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

Case 09-E-____; Case 09-G-____ (NYSEG)DIRECT TESTIMONY OF THE CAPITAL EXPENDITURES,RELIABILITY, AND OPERATIONS PANEL12345678910111213141516171819202122Q. Does NYSEG currently have mandated service quality performance measures andsafety related targets that they are required to accomplish in its current gas rateplan?A. Yes. NYSEG is subject to targets and associated revenue adjustments related toinfrastructure enhancements, leak management, damage prevention, andemergency response times. Targets for the Company were in effect throughDecember 2008 and were recently modified in the Iberdrola/Energy East MergerOrder in September of 2008. They are attached as Exhibit __ (NYSEGCROGAS-2).Q. Do the current mandated service quality performance measures help NYSEG toachieve and maintain the Company's infrastructure and current high performance?A. Yes, these mandated and Commission ordered programs have helped NYSEG tosystematically identify, prioritize and coordinate upgrades and replacements ofaging mains and services, reduce main and service leaks, improve emergencyresponse times, reduce third party system damages, extend the useful life of mainand improve the effectiveness of the quality assurance and employee trainingprograms, thereby improving system safety, reliability and economics.Q. Based upon NYSEG's historic performance under the gas safety performancestandards in effect through December 31, 2008, has NYSEG ever incurred arevenue adjustment penalty for not performing its duties?A. No, NYSEG has never incurred a performance measure penalty for not meetingits gas safety performance measure targets.70