Transmission and Distribution (T&D) Volume 7 – Grid Operations · SCE’s Grid Operations organization (Grid Operations) is responsible for five major activities, as listed below

Application No.: Exhibit No.: SCE-03, Vol. 07 Witnesses: P. Grigaux

(U 338-E)

2015 General Rate Case

Transmission and Distribution (T&D) Volume 7 – Grid Operations

Before the

Public Utilities Commission of the State of California

Rosemead, CaliforniaNovember 2013

SUMMARY

SCE’s Grid Operations organization (Grid Operations) is responsible for five major activities, as

listed below.

1. Operate and monitor the bulk power system, which consists of SCE electrical facilities of

voltage from 115 kV to 500 kV,

2. Operate and monitor the sub-transmission and distribution system which consists of electrical

facilities of voltages from 120 V to 66 kV,

3. Be first responders to customer calls and service restoration after an unplanned outage,

4. Manage Transmission & Distribution operational unit’s storm response, and

5. Inspect and maintain SCE’s street and outdoor lighting system.

This exhibit presents SCE’s requests for $112 million in O&M expenses for the 2015 Test Year

and $522 million in capital expenditures from 2013-2017 to effectively perform its functions.

Grid Operations O&M Expenses 2015 Forecast

(Total Company Constant 2012 $Million)

T&D Engineering and Grid Technology (Volume

2)$54 8%

Customer Driven Prog & Distr. Con. (Volume 5)

$16 2%

Distribution Maintenance (Volume 6, Part 1)

$190 30%

Pole Loading (Volume 6, Part 2)

$39 6%

Grid Operations (Volume 7)

$112 18%

Transmission & Substation Maintenance

(Volume 8)$86

13%

Safety, Training, and Environmental

Programs (Volume 9)$68

11%

T&D Other Costs and OOR (Volume 10)

$76 12%

Grid Operations CPUC-Jurisdictional Capital Expenditures

2013-2017 Forecast (Nominal $Million)

T&D Engineering and Grid Technology

(Volume 2), $183 , 1%

System Planning Capital Projects

(Volume 3), $2,165 , 18%

Infrastructure Replacement Programs

(Volume 4), $2,032 , 17%

Customer Driven Prog & Distr. Con.(Volume

5), $3,158 , 26%

Distribution Maintenance (Volume

6, Part 1), $2,519 , 21%

Pole Loading (Volume 6, Part 2), $1,078 , 9%

Grid Operations (Volume 7), $511 ,

4%Transmission &

Substation Maintenance (Volume

8), $438 , 4%

SCE-03: Transmission & Distribution

Volume 7 – Grid Operations

Table Of Contents Section Page Witness

-i-

I. GRID OPERATIONS ........................................................................................1 P. Grigaux

A. Introduction ............................................................................................1

1. Forecast O&M Expenses and Capital Expenditures ..................1

2. Comparison of 2012 GRC Authorized and Recorded Costs ..........................................................................3

a) O&M Expenses ..............................................................3

b) Capital Expenditures ......................................................4

II. WORK ACTIVITIES ........................................................................................5

A. Operating the Grid Control Center (GCC) (FERC Account 561.170) .................................................................................................5

1. Monitoring and Operating SCE’s Bulk Power System ........................................................................................5

2. Coordinating Planned Outages ..................................................5

3. Developing and Maintaining Procedures ...................................6

a) Cost Forecast ..................................................................7

B. Operating the Substation and Distribution System (FERC Accounts 562.170 and 582.170) ............................................................8

1. Cost Forecasts ..........................................................................13

C. Storm Response ...................................................................................14

1. Storm Response Expenses (FERC Accounts 573.170 and 598.170) ..............................................................14

a) Cost Forecasts ..............................................................16

2. Storm Response Capital Expenditures .....................................17

a) Cost Forecasts ..............................................................19



Table Of Contents (Continued)

Section Page Witness

-ii-

D. Responding to Unplanned Events and Customer Calls (FERC Account 583.170) ....................................................................20

1. Cost Forecast ............................................................................21

E. Managing the Street and Outdoor Lighting System (FERC Account 585.170) .................................................................................22

1. Streetlight O&M Expenses (FERC Account 585.170) ...................................................................................22

a) Streetlight Inspection and Maintenance (Portion of FERC Account 585.170) ...........................23

(1) Cost Forecast ....................................................24

b) Streetlight Operations and Billing (Portion of FERC Account 585.170) .........................................25

