METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...

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VI. ELECTRIC RELIABILITYBackground – The Stratified Management and Operations Audit of Metropolitan EdisonCompany (Met-Ed), Pennsylvania Electric Company (Penelec), and PennsylvaniaPower Company (Penn Power) (collectively, the FirstEnergy Pennsylvania Companies,FE-PA Companies or Companies) conducted by the consulting firmBarrington-Wellesley Group, Inc. (BWG or Consultant), released by the PennsylvaniaPublic Utility Commission (PUC or Commission) on March 1, 2007, at D-05MGT002,D-05MGT003 and D-05MGT004, contained six recommendations in the ElectricReliability chapter. BWG rated this functional area as needing significant improvement.In this chapter, five prior recommendations and prior situations are reviewed and fivefollow-up findings and three recommendations are presented.Prior Recommendation – Develop a detailed plan to improve distribution systemreliability and meet the System Average Interruption Duration Index (SAIDI) goals set inthe Settlement Agreement.Prior Situation – Due to several reliability issues in the past, FirstEnergy Corp.(FirstEnergy) entered into a Settlement Agreement with the Commission, in November2004 at Docket Number I-00040102, whereby the FE-PA Companies were directedtoward improving system reliability for all customers. In accordance with the SettlementAgreement, FirstEnergy had committed to making various changes and improvementsin inspection and maintenance practices and procedures that would assist in addressingmajor causes of outages and detecting developing problems in a timely manner. TheSAIDI, Customer Average Interruption Duration Index (CAIDI) and System AverageInterruption Frequency Index (SAIFI) were the three reliability indices commonly usedby FirstEnergy to determine system reliability across its distribution system. SAIDI isthe average outage duration for each customer served and is calculated by dividing thesum of all sustained customer interruption 4 durations by the total number of customersserved. CAIDI gives the average outage duration and is calculated by dividing the sumof all sustained customer interruption durations by the total number of interruptedcustomers. SAIFI is the average number of interruptions and is calculated by dividingthe total number of sustained customer interruptions by the total number of customersserved. SAIDI is the product of SAIFI and CAIDI. While SAIFI and SAIDI are drivenprimarily by frequency or time duration respectively, both variables drive CAIDI. Thelower the SAIFI, SAIDI and CAIDI numbers, the better the overall system reliabilityperformance.The 2004 Settlement Agreement required the FE-PA Companies to improve theirrespective SAIDI performance over their 2003 calendar year values and maintain SAIDIperformance at or below the 2003 levels in the years 2005 and 2006. The FE-PACompanies had not improved their SAIDI performance in accordance with theSettlement Agreement. SAIDI performance for all three of the FE-PA Companies had4 Sustained customer interruption is defined as the loss of electric service for one or more customers thatis five minutes or longer in duration.- 34 -
deteriorated significantly since 2003, and substantial improvement was required byeach electric distribution company (EDC) in order to meet the 2007 goals. Met-Ed,Penelec and Penn Power needed a reduction from 2005 SAIDI levels of 43%, 37%, and36% respectively, to meet their 2007 goals.Therefore, BWG recommended that FirstEnergy develop a plan to improve SAIDIto meet, or exceed, the targets set in the Settlement Agreement. The plan was toinclude detailed steps for each of the FE-PA Companies to take for improving theirSAIDI indices. The Consultant suggested that such steps include one or more of thefollowing:• Reduction in dispatcher average response time;• Reduction in acceptance