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 PANEL12345678910111213141516171819202122facilities requiring repair due to construction damage and material defects. Thisprogram will continue to require additional resources in the future.Q. What is the proposed level of O&M spending requested related to the IMP?A. The O&M expense to continue the requirements for this program is estimated at$525,000 in 2010.Q. Are you aware of any future integrity related programs that will cause you toincur significant cost increases?A. Yes, starting in 2010, all distribution natural gas companies will be required tohave a formal DIMP that will address additional operational and safety aspects.PHMSA is expected to issue the final rule making in the first quarter of 2010. Itis anticipated that 18-24 months will be given for program development andimplementation. The final details and approvals of Company procedures have yetto be finalized. NYSEG has estimated the cost to prepare appropriatedocumentation and implementation plans to be in compliance with these newfederal and state mandates and have included these costs in our O&M plans.Q. What is the estimated annual O&M spending for DIMP that is being proposed?A. The estimated amount required is $100,000 per year, starting in the last quarter of2010.Q. Does the Company currently have a gas main clearing program and budget?A. Yes, the Company has O&M procedures in place that specify gas main clearingand pipeline marker requirements and the costs to perform the work are includedin regional operations budgets. In the future, the Company plans to enhance the81