Electric System Performance Review Trustees Briefing. April 2013

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1 Electric System Performance Review Trustees Briefing April 2013

2 Electric Reliability Indices All Metrics Continue to Perform Within Historical Range Reliability Index 2012 Trend to 5-Year Avg. LIPA MSA Metrics SAIFI (Months Between Interruptions) CAIDI (Avg Restoration Time Mins) SAIDI (Total Annual Power Outage Time Mins) MAIFI (Annual Momentary Trips) Storm CAIDI (Avg Restoration Time Mins) MCO (Cust With Greater than 3 interruptions) 17.7 Improving 74.7 Neutral 50.6 Neutral 3.9 Improving N/A 122 Neutral 36,055 Improving 2

3 Reliability Metrics vs. Weather Blue Sky AND Minor Storm* Major Storm Catastrophic Storm SAIFI (Frequency of Interruptions) CAIDI (Average Duration of Interruptions STORM CAIDI (Aver. Duration of Storm Interruptions) SAIDI (Aver. Annual Power Outage Duration) MAIFI (Aver. Number of Momentary Interrupt./Cust) MCO (Customers with > 3 interruptions/year) Included in annual Reliability statistics for all NYS utilities No customers out for more than 24 hours No operating divisions have customers affected more than 10% of customers served Per NYS PSC criteria excludes interruptions if more than 10% of the customers served in an operating division have outages or if outages are longer than 24 hours in duration >150,000 customers affected OR LIPA declared catastrophic event 3

4 SAIFI Index (Months Between Interruptions) MONTHS Offset Target Penalty Excludes Major Storms any divisions having 10% or more customers affected and/or customers out for more than 24 hours YEAR 4

5 CAIDI Index (Average Restoration Time) MINUTES Target Offset Penalty Lower is better Excludes Major Storms any divisions having 10% or more customers affected and/or customers out for more than 24 hours 2005 YEAR

6 SAIDI Index (Total Annual Power Outage Time) Penalty MINUTES Target Lower is better Offset Excludes Major Storms any divisions having 10% or more customers affected and/or customers out for more than 24 hours YEAR 6

7 Multiple Customer Outage (MCO) Customer with more than 3 Interruptions* 120,000 # of Customers with 3 or more interruptions 100,000 80,000 60,000 40,000 20,000 65,751 77,254 67,363 47,449 Offset 39,812 Penalty Target 46,527 36, * Non-Storm Related Interruptions Excludes Major Storms any divisions having 10% or more customers affected and/or customers out for more than 24 hours YEAR 7

8 Comparison of NYS Utilities Major Reliability Metrics as of December 2012 Utility SAIFI CAIDI SAIDI (RANK) (RANK) (RANK) LIPA RG & E O & R NAT GRID NYSEG CHG&E Excludes major and catastrophic storms for all Utilities 8

9 Causes of Customer Interruptions Blue Sky and Minor Storm Hurricane Sandy EQUIPMENT 32% TRANSMISSION & SUBSTATION 8% ACCIDENTS 14% ERRORS 0% NOT REPORT 24% INTENTIONALS 8% EQUIPMENT 18% OTHER 3% TRANSMISSION & SUBSTATION 6% SUBSTANDARD CONDITIONS 4% TREES 23% INTENTIONALS (Pre-arranged) 1% LIGHTNING 11% OVERLOADS UNKNOWN 3% 5% TREES 41% The distribution of outage causes remains consistent with performance over the last five years. Excludes major and catastrophic storms Based on reports from field personnel most of the Cause Not Reported interruptions were the result of tree or limb contacts with overhead lines 9

10 Hurricane Sandy and Nor Easter Impact Super Storm Sandy and the nor easter that followed nine days later resulted in more power outages to homes and businesses than any other storm in LIPA s history. Strong winds, rain and then snow toppled countless massive mature trees, downed poles and power lines, and damaged substantial numbers of homes, businesses and LIPA electrical facilities. Additionally, Sandy brought unprecedented flooding to the south shore of Long Island and the Rockaways, taking a number of lives and in its course, destroying many homes and businesses, and making many others unsafe to re-energize without proper inspection and repair. Storm surge and flooding exceeded expectations of NOAA, FEMA, and US Coast Guard. Approximately 1.2 million customer outages were recorded, more than twice the number experienced in Tropical Storm Irene. As a catastrophic storm Sandy and it s aftermath are not reported in the metrics. 10

11 Managing the Customer Experience Continue using new performance diagnostic tool (Long Island Geographic Hotspot Targeting System or LIGHTS ) which: Enables rapid identification of pockets of poor performance. Has already been used to communicate with municipal officials and customers. Continue targeted customer outreach to provide increased visibility to and communicate reliability enhancements at a localized level. Continued concerted effort to reduce exposure for intentional interruptions and proactive outreach to customers affected by these outages. Continued use of supplemental survey personnel during minor storm conditions to improve restoration capability and provide more reliable data to LIPA customers. Continue Multiple Customer Outage (MCO) Program to identify smaller areas for improvement for those customers who have experienced 4 or more interruptions. 11

12 Continue to Identify and Implement Pro-active Reliability Initiatives Circuit Improvement Program (CIP) has yielded a over a 45% reliability improvement for targeted circuits over the past five years. Vegetation management program includes pro-active criteria for circuit tree trimming, hot spot trimming to mitigate multiple interruption areas, and hazardous tree and limb removals to reduce tree contacts outside the clearance zone. Automatic Sectionalizing Unit (ASU) Program has averted approximately 5.6 million customer interruptions since the inception of the program in Improved prioritization of underground cable replacement by utilizing condition based testing for improved reliability and cost effectiveness. Targeted Area Reliability Programs continued to significantly improve reliability and customer satisfaction in problematic areas (i.e. Great Neck, Munsey Park). Increased focus on reducing customer interruptions during catastrophic storms through improved system resiliency. 12

13 Continue to Identify and Implement Pro-active Reliability Initiatives (cont.) Continue to investigate Transmission & Substation outages, create investigation teams and develop and implement programs. Infrared Scans of T&D Lines proactively identified system components which were overheating and were likely to fail. Based on the results of the pilot program, a non-visual (acoustic) inspection was implemented. The technology enables proactive detection of overhead hardware anomalies. Continue two pilot improvement programs started in 2012: Underground cable rejuvenation prolongs the useful life of primary cable (postponing replacement costs). Reducing local outage exposure (i.e. increased fuse saving relaying) improve customer satisfaction and reduce the annual minutes experienced by customers. Increase inspection of T&D poles and prioritized replacements based on inspection data. Elevate equipment in substations that were flooded in Sandy. 13

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