1. Long-Term Planning Presented by: APP Site Visit Don Untch
Lead Long Range Asset Planner
APP Site Visit
October 30 – November 4, 2006

2. Strategic Tactical LONG-TERM PLANNING or
Fossil & Hydro Generation (F&HG) long-term planning can be either:
Strategic or
Tactical

3. LONG-TERM PLANNING FLOW HIGH LEVEL OVERVIEW

4. STRATEGIC PLANNING F&HG Ten Year Strategic Plan:
Develops an Asset Management Philosophy
Lays the Foundation for a Working Plan that will Evolve with the Changes Associated with Our Industry
Is Comprehensive, Giving Consideration to all Known Factors and Variables
Incorporates a Environmental Compliance Plan
Helps Improve Fleet Operational Performance
Considers Yearly Fleet Expenditures
Addresses Demographic Concerns with a Workforce Plan
Suggests a Potential Fleet Portfolio

5. STRATEGIC PLAN CONTENTS
Summary of Fleet Historical Trends
Performance Trends
Energy Value and Contribution
Equivalent Availability
EFOR (Equivalent Forced Outage Rate)
Maintenance and Forced Outage Summary
Capital and O&M Spending Trends
Workforce Plan (Demographics)
Future Major Operating Liabilities
Environmental Compliance Strategy
Long Term Fleet Portfolio

6. STRATEGIC PLANNING PROCESS EXAMPLE WORKFORCE PLAN
PRIMARY GOALS
SECONDARY GOALS
INITIATIVES
LABOR RELATIONS ISSUES
DETERMINE OPERATIONAL ROLE OF THE PLANT
DETERMINE OPTIMAL STAFFING LEVELS FOR THE PLANTS
Review Results from Financial Models & Strategic Long Term Plan
Determine Role of Shared Resources
Review “Outsourcing”
Review Layoff Allowance
Consider Strike Impact on Staffing
Benchmark Against Other Plants & Utilities
“Outsourcing”
Layoff & Recall Contract Provisions
Layoff Allowance Policy
Transferring Employees Between Plants

7. STRATEGIC PLAN – PROGRESSION
Follow-up Meetings with the Various Organizations to Continue Development of Strategic Long Term Plan
Fuel Procurement & Fuel Logistics
Human Resources
Information Technology
Market Operations
Corporate Communications
Environmental
Regulatory Services

8. LONG TERM “TACTICAL” PLANNING
F&HG Ten Year Tactical Plan:
Focuses on Details
Focuses on Action
Incorporated into an Executable Schedule or Timeline
Focuses on Implementation
Focuses on Results
Tightly Integrated with the Annual Budget Process
Turns Strategy into Reality

9. TACTICAL PLAN – TYPICAL YEARLY MEETING DISCUSSIONS TOPICS
Unit Role
Environmental Compliance
Market & Commercial Operation Objectives & Shortfalls
Fuel Procurement & Handling
Financial & Budget
External Benchmarking Data
Unit Value Assessment Study (if Applicable)
Equipment Liabilities by Engineering Discipline
Engineering Facility Health Report
Health Reports from Previous Business Plans
Equipment “GAP” Program (Expectation Shortfalls)
Engineering Input & Comments
Long Term Planned Outage Frequency and Scheduling

10. TACTICAL PLAN – OUTPUT & RESULTS
Long Term Planned Outage Schedule for each Unit
Long Term Turbine, Generator, Boiler Feed Pump & Transformer Inspection Schedule with Spare Part Flow
Basis for Input into:
Financial Analysis
Budgeting Systems
Business Planning Process Long Term Plan
Unit Long Term Liability Grid Sheet Summary
Assigned Action Item List
Meeting Minutes

11. TACTICAL PLAN – LONG TERM PLANNED OUTAGE SUMMARY - EXAMPLE

12. TACTICAL PLAN – LONG TERM MAJOR EQUIPMENT REPAIR SCHEDULE - EXAMPLE

13. TACTICAL PLAN – GOING FORWARD
Improve Long Term Plan Information Exchange
All Fragmented & Pertinent Information Located in One Place
Information is Very Accessible to Multiple Users
Comprehensive Plan Used to Facilitate the Decision Making Process

14. Appendix

15. SIMPLIFIED LONG TERM FLOW PROCESS

16. TACTICAL PLAN – LONG TERM SPARE PART FLOW - EXAMPLE

17. TACTICAL PLAN – LIABILITY SUMMARY EXAMPLE FOR 2006
Liability Codes Defined Next Slide

18. TACTICAL PLAN – LIABILITY CODES