:runsdshuv · 2019. 8. 30. · 6 refer to wp sce-02, vol. 01, pt. 2, pp. 4-9 – memo of...
TRANSCRIPT
(U 338-E)
2021 General Rate Case A.19-08-
Workpapers
Distribution Grid SCE-02 Volume 01, Part 02
August 2019
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
1
I. 1
INTRODUCTION 2
A. Content and Organization of Distribution Inspections & Maintenance and Capital-Related 3
Testimony 4
This testimony includes analyses for the Distribution Inspections & Maintenance Business 5
Planning Element (BPE) of: (1) O&M and capital funding authorized in the 2018 General Rate Case 6
(GRC) compared to recorded amounts in 2018; (2) the 2021 O&M test year forecast; and (3) the 2019 – 7
2023 capital expenditures forecast. This testimony also includes a section to describe SCE’s Safety and 8
Reliability Investment Incentive Mechanism (SRIIM). Certain of these forecasts will be updated 9
pursuant to the discussion in Chapter IV.A in the Application. 10
B. Summary of O&M and Capital Request 11
SCE forecasts $161.284 million in O&M expenses and $509.932 million in capital expenditures 12
in test year 2021 for Distribution Inspections & Maintenance and Capital-Related expense activities. 13
Included in those totals are forecasts for SCE’s Streetlight Operations, Inspections and Maintenance 14
program. 15
SCE’s total request for the Distribution Grid BPG is presented in Figure I-1 and Figure I-2 16
below. 17
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Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
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Figure I-1 Distribution Grid Part 2 O&M Expenses 2021 Forecast
(Total Company Constant 2018 $Million)
2
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
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Figure I-2 Distribution Grid Part 2 Capital Expenditures 2019-2023
(Total Company -Nominal $Million)
3
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
4
II. 1
INSPECTIONS & MAINTENANCE 2
In this chapter, SCE discusses its Inspections & Maintenance Business Planning Element, an 3
element within SCE’s Distribution Grid Business Planning Group. The inspections and maintenance 4
activities discussed in this chapter are performed on SCE’s distribution lines and equipment located 5
outside of a substation. Maintenance work includes both expense repairs and capital replacements 6
performed on the distribution grid. The most common types of distribution electrical equipment include 7
transformers, switches, cable, and conductor which typically operate at line voltages of 4kV, 12kV, 8
16kV and less frequently at 33kV. SCE also discusses the streetlight inspection and maintenance 9
program including the Light Emitting Diode (LED) upgrade program. 10
A. Overview 11
The majority of planned work discussed in this chapter is performed to satisfy maintenance and 12
inspection requirements placed upon SCE by the California Public Utilities Commission (CPUC) and 13
various city and county agencies. 14
The electrical equipment and structures in SCE’s distribution grid undergo planned and 15
unplanned inspections and maintenance. Required maintenance is identified through the following 16
sources: 17
Scheduled inspections driven by specific regulatory requirements; 18
Field inspections by personnel while performing other work; 19
Inspections performed after emergencies or in-service failures of equipment; and 20
Initiation of new or changes in existing programs.1 21
These inspections drive three categories of maintenance: 1) repairs made by inspectors, 2) repairs 22
made by line crews; and 3) replacements made by line crews. 23
In addition to inspection and maintenance activities, this chapter also includes the costs to 24
support the following distribution construction and maintenance activities: patrolling and locating 25
trouble on the distribution system; inspecting, maintaining, and replacing streetlight fixtures and lights; 26
conversion of existing streetlights to LED technology; and repairing third party damages to the 27
distribution grid. 28
1 An example includes a change to General Order (GO) 95 which requires Priority 3 items to be scheduled and
completed where previously they were repaired only in conjunction with other work on the same structure.
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Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
5
This chapter will begin with a description of the risk, safety, and reliability factors impacted by 1
Inspections & Maintenance; the regulatory and policy drivers of the work; regulatory compliance 2
requirements; and a comparison of 2018 GRC request, authorized, and recorded for activities included in 3
this chapter. Next, this chapter will present SCE’s Inspection & Maintenance O&M request followed by 4
SCE’s capital request. 5
1. Risk Factors, Safety, Reliability and Connection with Risk Assessment Mitigation 6
Phase (RAMP) 7
SCE’s Underground Detailed Inspections (UDI) and Underground Preventive 8
Maintenance, as well as the Overhead Detailed Inspections (ODI), Apparatus Inspections, and 9
Preventive Maintenance and Distribution Apparatus Maintenance are activities included in SCE’s 10
Distribution Inspection and Maintenance Program (DIMP). These inspection and maintenance 11
compliance activities help mitigate the safety and reliability impacts associated with equipment failure 12
throughout SCE’s distribution system. 13
In SCE’s 2018 RAMP report, which evaluated SCE’s top safety risks and the mitigations 14
most effective to address them, SCE identified two risks applicable to these inspection and maintenance 15
activities. First, the “Contact with Energized Equipment” RAMP risk evaluated the risks associated with 16
distribution overhead conductor wire down events, as well as the risks associated with human contact 17
with intact conductor.2 For this risk, SCE identified SCE’s ODI, Apparatus Inspections, and 18
Preventative Maintenance activities within the DIMP as compliance activities that help address the risk. 19
Second, the “Underground Equipment Failure” RAMP risk evaluated the risk to SCE, its electrical 20
system, and the public resulting from underground electrical equipment failure. SCE identified the UDI 21
program as a compliance activity that helps to address this risk.3 Table II-1 below shows the mapping of 22
GRC activities in this testimony to the applicable RAMP control and risk within SCE’s 2018 RAMP 23
report. 24
2 See Chapter 5 of SCE’s 2018 RAMP Report (I.18-11-006) for additional information on SCE’s Contact with
Energized Equipment RAMP risk.
3 See Chapter 11 of SCE’s 2018 RAMP Report (I.18-11-006) for additional information on SCE’s Underground Equipment Failure RAMP risk.
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Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
6
Table II-1 Distribution Inspections and Maintenance Compliance Activities
Included in SCE’s 2018 RAMP Filing
GRC Activity RAMP Compliance Activity Name
RAMP ID Risk Addressed
Distribution Underground Detailed Inspections
Underground Detailed Inspections (UDI) and Underground Preventive
Maintenance CM1
Underground Equipment Failure
Distribution Overhead Detailed Inspections
Overhead Detailed Inspection, Apparatus Inspections, and Preventive Maintenance
CM3 Contact with Energized Equipment
Distribution Apparatus Inspections and Maintenance
2. Regulatory Background/Policies Driving SCE’s Request 1
Many regulatory requirements drive distribution inspection and maintenance activities. 2
SCE’s DIMP addresses both these requirements and SCE’s internal standards that supplement or exceed 3
minimum regulatory requirements. The goal of DIMP is to meet the requirements of General Orders 4
(GO or GOs) 95, 128, and 165 in a way that: (1) follows sound maintenance practices; (2) enhances 5
public and worker safety and maintains system reliability; and (3) delivers overall greater safety value 6
for each dollar spent by allowing SCE to focus its resources on higher priority tasks. 7
B. 2018 Decision 8
1. Comparison of Authorized 2018 to Recorded 9
Figure II-3 shows the 2018 request, authorized, and recorded costs for O&M activities 10
included in this chapter. 11
6
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
7
Figure II-3 Distribution Inspection and Maintenance O&M Expenses4
Comparison of 2018 Authorized to Recorded (Total Company – Nominal $000)
Distribution Preventive and Breakdown O&M Maintenance was $21.508 million below 1
authorized in 2018 due to SCE’s wildfire prevention efforts. SCE redirected its workforce to perform 2
enhanced overhead inspections of the distribution grid in high fire areas. The underrun was offset by 3
slight increases in other areas reflected in the figure above. 4
Figure II-4 shows the 2018 request, authorized, and recorded costs for capital activities 5
included in this chapter. 6
4 Refer to WP SCE-07, Vol. 01 - Authorized vs Recorded.
($21,508) ($740)
$121 $446
$2,289 $979
$145,717 $145,712
$127,298
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2018 Request 2018Authorized
Apparatus I&M OH Det Insp Prev & BrkdnMtnce
UG Det Insp Patrol & Locate StLite Ops,I&M
2018 Recorded
Apparatus I&M OH Det Insp Prev & Brkdn Mtnce UG Det Insp Patrol & Locate StLite Ops, I&M
7
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
8
Figure II-4 Distribution Inspection and Maintenance Capital5
Comparison of 2018 Authorized to Recorded (Total Company – Nominal $000)
Distribution Preventive and Breakdown Capital Maintenance was $20.321 million below 1
authorized in 2018 due to SCE’s wildfire prevention efforts. SCE redirected its workforce to perform 2
enhanced overhead inspections of the distribution grid in high fire areas. This underrun was partially 3
offset by Distribution Claims as shown in the figure. 4
C. Distribution Inspection and Maintenance Program (DIMP) 5
1. DIMP Overview 6
SCE’s DIMP addresses regulatory requirements and SCE’s internal standards that 7
supplement or exceed minimum regulatory requirements. DIMP allows SCE to prioritize work based on 8
the condition of each facility or piece of equipment and its potential safety and reliability impacts, 9
considering various factors. These factors may include such things as the voltage, location, accessibility, 10
and climate in which the equipment operates. DIMP enables SCE to prioritize resource allocation to 11
higher value activities (i.e., activities with a more significant safety and reliability impact) and deploy its 12
resources more effectively and efficiently to remediate conditions that potentially pose higher risks. This 13
5 Refer to WP SCE-07, Vol. 01 - Authorized vs Recorded.
(Continued)
($20,231)
$7,446$305,922 $305,922
$293,047
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2018 Request 2018 Authorized Preventive & BreakdownMaintenance
Distribution Claim 2018 Recorded
Preventive & Breakdown Maintenance Distribution Claim
8
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
9
approach follows the Commission’s direction under GOs 95, 128, and 165 and a memorandum of 1
understanding6 between SCE and the CPUC’s Safety and Enforcement Division. 2
DIMP has three maintenance priority levels. Highest priority items requiring immediate 3
action are assigned Priority 1. Priority Level 27 is a non-immediate risk to safety or reliability. Priority 1 4
and Priority 2 items may be fully repaired or temporarily repaired and potentially reclassified to a lower 5
priority item. Priority 3 items are all items identified as low potential impact to safety or reliability. 6
While Priority 3 items do not require immediate action, they do require corrective action within 60 7
months.8 8
2. DIMP Activities 9
a) Distribution Overhead Detailed Inspections (ODI) 10
The recorded and forecast expenses for ODI are shown in Figure II-5. The 11
forecast for 2019-2021 includes a proposed reduction that will occur with the approval of SCE’s EOI 12
program, described in detail in the following sections. 13
6 Refer to WP SCE-02, Vol. 01, Pt. 2, pp. 4-9 – Memo of Understanding.
7 Priority 2 maintenance items require corrective action within 0-24 months for non-HFAs and 0-12 months for HFAs.
8 See D.18-05-042 for the decision to amend Rule 18 of GO 95 requiring Priority 3 maintenance items to be corrected within 60 months effective June 30, 2019.
9
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
10
Figure II-5 Distribution Overhead Detailed Inspections O&M Expenses9,10
Recorded (2014-2018)/Forecast (2019-2021) (Constant 2018 $000)
(1) Work Description and Need for Activity 1
As required by GO 165, inspections of the overhead distribution system 2
include annual grid patrols and overhead detailed inspections. GO 165 requires detailed inspection of 3
overhead distribution equipment every five years. In any given year where SCE does not perform an 4
overhead detailed inspection, a grid patrol will be performed. These activities include costs for 5
inspecting SCE’s overhead distribution electrical system under GO 165 and SCE’s DIMP. The 6
inspections and patrols are performed by SCE’s Electrical System Inspectors (ESIs). In addition, SCE’s 7
Wireless Technology Rate (WTR), which is an inspection related to third-party attachments (e.g., cable 8
television/internet and telecommunications) to distribution poles, is included in this activity. 9
Annual grid patrols and overhead detailed inspections are performed 10
across SCE’s distribution system using a geographical grid-based approach. SCE’s service territory is 11
segmented into geographical areas, or grids, which contain overhead and underground facilities on 12
9 Refer to WP SCE-02, Vol. 1, Pt. 2, pp. 10-11 - Overhead Detailed Inspections – 2021.
10 Refer to WP SCE-02, Vol. 1, Pt. 2, pp. 12-18 – O&M detail for Distribution Overhead Detailed Inspections.
2014 2015 2016 2017 2018 2019 2020 2021
Labor $4,585 $4,676 $5,013 $5,224 $4,709 $3,462 $3,462 $3,462Non-Labor $2,856 $3,281 $2,256 $1,988 $3,319 $1,483 $1,483 $1,483
OtherTotal Expenses $7,442 $7,957 $7,269 $7,213 $8,027 $4,945 $4,945 $4,945
Ratio of Labor to Total 62% 59% 69% 72% 59% 70% 70% 70%
Recorded Forecast
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
2014 2015 2016 2017 2018 2019 2020 2021
Labor Non-Labor Other
10
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
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SCE’s distribution electrical system. The number of grids and population of the grids change over time 1
as electrical facilities are added or removed from the system. 2
The purpose of the ODI program is to perform a close-proximity, in-depth 3
evaluation of SCE’s overhead electrical facilities such as poles, capacitors, switches, transformers, 4
conductors, guy wires, and risers to: 5
Identify hazardous conditions or non-conformances with GO 95 that 6
require corrective action. Examples include leaking transformers, 7
broken or damaged equipment, encroachment of line clearances, 8
deteriorated cross arms, and missing or damaged high voltage signs; 9
Determine what corrective action is required and prioritize follow-up 10
corrective action under DIMP; 11
Perform minor repairs at the public level while at the location. 12
Inspectors commonly perform repairs such as replacing damaged 13
ground molding at the public level, installing guy guards, removing 14
unauthorized attachments (if appropriate), and installing pole tags; 15
Document inspection findings, including pending and completed 16
repairs; and 17
Validate equipment records and identify corrections as needed. 18
Identified maintenance items discovered during annual grid patrols or ODI 19
are repaired by the inspector at the time of the inspection or prioritized for follow-up corrective action 20
under SCE’s DIMP program. 21
SCE performs biannual inspections to the WTR equipment in order to 22
verify that third parties with attachments on distribution poles comply with SCE contractual agreements, 23
as well as GO 95 and GO 128. 24
(2) Scope and Forecast Analysis 25
(a) Historical Variance Analysis 26
The recorded costs for ODI have fluctuated during the 2014-2018 27
period due to the number of inspections required and performed in each year. SCE has utilized a 28
combination of SCE and contracted resources to perform the inspections. The labor and non-labor 29
recorded costs fluctuated due to the variation of internal or contracted resources used in each year. In 30
2018, recorded costs for ODI increased by approximately $1.5 million due to infrared inspections 31
11
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
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performed on SCE’s distribution grid to assess fire risk in both high-fire and non-high fire areas. This 1
added inspection technique increased spending between 2017 and 2018. 2
(b) Basis for O&M Cost Forecast 3
The test year forecast for ODI, without EOI reduction, is based on 4
2018 recorded costs reduced by $1.476 million for one-time infrared inspections performed in 2018. The 5
recorded and forecast costs for each sub-activity included in the ODI activity is shown in Table II-2. 6
Table II-2 Distribution Overhead Detailed Inspections O&M Expenses without EOI
Recorded (2014-2018)/Forecast (2019-2021) (Constant 2018 $000)
If SCE’s Enhanced Overhead Inspection, as proposed in Exhibit 7
SCE-04, Volume 5, is not fully funded, SCE will need to restore the funding to last year recorded for 8
both Overhead Detailed Inspections and Annual Grid Patrols, as shown in Table II-2. This funding will 9
be necessary to continue to perform required inspections across SCE’s entire distribution grid. 10
b) Distribution Underground Detailed Inspections 11
The recorded and forecast expenses for UDI are shown in Figure II-6. 12
2014 2015 2016 2017 2018 2019 2020 2021Overhead Detailed Inspections 5,754$ 6,267$ 5,502$ 5,646$ 5,188$ 5,188$ 5,188$ 5,188$ Annual Grid Patrol 1,393 1,467 1,515 1,349 1,237 1,237 1,237 1,237 Infrared Inspections - - - - 1,476 - - - Wireless Technology Rate 295 223 253 218 126 126 126 126 Total Overhead Detailed Inspections 7,442$ 7,957$ 7,269$ 7,213$ 8,027$ 6,551$ 6,551$ 6,551$
Recorded Forecast
12
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
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Figure II-6 Distribution Underground Detailed Inspections O&M Expenses11
Recorded (2014-2018)/Forecast (2019-2021) (Constant 2018 $000)
(1) Work Description and Need for Activity 1
This activity includes inspecting SCE’s underground distribution electrical 2
system under GO 165 and SCE’s DIMP. UDI provides close-proximity examination of underground and 3
pad-mounted distribution equipment. Inspectors assess subsurface and pad-mounted equipment 4
including structures, switches, transformers, visible cables, and associated components to identify safety 5
hazards and non-conformances with GO 128. Vault and manhole structures containing only cables are 6
also inspected. Like the ODI inspectors, the UDI inspectors document safety and reliability hazards and 7
prioritize corrective actions under SCE’s DIMP. When possible, they perform routine maintenance or 8
make repairs during the inspection.12 UDI activities are performed by a two-person crew, which includes 9
11 Refer to WP SCE-02, Vol. 02, Pt. 1, pp. 19-25 – O&M detail for Distribution Underground Detailed
Inspections.
12 Minor repairs are charged to the inspection activity and more complex repairs are charged to maintenance.
2014 2015 2016 2017 2018 2019 2020 2021Labor $4,321 $3,345 $4,273 $5,930 $5,945 $4,990 $5,363 $5,414
Non-Labor $1,109 $1,610 $1,816 $1,084 $817 $686 $737 $744Other
Total Expenses $5,431 $4,955 $6,089 $7,014 $6,762 $5,676 $6,101 $6,158
Ratio of Labor to Total 80% 68% 70% 85% 88% 88% 88% 88%
Recorded Forecast
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
2014 2015 2016 2017 2018 2019 2020 2021
Labor Non-Labor Other
13
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
14
a journeyman lineman and a groundman, who are trained and qualified to work in underground vaults 1
and in proximity to energized high voltage equipment. 2
In some instances, UDI results will require an additional evaluation 3
regarding the condition of an underground structure. This additional evaluation, or Field Inspection (FI), 4
is performed on underground vaults or manholes where deterioration of the structure exceeds acceptable 5
levels. The FI is performed by a licensed structural engineer who evaluates the condition of the structure 6
and recommends actions needed to correct the structural deficiency. The actions may include replacing 7
the entire structure, shoring, or making repairs.13 8
(2) Scope and Forecast Analysis 9
(a) Historical Variance Analysis 10
Figure II-6 shows the recorded expenses and Table II-3 shows the 11
number of completed inspections from 2014-2018. The number of underground detailed inspections 12
includes each individual piece of equipment within the structure, as well as the structure. For example, if 13
a structure has four pieces of equipment, the recorded count will be five – representing inspections on 14
four pieces of equipment plus one structure. 15
Table II-3 Underground Detailed Inspections 2014-2018 Completed Inspections
The historical variances are caused by several factors that impact 16
the time required to perform the inspection and document the results so that repairs can be scheduled 17
and performed. In general, a UDI requires as few as fifteen minutes or up to three hours for a vault. 18
Gaining access can be difficult as some customers either take a while to respond or are suspicious of 19
providing access to their property to SCE personnel. In some instances, when customers are unavailable, 20
13 Replacement of underground structures and shoring is presented in Distribution Infrastructure Replacement.
2014 2015 2016 2017 2018
Underground Detailed Inspections 172,045 150,495 172,172 173,999 161,090Field Investigations
Vaults n/a 462 593 254 321Manholes n/a 110 79 27 62
Total Field Investigations n/a 572 672 281 383Total Inspections 172,045 151,067 172,844 174,280 161,473
Completed UDI Counts
14
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
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SCE personnel will leave a door hanger and return the next day. Some structures are covered with 1
vegetation which requires removal before the inspection can be performed. In other instances, customers 2
have installed hardscaping or other barriers that need to be removed before the inspection can be 3
performed. If these barriers are permanent, SCE will have to work with the property owner to have the 4
obstruction removed to allow for the inspection. 5
Once the inspection is completed, SCE personnel will document 6
the results of the inspection. If a repair is required, a notification will be created, and the inspector will 7
attach four or more pictures of the area or equipment needing repair. 8
These various factors drive the year-over-year variance for UDI as 9
inspectors face varying levels of difficulty in accessing or clearing structures in order to perform the 10
inspection. As described in the following section, this variability is included in the development of the 11
forecast for UDI in the test year. 12
(b) Basis for O&M Cost Forecast 13
The number of UDIs forecast for 2019-2023, shown in Table II-4, 14
is based on the number of inspections due each year, as required by GO 165 and SCE’s DIMP. The 15
number of FIs is based on a forecast failure, or referral rate, of 3.5% for vaults and manholes. 16
Table II-4 Underground Detailed Inspection Forecast
Inspection Count Forecast
As shown in Table II-5, SCE used a five-year average unit rate to 17
develop the cost forecast.14 The unit rate was calculated by dividing the annual recorded costs for each 18
year, 2014-2018, by the total number of inspections completed in each year, and then calculating a five-19
14 Refer to WP SCE-02, Vol. 02, Pt. 1, pp. 26-27 –Distribution Underground Detailed Inspections – 2021.
2019 2020 2021 2022 2023
Underground Detailed Inspections 155,842 167,519 167,111 166,214 173,982Field Investigations
Vaults 280 280 280 280 280Manholes 60 60 60 60 60
Total Field Investigations 340 340 340 340 340Total Inspections 156,182 167,859 167,451 166,554 174,322
Forecast UDI Counts
15
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Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
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year average of the annual unit rates. To develop the labor and non-labor forecasts, a five-year average 1
of recorded costs for labor and non-labor was used. 2
Table II-5 Underground Detailed Inspection Forecast
Unit Rate Forecast
The use of a five-year average for the UDI unit rate is appropriate 3
because it takes into consideration the annual variances that occur in UDI. As described above, the time 4
required to perform an inspection can vary from fifteen minutes to three hours, depending on the 5
complexity, accessibility, and installed equipment. This funding will allow SCE to continue to perform 6
UDI on its underground system as required by the Commission’s GOs and SCE’s DIMP. 7
c) Distribution Preventive and Breakdown Maintenance 8
Distribution Preventive and Breakdown Maintenance is necessary to maintain a 9
safe and reliable distribution system. Distribution maintenance is performed on either a planned basis or 10
an unplanned basis and includes both capital and O&M replacements and repairs. 11
Planned maintenance work is comprised of repairs to SCE’s equipment and 12
structures recorded as Priority 2 and Priority 3 items, primarily driven from inspection activities. These 13
repairs can be performed by inspectors or qualified electrical workers. SCE also refers to planned work 14
as preventive maintenance. 15
Unplanned activities, also referred to as breakdown maintenance, include the 16
repair of SCE equipment and structures that are damaged, compromised, or have failed in service. These 17
items are typically identified as Priority 1 conditions under SCE’s DIMP. Breakdown maintenance is 18
typically performed in response to damage caused by equipment failures, degradation, metallic balloons, 19
squirrels, rodents, birds, or other causes. 20
Under DIMP, inspectors identify and prioritize deteriorated components or 21
conditions found during inspections for follow up repair or replacement. Every item is evaluated based 22
2014 2015 2016 2017 2018 Average PercentLabor 4,321$ 3,345$ 4,273$ 5,930$ 5,945$ 4,763$ 79%Non-Labor 1,109$ 1,610$ 1,816$ 1,084$ 817$ 1,287$ 21%Total 5,431$ 4,955$ 6,089$ 7,014$ 6,762$ 6,050$ 100%
Total Inspections 172,045 151,067 172,844 174,280 161,473Inspection Unit Rate 32$ 33$ 35$ 40$ 42$ 36$
Recorded 2018 Constant $000 5-Year
16
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
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on the specifics for that condition, considering several factors, such as the equipment’s voltage, location, 1
accessibility, or climate. Inspection programs driving these activities include UDI, apparatus 2
inspections, and ODI, described previously. In addition, when field crews observe problems while 3
performing other work or responding to trouble calls, they perform necessary maintenance which also 4
records to this activity. 5
Maintenance activities can include the repair, replacement, or relocation of 6
facilities; replacement of signs and cross-arms; repair or relocation of conduit; repair or replacement of 7
conductor or cable, equipment, or pole fixtures; re-fusing line cutouts; repairing grounds; and replacing 8
transformers. These maintenance activities are performed by electrical crew foremen, linemen, 9
apprentice linemen, groundmen, and contract crews who work for SCE’s Distribution Construction and 10
Maintenance organization. Post-construction, SCE performs quality control inspections to validate that 11
the work meets SCE standards for construction and quality. Finally, field accountants record all the 12
material and cost information, and record the costs as either O&M expenses or capital expenditures. 13
(1) Distribution Preventive and Breakdown O&M Maintenance 14
Recorded and forecast expenses for Distribution Preventive and 15
Breakdown O&M Maintenance are shown in Figure II-7. The forecast for 2019-2021 includes a 16
proposed reduction that will occur with the approval of SCE’s EOI program, as described in detail in the 17
following sections. 18
17
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
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Figure II-7 Distribution Preventive and Breakdown O&M Maintenance Expenses15
Recorded (2014-2018)/Forecast (2019-2021) (Constant 2018 $000)
(a) Work Description and Need for Activity 1
Distribution Preventive and Breakdown O&M Maintenance 2
includes the costs to make repairs to distribution equipment identified through SCE’s DIMP. These 3
repairs follow the Commission’s direction under GOs 95, 128, and 165 for maintenance of distribution 4
assets. 5
(b) Scope and Forecast Analysis 6
(i) Historical Variance Analysis 7
The annual costs vary from year-to-year based on the 8
volume of breakdown and maintenance items found during inspections. In 2018, SCE’s recorded 9
expenses were $13.9 million lower than 2017 due to a one-time, temporary change in maintenance 10
repair scheduling. This temporary change was implemented to accommodate the Enhanced Overhead 11
15 Refer to WP SCE-02, Vol. 02, Pt. 1, pp. 28-34 – O&M detail for Distribution Preventive and Breakdown
O&M Maintenance.
(Continued)
2014 2015 2016 2017 2018 2019 2020 2021
Labor $47,810 $48,299 $50,038 $48,336 $44,442 $41,651 $35,818 $41,481Non-Labor $70,959 $55,828 $49,570 $44,562 $33,772 $49,386 $45,057 $52,540
OtherTotal Expenses $118,770 $104,127 $99,608 $92,898 $78,215 $91,037 $80,875 $94,021
Ratio of Labor to Total 40% 46% 50% 52% 57% 46% 44% 44%
Recorded Forecast
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
2014 2015 2016 2017 2018 2019 2020 2021
Labor Non-Labor Other
18
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
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Inspection (EOI)16 activity. To perform the EOI, SCE reassigned personnel responsible for performing 1
preventive O&M maintenance activities. This resulted in a reduction to the recorded cost for 2018. 2
(ii) Basis for O&M Cost Forecast 3
Distribution Preventive and Breakdown O&M Maintenance 4
costs vary year-to-year based on the required number of preventive and breakdown maintenance items 5
that need to be repaired in each year. The complexity of each repair also contributes to the variance in 6
year-to-year costs. For example, the repair of a missing down-guy shield costs less to repair than 7
replacing a broken cross-arm. 8
SCE forecasts its 2021 test year request using a four-year 9
average of 2014 to 2017 recorded costs. 2018 was not a normal operating year because, as described 10
previously, in the last quarter of 2018, SCE initiated its EOI, which required use of personnel who 11
would normally perform O&M maintenance work. Required maintenance work previously scheduled for 12
completion in 2018 was rescheduled to early 2019. As such, SCE is excluding 2018 recorded costs from 13
the average. In addition to this four-year average, SCE is adding $9 million to the test year to perform 14
the Priority 3 maintenance items required by recent changes to GO 95.17 SCE’s is proposing to reduce 15
this forecast for work that will be performed under the EOI program. To calculate the EOI portion of 16
Distribution Preventive and Breakdown O&M Maintenance performed in HFAs, SCE uses the 17
percentage of this work performed on the overhead system (47%) and the percentage of circuit miles in 18
HFAs (25%).18 SCE then normalizes its forecast for ratemaking purposes for 2021 through 2023. 19
If SCE’s Enhanced Overhead Inspection, as proposed in 20
SCE-04, Volume 5, is not fully funded SCE will need to restore the funding to the four-year recorded 21
average (2014-2017) plus priority 3 maintenance items for both Distribution Preventive and Breakdown 22
O&M Maintenance, as shown in Table II-6. This funding will be necessary to continue to perform 23
required maintenance activities across SCE’s entire distribution grid. 24
16 Please see SCE-04, Vol. 05 – Wildfire Management for a detailed description of SCE’s EOI activity.
17 See D.18-05-042 for the decision to amend Rule 18 of GO 95 requiring Priority 3 maintenance items to be corrected within 60 months, effective June 30, 2019. SCE’s forecast includes a level work plan that starts prior to the first due date to ensure compliance.
18 Refer to WP SCE-02, Vol. 02, Pt. 1, pp. 35-37 –Distribution Preventive and Breakdown O&M Maintenance – 2021.
19
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Table II-6 Distribution Preventive and Breakdown O&M Maintenance
Forecast Calculations for Priority 3 and EOI (Constant 2018 $000)
(2) Distribution Preventive and Breakdown Capital Maintenance 1
The recorded costs for 2014 through 2018 and forecast for 2019 through 2
2023 are shown in Figure II-8. The forecast for 2019-2021 includes a proposed reduction that will occur 3
with the approval of SCE’s EOI program, described in detail in the following sections. 4
2014 2015 2016 2017 2018 Preventive and Breakdown O&M Maintenance 118,770$ 104,127$ 99,608$ 92,898$ 78,215$
2019 2020 2021 2022 2023 Preventive and Breakdown O&M Maintenance 103,828$ 103,828$ 103,828$ 103,828$ 103,828$
Priority 3 Maintenance Items - 3,000 9,000 18,000 27,000 Total Preventive & Breakdown O&M Maintenance 103,828$ 106,828$ 112,828$ 121,828$ 130,828$
Reduction for EOI Performed in HFA (12,791) (25,953) (26,695) (27,807) (28,920) Preventive & Breakdown O&M Maintenance with EOI Funded 91,037$ 80,875$ 86,133$ 94,021$ 101,909$
2021 Normalized 94,021$
Recorded
Forecast
20
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Figure II-8 Distribution Preventive and Breakdown Capital Maintenance19
Multiple CWBS Elements20 Recorded (2014-2018)/Forecast (2019-2023)
(Total Company - Nominal $000)
(a) Program Description and Need for Activity 1
Distribution Preventive and Breakdown Capital Maintenance 2
includes the costs to replace distribution equipment identified through SCE’s DIMP. These replacements 3
follow the Commission’s direction under GOs 95, 128, and 165 for maintenance of distribution assets.4
19 Refer to WP SCE-02, Vol. 02, Pt. 1, pp. 38-41 – capital detail for Distribution Preventive and Breakdown
Capital Maintenance.
20 Distribution Preventive and Breakdown Capital Maintenance includes CWBS Elements CET-PD-BM-BD, CET-PD-BM-EP, CET-PD-CR-IF, CET-PD-IR-EP, CET-PD-IR-NP, CET-PD-IR-PM, AND CET-PD-IR-SB.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Nominal $218,710 $256,177 $277,712 $280,098 $255,748 $280,120 $278,006 $286,850 $295,147 $303,636
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Forecast
21
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(b) Basis for Capital Expenditure Forecast 1
SCE uses a four-year average (2014-2017) to develop the 2019-2
2023 forecast. The annual costs vary from year-to-year based on the volume of preventive and 3
breakdown maintenance items found during inspections, as well as the complexity of the required repair. 4
In the last quarter of 2018, SCE accelerated wildfire mitigation 5
efforts that impacted capital maintenance work performed by both SCE and contractor personnel. Some 6
work previously scheduled to be complete in 2018 was rescheduled to 2019. Since 2018 does not reflect 7
a normal operating year, 2018 was not included in this activity’s forecast. SCE then calculated a 8
reduction to Distribution Preventive and Breakdown Capital Maintenance for work that is forecast to be 9
performed as part of SCE’s proposed EOI program. This reduction is based on two calculations. The 10
first calculates the work performed on the overhead system using a 2014-2017 four-year average, 34%.21 11
The second calculation applies the percentage of SCE’s circuit miles located in HFAs, 25%.22 12
Table II-7 Distribution Preventive and Breakdown Capital Maintenance
Forecast Calculations for EOI (Nominal $000)
If SCE’s Enhanced Overhead Inspection program, as proposed in 13
Exhibit SCE-04, Volume 5, is not fully funded SCE will need to restore the funding to the four-year 14
recorded average (2014-2017) for Distribution Preventive and Breakdown Capital Maintenance, as 15
21 For both O&M and capital Distribution Preventive and Breakdown Maintenance activities, EOI work
performed in HFAs is assumed to impact only overhead equipment. For CWBS Element Remove Idle Facilities, SCE assumed 75% of work in this category is performed on the overhead system.
22 Refer to WP SCE-02, Vol. 02, Pt. 1, pp. 42-43 – Distribution Preventive and Breakdown Capital Maintenance – 2021.
2014 2015 2016 2017 2018 Preventive and Breakdown Capital Maintenance 218,710$ 256,177$ 277,712$ 280,098$ 255,748$
2019 2020 2021 2022 2023 Preventive and Breakdown Capital Maintenance 293,175$ 304,533$ 314,221$ 323,309$ 332,609$
Reduction for EOI Performed in HFA (12,911) (25,953) (26,695) (27,807) (28,920) Preventive & Breakdown Capital Maintenance with EOI Funded 280,264$ 278,579$ 287,526$ 295,502$ 303,689$
Recorded
Forecast
22
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shown in Table II-7. This funding will be necessary to continue to perform required maintenance 1
activities across SCE’s entire distribution grid. 2
D. Other O&M Activities 3
1. Patrolling and Locating Trouble 4
The recorded and forecast expenses for Patrolling and Locating Trouble are shown in 5
Figure II-9. 6
Figure II-9 Patrolling and Locating Trouble O&M Expenses23
Recorded (2014-2018)/Forecast (2019-2021) (Constant 2018 $000)
a) Work Description and Need for Activity 7
Patrolling and Locating Trouble is performed by troublemen, who serve as SCE’s 8
first responders, providing around-the-clock coverage for electrical-service problems resulting from a 9
wide range of events on the distribution system. These employees come from the journeyman lineman 10
23 Refer to WP SCE-02, Vol. 02, Pt. 1, pp. 44-50 – O&M detail for Patrolling and Locating Trouble O&M
Expenses.
2014 2015 2016 2017 2018 2019 2020 2021
Labor $15,837 $17,472 $16,982 $18,187 $18,833 $18,833 $18,833 $18,833Non-Labor $3,433 $3,071 $3,037 $3,324 $3,196 $3,196 $3,196 $3,196
OtherTotal Expenses $19,270 $20,543 $20,019 $21,511 $22,029 $22,029 $22,029 $22,029
Ratio of Labor to Total 82% 85% 85% 85% 85% 85% 85% 85%
Recorded Forecast
$5,000
$10,000
$15,000
$20,000
$25,000
2014 2015 2016 2017 2018 2019 2020 2021
Labor Non-Labor Other
23
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24
ranks and are highly skilled in troubleshooting the electrical grid, switching, and emergency scene 1
control. 2
Troublemen must respond efficiently and safely during emergency situations and 3
in their interactions with customers. SCE’s troublemen respond to incidents such as outages, partial 4
lights, damaged equipment (e.g., downed wires and failed transformers), and voltage fluctuation issues. 5
Troublemen are notified through a Distribution Operations Center (DOC) or a switching center to locate 6
an identified or reported problem and to take expedited action to mitigate the potential impacts of the 7
problem. To do so, dispatched troublemen must first locate the source of the problem. This may be as 8
simple as responding to a location identified by a customer or emergency personnel, or it may require 9
patrolling a circuit, including isolating and testing sections of the circuit to determine the cause of the 10
line relay or loss of power. 11
Once the troubleman has located the source of the problem, corrective action is 12
taken. If possible and safe to do so, the troubleman will act alone and correct the problem without 13
interrupting service to customers. More complex problems may require the troubleman to electrically 14
sectionalize a portion of circuit to isolate the problem, restore service to as many customers as possible, 15
and perform repairs to return the distribution system to safe operating conditions.24 16
To isolate a problem, a troubleman will coordinate with system operators to open 17
switches to isolate a section of the grid or close switches to pick up load on an alternate circuit. Switches 18
may be operated manually by troublemen in the field or, sometimes, remotely by a system operator. In 19
performing a switching procedure to isolate a section of a circuit, the troubleman’s goal is to protect 20
himself, other employees working on the grid, and the public. In doing so, the troubleman can safely 21
restore service to customers. 22
Based on the work necessary to restore power and remediate the problem, the 23
troubleman may not be able to perform the work alone. In these situations, the troubleman will request 24
additional assistance from either another troubleman or a field crew. 25
b) Scope and Forecast Analysis 26
(1) Historical Variance Analysis 27
The labor expenses are the costs for SCE troublemen performing patrols 28
and locating trouble. The non-labor expenses include costs for materials, vehicles, and other related 29
24 Repairs are recorded under Distribution Preventive and Breakdown Maintenance.
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charges. The recorded costs vary slightly year-over-year depending on the volume of trouble calls. At 1
the end of 2016, SCE hired four additional troublemen for its Rural region. The need for these resources 2
was described in SCE’s 2018 GRC.25 This increase in troublemen resources results in the increase in 3
recorded costs for 2017 and 2018. 4
(2) Basis for O&M Cost Forecast 5
SCE proposes 2018 recorded costs as its 2021 test year forecast for 6
Patrolling and Locating Trouble. SCE plans to maintain its current staffing level through the test year 7
period and 2018 recorded includes all costs for this required staffing level. SCE’s staffing level is based 8
on providing a consistent response time to reported outages. The current staffing level will allow SCE to 9
continue to respond to reported outages at the historical levels. Timely response to outages is critical to 10
maintaining the safety and reliability of the electrical grid for customers, employees, and the public. This 11
request will provide SCE with the funding necessary to provide patrolling and locating trouble at current 12
levels. 13
2. Distribution Apparatus Inspections and Maintenance 14
The recorded and forecast expenses for Distribution Apparatus Inspections and 15
Maintenance are shown in Figure II-10. 16
25 See D.16-09-001, SCE-02, Vol. 5.
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Figure II-10 Distribution Apparatus Inspections and Maintenance O&M Expenses26
Recorded (2014-2018)/Forecast (2019-2021) (Constant 2018 $000)
a) Work Description and Need for Activity 1
This activity includes the costs associated with the inspection, testing, and 2
maintenance of overhead and underground distribution apparatus used for remote monitoring and 3
control. Examples of distribution apparatus include capacitors, regulators, network protectors, fault 4
interrupters, and automatic re-closing switches used for line protection and sectionalizing. Both the 5
inspection and resulting maintenance performed by the apparatus crews is included in this activity. 6
Apparatus crews with specialized training in automated equipment perform these inspections, including 7
technical diagnostic testing to ensure proper functioning of the equipment. SCE’s apparatus inspection 8
and maintenance program is designed to support SCE’s commitment to providing a safe and reliable 9
electrical distribution system by maintaining proper functionality and operation of the apparatus 10
equipment. 11
26 Refer to WP SCE-02, Vol. 01, Pt. 2, pp. 51-57 – O&M detail for Distribution Apparatus Inspection and
Maintenance.
2014 2015 2016 2017 2018 2019 2020 2021
Labor $4,300 $4,527 $5,084 $5,260 $5,092 $5,092 $5,092 $5,092Non-Labor $815 $1,056 $787 $616 $605 $605 $605 $605
OtherTotal Expenses $5,115 $5,584 $5,871 $5,876 $5,697 $5,697 $5,697 $5,697
Ratio of Labor to Total 84% 81% 87% 90% 89% 89% 89% 89%
Recorded Forecast
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2014 2015 2016 2017 2018 2019 2020 2021
Labor Non-Labor Other
26
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b) Scope and Forecast Analysis 1
(1) Historical Variance Analysis 2
The recorded costs for Distribution Apparatus Inspection and Maintenance 3
has consistently increased during the historical period. This increase is driven by the installation of more 4
automated distribution apparatus on the system as part of on-going capital programs. As a result of the 5
increase in equipment, SCE has had to perform a larger volume of inspections and a related increase in 6
the maintenance work resulting from these inspections. To address this increase in work, SCE has hired 7
additional apparatus personnel to perform the required inspection and maintenance of the equipment 8
installed on SCE’s system. 9
(2) Basis for O&M Cost Forecast 10
SCE proposes 2018 recorded costs for the 2021 test year forecast for 11
Apparatus Inspection and Maintenance Activities. The costs recorded in 2018 represent SCE’s most 12
accurate estimate of the costs SCE will incur in the future periods in order to adequately inspect and 13
maintain the distribution apparatus installed on SCE’s distribution grid. This funding will provide SCE 14
with the necessary resources to perform required inspection and maintenance activities on its 15
distribution apparatus. 16
E. Distribution Claim 17
1. Capital Forecast 18
The recorded costs for 2014 through 2018 and forecast for 2019 through 2023 are shown 19
in Figure II-3Figure II-11. 20
27
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Figure II-11 Distribution Claim27,28
CWBS Element CET-PD-CL-DC Recorded (2014-2018)/Forecast (2019-2023)
(Total Company - Nominal $000)
2. Program Description and Need for Activity 1
Distribution Claim includes the costs incurred by SCE to repair damage to the 2
distribution system caused by another party. In cases where SCE is able to identify the party responsible 3
for the damage, SCE pursues recovery of the costs to repair the damage. The most common cause of 4
damage to SCE’s system occurs when a vehicle collides with a distribution pole or other above ground 5
equipment. This resulting damage is most often downed wires, poles and pole-mounted equipment, and 6
damaged ground level transformers and equipment. 7
Damages that result in downed wires, poles, and other electrical equipment require 8
immediate response from SCE personnel. This damage to SCE’s equipment is frequently due to 9
vehicular accidents in or adjacent to roadways, sidewalks, businesses, and homes and may pose a public 10
safety hazard. In addition, damaged equipment might lead to customer outages. Often, calls from police 11
or fire departments at the scene of the accident inform SCE of the damage. Timely response is critical to 12
27 Refer to WP SCE-02, Vol. 01, Pt. 2, pp. 58-59 – capital detail for Distribution Claim.
28 Refer to WP SCE-02, Vol. 01, Pt. 2, pp. 60-61 – Distribution Claim – 2021.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Nominal $28,290 $30,823 $37,318 $40,853 $37,299 $38,879 $40,385 $41,670 $42,875 $44,108
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
Forecast
28
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ensuring the hazardous conditions are corrected, power is restored to affected customers, and to identify 1
the party who caused the damage to improve chances of recovering the costs. 2
3. Basis for Capital Expenditure Forecast 3
The costs to repair damages recorded to Distribution Claim vary from year-to-year and 4
the events that drive the costs are random and beyond the control of the utility. SCE uses a five-year 5
average to forecast the test year expenditures for Distribution Claim. This forecast methodology has 6
been proposed in SCE’s previous GRCs and has been adopted by Commission. A five-year average is 7
the most appropriate method to forecast costs for damage claims which are both random and beyond the 8
control of the utility. 9
F. Streetlight Operations, Inspections, Maintenance, and LED Conversions 10
SCE owns and maintains an inventory of streetlights throughout its service territory. Beginning 11
in 2015 SCE offered cities and other agencies the opportunity to purchase streetlights within their 12
jurisdiction.29 To date, SCE has transferred or plans to transfer approximately 220,000 lights to outside 13
agencies. SCE’s current inventory of lights is approximately 640,000 and is projected to be 14
approximately 470,000 once all streetlight transfers are complete. 15
In addition to the transfer of streetlights, SCE is proactively converting current High Pressure 16
Sodium Vapor (HPSV)30 to LED technology as cities and agencies elect to take service under Tariff LS-17
1 Option E. 18
In the following sections, SCE will describe the status of the LS-1 Option E conversions, 19
streetlight sales, and efforts SCE is undertaking in compliance with its settlement agreement with the 20
California Streetlight Association (CALSLA). SCE will next discuss the forecast costs needed to 21
perform this work as well as the costs for the on-going maintenance of the street lighting system. 22
1. Status of Streetlight Sales, LED Conversions, and Smart City Sensors 23
SCE’s Business Customer Division (BCD) is responsible for developing policies and 24
interfacing with customers regarding SCE-owned streetlights. In this role, BCD coordinates streetlight 25
functions throughout SCE, including T&D, Finance, Regulatory Affairs, and Treasurers. BCD’s 26
Streetlight Team focuses on key work areas that impact streetlight customers and helps to implement 27
key technology shifts in the industry. BCD fields significant ad hoc requests in support of account 28
29 Only streetlights taking service under SCE’s LS-1 tariff were eligible for purchase.
30 HPSV is the predominant lighting technology on SCE’s system. Lights eligible for conversion to LED may include other, less common, lighting technologies.
29
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managers, T&D, and Local Public Affairs team members to facilitate analysis, technical data, policy 1
reviews, technology, service requests, and general streetlight information. 2
a) Streetlight Sales to Customers 3
Prior to August 15, 2015, SCE offered LS-1 customers the option of purchasing 4
SCE-owned streetlights located within the customers’ geographic boundaries pursuant to Section 851 of 5
the California Public Utilities Code. The first step in the process for a customer to acquire SCE-owned 6
streetlights was to pay a deposit to offset the cost of SCE’s valuation of the streetlights to be sold. As of 7
June 30, 2016, eighty-two cities had paid the required deposit and were in the streetlight “sales queue.” 8
BCD manages the sales process through valuation, communication, contract development, Commission 9
approval, and asset transition. 10
On March 17, 2016, the Commission approved the sale of approximately 19,500 11
streetlights to the City of Lancaster, the first customer to complete the streetlight acquisition effort with 12
SCE. All streetlights within Lancaster that were available for sale31 are now owned and operated by the 13
City of Lancaster. As of June 1, 2019, forty customers have signed sales agreements with SCE and 14
twenty-five communities have completed the transition of streetlights, now owning and operating 15
streetlights in their communities. Fifteen communities are currently in transition and being completed 16
(the County of Los Angeles agreement is currently being prepared for submittal to the CPUC as an 17
application under Section 851). Forty-five communities received streetlight valuations but did not sign a 18
sales agreement or move forward in the process. The County of Los Angeles will be the final customer 19
to move through the streetlight acquisition process with SCE. 20
In June 2015, SCE notified customers of its intent to cease selling its streetlights 21
to customers who had not submitted a valuation deposit prior to August 15, 2015, the date SCE would 22
close the streetlight sales queue. SCE also placed a time limit for customers to execute the sales 23
agreement following receipt of the valuation. SCE has completed valuations for all participating 24
customers in the acquisition queue and has completed all sales agreements. SCE continues to work with 25
customers to transfer streetlights and expects to complete all in-queue transitions32 by the end of 2020. 26
All transfers of the streetlights to local governments have been approved by the Commission through 27
31 Streetlights installed on distribution or transmission poles are not available for sale. Series streetlights are also
not eligible for purchase due to the configuration of the lighting infrastructure.
32 LA County is purchasing streetlights pending approval of the application to the CPUC under Section 851. Due to the size of transactions, LA County streetlight transition from LS-1 to LS-2 may extend beyond 2020.
30
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Section 851 filings. Newly acquired customer streetlights transition from LS-1 to LS-2B tariffs. The rate 1
transition often takes 90 to 120 days after assets have been paid for and transitioned to customer 2
ownership as SCE undertakes internal rate, billing, and mapping changes to finalize the transaction. 3
SCE expects to sell approximately 225,000 streetlights when the program is 4
completed. The final number is pending confirmation of inventory in communities currently moving 5
through transition as well as the final number that will be available for sale in LA County. 6
b) Assembly Bill (AB) 719 and SCE’s Streetlight Upgrade Efforts 7
On March 30, 2016, SCE filed Advice 3241-E-A, proposing the creation of LS-1 8
Option E. SCE customers who have already received replacements under the LS-1, Option E streetlight 9
replacement program are seeing monthly bill reductions of 76 cents for non-decorative fixtures, based 10
on an example using the most prevalent 100-watt HPSV fixture replacement, depending on the wattage. 11
As expected, there is significant customer demand for conversion from HPSV to the more efficient LED 12
streetlight fixtures. SCE is currently replacing fixtures at a pace of approximately 70,000 streetlights in 13
2019, serving streetlight customers in order through a queue as local government and other streetlight 14
customers sign-up for the Option E offering. 15
SCE expects replacement work will continue through the 2021 GRC cycle at a 16
rate of 50,000 each year with participation in LS-1 Option E tapering off after 2024. The operational and 17
financial implications of these conversions are described in SCE’s request for streetlight capital and SCE 18
respectfully requests continued support and funding to implement LED replacements through the 19
successful LS-1 Option E program at the proposed level. 20
c) Streetlight Sensor and Smart Community Technology 21
In support of customer demand and SCE’s focus on technology and efficiency 22
improvements, SCE is researching and evaluating the implementation of “Smart Streetlight Sensor” 23
technology. SCE is also reviewing significant customer demand to place customer owned attachments 24
on SCE owned (LS-1) and customer owned (LS-2/LS-3) streetlights for “Smart Community” technology 25
which facilitates public safety and public works applications through sensors, cameras, and various 26
monitoring devices. In alignment with customer interest and SCE’s desire to continually improve 27
service, outage response, and the facilitation of future technology applications, SCE is seeking the 28
ability to fund pilot level implementation of smart streetlight sensors. These smart sensors allow for real 29
time information to be relayed when an outage occurs and provide GPS infrastructure location 30
31
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information. Both components will create quicker outage response with significant improvements to 1
location accuracy and overall inventory integrity. 2
SCE currently awaits customer notification of streetlight outages or finds outages 3
during annual patrols. If smart streetlights sensors are fully implemented in the future, this effort could 4
reduce or eliminate the need for annual streetlight patrols to find outages. As part of the pilot, SCE will 5
also investigate the use of smart streetlights sensors to facilitate individual metering of streetlights, 6
which may pave the way for metered rate and dimming opportunities. 7
SCE is currently working to develop, and submit for CPUC approval, a tariff that 8
will facilitate the use of smart community technology on customer owned LS-2 streetlights. In addition 9
to this tariff, SCE is also developing a dimmable-streetlight tariff that will be available for LS-2 10
streetlights. SCE is also reviewing the opportunity to reduce the energy component of LS-1 or LS-2 11
streetlights where smart streetlight sensor technology ramps up and down lighting at sunrise and sunset, 12
potentially positively impacting the energy component of flat metered streetlight rates. 13
2. Streetlight Operations, Inspections, and Maintenance O&M Expenses 14
The recorded and forecast costs for Streetlight Operations, Inspection, and Maintenance 15
are shown in Figure II-12. 16
32
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Figure II-12 Streetlight Operations, Inspections, and Maintenance O&M Expenses33
Recorded (2014-2018)/Forecast (2019-2021) (Constant 2018 $000)
a) Work Description and Need for Activity 1
Streetlight Operations, Inspections, and Maintenance O&M Expenses includes all 2
O&M expenses for SCE’s street lighting system. The specific work and activities included in operations, 3
inspections, and maintenance are described in the following section. 4
Streetlight Operations includes billing, mapping, and records maintenance for all 5
streetlights taking service under an SCE streetlight tariff. This includes streetlights that are owned and 6
maintained by SCE, customer owned streetlights receiving electrical service only, and lighting for 7
outdoor walkways or parking areas. Maintaining accurate records for all streetlights provides SCE with 8
the information necessary to accurately bill customers and to assign maintenance and inspection work to 9
repairmen and electrical crews. These records include information such as city or agency ownership, 10
geographical location, wattage, lighting technology, etc. These records require continual updating to 11
33 Refer to WP SCE-02, Vol. 01, Pt. 2, pp. 62-68 – O&M detail for Streetlight Operations, Inspections and
Maintenance.
