the calculation of risk reduction and is easier to understand. MultiAttribute Utility Functions: Utilities should calculate the CoF associated with a risk using a properly designed multiattribute utility function. For each attribute (consequence category) the utility must specify the range, or units over which the attribute will be measured; the scale or the relative value of each level of the attribute; and the weight or the relative importance of each attribute as compared to the other identified attributes. The weight of each attribute is determined by comparing the value of changing each attribute from its worst to its best level to similar changes in level for the other attributes. Each utility should be required to demonstrate in its RAMP that its multiattribute utility function is properly designed and implemented. Safety Impacts: In order to ensure the proper prioritization of public and employee safety when calculating the CoF, the Commission should identify its preferred attribute weight for a public and employee safety attribute. Prioritization of Projects by Risk Reduction per Dollar The proposed improvements to CoF and LoF will allow the utilities to determine the risk reduction score for any given mitigation project. That information can be used in conjunction with project costs to calculate the risk reduction per dollar spent for every proposed mitigation. Prioritization of projects by this metric will provide an interim means to judge the costeffectiveness of utility risk mitigation portfolios while optimization techniques are implemented. Initial Implementation of Optimization: While full optimization of utility risk management portfolios may require additional time and effort, the utilities can begin to implement optimization techniques beyond prioritization
the calculation of risk reduction and is easier to understand. MultiAttribute Utility Functions: Utilities should calculate the CoF associated with a risk using a properly designed multiattribute utility function. For each attribute (consequence category) the utility must specify the range, or units over which the attribute will be measured; the scale or the relative value of each level of the attribute; and the weight or the relative importance of each attribute as compared to the other identified attributes. The weight of each attribute is determined by comparing the value of changing each attribute from its worst to its best level to similar changes in level for the other attributes. Each utility should be required to demonstrate in its RAMP that its multiattribute utility function is properly designed and implemented. Safety Impacts: In order to ensure the proper prioritization of public and employee safety when calculating the CoF, the Commission should identify its preferred attribute weight for a public and employee safety attribute. Prioritization of Projects by Risk Reduction per Dollar The proposed improvements to CoF and LoF will allow the utilities to determine the risk reduction score for any given mitigation project. That information can be used in conjunction with project costs to calculate the risk reduction per dollar spent for every proposed mitigation. Prioritization of projects by this metric will provide an interim means to judge the costeffectiveness of utility risk mitigation portfolios while optimization techniques are implemented. Initial Implementation of Optimization: While full optimization of utility risk management portfolios may require additional time and effort, the utilities can begin to implement optimization techniques beyond prioritization