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 PANEL123456789101112131415161718192021Q. Can you please describe NYSEG's projects that are classified as TransmissionMains?A. These projects involve relocating or replacing NYSEG's gas transmissionfacilities including mains and cased crossings.Q. What NYSEG projects are classified as Distribution Mains?A. These projects include the leak prone main replacement program, extension ofmains to serve new customers, and the installation of new pipe required to supportorganic growth of existing distribution systems.Q. What is NYSEG's capital forecast for these projects based upon?A. NYSEG forecasts these expenditures based on the projected cost to replace 20miles of leak prone main, the known development projects such as commercialand industrial development, residential housing development, subdivisions andhistorical growth information. Expenditures for the leak prone main and leakprone service replacement programs are based upon historical leak information,risk factors, NYSEG's O&M procedures and the terms and conditions of theNYSEG mandated programs. Economic development driven projects are alsoincluded in distribution. The capital requirements for new business are generallydependent upon the economic conditions throughout the service territory. Eventhough the Company has been experiencing net negative load growth due toequipment efficiencies, a sluggish economy and fluctuating commodity cost, abaseline level of work continues.73

Case 09-E-____; Case 09-G-____ (NYSEG)DIRECT TESTIMONY OF THE CAPITAL EXPENDITURES,RELIABILITY, AND OPERATIONS PANEL1234567891011121314151617181920Q. Can you please describe NYSEG's projects that are classified as gas services?A. These projects include installation of services to new customers, upgrade ofservices to supply increased loads to existing customers as required and thereplacement of a minimum of 2,000 leak prone services as part of the leak proneservice replacement program.Q. What projects are included in the budget for those NYSEG projects that areclassified as gas meters and service regulators?A. The budget for gas meters includes new meters and regulators to serve newcustomers, upgraded meters for existing customers and the replacement of agingmeters identified through the alternative in test program ("AIP").Q. Can you please describe M&R/Gate Station and Distribution Regulator Stationprojects?A. The M&R/Gate Station and Distribution Regulator Station projects include thereplacement or addition of new gas facilities due to the particular condition or theneed to increase system capacity. Examples of these types of programs includeobsolete regulator replacements, station replacement programs, and odorizerreplacement programs. These facilities are critical components to the safety andreliability of the delivery system. Systematic replacement and upgrade programssimilar to the main and service replacement programs should also be included andfunded in the annual capital plan.74

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