Market Access Regulation – Monitoring and Reporting Data ...
Transcript of Market Access Regulation – Monitoring and Reporting Data ...
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Market Access Regulation Monitoring and Reporting Data
Monitoring Electric Utility Performance
June 19, 2014
Peter Baker
Section Chief in the Reliability and Service Analysis Division Service Monitoring & Enforcement Department
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These are the agenda items that I will address
• Required reporting of utility performance (SAIFI, CAIDI, and other measures)
• Analysis to determine compliance and identify issues
• Ensuring data validity and authenticity
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The PUCO Staff reviews utility reports to monitor:
• Compliance with Reliability Standards
• Improvement of Worst-Performing Circuits
• Sufficiency of Construction and Maintenance Expenditures
• Compliance with Inspection Requirements
• Compliance with Maintenance Programs
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Monitoring Compliance with Reliability Standards
• Each electric utility is required to file an annual report of its reliability performance compared to reliability standards.
• If the utility misses one of its reliability standards, it must submit an action plan to improve performance.
• If the utility misses the same performance standard two years in a row, it is considered out of compliance with the rule.
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The annual reliability report must contain the following information:
• The utility’s performance compared to standards
• Additional supporting data
• A listing of outages excluded from the report
• An analysis of outages by cause
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Measuring Reliability
• The PUCO measures reliability using SAIFI and CAIDI
• SAIFI represents the average number of interruptions per customer
• CAIDI represents the average time to restore service to interrupted customers
• SAIFI and CAIDI calculations are based on sustained interruptions, which involve a complete loss of power for over five minutes
• SAIFI and CAIDI calculations exclude data for major events and transmission outages
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Excluding Major Events
• Previously, utilities were required to exclude “major storms” from performance data, and each utility was allowed to develop its own “major storm” definition.
• As a result, there were variations among utilities on how their major storm exclusions affected their respective performance.
• To address this problem, the Institute of Electrical and Electronics Engineers (IEEE) developed the “2.5 Beta” methodology for establishing a standardized “major event” threshold.
• The 2.5 Beta method is a statistical methodology which excludes any day when the average duration of interruptions across a utility’s system is more than 2-1/2 standard deviations above the mean for the past five years.
• The current PUCO rules adopt the IEEE methodology
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Reliability Standards
• The PUCO has established reliability standards for each utility
• Standards are based mostly on historical system performance, but can also be influenced by:
– System design
– Technological advancements
– Service area geography
– Customer perception surveys
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Reliability Surveys
• Each electric utility is required to conduct periodic survey to measure customers’ reliability perceptions and expectations
• The survey is paid for by the utility, and is developed and conducted under Staff supervision
• The survey results are considered in the establishment of performance standards
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Establishing Reliability Standards
The electric utility must file an application that includes:
• A methodology for establishing reliability standards
• The proposed standards resulting from that methodology
• Justification supporting the proposed standard
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The legal process to establish the standards includes the following steps:
• A technical conference is convened to explain the utility’s application
• Interested parties file comments on the application
• Staff files comments on the application
• Utilities and interested parties file reply comments
• The commission may order a hearing
• Interested parties may participate in the hearing after they file a motion to intervene
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Analysis to Determine Compliance and Identify Issues
• PUCO Staff monitors performance by analyzing the utilities’ annual reliability reports
• If the utility meets its reliability standards, Staff would look for any adverse performance trends
• If performance misses the standard, Staff would assess the sufficiency of the utility’s action plan for improving performance
• If the utility misses a standard two years in a row, Staff would investigate the circumstances and recommend any needed enforcement action, which could include:
– Corrective action to return to compliance
– Restitution to customers
– Fines up to $10,000 per day
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Ensuring the Validity and Authenticity of the Reported Reliability Data
• The annual reliability report must include the factors used in the formula to calculate performance
• The report also includes an analysis of outages by cause and a listing of excluded outages, which must be consistent with the data used to calculate reliability performance
• Staff also has audited the utilities’ exclusion of major events to ensure its accuracy
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Sample Reliability Report
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Sample Reliability Report
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Monitoring Improvement of Worst-Performing Circuits
• A distribution circuit extends from the distribution substation to each of the customers on that circuit
• Each electric utility is required to submit to Staff (for review and acceptance) a method for measuring the performance of its distribution circuits
• That method must include SAIFI and CAIDI, but may also include other factors as well
• Once the method is accepted, the utility must use it to rank its circuits in terms of their performance
• The utility must include the eight-percent worst-performing circuits in an annual report to Staff
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The annual report must include the following:
• The circuit ID number, location, and number of customers
• The circuit ranking value
• The circuit’s SAIFI, SAIDI, and CAIDI performance
• The number of safety and reliability complaints
• The number of critical customers on the circuit
• A listing of circuit lock-outs with associated cause and duration
• A listing of outages by cause with associated frequency and customer minutes interrupted
• Identification of major factors causing the circuit to be reported
• An action plan to remove the circuit from the report within the next two reporting periods
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Analysis to Determine Compliance and Identify Issues
• Staff identifies those circuits that appear on the report in consecutive years
• For those circuits, Staff analyzes outage causes and the utility’s remedial action plans to see if they are sufficient to remove the circuit
• If a circuit remains on the report for three consecutive years, it is considered out of compliance
• For those circuits, Staff would investigate the circumstances and recommend any needed enforcement action
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Ensuring the Validity and Authenticity of the Reported Circuit Data
• Staff reviews the reported data for consistency
• For example, the worst-ranking circuit in the report should also have a high SAIFI or CAIDI value (and vice-versa)
• Also, if we received many more customer complaints about a given circuit compared to other circuits, we would expect to see that circuited listed in the annual report of worst-performing circuits.
