BEFORE THE LONG ISLAND POWER AUTHORITY ------------------------------------------------------------ IN THE MATTER of a Three-Year Rate Plan ------------------------------------------------------------ Case - DIRECT PRE-FILED TESTIMONY OF Date: January 0, 0
TABLE OF CONTENTS I. WITNESS QUALIFICATIONS AND DESCRIPTION OF TESTIMONY II. FACTORS AFFECTING STORM RESPONSE III. MEASURING STORM RESPONSES IV. KEY DRIVERS OF THE ERP 0 V. EMPLOYEES ROLES IN EMERGENCY RESPONSE VI. NEW PROGRAMS TO ENHANCE THE EMERGENCY RESPONSE VII. ENHANCED COMMUNICATIONS
I. WITNESS QUALIFICATIONS AND DESCRIPTION OF TESTIMONY Q. Please state the names of the members of this Storm Response Panel (the Panel ). A. We are Louis M. DeBrino and Robert J. Massaro, Jr. Q. Mr. DeBrino, please state your employer and business address. A. I am employed by PSEG Long Island ( PSEG LI, or Company ) and my business address is E. Old Country Road, Hicksville, NY 0. Q. In what capacity are you employed by the Company? A. I am Manager, Emergency Preparedness of PSEG LI, a position I have held since 0 January 0. In this position, I oversee the development, maintenance and 0 execution of PSEG LI s emergency preparedness which provides for a coordinated response during major storms and other system emergencies. I am charged with maintaining a constant readiness of our company-wide Emergency Response Organization ( ERO ), including assigning and training personnel for restoration assignments; creating and conducting storm preparedness drills and exercises; interfacing with New York State Department of Public Service ( DPS ) personnel on emergency preparedness regulatory matters; coordinating and communicating emergency response planning activities with local and state government officials, emergency operations centers (Nassau County, Suffolk County, New York City and New York State), first responders and other emergency response organizations; representing PSEG LI within the North Atlantic Mutual Assistance Group ( NAMAG ); participating in calls related to the request and provision of mutual assistance resources; developing storm reports and conducting After Action - -
0 0 Reviews /critiques for major events; and directing delivery of high level technical expertise and functional support for the Outage Management System ( OMS ) and core applications across Electric Operations. Q. Please state your professional experience and educational qualifications. A. From August 0 to December 0, I served as Executive Advisor to the President, Long Island Power Authority ( LIPA ) Jurisdiction at National Grid, where, among other tasks, I provided input and consultation to key organizational business strategies and decisions, worked with the Long Island Transmission & Distribution leadership team to execute and deliver on annual business plan objectives and performance metrics and coordinated/led various special projects and represented National Grid on various task forces and at other meetings. From April 00 to July 0, I was Director, Strategic Initiatives at National Grid where I actively supported LIPA s Request for Proposal ( RFP ) process for the new Operations Services Agreement to replace the Management Services Agreement, providing required input, leadership, and guidance from RFP response through award phase. I layed a lead role in developing employee communications regarding the RFP process, providing ongoing visibility of RFP efforts and ensuring timely employee engagement. I also assumed a lead role in preparing post-storm communications including Tropical Storm Irene After-Action Review, Report to the Public Service Commission, LIPA Board of Trustee presentations, Senate testimony and responses to numerous data and information requests from elected officials, towns, and other municipalities. Prior to that time, I held positions of increasing responsibility at - -
0 0 National Grid and its predecessor companies KeySpan and Long Island Lighting Company ( LILCO ) in both the Operations and Customer Service organizations. I began my career at Grumman Corporation, Bethpage, New York in as an Engineer, Electronic Counter Measures. I hold a Bachelor of Science, Electrical Engineering () and a Master of Business Administration with a concentration in Marketing & Finance (0) from Rensselaer Polytechnic Institute, and a National Incident Management System ( NIMS ), ICS-00 & ICS-00 Certification from the Federal Emergency Management Agency ( FEMA ) (September 0). Q. Mr. Massaro, please state your employer and business address. A. I am employed by PSEG LI and my business address is Park Drive, Melville, NY. Q. In what capacity are you employed by the Company? A. Since January 0, I have been employed as Project Manager in the Customer Service Group. My responsibilities include implementing and developing projects associated with Emergency Response Preparedness and Communications. In this position, I have researched, developed, and tested to create an Emergency Response Escalation Tracker. I am also responsible for organizing, preparing, presenting, and training PSEG LI employees and municipalities on the Emergency Response Escalation Tracker. In addition to project management responsibilities, I manage the On Bill Recovery Loan program, assisting with billing inquiries and requests from the - -
