BWL Improvements 2013 Ice Storm Based on the CRT / MPSC Recommendations

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1 Based on the CRT / MPSC Recommendations

2 Dick Peffley, General Manager Initial Remarks Tonight s Agenda Trent Atkins, Executive Director of Emergency Management Planning, Training, and Community Resilience Dave Bolan, Executive Director of Operations Preparedness and response Heather Shawa-DeCook, Chief Financial and Technology Officer Technology improvements Steve Serkaian, Executive Director of Public Affairs Customer, media, community and crisis communications BG (ret.) Mike McDaniel, CRT Chair BWL and Community Preparedness BWL Improvements 2013 Ice Storm

3 If an ice storm hit the Lansing area today, the BWL has made a multitude of emergency preparedness, operational, technology and communication improvements that will help customers get power back faster.

4 TRENT ATKINS DIRECTOR OF EMERGENCY MANAGEMENT

5 CRT Planning Recommendations The BWL has worked jointly with local and county Emergency Management to identify critical/key facilities for restoration efforts including: assisted care facilities, elder care facilities, water and sewer plants, food warehouses, Capital City Airport and key industry. The BWL has trained Liaisons to work closely within the local or county Emergency Operation Centers. The BWL has developed an Energy Restoration Annex that integrates response responsibilities and Communications with local and county Emergency Operation Centers. A T&D Restoration and Command and Coordination Center Plan has been developed to integrate the coordination and response to a power outage. The BWL has developed a business continuity framework.

6 CRT Communications/Partnership Recommendations Ongoing engagement in Community Resiliency. Partnership with American Red Cross/ Do1Thing/ Faith Based Organizations. The BWL has created a Metro Lansing Pub/Private Partnership creating collaboration, planning and coordination to build a disaster resilient community. Additional exercises planned for spring The BWL has sponsored (2) two workshops/tabletop exercises in May and Sept of The BWL has fully integrated NIXLE into our Crisis Communications Plan notifying both customers and internal team members.

7 CRT Training/Exercising Recommendations All BWL Operations Employees have attended Basic ICS; Senior Management Advanced ICS. BWL personnel and Board Members have participated in a spring storm tabletop exercise with quarterly emergency operations training. The BWL Public Affairs personnel have attended ICS, Public Information and Emergency Operations Training.

8 Documentation The BWL has implemented an emergency management software called VEOCI. VEOCI has the capability to: activate team members; create a web based communications link to share real time data; develop and document an Incident Action Plan; manage resources; link to local and county emergency management ; and document all decision, communications, plans and actions.

9 DAVE BOLAN EXECUTIVE DIRECTOR OF OPERATIONS

10 Restoration Process Overview BWL Improvements 2013 Ice Storm After a storm event, the BWL relies on its Supervisory Control and Data Acquisition System (SCADA / EMS) and customer outage reports and Outage Management System (OMS) to identify outage areas. Based on the outage information the BWL dispatches Spotter/Assessor teams to find the source of the outage and downed-wired. Due to the large number of downed-wires (2,400), the spotter/assessment was the bottleneck of the restoration process. Advanced metering (Smart meters) will be an improvement. Crews are dispatched to remove downed wires and begin the restoration process starting with circuits that have critical customers (police, fire, hospitals, etc.) Crews then restore major three-phase primary circuits, then single phase primary, then secondary and finally the customer s service line. BWL s ability to restore service our customers depends on their preparation to ensure that their service mast is in good shape.

11 Significant Transmission and Distribution (T&D) System Improvements Restoration Process Improvements Increased the number Spotters. Increased the number of Mutual Aid and Contractor agreements. Storm/System Hardening Improvements Upgrading of the Vegetation Management program. Increased Distribution System Maintenance. Outage Prevention Technology - Ability to reduce outage durations. Update on Breakaway service drops /Ice-phobic wire. Replacing/Upgrading of the primary and secondary systems.

12 Spotters perform four functions to reduce the exposure to the public 1. Identify the location of the outage and any wires down. 2. Assess the extent of damage. 3. Cordon off the impacted area. BWL Improvements 2013 Ice Storm 4. Ensure that customers do not enter the impacted area. Note: Tasks 1 through 3 are performed by an A and B spotter crew or with a two person A spotter crew. The last task (4) is performed by a single C spotter.

13 An A Spotter identifies the location and the extent of the damage. They can be a journey worker electrician or an engineer with field experience those who are trained to work around electrical equipment. The B Spotter is teamed with a A Spotter. The B Spotter acts as a safety watcher for the A Spotter. If the A Spotter becomes impaired the B Spotter can radio for emergency support. This role is usually performed by staff who have field experience. The C Spotter performs the role of a public safety observer. These spotters ensure that the public does not enter a contained site. These individuals are not required to have field experience. Note: Spotters receive annual training.

