1 Overview of Reliability Requirements XYZ Cooperative Date: abc

2 Overview History & Timeline Requirements –General –Recording –Reporting Understanding the 3 Indices IAEC Model Reliability & Inspection & Maintenance Plan XYZ REC’s Reliability Plan Development

3 History & Timeline IUB began studying customer choice March IUB staff report on electric reliability as a part of studying customer choice 1999 and customer choice debate in legislative process December IUB opens inquiry case on electric reliability December Final IUB staff report in the inquiry on electric reliability

4 History & Timeline February 2002 IUB proposes revised reliability rules October 25, 2002 IUB adopts revised rules related to electric reliability December 18, 2002 Revised reliability rules effective January 2003 IAEC files for waiver of rules to make changes in 7/1/03 filing January 2003 IUB grants IAEC waiver request

5 History & Timeline December February 2003 IAEC works with Regulatory Affairs Committee to develop model reliability plan and works with IUB and OCA staff March 2003 IAEC distributes final model reliability plan July 1, 2003 Local board must adopt and approve of cooperative’s reliability plan; updated annually Plan as approved by the local board must be filed with the IUB & OCA April 1, st Annual Reliability Report provided to local board with copies to the state

6 Requirements-- General 1.Reasonable efforts to avoid and prevent interruptions 2.Design, construction and maintenance 3.Effective preventive maintenance program 4.Appraising reliability 5.Keep records of interruptions of service & analysis 6.Reasonable efforts to reduce the risk of future interruptions 7.Waiver Note: All of the general requirements, for the most part, were in the IUB reliability rules prior to the revised rules and they applied to electric cooperatives.

7 Requirements— General: Power Quality Utility must investigate customer power quality complaints. Utility must determine the cause of the problem on the utility’s systems. In addressing these problems, each utility must implement to the extent reasonably practical the practices outlined in the IEEE standard.

8 Requirements— General: Harmonics Utility must investigate and take actions to cure the problem of excess when excessive harmonics. Utility must implement to the extent practicable and in conformance with prudent operation the practices outlined in the IEEE standard.

9 Requirements— Recording Utilities with less than 50,000 meters –Record and maintain data to compute 7 year period average annual hours of interruptions due to cause in 4 categories: Power Supplier Major Storm Scheduled All Other –Note: Must maintain 7 years of data but do not have to compute 7 year average.

10 Requirements— Recording Utilities with less than 50,000 meters –Requires use of Table 1 and 2 from RUS Bulletin –Includes the major cause categories of equipment or installation, age or deterioration, weather, birds or animals, member (or public), and unknown. –Also, it must include the subcategories recommended by RUS for each of these major cause categories.

11 Requirements— Recording Utilities with less than 50,000 meters –Maintain and record data to compute SAIFI, SAIDI and CAIDI; once with “major storms” and once without. Make records of interruptions available to board staff as needed.

12 Reliability Indices Understanding the 3 reliability indices with an example: –SAIFI –SAIDI –CAIDI

13 Reliability Indices-- SAIFI System average interruption frequency index (SAIFI). Average number of interruptions per customer during the year. Computed as follows: Total Number of Customer Interruptions Total Number of Customers Served

14 Reliability Indices— SAIDI System average interruption duration index (SAIDI) Average interruption duration per customer served during the year. SAIDI is the index computed to comply with current RUS requirements.

15 Reliability Indices— SAIDI SAIDI computed as follows: Sum of All Customer Interruption Durations Total Number of Customers Served

16 Reliability Indices— CAIDI Customer average interruption duration index (CAIDI) Average interruption duration for those customers who experience interruptions during the year. CAIDI approximates the average length of time required to complete service restoration on average. Or thought of from the member-consumer’s perspective: it is on average how long it took the cooperative to restore service to those members who were interrupted in the period.

17 Reliability Indices— CAIDI CAIDI computed as follows: Sum of All Customer Interruption Durations Total Number of Customer Interruptions or CAIDI=SAIDI/SAIFI

18 Example

19 Indices--Question What is a good or acceptable index? Answer: This depends upon several factors. First, a utility should compare itself overtime. Care must be taken in comparing one utility to the next because of factors such as terrain of service area, ownership of substations, methods used in recording information, consistency among staff and from year to year in recording data to name a few.

20 Requirements— Reporting Reliability Plan & Inspection and Maintenance Plan Reliability Report

21 Requirements— Reporting Reliability Plan & Inspection and Maintenance Plan –Local Board approve by 7/1/03 –The plan must describe the cooperative's reliability programs related to: (1) vegetation management; (2) animal contact reduction program, if applicable; (3) lightning outage mitigation program, if applicable; (4) other programs that may be reliability related. –Additionally, the plan must describe the cooperative's current ability to track and monitor interruptions. –And describe how the electric cooperative plans to communicate its plan with customers/consumer owners. –Plan must be updated not less than annually.

22 Requirements— Reporting Annual Reliability Report –By April 1 cooperative must prepare for its board of directors a reliability report. (1 st report due 4/1/04) –Report must address: 3 Reliability indices (SAIFI, SAIDI & CAIDI) {5 years with and without major storms} Progress on any reliability programs identified in its reliability plan –Informational copies to IUB and OCA and must be made publicly available in its entirety to customers/consumer owners.

23 Requirements— Reporting Information to customers –Customer may request a report about the service reliability of the circuit serving that customer. –Within 20 days utility must supply report to customer at a reasonable cost. –Report should identify which items are due to major events. –Rule is encouraged, “to the extent it is administratively feasible,” for utilities with under 50,000 customers. –Rule is required for utilities with over 50,000 customers.

24 Reporting--IOUs Annual Reliability and Service Quality Report for Utilities with More than 50,000. –a. Description of Service Area. (Urban & Rural). –b. System Reliability Performance--Annual. –c. Reporting on customer outages. –d. Major Event Summary. –e. Information of Transmission & Distribution Facilities. –f. Plans & Status Report. –g. Capital Expenditure Information. –h. Maintenance.

25 IAEC Model Reliability Plan IAEC Regulatory Affairs Committee worked with IAEC to develop a model reliability plan & inspection and maintenance plan IAEC worked with IUB and OCA staff in addressing their concerns with the model. The model is a guide for each cooperative to use in developing their own plan. The model will need to be revised to fit the specifics at a given cooperative. Make sure what is in your plan lines up with what you are doing or what you plan to do.

26 Outline of IAEC Model Plan System design System construction System operation System maintenance and inspections Data recording Data reporting and Communications

27 IAEC Resources IAEC Reliability web page – fo.shtml IAEC model reliability & inspection & maintenance plan FAQs related to reliability RUS Bulletin IUB order adopting rules IUB order with IAEC notes on co-op applicability Other documents

28 XYZ REC’s Plan Development