May 28, 2015 URD Webinar # 2 Notes Presentation pages 5 and 6, Q1 and Q2 (Cable Failure Rates and Rehabilitation Policies): Tucson Electric: We have a relatively low cable failure rate overall. We are averaging 80 to 120 cable failures per year throughout our system, which translates to about 1 failure for 10-20 miles of installed cable. Most of the failures occur on our older non-jacketed concentric neutral cable and we are seeing a slight increase in the numbers for that vintage of cable. Most of the failures occur at termination points. We have a policy to replace all three phases of 600 amp substation feeder exit cable after we have experienced a total of 3 failures on any phase. We do not have any such policy for single phase URD cable. When it fails, we repair it through splicing if possible. When we replace, we pull out the old cable and pull new cable into the existing conduit. We inspect all of the equipment that we open during the cable repair or replacement process and perform any needed maintenance and/or replace badly damaged equipment components, if warranted. When we are replacing cable, if we are not able to pull the old cable out of the existing duct, we dig up both the conduit and old cable and install new conduit and cable. We have generally been able to pull new cable into our old 1960’s-1970’s vintage transite duct. If not, we have just been abandoning and decommissioning that duct. Oncor: Our overall cable failure rate is 0.2 failures per mile per year. Our problems are mostly with pre-1993 unjacketed cable where we are experiencing about 5 cable failures per mile per year. The overall rate is increasing as larger percentages of our cable approach an age of 30 years or more. We do not have any data that tracks cable failures by root cause. We now track all of our cable failures by cable segment. After 2 failures have occurred, we include the segment in our cable rehabilitation program to either treat it, if possible, or replace it. When we do replace cable, we pull new cable into the existing conduit, if such conduit is there (our earlier construction was direct buried). We install spare conduit only on feeder exits and mainlines, not on residential or commercial distribution lines. We inspect equipment that we open during the cable repair or rehabilitation process and perform maintenance and/or replace damaged equipment components, if warranted. We decommission our old direct buried cable, after replacing it with new cable in conduit. SCE: We are seeing an increasing number of cable failures on our residential URD systems on cable installed from the 1970’s to mid-1990’s. We do not have specific data available on cable failure rates or trends by root cause. When we experience a cable failure, we normally repair the existing cable unless we are aware that the cable segment has failed multiple times, in which case we bring out crews to replace the cable. When we need to do that, we often install portable generation to provide electric service to customers while we are replacing the bad cable. We pull new cable into the existing conduit if at all possible. Sometimes roots have grown into the conduit so we need to install in new conduit. Also, we have experienced problems in pulling cable out of and into our existing CIC systems. Initially these problems lead us to abandon the CIC entirely and install new cable in regular plastic conduit. Now, if we are able to get the old cable out, we pull in new cable which has a smaller diameter. We do not attempt to pull new cable into our old transite or orangeburg duct that was installed in the early 1960’s. We just leave that duct in the ground and install cable in new plastic conduit. 1 May 28, 2015 URD Webinar # 2 Notes KCP&L: Currently our average failure rate overall is 0.05 failures per mile per year. We don’t track failure rates by cable type but do track by vintage. Most of our failures are now occurring in cable installed between 1972 and 1977. The rates are increasing. We don’t track failure rates by root cause. After 2 failures have occurred in a segment, we replace the segment as part of our reactive replacement program. We have been doing that since 1994. When we do replace cable, we pull new cable into the existing conduit, if such conduit is there (our pre-1983 construction was direct buried). We do not install a spare conduit. We did an economic study on live front transformers and determined that is cost effective for us to replace those older transformers when we replace cable. So we are doing that as well as performing inspections and maintenance on other equipment when we are replacing cable. We decommission our old direct buried cable after replacing it with new cable in conduit. CPS Energy: Our overall average failure rate 0.35 failures per mile per year. Most of the failures are occurring on our older XLPE, unjacketed cable. Since 2012, our failure rates have been on a downward trend as a result of our proactive cable rehabilitation programs. In 2012 we experienced a total of 220 failures. This year to date we have experienced only 13 failures. Through our proactive programs, we have treated or replaced about 1,600 miles of that older vintage cable to date and have only about 108 miles still left to rehabilitate. We have a group that tracks our URD system failure data by root cause. 