2014 2015 2016 2017 2018 2019 2020 2021
Labor $4,619 $3,990 $4,099 $4,905 $4,100 $4,100 $4,100 $4,100Non-Labor $4,125 $3,392 $2,187 $2,256 $2,475 $2,475 $2,475 $2,475
OtherTotal Expenses $8,744 $7,382 $6,286 $7,161 $6,575 $6,575 $6,575 $6,575
Ratio of Labor to Total 53% 54% 65% 68% 62% 62% 62% 62%
Recorded Forecast
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
2014 2015 2016 2017 2018 2019 2020 2021
Labor Non-Labor Other
33
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reflect changes in ownership, additions to the system resulting from new construction, removals from 1
the system, and changes in lighting technology. 2
Streetlight Inspections are performed on an annual basis for urban areas and every 3
two years in rural areas in compliance with GO 95. These inspections are performed at night and 4
identify any streetlights that are not operating. SCE employs a contractor to perform these inspections in 5
the urban areas and SCE employees in the rural areas. Non-operating lights identified through the 6
inspections are repaired by SCE’s streetlight repairmen or by an SCE line crew. 7
Streetlight Maintenance includes the costs to replace burned out bulbs, failed 8
photocells or sensors, and other minor repairs to streetlights. These maintenance activities are identified 9
through routine streetlight inspections and from information reported to SCE through customers and 10
cities. For non-operating streetlights identified through inspections, SCE dispatches streetlight repairmen 11
to make the repairs. Similarly, when SCE is notified by customers or cities of a burned-out light, a light 12
on during the day, a flickering light, or other lighting malfunction, repair personnel are dispatched to 13
make the repair. The costs for these repairs are charged to this activity. 14
b) Scope and Forecast Analysis 15
(1) Historical Variance Analysis 16
The recorded costs in 2015 decreased compared to 2014 as the result of a 17
reorganization which eliminated streetlight repairmen supervisors. In 2016, costs for streetlight system 18
maintenance declined by approximately $1M due to a reduction in the purchase of replacement bulbs 19
and parts for HPSV streetlights as SCE began to convert lights to LED technology. In 2017, labor 20
increased in response to account maintenance required as a result of tariff changes resulting from 21
changes in street lighting technology and ownership. In 2018, labor decreased to previous levels as work 22
stabilized. 23
(2) Basis for O&M Cost Forecast 24
In the short-term, SCE expects that streetlight sales and LED conversions 25
will not result in a decrease in operations and maintenance costs for streetlights. This is primarily due to 26
the duration of the transfer process. While SCE has entered into sales agreements with several cities, 27
SCE must continue to maintain the assets until ownership of the streetlights has been transferred. 28
Likewise, LED conversions have a limited impact on short-term O&M because the average bulb life of 29
an HPSV is between seven and fifteen years. The reduction in maintenance costs for LED lights is 30
34
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35
limited to the bulb replacement because there is no other change to the electrical system serving the 1
streetlights, including the photocell. 2
SCE must continue to maintain asset and billing records on all streetlights 3
taking electrical service under an SCE streetlight tariff. Billing record maintenance is necessary to 4
accurately bill customers for electricity usage. Asset record maintenance is necessary because SCE 5
maintains ownership of the electrical infrastructure serving customer owned lights and relies on these 6
asset records to identify the location of equipment in need of repair or upgrade. As a result, streetlight 7
sales will not reduce the cost for maintaining streetlight records. 8
SCE forecasts test year expenses using 2018 recorded costs. The last 9
recorded year reflects cost reductions achieved through restructuring of the street lighting organization 10
and is necessary to continue to perform streetlight mapping, billing, inspections, and routine and 11
breakdown maintenance on streetlights within SCE’s service territory. 12
3. Streetlight Maintenance and LED Conversions 13
Streetlight Maintenance and LED Conversions recorded costs for 2014 through 2018 and 14
forecast for 2019 through 2023 are shown in Figure II-13. 15
35
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36
Figure II-13 Streetlight Maintenance and LED Conversions
CWBS Element CET-PD-OT-SL34 Recorded (2014-2018)/Forecast (2019-2023)
(Total Company - Nominal $000)
a) Program Description and Need for Activity 1
Streetlights are raised fixtures typically mounted on concrete, wood, composite, 2
or steel poles to illuminate highways, roads, parkways, and sidewalks. The principal streetlight 3
components are illustrated in Figure II-14. SCE owns and maintains approximately 600,000 lights in its 4
service territory. Most streetlights on the system are concrete electroliers with HPSV luminaires; 5
however, since 2016 SCE been converting these lights to LEDs. Most streetlight poles have a single 6
luminaire or lamp, but sometimes an electrolier may have multiple luminaires or lamps and can be 7
served electrically through overhead or underground connections. SCE also owns and maintains outdoor 8
lighting installed in public walkways and parking lots. 9
As LED technology has matured, the cost of LED luminaires has declined, and 10
the expected useful life now exceeds that of HPSV street lighting technology. Driven by the potential for 11
34 Refer to WP SCE-02, Vol. 01, Pt. 2, pp. 69-71 – capital detail for Streetlight Maintenance and LED
Conversions.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Nominal $81,760 $48,518 $28,245 $34,118 $54,833 $52,984 $48,619 $50,342 $52,152 $53,372
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Forecast
36
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37
energy and maintenance savings provided by LED technology, SCE expects customers to continue to 1
elect conversion to LED technology through its LS-1 Option E tariff. 2
Figure II-14 Streetlight Components
Street light capital expenditures include five main activities: (a) steel pole 3
replacements; (b) luminaire replacements; (c) conversion of HPSV to LED streetlights;35 (d) Smart 4
Sensor installation; and (e) minor capital maintenance. Expenditures for these activities are not tracked 5
separately in SCE’s accounting system. 6
(1) Steel Pole Replacement Program 7
For several years, SCE has had a program to replace deteriorated steel 8
streetlight poles with concrete streetlight electroliers. Currently, the inventory of steel poles is 9
approximately 28,000. Most of the steel streetlights were installed in the 1950s and 1960s and have 10
exceeded their useful life. 11
35 Conversions of HPSV to LED are discussed in SCE’s Rate Schedule LS-1E.
37
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38
Typically, steel streetlights deteriorate in three ways: (1) the top of the 1
pole rusts out, (2) holes develop in the base of the pole caused by rust, or (3) the foundation anchor bolts 2
rust and eventually disintegrate. 3
The aging of steel streetlight poles and the continuing corrosion of these 4
assets leads to an ongoing need to replace steel streetlight poles. However, SCE has agreed to the 5
requests made by cities in the streetlight sales queue to defer steel pole replacements in their cities, 6
where possible, to minimize impacts to the sale valuation. Additionally, for cities in the sales queue or 7
that have elected to convert to LED under the LS-1 Option E tariff, SCE will work with these cities to 8
minimize replacing poles that might undergo conversion shortly thereafter. In this GRC, SCE estimates 9
replacing 10,750 steel streetlight poles from 2019 to 2023. 10
(2) Luminaire Replacement 11
SCE owns approximately 570,000 streetlight luminaires and over 24,000 12
area and outdoor walkway lights. From time to time, the luminaires in SCE’s system require 13
replacement. To maintain reliable streetlight service, SCE is requesting capital that will allow for the 14
replacement of 21,500 luminaires during 2019-2023, due to failure and malfunction. The forecast 15
replacement quantity is based on a 2% yearly luminaire failure rate. With pending streetlight sales and 16
on-going LED conversions, SCE’s luminaire replacement efforts will target remaining HPSV and 17
outdoor lighting fixtures. For this GRC request, SCE proposes to minimize like-for-like HPSV luminaire 18
replacement in expectation of new LED technology. HPSV, LPSV, and MH luminaires typically need to 19
be replaced after seven years of service because internal components fail. In prior years, SCE 20
proactively replaced aged fixtures at the end of their service life to minimize an additional repair trip 21
that might result from an old fixture failing shortly after a recent bulb replacement. Due to the 22
anticipated deployment of LED luminaires, SCE plans to minimize proactive fixture replacements of 23
non-LED luminaires in order to minimize situations where a recently installed non-LED luminaire is 24
replaced with an LED luminaire. 25
(3) LED Conversions 26
SCE is proposing to continue LED conversions initiated by AB719 and 27
offered to SCE customers under its LS-1 Option E tariff. SCE proposes spending approximately $115 28
million in 2019-2023 on LED conversions. Based on the forecast unit costs described in the following 29
section, SCE’s proposed capital expenditure would result in 286,300 luminaire conversions in 2019-30
2023. 31
38
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39
(4) Smart Sensors 1
In 2019, SCE expects to pilot 6,000 smart streetlight sensors in one 2
disadvantaged community at a cost of roughly $900,000. These smart sensor installations will be done in 3
concert with the LS-1 Option E LED Conversion program. In 2020, SCE plans to deploy 10,000 smart 4
streetlights sensors in another two to three communities at a cost of $1.5 million (targeting communities 5
closely tied to potential Olympic venues and/or disadvantaged communities). SCE will continue to 6
install smart sensors at the requested rate of $3 million in each of the GRC years, 2021, 2022, and 2023 7
to deploy 20,000 sensors each year. This will bring the total population to between 15 to 20 8
communities (out of more than 200 local governments in the SCE service territory) and 76,000 sensors 9
deployed. 10
SCE will continue to evaluate the deployment, benefits, and effectiveness 11
of the sensors as the installation expands and completes. SCE will utilize the LS-1 Option E team to 12
install and implement the sensors so there will be no additional installation cost associated with the 13
technology pilot and demonstration. 14
(5) Minor Capital Maintenance 15
Streetlight repairmen repair streetlights on a day-to-day basis. When a 16
streetlight repairman encounters problems he cannot fix on his own, the repairman will request the 17
assistance of a qualified electrical crew, which typically includes linemen and other distribution 18
maintenance personnel. These more complicated repairs may require a maintenance outage, significant 19
time on-site, additional manpower, or additional equipment. The most common streetlight problems 20
requiring qualified electrical workers are (1) conductor breakdowns, (2) structural damage to poles, or 21
(3) multiple, in-line streetlight outages. The volume of these repairs is not impacted by LED conversions 22
or streetlight sales. Because SCE has retained ownership of the electrical infrastructure serving customer 23
streetlights, these repairs will remain the responsibility of SCE. Additionally, a portion of this work is 24
related to streetlight systems that are configured in series and served by regulated output (R/O) 25
transformers. 26
39
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40
b) Basis for Capital Expenditure Forecast 1
The forecast for Streetlight Maintenance and LED Conversions36 shown is Figure 2
II-13 includes the costs to perform each of the activities described in section II.F.3.a) above. In Table II-3
8 the cost forecast for each activity is shown. 4
Table II-8 Streetlight Maintenance and LED Conversions
Activity Forecast (Nominal $000)
Table II-9 shows the forecast number of units for each activity and the forecast 5
unit rate in 2018 constant dollars. 6
Table II-9 Streetlight Maintenance and LED Conversions
Activity Forecast Units ($2018 Constant)
(1) Steel Pole Replacements 7
SCE is forecasting to continue replacing steel streetlights. As described 8
previously, these steel streetlights were installed in the 1950s and 1960s and have exceeded their useful 9
life. SCE’s forecast of 10,750 steel streetlight replacements will allow SCE to continue to remove these 10
aged assets from the system and replace them with concrete streetlights. 11
36 Refer to WP SCE-02, Vol. 1, Pt. 2, pp. 72-73 – Streetlight Maintenance and LED Conversions – 2021.
2019 2020 2021 2022 2023Activity
Steel Pole Replacements 16,908$ 13,172$ 18,945$ 19,493$ 20,054$ Fixture Replacements 2,609 1,807 1,492 1,151 789 LED Conversions 29,079 28,609 22,262 22,906 23,565 Smart Sensors 935 1,618 3,339 3,436 3,535 Minor Capital Maintenance 3,453 3,414 4,302 5,154 5,420 Total 52,984$ 48,619$ 50,342$ 52,152$ 53,372$
2019 2020 2021 2022 2023Activity Unit Rate
Steel Pole Replacements 7,400$ 2,200 1,650 2,300 2,300 2,300 Fixture Replacements 335 7,500 5,000 4,000 3,000 2,000 LED Conversions 400 70,000 66,300 50,000 50,000 50,000 Smart Sensors 150 6,000 10,000 20,000 20,000 20,000
40
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41
(2) Fixture Replacements 1
Streetlight fixtures fail at a rate of approximately 0.2% each year. SCE is 2
requesting funding to perform fixture replacements on its forecast of HPSV inventory of LS-1 3
streetlights. Because the new LED fixtures have an expected useful life of twenty years there is no 4
forecast for replacement of these fixtures in SCE’s request. 5
(3) LED Conversions 6
SCE is forecasting to continue to convert LS-1 streetlights to LED under 7
its LS-1 Option E tariff. The proposed forecast will leave less than 75,000 HPSV lights on SCE’s system 8
at the end of 2023. This funding will allow cities to convert to this lower-cost, more energy-efficient 9
lighting technology. 10
(4) Smart Sensors 11
As described in II.F.3.a)(4) SCE is proposing to install a modest number 12
of smart streetlight sensors over the next five years. These smart sensors will be installed on the 13
streetlight fixtures prior to installation resulting in no incremental cost for labor. The cost for the smart 14
sensor includes the cost to monitor the streetlight. This program will provide SCE’s streetlight 15
customers with information they desire regarding outages, electricity usage, location, and technology. 16
Customers will also have more control over their electricity usage through the smart sensor’s ability to 17
decrease or increase lighting intensity. 18
(5) Minor Capital Maintenance 19
SCE is requesting $21.745 million for streetlight maintenance during the 20
years 2019-2023. SCE’s street lighting system, especially its series streetlights, require on-going 21
maintenance to the electrical infrastructure serving streetlights. SCE is responsible for maintaining the 22
infrastructure that serves over 800,000 streetlights within its system, regardless of ownership of the 23
lights. SCE is requesting $16.662 million for 2019-2023 to perform this maintenance on the system. 24
SCE is requesting additional funding of $5.082 million over 2019-2023 to 25
rebuild its series street lighting systems. These systems were designed and constructed using R/O 26
transformers which provide the same level of voltage to each streetlight connected to it. This technology 27
is no longer supported by manufacturers and as a result SCE must rebuild these systems to current 28
standards. 29
41
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42
III. 1
CAPITAL-RELATED EXPENSE & OTHER 2
This BPE includes costs necessary to support SCE’s distribution grid and personnel. These costs 3
are not charged to specific capital or O&M activities because they provide overall support to the entire 4
distribution organization and workforce. This testimony includes Distribution Support Activities, Tools 5
and Work Equipment, Prefabrication, and Distribution Transformers. 6
A. 2018 Decision 7
1. Comparison of Authorized 2018 to Recorded 8
Figure III-15 shows the 2018 request, authorized, and recorded costs for O&M activities 9
included in this chapter. 10
42
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43
Figure III-15 Capital Related Expense & Other O&M Expenses37
Comparison of 2018 Authorized to Recorded (Total Company – Nominal $000)
Distribution Support Activities was $2.522 million above authorized in 2018 due to 1
SCE’s Electric Asset Record Accuracy (EARA) program focused on data validation of GIS equipment 2
data used in the inspection, maintenance, repair, and construction of distribution assets. 3
Figure III-16 shows the 2018 request, authorized, and recorded costs for O&M activities 4
included in this chapter. 5
37 Refer to WP SCE-07, Vol. 01 – Authorized to Recorded.
$15,759.2 $15,655.1
$18,176.9 $2,522
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2018 Request 2018 Authorized Distribution SupportActivities
2018 Recorded
Distribution Support Activities
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Figure III-16 Capital Related Expense & Other Capital38
Comparison of 2018 Authorized to Recorded (Total Company – Nominal $000)
Distribution Transformers was $9.396 million below authorized in 2018 due to lower 1
spend in capital activities requiring transformers. Prefabrication was over authorized by $2.230 million 2
due to increase in work requiring pre-assembling of materials. 3
B. O&M Forecast 4
1. Distribution Support Activities 5
The recorded and forecast expenses for Distribution Support Activities are shown in 6
Table III-10. 7
38 Refer to WP SCE-07, Vol. 01 – Authorized to Recorded.
($1,632)
($9,396 )
$2,230
$121,469 $115,653
$106,856
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2018 Request 2018 Authorized Tools and WorkEquipment
Transformers Prefabrication 2018 Recorded
Tools and Work Equipment Transformers Prefabrication
44
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45
Table III-10 Distribution Support Activities O&M Expenses39
Recorded (2014-2018)/Forecast (2019-2021) (Constant 2018 $000)
a) Work Description and Need for Activity 1
Distribution Support Activities includes work activities that are necessary to 2
support SCE’s construction crews working on the distribution system. These costs are relatively varied 3
but all are more efficiently charged to expense rather than allocating to all work activities. These costs 4
include: Information Technology (IT) chargebacks; Field Accounting Organization (FAO) O&M 5
Activities; Distribution Analytics; Stand-by Time; Underground Civil Inspection O&M Activities; Real 6
Properties (RP) O&M Activities; Mapping & Spatial Data Analytics; Informational Meetings, and the 7
Reliability Operations Center (ROC). Table III-11 shows SCE’s test year request for each activity 8
includes in Distribution Support Activities. 9
39 Refer to WP SCE-02, Vol. 01, Pt. 2, pp. 74-80 – O&M detail for Distribution Support Activities.
2014 2015 2016 2017 2018 2019 2020 2021Labor $8,834 $7,202 $7,326 $8,122 $9,054 $9,228 $8,097 $8,097
Non-Labor $12,997 $5,756 $7,221 $10,044 $9,102 $6,892 $3,356 $3,356Other $10 $20
Total Expenses $21,831 $12,958 $14,546 $18,176 $18,177 $16,119 $11,453 $11,453
Ratio of Labor to Total 40% 56% 50% 45% 50% 57% 71% 71%
Recorded Forecast
$5,000
$10,000
$15,000
$20,000
$25,000
2014 2015 2016 2017 2018 2019 2020 2021
Labor Non-Labor Other
45
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Table III-11 Distribution Support Activities40
2021 Test Year Request (Constant 2018 $000)
(1) Information Technology (IT) Chargebacks 1
Information Technology (IT) Chargebacks include the costs incurred by 2
the Distribution Business Line for various communication equipment and usage charges. The equipment 3
and usage charges include smart phones, SCE internal landline service, computer and computer access 4
charges, wireless charges, and laptop connectivity charges. These charges are “charged back” to the 5
Distribution Business Line by SCE’s Information Technology organization. These communication costs 6
are necessary for field and office employees to effectively communicate and access on-line data 7
necessary for performing their daily work. 8
(2) Field Accounting Organization (FAO) O&M Activities 9
The Field Accounting Organization (FAO) provides accounting support to 10
distribution field crews. FAO personnel primarily support capital work order processing, but also spend 11
a portion of their time performing O&M activities, such as timesheet entries on behalf of field crews, 12
ordering and stocking construction supplies and tools, and other administrative duties. The O&M 13
activities performed by FAO personnel are necessary to provide accurate timekeeping for construction 14
personnel and to maintain supply and tool inventories for SCE’s field crews. 15
40 Refer to SCE-02, Vol. 01, Pt. 2, pp. 81-82 – Distribution Support Activities – 2021.
Activity Name2021
Request
Information Technology (IT) Chargebacks 1,270$ Field Account Organization (FAO) O&M Activities 757$ Distribution Analytics 180$ Stand-By Time 1,480$ Underground Civil Inspection O&M Activities 390$ Real Properties (RP) O&M Activities 119$ Mapping & Spatial Data Analytics 1,524$ Informational Meetings 3,242$ Reliability Outage Center (ROC) 2,493$ Distribution Support Activities Total 11,453$
46
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(3) Distribution Analytics 1
SCE’s Distribution Analytics group performs data analysis on information 2
collected during planned and unplanned inspections and maintenance activities. This analysis is used to 3
identify trends or patterns in equipment behavior and to develop predictive modeling to assist in the 4
development of more effective equipment maintenance practices. This activity allows SCE to 5
incorporate data modeling of distribution equipment to assist in the identification and development of 6
improved maintenance practices. 7
(4) Stand-By Time 8
Stand-By Time is distribution field crew labor costs incurred when crews 9
are held at the end of a workday in anticipation of potential after-hours emergency work. This occurs 10
when SCE anticipates increased resource requirements due to an approaching storm or when troublemen 11
are responding to emergencies that may require distribution field crews to make repairs or restore 12
service. In these circumstances, crews “stand-by” in the service center until work is assigned or it is 13
determined that their response will not be required. Holding crews at the end of their shift is more cost 14
effective than releasing crews to go home and then calling them back for the emergency work. 15
(5) Underground Civil Inspection O&M Activities 16
Underground civil inspectors are responsible for inspecting underground 17
duct installations prior to the installation of electrical cable and equipment. This underground duct is 18
installed by applicants and deeded to SCE upon completion. Underground civil inspectors charge their 19
labor to the capital project when performing inspections. When the underground civil inspectors are 20
reviewing maps, schematics, designs, construction standards, and performing other administrative duties 21
their labor is charged to expense. The Underground Civil Inspection O&M Activities are necessary for 22
SCE to perform the inspection of all civil work installed on the electric system prior to energization to 23
ensure the construction meets SCE’s design requirements and standards. 24
(6) Real Properties O&M Activities 25
SCE’s Real Properties Organization is responsible for obtaining and 26
maintaining permits, easements, rights-of way, and purchases of land where SCE places its assets and 27
lines. Real Properties O&M Activities includes the costs to review existing land rights to maintain 28
compliance and review requests from external parties to use SCE’s land. The costs for Real Properties 29
O&M Activities includes document procurement costs, recording fees, and other costs associated with 30
the acquisition and maintenance of land rights. 31
47
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(7) Mapping & Spatial Data Analytics 1
Mapping & Spatial Data Analytics includes the costs required to maintain 2
SCE asset records in Geographical Information System (GIS) format. Maintaining accurate asset data is 3
critical to the safety of SCE personnel and the public. The GIS data provides information to field 4
personnel which allows them to identify the source of electricity for each piece of electrical equipment 5
in order to safely energize or de-energize sections of SCE’s distribution grid to perform construction, 6
maintenance, or other types of work on the system while minimizing the frequency and duration of 7
customer interruptions. Maps and spatial data are also used to identify line sections and customers 8
affected by planned and unplanned outages for outage reporting required by the CPUC. 9
For SCE crews to work safely and to operate the distribution grid, maps 10
and spatial data must be updated accurately and timely whenever a change is made to the grid. To 11
maintain mapping and spatial data accuracy, SCE personnel work closely with SCE’s distribution and 12
substation construction and maintenance organizations and SCE’s engineering personnel to update maps 13
following structure and equipment replacements, the addition of new equipment, and the creation of new 14
circuits. Depending on the complexity of the system changes, updates can take a few minutes of work to 15
multiple hours in the most complex of instances. 16
SCE’s mapping and spatial data allows SCE to “overlay” information such 17
as high fire areas, schools, roadways, or parks to identify equipment located in or near these areas. This 18
spatial data allows SCE personnel to visually identify structures near or in specific areas or spaces. 19
Having accurate and GIS based structure and equipment data provides SCE with information to quickly 20
identify and target specific assets based on their location on the system and relative to other landmarks. 21
Maps and spatial data are also integral in SCE’s inspection and maintenance programs, providing the 22
location of each piece of equipment or structure requiring an inspection or maintenance. 23
(8) Informational Meetings 24
SCE must share information with employees in a timely manner. The 25
majority of employees in T&D’s Distribution Organization are represented employees who perform 26
their work outside of an office setting. These field employees are not issued a company computer and do 27
not have ready access to electronic company communication. Informational meetings are held on both a 28
periodic and an ad hoc basis to share information with these field employees. Periodic meetings are held 29
to share information about SCE or T&D, such as goals, performance, or employee concerns. Ad hoc 30
meetings are held as various employee, work location, organizational unit, or company issues arise. Ad 31
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49
hoc meetings are held to cover information such as new or updated company policies, procedures, and 1
programs; new or updated governmental regulations; proper use of existing tools; and the introduction of 2
new tools and work methods. 3
(9) Reliability Outage Center (ROC) 4
In 2018, SCE formed the Reliability Operations Center (ROC) to pursue 5
the use of data science and advanced analytics to enhance trouble shooting of the distribution grid and to 6
improve safety, reliability, and customer experience. The ROC develops new diagnostics to understand 7
grid conditions and to support real-time operations using situational awareness, remote diagnostics, and 8
data-driven decision making. The ROC collaborates with substation operations, distribution, and 9
engineering to provide real-time troubleshooting and analytical support.41 The ROC is continuously 10
staffed to provide support at all hours. 11
This work is essential to reducing hazardous conditions for the public and 12
improving reliability of the distribution grid through more rapid response to outages. ROC personnel use 13
smart meter and other smart device data to analyze the distribution grid. This data has been used to 14
develop machine-learning applications that speed-up and improve decision making. An example of an 15
application developed by ROC is the “meter alarming downed energized conductor” algorithm which 16
has successfully demonstrated the capability of detecting up to 40% of energized wire-downs within 17
minutes of occurrence. The successful implementation of this type of analysis will enable SCE to safely 18
de-energize a circuit and deploy field crews to perform restoration. This algorithm is continuously 19
monitoring circuits for this condition. The ROC also uses its “early damage detection” algorithm to 20
detect transformers on the verge of failure. This algorithm allows SCE to target transformer 21
replacements to avoid an in-service failure and reduce the impact to customers. 22
b) Scope and Forecast Analysis 23
(1) Historical Variance Analysis 24
The recorded costs in Distribution Support Activities decreased from 2014 25
to 2015 by approximately $8M due to a re-organization. This re-organization moved T&D’s Business 26
Planning & Technology Integration (BPTI) organization to IT. From 2015 to 2016 costs increased by 27
approximately $1M as SCE began its Electric Asset Record Accuracy (EARA) project at the end of 28
41 A portion of the SmartConnect Operations Center (SOC) was moved to the ROC in 2018 during an internal
reorganization. See SCE-02, Vol. 1-Meter Activities for more detail.
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2016. In 2017, costs increased again by approximately $7M as work continued on EARA. Costs in 2018 1
declined by approximately $1M due to a reduction in IT Chargebacks. 2
(2) Basis for O&M Cost Forecast 3
The test year forecast for Mapping & Spatial Data Analytics is $1.524 4
million. This is $6.723 million lower than 2018 recorded. The funding is necessary to continue to 5
maintain the data in SCE’s GIS database to provide accurate information on the location of all assets. 6
SCE’s test year forecast for all other Distribution Support Activities is last 7
year recorded. SCE expects costs in these areas to remain constant over the next five years and 2018 8
recorded amounts will be sufficient to provide the same level of support to construction and field 9
personnel. 10
C. Capital Expenditures 11
1. Tools and Work Equipment 12
The recorded costs for 2014 through 2018 and forecast for 2019 through 2023 are shown 13
in Figure III-17. 14
50
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Figure III-17 Distribution Tools and Work Equipment42
Multiple CWBS Elements43 Recorded (2014-2018)/Forecast (2019-2023)
(Total Company - Nominal $000)
a) Program Description and Need for Activity 1
This capital category includes the cost to purchase portable tools and specialized 2
test equipment used by distribution personnel when performing work on SCE’s distribution grid. These 3
expenditures are for tools or equipment costing more than $1,000 each: examples include electric, 4
pneumatic and hydraulic power tools; electric generators for use by SCE personnel when performing 5
work on the distribution grid; cable pulling equipment; impulse test sets; power system analyzers; 6
vibration analysis data packs; and volt meters. 7
The tools and equipment are required for SCE to complete the work on the grid in 8
the most safe, reliable and efficient manner possible. These tools and equipment are important for the 9
successful execution of all current and future work on the grid. As tools and work equipment wear-out 10
42 Refer to WP SCE-02, Vol. 01, Pt. 2, pp. 83-86 – capital detail for Distribution Tools and Work Equipment.
43 Tools and Work Equipment includes CWBS Elements CCS-00-SE-CO, CET-ET-MS-SE, CET-OT-OT-SD, CET-PD-OT-DL, CET-PD-MS-SE, and CET-PD-OT-DT.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Nominal $5,484 $3,789 $3,970 $3,497 $3,256 $3,325 $3,376 $3,430 $3,483 $3,546
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Forecast
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or break and need to be replaced, it is necessary to purchase new or refurbish the existing equipment to 1
keep SCE’s personnel properly equipped. 2
b) Basis for Capital Expenditure Forecast 3
Tools and work equipment expenditures have varied during the 2014-2018 4
historical period. This variation is driven by the volume of tools and work equipment purchased for new 5
work methods or new construction methods. It is also driven by the replacement and refurbishment of 6
existing tools and equipment due to wear and tear. Because spending from 2014 to 2018 has fluctuated, 7
but has also followed a downward trend, SCE proposes 2018 last year recorded as the forecast for Tools 8
and Work Equipment for the period 2019-2023. Last year recorded will provide SCE with the funding 9
necessary to keep crews equipped to safely and effectively perform work on the system. 10
2. Prefabrication 11
Prefabrication includes costs for SCE’s Distribution Pole Loading Program as well as the 12
Prefabrication costs for all other capital work performed on the distribution grid. The recorded costs for 13
2014 through 2018 and forecast costs for 2019 through 2023 are shown in Table III-12. 14
52
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Table III-12 Prefabrication44
CWBS Element CET-PD-OT-PF Recorded (2014-2018)/Forecast (2019-2023)
(Total Company - Nominal $000)
a) Program Description and Need for Activity 1
Each of SCE’s 34 district service centers has a prefabrication operation 2
responsible for staging material for the construction crews, assembling prepackaged kits, and properly 3
disposing of materials removed from jobsites. 4
Staging material involves receiving shipments from SCE or manufacturer 5
warehouses, performing material validation, and placing the delivered items in storage bays until the 6
material is loaded onto the construction crews’ trucks on the day of the job. Tracking shipments and 7
ordering materials for unplanned jobs is also one of the responsibilities of the prefabrication 8
organization. 9
44 Refer to WP SCE-02, Vol. 1, Pt. 2, pp. 87-89 – Capital detail for Prefabrication.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Nominal $12,895 $13,692 $13,659 $15,183 $16,789 $18,946 $18,843 $22,398 $23,046 $23,709
$5,000
$10,000
$15,000
$20,000
$25,000
Forecast
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Assembling kits is the process of gathering construction materials maintained in 1
inventory in the district for construction or maintenance jobs. This process also includes assembling 2
items into a product installed as a single unit. For example, rather than taking three individual 3
transformers to a jobsite and installing them one at a time, the prefabrication group will mount them on a 4
bracket and perform the wiring at the service center. Assembling the material in the service center yard 5
is safer and more efficient than performing the work at the jobsite where there may not be adequate 6
space, specialized tools, or easy access to extra material. By pre-assembling the transformer bank in the 7
yard, the crew then can install the complete “bank” of three transformers as one unit at one time. 8
Properly disposing of removed materials is critical to the electrical construction 9
process. SCE routinely remove many items installed decades ago and which have various requirements 10
related to proper disposal. The prefabrication employees are the service center experts in the 11
environmental compliance processes required to safely dispose of and salvage electrical waste. 12
Prefabrication activities provide distribution crews with the materials needed for 13
daily construction or maintenance work. Rather than having each crew spend time at the warehouse 14
every day trying to gather the equipment and parts needed to execute the work, prefabrication 15
streamlines this for them. This allows SCE to use a less expensive resource to manage and stage 16
materials while using qualified electrical workers to construct and maintain the system. The immediate 17
and long-term impact of eliminating prefabrication would be a reduction in construction and 18
maintenance work completed as qualified electrical workers would perform the prefabrication activities. 19
b) Basis for Capital Expenditure Forecast45 20
Expenditures for Prefabrication support the work performed by distribution crews 21
based out of SCE’s service centers. For Distribution Pole Loading Program Prefabrication SCE is 22
proposing to use 2.83% of the forecast for Distribution Pole Loading Program Replacement program. 23
For non-PLP Prefabrication costs, SCE is proposing last year recorded as the forecast. This request will 24
provide the necessary funding to continue to provide material and assembly support to SCE’s 25
distribution crews. This funding will allow SCE to continue to utilize a lower cost resource to manage 26
inventory and material while allowing SCE’s qualified electrical workers to perform construction and 27
maintenance work on the distribution grid. 28
45 Refer to WP SCE-02, Vol. 01, Pt. 2, pp. 90-91 – Prefabrication – 2021.
54
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3. Distribution Transformers 1
The recorded costs for 2014 through 2018 and forecast for 2019 through 2023 are shown 2
in Figure III-18. This activity includes three sub-activities: (1) transformers for routine, on-going 3
programs; (2) transformers installed in concert with the PLP; and (3) transformers installed as part of the 4
Wildfire Covered Conductor Program (WCCP). 5
Figure III-18 Distribution Transformers Capital Expenditure Summary46
WBS Element CET-PD-OT-TR47 Recorded 2014-2018 / Forecast 2019-2023
(Total Company - Nominal $000)
a) Program Description and Need for Activity 6
T&D capitalizes distribution transformers rated less than 500kVA at the time of 7
purchase.48 SCE installs and removes a large volume of transformers on a regular basis. The work 8
performed in many of SCE’s distribution capital programs require the installation or replacement of 9
transformers. These programs include, for example, new service connections, distribution preventive 10
46 Refer to WP SCE-02, Vol. 01, Pt. 2, pp. 92-94 – Capital detail for Distribution Transformers.
47 Distribution Transformers includes CWBS Elements CET-PD-OT-TR and CET-PD-OT-TR-PL.
48 Code of Federal Regulations (CFR) 18.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Nominal $83,562 $92,355 $91,360 $103,298 $86,811 $94,606 $94,460 $100,136 $103,644 $106,625
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Forecast
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and breakdown maintenance, and claims. These transformer purchases provide an inventory which 1
allows SCE to have the necessary equipment available to perform construction work and to replace 2
failed or deteriorated transformers. 3
For example, SCE replaces distribution transformers when they fail in service, or 4
when they show deterioration based on inspections or other fieldwork. Deterioration includes leaks, 5
corrosion, and damage caused by vehicle collisions or acts of nature. When SCE replaces a pole or 6
conductor, it may be cost-effective to replace the attached transformer at the same time, depending on 7
the condition of the transformer. 8
Similarly, during new construction to serve new customers, or when converting 9
overhead lines to underground, distribution transformer installations accompany the installation of poles, 10
cables, and underground structures. 11
In addition to the material cost for the transformer, this capital activity includes 12
associated costs such as waste removal, material retirement/cleanup, material testing, and transformer 13
coatings. The labor to install and remove the transformer from SCE’s system is charged to the capital 14
program for the specific work activity. 15
b) Basis for Capital Expenditure Forecast 16
Figure III-18 shows the forecast expenditure summary for the 2019-2023 period 17
for purchasing transformers to support distribution capital work. As explained previously, transformer 18
purchases are dependent on the specific type of distribution capital work being performed. Based on data 19
collected from completed work orders from 2014-2018, SCE identified the distribution activities that 20
required either the installation or replacement of a transformer less than 500kVA. SCE used this work 21
order data to calculate the number of transformers installed or replaced by each distribution activity 22
type.49 23
To develop the transformer forecast for each activity, SCE used the forecast 24
capital expenditures for each work activity and the total count of transformers for the same activity. The 25
transformer acquisition cost multiplied by the total count of transformers for each activity and each year 26
for 2019-2023 provide the total transformer expenditure forecasts. 27
An example for the Residential New Service Connections is shown in Table III-28
13. Using the data from completed work orders, SCE calculated the need for one transformer for every 29
49 Refer to WP SCE-02, Vol. 01, pp. 95-98 – Distribution Transformers – 2021.
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$48,000 spent in Residential New Service Connections. The cost of acquiring transformers for this 1
activity is approximately $3,220 per unit. 2
Table III-13 Transformer Forecast for Residential New Service Connections
Forecast 2019-2023 (Total Company - Constant 2018 $000)
In this example, the forecast count of transformers per year is calculated by 3
dividing the capital expenditure forecast for Residential New Service Connections for 2019-2023 by the 4
average spend per transformer. The total expenditures for transformers in support of Residential New 5
Service Connections is the quantity of transformers forecast multiplied by the total unit cost of the 6
transformer as shown above. 7
SCE forecasts the total cost for transformer purchases needed to perform 8
replacements and installations for all activities based on the transformer quantify forecasts and the 9
transformer unit cost for each activity. As shown in Figure III-18, SCE forecasts the annual expenditures 10
to range from $99.4 million and $131.1 million between 2019 and 2023 in nominal dollars. The increase 11
in forecast is primarily due to increase in work volumes such as Distribution Grid Inspections and 12
Maintenance discussed earlier in this exhibit, System Augmentation New Service Connections discussed 13
in SCE-02, Volume 4, and Transportation Electrification - Charge Ready Program.50 14
SCE’s proposal for Distribution Transformers reflects the reductions to 15
Distribution Preventive and Breakdown Capital Maintenance described in II.C.2.c)(2)(b) above. If 16
SCE’s Enhanced Overhead Inspection program, as proposed in Exhibit SCE-04, Volume 5, is not fully 17
funded SCE will need to restore the funding for transformers used in Distribution Preventive and 18
Breakdown Maintenance as shown in Table III-14. 19
50 SCE is not seeking recovery of Transportation Electrification - Charge Ready Program in the 2021 General
Rate Case, however, this program utilizes distribution transformers as part of the program's operations.
Activity Forecast ($000) - Constant 2018 Transformer Unit ForecastD Transformer 580 Program Forecast ($000) -
Constant 2018
Work Activity WBS
Activity Spend Per Transformer
($000)Price Per
Transformer 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Residential New Service Connections
CET-PD-NS-RS 48$ 3,223$ 123,485$ 127,615$ 134,567$ 142,091$ 141,237$ 2,564 2,649 2,794 2,950 2,932 8,261$ 8,537$ 9,002$ 9,506$ 9,449$
57
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Table III-14 Transformer Requirements for
Distribution Preventive and Breakdown Capital Maintenance Forecast Calculations for EOI51
(Nominal $000)
For Distribution Pole Loading Program transformers SCE is proposing to use 1
4.17%52 of the forecast for Distribution Pole Loading Program Replacement program to forecast PLP 2
transformers.53 3
c) Wildfire Covered Conductor Program (WCCP) Transformers 4
The forecast for transformers to support SCE’s WCCP is shown in Figure III-19 5
and described in SCE-04, Vol. 5. These transformers will be replaced in concert with the installation of 6
covered conductor in SCE’s HFAs. SCE currently replaces distribution transformers across its grid due 7
to failures or near failures. To develop the forecast for WCCP Transformers, SCE calculated the average 8
failure rate for transformers across the SCE system and then applied this percentage to the transformers 9
in the HFA. Next, SCE calculated the forecast of transformers to be replaced in the HFA due to failures 10
or near-failures. This forecast was removed from the total transformer forecast for WCCP Transformers 11
to eliminate the duplication of transformers in both the Distribution Preventive and Breakdown 12
Maintenance and WCCP forecasts.54 13
51 Refer to WP SCE-02, Vol. 1, Pt. 2, pp. 99-100 – Distribution Preventive and Breakdown Maintenance
Transformers – 2021.
52 See SCE Preliminary Statement, Part J.
53 Refer to WP SCE-02, Vol. 1, Pt. 2, pp. 101 - 102 – PLP Transformers – 2021.
54 Refer to WP SCE-0w, Vol. 1, Pt. 2, pp. 103-105 – Wildfire Covered Conductor Program Transformers – 2021.
2019 2020 2021 2022 2023Transformers Required for Preventive & Breakdown Maintenance 43,544$ 43,215$ 44,590$ 45,880$ 47,199$
Transformer Reduction for EOI Performed in HFA (1,969) (5,893) (7,692) (9,471) (11,381) Transformers Required With EOI Funded 41,575$ 37,322$ 36,898$ 36,409$ 35,818$
Forecast
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Figure III-19 Wildfire Covered Conductor Program Transformers
WBS Element CET-PD-OT-TR-WF55 Recorded 2014-2018 / Forecast 2019-2023
(Total Company - Nominal $000)
1
55 Refer to WP SCE-02, Vol. 1, Pt. 2, pp. 106-107 – Capital detail for Wildfire Covered Conductor Programs
Transformers.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Nominal $1,131 $3,784 $5,107 $5,582 $6,303
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Forecast
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IV. 1
SAFETY AND RELIABILITY INVESTMENT INCENTIVE MECHANISM (SRIIM) 2
A. Background 3
The SRIIM is a mechanism which the Commission has previously adopted to incentivize SCE to 4
spend authorized dollars on programs that support safety and reliability, and to maintain a workforce of 5
field employees to support the safe and reliable operation of the electric grid. SCE has implemented 6
some form of SRIIM since the early 2000s (although it was not always called “SRIIM”). While this 7
mechanism was initially focused on reliability, the Commission expanded its scope to also include 8
safety. SRIIM replaced previous reliability mechanisms that had focused solely on reliability metrics. 9
Those reliability metrics were based on indicators largely beyond the control of the utility in the short 10
run and did not provide incentives for long-term investment in grid reliability. 11
SRIIM is composed of two components: 12
(1) Hiring field personnel that directly work on projects and programs related to safety and 13
reliability; and 14
(2) Capital investment on projects and programs for safety and reliability. 15
In SCE’s 2018 GRC, the Commission adopted a modified version of SCE’s proposal for SRIIM, 16
which implemented certain changes to the SRIIM as compared to the 2015 GRC. These changes were to 17
both the workforce and capital investment components of SRIIM. 18
1. Workforce 19
The Commission adopted the following changes to the workforce component of SRIIM: 20
(1) Added troubleman trainer and operator trainee classifications to the workforce 21
headcount targets; 22
(2) Adopted SCE’s proposed headcount target of 2,375, subject to adjustment by one-half 23
the percentage change in requested versus authorized T&D capital in the 2018 GRC; and 24
(3) Adopted method to measure headcount as an average of the last quarter of 2020. 25
2. Capital Investments 26
The Commission also adopted revisions to the capital investment component of SRIIM, 27
including: 28
60
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(1) Added SCE’s Overhead Conductor Program (OCP), 4 kilovolt (kV) Overload-Driven 1
Cutovers, and 4 kV Substation Elimination programs to the previously established SRIIM;56 2
(2) Established SRIIM capital expenditure targets based on the level of capital 3
expenditures that the Commission authorized in the 2018 decision; and 4
(3) Adopted a provision that any spending occurring in the High Priority categories57 in 5
excess of authorized amounts can be used to achieve the targets established for the SRIIM capital 6
categories (only when certain conditions are met). 7
B. 2021 SRIIM Proposal 8
As a matter of principle, safety and reliability of the electric system guide SCE’s resource 9
investments and operations. A strong and capable workforce of field employees is required to make this 10
happen. Accordingly, SCE plans to continue to hire front-line employees and grow its field workforce so 11
that SCE can perform the necessary work to maintain a safe and reliable power grid. 12
SCE recommends the Commission continue the SRIIM as adopted in SCE’s 2018 GRC, with 13
certain modifications. For the 2021 GRC, SCE proposes the following changes to the workforce and 14
capital investment components of the SRIIM: 15
1. Workforce 16
SCE proposes changes to the workforce categories, headcount target, and measurement 17
of headcount as part of this GRC. 18
a) Workforce Categories 19
SCE proposes to maintain the SRIIM workforce classifications adopted by the 20
Commission in SCE’s 2018 GRC, with two exceptions: (1) Since SCE does not have the positions of 21
Distribution Apprentice Groundman or Transmission Apprentice Groundman, SCE proposes to remove 22
these positions from the workforce categories. (2) SCE proposes to add two job classifications to the 23
headcount component: Distribution Apparatus Technician and Distribution Apparatus Foreman. In 24
summary, SCE proposes to continue the SRIIM headcount mechanism with the job classifications 25
identified in Table IV-15 below. 26
56 These programs adopted in the 2015 GRC Decision include SCE’s Worst Circuit Rehabilitation, Cable Life
Extension, Cable-in-Conduit Replacement, Circuit Breaker Replacement, Substation Transformer Replacement, Underground Switch Replacement, and Underground Structure Replacement programs.
57 High Priority categories include Customer Growth, Storm, and Claims programs.
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Table IV-15 Proposed SRIIM Headcount Classifications
b) Headcount Target 1
SCE’s frontline workforce is critical to providing safe and reliable service to 2
customers. SCE proposes to continue the SRIIM headcount target with minor adjustments to the existing 3
mechanism. SCE proposes to increase the SRIIM headcount target in this GRC above previously 4
adopted levels to 2,465 workers. This represents a larger increase than what was requested in the 2018 5
GRC,58 commensurate with the necessary growth required to meet the safety and reliability objectives 6
presented in this GRC. These positions would be composed of workers holding the classifications 7
identified in Table IV-15. If SCE fails to achieve the headcount target, SCE agrees to refund customers 8
in the same manner as approved in the 2018 SRIIM (i.e. SCE would refund $20,000 for each employee 9
shortfall relative to the target, up to 50 employees short, and $80,000 per employee thereafter). As the 10
Commission adopted in the 2018 GRC, SCE proposes to continue with the necessary mechanism to 11
adjust the target headcount level by one-half the percentage change in requested versus authorized T&D 12
capital in the 2021 GRC.59 13
58 In SCE-02, Vol. 01 of its 2018 GRC, SCE requested an initial SRIIM headcount target of 2,375. In D.19-05-
020, the Commission adopted this level, along with a mechanism to adjust this level according to authorized capital spending. This resulted in an adjusted-authorized SRIIM target of 2,175 workers.
59 SCE also notes that achieving the headcount target is contingent upon receiving full funding for T&D Training and Delivery O&M costs, as presented in SCE-06, Vol. 3, Pt. 1.
62
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63
c) Measurement 1
The headcount in any job classification can vary with short notice. Backfilling 2
with qualified candidates takes time, especially in the current labor market. Therefore, SCE proposes to 3
modify the headcount measurement mechanism. The current mechanism determines SCE’s SRIIM 4
headcount based on an average over the last quarter of 2020 for the 2018 GRC cycle. SCE proposes that 5
the measurement be modified to account for achieving the headcount level at some point in the last two 6
quarters of the GRC cycle. Specifically, if SCE’s SRIIM headcount exceeds the target level at any time 7
during the period of July 1, 2023 through December 31, 2023, SCE will be deemed to have satisfied the 8
workforce component of SRIIM. This modification will allow SCE flexibility to respond to unexpected 9
attrition should it occur at the very end of the cycle. 10
2. Capital Investments 11
SCE recommends the Commission continue the capital investment component of the 12
SRIIM mechanism, with modifications detailed below, for the 2021 GRC. The Commission adopted the 13
SRIIM to motivate improvements to reliability through investment in the electric grid. It subsequently 14
expanded the mechanism to also include safety spending to help ensure SCE spends toward authorized 15
amounts for select safety and reliability programs. As previously mentioned, SCE is principally focused 16
on safety and reliability, and therefore inherently motivated to invest in programs that improve the safety 17
and reliability of SCE’s electric system. This complements the Commission’s actions over the past few 18
years to establish formal proceedings and mechanisms to further focus on safety and reliability. For 19
example, the Commission established the Safety Model Assessment Proceeding (S-MAP) which has, 20
and continues to develop, various models, frameworks, and reporting requirements to identify and 21
evaluate safety and reliability risks facing utilities and the public.60 22
While the GRC process is SCE’s primary mechanism to request funding for work to be 23
performed in the future, SCE cannot wait for a GRC decision to address emergent safety and reliability 24
issues. Accordingly, the Commission has instructed SCE to “respond to immediate or short-term crises 25
outside of the RAMP and GRC process,” noting that, “the RAMP and GRCs follow a three-year cycle 26
and are not designed to address immediate needs; the utilities have responsibility for addressing safety 27
60 Please see A.15-05-002. Through the S-MAP proceeding, SCE is required to provide an accounting of safety
and reliability spending against Commission-authorized levels. This is done through an annual report filed with the Commission – the Spending Accountability Report (SAR) – which provides a program-by-program accounting of authorized versus recorded spending for safety, reliability, and maintenance programs.
(Continued)
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64
regardless of the GRC cycle.”61 As the Commission correctly recognizes, SCE must act expeditiously to 1
address emergent risks that cannot wait for the completion of RAMP and GRC processes. 2
Consistent with this guidance, SCE recommends the following change to the SRIIM 3
capital component to provide SCE with some flexibility to reasonably address emergent safety and 4
reliability risks and unexpected customer requests. SCE proposes that any underspend in the SRIIM 5
capital categories62 can be offset by one or more of the following conditions: 6
(1) Spending in excess of 110% of the authorized amount for “High Priority” programs 7
(Storms, Claims, and Customer Driven/Requested work).63 8
(2) Spending above Commission authorized amounts in wildfire mitigation programs that 9
use the same types of resources as those performing SRIIM work.64 10
The capital investment component, with these modifications incorporated, will provide 11
SCE greater flexibility to continue investment in core SRIIM categories while being able to address 12
emergent and unanticipated customer needs and wildfire risks.65 SCE is committed to providing safe and 13
reliable service to its customers as well as continuing its efforts to harden its system against the threat of 14
61 D.16-08-018. INTERIM DECISION ADOPTING THE MULTI-ATTRIBUTE APPROACH (OR UTILITY
EQUIVALENT FEATURES) AND DIRECTING UTILITIES TO TAKE STEPS TOWARD A MORE UNIFORM RISK MANAGEMENT FRAMEWORK, p. 152.
62 SRIIM capital program categories (as adopted in the 2018 GRC Decision and suggested for continuation in this 2021 GRC) include: SCE’s Worst Circuit Rehabilitation (WCR), Cable Life Extension (CLE), Cable-in-Conduit Replacement (CIC), Circuit Breaker Replacement, Substation Transformer Replacement, Underground Switch Replacement, Underground Structure Replacement, Overhead Conductor Program (OCP), 4 kilovolt (kV) Overload-Driven Cutovers, and 4 kV Substation Elimination programs.
63 High Priority capital programs include those in Exhibit SCE-02, Vol. 01, Part 2 (specifically, Distribution Claim, Distribution Transformers); Exhibit SCE-02, Vol. 02 (specifically, Transmission Claims); Exhibit SCE-02, Vol. 02 (specifically, Substation Claims); Exhibit SCE-02, Vol. 04, Part 3 – Chapter II (all New Service Connections programs), and Chapter III (specifically, Relocations, Rule 20 Conversions, and Distribution Added Facilities); Exhibit SCE-04, Vol. 02 (specifically, Transmission/Substation and Distribution Storm Response).
64 This includes capital costs for SCE’s Wildfire Covered Conductor Program and Enhanced Overhead Inspection and Remediation Program (specifically, EOI Capital Expenditures), both of which are presented in Exhibit SCE-04, Vol. 05 – Wildfire Management.
65 SCE notes that emergent and catastrophic risks could come to fruition during the pendency of the 2021 GRC time period, requiring SCE to divert workers and resources from SRIIM programs to help ensure the safety and reliability of the electric system. This could also require shifting resources away from High Priority programs and Wildfire mitigations. In the event this occurs and impacts the achievement of adopted SRIIM capital expenditure targets, SCE anticipates it may be necessary to work with the Commission and parties to ensure SCE is not penalized for prudently mitigating safety and reliability risks to the electric system and customers during extenuating circumstances.
64
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wildfires. Adoption of the SRIIM with the modifications identified herein will provide the foundation 1
for SCE to commit its resources toward these goals. SCE’s commitment to growing its skilled workforce 2
and targeting highest priority work is reflected in its SRIIM proposal. 3
65
2021 General Rate Case Workpapers SCE-02, Vol. 01, Pt. 2
DOCUMENT PAGE(S)WP SCE-02, Vol. 01, Pt. 2 - Capital Summary for Distribution – Maintenance and Inspection and Capital Related Expense
1 – 3
WP SCE-02, Vol. 01, Pt. 2 – Memo of Understanding 4 – 9WP SCE-02, Vol. 01, Pt. 2 – Overhead Detailed Inspections – 2021 10 – 11WP SCE-02, Vol. 01, Pt. 2 – O&M detail for Distribution Overhead Detailed Inspections
12 – 18
WP SCE-02, Vol. 01, Pt. 2 – O&M detail for Distribution Underground Detailed Inspections
19 – 25
WP SCE-02, Vol. 01, Pt. 2 –Distribution Underground Detailed Inspections – 2021
26 – 27
WP SCE-02, Vol. 01, Pt. 2 – O&M detail for Distribution Preventive and Breakdown O&M Maintenance
28 – 34
WP SCE-02, Vol. 01, Pt. 2 –Distribution Preventive and Breakdown O&M Maintenance – 2021
35 – 37
WP SCE-02, Vol. 01, Pt. 2 – Capital detail for Distribution Preventive and Breakdown Capital Maintenance
38 – 41
WP SCE-02, Vol. 01, Pt. 2 – Distribution Preventive and Breakdown Capital Maintenance – 2021
42 – 43
WP SCE-02, Vol. 01, Pt. 2 – O&M detail for Patrolling and Locating Trouble O&M Expenses
44 – 50
WP SCE-02, Vol. 01, Pt. 2 – O&M detail for Distribution Apparatus Inspection and Maintenance
51 – 57
WP SCE-02, Vol. 01, Pt. 2 – Capital detail for Distribution Claim 58 – 59WP SCE-02, Vol. 01, Pt. 2 – Distribution Claim – 2021 60 – 61WP SCE-02, Vol. 01, Pt. 2 – O&M detail for Streetlight Operations, Inspections and Maintenance
62 – 68
WP SCE-02, Vol. 01, Pt. 2 – Capital detail for Streetlight Maintenance and LED Conversions
69 – 71
WP SCE-02, Vol. 01, Pt. 2 – Streetlight Maintenance and LED Conversions – 2021
72 – 73
WP SCE-02, Vol. 01, Pt. 2 – O&M detail for Distribution Support Activities
74 – 80
WP SCE-02, Vol. 01, Pt. 2 – Distribution Support Activities – 2021 81 – 82WP SCE-02, Vol. 01, Pt. 2– Capital detail for Distribution Tools and Work Equipment
83 – 86
WP SCE-02, Vol. 01, Pt. 2 – Capital detail for Prefabrication 87 – 89WP SCE-02, Vol. 01, Pt. 2 – Prefabrication – 2021 90 – 91WP SCE-02, Vol. 01, Pt. 2 – Capital detail for Distribution Transformers 92 – 94WP SCE-02, Vol. 01, Pt. 2 – Distribution Transformers – 2021 95 – 98WP SCE-02, Vol. 01, Pt. 2 – Distribution Preventive and Breakdown 99 – 100
DOCUMENT PAGE(S)Maintenance Transformers – 2021WP SCE-02, Vol. 01, Pt. 2 – PLP Transformers – 2021 101 – 102WP SCE-02, Vol. 01, Pt. 2 – Wildfire Covered Conductor Program Transformers – 2021
103 – 105
WP SCE-02, Vol. 01, Pt. 2 – Capital detail for Wildfire Covered Conductor Program Transformers
106 - 107
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Capital Summary for Distribution – Maintenance and Inspection and
Capital Related Expense SCE-02, Vol. 1, Pt. 2
1
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Southern California Edison - Capital Workpapers
Capital Workpapers Summary
SUMMARY BY GRC Volume
(Nominal $000)
Due to rounding, totals may not tie to individual items.
20152014 2016 2017 2018
437,007 438,854 459,590 473,777 487,927
$240,000
$280,000
$320,000
$360,000
$400,000
$440,000
$480,000
$520,000
Forecast Capital Expenditures Recorded and Authorized Capital Expenditures
Description 20232022202120202019
Authorized Expenditures
Recorded and Forecast Expenditures
Total Expenditures 2,297,156
Forecast Capital Expenditures
2019 2020 2021 2022 2023
Recorded, Authorized and Forecast Expenditures
GRC Activity 5 yr Total
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
348,941 396,835 424,019 442,930 399,902
2023202220212020201920182017201620152014
274,314
2018
Recorded Authorized Forecast
2,012,627
38,879 40,385 41,670 42,875 44,108 Distribution Claim 207,916
280,120 278,006 286,850 295,147 303,636 Distribution Preventive and Breakdown Capital Maintenance 1,443,759
3,325 3,376 3,430 3,483 3,546 Distribution Tools and Work Equipment 17,160
95,737 98,244 105,243 109,226 112,928 Distribution Transformers 521,379
18,946 18,843 22,398 23,046 23,709 Prefabrication 106,943
487,927 473,777 459,590 438,854 437,007 GRC Total 2,297,156
2
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Southern California Edison - Capital Workpapers
Capital Workpapers Summary
SUMMARY BY GRC Volume
(Nominal $000)
Due to rounding, totals may not tie to individual items.
20152014 2016 2017 2018
52,984 48,619 50,342 52,152 53,372
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Forecast Capital Expenditures Recorded and Authorized Capital Expenditures
Description 20232022202120202019
Authorized Expenditures
Recorded and Forecast Expenditures
Total Expenditures 257,470
Forecast Capital Expenditures
2019 2020 2021 2022 2023
Recorded, Authorized and Forecast Expenditures
GRC Activity 5 yr Total
Exhibit: SCE-02 Grid Activities
Volume: Distribution Inspections & Maintenance and Capital-Related Volume 1 Pt. 2
87,949 49,122 28,215 34,118 54,833
2023202220212020201920182017201620152014
50,450
2018
Recorded Authorized Forecast
254,237
52,984 48,619 50,342 52,152 53,372 Streetlight Maintenance and LED Conversions 257,470
53,372 52,152 50,342 48,619 52,984 GRC Total 257,470
3
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Memo of Understanding
4
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title: Memo of Understanding Exhibit: SCE-02, Vol. 1, Pt. 2 Witness: Terry Ohanian
5
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title: Memo of Understanding Exhibit: SCE-02, Vol. 1, Pt. 2 Witness: Terry Ohanian
6
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title: Memo of Understanding Exhibit: SCE-02, Vol. 1, Pt. 2 Witness: Terry Ohanian
7
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title: Memo of Understanding Exhibit: SCE-02, Vol. 1, Pt. 2 Witness: Terry Ohanian
8
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title: Memo of Understanding Exhibit: SCE-02, Vol. 1, Pt. 2 Witness: Terry Ohanian
9
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Overhead Detailed Inspections – 2021
10
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Name: Distribution Overhead Detailed Inspections - 2021
Exhibit: SCE-02, Vol. 1, Pt. 2
Exhibit Name: Distribution Maintenance and Inspection and Capital Related Expense and Other
Witness: Terry Ohanian
Activity Name: Distribution Overhead Detailed Inspection
1. Recorded and request in constant 2018 $000s.
Overhead Detailed Inspections (ODI) 2014 2015 2016 2017 2018 2019 2020 2021Labor 3,568 3,613 3,780 4,008 3,616 2,712 2,712 2,712
Non-Labor 2,186 2,654 1,721 1,638 1,572 1,179 1,179 1,179
Other - - - - - - - -
Total 5,754 6,267 5,502 5,646 5,188 3,891 3,891 3,891
Annual Grid Patrol (AGP) Labor 888 978 1,144 1,156 977 733 733 733
Non-Labor 505 489 371 193 260 195 195 195
Other - - - - - - - -
Total 1,393 1,467 1,515 1,349 1,237 928 928 928
Wireless Technology Rate (WTR) Labor 129 85 89 60 18 18 18 18
Non-Labor 166 138 164 158 108 108 108 108
Other - - - - - - - -
Total 295 223 253 218 126 126 126 126
Infrared Inspections Labor - - - - 98 - - -
Non-Labor - - - - 1,378 - - -
Other - - - - - - - -
Total - - - - 1,476 - - -
Total Overhead Detailed Inspections Labor 4,585 4,676 5,013 5,224 4,709 3,462 3,462 3,462
Non-Labor 2,856 3,281 2,256 1,988 3,319 1,483 1,483 1,483
Other - - - - - - - -
Total 7,442 7,957 7,269 7,213 8,027 4,945 4,945 4,945
2. Calculation of Percentage of SCE Territory in HFAs based on Circuit Miles.
Circuit Miles in Tiers 2 & 3 8,758
Total Circuit Miles 35,946
Circuit Miles in Tiers 2 & 3 / Total Circuit Miles 24%
Rounded for simplicity 25%
3. Percentage of HFA Circuit Miles Applied to Last Year Recorded for Overhead Detail Inspections & Annual Grid Patrols to calculate forecast.
a b c d
3.a. Overhead Detailed Inspections (ODIs) 2018 Recorded HFA %
Estimate of HFA ODIs (a
x b)
Estimate of non-HFA
ODIs (a - c)Labor 3,616$ 25% 904$ 2,712$
Non-Labor 1,572 25% 393 1,179
Other - - -
Total 5,188$ 1,297$ 3,891$
3.b. Annual Grid Patrols (AGPs) 2018 Recorded HFA %
Estimate of HFA AGPs (a
x b)
Estimate of non-HFA
AGPs (a - c)Labor 977$ 25% 244$ 733$
Non-Labor 260.24 25% 65 195
Other - - -
Total 1,237 309$ 928$
4. Summary of 2021 Test Year Forecast for Distribution Overhead Detailed Inspections
Test Year Forecast (Constant 2018 $000) 2021Overehead Detailed Inspections 3,891$ =Estimate of non-HFA ODIs
Annual Grid Patrols 928 =Estimate of non-HFA AGPs
Wireless Technology Rate 126 =Last Year Recorded
Infrared Inspections - No funding requested
Total 4,945$
Constant 2018 $000Recorded Forecast
11
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
O&M detail for Distribution Overhead Detailed Inspections
12
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
(U 338-E)
2021 General Rate Case A.19-08-_____
Workpapers
August 2019
SCE-02 Grid Activities Volume 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-RelatedDistribution Overhead Detail Inspections
13
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Forecast
2021
Beginning of Workpapers for:
Labor
Total 4,945
0
1,483
3,462
8,027
0
Recorded/Adj.
2018
3,319
4,709
Other
Non-Labor
Description of Activity:
This activity includes the costs associated with performing overhead detailed inspections, annual grid
patrols, and inspection of wireless carrier installations . Includes the cost of labor, materials used and
expenses incurred in performing overhead detailed inspections. Includes related costs such as:
transportation expenses; meals, traveling, lodging, and incidental expenses; division overhead; and
supply and tool expense.
Cost Type
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Overhead Detail Inspections
Witness: T. Ohanian
2021 GRC Summary
(Constant 2018 $000)
Due to rounding, totals may not tie to individual items.
14
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
4,982
Total
Total
Recorded/Adj.
2014 2015 201820172016Cost Type
4,585 Labor
Non-Labor
Other
2,856
0
7,442
4,676
3,281
0
7,957
5,013
0
2,256
7,269
5,224
1,988
0
7,213
4,709
3,319
0
8,027
Forecast Methods - Summary of Results of Methods Studied
(Constant 2018 $000)
Results of Linear Trending
5 Years: 20214 Years: 20213 Years: 2021
r2*$r2*$r2*$
Results of Averaging
4,966 4,906 4,842
2,654 2,521 2,711 2,740
0 0 0 0
7,620 7,503 7,616 7,581
Other
Non-Labor
Labor
4,647
0
5,045 5,239
2,642 2,557
N/AN/A
0 0
4,374
9,021 7,687 7,796
0.34 0.02 0.22
0.57 0.00 0.00
Cost Type
2017 - 2018
Last Recorded Year
202120202019
8,027
0
3,319
4,709 4,709
3,319
0
8,027
4,709
3,319
0
8,027 Total
Other
Non-Labor
Labor
Cost Type
sd**
2 Years: 3 Years:
sd**2016 - 2018 sd**2015 - 2018
4 Years:
sd**2014 - 2018
5 Years:
258
665
0
212
575
0
226
596
0
239
537
0 Other
Non-Labor
Labor
Cost Type
N/A
N/A N/A N/A N/A
* r2 = R Squared (Based on recorded years data)
** sd = standard deviation (Based on recorded years data)
Itemized Forecast
202120202019
Total
Other
Non-Labor
Labor
Cost Type
0
0
0
0 0
0
0
0 0
0
0
0
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Overhead Detail Inspections
Witness: T. Ohanian
15
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Cost Type
Recorded/Adj.
2014 2015 Test Year20202019201820172016
4,585 Labor
Non-Labor
Other
Total
2,856
0
7,442
4,676
3,281
0
7,957
5,013
0
2,256
7,269
5,224
1,988
0
7,213
4,709
3,319
0
8,027
1,483
3,462
0
4,945
3,462
1,483
0
4,945
3,462
1,483
0
4,945
Please see the explanation for choosing an adjusted Last Recorded Year Forecast in testimony.
Forecast
2021 GRC Selected Forecast Method
(Constant 2018 $000)
($000)
4,945
0
1,483
3,462 (1,247)
(1,836)
0
(3,082)
Method
Selected Forecast TY Forecast
Incr/(Decr) from
2018
LYR+A
LYR+A
-
Analysis of Forecasting Methods
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Overhead Detail Inspections
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
Analysis of Linear trending Method – In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded
expenses have shown a trend in a certain direction for three or more years, the last recorded year is an appropriate base
estimate. Since there is not a clear trend in either direction, linear trending is not an appropriate forecasting method.
Analysis of Averaging Method - In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses
have significant fluctuations from year to year, or expenses are influenced by external forces beyond the utility’s control, an
average of recorded-expenses is appropriate. The recorded costs do not show significant fluctuations; as such a historical
average is not an appropriate forecasting method.
Other Forecast Methods not Selected
16
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
Prior Year TotalTotal Change
Change
4,945 4,945 8,027 7,213 7,269 7,957 7,442
515 (688) (56) 814 (3,082) 0 0
4,585 Labor
Non-Labor
Other
Total
2,856
0
7,442
Recorded /
Forecast
4,676
3,281
0
7,957
5,013
0
2,256
7,269
5,224
1,988
0
7,213
4,709
3,319
0
8,027
1,483
3,462
0
4,945
3,462
1,483
0
4,945
3,462
1,483
0
4,945
Labor Prior Year Total
Change
4,585
4,676
4,676
5,013
5,013
5,224
5,224
4,709
4,709
3,462
3,462
3,462
3,462
3,462
91 337 211 (515) (1,247) 0 0
Recorded/Adj.
2014 2015 202120202019201820172016
Non-Labor Prior Year Total
Change
Total
Other Prior Year Total
Change
Total
2,856
425
3,281
3,281
2,256
(1,025)
1,988
(268)
1,988
3,319
1,331
3,319
1,483
(1,836)
1,483
1,483
0
1,483
1,483
0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
2,256
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
2014 2015 2016 2017 2018 2019 2020 2021
NL L
Recorded/Adj. 2014-2018 / Forecast 2019-2021
Total 4,945 4,945 4,945 8,027 7,213 7,269 7,957
Cost Type
2021 GRC Year Over Year Variance
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Overhead Detail Inspections
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
17
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Summary of Changes:
Recorded (2014-2018)
Recorded/Adj.
2014 2015 202120202019201820172016Cost Type
4,585 Labor
Non-Labor
Other
Total
2,856
0
7,442
Recorded /
Forecast
4,676
3,281
0
7,957
5,013
0
2,256
7,269
5,224
1,988
0
7,213
4,709
3,319
0
8,027
1,483
3,462
0
4,945
3,462
1,483
0
4,945
3,462
1,483
0
4,945
See Testimony
Forecast (2019-2021)
See Testimony
See Testimony
2021 GRC Forecast Commentary
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Overhead Detail Inspections
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
18
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
O&M detail for Distribution Underground Detailed Inspections
19
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
(U 338-E)
2021 General Rate Case A.19-08-_____
Workpapers
August 2019
SCE-02 Grid Activities Volume 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-RelatedDistribution Underground Detail Inspections
20
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Forecast
2021
Beginning of Workpapers for:
Labor
Total 6,158
0
744
5,414
6,762
0
Recorded/Adj.
2018
817
5,945
Other
Non-Labor
Description of Activity:
This activity includes the costs associated with performing underground detailed inspections on the
distribution grid . Includes the cost of labor, materials used and expenses incurred in performing
underground detailed inspections. Includes related costs such as: transportation expenses; meals,
traveling, lodging, and incidental expenses; division overhead; and supply and tool expense.
Cost Type
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Underground Detail Inspections
Witness: T. Ohanian
2021 GRC Summary
(Constant 2018 $000)
Due to rounding, totals may not tie to individual items.
21
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
5,383
Total
Total
Recorded/Adj.
2014 2015 201820172016Cost Type
4,321 Labor
Non-Labor
Other
1,109
0
5,431
3,345
1,610
0
4,955
4,273
0
1,816
6,089
5,930
1,084
0
7,014
5,945
817
0
6,762
Forecast Methods - Summary of Results of Methods Studied
(Constant 2018 $000)
Results of Linear Trending
5 Years: 20214 Years: 20213 Years: 2021
r2*$r2*$r2*$
Results of Averaging
5,937 4,873 4,763
951 1,239 1,332 1,287
0 0 0 0
6,888 6,622 6,205 6,050
Other
Non-Labor
Labor
(759)
0
9,129 7,679
(68) 732
N/AN/A
0 0
8,727
7,968 9,061 8,412
0.75 0.90 0.65
0.93 0.75 0.18
Cost Type
2017 - 2018
Last Recorded Year
202120202019
6,762
0
817
5,945 5,945
817
0
6,762
5,945
817
0
6,762 Total
Other
Non-Labor
Labor
Cost Type
sd**
2 Years: 3 Years:
sd**2016 - 2018 sd**2015 - 2018
4 Years:
sd**2014 - 2018
5 Years:
7
134
0
785
422
0
1,114
399
0
1,020
368
0 Other
Non-Labor
Labor
Cost Type
N/A
N/A N/A N/A N/A
* r2 = R Squared (Based on recorded years data)
** sd = standard deviation (Based on recorded years data)
Itemized Forecast
202120202019
Total
Other
Non-Labor
Labor
Cost Type
6,158
0
744
5,414 5,363
737
0
6,101 5,676
0
686
4,990
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Underground Detail Inspections
Witness: T. Ohanian
22
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Cost Type
Recorded/Adj.
2014 2015 Test Year20202019201820172016
4,321 Labor
Non-Labor
Other
Total
1,109
0
5,431
3,345
1,610
0
4,955
4,273
0
1,816
6,089
5,930
1,084
0
7,014
5,945
817
0
6,762
686
4,990
0
5,676
5,363
737
0
6,101
5,414
744
0
6,158
Please see the explanation for choosing an Itemized Forecast in testimony
Forecast
2021 GRC Selected Forecast Method
(Constant 2018 $000)
($000)
6,158
0
744
5,414 (531)
(73)
0
(604)
Method
Selected Forecast TY Forecast
Incr/(Decr) from
2018
Itemized
Itemized
-
Analysis of Forecasting Methods
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Underground Detail Inspections
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
Analysis of Linear trending Method – In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded
expenses have shown a trend in a certain direction for three or more years, the last recorded year is an appropriate base
estimate. Since there is not a clear trend in either direction, linear trending is not an appropriate forecasting method.
Analysis of Averaging Method - In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses
have significant fluctuations from year to year, or expenses are influenced by external forces beyond the utility’s control, an
average of recorded-expenses is appropriate. However, an average cost of historical years would not leverage an appropriate
UDI unit rate taking into consideration the annual variances that occur in UDI; as such a historical average is not an
appropriate forecasting method.
Analysis of Last Recorded Year - In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses
have been relatively stable for three or more years, the last recorded year is an appropriate base estimate. Due to the annual
variances that occur in UDI, a weighted unit cost is required to forecast this activity. As such last recorded year is not an
appropriate basis for SCE’s forecast
Other Forecast Methods not Selected
23
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
Prior Year TotalTotal Change
Change
6,101 5,676 6,762 7,014 6,089 4,955 5,431
(476) 1,134 925 (252) (1,086) 425 57
4,321 Labor
Non-Labor
Other
Total
1,109
0
5,431
Recorded /
Forecast
3,345
1,610
0
4,955
4,273
0
1,816
6,089
5,930
1,084
0
7,014
5,945
817
0
6,762
686
4,990
0
5,676
5,363
737
0
6,101
5,414
744
0
6,158
Labor Prior Year Total
Change
4,321
3,345
3,345
4,273
4,273
5,930
5,930
5,945
5,945
4,990
4,990
5,363
5,363
5,414
(976) 928 1,657 15 (955) 373 51
Recorded/Adj.
2014 2015 202120202019201820172016
Non-Labor Prior Year Total
Change
Total
Other Prior Year Total
Change
Total
1,109
501
1,610
1,610
1,816
206
1,084
(732)
1,084
817
(267)
817
686
(131)
686
737
51
737
744
7
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
1,816
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
2014 2015 2016 2017 2018 2019 2020 2021
NL L
Recorded/Adj. 2014-2018 / Forecast 2019-2021
Total 6,158 6,101 5,676 6,762 7,014 6,089 4,955
Cost Type
2021 GRC Year Over Year Variance
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Underground Detail Inspections
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
24
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Summary of Changes:
Recorded (2014-2018)
Recorded/Adj.
2014 2015 202120202019201820172016Cost Type
4,321 Labor
Non-Labor
Other
Total
1,109
0
5,431
Recorded /
Forecast
3,345
1,610
0
4,955
4,273
0
1,816
6,089
5,930
1,084
0
7,014
5,945
817
0
6,762
686
4,990
0
5,676
5,363
737
0
6,101
5,414
744
0
6,158
See Testimony
Forecast (2019-2021)
See Testimony
See Testimony
2021 GRC Forecast Commentary
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Underground Detail Inspections
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
25
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Distribution Underground Detailed Inspections – 2021
26
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Work
pap
er N
ame
- D
istr
ibu
tion
Un
der
gro
un
d D
etai
led
In
spec
tion
s -
20
21
Ex
hib
it:
SC
E-0
2,
Vol.
1,
Pt.
2
Ex
hib
it N
ame:
D
istr
ibu
tion
Mai
nte
nan
ce a
nd
In
spec
tion
an
d C
apit
al R
elat
ed E
xp
ense
an
d O
ther
Wit
nes
s:
Ter
ry O
han
ian
Act
ivit
y N
ame:
D
istr
ibu
tion
Un
der
gro
un
d D
etai
led
In
spec
tion
1.
Rec
ord
ed a
nd
req
ues
t in
con
stan
t 2
01
8 $
00
0s.
2014
2015
2016
2017
2018
2019
2020
2021
Lab
or
4,3
21
3,3
45
4,2
73
5,9
30
5,9
45
4,9
90
5,3
63
5,4
14
Non
-Lab
or
1,1
09
1,6
10
1,8
16
1,0
84
81
7
68
6
73
7
74
4
Oth
er-
-
-
-
-
-
-
-
Tota
l5
,43
1
4
,95
5
6
,08
9
7
,01
4
6
,76
2
5
,67
6
6
,10
1
6
,15
8
Lab
or
/ T
ota
l8
0%
68
%7
0%
85
%8
8%
88
%8
8%
88
%
Non
-Lab
or
/ T
ota
l2
0%
32
%3
0%
15
%1
2%
12
%1
2%
12
%
2.
Com
ple
ted
an
d f
ore
cast
Un
der
gro
un
d D
etai
led
In
spec
tion
s (U
DI)
an
d F
ield
In
ves
tigat
ion
s (F
I).
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
UD
I1
72
,04
51
50
,49
51
72
,17
21
73
,99
91
61
,09
01
55
,84
21
67
,51
91
67
,11
11
66
,21
41
73
,98
2
FI
- V
ault
s4
62
59
32
54
32
12
80
28
02
80
28
02
80
FI
- M
anh
ole
s1
10
79
27
62
60
60
60
60
60
FI
Tota
l5
72
67
22
81
38
33
40
34
03
40
34
03
40
Tota
l U
DI
and
FI
17
2,0
45
15
1,0
67
17
2,8
44
17
4,2
80
16
1,4
73
15
6,1
82
16
7,8
59
16
7,4
51
16
6,5
54
17
4,3
22
3.
Cal
cula
tion
of
un
it r
ate
for
insp
ecti
on
s.
Un
it R
ate
32
$
33
$
35
$
40
$
42
$
= (
Tota
l R
ecord
ed /
Tota
l U
DI
and
FI)
5-y
ear
Aver
age
of
Un
it R
ate
36
$
=
($
32
+ $
33
+ $
35
+ $
40
+ $
42
)
4.
Cal
cula
tion
of
20
19
-20
23
fore
cast
usi
ng 5
-yea
r av
erag
e u
nit
rat
e of
$3
6 a
nd
fore
cast
in
spec
tion
s.
2019
-202
3 Fo
reca
st20
1920
2020
2120
2220
2320
21-2
023
Ave
rage
Lab
or
5-y
ear
Aver
age
ofU
nit
Rat
e *
Tota
l In
spec
tion
s *
20
18
Lab
or
as a
Per
cen
tage
of
Tota
l4
,99
0
5
,36
3
5
,35
0
5
,32
2
5
,57
0
5
,41
4
Non
-Lab
or
5-y
ear
Aver
age
Un
it R
ate
* T
ota
l In
spec
tion
s *
Non
-Lab
or
Aver
age
68
6
73
7
73
5
73
2
76
6
74
4
Oth
er-
-
-
-
-
-
Tota
l5
,67
6
6
,10
1
6
,08
6
6
,05
3
6
,33
6
6
,15
8
5.
Rec
ord
ed a
nd
Fore
cast
wit
h T
est
Yea
r N
orm
aliz
ed
2014
2015
2016
2017
2018
2019
2020
2021
Lab
or
4,3
21
3,3
45
4,2
73
5,9
30
5,9
45
4,9
90
5,3
63
5,4
14
Non
-Lab
or
1,1
09
1,6
10
1,8
16
1,0
84
81
7
68
6
73
7
74
4
Oth
er-
-
-
-
-
-
-
-
Tota
l5
,43
1
4
,95
5
6
,08
9
7
,01
4
6
,76
2
5
,67
6
6
,10
1
6
,15
8
Com
plet
edFo
reca
st
Con
stan
t 201
8 $0
00R
ecor
ded
Fore
cast
27
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
O&M detail for Distribution Preventive and Breakdown O&M Maintenance
28
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
(U 338-E)
2021 General Rate Case A.19-08-_____
Workpapers
August 2019
SCE-02 Grid Activities Volume 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-RelatedDistribution Preventive and Breakdown O&M Maintenance
29
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Forecast
2021
Beginning of Workpapers for:
Labor
Total 104,426
0
48,975
55,451
78,215
0
Recorded/Adj.
