SDG&E Electric Reliability Reporting

CPUC WorkshopsMay 26-27, 2015

Overview

• Current Reliability Programs

• Distribution System Maintenance

• Reliability Overview

• Performance Based Ratemaking (PBR)

• Circuit Modeling

• Reliability Challenges

Current Reliability Programs

• SDG&E has many reliability initiatives in place

– Reliability Assessment Team• Oversees company electric reliability• Analyzes issues pro-actively and re-actively• Approves pro-active improvements

– Transmission and Substation– District Engineering– Vegetation Management– Fire Risk Mitigation (FiRM), Reliability Improvements in Rural Areas

Team (RIRAT)– High SAIDI outage review– Reliability Director’s Council

• Internal reliability reporting on weekly basis

– Executive briefing, and Executive Operations Performing Center screen

Current Reliability Programs

• Through the RAT, two primary methods of improving reliability

– Targeted improvements at a circuit/segment level– Equipment replacements, prioritized by effectiveness

• Top circuits that lead to high SAIDI and SAIFI are determined

• Top circuits based on average duration and frequency (circuit SAIDI and circuit SAIFI) are determined

• Poor performing circuits are scrutinized by district engineering and reliability analysts to determine most effective solutions

– Solutions are presented to RAT for peer review

• SDG&E operates under Performance Based Ratemaking (explained in detail later), and uses it for cost-effectiveness studies

Current Reliability Programs

• Common solutions to improving reliability:

– SCADA• Substation• Line Recloser• Distribution Switches

– Switches / reclosers• SCADA or manual• Allows for partial restoration of power

– Cable Replacement• Underground cable installed prior to approximately 1983 was

unjacketed, and has high failure rate.– Fault indication

• Help troubleshoot location of outage, speeds up switching steps and repair

• Wireless version implemented in over 1,000 locations.– Fusing

• Isolates outage to fewer customers

Current Reliability Programs

• Common solutions to improving reliability (cont.)

– Vegetation Management– Corrective Maintenance Program– FiRM– Capacity studies

• Includes capacity of substation, circuit, branch, etc.

• Philosophy of Reliability Improvement:

– Prevent Outage– Limit impact of outage– Partially restore customers during repairs– Repair safely and quickly.

Maintenance

• SDG&E’s maintenance program conforms to the California Public Utilities Commission's (CPUC) General Order 165 (GO 165). Since 1998, GO 165 has been in place to establish inspection and corrective maintenance schedules. During these regular inspections, equipment may be identified that needs to be maintained or improved.

• SDG&E has committed to correcting all such equipment within one year of discovery.

• SDG&E performs inspections in high fire areas that exceed the requirements of GO 165. The inspections in those areas are more detailed and occur at a more frequent rate than what is described in GO 165. These detailed inspections, having been put in place years ago, meet the State directives regarding enhanced inspections during drought conditions.

Reliability Overview

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1.6Historic SAIDI and SAIFI

SAIDI

SAIFI

Year

SAID

I (M

inut

es)

SAIF

I (O

utag

es)

Heightened Fire Safety

SAIDI by Cause Category

Equipment59%

Customer Contact

15%

Weather10%

Foreign Object7%

Undetermined4%

Other5%

SAIDI – Equipment Only

Faulted cable

Connector/jumper/splice/elbow/rack

Switch faulted/mechanical

Transformer faulted/mechanical

Conductor failure/wire down

Other

Performance Based Ratemaking - 2015

SAIDI (minutes)

SAIFI (outages)

Ten Worst CircuitSAIDI

(minutes)*

Ten Worst CircuitSAIFI

(outages)*

SAIDET (minutes)

2015 Benchmark 60 0.51 585 4.40

ReportOnly

Dead Band + / - 2 + / - 0.02 + / - 35 + / - 0.35

Increment 1 0.01 10 0.10

Annual Improvement 1% 1% n/a n/a

Reward/Penalty Increment $375,000 $375,000 $125,000 $125,000

Maximum $3,000,000 $3,000,000 $1,000,000 $1,000,000

Circuit Modeling

• SDG&E uses a benefit:cost ratio known as RTR.

• RTR = (Annualized PBR Improvement) / (Annualized Project Cost)

• “Annualized PBR Improvement” is based on expected decrease in SAIDI and SAIFI, monetized to a PBR impact.

Reliability Challenges

• Fire Safety

– Due to heightened fire safety concerns, SDG&E has stricter operating procedures in place during fire season in fire prone areas• Turning reclosing off• Ceasing work• Protection settings more sensitive• Patrolling circuits before re-energization

– SAIDI and SAIFI have slightly risen due to these efforts

• Randomness/Variability in Outage

– Although failure rates can be calculated for equipment, knowing the location of the next outage is extremely difficult

– Pockets of failures appear to show trend, but are random occurrences due to probabilities

– Over 1,000,000 assets constantly exposed to weather; and subject to human or animal interference.