95% of our URD system failures are cable-related, including failures of the cable, elbows and splices. Currently, any single failure within a radial tap or loop will result in a future proactive rehabilitation project to either treat or replace the entire tap or loop. Most of the cable that we are replacing is direct buried so we are typically installing new cable in new 2.5” conduit and abandoning the existing cable. We not install spare conduit. When replacing cable, we inspect both the transformers and secondary enclosures and perform any needed maintenance. ComEd: Our overall cable failure rate was 0.27 failures per circuit mile in 2014. We do not maintain data that breaks down the rates by cable types or vintages. We believe that the majority of our failures are occurring on pre-1985 XLPE unjacketed cable. Our failure rate has been decreasing as a result of our proactive cable rehabilitation program. We just started to track failures by root cause and do not have any data to share on that breakdown at this time. We do not have any specific policy to treat or replace cable after one or more failures have occurred. We will splice and reuse a cable segment until it becomes completely unserviceable. We do not use conduit for any URD installations. When we replace cable, we abandon and decommission the existing direct buried cable CenterPoint: We are not tracking our per mile failure rates of URD cable. We are now focusing our attention and resources on a proactive cable assessment and replacement program. Historically we had a policy to replace URD loops on a reactive basis after we experienced 3 or more failures. We are not doing that any more. When a failure occurs, we repair the bad cable segment through splicing and identify a potential future project to replace the entire loop, which is rolled into our proactive program and prioritized alongside other potential replacement projects. We have been going back and forth over the years on the issue of whether we install URD cable direct buried or in conduit. Our most recent switch back 2 May 28, 2015 URD Webinar # 2 Notes to conduit installation was 2.5 years ago. When we replace cable, we install it in the existing conduit if that conduit is 3” in diameter or larger (Some of our older conduit was only 2”) When we replace cable, we also replace all terminations and all existing live front transformers. All existing direct buried cable and existing bad cable that was installed in 2” conduit is abandoned and decommissioned. BGE: Rachel: We not track our cable failure rates on a per-mile basis. Our biggest issues are with pre-1985 cable and those failures are decreasing as a result of our current aggressive cable replacement program. We were tracking cable failures by root cause in the past and found that the great majority of failures were due to electrical treeing on XLPE cable. We now track our cable failures by cable segment and our replace versus repair criteria is based on a rolling in 18-month period. If 2 failures occur in a segment within 18 months, we will replace the cable segment. We do not use conduit on our URD installations. Most of the replacement work is done through directional boring. When we replace cable, we install new terminations on both ends, inspect and perform routine maintenance on all equipment and also replace any older live front equipment with dead front equipment. The existing direct buried cable is left in the ground and decommissioned. Presentation pages 7 and 8, Q3 and Q4 (Proactive Cable Treatment and Cable Replacement Programs): TEP: Treatment: We are not treating any cable. We have been approached by the various cable treatment vendors, but determined that cable treatment options wouldn’t provide us with any significant savings since our failures rates are relatively low and essentially all of our existing cable is installed in conduit, and is therefore relatively easy to replace. Replacement: In the last few years, we have been budgeting $3 million per year for cable replacement work on our 10% worst performing feeders. We use SAIDI, SAIFI and CAIDI statistics to prioritize which feeders will be addressed and also look at the type and vintage of underground cable, giving higher priority to replacing non-jacketed concentric URD distribution cable which is older than 30 years. We also place a high priority on replacing our pre-2000 vintage 500kcmil aluminum feeder cable that has a tape shield. We do as much cable replacement as we can each year with the $3 million budget and defer the rest to be prioritized and addressed in future years. When we replace cable on a worst performing feeder, we also replace any live front equipment on that circuit and any other equipment that is showing signs of imminent failure. We do not have any regulatory requirements related to this work but believe that what we are doing will allow us to show our regulator that we’ve been addressing the issues and help us avoid any future regulatory mandates in this area. Earlier this year, we hired UtilX to test some of our 600 amp feeder cable which was largely 500kcmil tape shield. They used their CableWISE condition assessment testing process, to help us prioritize which specific segments to replace. We do not do any diagnostic testing of URD distribution cable. We are using mostly internal company labor on the cable replacement work and do not perform any post-construction testing to verify the quality of workmanship. 