14 Spotters / Assessors Ice Storm Today Contract End Date A - Spotters (BWL Employees) N/A B Spotters (BWL Employees) C Spotters (BWL Employees) N/A N/A Contractor Assessors (Osmose) Can provide either A, B, or C spotters N/A 1 Up to 20 A/B Teams 4/2017 Note: A Spotter team consists of either an A and B Spotter or two A spotters. With BWL employees, the number of A/B or A/A spotter teams increased to 36 from 15. Spotter duty is mandatory for all non essential operational employees.

15 BWL Electric Transmission and Distribution Crews BWL Improvements 2013 Ice Storm The BWL has 42 transmission and distribution employees assigned to various crews. This has not been increased since the Ice Storm. Mutual Aid (MA) and Contractor Crews assist BWL in restoring BWL system, if needed. The Overhead and ESW crews can either restore circuits or manage the mutual aid or contractor crews (i.e. bird-dog). Each bird-dog can manage two Mutual Aid or Contractor 3 -person crews. Per the BWL Safety manual, a 3-person crew is required for overhead primary voltage work. Traffic and Underground personnel cannot do overhead work but can operate in a bird-dog capacity. Crews During the Ice Storm Today BWL 3 Person Overhead Crews 7 7 Total BWL T&D Crew Employees Max Number of 3-Person Crews 15 (BWL, MA, & Contractor Crews) 84 (All MA or Contractor Crews)

16 Mutual Aid Crews BWL has Mutual Aid agreements with Michigan Municipal Electric Association (MMEA) which has 14 Michigan utilities that have crews able to respond and has access to the American Public Power Association (APPA) network that has over 2,000 utilities participating nationwide. The Michigan participants will not release their crews for Mutual Aid support until a threat has past and no damage to their system. For pre-storm staging, The BWL relies on contractors and requests to the APPA network. Utility Mutual Aid Agreements (Line Crews) Before Ice Storm Today Contract End Date Michigan Municipal Electric Association Members = 14 cities with enough crews Yes Yes 12/31/2017 American Public Power Association / Members > 2,000 municipal utilities, All FEMA utilities (IOUs, Coops, Munis) No Yes 12/31/2017 Consumers Energy Yes Yes 12/31/2017 DTE No Pending

17 Contractor 10 Contractors for Overhead Line Crews Before Ice Storm Today On-call Service Contract End Date KENT POWER INC. No Yes Yes 12 / 2017 HYDAKER-WHEATLAKE No Yes Yes 12 / 2017 ASPLUNDH RAILROAD DIVISION No Yes No 12 / 2017 MIDWEST POWERLINE INC. No Yes No 2 / 2017 CC POWER ELECTRICAL CONTRACTING No Yes No 2 / 2017 J. RANCK ELECTRIC No Yes Yes 3 / 2017 NEWKIRK ELECTRIC ASSOCIATES No Yes No 3 / 2017 Xtreme Powerline Construction No Yes No 3 / 2017 N.G. GILBERT No Yes No 3 / 2017 SPE UTILITY CONTRACTORS No Yes No 6 / 2017

18 Vegetation Management: Storming Hardening As a result of ice coated tree limbs, 2,400 BWL power lines were knocked down, causing wide spread outages. This is not unique to this storm or the BWL system. According to an Electric Power Research Institute (EPRI) and other reports, 70-80% of tree related outages were due to tree tear-down conditions. Downed energized power lines are a fire and a public safety hazard.

19 Vegetation Management: Five-year Trimming Cycle BWL s plan is a five-year cycle which encompasses all or part of 343 quarter sections (QSs). (July 2014 through June 2019) Note, not all QSs are equal in tree density. Since July 2014, the BWL has trimmed 51 QSs that have a high level of tree density. In general, QSs are prioritized based on the high level of tree outages that occurred during the 2013 ice storm, tree density, and the duration since last trim. A recent review of our tree trimming plan, standards, and crew levels, by an independent consultant recommended that the BWL s tree trimming budget will need to be $3.7 million/year to complete a five-year cycle. BWL s FY16 tree trimming budget is $3.6M.

20 Vegetation Management: Trimming Standards and Trimming Practices BWL s Tree Trimming Standards are designed to remove threats to overhead circuits from severe weather (i.e. ice, high wind). To the best of its ability the BWL trims to maintain the aesthetics and health of the tree. The BWL standards conform to the American National Standards Institute (ANSI) A300 part 1 standards for Utility Tree Pruning. For Primary (above 600v) and Secondary circuits. o o o BWL Improvements 2013 Ice Storm The cutting zone is 10 to 15 feet around the conductors. All overhanging branches are removed. Dead trees that threaten these circuits are removed. For Service wires the cutting zone is 2 feet around the conductor. Outside this zone overhanging branches are not removed or trimmed. Trimming is done near communication lines if vegetation threatens the integrity of the pole.