0 0 New York State Energy Research and Development Authority along with weekly, monthly, and quarterly reporting. Q. Please state your professional and educational experience. A. From November 0 to December 0, I was a Program Manager for National Grid where I was responsible for implementing and developing the trade ally and business market program for LIPA. From January 00 to November 0 I was a Program Manager responsible for implementing and developing energy efficiency programs for LIPA in the LIPA service territory for residential new construction and multifamily buildings. In addition to program management responsibilities, I was responsible for developing financial documents, compiling information regarding financials and assisting in implementing programs to achieve and surpass various goals of the organization. I started work for National Grid as a Project Manager in April 00 working on energy efficiency projects. Prior to that time I held various positions with other companies upon graduation from college. I hold degrees in Marketing from Providence College (00) and a Master of Business Administration from Dowling College (0). Q. What is the overall purpose of the Panel s testimony in this proceeding? A. All Long Islanders are interested in how we respond to large scale storms. That awareness and sensitivity to the need for a robust response to storms has been incorporated into our mission statement, which expresses our commitment: [t]o build an industry leading electric company dedicated to providing our Long Island and Rockaways customers with exceptional customer service, best-in-class reliability - -
0 0 and storm response, as well as a strong level of involvement in the communities in which we live and work (emphasis supplied). In fact, Enhancing the Storm Response Process is one of the four overall Strategic Objectives of PSEG LI. The purpose of this Panel s testimony is to outline and explain the plans and protocols that have been put in place to respond to the storms that affect Long Island, as well as our ability to stand ready to respond to other catastrophes. Additionally, we will share information on some of the enhancements that have been adopted as a means of improving the overall customer experience during storm response events. Because our Emergency Response Plan ( Plan, or ERP ) is required by regulatory mandates, and our Plan is part of a separate process before the DPS, this testimony is being provided only for informational purposes. Nevertheless, because this information is of concern to LIPA, our customers and other stakeholders, we believe it is important in this case to provide the Plan and describe its major elements. We want LIPA, our regulators, customers, elected officials, first responder partners and other key stakeholders to know that our Plan not only meets those regulatory mandates but that it is a living document that is being constantly revised and improved to go beyond those regulatory requirements. We will demonstrate that PSEG LI is focused on effective emergency management principles that not only enhance our ability to provide best in class reliability and storm response but enable us to do so in a safe and efficient manner, while providing timely and accurate information to our customers and stakeholders. Additionally, we will show that the Plan involves virtually every member of our organization, where in the event of an - -
impending storm or other disaster, each employee knows his or her designated storm role and assignment whether it involves actual restoration work, coordinating with responders or providing officials and customers with accurate, up-to-the-minute information. Finally, we will demonstrate that, through regular drills and exercises and after action reports, the Plan is constantly refined and improved to offer the best service we can provide to our customers. Q. Is the Panel sponsoring any exhibits in support of its testimony? A. Yes, we are providing the ERP as an Exhibit (SRP-). The Plan is described in our testimony. We note further that LIPA reviewed and provided input for that Plan. 0 II. FACTORS AFFECTING STORM RESPONSE 0 Q. In your earlier description of your testimony you mentioned the Company s Mission Statement and objectives that focus on enhancing storm response. A. Yes, we did. A first in class storm response program is one of our four core objectives along with safety, reliability, and customer satisfaction. Q. Are there other indications of the emphasis that PSEG LI places on storm response? A. Yes there are. For example the Amended and Restated Operations Services Agreement Between Long Island Lighting Company d/b/a LIPA and PSEG Long Island LLC, dated as of December, 0 ( OSA ), contains metrics that PSEG LI must satisfy as part of its contractual commitments. Among the metrics that track how PSEG LI performs in responding to storms are () Storm CAIDI, which measures our performance during LIPA storm events as defined in the OSA, and () - -
