1. APPA National Conference 2005

2. RP3 A Perspective from Two Systems June 21, 2005 – Anaheim, CA

3. APPA National Conference 2005 Paul A. Jakubczak, P.E., City of Rock Falls Electric Paul H. Allen, P.E., Nashville Electric Service

4. APPA National Conference 2005 City of Rock Falls Northwest Corner of Illinois Population 9,800 Utility Founded in 1895

5. APPA National Conference 2005 City of Rock Falls 5500 Electric Customers 13 Employees Peak Load 19.2 MW 7 – 1.8 MW Diesel Gensets 2 MW Hydro Facility on the Rock River 20 Miles of Fiber Optic Cable

6. APPA National Conference 2005 City of Rock Falls All Requirements customer of IMEA IMEA founded in 1984 with 24 original members IMEA currently has 29 members with peak load of 630 MW

7. APPA National Conference 2005 700 m 2 service territory - 332,800 Customers 12,200 GWh sold in FY04 55.8% of revenue from C&I customers Residential Rates – 6.545 ¢ / kWh; $6.01 customer charge Nashville Electric Service

8. APPA National Conference 2005 Nashville Electric Service 62 major substations 161 kV and 69kV networked transmission voltages 23.9kV, 13.9kV and 4 kV distribution voltages Secondary network system in downtown No generation - 22 feed points from TVA All-time summer peak 2,474 MW Aug 2000 52,223 new customers added 1994-2004 1,000 employees 5 member volunteer Board

9. APPA National Conference 2005 How To become a Reliable Public Power Provider

10. APPA National Conference 2005 The RP3 Program Rates Utilities on the following Four Criteria Reliability Safety Training System Improvement

11. RP3 Designations Diamond100 % Platinum90 % Gold80 %

12. APPA National Conference 2005 Reliability – 30 % – Statistical Tracking SAIDI, CAIDI, ASAI, MAIFI, SAIFI – Mutual Aid Participation – Disaster Plans

13. APPA National Conference 2005 Safety – 25% – Safety Manual – Safe Work Practices Safety Meetings Safety Incentives AED – Benchmarking APPA Safety Contest

14. APPA National Conference 2005 Training – 25% – Conference and Workshops – Continuing Education APPA In-House College, University, On-Line – National, Regional, State Committee Memberships

15. APPA National Conference 2005 System Improvement – 20% – Research and Development DEED, EPRI, IEEE – System Betterment

16. APPA National Conference 2005 Benefits of RP3 Nashville – Economic Development – Provides a level of assurance for Board members – Improved Customer Service – Employee Satisfaction – Management Focus Rock Falls – Economic Development – Budgetary Justification – Improved Customer Service – Strategic Planning

17. Reliability – Nashville Service Reliability Indices – Outage Management System provides data for all indices for monthly reports – We participate in APPA’s Reliability Survey Mutual Aid – We have signed APPA’s mutual aid agreement and state law covers emergency and disaster assistance Disaster Plan – We have current plans for several disaster scenarios and operational areas Our current operation supports the requirements of this section APPA National Conference 2005

18. Reliability – Rock Falls Service Reliability Indices – We use the APPA/DEED Software to generate our Reliability Indices Mutual Aid – We have recently revised and resubmitted our Mutual Aid agreement with our State Agency which in turn submitted them to APPA Disaster Plan – The City currently has an outdated disaster plan which we will be working on updating

19. Safety - Nashville Safety Manual – We have our own safety manual Safe Work Practices – Our Safety section supplied the information for the Safe Work Practices section – Compilation of the information took an hour or so Benchmarking – We participate in APPA’s Safety Contest Our current operation supports the requirements of this section APPA National Conference 2005

20. Safety – Rock Falls APPA National Conference 2005 Safety Manual – We use the latest version of the APPA safety manual Safe Work Practices – We conduct monthly safety meetings which are attended by all employees – Meetings are conducted through our state agency which certifies their trainers – We currently have four AEDs and will be purchasing two more this budget year Benchmarking – We have not entered the APPA safety contest the past couple of years, but we can supply the required OSHA 300 Form

21. Training - Nashville This section provided the most value for us All the training activities were listed together for the first time! The list provided an insight into some training needs for our training section It also identified some gaps in our current training activities The training section provided focus for NES’ participation in National, Regional and State associations APPA National Conference 2005

22. Training - Nashville APPA National Conference 2005 Conference & Workshops – Sections A & B – APPA Conference & Continuing Education was time consuming due to the way we track some of these items Continuing Education – We did not keep track of outside training – Other than in-house training we had no master list of other training

23. Training - Nashville APPA National Conference 2005 National, Regional, and State Committee Memberships – We also had no master list of committee memberships As a result of RP3, we have recommended changes in our training operation

24. Training – Rock Falls APPA National Conference 2005 Tracking – Currently by Memory – Working on Spreadsheet tracking method Value – We have found some Gaps in our Training – Working with IMUA to fill throughout state – Working with other City Departments

25. Training – Rock Falls APPA National Conference 2005 We attend APPA and State associations as our budget constraints allow Continuing Education – State Association – In-house expertise – Use of Vendors and Manufacturer Representatives – Utilize Free seminars as they pertain to our work

26. Training – Rock Falls APPA National Conference 2005 Membership – State Agency – Local Boards

27. System Improvement - Nashville Research and Development – We are a member of EPRI through TVA. Our Chief Operating Officer serves on EPRI’s Distribution Advisory Council which allocates some EPRI R&D funds – We are a member of TVPPA which has an active R&D committee APPA National Conference 2005

28. System Improvement - Nashville System Betterment Measures – We submitted a copy of our annual capital budget along with a summary of the significant projects or programs – this information was readily available – We listed a recent environmental award for alternative fuel vehicles – We listed two process improvement projects that are currently underway Our current operation supports the requirements of this section APPA National Conference 2005

29. System Improvement – Rock Falls Research and Development – Members of DEED – Willingness to get involved with Pilot Projects APPA Vendors APPA National Conference 2005

30. System Improvement – Rock Falls System Betterment – Not as extensive as Nashville – Current Budget Year Projects – Planning Short Term 1-3 years Long Term 3-7 years APPA National Conference 2005

31. Summary - Nashville The RP3 application process provided value to our organization The sections of RP3 are relevant and important to our operation The RP3 application process was fairly easy for our utility APPA National Conference 2005

32. Summary – Rock Falls The RP3 program provided valuable insight into our Utility – Training – Reliability The RP3 Program can be a good comparison tool for smaller utilities The RP3 program was a good to device to gather all pertinent data from multiple sources APPA National Conference 2005

33. How We’ll Use it - Nashville The RP3 designation is anticipated to add to our favorable economic development climate – we’ll include it in our economic development activities RP3 will provide our Board an independent assessment our accomplishments in the four disciplines APPA National Conference 2005

34. How We’ll Use it - Nashville RP3 will provide recognition for our employees – we’ll include it in our community outreach activities RP3 will assist in maintaining our focus on providing safe and reliable electric service APPA National Conference 2005

35. How We’ll Use it – Rock Falls The RP3 program will be a Great asset for Economic Development data requests The RP3 Program will help with Board justification for expenditures on Capital Improvement projects Employee Recognition The RP3 program will provide a tool for all Utilities to do a check up and comparison with industry standards APPA National Conference 2005

36. How We’ll Use it – Rock Falls The RP3 program provides an avenue for utilities to compare different aspects of their operations APPA National Conference 2005

37. Questions? APPA National Conference 2005