2018
33,772
44,442
Other
Non-Labor
Description of Activity:
This activity includes the costs associated with the maintenance and repair of distribution assets
identified through inspection or as a result of breakdown. Includes the cost of labor, materials used
and expenses incurred in performing maintenance on the distribution system. Includes related costs
such as: transportation expenses; meals, travel, lodging, and incidental expenses; division overhead;
and supply and tool expense.
Cost Type
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Preventive and Breakdown O&M Maintenance
Witness: T. Ohanian
2021 GRC Summary
(Constant 2018 $000)
Due to rounding, totals may not tie to individual items.
30
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
47,605
Total
Total
Recorded/Adj.
2014 2015 201820172016Cost Type
47,810 Labor
Non-Labor
Other
70,959
0
118,770
48,299
55,828
0
104,127
50,038
0
49,570
99,608
48,336
44,562
0
92,898
44,442
33,772
0
78,215
Forecast Methods - Summary of Results of Methods Studied
(Constant 2018 $000)
Results of Linear Trending
5 Years: 20214 Years: 20213 Years: 2021
r2*$r2*$r2*$
Results of Averaging
46,389 47,779 47,785
39,167 42,635 45,933 50,938
0 0 0 0
85,556 90,240 93,712 98,723
Other
Non-Labor
Labor
11,039
0
41,806 44,436
13,904 8,118
N/AN/A
0 0
36,413
47,452 55,710 52,554
0.95 0.52 0.26
0.95 0.97 0.96
Cost Type
2017 - 2018
Last Recorded Year
202120202019
78,215
0
33,772
44,442 44,442
33,772
0
78,215
44,442
33,772
0
78,215 Total
Other
Non-Labor
Labor
Cost Type
sd**
2 Years: 3 Years:
sd**2016 - 2018 sd**2015 - 2018
4 Years:
sd**2014 - 2018
5 Years:
1,947
5,395
0
2,342
6,592
0
2,051
8,076
0
1,834
12,345
0 Other
Non-Labor
Labor
Cost Type
N/A
N/A N/A N/A N/A
* r2 = R Squared (Based on recorded years data)
** sd = standard deviation (Based on recorded years data)
Itemized Forecast
202120202019
Total
Other
Non-Labor
Labor
Cost Type
104,426
0
48,975
55,451 48,679
41,125
0
89,804 85,960
0
39,287
46,673
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Preventive and Breakdown O&M Maintenance
Witness: T. Ohanian
31
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Cost Type
Recorded/Adj.
2014 2015 Test Year20202019201820172016
47,810 Labor
Non-Labor
Other
Total
70,959
0
118,770
48,299
55,828
0
104,127
50,038
0
49,570
99,608
48,336
44,562
0
92,898
44,442
33,772
0
78,215
39,287
46,673
0
85,960
48,679
41,125
0
89,804
55,451
48,975
0
104,426
Please see the explanation for choosing an Itemized Forecast in testimony
Forecast
2021 GRC Selected Forecast Method
(Constant 2018 $000)
($000)
104,426
0
48,975
55,451 11,009
15,203
0
26,211
Method
Selected Forecast TY Forecast
Incr/(Decr) from
2018
Itemized
Itemized
-
Analysis of Forecasting Methods
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Preventive and Breakdown O&M Maintenance
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
Analysis of Linear trending Method – In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded
expenses have shown a trend in a certain direction for three or more years, the last recorded year is an appropriate base
estimate. Since there is not a clear trend in either direction, linear trending is not an appropriate forecasting method.
Analysis of Averaging Method - In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses
have significant fluctuations from year to year, or expenses are influenced by external forces beyond the utility’s control, an
average of recorded-expenses is appropriate. An averaging method would not take into account the change to Priority 3
maintenance items required by recent changes to GO 95; as such a historical average is not an appropriate forecasting
method.
Analysis of Last Recorded Year - In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses
have been relatively stable for three or more years, the last recorded year is an appropriate base estimate. 2018 not reflect a
normal operating year due to changes in the program due to GO95; as such last recorded year is not an appropriate
forecasting method.
Other Forecast Methods not Selected
32
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
Prior Year TotalTotal Change
Change
89,804 85,960 78,215 92,898 99,608 104,127 118,770
(14,643) (4,519) (6,710) (14,683) 7,745 3,844 14,622
47,810 Labor
Non-Labor
Other
Total
70,959
0
118,770
Recorded /
Forecast
48,299
55,828
0
104,127
50,038
0
49,570
99,608
48,336
44,562
0
92,898
44,442
33,772
0
78,215
39,287
46,673
0
85,960
48,679
41,125
0
89,804
55,451
48,975
0
104,426
Labor Prior Year Total
Change
47,810
48,299
48,299
50,038
50,038
48,336
48,336
44,442
44,442
46,673
46,673
48,679
48,679
55,451
489 1,739 (1,702) (3,894) 2,231 2,006 6,772
Recorded/Adj.
2014 2015 202120202019201820172016
Non-Labor Prior Year Total
Change
Total
Other Prior Year Total
Change
Total
70,959
(15,131)
55,828
55,828
49,570
(6,258)
44,562
(5,008)
44,562
33,772
(10,790)
33,772
39,287
5,515
39,287
41,125
1,838
41,125
48,975
7,850
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
49,570
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2014 2015 2016 2017 2018 2019 2020 2021
NL L
Recorded/Adj. 2014-2018 / Forecast 2019-2021
Total 104,426 89,804 85,960 78,215 92,898 99,608 104,127
Cost Type
2021 GRC Year Over Year Variance
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Preventive and Breakdown O&M Maintenance
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
33
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Summary of Changes:
Recorded (2014-2018)
Recorded/Adj.
2014 2015 202120202019201820172016Cost Type
47,810 Labor
Non-Labor
Other
Total
70,959
0
118,770
Recorded /
Forecast
48,299
55,828
0
104,127
50,038
0
49,570
99,608
48,336
44,562
0
92,898
44,442
33,772
0
78,215
39,287
46,673
0
85,960
48,679
41,125
0
89,804
55,451
48,975
0
104,426
See Testimony
Forecast (2019-2021)
See Testimony
See Testimony
2021 GRC Forecast Commentary
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Preventive and Breakdown O&M Maintenance
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
34
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Distribution Preventive and Breakdown O&M Maintenance – 2021
35
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title: Distribution Preventive and Breakdown O&M Maintenance - 2021Exhibit: SCE-02, Vol. 1, Pt. 2Name: Distribution Maintenance and Inspection and Capital Related Expense and OtherWitness: Terry OhanianActivity Name: Distribution Preventive and Breakdown O&M Maintenance
1. Calculation of Percentage Overhead vs Underground for Preventive & Breakdown O&M Maintenance This calculation uses the sum of 2014-2017 recorded for both Preventive & Breakdown Maintenance to calculate the percentage of this work performed on the overhead system. FERC 593 is overhead and FERC 594 is underground.
Nominal $000 % Recorded2014-2017 by OH/UG
593 - Preventive & Breakdown Maintenance 183,871 47%594 - Preventive & Breakdown Maintenance 206,705 53%Total Maintenance of Overhead & Underground Lines 390,576
2018 was excluded from calculation because it is not used for developing forecast.
2. Recorded for each sub-activity within Distribution Preventive & Breakdown O&M Maintenance Shows calculation of labor and non-labor percentages by each sub-activity. These calculations use 2014-2017 recorded. Shows calculation of 4-year average (2014-2017) recorded for each sub-activity.
Average % Labor /Distribution Preventive O&M Maintenance 2014 2015 2016 2017 2018 2014-2017 Non-Labor
Labor 22,541 21,430 22,098 18,463 17,962 21,133 34.1%Non-Labor 55,659 40,819 36,779 29,940 23,139 40,800 65.9%Other - - - - - - 0.0%Total 78,200 62,249 58,877 48,403 41,101 61,932 100%
Distribution Breakdown O&M MaintenanceLabor 24,357 25,899 27,119 28,936 25,487 26,578 65.8%Non-Labor 14,668 14,427 12,157 14,030 9,999 13,821 34.2%Other - - - - - - 0.0%Total 39,026 40,326 39,276 42,966 35,486 40,398 100%
Preventive Transformer MaintenanceLabor 847 916 757 871 936 848 95.4%Non-Labor 73 18 22 51 83 41 4.6%Other - - - - - - 0.0%Total 920 934 779 922 1,019 889 100%
Graffiti Removal Labor 65 55 64 65 57 62 9.9%Non-Labor 558 563 612 542 551 569 90.1%Other - - - - - 0.0%Total 623 618 676 607 609 631 100%
Total Preventive & Breakdown O&M MaintenanceLabor 47,810 48,299 50,038 48,336 44,442 48,621 46.8%Non-Labor 70,959 55,828 49,570 44,562 33,772 55,230 53.2%Other - - - - - - 0.0%Total 118,770 104,127 99,608 92,898 78,215 103,851 100%
3. Distribution Preventive O&M Maintenance and Distribution Breakdown O&M Maintenance combined. Calculation shows the labor / non-labor percentage for the two sub-activities.
Total Labor 47,711 46.6%Total Non-Labor 54,620 53.4%Total 102,331 100%
Recorded2018 Constant $000
Page 1 of 2
36
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title: Distribution Preventive and Breakdown O&M Maintenance - 2021Exhibit: SCE-02, Vol. 1, Pt. 2Name: Distribution Maintenance and Inspection and Capital Related Expense and OtherWitness: Terry OhanianActivity Name: Distribution Preventive and Breakdown O&M Maintenance
4. Development of Forecast for Distribution Preventive and Breakdown O&M Maintenance.
2019 2020 2021 2022 20234.a. Forecast using 4-year average, 2014-2017, with the exception of Graffiti Removal.Distribution Preventive O&M Maintenance - 2014 through 2017 Average
Labor 21,133 21,133 21,133 21,133 21,133 Non-Labor 40,800 40,800 40,800 40,800 40,800 Other - - - - - Total 61,932 61,932 61,932 61,932 61,932
Distribution Breakdown O&M Maintenance - 2014 through 2017 AverageLabor 26,578 26,578 26,578 26,578 26,578 Non-Labor 13,821 13,821 13,821 13,821 13,821 Other - - - - - Total 40,398 40,398 40,398 40,398 40,398
Preventive Transformer Maintenance - 2014 through 2017 AverageLabor 848 848 848 848 848 Non-Labor 41 41 41 41 41 Other - - - - - Total 889 889 889 889 889
Graffiti Removal - Last Year RecordedLabor 57 57 57 57 57 Non-Labor 551 551 551 551 551 Other - - - - - Total 609 609 609 609 609
Total Preventive & Breakdown O&M MaintenanceLabor 48,616 48,616 48,616 48,616 48,616 Non-Labor 55,212 55,212 55,212 55,212 55,212 Other - - - - - Total 103,828 103,828 103,828 103,828 103,828
4.b. Calculates increase due to change in Priority 3 due date.Uses the Distribution Preventive O&M Maintenance Labor/Non-Labor percentages, 34.1% and 65.9%.
Labor - 1,024 3,071 6,142 9,213 Non-Labor - 1,976 5,929 11,858 17,787 Other - - - - - Total - 3,000 9,000 18,000 27,000
4.c. Calculates amount of work performed in High Fire AreasIncludes Distribution Preventive O&M Maintenance, Distribution Breakdown O&M Maintenance, and increase due to Priority 3 change.Applies the 47% for overhead work and 25% for HFA. Assumes half-year for 2019. Uses combined Labor / Non-Labor percentages.
Labor (2,808) (5,736) (5,977) (6,338) (6,699) Non-Labor (3,613) (7,488) (8,011) (8,796) (9,580) Other - - - - - Total (6,421) (13,224) (13,988) (15,134) (16,279)
4.d. Sum of 4.a., 4.b., and 4.c.2019 2020 2021 2022 2023
Labor 45,808 43,904 45,710 48,420 51,130 Non-Labor 51,599 49,701 53,130 58,275 63,419 Other - - - - - Total 97,407 93,605 98,841 106,695 114,549
4.e. Distribution Preventive and Breakdown O&M Maintenance forecast with test year normalized.Total Forecast for Distribution Preventive & Breakdown O&M Maintenance Normalized
2019 2020 2021Labor 45,808 43,904 48,420 Non-Labor 51,599 49,701 58,275 Other - - - Total 97,407 93,605 106,695
2018$Forecast
Page 2 of 2
37
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Capital detail for Distribution Preventive and Breakdown Capital Maintenance
38
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
8,314 8,251 8,514 8,760 9,012
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Inspections & Maintenance
GRC Activity: Distribution Preventive and Breakdown Capital Maintenance
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 866
5. Pin: 4056
6. CWBS Element: CET-PD-CR-IF-MTW
CWBS Description: Metro West
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
42,850
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
39
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
134,893 133,875 138,134 142,129 146,217
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Inspections & Maintenance
GRC Activity: Distribution Preventive and Breakdown Capital Maintenance
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 867
5. Pin: 4056
6. CWBS Element: CET-PD-IR-PM-MTW
CWBS Description: Metro West
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
695,249
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
40
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
136,913 135,880 140,202 144,258 148,407
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Inspections & Maintenance
GRC Activity: Distribution Preventive and Breakdown Capital Maintenance
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 865
5. Pin: 4056
6. CWBS Element: CET-PD-BM-BD-MTW
CWBS Description: Metro West
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
705,660
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
41
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Distribution Preventive and Breakdown Capital Maintenance – 2021
42
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Wor
kpap
er T
itle:
Dis
tribu
tion
Prev
entiv
e an
d B
reak
dow
n C
apita
l Mai
nten
ance
- 20
21Ex
hibi
t: S
CE-
02, V
ol. 1
, Pt.
2N
ame:
Dis
tribu
tion
Mai
nten
ance
and
Insp
ectio
n an
d C
apita
l Rel
ated
Exp
ense
and
Oth
erW
itnes
s: T
erry
Oha
nian
Act
ivity
Nam
e: D
istri
butio
n Pr
even
tive
and
Bre
akdo
wn
Cap
ital M
aint
enan
ce
2014
2015
2016
2017
2018
Bre
akdo
wn
Mai
nten
ance
99,5
28
12
7,90
9
131,
476
14
5,94
5
129,
412
Pr
even
tive
Mai
nten
ance
112,
732
11
9,86
8
136,
840
12
6,54
6
119,
321
R
emov
e Id
le F
acili
ties
6,45
3
8,39
9
9,39
5
7,60
7
7,01
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Scot
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(2)
0
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-
1
Tota
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& B
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218,
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277,
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255,
748
Esca
latio
n R
ates
:20
1420
1520
1620
1720
1820
1920
2020
2120
2220
23In
flatio
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0.88
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0.90
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9
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ed n
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con
stan
t usi
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scal
atio
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tes.
2. C
alcu
late
4-y
ear a
vera
ge u
sing
201
4-20
17 c
onst
ant v
alue
s.3.
Esc
alat
e 4-
year
ave
rage
to n
omin
al v
alue
s usi
ng e
scal
atio
n ra
tes.
2014
-201
720
1420
1520
1620
1720
18A
vera
ge20
1920
2020
2120
2220
23B
reak
dow
n M
aint
enan
ce11
2,86
1
141,
668
14
3,37
8
153,
488
12
9,41
2
137,
849
14
3,16
3
148,
709
153,
440
157,
878
162,
419
Prev
entiv
e M
aint
enan
ce12
7,83
3
132,
762
14
9,22
7
133,
085
11
9,32
1
135,
727
14
0,95
9
146,
420
151,
078
155,
448
159,
919
Rem
ove
Idle
Fac
ilitie
s7,
317
9,
302
10
,246
8,00
0
7,01
4
8,71
6
9,05
2
9,
403
9,
702
9,
983
10
,270
Sc
ott B
rack
et(3
)
0
0
-
1
n/
a-
-
-
-
-
To
tal P
reve
ntiv
e &
Bre
akdo
wn
Cap
ital M
aint
enan
c e24
8,00
8
283,
733
30
2,85
1
294,
573
25
5,74
8
282,
292
29
3,17
5
30
4,53
3
314,
221
32
3,30
9
332,
609
Ove
rhea
d Po
rtion
of e
ach
activ
ity u
sing
his
toric
al 4
-yea
r ave
rage
OH
/UG
ratio
for P
reve
ntiv
e C
apita
l Mai
nten
ance
% O
HB
reak
dow
n M
aint
enan
ce34
%48
,625
50
,509
52
,115
53
,623
55
,165
Pr
even
tive
Mai
nten
ance
34%
47,8
76
49,7
31
51,3
13
52,7
97
54,3
16
Rem
ove
Idle
Fac
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s (us
es 7
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d)75
%6,
789
7,05
2
7,27
7
7,48
7
7,70
3
Scot
t Bra
cket
n/a
-
-
-
-
-
Tota
l Ove
rhea
d Pr
even
tive
& B
reak
dow
n C
apita
l Mai
nten
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103,
290
107,
292
11
0,70
5
113,
907
11
7,18
4
EOI E
stim
ated
Por
tion
- For
201
9 us
ed 1
2.5%
(25%
x .5
) and
for 2
020-
2023
use
d 25
% .
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s rat
io is
bas
ed o
n th
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rcui
t mile
s in
Tier
2&
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reak
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aint
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12,6
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13,0
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13,4
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91
Prev
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aint
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985
12,4
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12,8
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13,1
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13,5
79
Rem
ove
Idle
Fac
ilitie
s84
9
1,76
3
1,81
9
1,87
2
1,92
6
Tota
l Est
imat
ed E
OI f
or P
reve
ntiv
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akdo
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Cap
ital M
aint
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c e12
,911
26
,823
27,6
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28
,477
29,2
96
Rev
ised
Pre
vent
ive
& B
reak
dow
n C
apita
l Mai
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with
out E
OI -
Lin
es 3
2-35
min
us li
nes 4
7-49
.B
reak
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aint
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ce13
7,08
5
136,
082
140,
411
144,
473
148,
628
Prev
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aint
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ce13
4,97
5
133,
987
138,
250
142,
249
146,
340
Rem
ove
Idle
Fac
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s8,
204
7,64
0
7,88
3
8,11
1
8,34
4
Scot
t Bra
cket
-
-
-
-
-
Tota
l Pre
vent
ive
& B
reak
dow
n C
apita
l Mai
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280,
264
277,
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28
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4
294,
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30
3,31
3
Nom
inal
$00
0R
ecor
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Con
stan
t $20
18N
omin
al $
$
43
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
O&M detail for Patrolling and Locating Trouble O&M Expenses
44
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
(U 338-E)
2021 General Rate Case A.19-08-_____
Workpapers
August 2019
SCE-02 Grid Activities Volume 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-RelatedPatrolling and Locating Trouble
45
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Forecast
2021
Beginning of Workpapers for:
Labor
Total 22,029
0
3,196
18,833
22,029
0
Recorded/Adj.
2018
3,196
18,833
Other
Non-Labor
Description of Activity:
This activity includes the costs incurred by troublemen when patrolling distribution lines to locate
trouble at the request of SCE's system operators or as the result of a customer reported problem.
Activities include: patrolling, switching, locating the cause of the reported problem, and inspecting
SCE equipment installed on customer's property. Includes the cost of labor, materials used and
expenses incurred in performing patrolling and locating of trouble on the distribution grid. Includes
related costs such as: transportation expenses; meals, traveling, lodging, and incidental expenses;
division overhead; and supply and tool expense.
Cost Type
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Patrolling and Locating Trouble
Witness: T. Ohanian
2021 GRC Summary
(Constant 2018 $000)
Due to rounding, totals may not tie to individual items.
46
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
18,001
Total
Total
Recorded/Adj.
2014 2015 201820172016Cost Type
15,837 Labor
Non-Labor
Other
3,433
0
19,270
17,472
3,071
0
20,543
16,982
0
3,037
20,019
18,187
3,324
0
21,511
18,833
3,196
0
22,029
Forecast Methods - Summary of Results of Methods Studied
(Constant 2018 $000)
Results of Linear Trending
5 Years: 20214 Years: 20213 Years: 2021
r2*$r2*$r2*$
Results of Averaging
18,510 17,869 17,462
3,260 3,186 3,157 3,212
0 0 0 0
21,770 21,186 21,026 20,675
Other
Non-Labor
Labor
3,504
0
20,248 20,816
3,455 3,102
N/AN/A
0 0
21,703
25,206 23,703 23,917
0.97 0.70 0.85
0.30 0.42 0.04
Cost Type
2017 - 2018
Last Recorded Year
202120202019
22,029
0
3,196
18,833 18,833
3,196
0
22,029
18,833
3,196
0
22,029 Total
Other
Non-Labor
Labor
Cost Type
sd**
2 Years: 3 Years:
sd**2016 - 2018 sd**2015 - 2018
4 Years:
sd**2014 - 2018
5 Years:
323
64
0
767
118
0
703
113
0
1,027
150
0 Other
Non-Labor
Labor
Cost Type
N/A
N/A N/A N/A N/A
* r2 = R Squared (Based on recorded years data)
** sd = standard deviation (Based on recorded years data)
Itemized Forecast
202120202019
Total
Other
Non-Labor
Labor
Cost Type
0
0
0
0 0
0
0
0 0
0
0
0
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Patrolling and Locating Trouble
Witness: T. Ohanian
47
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Cost Type
Recorded/Adj.
2014 2015 Test Year20202019201820172016
15,837 Labor
Non-Labor
Other
Total
3,433
0
19,270
17,472
3,071
0
20,543
16,982
0
3,037
20,019
18,187
3,324
0
21,511
18,833
3,196
0
22,029
3,196
18,833
0
22,029
18,833
3,196
0
22,029
18,833
3,196
0
22,029
Last Year Recorded – In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses have been
relatively stable for three or more years, the last recorded year is an appropriate base estimate.
Forecast
2021 GRC Selected Forecast Method
(Constant 2018 $000)
($000)
22,029
0
3,196
18,833 0
0
0
0
Method
Selected Forecast TY Forecast
Incr/(Decr) from
2018
LYR
LYR
-
Analysis of Forecasting Methods
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Patrolling and Locating Trouble
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
Analysis of Linear trending Method – In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded
expenses have shown a trend in a certain direction for three or more years, the last recorded year is an appropriate base
estimate. Since there is not a clear trend in either direction, linear trending is not an appropriate forecasting method.
Analysis of Averaging Method - In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses
have significant fluctuations from year to year, or expenses are influenced by external forces beyond the utility’s control, an
average of recorded-expenses is appropriate. The recorded costs do not show significant fluctuations and SCE bases the
forecast on the most current staffing; as such a historical average is not an appropriate forecasting method.
Other Forecast Methods not Selected
48
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
Prior Year TotalTotal Change
Change
22,029 22,029 22,029 21,511 20,019 20,543 19,270
1,273 (524) 1,492 518 0 0 0
15,837 Labor
Non-Labor
Other
Total
3,433
0
19,270
Recorded /
Forecast
17,472
3,071
0
20,543
16,982
0
3,037
20,019
18,187
3,324
0
21,511
18,833
3,196
0
22,029
3,196
18,833
0
22,029
18,833
3,196
0
22,029
18,833
3,196
0
22,029
Labor Prior Year Total
Change
15,837
17,472
17,472
16,982
16,982
18,187
18,187
18,833
18,833
18,833
18,833
18,833
18,833
18,833
1,635 (490) 1,205 646 0 0 0
Recorded/Adj.
2014 2015 202120202019201820172016
Non-Labor Prior Year Total
Change
Total
Other Prior Year Total
Change
Total
3,433
(362)
3,071
3,071
3,037
(34)
3,324
287
3,324
3,196
(128)
3,196
3,196
0
3,196
3,196
0
3,196
3,196
0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
3,037
$0
$4,000
$8,000
$12,000
$16,000
$20,000
$24,000
2014 2015 2016 2017 2018 2019 2020 2021
NL L
Recorded/Adj. 2014-2018 / Forecast 2019-2021
Total 22,029 22,029 22,029 22,029 21,511 20,019 20,543
Cost Type
2021 GRC Year Over Year Variance
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Patrolling and Locating Trouble
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
49
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Summary of Changes:
Recorded (2014-2018)
Recorded/Adj.
2014 2015 202120202019201820172016Cost Type
15,837 Labor
Non-Labor
Other
Total
3,433
0
19,270
Recorded /
Forecast
17,472
3,071
0
20,543
16,982
0
3,037
20,019
18,187
3,324
0
21,511
18,833
3,196
0
22,029
3,196
18,833
0
22,029
18,833
3,196
0
22,029
18,833
3,196
0
22,029
See Testimony
Forecast (2019-2021)
See Testimony
See Testimony
2021 GRC Forecast Commentary
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Patrolling and Locating Trouble
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
50
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
O&M detail for Distribution Apparatus Inspection and Maintenance
51
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
(U 338-E)
2021 General Rate Case A.19-08-_____
Workpapers
August 2019
SCE-02 Grid Activities Volume 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-RelatedDistribution Apparatus Inspection and Maintenance
52
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Forecast
2021
Beginning of Workpapers for:
Labor
Total 5,697
0
605
5,092
5,697
0
Recorded/Adj.
2018
605
5,092
Other
Non-Labor
Description of Activity:
This activity includes the costs associated with the inspection, testing, and maintenance of overhead
and underground distribution apparatus used for remote monitoring and control. Examples of
distribution apparatus include capacitors, regulators, network protectors, fault interrupters, and
automatic re-closing switches used for line protection and sectionalizing. Both the inspection and
resulting maintenance performed by the apparatus crews is included in this activity.
Cost Type
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Apparatus Inspection and Maintenance
Witness: T. Ohanian
2021 GRC Summary
(Constant 2018 $000)
Due to rounding, totals may not tie to individual items.
53
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
5,145
Total
Total
Recorded/Adj.
