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 PANEL123456789101112131415161718192021Q. How many meters currently fall within this category?A. Approximately 10,000 meters are in this category.Q. In what way does moving meters outside help with arrears and write offexpenses?A. Some customers with indoor meters tend to have poor payment patterns becausethe threat of disconnection is greatly diminished. An analysis of 90 days orgreater arrears showed that customers with indoor meters had 40% higher arrearsat NYSEG than customers with outdoor meters. Having access to meters allowsthe Company to disconnect service for non-paying customers while providingmore incentive for customers to make timely payments. Keeping arrears low onaccounts has a direct correlation to limiting uncollectible expense.Q. What factors will be used to select accounts for relocation?A. Accounts will be reviewed individually based on factors such as arrears,feasibility for relocation, condition of customer equipment, and cost to determinethe priority list.Q. What is the estimated cost of the meter relocation program?A. The estimated cost is $816,000 per year, including labor.Q. What are the incremental O&M costs associated with Seneca Storage?A. The incremental Seneca Storage O&M costs involve logging the well casings forsafety purposes and recovery of the annual lease cost increases based upon theProducer Price Index escalation. Attached as Exhibit __ (NYSEGCROGAS-9)83