0 0 a default metric for failure to achieve 0 points on the DPS Scorecard for large scale events. Further, as another indication of the importance and attention we assign to storm response, the Emergency Preparedness organization now directly reports to Mr. John O Connell, the Vice President of Transmission & Distribution, emphasizing the importance placed on this function, which in the past had been embedded further down in Operations. We will also describe in more detail, how additional resources have been added to the existing group in order to further strengthen our storm response efforts consistent with our goal to incorporate the best practices and lessons learned from Long Island, Public Service Electric and Gas Company ( PSE&G ) in New Jersey, and the electric industry generally. Q. Is PSEG LI subject to any regulatory or other requirements governing its response to storms? A. Yes, there are several requirements. First, under the Public Service Law ( PSL ), the DPS is required to annually review our ERP for consistency with the Public Service Law and make recommendations to LIPA regarding its completeness in addition to our performance in restoring service during an emergency event. The PSL also requires electric corporations subject to the jurisdiction of the Public Service Commission ( Commission ) to make a filing, on or before December th of every year, of an emergency response plan for review and approval. Although LIPA is not subject to the Commission s review and approval, it is required under Section -b to make such a filing for DPS s review and recommendations to the LIPA Board. - -
0 Q. Did PSEG LI file its Plan with the DPS? A. Yes, we did. The initial Plan was filed with the DPS in February 0, with a revised filing provided in June 0. Q. Is that PSEG LI s most recent filing? A. No. The DPS asked PSEG LI to make a filing as of December th to bring us into line with the timing for the filings made by the large, investor-owned utilities in New York which were required to make their filings on that date. PSEG LI agreed to make a new filing and that Plan is presented in Exhibit (SRP-). The consideration of that Plan by DPS and any recommendations it might make to the LIPA Board are being considered separate and apart from this Rate Plan filing. Q. Are there other regulatory requirements in addition to PSL Section () that PSEG LI has taken into consideration in developing its Plan? A. Yes. The Commission has promulgated regulations at NYCRR Part 0 that also address and amplify the requirements in Section of the PSL and PSEG LI s Plan takes those regulations into consideration. III. MEASURING STORM RESPONSES 0 Q. Is there anything else that governs PSEG LI s planning for, and response to, storms? A. Yes there is. The OSA provides a specific metric covering storm performance which is tied to the NYS Public Service Commission Storm Performance Scorecard. Although the Metrics Panel s testimony extensively discusses the OSA metrics, we will briefly discuss this provision. OSA Section. and Appendix of the OSA - -
0 0 provide a metric to measure PSEG LI s performance in storms. The metric provides, in relevant part, that: The Service Provider will be deemed to have failed the Major Storm Performance Metric under Section.(C) of the Agreement if, commencing in the third Contract Year of the Term, the Service Provider, in the then-current Contract Year and any one of the preceding two () Contract Years, fails to achieve at least 0 points out of a maximum of 000 points as calculated pursuant to the modified version, as agreed upon by LIPA and the Service Provider in the letter agreement dated as of the date of the Agreement, of the NYPSC Emergency Performance Measures issued on April, 0 in CASE -E-00 Proceeding on Motion of the Commission to Consider Utility Emergency Performance Metrics. Q. From where is the 000 point system derived? A. The explanation of the point system can be found in the Commission s Order Approving The Scorecard For Use by The Commission as a Guidance Document to Assess Electric Utility Response to Significant Outages which was issued in Case -E-00 on December, 0. The 000 points that comprise the scorecard are divided into three categories:. Preparation 0 points. Operational Response 0 points. Communication 00 points. Maximum Available Points 000 The full scorecard including the categories and descriptions and definitions were attached to the Commission s order in that case. - -
VI. KEY DRIVERS OF THE ERP 0 0 Q. You mentioned that PSEG LI filed a new ERP. What are some of the key drivers for changes made to the new Plan? A. We filed a new plan because our ERP is constantly being reviewed and revised in order to meet the following: evolving customer expectations regulatory requirements alignment and coordination of activities with municipalities and governmental agencies advances in technology severity of recent storm events Overall, the focus of such efforts is to improve the customer experience during storms and improve overall customer satisfaction with the service provided by PSEG LI. Q. How has PSEG LI s Plan evolved to meet the factors you just described? A. Our approach to enhancing the ERP involves continuous improvement that results from several processes. First we engage on a regular basis in Lessons Learned/After Action Reviews. These reviews permit us to ascertain what worked well, what did not go so well and what opportunities exist to improve. Second, we are in communication with PSE&G, and work to share the best practices learned between Long Island and New Jersey. Third, working through groups and study, we keep up to date on industry best practices, especially to see if a practice followed at one utility has relevance to our situation. Fourth, we play an active role in industry organizations such as the Edison Electric Institute ( EEI ) and NAMAG. In fact, in many cases, PSEG LI employees play leadership roles on various industry - 0 -