2014 2015 201820172016Cost Type
4,300 Labor
Non-Labor
Other
815
0
5,115
4,527
1,056
0
5,584
5,084
0
787
5,871
5,260
616
0
5,876
5,092
605
0
5,697
Forecast Methods - Summary of Results of Methods Studied
(Constant 2018 $000)
Results of Linear Trending
5 Years: 20214 Years: 20213 Years: 2021
r2*$r2*$r2*$
Results of Averaging
5,176 4,991 4,853
610 669 766 776
0 0 0 0
5,787 5,815 5,757 5,628
Other
Non-Labor
Labor
305
0
5,833 6,011
80 346
N/AN/A
0 0
5,161
5,467 5,913 6,357
0.00 0.57 0.78
0.79 0.87 0.54
Cost Type
2017 - 2018
Last Recorded Year
202120202019
5,697
0
605
5,092 5,092
605
0
5,697
5,092
605
0
5,697 Total
Other
Non-Labor
Labor
Cost Type
sd**
2 Years: 3 Years:
sd**2016 - 2018 sd**2015 - 2018
4 Years:
sd**2014 - 2018
5 Years:
84
6
0
81
83
0
277
183
0
371
164
0 Other
Non-Labor
Labor
Cost Type
N/A
N/A N/A N/A N/A
* r2 = R Squared (Based on recorded years data)
** sd = standard deviation (Based on recorded years data)
Itemized Forecast
202120202019
Total
Other
Non-Labor
Labor
Cost Type
0
0
0
0 0
0
0
0 0
0
0
0
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Apparatus Inspection and Maintenance
Witness: T. Ohanian
54
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Cost Type
Recorded/Adj.
2014 2015 Test Year20202019201820172016
4,300 Labor
Non-Labor
Other
Total
815
0
5,115
4,527
1,056
0
5,584
5,084
0
787
5,871
5,260
616
0
5,876
5,092
605
0
5,697
605
5,092
0
5,697
5,092
605
0
5,697
5,092
605
0
5,697
Last Year Recorded – In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses have been
relatively stable for three or more years, the last recorded year is an appropriate base estimate.
Forecast
2021 GRC Selected Forecast Method
(Constant 2018 $000)
($000)
5,697
0
605
5,092 0
0
0
0
Method
Selected Forecast TY Forecast
Incr/(Decr) from
2018
LYR
LYR
-
Analysis of Forecasting Methods
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Apparatus Inspection and Maintenance
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
Analysis of Linear trending Method – In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded
expenses have shown a trend in a certain direction for three or more years, the last recorded year is an appropriate base
estimate. Since there is not a clear trend in either direction, linear trending is not an appropriate forecasting method.
Analysis of Averaging Method - In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses
have significant fluctuations from year to year, or expenses are influenced by external forces beyond the utility’s control, an
average of recorded-expenses is appropriate. The recorded costs do not show significant fluctuations; as such a historical
average is not an appropriate forecasting method.
Other Forecast Methods not Selected
55
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
Prior Year TotalTotal Change
Change
5,697 5,697 5,697 5,876 5,871 5,584 5,115
469 287 5 (179) 0 0 0
4,300 Labor
Non-Labor
Other
Total
815
0
5,115
Recorded /
Forecast
4,527
1,056
0
5,584
5,084
0
787
5,871
5,260
616
0
5,876
5,092
605
0
5,697
605
5,092
0
5,697
5,092
605
0
5,697
5,092
605
0
5,697
Labor Prior Year Total
Change
4,300
4,527
4,527
5,084
5,084
5,260
5,260
5,092
5,092
5,092
5,092
5,092
5,092
5,092
227 557 176 (168) 0 0 0
Recorded/Adj.
2014 2015 202120202019201820172016
Non-Labor Prior Year Total
Change
Total
Other Prior Year Total
Change
Total
815
241
1,056
1,056
787
(269)
616
(171)
616
605
(11)
605
605
0
605
605
0
605
605
0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
787
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2014 2015 2016 2017 2018 2019 2020 2021
NL L
Recorded/Adj. 2014-2018 / Forecast 2019-2021
Total 5,697 5,697 5,697 5,697 5,876 5,871 5,584
Cost Type
2021 GRC Year Over Year Variance
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Apparatus Inspection and Maintenance
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
56
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Summary of Changes:
Recorded (2014-2018)
Recorded/Adj.
2014 2015 202120202019201820172016Cost Type
4,300 Labor
Non-Labor
Other
Total
815
0
5,115
Recorded /
Forecast
4,527
1,056
0
5,584
5,084
0
787
5,871
5,260
616
0
5,876
5,092
605
0
5,697
605
5,092
0
5,697
5,092
605
0
5,697
5,092
605
0
5,697
See Testimony
Forecast (2019-2021)
See Testimony
See Testimony
2021 GRC Forecast Commentary
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Distribution Apparatus Inspection and Maintenance
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
57
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Capital detail for Distribution Claim
58
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
38,879 40,385 41,670 42,875 44,108
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Inspections & Maintenance
GRC Activity: Distribution Claim
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 864
5. Pin: 4055
6. CWBS Element: CET-PD-CL-DC-MTW
CWBS Description: Metro West
7. SRIIM Eligible: Yes
SCE$
2019 - 2023 Total
207,916
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
59
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Distribution Claim – 2021
60
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title: Distribution Claim - 2021Exhibit: SCE-02, Vol. 1, Pt. 2Name: Distribution Maintenance and Inspection and Capital Related Expense and OtherWitness: Terry OhanianActivity Name: Distribution Claim
2014 2015 2016 2017 2018Distribution Claim 28,290$ 30,823$ 37,318$ 40,853$ 37,299$
Escalation Rates: 2014 2015 2016 2017 20181.134 1.108 1.091 1.052 1.000
5-year Average2014 2015 2016 2017 2018 2014-2018
Recorded x Escalation 32,079$ 34,138$ 40,696$ 42,965$ 37,299$ 37,435$
Escalation Rates: 2019 2020 2021 2022 20231.039 1.079 1.113 1.145 1.178
2019 2020 2021 2022 2023Forecast Distribution Claim 38,879$ 40,385$ 41,670$ 42,875$ 44,108$
Claim forecast is developed by escalating 2014-2017 to constant $2018 and then calculating a five-year average (2014-2018). Next, the five-year average is escalated to nominal dollars.
Nominal $000
Constant 2018 $000
Nominal $000
Recorded
Forecast
61
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
O&M detail for Streetlight Operations, Inspections and Maintenance
62
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
(U 338-E)
2021 General Rate Case A.19-08-_____
Workpapers
August 2019
SCE-02 Grid Activities Volume 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-RelatedStreetlight Operations, Inspections, and Maintenance
63
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Forecast
2021
Beginning of Workpapers for:
Labor
Total 6,575
0
2,475
4,100
6,575
0
Recorded/Adj.
2018
2,475
4,100
Other
Non-Labor
Description of Activity:
This activity includes the costs associated with operating, inspecting, and maintaining SCE-owned
streetlighting assets. Activities include inspecting streetlights for outages, mapping, customer billing
and record-keeping, general administration, and maintenance of streetlights. Includes the cost of
labor, materials used and expenses incurred in performing streetlight operations, inspections, and
maintenance. Includes related costs such as: transportation expenses; meals, traveling, lodging, and
incidental expenses; division overhead; and supply and tool expense.
Cost Type
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Streetlight Operations, Inspections, and Maintenance
Witness: T. Ohanian
2021 GRC Summary
(Constant 2018 $000)
Due to rounding, totals may not tie to individual items.
64
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
4,368
Total
Total
Recorded/Adj.
2014 2015 201820172016Cost Type
4,619 Labor
Non-Labor
Other
4,125
0
8,744
3,990
3,392
0
7,382
4,099
0
2,187
6,286
4,905
2,256
0
7,161
4,100
2,475
0
6,575
Forecast Methods - Summary of Results of Methods Studied
(Constant 2018 $000)
Results of Linear Trending
5 Years: 20214 Years: 20213 Years: 2021
r2*$r2*$r2*$
Results of Averaging
4,503 4,274 4,343
2,365 2,306 2,577 2,887
0 0 0 0
6,868 6,674 6,851 7,230
Other
Non-Labor
Labor
2,882
0
4,785 4,281
1,371 669
N/AN/A
0 0
4,370
7,252 6,155 4,950
0.00 0.11 0.00
0.91 0.38 0.69
Cost Type
2017 - 2018
Last Recorded Year
202120202019
6,575
0
2,475
4,100 4,100
2,475
0
6,575
4,100
2,475
0
6,575 Total
Other
Non-Labor
Labor
Cost Type
sd**
2 Years: 3 Years:
sd**2016 - 2018 sd**2015 - 2018
4 Years:
sd**2014 - 2018
5 Years:
402
109
0
380
123
0
367
482
0
356
754
0 Other
Non-Labor
Labor
Cost Type
N/A
N/A N/A N/A N/A
* r2 = R Squared (Based on recorded years data)
** sd = standard deviation (Based on recorded years data)
Itemized Forecast
202120202019
Total
Other
Non-Labor
Labor
Cost Type
0
0
0
0 0
0
0
0 0
0
0
0
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Streetlight Operations, Inspections, and Maintenance
Witness: T. Ohanian
65
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Cost Type
Recorded/Adj.
2014 2015 Test Year20202019201820172016
4,619 Labor
Non-Labor
Other
Total
4,125
0
8,744
3,990
3,392
0
7,382
4,099
0
2,187
6,286
4,905
2,256
0
7,161
4,100
2,475
0
6,575
2,475
4,100
0
6,575
4,100
2,475
0
6,575
4,100
2,475
0
6,575
Last Year Recorded – In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses have been
relatively stable for three or more years, the last recorded year is an appropriate base estimate.
Forecast
2021 GRC Selected Forecast Method
(Constant 2018 $000)
($000)
6,575
0
2,475
4,100 0
0
0
0
Method
Selected Forecast TY Forecast
Incr/(Decr) from
2018
LYR
LYR
-
Analysis of Forecasting Methods
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Streetlight Operations, Inspections, and Maintenance
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
Analysis of Linear trending Method – In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded
expenses have shown a trend in a certain direction for three or more years, the last recorded year is an appropriate base
estimate. Since there is not a clear trend in either direction, linear trending is not an appropriate forecasting method.
Analysis of Averaging Method - In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses
have significant fluctuations from year to year, or expenses are influenced by external forces beyond the utility’s control, an
average of recorded-expenses is appropriate. Averaging the historical costs would not take into account savings achieved in
2018 through the restructuring of our streetlighting organization, streetlight sales, and LED conversions; as such a historical
average is not an appropriate forecasting method.
Other Forecast Methods not Selected
66
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
Prior Year TotalTotal Change
Change
6,575 6,575 6,575 7,161 6,286 7,382 8,744
(1,362) (1,096) 875 (586) 0 0 0
4,619 Labor
Non-Labor
Other
Total
4,125
0
8,744
Recorded /
Forecast
3,990
3,392
0
7,382
4,099
0
2,187
6,286
4,905
2,256
0
7,161
4,100
2,475
0
6,575
2,475
4,100
0
6,575
4,100
2,475
0
6,575
4,100
2,475
0
6,575
Labor Prior Year Total
Change
4,619
3,990
3,990
4,099
4,099
4,905
4,905
4,100
4,100
4,100
4,100
4,100
4,100
4,100
(629) 109 806 (805) 0 0 0
Recorded/Adj.
2014 2015 202120202019201820172016
Non-Labor Prior Year Total
Change
Total
Other Prior Year Total
Change
Total
4,125
(733)
3,392
3,392
2,187
(1,205)
2,256
69
2,256
2,475
219
2,475
2,475
0
2,475
2,475
0
2,475
2,475
0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
2,187
$0
$2,000
$4,000
$6,000
$8,000
$10,000
2014 2015 2016 2017 2018 2019 2020 2021
NL L
Recorded/Adj. 2014-2018 / Forecast 2019-2021
Total 6,575 6,575 6,575 6,575 7,161 6,286 7,382
Cost Type
2021 GRC Year Over Year Variance
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Streetlight Operations, Inspections, and Maintenance
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
67
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Summary of Changes:
Recorded (2014-2018)
Recorded/Adj.
2014 2015 202120202019201820172016Cost Type
4,619 Labor
Non-Labor
Other
Total
4,125
0
8,744
Recorded /
Forecast
3,990
3,392
0
7,382
4,099
0
2,187
6,286
4,905
2,256
0
7,161
4,100
2,475
0
6,575
2,475
4,100
0
6,575
4,100
2,475
0
6,575
4,100
2,475
0
6,575
See Testimony
Forecast (2019-2021)
See Testimony
See Testimony
2021 GRC Forecast Commentary
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Inspections & Maintenance
Activity: Streetlight Operations, Inspections, and Maintenance
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
68
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Capital detail for Streetlight Maintenance and LED Conversions
69
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$400
$800
$1,200
$1,600
$2,000
$2,400
$2,800
$3,200
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
900 1,500 3,000 3,000 3,000
Exhibit: SCE-02 Grid Activities
Volume: Distribution Inspections & Maintenance and Capital-Related
Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Infrastructure Replacement
GRC Activity: Streetlight Maintenance and LED Conversions
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 876
5. Pin: 4058
6. CWBS Element: CET-PD-OT-SL-MTE
CWBS Description: Metro East
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
11,400
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
70
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
52,084 47,119 47,342 49,152 50,372
Exhibit: SCE-02 Grid Activities
Volume: Distribution Inspections & Maintenance and Capital-Related
Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Infrastructure Replacement
GRC Activity: Streetlight Maintenance and LED Conversions
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 877
5. Pin: 4058
6. CWBS Element: CET-PD-OT-SL-MTW
CWBS Description: Metro West
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
246,070
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
71
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Streetlight Maintenance and LED Conversions – 2021
72
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Wor
kapa
per T
itle:
Stre
etlig
ht M
aint
enan
ce a
nd L
ED C
onve
rsio
ns -
2021
Exhi
bit:
SC
E-02
, Vol
. 1, P
t. 2
Nam
e: D
istri
butio
n M
aint
enan
ce a
nd In
spec
tion
and
Cap
ital R
elat
ed E
xpen
se a
nd O
ther
Witn
ess:
Ter
ry O
hani
anA
ctiv
ity N
ame:
Stre
etlig
ht M
aint
enan
ce a
nd L
ED C
onve
rsio
ns
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Stre
etlig
ht M
aint
enan
ce &
LED
Con
vers
ions
81,7
19
48,5
18
28,2
45
34,1
18
54,8
33
52
,984
48
,619
50
,342
52
,152
53
,372
Fore
cast
uni
ts a
nd u
nit r
ates
in $
2018
for s
treet
light
mai
nten
ance
& L
ED c
onve
rsio
ns a
ctiv
ities
:
Stee
l Pol
e R
epla
cem
ent
Qua
ntity
2,20
0
1,
650
2,30
0
2,
300
2,30
0
U
nit R
ate
7,40
0$
7,
400
$
7,40
0$
7,
400
$
7,40
0$
St
eel P
ole
Rep
lace
men
t Tot
al16
,280
,000
12
,210
,000
17
,020
,000
17
,020
,000
17
,020
,000
Fixt
ure
Rep
lace
men
tQ
uant
ity (0
.02
x Fo
reca
st L
S-1
HPS
V la
mps
)7,
500
5,00
0
4,
000
3,00
0
2,
000
Uni
t Rat
e33
5$
335
$
33
5$
335
$
33
5$
Fixt
ure
Rep
lace
men
t Tot
al2,
512,
500
1,67
5,00
0
1,
340,
000
1,00
5,00
0
67
0,00
0
LED
Con
vers
ions
Qua
ntity
70,0
00
66,3
00
50,0
00
50,0
00
50,0
00
Uni
t Rat
e40
0$
400
$
40
0$
400
$
40
0$
LED
Con
vers
ion
Tota
l28
,000
,000
26
,520
,000
20
,000
,000
20
,000
,000
20
,000
,000
Smar
t Sen
sors
Qua
ntity
6,00
0
10
,000
20
,000
20
,000
20
,000
U
nit R
ate
150
$
15
0$
150
$
15
0$
150
$
Sm
art S
enso
rs T
otal
900,
000
1,
500,
000
3,00
0,00
0
3,
000,
000
3,00
0,00
0
Con
duct
or A
llow
ance
600,
000
$
60
0,00
0$
600,
000
$
60
0,00
0$
600,
000
$
Se
ries S
treet
light
s (R
egul
ated
Out
put T
rans
form
er S
yste
m R
ebui
ld)
325,
000
$
16
5,00
0$
865,
000
$
1,
500,
000
$
1,60
0,00
0$
St
reet
light
Mai
nten
ance
Rep
air
2,40
0,00
0$
2,
400,
000
$
2,40
0,00
0$
2,
400,
000
$
2,40
0,00
0$
Esca
latio
n R
ates
:1.
039
1.
079
1.
113
1.
145
1.
178
2019
2020
2021
2022
2023
Stee
l Pol
e R
epla
cem
ents
16,9
08
13,1
72
18,9
45
19,4
93
20,0
54
Fixt
ure
Rep
lace
men
ts2,
609
1,80
7
1,
492
1,15
1
78
9
LED
Con
vers
ions
29,0
79
28,6
09
22,2
62
22,9
06
23,5
65
Smar
t Sen
sors
935
1,
618
3,33
9
3,
436
3,53
5
C
ondu
ctor
Allo
wan
ce62
3
647
66
8
687
70
7
Serie
s Stre
etlig
hts (
Reg
ulat
ed O
utpu
t Tra
nsfo
rmer
Sys
tem
Reb
uild
)33
8
178
96
3
1,71
8
1,
885
Stre
etlig
ht M
aint
enan
ce R
epai
r2,
493
2,58
7
2,
673
2,76
1
2,
837
52,9
84
48,6
19
50,3
42
52,1
52
53,3
72
Fore
cast
LS-
1 H
PSV
Stre
etlig
hts u
sed
for F
ixtu
re R
epla
cem
ent F
orec
ast
2018
2019
2020
2021
2022
2023
LS-1
HPS
V49
8,18
9
348,
474
22
2,17
4
172,
174
12
2,17
4
72,1
74
Rec
orde
dFo
reca
st
Fore
cast
s in
$201
8
Fore
cast
, Nom
inal
$00
0
Nom
inal
$00
0
73
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
O&M detail for Distribution Support Activities
74
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
(U 338-E)
2021 General Rate Case A.19-08-_____
Workpapers
August 2019
SCE-02 Grid Activities Volume 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-RelatedDistribution Support Activities
75
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Forecast
2021
Beginning of Workpapers for:
Labor
Total 11,453
0
3,356
8,097
18,177
20
Recorded/Adj.
2018
9,102
9,054
Other
Non-Labor
Description of Activity:
This activity includes costs to support our construction crews working on the distribution system,
including chargebacks for information technology, Stand-by Time, Informational Meetings, Field
Accounting O&M Activities, Distribution Analytics, Reliability Outage Center, Real Properties O&M
Activities, Mapping and Spatial Data Analytics, and underground civil activities. Includes the cost of
labor, materials used and expenses incurred in performing these activities. Includes related costs such
as: transportation expenses; meals, travel, lodging, and incidental expenses; division overhead; and
supply and tool expense.
Cost Type
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Capital Related Expense & Other
Activity: Distribution Support Activities
Witness: T. Ohanian
2021 GRC Summary
(Constant 2018 $000)
Due to rounding, totals may not tie to individual items.
76
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
8,167
Total
Total
Recorded/Adj.
2014 2015 201820172016Cost Type
8,834 Labor
Non-Labor
Other
12,997
0
21,831
7,202
5,756
0
12,958
7,326
0
7,221
14,546
8,122
10,044
10
18,176
9,054
9,102
20
18,177
Forecast Methods - Summary of Results of Methods Studied
(Constant 2018 $000)
Results of Linear Trending
5 Years: 20214 Years: 20213 Years: 2021
r2*$r2*$r2*$
Results of Averaging
8,588 7,926 8,108
9,573 8,789 8,031 9,024
15 10 8 6
18,176 16,966 15,964 17,137
Other
Non-Labor
Labor
12,551
50
10,784 8,788
13,818 7,273
N/AN/A
39 31
11,623
24,224 24,642 16,092
0.99 0.91 0.06
0.42 0.74 0.03
0.89 0.78
Cost Type
2017 - 2018
Last Recorded Year
202120202019
18,177
20
9,102
9,054 9,054
9,102
20
18,177
9,054
9,102
20
18,177 Total
Other
Non-Labor
Labor
Cost Type
sd**
2 Years: 3 Years:
sd**2016 - 2018 sd**2015 - 2018
4 Years:
sd**2014 - 2018
5 Years:
466
471
5
706
1,174
8
741
1,661
8
756
2,480
8
1.00
Other
Non-Labor
Labor
Cost Type
N/A
N/A N/A N/A N/A
* r2 = R Squared (Based on recorded years data)
** sd = standard deviation (Based on recorded years data)
Itemized Forecast
202120202019
Total
Other
Non-Labor
Labor
Cost Type
11,453
0
3,356
8,097 8,097
3,356
0
11,453 16,119
0
6,892
9,228
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Capital Related Expense & Other
Activity: Distribution Support Activities
Witness: T. Ohanian
77
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Cost Type
Recorded/Adj.
2014 2015 Test Year20202019201820172016
8,834 Labor
Non-Labor
Other
Total
12,997
0
21,831
7,202
5,756
0
12,958
7,326
0
7,221
14,546
8,122
10,044
10
18,176
9,054
9,102
20
18,177
6,892
9,228
0
16,119
8,097
3,356
0
11,453
8,097
3,356
0
11,453
Please see the explanation for choosing an Itemized Forecast in testimony
Forecast
2021 GRC Selected Forecast Method
(Constant 2018 $000)
($000)
11,453
0
3,356
8,097 (957)
(5,746)
(20)
(6,724)
Method
Selected Forecast TY Forecast
Incr/(Decr) from
2018
Itemized
Itemized
-
Analysis of Forecasting Methods
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Capital Related Expense & Other
Activity: Distribution Support Activities
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
Analysis of Linear trending Method – In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded
expenses have shown a trend in a certain direction for three or more years, the last recorded year is an appropriate base
estimate. Since there is not a clear trend in either direction, linear trending is not an appropriate forecasting method.
Analysis of Averaging Method - In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses
have significant fluctuations from year to year, or expenses are influenced by external forces beyond the utility’s control, an
average of recorded-expenses is appropriate. Distribution Support Activities is composed of nine sub-activities forecasted
using various methods. Due to merging many sub-activities into the forecast for Distribution Support Activities, the forecast
in whole was deemed as an ""Itemized Forecast"", and an averaging method was not appropriate for the total activity.
Analysis of Last Recorded Year - In D.89-12-057, and subsequently in D.04-07-022, the CPUC stated that if recorded expenses
have been relatively stable for three or more years, the last recorded year is an appropriate base estimate. Distribution
Support Activities is composed of nine sub-activities forecasted using various methods. Due to merging many sub-activities
into the forecast for Distribution Support Activities, the forecast in whole was deemed as an ""Itemized Forecast"". and a last
recorded year method was not appropriate for the total activity.
Other Forecast Methods not Selected
78
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Total
Prior Year TotalTotal Change
Change
11,453 16,119 18,177 18,176 14,546 12,958 21,831
(8,873) 1,588 3,630 1 (2,058) (4,666) 0
8,834 Labor
Non-Labor
Other
Total
12,997
0
21,831
Recorded /
Forecast
7,202
5,756
0
12,958
7,326
0
7,221
14,546
8,122
10,044
10
18,176
9,054
9,102
20
18,177
6,892
9,228
0
16,119
8,097
3,356
0
11,453
8,097
3,356
0
11,453
Labor Prior Year Total
Change
8,834
7,202
7,202
7,326
7,326
8,122
8,122
9,054
9,054
9,228
9,228
8,097
8,097
8,097
(1,632) 124 796 932 174 (1,131) 0
Recorded/Adj.
2014 2015 202120202019201820172016
Non-Labor Prior Year Total
Change
Total
Other Prior Year Total
Change
Total
12,997
(7,241)
5,756
5,756
7,221
1,465
10,044
2,823
10,044
9,102
(942)
9,102
6,892
(2,210)
6,892
3,356
(3,536)
3,356
3,356
0
0 0 0 20 10 0 0
0 0 20 10 0 0 0
0 0 10 10 (20) 0 0
7,221
$0
$4,000
$8,000
$12,000
$16,000
$20,000
$24,000
2014 2015 2016 2017 2018 2019 2020 2021
O NL L
Recorded/Adj. 2014-2018 / Forecast 2019-2021
Total 11,453 11,453 16,119 18,177 18,176 14,546 12,958
Cost Type
2021 GRC Year Over Year Variance
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Capital Related Expense & Other
Activity: Distribution Support Activities
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
79
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Summary of Changes:
Recorded (2014-2018)
Recorded/Adj.
2014 2015 202120202019201820172016Cost Type
8,834 Labor
Non-Labor
Other
Total
12,997
0
21,831
Recorded /
Forecast
7,202
5,756
0
12,958
7,326
0
7,221
14,546
8,122
10,044
10
18,176
9,054
9,102
20
18,177
6,892
9,228
0
16,119
8,097
3,356
0
11,453
8,097
3,356
0
11,453
See Testimony
Forecast (2019-2021)
See Testimony
See Testimony
2021 GRC Forecast Commentary
(Constant 2018 $000)
Forecast
Exhibit: SCE-02 Grid Activities
Volume: Vol 1 Pt. 2 - Distribution Inspections & Maintenance and Capital-Related
Business Planning Element: Capital Related Expense & Other
Activity: Distribution Support Activities
Witness: T. Ohanian
Due to rounding, totals may not tie to individual items.
80
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Distribution Support Activities – 2021
81
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Wor
kpap
er T
itle:
Dis
tribu
tion
Supp
ort A
ctiv
ities
- 20
21Ex
hibi
t: S
CE-
02, V
ol. 1
, Pt.
