direct testimony of the capital expenditures, reliability, and - nyseg

12.07.2015 Views
Case 09-E-____; Case 09-G-____ (NYSEG)DIRECT TESTIMONY OF THE CAPITAL EXPENDITURES,RELIABILITY, AND OPERATIONS PANEL12345678910111213141516171819202122Q. What Security capital expenditures specifically related to facilities are planned?A. The investment identified in the Company's Exhibit __ (NYSEGCRO-8) is acollection of small projects needed to comply with Security requirementsdiscussed below. Expenditures are anticipated during this time period forhardened security upgrades, lighting and fencing installations at various Companyfacilities, including electric substations and service centers. Closed circuittelevision upgrades at critical gas and electric substations and overall securitysystem upgrades for Hydro generating stations and Company facilities are alsoplanned.Q. Are there any utility critical infrastructure protection orders or regulationsdirecting the Security expenditures described?A. Yes. The United States Department of Homeland Security has recommendedsecurity standards under The Homeland Security Act of 2002. NERC EROstandards under Critical Infrastructure Protection ("CIP") regulations mandate acyber security framework for the physical and electronic protection of CriticalCyber Assets to support the reliable operation of the bulk electric system. TheCommission has also implemented certain actions pursuant to its Orders issued onAugust 2, 2002, September 22, 2002, December 18, 2002, and September 30,2003 in Case 02-M-0953.Q. Has the Company achieved compliance with CIP required security measures?A. Yes. The proposed investments are to continue implementation of securitystandards reviewed and encouraged by Staff.41

Case 09-E-____; Case 09-G-____ (NYSEG)DIRECT TESTIMONY OF THE CAPITAL EXPENDITURES,RELIABILITY, AND OPERATIONS PANEL12345678910111213141516171819202122Q. Do these security expenditures include expenditures related to FERC action toexpand the definition of the bulk electric system down to 100 kV?A. No. In the event that the FERC takes such action, additional securityexpenditures are likely to be required.FEDERAL STIMULUS PROJECT OVERVIEWQ. Can you please describe the purpose of the Panel's testimony as it relates to theAmerican Recovery and Reinvestment Act of 2009 ("ARRA") (Public Law 111-05)?A. The ARRA ("Stimulus Program") provides in part for approximately $4.5 billionnationwide to fund competitive projects in the Electricity Delivery and EnergyReliability ("EDER") program. The EDER program, administered by the UnitedStates Department of Energy ("DOE"), supports technology projects that increasethe use of digital information and controls, provides dynamic optimization of gridoperations and status, allows integration of smart appliances, provides timelyinformation to consumers and control options, and minimizes unreasonablebarriers to adoption of smart grid technologies. The DOE established two specificcompetitive grant opportunities for the EDER program: the Investment GrantProgram funded at $3.375 billion and the Demonstration Program funded at $600million. These two programs provide maximum grants for qualifying investmentsbetween 20% and 50% of the project's cost. The DOE suggested that utilities thathad found other non-federal funding sources to cover the remaining costs of theinvestments would have a greater likelihood of success in their selection process.42

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