1 March 1, 2007 Report An Overview October 30, 2006 – Staff Workshop

2 Presentation Topics Goals  Increase efficiency while increasing the scope of subject matter being reviewed  Promote self-critical reviews Old v New March Reporting Step through Vegetation Management as an example Normalizing reliability indices  “Actual” – adjustments = “Adjusted” Report appendices: all the various metrics

3 What is our goal? Storm Hardening efforts first discussed at the November 29, 2005 Internal Affairs Storm Hardening Goals – are general public interest goals  Minimize damage due to major weather related events  Minimize restoration times following major weather events  Minimize the number and magnitude of rate increases Reliability activities affect non- storm days and storm days. Efficient use of resources Promote utility self-critical review through reporting

4 Old Report Process (Storm Hardening, Pole Inspections & Other Reliability Indices) File summary data – without utility self-critical discussion or analysis  Staff requests selected detailed data  Trends in detailed data discussed/disputed with utility  Interpretations of trends in data discussed/disputed with utility  Management Audits  Drill-down audits of data records supporting summary reports.

5 A Complete Reliability Report Storm Hardened Facilities Wood Pole Inspection Program Vegetation Management Other Storm Hardening Initiatives  Overhead/Underground Overall Reliability Adjustments Resultant Reliability  Overhead / Underground Customer Complaints Appendix with supporting data Appendix

6 Storm Hardened Facilities Describe each storm hardening activity undertaken in the field during 2006 Describe the process used by your company to identify the location and select the scope of storm hardening projects Provide the costs incurred and any quantified expected benefits Discuss any 2007 projected activities and budget levels

7 Wooden Pole Inspection Program Docket Nos EI & EU Provide a detailed description of the Company’s wood pole inspection program Discuss 2006 accomplishments Discuss projected accomplishments for 2007 Include the requirements of the applicable Orders (Appendix)

8 Vegetation Management Program Docket EI Provide a complete description of the Company’s vegetation management program (policies, guidelines, practices) for 2006 and 2007 in terms of both activity and costs  Transmission  Distribution Feeders Laterals Service Drops  Define terms such as danger tree, spot-trim, demand trim, and mid-cycle trim  Describe the criteria used to determine whether to remove a tree, replace a tree, spot-trim, demand trim, or mid-cycle trim, etc  Provide an analysis of the cost and benefits of the Company’s program vs. a three-year trim cycle program

9 Vegetation Management Program (Continued) Describe tree clearing practices in utility easements and authorized rights-of-ways Identify relevant portions of utility tariffs pertaining to utility vegetation management activities within easements and authorized rights-of-ways Tree removal practices for trees that abut and/or intrude into easements and authorized rights-of-ways

10 Vegetation Management Program (Continued) Describe tree clearing practices outside of utility easements and authorized rights-of-ways Identify relevant portions of utility tariffs pertaining to utility vegetation management activities outside of easements and authorized rights-of-ways Tree removal practices for trees outside of easements and authorized rights-of-ways Identify relevant portions of utility tariffs pertaining to customer vegetation management obligations as a term or condition of electric service

11 Vegetation Management Program (Continued) Describe Company practices regarding customer trim requests Describe the criteria used to determine whether to remove a tree, replace a tree, spot-trim, demand trim, or mid-cycle trim, etc Discuss any 2007 projected activities and budget levels. Include the requirements of applicable Orders

12 Other Storm Hardening Initiatives Docket EI For each of the other ongoing storm hardening initiatives provide a detailed discussion describing the activity and costs incurred for 2006 and projected for 2007 Overhead/Underground  Describe the process used by your company to identify the scope of storm hardening projects  Provide any quantified expected benefits  If benefit quantification is not practical or possible at this time, explain when or how the cost-effectiveness of the activity is assessed.  Include the requirements of applicable Orders

13 Storm Season Ready Status Describe the efforts the Company is taking to be storm-ready by June 1, 2007  Revise/update June 5, 2006 Internal Affairs Presentation

Reliability Performance (Rule F.A.C) Discuss overall performance absent adjustments (Form 102)Form 102 Describe the level of detailed reliability data the Company tracks Describe Company efforts to increase critical review of detailed reliability data Describe the process used by your company to identify and select the level of detailed reliability data Discuss adjustments Generation Events Transmission Events Distribution Events Extreme Weather Discuss adjusted performance

