SUMMERSUMMER RELIABILITYRELIABILITY

2009

1

J. Michael LovePresident & Chief Executive Officer

ENERGY ASSOCIATION OF PENNSYLVANIA

EXAMPLESEXAMPLESEAPA Member Companies’EAPA Member Companies

Ongoing Commitmentt M i t ito Maintain

Safe, Reliable Delivery of Electricity

2

Allegheny Power• Based on investments in base load, voltage, and

contingency projects, (d/b/a Allegheny Power) is confident g y p j , ( g y )that the distribution system is ready to meet projected 2009 summer demands.

• Substantial process improvements have been made over a 12 month period to the restoration process including:

I t t i f lt i di t d ti li i d i t– Investments in fault indicators and sectionalizing devices to improve restoration time

– Implementation of vehicle GPS system (AVAIL) to facilitate crew dispatchingdispatching

– Technology upgrades to improve the restoration process

3

Allegheny Power

• Promoting Smart Grid Collaboration - working with other l t i it id t h l d l t delectricity providers, technology vendors, regulators and

interested stakeholders to develop smart grid technology … to manage energy usage and reduce electricity demand in g gy g yan automated manner.

• Allegheny’s test facility features an intelligent network linking meters, thermostats, appliance control devices, home area networks, power line sensors, security devices and other , p , ysystems.

4

Duquesne Light Company

• Continuing its multi-year program to invest more than $500 million in its T&Dmore than $500 million in its T&D infrastructure.

• Continuing to proactively replace equipment in order to maintain service and reliability and to ensure that the region will be able to meet the expanded energy demands of the new century.

5

Duquesne Light Company• Continued replacement and maintenance on

automatic switching devicesautomatic switching devices. – Constructed a new 23 kV Substation.

– Continued Lateral Fusing on 23 kV Circuits.

– Replaced substation breakers and transformers. p

• Trained additional employees to support storm restoration activities.

6

Duquesne Light Company

• Vegetation Management Initiatives - an integral part of Duquesne’s successful reliability recordDuquesne s successful reliability record.

• Transmission Line Inspection by Helicopter -Flight crews use binoculars and cameras to conduct a comprehensive inspection as they travel the transmission rights-of-way, examining hardware, insulators, shield wiresrights of way, examining hardware, insulators, shield wires and the condition of the towers themselves … from a vantage point that offers a closer perspective than is

ibl f th dpossible from the ground.

7

FirstEnergy CompaniesFirstEnergy CompaniesAll 3 FE operation companies’ reliability plans for 2009

t ti t fare to continue to focus on:

• Equipment failure • Replacement of porcelain • Vegetation management• Lockout reviews• Circuit assessments

cutouts• Full assessment of worst

performing circuits and devices operating multiple times

• Mainline protection reviews and fusing of CSP transformers

operating multiple times• Animal proofing line and

substation facilities

8

FirstEnergy Companies – Met-Ed• Assembling a permanent Regional Reliability Strategy Team

• Circuit lockout reviews

• Any items identified as an ongoing concern to reliability are immediately addressed

• Unknowns and multiple lockouts are reviewed in additional detail focused on the identification of a root cause

R i f hi h CAIDI d• Reviews of high CAIDI days

• Immediate review of suspected protective device miscoordinationmiscoordination

• Reliability investigations for customers based on CEMI (customers experiencing multiple interruptions).

9

FirstEnergy Companies – Met-Ed

Statistics on reliability strategy projects:

• Accelerated and detailed assessments of 138 and 183 circuits respectively

• Adding adaptive relaying to 121 substationsg p y g

• Adding: 41 line reclosers, 9035 fuses, 185 reclosers, and 37 sectionalizers

• Removing 9797 danger trees from 155 circuits

• All priority one poles replaced

408 i li ti i t d• 408 main-line sections inspected.

10

FirstEnergy Companies – Penelec• The assemblage of a permanent Regional Reliability

Strategy TeamCi it l k t i ithi 24 h f th l k t• Circuit lockout reviews within 24 hours of the lockout

• Any items identified as an ongoing concern to reliability are immediately addressedare immediately addressed

• Unknowns and multiple lockouts are reviewed in additional detail focused on the identification of a root cause

• Monthly reviews of poor performing circuits as identified by a deterioration in the circuits SAIDIby a deterioration in the circuits SAIDI

• Immediate review of suspected protective device miscoordination

11

FirstEnergy Companies – Penelec

Statistics on reliability strategy projects:

• Trimming 137 worst "tree SAIFI" circuits totaling 860 miles

• Adding protective devices on 302 circuits: 145 circuits – full protection reviews and 157 circuits - main section reviews

• Adding and enabling adaptive relaying at 101 substations

• Accelerating backbone, three-phase circuit assessments including thermography

• Installing 6,563 cutouts, 277 single-phase reclosers and 42 three-phase reclosersphase reclosers

12

FirstEnergy Companies – Penn Power• The assemblage of a permanent Regional Reliability Strategy

Team• Circuit lockout reviews within 7 days of the lockoutCircuit lockout reviews within 7 days of the lockout• Any items identified as an ongoing concern to reliability are

immediately addressedU k d lti l l k t i d i dditi l d t il• Unknowns and multiple lockouts are reviewed in additional detail focused on the identification of a root cause

• Suspected miscoordination is investigated and addressed• Outages with large numbers of customer minutes are

investigated in detail with discussions on the investigation results• High CAIDI days are evaluated and discussed in monthly• High CAIDI days are evaluated and discussed in monthly

meetings• Immediate review of suspected protective device miscoordination

13

FirstEnergy Companies – Penn Power

Statistics on reliability strategy projects:

• Adding and replacing: Cutouts-353, Fuses-312, Reclosers-12, Animal Guards-603, Transformer Fuses-717, Transformer Lightning Arresters-798.

• Tree trimming on 358 miles of three-phase main-line feed sections.

• Adding and enabling adaptive relaying at 7 circuits

• 69kV foot patrols, aerial thermovision, and comprehensive aerial patrols on 174 miles

• Coordination reviews on 36 distribution circuits

• Two main-line inspections of all distribution circuits

14

FirstEnergy Companies

• Joined EPRI’s “Green Circuits” initiative - an 18-monthJoined EPRI s Green Circuits initiative an 18 month program to identify possible options for reducing electricity losses on T&D lines and explore technology i t i b th i f t t d i timprovements in both infrastructure and equipment.

• Initial goal of the program is to develop technologyInitial goal of the program is to develop technology applications to reduce electricity losses and increase the efficiency.

15

PPL Electric Utilities• Worst Performing Circuit – quarterly

reviews with improvement initiative trackingreviews with improvement initiative tracking

• Expanded operational reviews of di t ib ti i itdistribution circuits

• “Restore then Repair” – Crews restoreRestore then Repair Crews restore service to as many customers as possible when a service interruption occurs pBEFORE making permanent repairs to the damaged/interrupted area

16

PPL Electric Utilities

• Installation of telemetric switches - provide remote operation and status inquiry. This includes electronic Oil Circuit Reclosers (OCRs) with telemetric devices and motor operated switches on the distribution system.

17

PPL Electric Utilities

• Outages exceeding 50,000 minutes lost -i d il d t il d t t id tifreview and compile a detailed report to identify

opportunities for improvement to processes and/or equipmentand/or equipment

• Use of “ping” technology – via AdvancedUse of ping technology via Advanced Metering Infrastructure (AMI) to verify outage status

18

PECO Energy Company

• The City of Philadelphia had the second best electric reliability in the nation in 2008 among large metro areas.

19

PECO Energy Company

$400 million capital investment plan for i f t t i t d f ilitiinfrastructure improvements and new facilities this year.

• Completed 41 critical projects including several large substation projects, local capacity expansion projects, circuit patrols and upgrades and hundreds of taskscircuit patrols and upgrades, and hundreds of tasks across its six county service territory to ensure reliable service for its 1.6 million electric customers this summer.

20

PECO Energy Company

A part of the $400 million investment PECO energized the first of eight circuits from its new $25 millionthe first of eight circuits from its new $25 million Tunnel Substation to meet the growing needs of University City, Children’s Hospital and West Philadelphia expansion projects for improved system performance and reliability in 2009 and will relieve electric load on other substations in the area and ensureelectric load on other substations in the area and ensure reliability for the growing electric demand in University City, specifically from major expansion projects by the y p y j p p j yUniversity of Pennsylvania and Children’s Hospital.

21

PECO Energy Company

$2 Million Recloser Investment in Chester C t l t l t i it h d i th tCounty - pole-top electronic switch devices that can reduce customer exposure to extended power outages PECO has more than 1 200 reclosers onoutages. PECO has more than 1,200 reclosers on its electric distribution system across the Greater Philadelphia region. The company estimates p g p yreclosers prevent outages for more than 100,000 customers each year.

22

PECO Energy Company

• Emergency Preparedness exercises - tookEmergency Preparedness exercises took place on April 30, May 1 and May 27, the last of which was in cooperation with PJM.

• Exercises focused on T&D operational events and weather-related emergencies common forand weather related emergencies common for summer for process improvement and personnel development.

23

PECO Energy Company

• Vegetation Maintenance … spending $25 million this year for tree maintenance along T&D lines that will benefit 440 000for tree maintenance along T&D lines that will benefit 440,000 customers across the Greater Philadelphia region. With trees as the leading cause of power outages, tree clearance around aerial power lines is vital for maintaining strong electric service reliability.

S• In Spring 2009, began conducting aerial patrols to inspect transmission towers, nearly 1,000 miles of aerial high-voltage lines and other equipment in York, Chester, Delaware, q p , , ,Montgomery, Bucks and Philadelphia counties.

24

PECO Energy Company

• Online outage reporting can be completed• Online outage reporting – can be completed quickly from a computer or PDA. As of April, more than 215,000 registered for PECO’s online , gservice center.

• Web Service Link – allows consumers toWeb Service Link allows consumers to report or check on electric service interruption.

25

PECO Energy Company

PECO Energy Company Vice President Gas, Mark Alden, presented a photograph gy p y , , p p g pto PUC Commissioners Kim Pizzingrilli and Wayne Gardner, featuring the PA One Call message spelled out in lights across the Philadelphia skyline. The presentation took place during the PA One Call System’s Eastern Safety Day event on May 7th in Kimberton, PA.

26

y ,

Pike County Light & Power& f• I & M programs designed with the intention of improving

frequency of interruption and minimizing the resultant increases in restoration, including:, g• Distribution Tree Trimming scheduled to be completed on all Pike distribution circuits in

2009.

• Infrared Inspection Program - 2008 program included inspecting all 3-phase and single-• Infrared Inspection Program - 2008 program included inspecting all 3-phase and single-phase circuitry. 2009 program will include all 3-phase mainline circuitry.

• Power Quality - Annual maintenance program requires inspection of 11 capacitors and five regulators.

• Mid-point Recloser / Sectionalizing Program - Annual program requires inspection of one sectionalizer and one recloser.

• Substation I & M Program - requires completion of all monthly and annual I & M requirements. Also, two class #3 circuit breaker inspections and a class #3 transformer inspection and Doble Power Factor Test will be completed in 2009.

27

Pike County Light & Power• Phase Identification Program - completed during 2008, will be used to more accurately determine outage locations and l d b l iload balancing.

• Updated mapping - to include the phase off which transformers are tapped and to indicate phasing for singletransformers are tapped, and to indicate phasing for single-phase spurs.

• Distribution Automation - In 2009 radio communicationDistribution Automation In 2009, radio communication with SCADA control will be added to all DA equipment.

• Circuit Ownership Program – has been initiated, whereby p g , ycircuits are patrolled by ‘circuit owners’, who report items thatare in need of remediation.

28

Pike County Light & Power

• Improved Tree Trimming Cycle – replaced four-year vegetation management cycle was with a three year cyclevegetation management cycle was with a three-year cycle, beginning in 2006.

• Pole Inspection Program - pole inspection treatmentPole Inspection Program pole inspection, treatment, reinforcement and replacement program was designed in 2008, and will be implemented over the next 10 to 12

Pik ill f th i ti t t t dyears. Pike will perform the inspection, treatment and reinforcement work with non-company labor, and pole replacements with both Company and non-company labor.

29

Energy Association of PA“Safety Days”

EAPA’s Debra Kitner hosts an Association hibit t PA O C ll’ E t PAexhibit at PA One Call’s Eastern-PA

Safety Day Event … warning the public to use extreme caution when working near electric or gas lines.electric or gas lines.

This exhibit is the first of three displays to be sponsored by the Association at PA One Call’s annual Safety Day Events

PA One Call’s 2009 Safety Date events:

One Call s annual Safety Day Events around the state.

yMay 7 Eastern PA Safety Day Kimberton, PA

June 18 Central PA Safety Day Harrisburg, PA

Sept. 24 Western PA Safety Day Cranberry Township

For more information visit: www.pa1call.org

STAFFING LEVELSSTAFFING LEVELSToday … and tomorrow

31

“CURRENT STAFFING LEVELS”CURRENT STAFFING LEVELS

“… while there was a decrease in the number of lineman and substation staff after rate caps went into place, it a appears that the EDCs do at this time have sufficientappears that the EDCs do at this time have sufficient linemen and substation workers to provide adequate and reliable electric service.”

PA PUC’s Electric Distribution Company Service Outage Response and Restoration Practices Report

April 2009April 2009

32

“AGING WORKFORCE” A NATIONWIDE PROBLEMA NATIONWIDE PROBLEM

The Electric Power Industry Faces a Drain of Its Most Important Resource — People. More than 50% of the utility workforce is age 45 or older The U S Bureau ofutility workforce is age 45 or older. The U.S. Bureau of Labor statistics indicates that 30% or more of the existing utility workforce is or will be eligible for retirement in the next five years.

Source: Nora Swimm, PJM InterconnectionMay 1, 2009 T & D Magazine

33

“AGING WORKFORCE” A NATIONWIDE PROBLEMA NATIONWIDE PROBLEM

• All industries who utilize people in the trades are facing difficulties nationally.

• Duquesne Light and FirstEnergy continue to work with community colleges to train, and hire, new line workersline workers.

34

“AGING WORKFORCE” A NATIONWIDE PROBLEMA NATIONWIDE PROBLEM

• FirstEnergy continues to utilize Power System Instituteto address PA’s aging workforce creating affiliations withto address PA s aging workforce, creating affiliations with local community colleges to train the next generation of top-quality, well-educated and experienced line workers.

• Program provides students with opportunity to earn a two-year Accredited Associate of Applied Science Degree with a focus on Electric Utility Technology.y gy

• Qualified students will receive FREE tuition, including college fees, books and protective clothing.

• FE hired 45 graduates in 2008; 54 graduates in 2009 (lineman and substation workers).

35

“AGING WORKFORCE” A NATIONWIDE PROBLEMA NATIONWIDE PROBLEM

• Duquesne partnered with Community College• Duquesne partnered with Community College of Allegheny (CCAC) to create the Electrical Distribution Technology (EDT) Program, a gy ( ) g ,comprehensive two-year lineman associate’s degree curriculum.

• Graduates qualify for lineman jobs and help to meet workforce demands locally and throughoutmeet workforce demands locally and throughout the tri-state region.

36

EDUCATING &EDUCATING & MOTIVATINGMOTIVATING CONSUMERSCONSUMERS

An important component to reliability

37

EDUCATING & MOTIVATING CONSUMERSCONSUMERS

PPL Electric wants customers to understandPPL Electric wants customers to understand they have more control over their energy use than they might think and can lessenuse than they might think and can lessen the impact of higher prices by improving energy efficiencyenergy efficiency.

Robert M. Geneczko, Vice President-Customer Service, PPL Electric Utilities

April 2009

38

EDUCATING & MOTIVATING CONSUMERSCONSUMERS

• EAPA member companies are working to educate and motivate their customers on the importanceand motivate their customers on the importance and benefits of energy efficiency and conservation.

• Brochures school programs energy fairs flyersBrochures, school programs, energy fairs, flyers, bill inserts and messages, special web sites, on-line and physical energy audits, rebates, discounted appliances and energy efficient itemsdiscounted appliances and energy efficient items.

• Contribution to improved system reliability.

• Result = significant contribution towards a safe, reliable and sustainable electricity system.

39

EDUCATING & MOTIVATING CONSUMERSCONSUMERS

• Allegheny Power and the West Penn Power Sustainable Energy FundSustainable Energy Fund.

• Partner to educate consumers from Allegheny Power’s 23-county service region on the availability of sustainable energy technologies and choices … a vital link towards reliabilityvital link towards reliability.

• Through its grant making efforts and collaboration with Allegheny Power, the Fund has reached over one million consumers.

40

Educating the consumer about staying safe…

… and about saving energy.g gy

Joint radio spots by theJoint radio spots by the Commission and the

E A i i l dEnergy Association led to record LIHEAP applications in the last two weeks of the

program.program.

44

Thank youThank you.

45