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 PANEL1234567891011121314151617181920Q. What are the levels of gas capital required by the Company to perform its serviceresponsibilities?A. Approximately 85% of the Company's proposed level of annual capitalexpenditures is spent on mandatory replacement programs, mandated tariff mainand service extensions and rate case service quality performance measures.Q. Has NYSEG met its main and service replacement targets during the past fiveyears?A. Yes, NYSEG has met or exceeded the leak prone main replacement and leakprone service replacement targets every year.Q. Please describe the process that NYSEG uses to develop the forecast of its annualgas capital investment requirements.A. NYSEG's gas capital forecast is developed by the Director of Gas Engineeringand division operating departments based on forecasted customer additions, gassystem performance information and NYSEG's business plans.Q. What are the broad categories of focus used regarding program planning andcapital spending?A. The broad categories of focus used regarding program planning and capitalspending are Transmission Mains, Distribution Mains, Gas Services, Meters andService Regulators, M&R/Gate Stations, Production Plant, Highway Relocations,and General Plant/Miscellaneous.72