1 First Quartile Consulting Insights Conference August 21, 2013 Presented By: Jim Lorenz Director - Electric Transmission and Distribution Construction and Operations Welcome to Madison 2 • Capitol city of the state of Wisconsin • 500,000 residents in the greater Madison area • One of only two U.S. cities built on an isthmus Welcome to Madison (cont.) 3 • Home of the University of Wisconsin • Five lakes, over 260 parks, 200 miles of bike paths, and over 120 miles of shared-use trails and paths • Popular activities — Dane County Farmers’ Market — World’s largest brat fest About MGE 4 • Joint electric and gas utility serving: — 140,000 electric customers in Dane County including Madison (MGE’s roots go back 150 years) — 145,000 natural gas customers in seven counties from the Mississippi River to the LaCrosse area • Smallest investor-owned utility in the country (approximately 700 employees) About MGE (cont.) 5 • Electric infrastructure — Approximately 2,000 miles of distribution facilities 55 percent underground 45 percent overhead — 2,397 underground electrical cabinets — 40,030 poles — Network system 3 separate networks 191 network transformers Storm Resource Guide (Prior to 2011) 6 • Identified a need to implement an organized plan for storm events • Storm Resource Guide was no longer adequate — Phone directory categorized by storm level — Contractor and vendor information — Key MGE staff to contact during a large storm event Storm Response Plan (SRP) (2011) 7 • Hired Davies Consulting in 2011 — Conducted a storm-readiness assessment — Provided SRP framework to MGE at year-end 2011 SRP Development (2012) 8 • Customized SRP framework to suit MGE • Developed Incident Command Structure — Incident Commander — Public Information Officer — Section Chiefs (Distribution Operations Center, Planning, Logistics, Operations) • Defined storm levels — Provide triggers to determine section resources needed SRP Development (2012) (cont.) 9 • Developed the Damage Assessment Ticket Tracking database — Tracks damage and outage events from initial assessment to restoration — Damage assessors (identify damage), Planning section (prioritize restoration), line crews (restore service) • Implemented processes to identify lessons learned and conduct section and incident command debriefings • Introduced Companywide involvement as an SRP concept — Assigned “second jobs” — Conducted training December 20 and 21, 2012, Storm 10 • Helped solidify the SRP and recognize improvements • SRP had not been finalized (i.e., training); however, the following benefits were realized: — Incident Command Structure provided understanding of section and branch roles and responsibilities — Provided Companywide communication at regularly scheduled Incident Action Plan meetings SRP Improvements (2013) 11 • Annual Review — Track and approve changes — Maintain section and branch resource levels (retirements, new hires, etc.) — Publish revised version annually • Training — Second jobs — Safety • Exercises — Mutual Assistance — Logistics (parking) — Corporate Communications — Planning (August 21) Logistics Section Parking Exercise 12 Questions? 13 Jim Lorenz Director - Electric Transmission and Distribution Construction and Operations Madison Gas and Electric Company 608-252-5645 jlorenz@mge.com