Pipelines & Utilities
CPS Energy & Austin Energy Demand Letters
This analysis reviews data outlining compensation for alleged damages to public property such as gas, water, and electric utility lines sought by public utilities from contractors associated with Google. This data was made available by CPS Energy and Austin Energy as a result of several public information requests.
The documents released by CPS Energy in response to the public information request outlined in the methodology indicate that, from May 2016 to August 2020, the utility made at least thirteen demands to contractors who, according to CPS documents, are associated with Google. Demand letters released by CPS Energy as a result of the public information request include the following statement: “On the date and at the location referenced above, an incident occurred in which CPS Energy lines and/or equipment were damaged. Our information is that you are responsible for the damages.”
Images obtained from CPS Energy in response to a public information request
According to CPS Energy documents, the utility demanded $63,745.39 in damages from contractors, including $1,563.58 categorized as “gas lost due to incident.” CPS Energy categorized the incident results as follows:
CPS Energy Demand Letter Outcomes (2016-2020)
In Austin, the publicly owned utility Austin Energy sent 11 demand letters, indicating a total demand for damage recovery of $65,631.19. Austin Energy does not provide natural gas to customers, and does not include any bill line item for natural gas lost during the incident.
In total, Austin Energy and CPS Energy sent 26 demand letters to 12 separate contractors for a total of $129,376.58 in demands for damage recovery to contractors that were either classified as Google Fiber contractors by the publicly owned utility (CPS Energy), or were sent a demand letter by the publicly owned utility, and named on a Google Fiber permit, and incident resulting in the demand letter was at a location and on a date within what was authorized by the Google Fiber Texas permit (Austin Energy).
Texas Railroad Commission: Pipeline Safety & Fines
According to its website, the Texas Railroad Commission “is the state agency with primary regulatory jurisdiction over the oil and natural gas industry, pipeline transporters, natural gas and hazardous liquid pipeline industry, natural gas utilities, the LP-gas industry, and coal and uranium surface mining operations.” Chapter 18 of Title 16 of the Texas Administrative Code contemplates pipeline safety and damage prevention, and “applies to all persons engaged in or preparing to engage in the movement of earth in the vicinity of an underground pipeline containing flammable, toxic, or corrosive gas, a hazardous liquid, or carbon dioxide.” This portion of the analysis reviewed penalties assessed on entities by the Texas Railroad Commission under Chapter 18 and Title 16 of the Texas Administrative Code.
For the purposes of this section, two parts of the Texas Administrative Code warrant further description. In their “Texas Damage Reporting Form,” the Texas Railroad Commission collects the case facts and circumstances of each individual case along with recommended violations and their descriptions. A recommended 18.4(a) violation includes the description ”The Excavator failed to plan an excavation in such a manner as to avoid damage to and minimize interference with all underground pipelines in the vicinity of the excavation area and/or take all reasonable steps to protect underground pipelines from damage.” A recommended 18.10(b) violation includes the description “The Excavator failed to dig with care within the specified tolerance zone.”
Beyond these two specific parts of the Texas Administrative Code, the Texas Railroad Commission has since 2015 assessed penalties for at least fifty-four individual violations committed by five entities that are named in Google Fiber Texas permit information, totaling $69,000. According to Texas Railroad Commission meeting minutes, each penalty assessment was paid.
The breakdown of the 54 total violations are as follows:
Recommended Violations in Texas Railroad Commission Damage Reporting Forms (2017-2021)
18.10(b): "Failed to dig with care within the specified tolerance zone."
18.4(a): "Failed to plan an excavation in such a manner as to avoid damage to and minimize interference with all underground pipelines in the vicinity of the excavation area and/or take all reasonable steps to protect underground pipelines from damage."
In addition, the Texas Railroad Commission Damage Reporting Forms include the following questions: “Did the excavator notify emergency services (911)?” and “Was there a release of product (blowing gas, hissing noise, odor, bubbles in water or fluid leaking?).” The following pie graphs are a breakdown of each reporting form entry: