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

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Case 09-E-____; Case 09-G-____ (NYSEG)DIRECT TESTIMONY OF THE CAPITAL EXPENDITURES,RELIABILITY, AND OPERATIONS PANEL1234567891011121314151617181920REGULATORY MANDATESQ. What incremental expenses does the Company expect to incur due to regulatorymandates?A. NYSEG expects to incur incremental expenses for compliance with therequirements of: (1) the continued testing and inspection standards established inthe Commission's January 5, 2005 Order Instituting Safety Standards in Case 04-M-0159 (the "Stray Voltage Order") and December 15, 2008, Order AdoptingChanges to Electric Safety Standards ("Modified Stray Voltage Order"); (2)Transmission and Distribution Loss and Cost of Losses Study in response to theOrder issued on July 17, 2008 in Case 08-E-0751, which directed the utilities tospecifically identify all major sources of losses on their transmission anddistribution systems; and (3) additional cost to implement Staff recommendationsto improve storm response.Stray VoltageQ. What are the current costs associated with stray voltage?A. NYSEG's filing contains a rate year expense of $7.2 million. The rate year levelof costs associated with stray voltage has been adjusted to include compliancewith the inspection and testing requirements of the Stray Voltage Order, theModified Stray Voltage Order and an estimated increase in contractor costsassociated with testing.59
Case 09-E-____; Case 09-G-____ (NYSEG)DIRECT TESTIMONY OF THE CAPITAL EXPENDITURES,RELIABILITY, AND OPERATIONS PANEL12345678910111213141516171819202122Q. What are the major requirements of the Stray Voltage Order?A. Stray voltage testing must be conducted on all electric facilities that are capable ofconducting electricity and are publicly accessible. Testing is required on allfacilities annually. Certification for 100% compliance with test requirement mustbe provided by the utility.Q. Are there other requirements under the Stray Voltage Order?A. Inspections are also required on all electric facilities that are capable ofconducting electricity and are publicly accessible. All electric facilities shall beinspected at least every five years (a minimum of 20% per year). Certification ofcompliance with the requirements must be provided by the utility annually.Q. Has the Commission modified its Stray Voltage Order?A. Yes. On December 15, 2008, the Commission issued the Modified Stray VoltageOrder, which imposed on the Company incremental requirements above those inthe initial Stray Voltage Order issued in 2005.Q. What are the incremental inspection and testing costs associated with compliancewith the Modified Stray Voltage Order issued on December 15, 2008?A. NYSEG's estimated incremental inspection and testing costs associated with theModified Stray Voltage Order totals over $1.09 million annually.Q. Can you explain the additional increase in Stray Voltage above those costsimposed by the Stray Voltage Order and Modified Stray Voltage Order?A. The rate year expense includes an estimated increase in the contractor costsassociated with testing.60
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