3 May 28, 2015 URD Webinar # 2 Notes Oncor: Treatment: We are treating cable segments selectively based on failure history. The priorities can be related to cable vintage, but the ranking criteria is really just failure history. We typically treat just selected cable segments, but may do an entire loop or subdivision if there is a lot of bad or marginal cable and we think we would gain some economies by doing all of it at the same time. We inspect all the equipment that we open up during the treatment process, perform routine maintenance and replace any transformers, arrestors and terminations, etc., that are in poor condition. We do not have any regulatory requirements related specifically to the cable treatment work but do need to show our regulator that we are addressing problems on our worst performing feeders. We have used both UtilX CableWISE testing and IMCORP partial discharge diagnostic testing to prioritize treatment work on our mainline underground feeders. On URD distribution, we do not perform any diagnostic testing regarding the cable insulation, but do test the concentric neutral strength as part of the process for determining whether a segment should be treated or replaced. We will not treat cable that has less than 25% of the original neutral strength remaining. We are currently using Novinium products in our treatment program. The biggest issues that we encounter in the field are access problems in areas where the existing cable was installed in rear lot lines. We perform air-flow tests before attempting to push the treatment fluid through splices and often do need to replace some splices before starting the treatment. Our average treatment cost including splice clearing is about $15 per foot, which is about 1/3 of our average cable replacement costs per foot. Replacement: Our replacement program is focused on pre-1993 unjacketed cable. As with our treatment program, we prioritize individual segments based on failure history and typically only replace individual bad segments. We use IMCORP partial discharge testing to select and prioritize replacement work on mainline feeders but do not do any diagnostic testing to prioritize replacement work on URD distribution lines. The replacement work is done by contract labor and mostly through directional boring. The biggest issues that we encounter in the field are access problems due to rear lot line construction and congestion with other underground utilities, which requires us to do a lot of “potholing” to determine the precise locations of those other utilities before we attempt any to do any directional boring. Our average replacement cost including potholing costs is about $45 per foot. We do not do any post-construction acceptance testing, but since 2008 we have been maintaining a database that tracks the history of every cable segment on our system including all cable treatment, repair or replacement work that was done by our crews or by one of our vendors/contractors, and what cable failures have occurred since the cable was last repaired, treated or replaced. When failures occur, we use this information to initiate follow-up actions and/or warranty claims with the vendors and contractors that were involved in the previous work, when warranted. SCE: Treatment and Replacement: We are focusing our treatment and replacement work on pre-2000 vintage cable on our worst performing feeders and are using IMCORP to do partial discharge testing to select the specific segments or radial taps that will addressed. Typically 50% of the cable segments that we test are found to be good, so we can save a lot of money by just concentrating our rehabilitation work on the segments that test bad. We do not have any regulatory requirements that are specific to this work, but we do need to report all of the remediation work that we are doing on our worst performing feeders 4 May 28, 2015 URD Webinar # 2 Notes Treatment: Our treatment program just started. We are using the Novinium products and their “unsustained” method of rejuvenation. We just completed a pilot project with them involving 40,000 feet of cable. Before attempting to treat the cable, used partial discharge testing data to locate all of the splices in each segment. We did not attempt to treat any segments that had 3 or more splices. We are in the process of evaluating the results of that pilot project. The biggest problems that we encountered in the field were related to our outdated maps. Replacement: Our replacement program is focused on our worst performing feeders. For those feeders, we perform partial discharge diagnostic testing on all of the underground segments in each radial tap. If 4 or more segments in a tap test bad, we replace the entire tap. Otherwise, we just replace the specific segments that tested bad. We replace in the existing conduit if at all possible. We were having difficulties removing and replacing cable in our existing CIC runs and initially we were often just abandoning the CIC and installing new cable in new 4” conduit. In order to reduce the replacement cost on CIC runs, we eventually specified a smaller diameter cable with a smoother jacket that we can more easily pull through the CIC conduit, after/if we were able to get the old cable out. When we are replacing cable under our proactive cable replacement program, we also replace all of the older live front transformers. We use contractors to perform the replacement work including a portion of the required switching work. Our per foot replacement cost has been averaging about $100 per foot but we expect that to go down now that we have found a less costly method for replacing our existing CIC segments KCP&L: Treatment: We are currently engaged in a large