time by first responders; i.e., when repair crewsneed to be called in after normal working hours;• Reduction in travel time to faulted area;• Reduction in restoration of service time;• Accurately documenting time when service is restored to each customer; and• Installing radio-controlled sectionalizing and other means of dispatch control.Follow-up Finding and Conclusion No. VI-1 – Each of the FE-PA Companies havedeveloped and implemented reliability improvement plans which have helpedeach EDC significantly improve its SAIFI and SAIDI performance.In accordance with the 2004 Settlement Agreement, the FE-PA Companiescommitted to improve their SAIDI performance over the calendar year 2003 achievedSAIDI levels so that for the 12 months ending December 31, 2007, the EDCs wouldachieve the following improvements at each of the FE-PA Companies:• Met-Ed – At least a 5% improvement over the 2003 achieved SAIDIperformance or a 2007 SAIDI goal of 133;• Penelec – At least a 25% improvement over the 2003 achieved SAIDIperformance or a 2007 SAIDI goal of 179; and• Penn Power – At least a 30% improvement over the 2003 achieved SAIDIperformance or a 2007 SAIDI goal of 134.The FE-PA Companies’ actual SAIFI, CAIDI and SAIDI levels for 2006 through2009 are summarized in Exhibits VI-1, VI-2 and VI-3. As shown in Exhibits VI-1, VI-2and VI-3, Met-Ed, Penelec and Penn Power were unable to meet their 2007 SAIDIgoals of 133, 179 and 134, respectively. However, Penelec and Penn Power’s 2009SAIDI performance of 143 and 87, respectively, were significantly below the 2007 SAIDIgoal of 179 and 134, respectively. Met-Ed’s 2009 achieved SAIDI performance of 134was one minute above its 2007 SAIDI goal of 133.- 35 -
Page 5: METROPOLITAN EDISON COMPANYPENNSYLV
Page 8 and 9: • Support Services• Human Resou
Page 10 and 11: • Developed and implemented forma
Page 12 and 13: FIRSTENERGY PENNSYLVANIA COMPANIESM
Page 24 and 25: III. AFFILIATE INTERESTSBackground
Page 26 and 27: In addition, subsidiary or related
Page 28 and 29: BWG recommended that a detailed, wr
Page 30 and 31: management. Other potential uses of
Page 32 and 33: IV. CORPORATE GOVERNANCEBackground
Page 34 and 35: V. FINANCIAL MANAGEMENTBackground -
Page 36 and 37: the internal audit was to determine
Page 38 and 39: Committee citing the internal contr
Page 42: Exhibit VI-1Metropolitan Edison Com
Page 45 and 46: provide additional details to the C
Page 47 and 48: Exhibit VI-6FirstEnergy Pennsylvani
Page 49 and 50: All three FE-PA Companies have had
Page 51 and 52: FirstEnergy is following the right
Page 53 and 54: Company, and The Toledo Edison Comp
Page 55 and 56: technicians. These strategies are u
Page 57 and 58: VIII. EMERGENCY PREPAREDNESSBackgro
Page 59 and 60: Routine periodic updating of the em
Page 61 and 62: Follow-up Finding and Conclusion No
Page 63 and 64: old excess inventory. Spare invento
Page 65 and 66: controls were automated. Moreover,
Page 67 and 68: Exhibit IX-6FE-PA CompaniesPercenta
Page 69 and 70: FE-PA Companies were unable to iden
Page 71 and 72: Staff’s Follow-up Recommendation
Page 73 and 74: Exhibit X-6Metropolitan Edison Comp
Page 75 and 76: Prior Recommendation - Develop a co
Page 77 and 78: Therefore, BWG suggested that First
Page 79 and 80: XI. CUSTOMER SERVICEBackground - Th
Page 81 and 82: Exhibit XI-2FE-PA CompaniesPercenta
Page 83 and 84: Exhibit XI-5FE-PA Companies Compare
Page 85 and 86: Exhibit XI-7FE-PA Companies Compare
Page 87 and 88: Follow-up Finding and Conclusion No
Page 89 and 90: uilding, in an effort to protect re
Page 91 and 92:
Companies would submit a supplement
Page 93 and 94:
3. The "four-fifths" rule (underuti
Page 95 and 96:
Met-Ed has female underutilization
Page 97 and 98:
Exhibit XII-4Page 1 of 2FirstEnergy
Page 99 and 100:
The number of years that FirstEnerg
Page 101 and 102:
FE-PA Companies do track purchases
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