21 Below is an example of selecting the right tree for the right location. BWL standards are similar to what is shown in the figure below as the Low Zone. BWL s website has recommendations for species of trees to be grown in the Low Zone. Best Management Practices Utility Trimming of Trees, International Society of Arboriculture,

22 Vegetation Management: Customer Cooperation and BWL Partnerships Since July 2014 the BWL has trimmed in an area that directly impacts over 32,000 customers. Presently we have 98 customers who have refused to allow the BWL on to their property for tree trimming. Certain areas have proven more difficult to trim than others. Not adhering to the five year cycle will put the public and the electrical distribution system at risk for emergency outages in the event of inclement weather, especially in areas where there is dense vegetation that is not trimmed. BWL has been proactive in explaining the need to trim vegetation and in demonstrating how well planned landscaping can beatify a property while not interfering with electrical distribution systems. BWL has two demonstration sites in East Lansing to show landscapes with the concept of a Right Tree in the Right Place. BWL has a tree replacement program for customers that have lost a tree.

23 Before BWL Landscaping

24 After BWL Landscaping

25 Vegetation Management: Audit and Allocation of Work BWL has contracted with Davey Tree to audit the work of the tree trimming crews. Work that is not compliant to our standards is corrected by the contractor at their cost. Presently, Davey does no maintenance tree trimming work for the BWL. However, we do have the ability to use their crews to assist during a storm restoration. The audit inspection of the site includes before and after pictures along with a full audit record. Davey also reviews the contractor s trimming plans to ensure the work is completed as planned. The BWL staff reviews the invoices to ensure accuracy to plan. On a quarterly basis the BWL meets with each tree trimming contractor to discuss their performance record. Contractors that have not been compliant can expect less work in the future.

26 Resources Tree Trimming Crews Before Ice Storm Today (Maintenance work) Possible For Storm Restoration Contract End Date BWL Crews N/A Wright Tree Service Asplundh Alpine Tree Service 0 As needed Davey Tree 0 Not used Performs Audits The Energy Group, Inc Total Tree Trimming Crews

27 Storm Hardening Initiatives: 1. Explore the use of Break-away Services and Ice-phobic Wires. 2. Regular and condition-based maintenance and capital replacement program. 3. Use of Smart Grid Technology (Heather Shawa-DeCook will cover this portion in her presentation).

28 Storm Hardening Initiatives: Break-Away Services 1. During the 2013 ice storm many customers had trees fall on the line that connects the customer to the utility system. 2. From discussions with other utilities and vendors the BWL is exploring a break-away service device called Storm-Safe by Homac. 3. The device is attached to a utility pole and has connections for three customer service lines. 4. The device will separate at the pole rather than tear-off the customer s mast. 5. Kansas City Light and Power tested these devices but are not used today. 6. BWL is evaluating the effectiveness of this device and how it will fit within our construction standards, and for potential safety risks.

29 Storm-Safe by Homac Break-Away Services BWL Improvements 2013 Ice Storm

30 Storm Hardening Initiatives: Ice-phobic (Ice Resistant) Wires 1. Ice-phobic wires are coated with a polymer designed to resist the buildup of ice. 2. Research on various coatings for the wire have shown that the most efficient coating was a compacted powder, which reduced adhesion by 37% compared to uncoated aluminum. It was concluded by the research report that this performance is not sufficient to allow for natural ice-release through the effects of gravity and/or wind. Exposure to ultraviolet (UV) radiation degraded the coating. 3. BWL has done an extensive search of utilities and vendors about ice-phobic wires. We found no utilities that use this type of wire or a supplier that sells this product. 4. Today utility overhead wire manufactures are testing ice resistant coatings. 5. BWL will continue to monitor the development of this technology.

31 Transmission and Distribution System Hardening Mobilization (On-Call) Expenses* Direct Cost Storm Hardening Budget ($1,000) FY 14 Budget Before Ice Storm FY 14 Actual FY 15 Actual FY 16 Budget Line Worker Crews $0 $125 $101 $277 Tree Trimming Crews $0 $21 $59 $150 Storm Spotters $0 $0 $78 $186 Capital and Maintenance Expenses FY 14 Budget Before Ice Storm FY 14 Actual FY 15 Actual FY 16 Budget T&D Capital Expenditures $13,854 $15,358 $22,209 $28,058 *T&D Maintenance Expenses $4,394 $12,657 $11,073 $16,621 Tree Trimming Expenses $1,162 $1,565 $3,322 $3,600

32 Average Storm Hardening Costs by Mobilization Amounts Per Day Activation Level On-Call Cost Alert = $955 Mobilization 1 = $6,203 Mobilization 2 = $13,081 Mobilization 3 = $43,572 Note: Since Sept 2014, the BWL has activated 71 times at Activation Level 1 or higher.