(1) Cost Forecast ....................................................25

2. Capital Expenditures ................................................................26

a) Steel Pole Replacements (WBS Element CET-PD-OT-SL-SP) ....................................................27

b) Luminaire Replacements .............................................28

c) Breakdown Replacements ............................................28

F. Grid Operations Support Expenses (FERC Account 588.170) ...............................................................................................28

1. Circuit Mapping (Portion of FERC Account 588.170) ...................................................................................29

a) Cost Forecast ................................................................30

2. Outage Data Management (Portion of FERC Account 588.170) .....................................................................30

a) Cost Forecast ................................................................32

G. Service Guarantees 2 and 3 (FERC Account 587.170)........................32



Table Of Contents (Continued)

Section Page Witness

-iii-

a) Cost Forecast ................................................................34

H. Operational Facilities Maintenance .....................................................34

1. Cost Forecast ............................................................................35

Appendix A Witness Qualifications ................................................................................



List Of Figures

Figure Page

-iv-

Figure I-1 Grid Operations O&M Expenses 2012 Authorized vs. Recorded (Constant

2012 $000) .............................................................................................................................................3

Figure I-2 Grid Operations Capital Expenditures 2012 Authorized vs. Recorded (Nominal

$000) ......................................................................................................................................................4

Figure II-3 Grid Control Center Operation Expenses FERC Account 561.170 Recorded

and Adjusted 2008-2012/Forecast 2013-2015 (Constant 2012 $000) ...................................................7

Figure II-4 Transmission Substation Operations GRC Account 562.170 Recorded and

Adjusted 2008-2012/Forecast 2013-2015 (Constant 2012 $000) ........................................................12

Figure II-5 Distribution Substation Operations GRC Account 582.170 Recorded and


Figure II-6 Substation and Transmission Storm Response Expenses FERC Account

573.170 Recorded and Adjusted 2008-2012/Forecast 2013-2015 (Constant 2012

$000) ....................................................................................................................................................15

Figure II-7 Distribution Storm Response Expenses FERC Account 598.170 Recorded and


Figure II-8 Transmission Storm Capital Expenditures WBS Element CET-PD-ST-TS

Recorded 2008-2012/Forecast 2013-2017 (Constant 2012 and Nominal $000) .................................17

Figure II-9 Substation Storm Capital Expenditures WBS Element CET-PD-ST-SS


Figure II-10 Distribution Storm Capital Expenditures WBS Element CET-PD-ST-DS


Figure II-11 Troubleman Activity Expenses FERC Account 583.170 Recorded and


Figure II-12 Streetlight Expenses FERC Account 585.170 Recorded and Adjusted 2008-

2012/Forecast 2013-2015 (Constant 2012 $000) .................................................................................23

Figure II-13 Streetlight Capital Expenditures WBS Element CET-PD-OT-SL Recorded

2008-2012/Forecast 2013-2017 (Constant 2012 and Nominal $000)..................................................26



List Of Figures (Continued)

Figure Page

-v-

Figure II-14 Grid Operations Support Expenses FERC Account 588.170 Recorded 2008-


Figure II-15 Service Guarantee Expenses FERC Account 587.170 Recorded 2008-


Figure II-16 Operational Facilities Maintenance Capital Expenditures WBS Element

CET-PD-OT-FO Recorded 2008-2012/Forecast 2013-2017 (Nominal and Constant

2012 $000) ...........................................................................................................................................35



List Of Tables

Table Page

-vi-

Table I-1 Grid Operations Summary of 2015 O&M Forecast (Constant 2012 $000) ................................2

Table I-2 Grid Operations Summary of 2013-2017 Capital Expenditures Forecast

(Nominal $000) ......................................................................................................................................2

Table II-3 Number of Planned Outages by Year Processed by the GCC ....................................................6

Table II-4 Number of Switching Procedures Performed (Includes Planned and

Unplanned Work) 2008 to 2012 ............................................................................................................9

Table II-5 Substation Operations FERC Accounts 562.170 and 582.170 Recorded and


Table II-6 Streetlight Inspection and Maintenance Expenses Portion of FERC Account

585.170 Recorded 2008-2012/Forecast 2013-2015 (Constant 2012 $000) .........................................24

Table II-7 Streetlight Operations and Billing Expenses Portion of FERC Account 585.170

Recorded 2008-2012/Forecast 2013-2015 (Constant 2012 $000) .......................................................25

