Blue Sky Days Vegetation Management Distribution Field Switching 2016 Transmission & Distribution Benchmarking Community Insights Conference Blue Sky Days Vegetation Management Distribution Field Switching August 22-25, 2016 Park City, UT

A Process Model for Managing the T&D Business The Sustain System block below is the area covered by this presentation. Indicates separate D, S, T components Add New Customers Respond to Emergencies Expand System Operate System Sustain System Project/Portfolio Management Develop and Approve Asset Plans Develop System Strategy

BLUE SKY DAY TROUBLE CALL RESPONSE 2016 Transmission & Distribution Benchmarking Community Insights Conference BLUE SKY DAY TROUBLE CALL RESPONSE August 22-25, 2016 Park City, UT

DISTRIBUTION Line service Restoration Spending 18% of distribution O&M spending is on Service Restoration. 10% of FTEs are responsible for first response. Service Restoration O&M Spending per Asset Trouble Operations FTEs per 100k Customers Question DF55 Staffing Details pg 53, SO15

PERCENT OF TOTAL TIME SPENT ON ACTIVITIES BY TROUBLE RESPONDER On average companies use trouble responders for the same activities during both day and night shifts. A key difference is switching from Service Installs & Upgrades to Street Light Orders and other activities. DAY SHIFT NIGHT SHIFT DR pg 81, DR194 DR pg 82, DR194

BLUE SKY DAY TROUBLE CALL RESPONSE - DEDICATED TROUBLE RESPONDERS 89% of companies have dedicated trouble responders. 25% have 24-hour coverage with the average being 17 hour coverage. Square Miles Covered By A Trouble Responder Blue Sky Day Trouble Call Response - Hours Of Coverage Provided By A Trouble Responder Mean 327 Quartile 1 131 Quartile 2: 341 Quartile 3: 470 Mean 17 Quartile 1 9 Quartile 2: Quartile 3: 24 DR pg 79, DR192 DR pg 80, DR193

PERCENT OF CALLS COMPLETELY RESTORED On average about 80% of calls are restored with first response. About 75% of companies have only 1 worker respond to the initial trouble call. DAY SHIFT NIGHT SHIFT Mean 80% Quartile 1 85% Quartile 2: 83% Quartile 3: 75% Mean 77% Quartile 1 85% Quartile 2: 80% Quartile 3: 74% DR pg 85, DR200 DR pg 87, DR205

BLUE SKY DAY TROUBLE CALL RESPONSE – AVERAGE TIME INTERVALS Minutes to First Restoration 29% of the time it takes to restore is spent getting the crew on site Mean 148 Quartile 1 113 Quartile 2: 133 Quartile 3: 154 DR pg 89, DR210

AVERAGE TIME FROM FIRST CUSTOMER CONTACT TO Arrival on site Minutes to Arrival Some organizations activly manage the relationship between mintues to arrive and trouble response coverage Mean 100 Quartile 1 84 Quartile 2: Quartile 3: 119 Square Miles Covered By A Trouble Responder DR pg 88 DR210

Regulator Required Tracking Of Public Safety Incidents On Distribution System Only 32% of respondents are required to track and report on public safety incidents for their distribution system 16 17 18 21 22 23 25 26 27 28 30 31 38 40 46 47 48 49 50 51 52 54 55 56 57 Yes ♦ 32% No 68% ID Response 25 Incidents that include serious injury or fatality involving employees and/or members of the public 23 wires down, dig ins, public contact 40 We voluntarily report large scale outage to our PUC. BES events are reportable to NERC, ERCOT and DOE per regulations. 26 In storms, track response to bona fide FD and PD emergencies. Report all high rise building outages. Report outages >5k customers. 21 Public contacts and fatalities 16 Manhole Fire and Manhole Smoking Events 47 Required to report outages to the Commission that result in 1000 customer hours off. Additionally, we report to the Commission any accidents that cause damage to our infrastructure exceeding $5,000 18 All incidents involving injury or death, property damage greater than $50,000 or newsworthy events. 55 Public contacts and high level emergencies immediately. All outage/trouble data recorded 49 wires down, safety forces on site. T&D D Page 102, 103 Question DP310, 311