2N
ame:
Dis
tribu
tion
Mai
nten
ance
and
Insp
ectio
n an
d C
apita
l Rel
ated
Exp
ense
and
Oth
erW
itnes
s: T
erry
Oha
nian
Act
ivity
Nam
e: D
istri
butio
n Su
ppor
t Act
iviti
es
Sub-
Act
ivity
Nam
e20
1420
1520
1620
1720
1820
1920
2020
2120
2220
23In
form
atio
n Te
chno
logy
(IT)
Cha
rgeb
acks
12,1
18$
4,78
9$
5,
092
$
2,47
3$
1,
270
$
1,27
0$
1,
270
$
1,27
0$
1,
270
$
1,27
0$
Fi
eld
Acc
ount
Org
aniz
atio
n (F
AO
) O&
M A
ctiv
ities
1,60
1
1,
251
1,06
1
1,
141
757
75
7
757
75
7
757
75
7
Dis
tribu
tion
Ana
lytic
s54
9
20
13
3
264
18
0
180
18
0
180
18
0
180
St
and-
By
Tim
e45
7
306
95
7
1,10
2
1,
480
1,48
0
1,
480
1,48
0
1,
480
1,48
0
U
nder
grou
nd C
ivil
Insp
ectio
n O
&M
Act
iviti
es22
3
303
27
7
317
39
0
390
39
0
390
39
0
390
R
eal P
rope
rties
(RP)
O&
M A
ctiv
ities
512
49
1
436
14
1
119
11
9
119
11
9
119
11
9
Map
ping
& S
patia
l Dat
a A
naly
tics
1,49
4
1,
444
2,33
0
8,
293
8,24
7
6,
189
1,52
4
1,
524
1,52
4
1,
524
Info
rmat
iona
l Mee
tings
2,61
8
2,
246
2,44
9
2,
699
3,24
2
3,
242
3,24
2
3,
242
3,24
2
3,
242
Rel
iabi
lity
Out
age
Cen
ter (
RO
C)
2,25
8
2,
109
1,81
1
1,
746
2,49
3
2,
493
2,49
3
2,
493
2,49
3
2,
493
21,8
31$
12,9
58$
14,5
46$
18,1
76$
18,1
77$
16,1
19$
11,4
53$
11,4
53$
11,4
53$
11,4
53$
Rec
orde
dFo
reca
stC
onst
ant 2
018
$000
82
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Capital detail for Distribution Tools and Work Equipment
83
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$400
$800
$1,200
$1,600
$2,000
$2,400
$2,800
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
2,645 2,637 2,671 2,704 2,747
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Capital Related Expense & Other
GRC Activity: Distribution Tools and Work Equipment
1. Witness: T. Ohanian
2. Asset type: Stores/Lab/Miscellaneous
3. In-Service date: Specific Blanket
4. RO Model ID: 868
5. Pin: 4050
6. CWBS Element: CET-PD-OT-DL-MTW
CWBS Description: Metro West
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
13,405
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
84
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$100
$200
$300
$400
$500
$600
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
512 519 535 551 565
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Capital Related Expense & Other
GRC Activity: Distribution Tools and Work Equipment
1. Witness: T. Ohanian
2. Asset type: General Other
3. In-Service date: Specific Blanket
4. RO Model ID: 869
5. Pin: 5265
6. CWBS Element: CET-ET-MS-SE-526500
CWBS Description: Specialized Equipment - Engineering
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
2,682
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
85
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$40
$80
$120
$160
$200
$240
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
169 220 224 228 233
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Capital Related Expense & Other
GRC Activity: Distribution Tools and Work Equipment
1. Witness: T. Ohanian
2. Asset type: General Other
3. In-Service date: Specific Blanket
4. RO Model ID: 870
5. Pin: 5265
6. CWBS Element: CET-PD-MS-SE-526500
CWBS Description: Specialized Equipment - Tool Kits
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
1,073
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
86
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Capital detail for Prefabrication
87
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
14,002 14,544 15,007 15,441 15,885
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Capital Related Expense & Other
GRC Activity: Prefabrication
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 874
5. Pin: 4052
6. CWBS Element: CET-PD-OT-PF-MTW
CWBS Description: Metro West
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
74,880
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
88
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
4,944 4,299 7,391 7,605 7,824
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Capital Related Expense & Other
GRC Activity: Prefabrication
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 875
5. Pin: 4052
6. CWBS Element: CET-PD-OT-PF-PL
CWBS Description: Prefab (395) - Pole Loading
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
32,063
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
89
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Prefabrication – 2021
90
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Wor
kpap
er T
itle:
Pre
fabr
icat
ion
- 202
1Ex
hibi
t: S
CE-
02, V
ol. 1
, Pt.
2N
ame:
Dis
tribu
tion
Mai
nten
ance
and
Insp
ectio
n an
d C
apita
l Rel
ated
Exp
ense
and
Oth
erW
itnes
s: T
erry
Oha
nian
Act
ivity
Nam
e: P
refa
bric
atio
n
1. R
ecor
ded
and
fore
cast
in n
omin
al $
000.
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
aTo
tal P
refa
bric
atio
n12
,895
$
13,6
92$
13
,659
$
15,1
83$
16
,789
$
18,9
46$
18
,843
$
22,3
98$
23
,046
$
23,7
09$
2. C
alcu
latio
n of
Pol
e Lo
adin
g Pr
ogra
m (P
LP) P
refa
bric
atio
nb
PLP
Rep
lace
men
ts (1
)5,
313
$
15
1,03
3$
88
,985
$
84,5
16$
11
3,06
5$
16
8,13
1$
14
8,38
0$
25
1,16
8$
25
8,43
3$
26
5,86
7$
c
PLP
Und
erbu
ild (2
)-
$
-$
-
$
12
$
3,
784
$
6,
570
$
3,
522
$
10
,004
$
10,2
93$
10
,589
$
dTo
tal P
LP R
epla
cem
ents
& U
nder
build
(b +
c)
5,31
3$
151,
033
$
88,9
85$
84
,528
$
116,
849
$
174,
701
$
151,
902
$
261,
172
$
268,
726
$
276,
456
$
eC
alcu
late
d PL
P Pr
efab
(d x
0.0
283)
(3)
150
$
4,27
4$
2,51
8$
2,
392
$
3,
307
$
4,
944
$
4,
299
$
7,
391
$
7,
605
$
7,
824
$
3. N
on-P
LP P
refa
bric
atio
n re
cord
ed c
osts
fN
on-P
LP P
refa
b (a
- e)
(4)
12,7
45
9,
417
11
,141
12,7
91
13
,482
Esca
latio
n R
ates
:1.
039
1.07
9
1.
113
1.14
5
1.
178
gN
on-P
LP P
refa
b Fo
reca
st (5
)14
,002
14,5
45
15
,007
15,4
41
15
,885
hTo
tal P
refa
bric
atio
n R
ecor
ded/
Fore
cast
(f +
g)
12,8
95
13
,692
13,6
59
15,1
83
16
,789
18,9
46
18
,843
22,3
98
23
,046
23,7
09
(1) T
otal
reco
rded
and
fore
cast
for D
istri
butio
n Po
le L
oadi
ng P
rogr
am.
(2) T
otal
reco
rded
and
fore
cast
for D
istri
butio
n Po
le L
oadi
ng U
nder
build
.(3
) Pol
e Lo
adin
g Pr
ogra
m P
refa
bric
atio
n is
cal
cula
ted
by a
pply
ing
2.83
% to
the
reco
rded
/fore
cast
for t
he D
istri
butio
n Po
le L
oadi
ng P
rogr
am &
PLP
L U
nder
build
.(4
) Tot
al P
refa
bric
atio
n m
inus
Cal
cula
ted
PLP
Pref
ab(5
) 201
8 R
ecor
ded
for N
on-P
LP P
refa
b x
esca
latio
n
Nom
inal
$00
0R
ecor
ded
Fore
cast
91
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Capital detail for Distribution Transformers
92
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
87,321 88,126 89,245 92,439 95,097
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Capital Related Expense & Other
GRC Activity: Distribution Transformers
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 873
5. Pin: 4052
6. CWBS Element: CET-PD-OT-TR-TRANSF
CWBS Description: Transformers (580)
7. SRIIM Eligible: Yes
SCE$
2019 - 2023 Total
452,228
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
93
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
7,285 6,334 10,891 11,206 11,528
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Capital Related Expense & Other
GRC Activity: Distribution Transformers
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 872
5. Pin: 4052
6. CWBS Element: CET-PD-OT-TR-PL
CWBS Description: Transformers (580) - Pole Loading
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
47,244
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
94
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Distribution Transformers – 2021
95
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
W
OR
KP
AP
ER
TIT
LE
:
Dis
trib
utio
n T
rans
form
ers -
202
1 W
BS
Ele
men
t - C
ET
-PD
-OT
-TR
W
orkp
aper
Titl
e: D
istri
butio
n Tr
ansf
orm
ers
- 202
1 E
xhib
it: S
CE
-02,
Vol
. 1, P
t. 2
Witn
ess:
Ter
ry O
hani
an
96
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Dev
elop
men
t of U
nit C
ount
T
o d
evel
op t
he
dis
trib
uti
on t
ransf
orm
ers
unit
count
fore
cast
nee
ded
at
the
acti
vit
y l
evel
, an
act
ivit
y s
pen
d p
er t
ransf
orm
er r
ate
is
calc
ula
ted. T
he
acti
vit
y s
pen
d p
er t
ransf
orm
er r
epre
sents
that
the
acti
vit
y w
ill
requir
e one
tran
sform
er u
nit
for
ever
y 'X
' doll
ars
spen
t.
In o
rder
to c
alcu
late
th
e ac
tivit
y s
pen
d p
er t
ransf
orm
er r
ate,
SC
E a
nal
yze
s th
e his
tori
cal
quan
tity
of
tran
sform
ers
use
d f
or
the
acti
vit
y
along w
ith
the
tota
l re
cord
ed c
apit
al e
xpen
dit
ure
s bet
wee
n 2
014 a
nd 2
018.
Usi
ng t
his
dat
a, a
5 y
ear
wei
ghte
d a
ver
age
is t
hen
calc
ula
ted a
t th
e ac
tivit
y l
evel
by t
akin
g t
he
tota
l re
cord
ed e
xpen
dit
ure
s div
ided
by t
he
tota
l tr
ansf
orm
er q
uan
titi
es u
sed d
uri
ng t
he
his
tori
cal
tim
e per
iod.
Bel
ow
is
an e
xam
ple
cal
cula
ting t
he
acti
vit
y s
pen
d p
er t
ransf
orm
er f
or
the
Dis
trib
uti
on C
apit
al P
reven
tive
Mai
nte
nan
ce a
ctiv
ity:
The
tota
l tr
ansf
orm
er q
uan
tity
use
d b
etw
een 2
014 a
nd 2
018
= 3
3,24
3
Tota
l re
cord
ed c
apit
al e
xpen
dit
ure
s bet
wee
n 2
014
and 2
018 =
~$6
62,2
28,0
00
Usi
ng a
5 y
ear
wei
ghte
d a
ver
age,
the
app
rox
imat
e ac
tivit
y s
pen
d p
er t
ransf
orm
er =
~$662,2
28,0
00 ÷
33,2
34 =
~$2
0,00
0
T
he
tran
sform
er u
nit
fore
cast
is
then
cal
cula
ted
by d
ivid
ing t
he
acti
vit
y's
cap
ital
ex
pen
dit
ure
fore
cast
per
giv
en y
ear
2019 a
nd 2
023 b
y
the
acti
vit
y s
pen
d p
er t
ransf
orm
er r
ate
as s
how
n b
elow
.
W
orkp
aper
Titl
e: D
istri
butio
n Tr
ansf
orm
ers
- 202
1 E
xhib
it: S
CE
-02,
Vol
. 1, P
t. 2
Witn
ess:
Ter
ry O
hani
an
97
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Dev
elop
men
t of C
osts
T
o d
evel
op t
he
dis
trib
uti
on t
ransf
orm
ers
cost
fore
cast
at
the
acti
vit
y l
evel
, th
e tr
ansf
orm
er u
nit
cost
is
calc
ula
ted b
y u
sin
g a
3 y
ear
wei
ghte
d a
ver
age.
The
capit
al e
xpen
dit
ure
fore
cast
is
then
der
ived
by t
akin
g t
he c
alcu
late
d p
rice
per
tra
nsf
orm
er t
imes
the
unit
fore
cast
per
giv
en y
ear
bet
wee
n 2
019 a
nd 2
023.
Bel
ow
is
an e
xam
ple
cal
cula
ting t
he
Dis
trib
uti
on T
ransf
orm
er c
apit
al e
xpen
dit
ure
fore
cast
for
Dis
trib
uti
on C
apit
al P
reven
tive
Mai
nte
nan
ce a
ctiv
ity:
SC
E a
nal
yzed
his
tori
cal
dat
a of
unit
ized
work
ord
ers.
The
anal
ysi
s su
gges
ted t
hat
SC
E n
eeds
ones
tra
nsf
orm
er f
or
ever
y $
20
,000
spen
d i
n D
istr
ibuti
on C
apit
al P
reven
tive
Mai
nte
nan
ce w
ork
. T
he
cost
of
acquir
ing t
ransf
orm
ers
for
this
act
ivit
y i
s ap
pro
xim
atel
y
$4,2
30 p
er u
nit
.
T
he
fore
cast
count
of
tran
sform
ers
per
yea
r is
gen
erat
ed b
y d
ivid
ing t
he
capit
al e
xpen
dit
ure
fore
cast
for
Dis
trib
uti
on C
apit
al
Pre
ven
tive
Mai
nte
nan
ce f
or
2019
-2023 b
y t
he
aver
age
spen
d p
er t
ransf
orm
er.
The
tota
l ex
pen
dit
ure
s fo
r tr
ansf
orm
ers
in s
up
port
of
Dis
trib
uti
on
Cap
ital
Pre
ven
tive
Mai
nte
nan
ce i
s th
e co
unt
of
tran
sform
er f
ore
cast
s ti
mes
the
tota
l unit
cost
of
the
tran
sform
er a
s sh
ow
n
above.
Wor
kpap
er T
itle:
Dis
tribu
tion
Tran
sfor
mer
s - 2
021
Exh
ibit:
SC
E-0
2, V
ol. 1
, Pt.
2 W
itnes
s: T
erry
Oha
nian
98
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Distribution Preventive and Breakdown Maintenance Transformers – 2021
99
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Wor
kpap
er T
itle:
Dis
tribu
tion
Prev
entiv
e an
d B
reak
dow
n Tr
ansf
orm
ers -
202
1Ex
hibi
t: S
CE-
02, V
ol. 1
, Pt.
2N
ame:
Dis
tribu
tion
Mai
nten
ance
and
Insp
ectio
n an
d C
apita
l Rel
ated
Exp
ense
and
Oth
erW
itnes
s: T
erry
Oha
nian
Act
ivity
Nam
e: D
istri
butio
n Tr
ansf
orm
ers
1. C
alcu
latio
n of
Dis
tribu
tion
Prev
entiv
e an
d B
reak
dow
n M
aint
enan
ce C
apita
l Tra
nsfo
rmer
s with
out E
OI r
educ
tion.
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
Dis
tribu
tion
Cap
ital P
reve
ntiv
e M
aint
enan
ce14
0,95
9
15
2,09
2
16
1,92
3
17
1,42
6
18
1,42
9
29
,913
32
,275
34
,361
36
,378
38
,501
R
emov
e Id
le F
acili
ties
9,05
2
9,76
7
10,3
99
11,0
09
11,6
51
27
29
31
33
34
Dis
tribu
tion
Cap
ital B
reak
dow
n M
aint
enan
ce14
3,16
3
15
4,47
0
16
4,45
5
17
4,10
6
18
4,26
6
15
,574
16
,804
17
,890
18
,940
20
,045
To
tal
293,
175
316,
330
336,
777
356,
541
377,
346
45,5
13
49,1
08
52,2
82
55,3
50
58,5
80
2. C
alcu
latio
n of
Dis
tribu
tion
Prev
entiv
e an
d B
reak
dow
n M
aint
enan
ce C
apita
l Tra
nsfo
rmer
s with
EO
I red
uctio
n.
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
Dis
tribu
tion
Cap
ital P
reve
ntiv
e M
aint
enan
ce13
4,89
3
13
3,87
5
13
8,13
4
14
2,12
9
14
6,21
7
28
,625
28
,409
29
,313
30
,161
31
,028
R
emov
e Id
le F
acili
ties
8,31
4
8,25
1
8,51
4
8,76
0
9,01
2
25
24
25
26
27
Dis
tribu
tion
Cap
ital B
reak
dow
n M
aint
enan
ce13
6,91
3
13
5,88
0
14
0,20
2
14
4,25
8
14
8,40
7
14
,894
14
,781
15
,252
15
,693
16
,144
28
0,12
0
27
8,00
6
28
6,85
0
29
5,14
7
30
3,63
6
43
,544
43
,215
44
,590
45
,880
47
,199
2019
2020
2021
2022
2023
3. A
dditi
onal
tran
sfor
mer
fund
ing
requ
ired
if EO
I is n
ot a
utho
rized
.1,
969
5,
893
7,
692
9,
471
11
,381
Act
ivity
For
ecas
t ($0
00) -
Nom
inal
Tra
nsfo
rmer
For
ecas
t ($0
00) -
Nom
inal
Act
ivity
For
ecas
t ($0
00) -
Nom
inal
Tra
nsfo
rmer
For
ecas
t ($0
00) -
Nom
inal
Tra
nsfo
rmer
For
ecas
t ($0
00) -
Nom
inal
100
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
PLP Transformers – 2021
101
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title: PLP Transformers - 2021Exhibit: SCE-02, Vol. 1, Pt. 2Name: Distribution Maintenance and Inspection and Capital Related Expense and OtherWitness: Terry OhanianActivity Name: Distribution Transformers
2019 2020 2021 2022 2023PLP Replacements (1) 168,131$ 148,380$ 251,168$ 258,433$ 265,867$ PLP Underbuild (2) 6,570$ 3,522$ 10,004$ 10,293$ 10,589$ Total PLP Replacements & Underbuild (b + c) 174,701$ 151,902$ 261,172$ 268,726$ 276,456$ Calculated PLP Transformers (d x 0.0417) (3) 7,285$ 6,334$ 10,891$ 11,206$ 11,528$
Total PLP Transformers 7,285 6,334 10,891 11,206 11,528
(1) Total forecast for Distribution Pole Loading Program.(2) Total forecast for Distribution Pole Loading Underbuild.(3) Pole Loading Program Transformers is calculated by applying 4.17% to the forecast for the Distribution Pole Loading Program & PLPL Underbuild.
ForecastNominal $000
102
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Wildfire Covered Conductor Program Transformers – 2021
103
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Wor
kpap
er T
itle:
Wild
fire
Cov
ered
Con
duct
or P
rogr
am T
rans
form
ers -
202
1Ex
hibi
t: S
CE-
02, V
ol. 1
, Pt.
2N
ame:
Dist
ribut
ion
Mai
nten
ance
and
Insp
ectio
n an
d C
apita
l Rel
ated
Exp
ense
and
Oth
erW
itnes
s: T
erry
Oha
nian
Act
ivity
Nam
e: W
ildfir
e C
over
ed C
ondu
ctor
Pro
gram
Tra
nsfo
rmer
s
Qua
litat
ive
Sum
mar
y
ID:
WF-
060
Del
iver
able
:FR
3 Tr
ansf
orm
ers
Des
cri p
tion:
Cur
rent
FR
3s in
stal
ls tri
gger
ed b
y fa
ilure
; thi
s SB9
01 p
ortio
n is
oppo
rtuni
tyA
dditi
onal
Det
ail:
Esc
alat
ion:
CA
P - D
istrib
utio
n
Qua
ntita
tive
Sum
mar
y (d
olla
rs in
thou
sand
s)
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
GS&
RP
Filin
g(2
018$
)-
$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
L (2
018$
)-
$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
NL
(201
8$)
-$
-$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
(N
omin
al $
)-
$
-
$
-$
-$
-$
-$
-$
-$
-$
-$
L (N
omin
al$)
-$
-$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
N
L (N
omin
al$)
-$
-$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
U
nits
-
-
-
-
-
-
-
-
-
-
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Op
Plan
Ref
resh
(Inc
rem
enta
l)(2
018$
)1,
089
$
3,50
8$
4,58
8$
4,
874
$
5,34
9$
3,
452
$
-$
-$
-$
-$
L (2
018$
)N
L (2
018$
)(N
omin
al $
)1,
131
$
3,78
4$
5,10
7$
5,
582
$
6,30
3$
4,
181
$
-$
-$
-$
-$
L (N
omin
al$)
NL
(Nom
inal
$)U
nits
545
1,
754
2,
294
2,43
7
2,
675
1,72
6
-
-
-
-
Dat
a/C
alcu
latio
n (d
olla
rs in
thou
sand
s)
Page 1 of 2
104
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Wor
kpap
er T
itle:
Wild
fire
Cov
ered
Con
duct
or P
rogr
am T
rans
form
ers -
202
1Ex
hibi
t: S
CE-
02, V
ol. 1
, Pt.
2N
ame:
Dist
ribut
ion
Mai
nten
ance
and
Insp
ectio
n an
d C
apita
l Rel
ated
Exp
ense
and
Oth
erW
itnes
s: T
erry
Oha
nian
Act
ivity
Nam
e: W
ildfir
e C
over
ed C
ondu
ctor
Pro
gram
Tra
nsfo
rmer
s
Ass
umpt
ions
OH
tran
sfor
mer
s in
syst
em44
0,00
0
appr
oxim
ate
num
ber o
f OH
tran
sfor
mer
s in
entir
e sy
stem
(PR
ISM
mod
el)
100,
000
appr
oxim
ate
num
ber o
f OH
tran
sfor
mer
s in
HFR
A (P
RIS
M m
odel
plu
s HFR
A fi
lter)
23%
appr
oxim
ate
perc
enta
ge o
f OH
tran
sfor
mer
s in
HFR
AO
H tr
ansf
orm
er r
emov
als i
n sy
stem
(for
all
caus
es)
138,
000
appr
oxim
ate
tota
l OH
tran
sfor
mer
rem
oval
s (al
l) ov
er 1
1 ye
ars (
per C
YM
E-R
AM
stud
y fro
m 2
018
GR
C)
12,5
45
per y
ear O
H re
mov
als (
all)
23%
assu
med
HFR
A fr
actio
n2,
851
HFR
A re
mov
als p
er y
ear (
all)
51,0
00
appr
oxim
ate
tota
l OH
tran
sfor
mer
rem
oval
s (FA
ILU
RE
or N
EAR
FA
ILU
RE)
ove
r 11
year
s (pe
r CY
ME-
RA
M st
udy
from
201
8 G
RC
)4,
636
per y
ear O
H re
mov
als (
failu
re o
r nea
r-ter
m fa
ilure
)23
%as
sum
ed H
FRA
frac
tion
1,05
4
H
FRA
rem
oval
s per
yea
r (fa
ilure
or n
ear-t
erm
failu
re)
1,79
7
H
FRA
rem
oval
s per
yea
r (ot
her)
1.0
Failu
re o
r nea
r-ter
m fa
ilure
mul
tiplie
r - a
ssum
ed to
be
with
in to
p qu
artil
e p(
fail)
so 1
00%
of t
hese
are
with
in c
andi
date
poo
l0.
25O
ther
mul
tiplie
r - a
ssum
ed to
be
rand
omly
dist
ribut
ed a
mon
g p(
fail)
dist
ribut
ion
so 2
5% o
f the
se a
re w
ithin
can
dida
te p
ool
1,05
4
ca
ndid
ate
trans
form
er re
mov
als p
er y
ear (
failu
re o
r nea
r-ter
m fa
ilure
)44
9
cand
idat
e tra
nsfo
rmer
rem
oval
s per
yea
r (ot
her)
1,50
0
A
PPR
OX
IMA
TE
EX
PEC
TE
D R
ED
UC
TIO
N IN
CA
ND
IDA
TE
TR
AN
SFO
RM
ER
PO
PUL
AT
ION
PE
R Y
EA
R F
OR
NO
N-W
CC
P R
EM
OV
AL
RE
ASO
NS
2580
0El
igib
le T
rans
form
er P
opul
atio
n13
,000
To
tal H
FRA
Mile
s
Non
-Tie
red
Perc
enta
ge R
emov
ed12
.03%
2024
red
uced
by
abov
e pe
rcen
tage
of t
otal
pro
ject
cos
t (20
19-2
024)
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Rem
oval
s fro
m e
ligib
le p
opul
atio
n1,
500
1,50
0
1,50
0
1,
500
1,50
0
1,
500
1,50
0
1,
500
1,50
0
1,
500
Rem
aini
ng C
andi
date
s 24
,300
22
,800
21,3
00
19,8
00
18,3
00
16,8
00
15,3
00
13,8
00
12,3
00
10,8
00
WC
CP
mile
s29
110
0014
0016
0019
0013
350
00
0W
CC
P an
nual
dep
loym
ent (
% o
f HFR
A)
2%8%
11%
12%
15%
10%
0%0%
0%0%
WC
CP
trans
form
er re
mov
al fo
reca
st54
5
1,75
4
2,29
4
2,
437
2,67
5
1,
726
-
-
-
-
Cos
t Per
Uni
t2.
00$
2.
00$
2.
00$
2.
00$
2.
00$
2.
00$
2.
00$
2.00
$
2.
00$
2.00
$
FR
3 T
rans
form
ers (
2018
$)1,
089
$
3,
508
$
4,
588
$
4,
874
$
5,34
9$
3,45
2$
-$
-$
-$
-$
Esc
alat
ion
Inde
x20
1920
2020
2120
2220
2320
2420
2520
2620
2720
28C
AP
- Dist
ribut
ion
1.03
86
1.07
88
1.
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1.
1453
1.
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1.
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1.
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1.
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1.
3620
FR
3 Tr
ansf
orm
ers (
2018
$)1,
089
$
3,50
8$
4,58
8$
4,
874
$
5,34
9$
3,
452
$
-$
-$
-$
-$
FR3
Tra
nsfo
rmer
s (N
omin
al$)
1,13
1$
3,78
4$
5,10
7$
5,58
2$
6,
303
$
4,
181
$
-
$
-
$
-
$
-
$
Page 2 of 2
105
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
Workpaper Title:
Capital detail for Wildfire Covered Conductor Programs Transformers
106
Workpaper – Southern California Edison / 2021 General Rate Case
Exhibit No. SCE-02 Vol.01 Pt. 02 Witnesses: T. Ohanian
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Year
Southern California Edison
2021 GRC Capital Workpapers
Cost Estimates - Nominal ($000)
20202019 2021 2022 2023
1,131 3,784 5,107 5,582 6,303
Exhibit: SCE-02 Grid Activities
Volume: Distribution I&M and Capital-Related Volume 1 Pt. 2
Business Plan Group: Distribution Grid
Business Plan Element: Capital Related Expense & Other
GRC Activity: Distribution Transformers
1. Witness: T. Ohanian
2. Asset type: Distribution Lines
3. In-Service date: Specific Blanket
4. RO Model ID: 871
5. Pin: 4052
6. CWBS Element: CET-PD-OT-TR-FR
CWBS Description: Transformers (SB901)
7. SRIIM Eligible: No
SCE$
2019 - 2023 Total
21,907
2021 GRC - Capital Expenditures Forecast
Due to rounding, totals may not tie to individual items.
2019 2020 2021 2022 2023
107