Table II-8 Streetlight Capital Expenditure Forecasts WBS Element CET-PD-OT-SL

(Constant 2012 and Nominal $000) .....................................................................................................27

Table II-9 Circuit Mapping Expenses Portion of FERC Account 588.170 Recorded and


Table II-10 Outage Data Management Expenses Portion of FERC Account 588.170

Recorded and Adjusted 2008-2012/Forecast 2013-2015 (Constant 2012 $000) .................................32

1

I. 1

GRID OPERATIONS 2

A. Introduction 3

SCE’s transmission, sub-transmission, and distribution grid requires constant oversight and 4

control to provide safe, reliable, and continuous electrical service to its customers. Grid Operations, in 5

partnership with federal and state regulatory agencies, is responsible for monitoring and operating SCE’s 6

transmission and distribution system, which ranges from 120 volts to 500,000 volts and covers more 7

than 50,000 square miles of territory. 8

Operating the electrical system requires a staff of highly trained employees capable of 9

coordinating planned outages and responding to emergency situations, at times in extremely stressful 10

conditions. Grid Operations personnel must monitor transmission equipment, sub-transmission 11

equipment, and distribution circuits and coordinate the actions of field personnel performing switching 12

during planned outages for construction or maintenance, or during unplanned outages for service 13

restoration and isolation of problems. System operators work closely with first responders in the field 14

(i.e., troublemen and substation operators) to restore service. These activities all require the support 15

from staff responsible for regulatory reporting, maintenance of databases critical to safe and effective 16

operation of the grid, and management of the organization as a whole. In addition, Grid Operations is 17

responsible for inspecting, maintaining, and repairing over 700,000 street and outdoor lights. 18

1. Forecast O&M Expenses and Capital Expenditures 19

Table I-1 and Table I-2 below provide SCE’s Grid Operations O&M expense and capital 20

expenditure forecasts, which are described and supported in this chapter. 21

2

Table I-1 Grid Operations

Summary of 2015 O&M Forecast (Total Company Constant 2012 $000)

Account Activity 2015561.170 Grid Control Center Operations $8,835562.170 Transmission Substation Operations $18,667573.170 Substation and Transmission Storm Expenses $1,536582.170 Distribution Substation Operations $26,206583.170 Troubleman Activities $32,665585.170 Streetlight Expenses $8,763587.170 Service Guarantees $489588.170 Grid Operations Support $2,699598.170 Distribution Storm Expenses $12,431

Total O&M Expenses $112,291

Table I-2 Grid Operations

Summary of 2013-2017 Capital Expenditures Forecast (Total Company Nominal $000)

Activity 2013 2014 2015 2016 2017 TotalSubstation Storm $309 $316 $325 $330 $338 $1,619Transmission Storm $4,462 $4,562 $4,683 $4,760 $4,876 $23,342Distribution Storm $41,181 $42,206 $43,102 $44,066 $45,256 $215,810Streetlights $62,584 $50,947 $45,452 $46,468 $47,723 $253,174Operational Facilities Maintenance $4,600 $5,600 $5,749 $5,843 $5,985 $27,777 Total Expenditures $113,136 $103,631 $99,310 $101,466 $104,179 $521,721

3

2. Comparison of 2012 GRC Authorized and Recorded Costs

a) O&M Expenses 1

Figure I-1 Grid Operations O&M Expenses

2012 Authorized vs. Recorded (Total Company Constant 2012 $000)

($0.5)

$8.0

($16.6) ($1.2) ($2.0) ($0.4)

-

25

50

75

100

125

150

2012Authorized

GCC SubstationOps

Storm Troublemen Streetlights Misc. 2012Recorded

GCC Substation Ops Storm Troublemen Streetlights Misc. Diff from Auth

$116.0

$103.7

In the 2012 GRC, the Commission authorized $116 million for the Grid Control 2

Center (GCC) and substation operations, troublemen activities, storm related maintenance, and 3

streetlight inspection and maintenance for the 2012 test year, and SCE recorded $104 million, as shown 4

in Figure I-1 above. Most of the $12 million difference was due to recorded storm-related O&M 5

expenses (which fluctuate and are hard to predict) being significantly lower than authorized, offset by 6

higher than authorized spending in substation operations, as Grid Operations began to increase its 7

system operator and substation operator workforce to handle an increased workload. 8

4

b) Capital Expenditures 1

Figure I-2 Grid Operations Capital Expenditures

2012 Authorized vs. Recorded (Total Company Nominal $000)

($14.55) ($0.91)