15 Generation Events - Adjustments (Rule F.A.C continued) Discuss EACH generation event that resulted in customer outages Address whether the event was localized or system-wide Describe the Company’s efforts to avoid or minimize any similar events in the future in terms of the level of costs incurred and outage duration (Appendix) Provide the 2006 service reliability data for each generation outage event that is excluded from your Company’s 2006 Annual Distribution Reliability Report pursuant to Rule  A table  Electronic file  Date, C, CMI, CI, Total Repair Cost, Replacement KW & KWH Costs, etc

16 Transmission Events - Adjustments (Rule F.A.C continued) Discuss EACH transmission event that resulted in customer outages Address whether the event was localized or system-wide Describe the Company’s efforts to avoid or minimize any similar events in the future in terms of the level of costs incurred and outage duration (Appendix) Provide the 2006 service reliability data for each transmission outage event that is excluded from your Company’s 2006 Annual Distribution Reliability Report pursuant to Rule Appendix  A table  Electronic file  Date, C, CMI, CI, Total Repair Cost, etc

17 Extreme Weather (Rule F.A.C continued) Include in the discussion, the type of weather event, strength (wind speeds/surge-flood levels), locations affected, source of meteorological information, and the performance of overhead and underground systems Describe the Company’s efforts to avoid or minimize in terms of costs incurred and outage duration any similar events in the future.  For Example: reference specific storm hardening activity If the method of deriving the weather exclusion is different from the method used for 2005, please explain the changes and provide the CMI and CI for 2006 using the prior method. (Appendix) Provide the 2006 service reliability data for each extreme weather outage event that is excluded from your Company’s 2006 Annual Distribution Reliability Report pursuant to Rule Appendix  A table  Electronic file  Overhead & Underground statistics & forensics C, CMI, CI, L-Bar, Repair Cost, etc

18 Other Distribution - Adjustments (Rule F.A.C continued) Discuss the Causation of each type of distribution event that resulted in customer outages Describe the Company’s efforts to avoid or minimize any similar events in the future in terms of the level of costs incurred and outage duration (Appendix) Provide the 2006 service reliability data for each distribution outage event that is excluded from your Company’s 2006 Annual Distribution Reliability Report pursuant to Rule Appendix  A table  Electronic file  Causation, Date, CMI, CI, Total Repair Cost, etc

19 Distribution Substation (Rule F.A.C continued) Describe the five year patterns/trends in reliability performance of distribution substations Describe Company efforts to track the reliability of distribution substations Describe the process used by your company to identify and select the actions to promote substation reliability (Appendix?) Provide the number of distribution substations inspected during normal operations (non-storm related) for 2004, 2005, and 2006.

Adjusted Reliability (Rule F.A.C continued) Causes of Outages Events:  5-Yr patterns/trends in outage causation for each of the top 10 causes of outage events, including the frequency, duration, restoration time, cost incurred to restore service, remediation programs and remediation program costs  The process used to identify and select the actions to improve the performance in each of the top 10 causes of outages  2007 activities and budget levels addressing each of the 10 causes of service outage. Three Percent Feeder List:  Identify whether any feeders appear on the 3% listing more than once within a consecutive 5-Yr period and any actions implemented to improve feeder performance  The process used to identify and select the actions to improve the performance of feeders in the 3% feeder list, if any  2007 activities and budget levels directed at improving feeder performance. Regional Reliability Indices:  5-Yr patterns/trends in each regions reliability for each index and on any overall basis  The process used to identify and select actions to improve the regional reliability trends  Discuss any 2007 projected activities and budget levels directed at improving regional reliability performance.

21 Overhead – Underground Reliability Describe the five year patterns/trends in reliability performance of underground systems vs. overhead systems Describe Company efforts to separately track the reliability of overhead and underground systems Describe the process used by your company to identify and select the actions to promote underground distribution systems (Appendix) Provide Overhead and Underground MetricsAppendix  miles, number of customers, CMI, CI, MAIFIe, CEMI5 and L-bar for calendar year

22 Reliability Related Customer Complaints Describe the five year patterns/trends in reliability related customer complaints Describe Company efforts to correlate reliability related complaints with reliability indices for applicable feeder, lateral and subregion Describe the process used by your company to identify and select systemic actions to improve reliability due to customer complaints  If no such program exists explain why.

23 Appendix: 2006 Reliability Data Form 102 is the unadjusted Actual Data  Adjustments to the Actual Data supporting Form 102 Generation Events Transmission Events Distribution Events Extreme Weather Form 103 is the net Adjusted Data OH/UG Comparative Data  Extreme Weather Performance  All Other Weather Performance Pole Inspection Summary Data Storm Hardening Metrics (Electronic file) Feeder Specific Data and attached laterals  OH/UG Comparative Data: Miles, C, CMI, CI, Looping, etc  Feeder load growth, peak load, number of complaints