direct testimony of the capital expenditures, reliability, and - nyseg
direct testimony of the capital expenditures, reliability, and - nyseg 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 PANEL12345678910111213141516171819202122Q. Are there any restrictions placed on the use of the NYSEG Gas R&D funds?A. Yes. As stated in the JP, NYSEG is not permitted to use any excess R&D costsfor any other purpose, or book such costs to earnings, without the approval of theCommission.Q. How does NYSEG manage R&D?A. NYSEG has a centralized staff in the Energy Technology Group to administer theR&D program as well as manage individual projects and uses project managersthroughout the organization on a project-by-project basis. Executive managementprovides program direction to maximize the benefit of the program to NYSEG'scustomers and shareholders. Frequent communication between RG&E and theNYSEG Energy Technology Group keeps the two companies' programs inalignment with each other and the NYSEARCH Millennium program. Wheneverthere are sufficient funds, NYSEG and RG&E collaboratively fund projects thatwould provide benefit to both Companies. However, due to the limitations on theuses of Millennium funds and the disparity in funding levels, there are manyprojects in which RG&E is not able to be a participant.Q. Can you please provide examples of how the Gas R&D funds have been used bythe Company for the benefit of the ratepayers?A. The NYSEG/RG&E gas R&D program has had several significant successes. ForNYSEG, these successfully deployed technologies come from NYSEARCH andGTI collaboratively-funded projects as well as from in-house projects. Theygenerated significant cost savings that exceed the annual R&D investment of87
Case 09-E-____; Case 09-G-____ (NYSEG)DIRECT TESTIMONY OF THE CAPITAL EXPENDITURES,RELIABILITY, AND OPERATIONS PANEL123$2,364,000 (includes $314,000 of Millennium funding from RG&E). They alsoyield positive safety, customer service and environmental benefits. Examples ofsome of these successful projects include:45678910111213141516171819202122The P&L E-Communications LLC damage prevention and securitycamera/software project allowed an immediate $8,000,000 cost reduction in2008 with added savings and safety benefits expected to continue for manyyears. This was an RG&E innovation that was co-funded by NYSEG andNYSEARCH.The NYSEARCH PAH (Poly-aromatic Hydrocarbons) – ContaminatedSediments Bioavailability project documented the true (lesser) biological riskpresented by Manufactured Gas Plant ("MPG") tars in aquatic sediments andallowed NYSEG to avoid $3,000,000 of remediation costs at the formerPlattsburgh MGP site.The NYSEG Compact Directional Drill project acquired the first compactdirectional drill in the United States and allowed a 6-year, $1,410,000 costreduction along with significant customer service and environmental benefits.Annual savings of approximately $235,000 will continue for the life of theequipment.The NYSEG Compact Construction Equipment project has reduced O&Mcosts by $630,000 by the addition of small excavation equipment to the O&Mfleet. In addition to safety and customer service benefits, annual savings ofapproximately $142,000 continue to accrue.88
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Case 09-E-____; Case 09-G-____ (NYSEG)DIRECT TESTIMONY OF THE CAPITAL EXPENDITURES,RELIABILITY, AND OPERATIONS PANEL123$2,364,000 (includes $314,000 <strong>of</strong> Millennium funding from RG&E). They alsoyield positive safety, customer service <strong>and</strong> environmental benefits. Examples <strong>of</strong>some <strong>of</strong> <strong>the</strong>se successful projects include:45678910111213141516171819202122The P&L E-Communications LLC damage prevention <strong>and</strong> securitycamera/s<strong>of</strong>tware project allowed an immediate $8,000,000 cost reduction in2008 with added savings <strong>and</strong> safety benefits expected to continue for manyyears. This was an RG&E innovation that was co-funded by NYSEG <strong>and</strong>NYSEARCH.The NYSEARCH PAH (Poly-aromatic Hydrocarbons) – ContaminatedSediments Bioavailability project documented <strong>the</strong> true (lesser) biological riskpresented by Manufactured Gas Plant ("MPG") tars in aquatic sediments <strong>and</strong>allowed NYSEG to avoid $3,000,000 <strong>of</strong> remediation costs at <strong>the</strong> formerPlattsburgh MGP site.The NYSEG Compact Directional Drill project acquired <strong>the</strong> first compact<strong>direct</strong>ional drill in <strong>the</strong> United States <strong>and</strong> allowed a 6-year, $1,410,000 costreduction along with significant customer service <strong>and</strong> environmental benefits.Annual savings <strong>of</strong> approximately $235,000 will continue for <strong>the</strong> life <strong>of</strong> <strong>the</strong>equipment.The NYSEG Compact Construction Equipment project has reduced O&Mcosts by $630,000 by <strong>the</strong> addition <strong>of</strong> small excavation equipment to <strong>the</strong> O&Mfleet. In addition to safety <strong>and</strong> customer service benefits, annual savings <strong>of</strong>approximately $142,000 continue to accrue.88
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