Reliability Valuation John Engle. 04/26/16

Reliability importance is only exceeded by safety and overloading 2/17/2019 Reliability Value CNP does not directly assign a dollar value (benefit/cost) for reliability (SAIDI) improvement Rule-of-thumb methodology Difficult to measure success Reliability importance is only exceeded by safety and overloading Corporate goal linked to employees’ annual pay adjustments PUC Tx regulations & penalties (10 / 300% circuits)

Value Programs 10% - 300% Vegetation - ~$20 mil 2/17/2019 Value Programs 10% - 300% Extensive root cause analysis Deadlines set to complete issues Proactive approach created Vegetation - ~$20 mil Service area - ~$16 mil Automation - ~$5 mil

Distribution Inspection Program 2/17/2019 Value Projects Remote analysis AMS data Outage detection Transformer loading Voltage detection Automated devices / sensors Distribution Inspection Program Pole-by-pole Ground line treatment IR Inspections

Questions

Thanks!