Distribution Circuit Reliability Tool Draft Only Distribution Circuit Reliability Tool Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved

AEP Distribution System Draft Only AEP Distribution System Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved

What is the Circuit Reliability Tool? Draft Only What is the Circuit Reliability Tool? A tool to analyze high volume distribution primary outage causes (trees, lightning, animal, and deterioration), and provide circuit segment-level (clearing device) analysis of outage mitigation for these causes. Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved

Why is the Tool Important? Draft Only Why is the Tool Important? Trees, lightning, animal, and deterioration outages contribute significantly to reliability performance To identify appropriate expenditure levels and to allocate funding in the most effective manner To leverage engineering resources by providing useful information to enable greater productivity and better decision making Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved

Confidential and Copyright 2005 AEP - all rights reserved Draft Only Applications Analyze reliability improvement needs Develop circuit plans (at the clearing device level) Aid engineer in circuit analysis Budget development Identify and support budget level needed to meet reliability goals Provide basis for comparison to other reliability improvement options Support long term strategic initiatives Long term reliability objectives Multi-year budget forecasts Regulatory initiatives Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved

Confidential and Copyright 2005 AEP - all rights reserved Draft Only Tool Capabilities Evaluate reliability improvements at a circuit segment level Identify SAIFI, SAIDI, CAIDI, and CEMI improvements Determine funding required to achieve a targeted level of reliability performance Optimize expenditures Capital O&M Total expenditures Evaluate sensitivity between cost and various reliability improvements (e.g. identify a CEMI ceiling, constrain expenditures, and optimize SAIFI) Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved

Tool Capabilities (continued) Draft Only Tool Capabilities (continued) Develop circuit improvement plans Analyze at a circuit, district, or jurisdictional level Identify avoided outage costs Apply weightings for targeted circuits or for circuits with high customer complaints Flag opportunities for sectionalizing improvements Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved

Confidential and Copyright 2005 AEP - all rights reserved Draft Only How the Tool Works Integrates GIS and outage data at a circuit segment level Identifies outages by cause in each circuit segment Uses cost mitigation models to optimize costs and benefits of outage mitigation in each segment Builds CEMI connectivity logic Chooses solutions that provide the greatest cost/benefit value, according to the solution parameters selected Calculates projected reliability performance after mitigation Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved

Confidential and Copyright 2005 AEP - all rights reserved Draft Only User Interface Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved

Confidential and Copyright 2005 AEP - all rights reserved Draft Only Implementation Tool implemented 4th quarter 2005: 7 operating companies: Developing circuit work plans “Post” evaluation of mitigation work effectiveness Remaining operating companies implementation planned when GIS to Outage Management System data is matched Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved

Confidential and Copyright 2005 AEP - all rights reserved Draft Only Questions? Confidential and Copyright 2005 AEP - all rights reserved copyright 2004 AEP - all rights reserved