$1.41

-

10

20

30

40

50

60

70

2012 Authorized Storm Mtce Streetlight Mtce Operational Facilities 2012 Recorded

Storm Mtce Streetlight Mtce Operational Facilities Diff from Auth

$63.17

$50.93

In the 2012 GRC, the Commission authorized $63 million for storm related 2

maintenance, streetlight maintenance, and for operational facility maintenance for the 2012 test year, 3

and SCE recorded $51 million as shown in Figure I-2 above. Most of the $12 million difference was 4

due to recorded storm-related capital expenditures being lower than authorized. SCE spent slightly less 5

than authorized in streetlight maintenance. SCE also had an unanticipated increase in work to maintain 6

substation buildings, which required $1.4 million higher than authorized expenditures. 7

5

II. 1

WORK ACTIVITIES 2

A. Operating the Grid Control Center (GCC) (FERC Account 561.170) 3

The Grid Control Center (GCC) is responsible for the overall monitoring and control of SCE’s 4

transmission system. The GCC acts as the primary point of contact for the California Independent 5

System Operator (CAISO) and has the authority and obligation to make decisions regarding SCE’s 6

transmission grid operations during normal and emergent conditions. These activities are critical for 7

maintaining system reliability and meeting regulatory compliance requirements. The GCC staff 8

currently consists of 34 employees, including power system operators, operating engineers, and 9

managers. GCC activities can be categorized into three main responsibilities: monitoring and operating 10

SCE’s bulk power system, coordinating planned outages, and developing and maintaining operating 11

procedures. 12

1. Monitoring and Operating SCE’s Bulk Power System 13

GCC personnel monitor the bulk power system around the clock from a single control 14

room using SCE’s Energy Management System (EMS) and a dynamic dispatch map board that 15

graphically depicts the status of SCE’s and adjacent utility’s bulk power systems. GCC personnel use 16

these tools to monitor operating parameters such as voltage, frequency, power flow, and equipment 17

status. When system conditions change, the power system operators and engineers access the 18

information in real time, determine if corrective action is necessary, and instruct SCE’s 14 switching 19

centers to execute the necessary actions. As a regulatory requirement and prudent business practice, 20

Grid Operations also maintains a separate Alternate Grid Control Center (AGCC) as a backup to its 21

primary control room.1 In the event the GCC becomes inoperable, the AGCC will allow SCE to meet 22

regulatory requirements to operate and monitor its bulk power system with minimal interruption. 23

2. Coordinating Planned Outages 24

The GCC manages the outage coordination activity for SCE with the CAISO and external 25

parties, such as neighboring utilities. For example, outages are planned to allow crews to install, 26

remove, or repair equipment on the bulk power system. The GCC also coordinates outage parameters, 27

i.e., location, schedule and duration, with the CAISO and any adjacent utilities to optimize work and 28

reliability. Similarly, when external parties, such as neighboring utilities, schedule outages or need to 29

1 The AGCC is required under NERC Standard EOP-008-1 (Loss of Control Center Functionality).

6

work on their equipment, the GCC manages the communications and coordination for SCE, to maintain 1

system reliability and minimize risk of service impacts to customers. 2

GCC personnel play key governance and control role during planned outages to facilitate 3

reliability of the bulk-power grid and safety of the personnel working on it. They study and review 4

outage requests for operational feasibility, adherence to established operational procedures, and impact 5

on power flow. Detailed technical analyses are conducted to identify and address any operational 6

concerns or constraints, and to establish necessary outage parameters. As maintenance work requests 7

come to the GCC, power flow, dynamic stability, and post-transient voltage stability analyses are 8

performed to evaluate and plan for the safe and reliable operation of the bulk power system during the 9

outage. These studies help identify any load or generation limits that may need to be imposed before an 10

outage can proceed. 11

When an outage has ended, when power flow is being restored, or when new equipment 12

is placed in service on the bulk power system, the GCC determines the proper procedure to safely 13

energize the equipment and place it back in service. 14

Table II-3 below demonstrates that the number of planned outage requests processed by 15

the GCC during the 2008-2012 periods has steadily increased. This increase is expected to continue in 16

the future, as major transmission and substation projects are completed, and new lines, transformers, and 17

other equipment are put into service. 18

Table II-3 Number of Planned Outages by Year Processed by the GCC

2008 2009 2010 2011 2012Planned Outages 13,675 14,041 15,494 16,571 16,969

3. Developing and Maintaining Procedures 19

The GCC also develops, implements, and maintains procedures for power system 20

operators and switching center operators to use when performing real-time operational activities, which 21

helps maintain reliability during both normal and emergency operating conditions. Procedures 22

developed by the GCC that involve lines and equipment under the CAISO’s purview is submitted to the 23

