1. IAEC Reliability Webinar Presented by: Regi Goodale and Ethan Hohenadel December 11, 2009 1

2. How to Submit Your Question Step 2: Click on the Send button.Step 1: Type in your question here.

4. Agenda Reliability Planning Recording Interruptions Computing Indices Reliability Reporting 4

5. Federal and State Regulations Federal – RUS Bulletin 1730A-119 RUS Bulletin 1730A-119 State – IAC 199-20.18 Service reliability requirements for electric utilities IAC 199-20.18 – IAC 25.3 Inspection and maintenance plans IAC 25.3 5

6. Reliability Overview IAC 20.18 General Requirements “Reliable electric service is of high importance to the health, safety, and welfare of the citizens of Iowa.” 6

7. Reliability General Obligations a.Reasonable efforts to avoid and prevent interruptions of service b.Transmission and distribution facilities shall be designed, constructed, maintained, and electrically reinforced and supplemented as required to perform reliably c.Effective preventive maintenance program d.IUB will consider the condition of the physical property and the size, training, supervision, availability, equipment, and mobility of the maintenance forces 7

8. Reliability General Obligations e.Keep records of interruptions of service on its primary distribution system and shall make an analysis of the records f.Make reasonable efforts to reduce the risk of future interruptions g.If unable to comply with applicable provisions file waiver request 8

9. Reliability Planning 20.18(8)a. Reliability plan 20.18(8)a. – Required to be adopted by local board and filed with IUB. – Original plan was to be filed before July 1, 2003. – Must be updated by not less than annually. – For instructions on how to file electronically with the IUB click here.click here 9

10. Reliability Planning IAC 20.18(8)a. Plan must describe: – Current reliability programs, including: Tree trimming cycle, including descriptions and explanations of any changes to schedules and procedures reportable in accordance with 199 IAC 25.3(3)“c”; Animal contact reduction programs, if applicable; Lightning outage mitigation programs, if applicable; and Other programs the electric utility may identify as reliability- related. – Current ability to track and monitor interruptions. – How the electric utility plans to communicate its plan with customers/consumer owners. 10

11. Reliability Planning IAEC resources – IAEC model reliability plan IAEC model reliability plan – IAEC reliability web page IAEC reliability web page 11

12. Recording Interruptions Review RUS Bulletin 1730A-119RUS Bulletin 1730A-119 12

13. Definitions Interruption – A loss of electricity for any period longer than 5 minutes Outage – The state of a component when it is not available to perform its intended function as a result of an event directly associated with that component. 13

14. Interruption Exemptions 1.Interruptions intentionally initiated pursuant to the provisions of an interruptible service tariff or contract and affecting only those customers taking electric service under such tariff or contract; 2.Interruptions due to nonpayment of a bill; 3.Interruptions due to tampering with service equipment; 4.Interruptions due to denied access to service equipment located on the affected customer’s private property; 5.Interruptions due to hazardous conditions located on the affected customer’s private property; 14

15. Interruption Exemptions 6.Interruptions due to a request by the affected customer; 7.Interruptions due to a request by a law enforcement agency, fire department, other governmental agency responsible for public welfare, or any agency or authority responsible for bulk power system security; 8.Interruptions caused by the failure of a customer’s equipment; the operation of a customer’s equipment in a manner inconsistent with law, an approved tariff, rule, regulation, or an agreement between the customer and the electric utility; or the failure of a customer to take a required action that would have avoided the interruption, such as failing to notify the company of an increase in load when required to do so by a tariff or contract. 15

16. Interruption Category Definitions Power Supply – Any interruption originating from the transmission system, sub-transmission system, or the substation, regardless of ownership Planned – Any interruption scheduled by the distribution system to safely perform routine maintenance Major Event – An interruption or group of interruptions caused by conditions that exceed the design and operational limits of a system. See IEEE Standard 1366- 2003 and RUS Bulletin 1730A-119 Exhibit E All Other – All interruptions excluding above categories 16

17. Computing Reliability Indices SAIFI – System Average Interruption Frequency Index SAIDI – System Average Interruption Duration Index CAIDI – Customer Average Interruption Duration Index 17

18. Computing Reliability Indices SAIFI = Total Number of Customer Interruptions/Total Number of Customers Served Average number of interruptions per customer during the year 18

19. Computing Reliability Indices SAIDI = Sum of all Customer Interruption Durations/Total Number of Customers Served Average Interruption Duration per Customer served during the year Same as Reported on Form 7 19

20. Computing Reliability Indices CAIDI = Sum of All Customer Interruption Durations/Total Number of Customer Interruptions Average Interruption Duration for those Customers who experience interruptions during the year CAIDI = SAIDI/SAIFI 20

21. Indices Example 21

22. Major Event Replaces Major Storm Determined by statistical formula to find Major Event days that the daily system SAIDI exceeds the threshold (T). Collect daily SAIDI for five sequential years ending on the last day of the last complete reporting period. If fewer than five years use all available data until five years of historical data are available 22

23. Major Event Only Include those days that have a positive SAIDI index Find the natural logarithm of each daily SAIDI Find α (Alpha) = Average of the logarithms Find β (Beta) = Standard Deviation of the logarithms 23

24. Major Event Use Calculation below to determine the threshold Any daily SAIDI for the current reporting year that is greater than the threshold is considered a major event day 24

25. Reliability Reporting NRECA model template for computing IAEC Example IAEC general web page 25

26. Reliability Reporting RUS IUB – Annual Reliability Report – Notification and reporting of outages – IAEC Outage Map 26

27. Reliability Reporting RUS Borrowers that borrow funds from RUS are required to report the system average annual interruption minutes per consumer on Form 7 and Form 300. Shown in Table 1 is Part G of Form 7. Form 7 calls for four separate SAIDIs, as well as the total interruption time. IAC 20.18(8)b. Annual Reliability Report IAC 20.18(8)b. – Must be reviewed and approved by your local board by April 1 each year. – Must be filed with the IUB after board approval – Must include previous 5 years reliability indices (SAIFI, SAIDI, CAIDI) IAC 20.19 Notification and reporting of outages IAC 20.19 – Current Rules Notification Outage Report – Completed Rule Making at IUB [RMU-2009-0004]RMU-2009-0004 27

28. IAEC Outage Map Purpose IAEC role REC role http://outages.iowarec.org/ 28

29. Reliability Reporting IAEC resources – IAEC model reliability report IAEC model reliability report – IAEC reliability web page IAEC reliability web page – IAEC annual REC specific reliability report – IOU Reliability reports (click here)click here 29

30. Review Reliability General Guidelines Reliability Plans Recording Interruptions Computing Indices Reporting 30

31. How to Submit Your Question Step 2: Click on the Send button.Step 1: Type in your question here.

32. Reliability Reporting Thank you for participating in today’s Web conference! Please complete the evaluation. 32