committees that help to shape and drive discussion around emergency response efforts. Q. Although you have submitted the entire Plan as an exhibit, would you please briefly describe the major aspects of PSEG LI s Plan? A. Yes. In sum, the Plan represents a joint collaboration among all elements of the Company, including the T&D, Business Services and Customer Services Departments, to ensure that we are working together to restore the system to full operation as quickly and safely as possible while providing accurate and timely communications to our customers and to state and local officials, while coordinating 0 responses to the event. Together these departments provide for the operations, 0 communications and logistics aspects necessary for a comprehensive and well executed storm restoration effort. Key elements include: () conducting effective business and operational risk assessments; () developing appropriate prevention and/or mitigation strategies; () developing and implementing comprehensive preparedness programs, processes and procedures; () making appropriate resources available for the emergency response; () communicating timely, accurate and relevant information to customers and stakeholders; () responding and recovering from events quickly; and, () assessing performance and continuously improving. An overarching element of the Plan is preparing all of our employees and resources to respond appropriately. This involves taking action to ensure the readiness of our personnel and making certain that all required support is available. - -
0 0 V. EMPLOYEES ROLES IN EMERGENCY RESPONSE Q. Please describe how you prepare your employees and resources to respond. A. A critical element of the ERP is making sure that all of our employees know where they need to be and that they know their assigned role. In fact, all of our employees are assigned a storm role upon hiring. Our focus is on executing a robust and comprehensive training, drill and exercise plan that prepares our employees for their storm roles. We conduct a combination of field, classroom and on-line sessions to ensure proper training is provided on a timely basis. One such example is our Annual Hurricane Tabletop Exercise which not only exercises our employees but includes participation of many key external stakeholder groups (e.g., DPS, OEMs, cable, telecommunications and gas providers, first responders). Q. Are employees provided training with respect to these tasks? A. Yes, they are. Each year a comprehensive training plan is developed to guide the delivery of the appropriate training to ensure the readiness of employees to effectively perform their assigned storm roles. Q. Do you take steps to ensure that resources outside of PSEG LI can be drawn upon? A. Yes, we do. On a regular basis, we discuss how to approach resource sharing with PSE&G to ensure that personnel can be transferred as needed between the two operations and that any required materials (e.g., transformers) can be moved to where the need is greatest. We also actively participate in activities with the NAMAG and meet periodically with other utilities, both regionally and nationwide, to ensure that our mutual aid protocols are up to date, workable and flexible. - -
VI. NEW PROGRAMS TO ENHANCE THE EMERGENCY RESPONSE 0 0 Q. You mentioned that PSEG LI s approach to storm response is constantly evolving. Can you provide some examples of the new programs or initiatives PSEG LI has introduced? A. Yes, for example the new Outage Management System ( OMS ), which provides for enhanced damage assessment and data collection, is one such change. The OMS, together with other new processes, has improved storm response and outage restoration. The new OMS has replaced an older system and brings new features that enhance the restoration process. It uses technology to enable access to more real-time information on outages and work completed, and it provides for more timely status information for customers and increased crew efficiencies due to effective dispatch tools, including outage maps and job closure information. Q. Are there other changes being made? A. Yes, we are currently engaged in a pilot program to assess the use of tablet technology to collect data associated with damage assessment. This entails a transition from data collection forms to electronic data capture utilizing GIS and GPS coordinate technology. Ideally, this will provide more timely collection, reporting and communication of information to key stakeholder groups. In the future our efforts will examine expansion of tablets and/or use of smartphones and direct feed of data to OMS. Additionally, we plan to execute on opportunities to work with local municipalities and other utility service providers (i.e., teleco/cable providers) to openly share information across the GIS platform to enhance situational awareness and improve restoration response. The completion of the OMS in August 0 was a - -