Regulatory Requirements 35% of respondents are required to track and report on response time to public safety incidents on their distribution system 16 18 21 22 23 25 26 27 28 30 31 38 40 47 48 49 50 51 52 55 Required to Track response Times Yes ♦ 35% No 65% Requirements for Reporting Not required Average response times 25% Percent of public safety incident reports responded to within a specific time target 19% Other 13% ID Response 22 30 minute response time for a Police/Fire 1 (PF1), indicating immediate threat to life - no penalty as this is not a regulation 16 Respond within 4 hours, 90% of the time, to public safety calls with first responders standing by, at all times (including major events) 51 27 15 minutes response time; a review with other agencies are held every quarter to review and determine best practices and response commitments amongst local governing agencies. 18 Expected response within 60 minutes. No penalty T&D D Page 104, 105, 109 Question DP315, 320, 335

Vegetation Management 2016 Transmission & Distribution Benchmarking Community Insights Conference Vegetation Management August 22-25, 2016 Park City, UT

Unit Price & Fixed Costs together account for 56% Contract Terms Terms Of Vegetation Management Contracts Unit Price & Fixed Costs together account for 56% Time & Materials 45% Percent of companies 22% use T&M exclusively 16% use T&M and Unit Price 39% use T&M and Fixed Cost D page 74 – Questions DP200

A look at costs There doesn’t appear to be a relationship between contract terms and cost Spending per OH Structure Mile Trimmed Spending per Tree Mile Managed Mean $7,174 Quartile 1 $3,201 Quartile 2: $4,591 Quartile 3: $7,820 Mean $4,336 Quartile 1 $2,908 Quartile 2: $3,555 Quartile 3: $5,550 DF page 29 – Questions DF60, SA35 DF page 31 – Questions DF60, SA35

What types of activities are funded Spending Allocations 62% is spent on preventative trimming Tree removal (inc. hazard trees) 16.8% Trouble response (excluding storm restoration) 8.1% Herbicides and growth inhibitors 6.1% Storm restoration 5.5% Other 7.4% Mean $7,174 Quartile 1 $3,201 Quartile 2: $4,591 Quartile 3: $7,820 D page 64 – Questions DP165

10% of outages are caused by trees (3rd highest) Tree Related Outages Customer Interruptions [the numerator of SAIFI] By Cause 10% of outages are caused by trees (3rd highest) Distribution Equipment Failure 21.7% Major Events (2.5 beta method) 20.5% DR page 36 – Questions DR45

Vegetation Management Impact on SAIDI 10% of all minutes 26 minutes caused by trees SAIDI % Of Minutes By Cause SAIDI Allocated By Cause DR page 20 – Questions DR30 DR page 22 – Questions DR30

Communicating To Customers Method Of Communication Most companies only utilize one or two methods and typically only two weeks prior to the work D Page 76 –Questions DP205

Vegetation management Related Complaints # Of Complaints Per 100,000 Customers 73% of respondents track / record vegetation management complaints (19/26) 13 of those 19 reported numbers of complaints 11 of those 13 don’t categorize complaints by type Mean 72 Quartile 1 41 Quartile 2: 61 Quartile 3: 84 D page 78 – Questions DP211

Distribution Field Switching 2016 Transmission & Distribution Benchmarking Community Insights Conference Distribution Field Switching August 22-25, 2016 Park City, UT

Switching– Scope of 2016 Survey Today’s presentation covers highlights for the section located in the Distribution Practices (DP1) Field Switching (DP1) Roles and Dedicated./ No Dedicated Personnel Hours of coverage Roles of Dispatch in ensuring productivity during periods of non-switching

Field Switching Roles– Who performs Switching Processes During normal hours, all companies report use of trouble crews, with most all also using construction crews and substation electricians. 3 use solely trouble crews; 7 of 24 use dedicated operators. 14 of 24 companies use contractors to support switching Off hours staffing shows less use of dedicated operators and contractors Total Respondents= 24 Normal Hours Off Hours Trouble Crew 100% Construction Crew 88% 67% Substation Electrician 83% Dedicated Operator 29% 17% Contractors 58% 21% Other 8% 4% Normal Hours 16 17 21 22 23 25 26 27 28 30 31 38 40 46 47 48 49 50 51 52 54 55 56 57 Trouble Crew ♦ Construction Crew Substation Electrician Dedicated Operator Contractors Other Distribution (DP) Page 92 and 93; Question Used: DP275

