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 PANEL12345678910111213141516171819202122density and proximity to energized conductors that can be achieved with periodic,scheduled clearing, and the reduction in handling costs for the large trees removedduring the first cycle can mitigate the cost of subsequent clearing cycles. Further,a comprehensive cycle program would allow for even more efficient planning andcontracting of clearing work, reducing per-mile maintenance costs. Cyclical lineclearance also helps improve customer satisfaction. Customers are moreamenable to frequent cutting of small limbs and trees, and generally view this asacceptable. During the first cycle, however, customer satisfaction may beexpected to decrease as ROW is reclaimed. The incremental annual cost is $25.3million and the total annual cost for this program would be $36.19 million.Q. Has the Company utilized a partial clearing cycle in the past?A. Yes. Distribution line clearance has been funded to achieve established reliabilitytargets. This has resulted in the implementation of a partial clearing cycle.Transition to a full cycle clearing program has multiple benefits as described inthe previous response.Q. Is the Company proposing a change in accounting treatment?A. Yes. The cost to perform full cycle distribution line clearance is significantlygreater than the present spend. Additionally, costs for line clearance can varybased on market conditions and the expected volume of work per mile. TheCompany proposes that costs to achieve full cycle distribution line clearance bereconciled as part of the deferral recovery mechanism surcharge or surcreditmechanism that is discussed in detail by the Revenue Requirements Panel.55

Case 09-E-____; Case 09-G-____ (NYSEG)DIRECT TESTIMONY OF THE CAPITAL EXPENDITURES,RELIABILITY, AND OPERATIONS PANEL123456789101112131415161718192021Transmission Right-of-Way MaintenanceQ. Can you explain the Company's current transmission line clearing program?A. The transmission line clearing program is set forth in the Company's Long-RangeRight-of-Way Management Plan (also referred to as the Transmission VegetationManagement Plan or "TVMP"). The TVMP is designed to meet mandatoryNERC standards (i.e., FAC-003) and the Commission's requirements establishedin Case 04-E-0822. We have determined that there is a need for approximately$400,000 in incremental annual transmission line clearing expenditures to ensurecompliance with the applicable standards and requirements.Incremental PositionsQ. Are incremental positions necessary to support reliable service?A. Additional positions are needed to maintain the electric system. The CommissionStaff recommended in the 2007 Electric Reliability Performance Report, datedSeptember 8, 2008, that NYSEG should conduct a detailed self-assessment of itsexisting crewing/field work personnel levels, crew locations, and the effect theselevels have on system reliability, particularly interruption duration. The reportalso noted that the assessment should include historical personnel levels and fieldwork locations broken down per operating division, along with the Company'sfuture plans. The report also noted that the assessment should identifyimprovements to ensure that an adequate workforce remains in place so thatreliability is maintained at pre-2007 levels.56

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