Reliability & Resiliency in the US Capitol Region/Hardening the Grid One Year after Hurricane Sandy

Transcription

1 1 Reliability & Resiliency in the US Capitol Region/Hardening the Grid One Year after Hurricane Sandy

2 2 Pepco D.C. Distribution System 260,000 Customers 175,000 Customers Supplied by Underground System 85,000 Customers Served by Overhead System 660 Circuit-Miles of Overhead Feeders & Lines

3 3 D.C. Undergrounding Studies Pepco: Report on the Feasibility of Removing Pre-Existing Above Ground Utility Lines & Cables & Relocating them Underground (Formal Case No. 1026) - September 30, 2004 Pepco: Report on the Feasibility of Removing Pre-Existing Above Ground Utility Lines & Cables in Selected Areas in the District of Columbia & Relocating them Underground - June 5, 2006 Supplemental Report - April 27, 2007

4 4 D.C. Undergrounding Studies PSC / Shaw Consultants Int l: Study of the Feasibility & Reliability of Undergrounding Electric Distribution Lines in the District of Columbia - July 1, 2010 Shaw Consultants undergrounding cost estimate compares favorably with the original 2006 Pepco estimate of $3.5 million per circuit-mile. Undergrounding the Mainline Primary represents the most costeffective solution if reliability is the number one concern. Lowest cost option at $1.1 Billion (2006$) impacting the majority (65%) of customers affected by outages

5 5 Severe Weather Events Challenged Pepco s Distribution System Resiliency

6 6 Washington Post Why Pepco Can t Keep the Lights On December 5, in reliability studies, the company ranks near the bottom in keeping the power on and bringing it back once it goes out, an analysis by The Washington Post has found. In fact, the average Pepco customer experienced 70 percent more outages than customers of other big city utilities that took part in one 2009 survey. And the lights stayed out more than twice as long.

7 7 Washington Post Pepco Executives Acknowledge Need to Improve Reliability December 6, 2010 Senior Pepco executives acknowledged Monday that the company has failed to provide reliable power to its customers and repeated their previously announced plan to improve service over the next five years.

8 8 Severe Weather Events Challenged Pepco s Distribution System Resiliency

9 9 Severe Weather Events Challenged Pepco s Distribution System Resiliency Major Service Outages: 2012 Date June 22 June 29 Customers Peak 19,561 75,896 Storm Period 51 Hours 180 Hours Avg. Restoration Time 8.0 Hours 34.2 Hours Cause Thunderstorm Derecho Date Sept 8 Oct 29 Customers Peak 13,140 9,694 Storm Period 38 Hours 54 Hours Avg. Restoration Time 5.0 Hours 5.0 Hours Cause Thunderstorm Hurricane Sandy

10 Derecho Storm Outages 10

11 11 D.C. Reliability Hearings D.C. Council Committee on Public Services & Consumer Affairs Public Roundtable Hearings on Pepco Service Reliability July 14, 2010 July 13, 2012 Public Service Commission Hearings November Community Hearings Pepco Rate Case October 11, 2012 Pepco s Storm Restoration Activities

12 12 Pepco Rate Increase Request (Formal Case No. 1087; Order: September 27, 2012) Pepco Requests Approval of Reliability Investment Recovery Mechanism ( Tracker Surcharge on Monthly Bills) Denied OPC Proposed Adjustments to Pepco Base Rate & ROE as Sanction for Poor Service Reliability Denied OPC Proposed Pepco Executives Compensation Based on Meeting Reliability Standards Assigned to New Proceeding

13 13 August 16, 2012: D.C. Mayor Vincent C. Gray Issued Executive Order Established the Mayor s Power Line Undergrounding Task Force advise the Mayor on the general causes of storm-related power outages in the District, actions that may be taken to reduce future storm-related power outages, and the undergrounding of power lines.

14 14 Mayor s Power Line Undergrounding Co-Chairmen: Task Force Allen Y. Lew, D.C. City Administrator Joseph Rigby, Chairman of the Board, President & CEO, Pepco Holdings, Inc.

15 15 Mayor s Power Line Undergrounding Task Force Members: D.C. Council Representative D.C. Government Deputy Mayor of Safety & Justice Department of the Environment Department of Transportation Department of Public Works Office of the Chief Financial Officer Office of Budget & Finance Public Service Commission Office of the Peoples Counsel D.C. Resident Representatives Utility Representatives DC Water & Sewer Authority Comcast Cable RCN Verizon Washington Gas

16 16 Task Force Committees Emergency Response Chair: Director, D.C. Homeland Security & Emergency Management Agency Finance Chair: Director, D.C. Office of Budget & Finance Legislative & Government Affairs Chair: Senior Legal Counsel, D.C. Office of the City Administrator Planning & Research Chair: Director, D.C. Department of Transportation Technical Chair: Senior Vice President, Pepco

17 17 MAYOR S POWER LINE UNDERGROUNDING TASK FORCE TECHNICAL COMMITTEE Scenario 1: Underground the Overhead Three Phase Primary Mainline Feeders. Retaining existing overhead laterals, transformers, secondary lines & service poles. Scenario 2: Underground the Overhead Primary Feeders & Laterals including Secondary & Service Lines. Replace overhead pole mounted transformers with pad mount transformers. Scenario 3: Underground the Overhead Primary Feeders & Laterals. Replace overhead pole mounted transformers with pad mount transformers. Leave existing overhead secondary & service lines. RECOMMENDED Scenario 4: Underground All Primary Feeders & Laterals, Transformers, Secondary & Service Lines up to the Service Delivery Point. Scenario 5: Underground the Primary Laterals. Retaining existing overhead primary mainline feeders, secondary & service lines. Replace overhead pole mounted transformers with pad mount transformers.

18 18 May 15, 2013 Task Force Recommended Plan Construction of Underground Facilities will be Facilitated through a Partnership between Pepco & the District of Columbia Government. Conversion of approximately 60 Overhead Primary & Lateral Feeders to Underground construction during the next 7-10 years. Primary Criteria for Selection of Feeders based on Past Reliability Performance including Major Storm Outages.

19 19 DDOT & Pepco Roles & Responsibilities DDOT will build conduit within the public roadway for identified underground projects in conjunction with road projects. When DDOT completes construction and the conduits are accepted by Pepco for its use and maintenance, DDOT will issue a permit for public space access to Pepco. DDOT will retain the ability to manage the public space where the conduit is located. DDOT will transfer ownership of the conduit to Pepco for little or no financial consideration. As a result, Pepco will not earn a return on the contributed property and the transfer will not impact customer surcharge.

20 Pepco & DDOT Roles & Responsibilities (continued) 20

21 Project Financing 21

22 Project Financing (continued) 22

23 23

24 Uses of Financing 24

25 25 Electric Company Infrastructure Improvement Financing Act of 2014

26 26 Public Service Commission Responsibilities

27 27 Public Service Commission Responsibilities (continued)

28 Next Steps 28

29 Commission Decisions?? 29

30 More Commission Decisions?? 30

31 The End 31