Use of Dedicated Switching resources--hours of Daily coverage 3 companies: Co 25, 38 and 16 report using 24 hours of switching support by dedicated resources 3 others, 27, 51 and 52 use 2 shifts of coverage with dedicated resources Distribution (DP) Page 96; Question Used: DP290

Prioritization of work for Roles for non-Dedicated Resources Non-dedicated personnel do a variety of work when not switching---maintenance, patrols, inspections (DP295) For most companies, Dispatch sets the priorities, with switching taking place after trouble ID Response As Assigned by Supervisor and DOC 22 By the Supervisor and OCC 40 Dispatch assigns work as applicable 30 Distribution Dispatcher assigns 90% of work from DSO. The remaining 10% consists of Inspections & misc work are assigned by Field Supervisor. 16 Dispatch sets priority or their direct line supervisors 55 By DCC, Outages and safety issues top priority 23 By operators for trouble and service orders (higher priority), other assignments (lower priority) by service center management 63 The work is prioritized by field management (except Trouble, which is prioritized by DCC personnel when conflicting with assigned planned switching activities Based on established priorities 31 Trouble restoration is first priority then switching. Most of the time the crew doing the work is the same crew that switching the circuit. 28 Trouble work first, then planned/scheduled maintenance work 26 By need date. Outages and emergencies take top priority. 21 1. Emergencies 2. Outages 3. Revenue 4. Construction 5. Maintenance 6. Inspections 20 Trouble and switching before patrols and inspections. 27 Prioritization is based on emergency response, scheduled customer appointments (power kills, etc.) and system generated request. 47 Switching is for projects or maintenance is scheduled in advance and performed by troubleman unless unavailable due to emergent need, in that case the crew performs their own switching if practical 49 Outage, regulatory required and new business, other Distribution (DP) Page 97 and 98; Question Used: DP295 and DP300

role of Dispatch in ensuring employees in primary switching occupations are productively deployed when they are not performing switching 7 of 15 use Dispatch to assign jobs to workers when not in switching or trouble ID Response 25 Switching personnel respond to trouble calls, address customer outages and handle job jar assignments given by Field Supervisors. 22 We dispatch connect and disconnect work along with non outage work from OMS. Also, the Supervisors assign inspections, patrols and PM work. 31 Dispatchers will always keep meter work on the crew and if for some reason we did not have any to give the crew we would contact the crews foreman to notify them they need to provide the crew work. 28 None 23 Dispatching non-outage tickets or supporting other outage tickets 40 Work is assigned to crews based on priority levels. Maintenance work is done when no switching, reactive or trouble work is needed. 26 There is a backlog of company and customer generated work, which dispatch prioritizes and dispatches. 30 N/A. We do not have dedicated switching personel. 16 Assigns priority of jobs 52 Dispatch assigns other, non emergency work. 51 27 Dispatch will deploy Troublemen to patrol circuits when not directly performing under the direction of the systems office. 47 Troublemen are assigned to geographically and respond to switching needs accordingly 55 Monitor and prioritize emergency work and dispatch to field computer. 63 DCC takes care of assigning emergency trouble/outage calls only. Other work is assigned by field management. Distribution (DP) Page 97 and 98; Question Used: DP295 and DP300

Thank you for your Input and Participation! Your Presenters Ken Buckstaff Ken.Buckstaff@1QConsulting.com 310-922-0783 Debi Cook Debi.Cook@1QConsulting.com 760-272-7277 Gene Dimitrov Gene.Dimitrov@1QConsulting.com 301-535-0590 Rob Earle Rob.Earle@1QConsulting.com 315-944-7610 Dave Canon Dave Carter Dave Weiler Dave.Canon@1QConsulting.com Dave.Carter@1QConsulting.com Dave.Weiler@1QConsulting.com 817-980-7909 414-881-8641 607-761-6778 About 1QC First Quartile Consulting is a utility-focused consultancy providing a full range of consulting services including continuous process improvement, change management, benchmarking and more. You can count on a proven process that assesses and optimizes your resources, processes, leadership management and technology to align your business needs with your customer’s needs. Visit us at www.1stquartileconsulting.com