scale treatment program based on cable vintage. Within each vintage, we prioritize individual cable branches based on failure history. We generally treat just individual circuit branches but may do entire subdivisions if the failure data shows that we have a lot of marginal cable throughout a subdivision. During the treatment process we replace a lot of elbows but do not typically replace any other components unless they are showing signs of imminent failure. We do not have any regulatory requirements specific to this work. We are not doing any diagnostic testing to weed out individual cable segments that may not need to be treated. We are using contractors to perform the treatment work using Novinium’s products and methodologies. About half of the cable is being treated using their “sustained” method and half using the “unsustained” method. The biggest obstacles that we encounter in the field when performing this work are switching and hold-off clearance delays, difficulties in getting the fluid to flow through some extremely tight cable bends that we have on our connections to low profile padmount transformers, and some problems clearing splices. We do not do any post-treatment acceptance testing. We have had seen a 66% reduction in failure rates on the cable that has been treated compared to the performance of similar vintage cable that has not yet been treated. Our average treatment cost is about $25 per foot, which is about half of our average per foot replacement costs. Replacement: Our proactive replacement program is focused on those circuits that have the most cable failures per mile. The work prioritization after that is based mostly on cable vintage. Beginning just this past August, we have been using IMCORP to perform partial discharge testing on our highest priority replacement projects to allow us to weed out individual cable segments that don’t actually need to be replaced. Now we are replacing just those individual segments on the highest priority cable replacement projects that tested bad. When we replace a cable segment, we also replace any live front transformers on that segment as well as inspecting and performing any required maintenance on other equipment. We use contractors for the replacement work and all of it is done through directional boring. The biggest field issues 5 May 28, 2015 URD Webinar # 2 Notes that we encounter on the cable replacement work are switching and hold-off clearance delays and encountering solid rock during the boring operations. Our replacement cost per foot doubles if we need to bore through solid rock. We do not do any post-construction acceptance testing. Our replacement cost has been averaging about $50 per foot. CPS: Treatment: The budget for our cable treatment program has been $2.5 to $3 million per year over the past several years. To date we have treated 451 miles of cable. We treat entire loops and do not perform any partial discharge testing to weed out segments that do not need to be treated. We are currently using the Novinium products and methods but have also used UtilX products and methods in the past. The biggest issues that we encounter in the field are physical obstructions and the work required to dig up and replace splices that we are not able to push fluid through. We have experienced less than a 1% annual failure rate on the cable segments that we have treated. Our average treatment cost has been about $20 per foot of cable treated. Replacement: Our current plan is to replace 35 miles of cable per year under an $18.5 million annual budget. We are replacing entire subdivisions. We are not doing any diagnostic testing to weed out cable segments that don’t actually need to be replaced. When we replace cable in a subdivision, we inspect all of the transformers and secondary equipment, perform any required maintenance and replace any components that are showing signs of an imminent failure. There are no specific regulatory requirements associated with this work. We use both internal labor and contractors for the replacement work. Most of the work is done through open trenching rather than boring. The biggest problems that we encounter in the field are related to easement encroachments. We do not do any post-construction acceptance testing. We have seen a dramatic decrease in cable failures as a result of this work. Our replacement cost has been averaging about $100 per foot. ComEd: Treatment and Replacement: We have an integrated cable rehabilitation program that encompasses and utilizes both cable injection and replacement. We address entire loops, which are selected and prioritized based upon three criteria: # of outages, # of customers, and duration of outages. We do not do any diagnostic testing nor any other type of field cable evaluation before attempting injection. For each cable segment, we first attempt to perform an injection. If injection is not feasible, we immediately replace the cable segment. We do not inject on our 3 phase lines – all of that cable is replaced. We started this integrated program in 2007 and plan to complete it in 2017. So far we have injected or replaced about 5,000 miles of cable. There aren’t any regulatory requirements associated with this work. We use contract labor for all of the switching and field construction activities (including cable replacement) and use UtilX/Novinium technicians for the treatment work using the low pressure injection method. The field work is contracted on a turnkey basis under a unit price format. The