CenterPoint Energy Executes Emergency Operating Plan. Hurricane Ike Restoration

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1 CenterPoint Energy Executes Emergency Operating Plan Hurricane Ike Restoration

2 Who is CenterPoint Energy Public company traded on the New York Stock Exchange (CNP) Headquartered in Houston, TX Operate 3 business segments in six states Electric transmission and distribution Natural gas distribution Interstate pipelines and natural gas gathering Serve over 5 million electric / gas customers Over 130 years of service to our communities Minneapolis Little Rock Houston Natural Gas Distribution Interstate Gas Pipelines Electric Transmission & Distribution

3 CNP Houston Metropolitan Area 5,000 square mile service area >2 million electric and >1 million gas meters Houston Electric Delivers 74.8 million megawatt hours yearly for about 60 certified competitive retailers Transmission and Distribution System 3,640 miles of transmission lines Approx 50,000 miles of distribution lines 229 substations

4 Advance Preparations Emergency Operating Plan (EOP) Drill each year to test our emergency response Coordinate our EOP with state and local officials Annually sponsor a Hurricane Workshop with the City of Houston and the National Weather Service to educate and prepare Houston area residents for hurricane season Actively participate in three regional Mutual Assistance Groups - allows us to provide/receive assistance to/from other utilities across the country following natural disasters (On average, CenterPoint Energy sends linemen 4-6 times annually to help other utilities restore power) Execute in advance, contracts for labor, fuel, lodging, materials, etc. in the event of a storm 3

5 Hurricane Gustav Forecasts 8/ to 9/1/2008 8/25/ :00 am CDT

6 Hurricane Gustav Forecasts 8/ to 9/1/2008 8/26/2008 4:00 am CDT

7 Hurricane Gustav Forecasts 8/ to 9/1/2008 8/27/2008 4:00 am CDT

8 Hurricane Gustav Forecasts 8/ to 9/1/2008 8/28/2008 4:00 am CDT

9 Hurricane Gustav Forecasts 8/25/2008 to 9/1/2008 8/29/2008 4:00 am CDT

10 Hurricane Gustav Forecasts 8/25/008 to 9/1/2008 8/30/2008 4:00 am CDT

11 Hurricane Gustav Forecasts 8/25/2008 to 9/1/2008 8/31/2008 4:00 am CDT

12 Hurricane Gustav Forecasts 8/25/2008 to 9/1/2008 9/1/2008 4:00 am CDT

13 Hurricane Ike Forecasts 9/4/2008 to 9/13/2008 9/4/2008 4:00 am CDT

14 Hurricane Ike Forecasts 9/4/2008 to 9/13/2008 9/5/2008 4:00 am CDT

15 Hurricane Ike Forecasts 9/4/2008 to 9/13/2008 9/6/2008 4:00 am CDT

16 Hurricane Ike Forecasts 9/4/2008 to 9/13/2008 9/7/2008 4:00 am CDT

17 Hurricane Ike Forecasts 9/4/2008 to 9/13/2008 9/8/2008 4:00 am CDT

18 Hurricane Ike Forecasts 9/4/2008 to 9/13/2008 9/9/2008 4:00 am CDT

19 Hurricane Ike Forecasts 9/4/2008 to 9/13/2008 9/10/2008 4:00 am CDT

20 Hurricane Ike Forecasts 9/4/2008 to 9/13/2008 9/11/2008 4:00 am CDT

21 Hurricane Ike Forecasts 9/4/2008 to 9/13/2008 9/12/2008 4:00am CDT

22 Hurricane Ike Forecasts 9/4/2008 to 9/13/2008 9/13/2008 4:00am CDT

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62 Hurricane Ike: A Category Tree Hurricane 61

63 Hurricane Ike: A Category Tree Hurricane 62

64 Restoration Execution: Milestones Pre-landfall advisory: Customers could be without power for 2-3 weeks Initial post-landfall damage assessment : 75 percent restored in 7 to 10 days Phase 1: Damage assessment and priority restoration; emphasis on transmission lines and substations Day 4: Transmission lines and majority of substation capabilities restored Phase 2: On day 5, armies of tree trimmers followed by linemen swept areas and made repairs that restored power to the greatest number of customers Day 7: Day 10: Achieved 50 percent restoration milestone - over 1 million customers restored Power restored to 1.5 million or 75 percent of customers 63

65 Restoration Execution: Milestones Day 14: After substantial completion of major line repairs, crews began to repair/replace transformers that delivered power to 10 customers or less, and individual service lines/drops to homes and businesses Day 16: Completed major restoration of our transmission, substation and distribution infrastructure - 2 million customers restored Day 18: EOP concluded; work continues in isolated cases for those customers who need customer-owned equipment repairs and replacing temporary fixes with long-term repairs 64

66 Restoration Execution: Comparing Substations Legend Tomball Substation Barker Substation 65

67 Restoration Execution: Comparing Substations Barker Substation area 8 circuits 118 miles of overhead circuit conductor Little exposure to trees Less than 20 poles down Majority of downed poles were street accessible Underground residential distribution Area served was compact 34,554 customers After 5 days, 77% of customers restored All major restoration work complete 9/21/2008, using 1 sweep army of 40 workers Tomball Substation area 8 circuits 329 miles of overhead circuit conductor Many tall pine trees outside easement Hundreds of poles and spans conductor down Circuit and laterals in rear easement difficult to restore service Area served large, spread out 17,159 customers After 5 days, 65% of customers restored All major restoration work complete 9/28/2008, using 10 sweep armies for a total of 450 workers 66

68 Restoration Execution: For the largest power outage in Texas history Logistics Resources to date: 8,500 wood distribution poles out of 1,017,157 5,300 transformers out of 418, ,543 meals 1.4 million gallons of fuel for 7,000 vehicles 2.1 million lbs. of ice 94,155 hotel room nights 4,000 cots - George R. Brown Convention Center More than 11,000 mutual assistance or contractor personnel from 35 states and Canada 12 CenterPoint Energy Service Centers and 10 staging sites Staging Sites: Brazoria County Fairgrounds Butler Stadium/Reliant Park Reed Road Deer Park Football Stadium Gulf Greyhound Racetrack Humble Civic Center Moody Gardens Ritchie Brothers Two locations Sam Houston Race Park Spring Branch staging site 67

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70 Hurricane Ike - Some Lessons Learned Our priority/key customer list (hospitals, public health & safety facilities, including water pumping stations, etc.) needs continuous updating Next time we will operate with more and smaller staging sites We had IT issues at staging sites which inhibited our ability to quickly report progress. We have extensively improved our remote site telecom and IT capability. We will increase Damage Assessment effort recognizing that this activity is critical to our ability to report restoration times We have developed processes and procedures and technology to enable us to accurately report restoration times on the internet by zipcode. 69

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72 Questions/Comments

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