• Staff also tracks the utility’s completion of remedial actions and preforms field audits to verify such completion on a sample of circuits
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Monitoring Construction and Maintenance Expenditures
• Each utility is required to annually report its expenditures for distribution maintenance and construction
• The report includes the following ratios: – Total maintenance expenditures / total distribution
investment
– Total construction expenditures / total distribution investment
• The report also includes a comparison of actual expenditures to budget with an explanation for any budget variances exceeding 10 percent
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Analysis to Determine Compliance and Identify Issues
• Staff trends the each utility’s spending ratios from year to year to identify adverse trends
• Staff also reviews the utility’s variance explanations for reasonableness
• Staff considers spending levels in combination with other indicators such as missed reliability standards and repeated worst circuits to identify systemic problems
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Ensuring Data Validity and Authenticity of Reported Expenditure Data
• Utility expenditure data is also reported in fiscal reports to the PUCO and in annual reports to the Federal Energy Regulatory Commission
• This reporting should be consistent, and this data is audited in the context of proceedings to adjust utility rates
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Monitoring Compliance of Inspection Requirements
Each electric utility is required to: – Inspect each of its distribution circuits at least once every
five years
– Inspect each of its substations at least 12 times a year, and the interval between inspections must not exceed 40 calendar days
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Monitoring Compliance of Inspection Requirements (Cont.)
The utility is also required to submit an annual report, which shall include: • A list of circuits inspected during the year and the date of
inspection for each
• A list of substations inspected during the year and the inspection dates for each
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Analysis to Determine Compliance and Identify Issues
• If the report indicates that the utility does not meet an inspection requirement, Staff investigates the circumstances and recommends any needed enforcement action
• Staff also reviews sample inspection and repair reports to see if repairs are made in a timely fashion
• Finally, Staff performs follow-up field audits to verify that deficiencies were actually corrected
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Ensuring Data Validity and Authenticity of Reported Inspection Data
• Staff maintains a database of prior-year circuit inspections and compares current reports with prior-year data to verify the five-year inspection requirement has been met
• Staff also samples individual inspection reports that document the inspections performed
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Monitoring Compliance of Maintenance Programs
Each electric utility is required to file proposed maintenance programs for: • Poles and towers
• Circuit inspections
• Primary and secondary enclosures (e.g., pad-mounted transformers, switch gear, pedestals)
• Line reclosers
• Line capacitors
• Right-of-way vegetation control
• Substations
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Monitoring Compliance of Maintenance Programs (Cont.)
• Once the programs are approved, the utility is required to annually report its performance against each maintenance program’s goals, and explain why any goals were not met
• As an example, a utility might have a goal to trim trees on circuits totaling a given number of miles. The utility would report:
– The mileage goal,
– The actual mileage trimmed,
– The percent of goal achieved, and
– An explanation if the goal were missed.
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Analysis to Determine Compliance and Identify Issues
• Staff reviews the utility’s reported achievement of its maintenance goals to assess the utility’s compliance with its approved maintenance programs
• If Staff believes utility’s performance is unsatisfactory, it will investigate the circumstances to determine if it should recommend further action
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Ensuring Data Validity and Authenticity of Reported Goal-Achievement Data
• Staff reviews the reported program goals to ensure they are consistent with the approved maintenance program
• Staff also reviews documentation supporting the reported performance against maintenance program goals
• Finally, Staff performs field audits to verify reported performance on a sample of program activities
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This concludes the presentation about Monitoring Electric Utility Performance
Are there any other questions?