CAISO for review. This process enables proper coordination and continuity with any applicable CAISO 24

operating procedures. 25

GCC personnel are responsible for compliance with several NERC reliability standards - 26

Transmission Operations and Monitoring, Emergency Preparedness and Operations, Interconnection 27

7

Reliability Operation and Coordination, and Voltage and Reactive (VAR). When these NERC standards 1

change, GCC personnel must develop new procedures and participate in any additional training required 2

to meet the new standards. 3

Figure II-3 Grid Control Center Operation Expenses

FERC Account 561.170 Recorded and Adjusted 2008-2012/Forecast 2013-2015

(Total Company Constant 2012 $000)

2008 2009 2010 2011 2012 2013 2014 2015 Labor $3,883 $4,403 $4,867 $4,930 $4,933 $6,048 $6,207 $6,526 Non-Labor $2,022 $1,886 $1,408 $1,585 $1,745 $2,140 $2,196 $2,308 Total Expenses $5,905 $6,289 $6,275 $6,515 $6,678 $8,187 $8,403 $8,835

GCC Employees 27 29 31 31 31 38 39 41Cost per Employee $144 $152 $157 $159 $159 $159 $159 $159

Ratio of Labor to Total 66% 70% 78% 76% 74% 74% 74% 74%

Basis of Forecast: 2012 Recorded Cost per GCC employee times number of GCC personnelBasis of Labor/Non-Labor Split: 2012 Labor/Non-Labor Ratio

Recorded Forecast

$‐

$2,000

$4,000

$6,000

$8,000

$10,000

a) Cost Forecast 4

Figure II-3 above shows the recorded and forecast costs for this activity. The 5

labor costs in this activity are driven by the number of GCC personnel. Costs increased from 2008 to 6

2010 as more operators and operating engineers were added to meet work demand. Since 2010, costs 7

have remained relatively stable. As shown in Table II-3, the number of planned outages to facilitate 8

SCE's bulk power system expansion has increased by 24% from 2008 to 2012. This system expansion 9

has also contributed to the increasing number of electrical assets that need to be monitored, controlled 10

and operated. In 2008, the Energy Management System (EMS) contained a total of 250,000 data points, 11

8

a measure of electrical assets and nodes across the grid that requires operational oversight. EMS data 1

points have increased to almost 305,000 by 2012, a more than 20% increase. With the anticipated 2

ongoing capital investments over the next several years, the increase in assets and data points is 3

expected to continue at a similar pace. 4

In the 2012 GRC, SCE requested funding at a level to support a staff of 39 GCC 5

employees. The 2012 GRC decision subsequently approved expenses at a level to support 35 6

employees. By early 2013, SCE had filled five of the six additional authorized positions. In order to 7

meet the increasing workload and regulatory requirements, and to provide appropriate monitoring and 8

control of SCE’s bulk power system, SCE forecasts labor expenses to increase, as additional GCC 9

personnel are required. SCE also needs to increase staffing now to prepare for impending retirements of 10

highly qualified and experienced personnel. The GCC must maintain a pipeline of trained personnel, as 11

it takes several years for a power system operator to be adequately trained to perform this function. 12

In total, a GCC staff of 41 is required by 2015 for the GCC and AGCC to be 13

adequately staffed to handle the workload going forward. The increased staff includes power system 14

operators and engineers for the AGCC, an additional manager to allow for round-the-clock management 15

coverage, and additional power system operators, who must be trained and ready to take over for 16

personnel that will soon be retiring. 17

To develop the labor expense forecast for this activity, SCE utilized the 2012 18

recorded labor cost of $159,000 per GCC employee.2 SCE multiplied this cost per employee by the 19

number of GCC employees SCE expects to have for 2013-2015. 20

Non-labor expenses include employee-related expenses and allocated costs from 21

business operations. The ratio of labor costs to total costs has reduced slightly from 2010 to 2012. The 22

