1. How Duke Energy Prepares for Emergencies and the Restoration Process North Carolina Emergency Management Association Conference Marty Wright, Director Business Excellence Jeff Riggins, Director Storm Governance Randy D. Welch, District Manager

2. The New Duke Energy On January 10, 2011, Duke Energy and Progress Energy announced intent to merge Regulatory approvals were achieved and the Duke Energy and Progress Energy merger has created the largest utility in U.S. – 7.1 million customers The combined company is called Duke Energy and headquartered in Charlotte, N.C. and serves: NC,SC,FL,KY,IN,OH Market Cap of combined companies is $49 billion as of June 12, 15 th 2012 The company now has more than a quarter-million miles of primary and secondary distribution lines. That’s almost the distance from the Earth to the moon.

3. Safety is our top priority Public  Educate public before events  Public service announcements  Media messages  Storm website Personnel  Tailgate sessions  Safety briefings for non-native crews  Field oversight of crews 3 Safety

4. Planning is the Key to Success  Ongoing Process  Dedicated Resources  Continuous Improvement  Scalable  Relationships  Predetermined Staging Sites  Identify Internal Resources 4 Plan, Train and Drill

5.  Monitor and Forecast Weather  Predict Potential Damage and Resource Needs  Conduct Scheduled Conference Calls  Implement Emergency Plan  Prepare Employees and Logistics Providers  Initiate Mutual Assistance Discussions  Begin External Communications 5 Prepare for Event

6. 6  Early assessment Validate resource needs Establish system ETR Complete within 24 hours  Ongoing detailed assessment Pole by pole  Provide follow-up actions (oil spills, lights, danger trees) Assess Damage

7. 7  Plan delivers timely ETR so our customers can plan  Rigorous process for estimating restoration times System Level County level Circuit level Individual customer level  Press releases with system & county level ETR  Individual ETR available to customers Estimated Time of Restoration

8.  Service restoration is prioritized Public safety related situations Emergency services (hospital, fire, police) Critical infrastructure (water, sewer) Main distribution lines Lateral neighborhood lines Individual transformers and services  Duke leadership manages the restoration process  Resource plan managed continuously 8 Service Restoration

9. Communications During a Storm are Critical Target Audience  Governmental Communications  Regulatory Communications  Media Communications  Customer Communications  Online Information Messages  Magnitude of Storm and Damage  Number of Outages  Estimated Times of Restoration  Safety before, during and after the storm

10. Focused on Continuous Improvement of our Plan 10  Internal critiques  Feedback from customers  Analysis of data  Best practices

12. 2011 Damage in Gaston & Lincoln Counties

13. 2011 Summer Storms / Extreme Flooding

14. Mutual Assistance

15. EEI Governing Principles  During the 1950’s, The Edison Electric Institute developed “Governing Principles” that member companies adhere to during Mutual Assistance.  Pros:  High Level  Good baseline for how to do business  Like a contract (SOX)  Safety is always the most important principle  Cons:  Not very detailed  Hard to change  Conclusion:  Great work but too large to be effective in moving resources  More work needed on a detailed level

16. Regional Mutual Assistance Groups  Easier to get fewer companies involved quickly  Detailed Guidelines  Closer Relationships  More effective moving resources  Duke is a member of three  Southeastern Electric Exchange Mutual Assistance Group  Great Lakes Mutual Assistance Group  Midwest Mutual Assistance Group  There are several others  Mid-Atlantic Mutual Assistance Group  New York Mutual Assistance Group  Texas  Northeast Mutual Assistance Group  Wisconsin  Western

17. Southeast Electric Exchange Regional Mutual Assistance Group  Geography  One Call  Efficient  Availability of Resources  Includes almost all major utilities within 1-2 days travel

18. How Does The Mutual Assistance Process Work?  Example: Duke Meteorologists predict a possible ice storm throughout the I-85 corridor  Duke would begin talking to neighboring utilities and contractors  Verifying weather reports  Determining potential Impact  Preparing logistics  Preparing internal employees and contractors  Plan an SEE Mutual Assistance Call if Needed

19. What Information is Shared On the Call 1.Roll Call 2.Weather report 3.Resource Requests 4.Available Resources 5.Non member companies impacted 6.Logistics 7.Set the date & time for the next conference – give members the toll-free number. Objectives of the Call 1.Identify resource needs/requests (crews, logistics, support, etc.) 2.Identify available resources (including contractors) 3.Match requests with available resources 4.Matched Responding companies and Requesting companies then have the okay to make arrangements like when to travel, exchange rosters, etc.

20. What Normally Happens  Resource requests FAR outweigh available resources  Usually most utilities plan for the worst  Utilities are conservative –Utilities likely to be impacted ask for lots of help –Utilities with minimal risk of being impacted are still likely to hold resources until storm passes  Weather forecasts are estimates at best  One or two degrees of temperature make(s) all the difference in the world from cold rain to tree and line destruction  Forecast models never agree on exactly where the ice impact will occur –Hard to pre-stage and mobilize before the event –Deployed crews may have to be recalled

21. Decision Time  Do we reach out further for resources?  Do we wait until impact and see if we can get resources closer that would expedite the restoration?  Logistics?  Staging Areas?  COMMUNICATIONS!!! If conditions warrant, we reach out to the other Regional Mutual Assistance Groups

22. RMAG (Regional Mutual Assistance Groups) Texas MA Midwest MA Wisconsin MA GLMA SEE MAMA Great Lakes Mutual Assistance Mid-Atlantic Mutual Assistance Midwest Mutual Assistance New York Mutual Assistance Group Southeastern Electric Exchange Texas Mutual Assistance Western Mutual Assistance Wisconsin Mutual Assistance Northeast Mutual Assistance Group NEMAG NYMAG Western MA

23. Next Call  Repeat the process  Share and True up weather reports  True up resource requests, shift as appropriate  COMMUNICATIONS!!!  Reach further and harder if damage is significant  Leverage relationships  Have all the regional mutual assistance groups working to free up resources at the same time  Release plans for other utilities

24. Providing Assistance / Hurricane Irene

26. Mutual Assistance Isn’t Over When the Power Comes Back On  Develop a release strategy  Discussions with other impacted utilities to determine if they need resources we will be releasing  Discussions with contractors to determine if they have other customers that need assistance  Release crews and track them to ensure they arrive safely  COMMUNICATIONS!!!

27. Summary  One Day You Are The Bug, The Next Day You Are The Windshield  Remember the Golden Rule QUESTIONS??