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 PANEL12345678910111213141516171819202122OPERATIONS & MAINTENANCEQ. What changes or incremental programs does NYSEG propose to include in thisrate proceeding that were not included in the test year or require an adjustment inbase rates?A. NYSEG is proposing the following changes or incremental programs regardinggas main clearing, Integrity Management ("IMP") and Distribution IntegrityManagement ("DIMP"), damage prevention and public awareness enhancements,a gas meter relocation revenue recovery program, enhanced maintenance ofexposed piping on bridges, incremental Seneca Storage maintenance and leasecost escalation, Seneca well logging, and manpower. DIMP will be required bythe U.S. Department of Transportation Pipeline and Hazardous Materials SafetyAdministration ("PHMSA"). The program cost associated with these initiatives isdetailed in Exhibit __ (NYSEGCROGAS-8) (Operation and MaintenanceIncremental Programs).Q. Does NYSEG currently perform mandated programs that cause NYSEG to incursignificant expense as deferral items?A. Yes, the federal mandated IMP for transmission pipelines has caused NYSEG toincur significant expense during the past six years, please refer to Exhibit __(NYSEGCROGAS-7) (NYSEG Integrity Management Budget History, Proposaland Forecast). NYSEG has spent approximately $1 million to date. NYSEG isproposing to include future costs for these programs in base rates. Theseprograms have proven to be very beneficial to NYSEG. NYSEG has discovered80