prerequisite to any expanded use of this data collection and presentment methodology. Q. Are there any other new initiatives being pursued? A. Yes. We introduced a formalized Flood Protocol in 0 and introduced an enhanced Municipal/Roadway Clearance Assistance process to further enhance our responses during storms. VII. ENHANCED COMMUNICATIONS 0 0 Q. Has the Customer Services organization also instituted new practices? A. Yes, they have initiated a new, enhanced Customer Services Communications Organization Storm Restoration Plan ( Communications Plan ). Q. Please briefly describe that Communications Plan. A. PSEG LI s enhanced storm Communications Plan was developed to meet the expectations of our customers and stakeholders during storm restoration efforts and to support the DPS s Storm Scorecard targets and achieve high scores on utility performance with respect to our ability to receive and disseminate information related to the impact of storm/outage and restoration activities. The ERP includes a comprehensive communications process with a commitment to improving access to timely and accurate information, using expanded tools to meet customer communication preferences. Q. What are the major elements of the Communications Plan. A. The OSA gives PSEG LI full responsibility for communicating important information before, during and after storms to public, media, and government officials. This was - -
0 0 not the case under the old MSA. The OSA emphasizes the importance of communication with our stakeholders which PSEG LI is addressing with the Communications Plan that incorporates the following elements: press releases and briefings website with storm center YouTube storm preparation videos municipal conference calls assignment of municipal liaisons and use of an escalation tracker community outreach centers social media team e-mail blasts contact center with high volume call application large customer support PSEG LI s Communications Plan is intended to ensure that our customers and key stakeholders receive the storm preparation and restoration information necessary to coordinate local emergency response and permit us and our customers to recover from an emergency safely, quickly and with minimal disruption. During an extended power outage, it is important that consistent and useful information be provided as widely as possible to overcome any local communication limitations related to the emergency (cellular or internet outages, for example). Our new protocols ensure that accurate and timely reports will be shared across a broad range of platforms to reach customers and the general public, human service agencies, the media, the DPS, the State Emergency Management Office and other state agencies, county and local - -
0 0 governments, emergency response services, law enforcement agencies, and other public service or public safety authorities. Q. Has Customer Services implemented any other new initiatives? A. Yes one of the new elements of our emergency response is Scheduling and Interactive Voice Response ( IVR ) Messaging. The Scheduling and IVR Messaging Team is responsible for assigning staff schedules to cover expected inbound calls. At times of high caller demand due to storms, the High Volume Call Application ( HVCA ) Messaging will provide a recorded message providing callers with outage information that is updated every two hours during normal business hours and every six hours outside normal business hours and is conveyed via IVR and other systems. The message will contain, at a minimum: the geographic area(s) affected; the estimated number of customers affected; and the estimated time of restoration per operational guidelines. Q. Have other enhancements been made to the Company s storm response efforts? A. Yes, we also have an Emergency Response Escalation Tracker ( ERET ). This is an internal system that has been developed to capture, record, track and respond to escalated issues and priorities reported by municipalities through the municipal liaisons, the municipal hotline, or the large customer account teams. In addition, a web portal has been established to allow designated municipal staff members to input issues directly into the ERET. The ERET was created as a tool to provide clear and timely information to government officials during PSEG LI s response to a major - -
0 storm or other electrical emergency. Information input to the tool will help PSEG LI prioritize work in an effective and expeditious manner. Q. Are the elements you ve mentioned all described with much greater particularity in the ERP? A. Yes, they are and we would direct anyone interested in a particular element of our ERP to direct their attention to that detailed document. The ERP shows our commitment to continuous improvement and refining our response to storms and other natural and man-made disasters. Q. Does this conclude the Panel s direct testimony at this time? A. Yes, it does. - -