had just rented. The residence was promptly hooked up, a meter installed, and service began that June. About six months later, in December, this member was disconnected for non-payment. That same day, immediately after the shut-off, the member came in and paid his bill. Later that afternoon a lineman returned to the house to restore service. While the lineman was taking care of the reconnect, the member came out of the house and asked him to take a look at the power line supplying the water well pump house. The lineman did as he was asked, and immediately saw that the line in question was a poorly maintained 3-phase 110v line on the consumer’s side of the connection that attached to the pump house about 6’ off the ground. The insulation on the 110v line was worn, frayed, and partly missing, due to age and weathering. The line also passed directly over an adjacent propane tank that had been placed there sometime in the past by persons unknown, presumably by the propane service company at the request of the property owner, or a previous renter. The power line to the pump house passed only about 3’ above this tank.
After surveying the scene, the lineman advised the member that the best solution would be to put the line underground, and that cooperative could do that for him. He continued by saying that since the line was not the cooperative’s line, and was on the property owner’s side of the connection, there would be a charge for this service. When he heard that, the member decided to drop the issue. Here’s what the area looked like:
The following April, this member’s young daughter was playing in the yard. She climbed up on the propane tank, lost her balance, and touched the energized line, burning and severely injuring her hand. In this state, as in most states, an electric utility has the right to discontinue service whenever a known, dangerous situation is present. Even though the problem was on the consumer’s side of the meter, the cooperative was clearly on notice of the existence of the hazardous situation. The case was ultimately settled for several hundred thousand dollars. Below right is a close-up of the area where the contact took place.
What’s the moral of the story? The truth is, no outsider can give you a hard and fast rule on how to deal with the issue of problems on the consumer’s side of the connection. Every utility must decide on a policy consistent with its own management philosophy, acceptable to its own Board of Directors, and that takes into account the input of its own outside legal counsel. But, it is clear that any policy that relies on the ostrich approach, ignoring these problems and hoping that by doing so the dangers will be bypassed, is a wrongheaded approach. So resist the temptation to bury your head in the sand!
At the very least, you should have a clear policy, one that is well communicated and understood by all of your employees, that requires a formal response (preferably a written response) to all consumer complaints or inquiries, The policy should spell out that all responses require advance review by the appropriate level of management. What “the appropriate level of management” means depends on your organization and your choice. The important point is that you must make an active decision as to who should be involved and not leave it to chance, or make it a judgment call for the front-line workers.
Your policy should also directly address the issue of potentially dangerous situations, state specifically who at the co-op will decide what meets the definition of “potentially dangerous,” and describe clearly what you will do when a potentially dangerous situation is observed. You should consider advising and training all of your employees, especially all field workers and meter readers,* on how to spot (and report) any open and obvious defects on the consumer’s side. Of course, there may be real benefits to empowering your field workers to immediately correct any potentially dangerous situations that come directly to their attention while they are in the field, or isolate the defects from the power supply. This advice and training should apply to “open and obvious” defects and to any defects that are directly mentioned by members or the general public.
We think that your goal should be to observe and respond to any open and obvious defects on the consumer’s side of the meter, to respond promptly and systematically to any reports of problems regardless of their source, to ensure that any dangerous situation is either immediately corrected or isolated from the power supply, and to document all of your efforts.
NOTE- If your cooperative uses contract meter readers, you should consider adding a contract provision requiring them to know how to spot open and obvious hazards, and requiring them to promptly report to you on any defects they either see themselves or that are reported to them in the course of their duties. You can even include them in the training you give to your own people.