contractor has the option to use either boring or trenching methods, but typically does all of replacement work through directional boring. Since we are contracting the work on a turnkey basis, ComEd does not have to deal directly with any field issues but we do know that homeowner obstructions are a major issue for our contactor. We have done some post treatment/post construction PD testing to assess work quality in the past, but that isn’t a regular part of our current program. Our current failure rate on loops that have been injected is 1.5% per year. We have started to track the failure history of the loops that have been replaced but we have only collected a limited amount of data so far. I am not authorized to share data on our treatment and replacement costs, but can say that our per foot injection costs are about 1/3 of our per foot costs for replacing cable. When we treat or replace cable loops, we also inspect and perform any 6 May 28, 2015 URD Webinar # 2 Notes required maintenance of the attached equipment, replace lightning arrestors, if needed, and install fault indicators. When we are treating cable, we do not replace any equipment unless the equipment is showing signs of imminent failure. When we are replacing cable, we do replace any live front transformers including our “siloed” (semi- submersible) transformers. CNP: Treatment: We are not treating any cable. We looked into this option in the past but concluded that it would be costly and difficult for us, primarily because of splice issues. Replacement:. We now have a proactive cable assessment and replacement program through which we are addressing 450-500 URD loops per year. Loops are chosen from a loop ranking report that rates each loop based on age, type of construction (direct buried or in conduit) the number of equipment failures, and the number of cable failures that have been experienced. The loops that we select from that list are then tested by IMCORP using their “Factory Grade” partial discharge testing methodology to identify the specific cable spans that need to be replaced. IMCORP guarantees the accuracy of their results for any spans that pass their testing. For cable that was installed prior to 1970, we do not perform any diagnostic testing and just replace the entire loop. Through this program we replaced at total of 1,156 cable spans in 2014 and are planning to replace 2,000 spans in 2015. When we replace individual cable spans, we also replace all of the terminations and any live front transformers associated with that span. If we are replacing an entire loop, we also replace all of the live front transformers on that loop. There aren’t any regulatory requirements specific to this work. The replacement work is done by a contractor using directional boring methods. The most challenging issues in the field are getting access to rear lot line facilities and working in areas where there is concrete cover. We do not do any post-construction testing on this replacement program but the field work is monitored by our QA inspectors. Our program is only two years old so we don’t have any data to share now on the benefits and costs. We are planning to develop a more formal process to monitor the cost effectiveness of this program. BGE: Treatment: We just started a formal treatment program this year after completing a pilot project last year. We are proceeding cautiously on this program because we have tried cable injection in the past and did not have much success. This year we only budgeted for 5 miles of injection. We are proactively looking for cable spans of certain vintages to inject. Prior to 1985, we were using hand wrapped splices on all of our URD cable. We don’t plan to treat any of that cable because we would need to replace all of those splices before attempting injection. We are focusing our treatment program this year on post-1985 cable spans that have experienced 2 or more failures We are doing this work with a combination of company and contract labor and are using the UtilX low pressure injection process. The most significant challenge that we encounter in the field is interference/congestion with other underground utilities. We are not performing any post-treatment acceptance testing. Since our program just started, we do not have any data to assess the costs or effectiveness of our treatment program.. Replacement: We do not have a proactive cable replacement program but we have had a large budget over many years to support the replacement of cable segments on a reactive basis, based on our 2 failures in rolling 18 months criteria. We do not do any diagnostic testing. Our program is totally reactive, based on failure history. When we replace a cable segment, we also replace any live front transformers that are on that section of cable. We also replace any leaking or badly damaged dead front equipment. The replacement work is all done with contract crews and 99% of the work is done via directional boring. We use a combination of company and contractor crews for the switching and energizing work. Our biggest field challenge is interference/congestion with other utilities. We do not do any post-construction acceptance testing but do have field inspectors that oversee the contracted work. We have definitely 7 May 28, 2015 URD Webinar # 2 Notes experienced a reduction in cable failure as a result of our large investment in cable replacements. We don’t have data to share regarding our average replacement cost per foot of cable replaced. 8