1. Leak Management Best Practices
Central Hudson Gas & Electric Corp.
Leak Management Best Practices Roundtable
October 15, 2014

2. Today’s Agenda Company Overview Leak Survey Program
Details
Scheduling
Data Transfer
Leak Repair Program
Leak Classification
Central Hudson Practices
Bonus Structure & Results
Business Intelligence
Summary

3. Company Overview Hudson Valley, NY 61,000 services 75,000 customers
174 miles transmission main
1,241 miles distribution main

4. Leak Survey- Details Work done by contractor 4 year contract
Contractor qualified to classify leaks
Perform existing leak surveillances
Bonuses awarded based on performance:
Distribution survey completion deadline is Sept. 1
Leaks found

5. Leak Survey- Schedule Annually Business district mains & services
In 2012, revised leak survey frequency to:
Annually
Business district mains & services
50 miles of main
2,575 services
Metallic mains & services not monitored & protected
230 miles of main
15,200 services
Once every 5 years:
Metallic mains and services protected against corrosion
Plastic mains and services
961 miles of main
43,100 services
Continuously during frost conditions:
All cast iron mains
63 miles of main

6. Leak Survey- Data Transfer
New inspection software implemented (2012)
GL Essentials
Everything (mains, services, meter sets, leaks, etc.) electronically mapped & assigned

7. Leak Survey- Data Transfer (cont’d)
All inspections completed & submitted electronically
More efficient scheduling
More efficient surveying
Completed work uploaded daily

8. Leak Survey – Field View

9. Leak Repair Program Leak Repair Program Leak Classification
Central Hudson Practices
Bonus Structure & Results
Business Intelligence

10. Leak Classification

11. Leak Repair- CH Practices
Target time for initial leak repair
Type 2/2A within 30 days of discovery
Type 3 within 6 months of discovery
Above State Regulations
Annually budget capital dollars for unidentified pipe replacements due to emergent leaks

12. Leak Repair- Details Combination of Internal & Contractor Crews
Contract Details
Multiple contractors on property
Balanced Risk Approach between the company and contractors
T&M type contracts for leak repair vs. no payment unless leak closes
Two attempts to close assigned leak before payment
Daily upload of repair records- penalties for late/missing paperwork

13. Leak Repair Bonus Structure
Contract Details
A 5% of contract leak cost bonus is awarded to a leak that a contractor fixes and closes on first attempt.
Payable directly to crew members
Implemented starting in 2013

14. Bonus Structure- Results
From company wide cost per closed leak repaired by contractors decreased by 10%
During that same time period a 5% reduction in repair attempts per closed leak was realized
The trend is continuing into cost per closed leak continues to decrease.

16. Leak Surveillance

17. Leak Repair- BI Software
Business intelligence software presents real- time leak data in an organized way

18. Leak Repair- BI Software
Dashboard displays data clearly

19. Leak Management- Summary
A well-managed leak survey program helps drive a successful leak repair program
Real time data from field crews is critical
Success incorporating bonus structure into contracts.
Business Intelligence is very helpful to manage programs

20. Questions?
Erica Rybinski
Tom Palmer