33 HEATHER SHAWA-DECOOK CHIEF FINANCIAL OFFICER TECHNOLOGY RELATED IMPROVEMENTS

34 Technology System Improvements Outage Management System (OMS) Web-based Outage Center and smartphone app Communication systems BWL Improvements Future Technology Systems Advanced Metering Infrastructure (AMI) Distribution Automation (DA)

35 Web Outage Management System Line Crews

36 Outage Management System (OMS) Technical issues fixed Conductor cut functionality Multiple/redundant call processors Installed automated system monitoring and alarms Ensures the call processor(s) are working properly. Alarm triggers after 5 mins if no activity Stress testing and software updates Spring and Fall prior to major storm seasons System performance tuning

37 Web Outage Center and smartphone app Integrated with existing website (lbwl.com) The Outage Center is the central repository for customer outage information. Display current outage map (data from OMS) Customer login Report an outage Check status, including estimated time of restoration App available on both Apple and Android platforms

38 Communications System Improvements Increased Phone system capacity (internal by 6X) and resiliency: In a major event calls automatically can be forwarded to our third party call center to begin supporting incoming calls. Improved automated IVR phone prompts Texting service to report an outage and check individual status NIXLE mass-communication system VEOCI emergency operations system

39 Web Advanced Distribution Management System Line Crews

40 Smart Grid Initiative Advanced Metering Infrastructure (AMI) Near real time outage detection down to the specific service locations. Optimize resources and strategically deploy them for more efficient and quicker restoration of services. Distribution Automation (DA) Portions of the system can be restored without dispatching a crew (self-healing circuits).

41 Smart Grid - AMI Implementation Number of Installs FY 15 Actual Pilot FY 16 Budget FY 17 Plan FY 18 Plan FY 19 Plan FY 20 Plan FY 21 Plan Total Electric Meters Installed 140 2,800 17,139 20,000 20,100 20,100 17,000 97,279 Water Meters Installed 0 1,700 8,934 12,000 12,650 12,650 10,000 57,933 Total Number Installed 140 4,500 26,073 32,000 32,750 32,750 27, ,212 ($ Million) AMI Budget $0.25 $2.5 $6.4 $5.8 $5.8 $5.8 $4.5 $31.0 Est Annual Cap Savings $1.1 $1.2 $1.7 $2.2 $2.8 $3.4 ($12.4) Est Annual O&M Savings $0.06 $0.39 $0.81 $1.3 $1.7 ($4.26)

42 Number of Installs FY 15 Actual Pilot BWL Improvements 2013 Ice Storm Smart Grid Distribution Automation (DA) Implementation FY 16 Budget FY 17 Plan FY 18 Plan FY 19 Plan FY 20 Plan FY 21 Plan Circuits with Self Healing Technology Total ($ Million) DA Budget $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 $12.0 Est Annual Cap Savings $[0.38] $[0.62] $[0.90] $[1.1] $[1.4] $[1.7] $[6.1] Est Annual O&M Savings $[0.02] $[0. 03] $[0.06] $[0.11]

43 STEPHEN SERKAIAN EXECUTIVE DIRECTOR OF PUBLIC AFFAIRS

44 CRISIS COMMUNICATIONS PLAN Link to Crisis Communication Plan Adopts best practices from across utility industry. Gives direction on communicating with key constituency groups, including media, governmental officials, neighborhood leaders, the faith community and many others. Includes 75 templates to assist staff with a variety of messages for the media and customers in anticipation of weather events, outages, water main breaks, accidents and scam alerts.

45 SOCIAL MEDIA Robust social media presence with its newly created position of Social Media Specialist. Posting daily social media messages and responding to customer social media inquiries. Proactive and responsive to customers on social media before storms, and during storms and outages around the clock.

46 OUTAGE CENTER Includes storm preparation tips, FAQ s, informational videos. 4 ways outages can be reported: 1. Outage line: BWL Mobile App, available on both Android and Apple based products 3. Outage Center 4. Text OUT to ( TXTBWL ) to report outage and STAT to request a status update

47 OUTAGE MAP The Outage Center has the Outage Map, that provides outage areas and restoration updates.

48 COMMUNICATING OUTAGE RESTORATION

49 If an ice storm hit the Lansing area today, the BWL has made a multitude of emergency preparedness, operational, technology and communication improvements that will help customers get power back faster.

50 Questions?????

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