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Advanced PredictiveMaintenance Strategy

Osmose Overhead Distribution Assessment Systempowered with

EXACTER® Technology

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EXACTER Experience• Exacter Technology Used at

100+ N. American Utilities• Summer 2009

– UK/Ireland Alliance– Australian Alliance– U.S. Patent

• Based in Columbus, OH• 2 Million+ Poles Surveyed• Over 60,000 Pole Miles• Reliability Conference

IOU24%

REA37%

Municipal36%

Industrial3%

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The Industry ProblemAddressed by EXACTER

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All Studies Agree:31% of Outages

Are Due toFailing Equipment

The 31% Problem

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Trees32%

Animals18%

Miscellaneous19%

Equipment Failure31%

Causes of Power Outages

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Unavoidable Avoidable

Trees32%

Animals18%

Equipment Failure31%

Miscellaneous19%

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Breakthrough Technology

Trees32%

Animals18%

Equipment Failure31%

Miscellaneous19%

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How EXACTER Works

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EXACTER Mobile Survey Instrument

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EXACTERMobile Technology

Pole Line HardwareCreating Failure Emission

Detect

Locate

Enhance

AnalyzeKnowledgeDatabase

EXACTER Components

System SurveyPredictive

Failure-SignatureAnalysis

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EXACTEROverall System Architecture

EXACTERMobile

Survey DeviceEXACTERMobile

Survey DeviceEXACTERMobile

Survey Dev iceEXACTERMobile

Survey DeviceEXACTERMobile

Survey Device

EXACTERMobile

Survey Device

Patented Technology

• Used in Any Vehicle• Physically Surveys the Distribution Network• Completely Automated Operation• No Operator Interaction Required• Failure Signature Discrimination• GPS Location of Emission Source

Trade Secret Data Analysis

SQLServer

Database

InformationDelivery

Server Bus

• Equipment Failure Signature Library• Priority Ranking of Failure Locations• Portal Requires No User Software, Just Browser• Industry Statistics on all Surveyed Ter ri tories

Secure Cellular

Customer Deliverables

ReportsAnd

Maps

BrowserData Access

AndManagement

GISInterface

Files

Best PracticesFor Distribution

Reliability© 2008

FieldEquipment

Report

.

.

.

Office

Field

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EXACTERTurnkey Services

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1) Survey Circuits2) Locate Failing Components3) Field Assessment4) Project Analysis

Managed Best PracticesA 4-Phase Process

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How is EXACTER Used?

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OUTAGE

Conditions-Based MaintenanceTargeted Equipment/Territory

Equipment Failures Over Time

Outage ResponseStorms, Animals, Accidents, Trees

OMS, SCADA, Automation

Identification AFTER

Reactive Process by Design

Predictive MaintenanceEquipment Strategy

Identification BEFORE

Reduces SAIFI & SAIDI

Proactive Process

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SAIDI

SAIFI

CMI

Safety

ROI

WPCs

PSC

RateCase

Complaints

Smart

Grid

Insight to Achieve Business Objectives

Technology &Process

Enablement• Empirical Data• Turnkey Service• Program Flexibility

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SAIFI/SAIDI Reduction

Substation Feeders1st Level ProtectionDevices

2nd Level ProtectionDevices

3rd Level ProtectionDevices

4th Level ProtectionDevices

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Greatest CMI Risk Reduction OpportunitySecond Level CMI Risk Reduction OpportunityThird Level CMI Risk Reduction Opportunity

Utility Customer

Exacter

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Smart Grid/AMI Data Integrity

Data CommunicationRelies Upon Clean Lines

or Data Loss Occurs

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Addressing WorstPerforming Circuits

Substation

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Post Storm ForensicsPre-Storm Survey Example

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Post Storm ForensicsPOST Storm Survey Example

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EXACTER Findings

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Exacter Database Component Class Distribution

LA9%

Underground1%

Non-Utility2%

Connector5%

Misc2%

Ground1%

Switch3%

Cut Out6%

Transformer3%

Pole HW5%

Pin Insulator32%

Dead End13%

Insulator18%

AMI &Reliability

CollateralDamage

Operations&Safety

AssetProtection

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National Survey Statistics

• 99% of Structures HaveNo Recommended Action

• 1% Which RequireMaintenance Are:– Safety Issues– Protection Issues– Susceptible Collateral Damage– TVI or AMI Issues

99.2%

Poles Without Problems

0.8%

Poles With Problems

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Cutout Case Study• Problem: A Midwest IOU experienced 6000

cutout failures in 2006 with an estimated costof $3500/failure. Avoidable cost $21MM.

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ROI Impact AnalysisBusiness Value through SAIDI Contribution

Incl. Repair Costs at $500/Location(actual utility costs are used)

CMI for targeted circuits

Contribution MinutesAssuming population of 1.2M

ROI SUMMARY1 Minute SAIDI Reduction = $ Business Value

Larger Utilities = Avg. $3M-$4M Per SAIDI Minute

Territory Scope# o f Feeders 20

OH Distribution Miles 788

ABC Utility Project ROI Summary

CostTOTAL COST (inc l repairs) $ 334,900

Repair Costs $ 98,500EX ACTER only $ 236,400

CMI/ year 6,588,739Impact Rate 10%CMI Savings/Yr 658,874

Cost Benefit Analysis

SAIDI CONTRIBUTION 0.55

Value @ 1.5MSAIDIMIN $ 823,592ROI 1.5MSAIDI MIN 246%

Value @ 2.5MSAIDIMIN $ 1,372,654ROI 2.5MSAIDIMIN 410%

Value @ 3.5MSAIDIMIN $ 1,921,716ROI 3.5MSAIDI MIN 574%