2012 labor to total cost ratio best represents future costs, so that ratio was utilized to forecast non-labor 23

expenses. The O&M forecast for GCC Operations is summarized in Figure II-3. 24

B. Operating the Substation and Distribution System (FERC Accounts 562.170 and 582.170) 25

While the GCC is responsible for the monitoring and control of the bulk power system, the day-26

to-day operation of the sub-transmission and distribution system is carried out by 14 switching centers 27

geographically dispersed around the system. The operation of these switching centers relies primarily 28

on two types of employees: system operators and substation operators. 29

2 The $159,000 cost per operator is the average recorded labor cost for GCC employees in 2012.

9

System operators are stationed within the switching centers and are responsible for remotely 1

operating the portion of the transmission, sub-transmission and distribution system within their 2

geographic control area. This requires that each switching center comply with published system 3

operating bulletins that set operating parameters for electrical control equipment on the system. In 4

addition, there are 844 manned and unmanned substations on the system. 5

In addition to monitoring and operating the portion of the grid they are responsible for, system 6

operators also write switching programs that are used to electrically isolate, energize, or test equipment 7

in the field in support of maintenance or capital work. The increasing number of switching procedures, 8

as shown in Table II-4 below, is based on the amount of work performed by transmission, substation, 9

and distribution construction and maintenance organizations. SCE anticipates that this growth in 10

switching procedures will continue in the coming years because of the increases in capital and O&M 11

work discussed throughout T&D’s testimony.3 12

Table II-4 Number of Switching Procedures Performed

(Includes Planned and Unplanned Work) 2008 to 2012

2008 2009 2010 2011 2012Switching Procedures 46,858 53,793 56,970 60,057 60,265

Substation operators perform three primary functions: visually inspecting substation equipment, 13

performing routine switching, and performing emergency switching. Substation operators travel to 14

various substations within their assigned geographical areas to perform their work. 15

Monthly visual inspections of transformers, regulators, circuit breakers, and other substation 16

equipment are performed by substation operators. In addition to these visual inspections, the Substation 17

Construction and Maintenance (SC&M) group, as discussed in Mr. Kedis’ testimony in Exhibit SCE-03, 18

Volume 8, performs detailed inspections and performs maintenance on substation equipment on a 19

scheduled basis. The information gathered from both of these inspections is used for planning 20

substation maintenance work. Substation operators also inspect the physical facilities and perimeter of 21

substations for damages to structures (including vandalism), and encroachments by vegetation or 22

wildlife. These inspections are required by regulatory agencies, including CAISO, CPUC and WECC, 23

3 For examples, please see Mr. Lee’s Infrastructure Replacement testimony in Exhibit SCE-03, Vol. 4, and Mr. Trainor’s

Pole Loading Program testimony, in Exhibit SCE-03, Vol. 6, Part 2.

10

and are critical to the safety of both SCE crews and the public. In 2013, the CPUC adopted General 1

Order 174, which requires monthly inspections of all substations. In addition to mandated inspections, 2

substation operators investigate reports of unusual events at SCE’s substations, such as alarms generated 3

by equipment within the substation or reports from the public, an animal inside a substation, intrusion by 4

unidentified parties into the substation, or a change in equipment status due to an earthquake or storm. 5

Substation operators also perform both routine switching to support planned work that requires 6

an outage, and emergency switching to respond to any unplanned events that affect the grid. Routine 7

switching involves de-energizing and isolating equipment that requires maintenance or capital work. All 8

switching done by substation operators is performed at the substations, as opposed to remote switching 9

performed by system operators from switching centers. To perform this work, substation operators 10

follow detailed switching procedures written by system operators. Substation operators perform 11

switching procedures several times per day in order to support construction, maintenance, and routine or 12

emergency troubleshooting activities. 13

Emergency switching is done in response to any unplanned event that interrupts the flow of 14

power on the grid. Substation operators are the first responders to inspect and assess damage caused by 15

an unplanned event within a substation. Switching for emergencies differs from routine switching for 16

maintenance in that it is reactive and performed specifically to isolate damaged equipment and safely 17

restore the flow of electricity to customers. In the case of emergency switching, a substation operator 18

assesses the status of the damaged equipment and reports it to a system operator. Based on this 19

assessment, the substation operator prepares a draft emergency switching procedure and submits it to the 20

system operator for review and approval. Once approved, a system operator directs a substation 21

operator to perform the necessary switching. 22

11

Table II-5 Substation Operations

FERC Accounts 562.170 and 582.170 Recorded and Adjusted 2008-2012/Forecast 2013-2015


2008 2009 2010 2011 2012 2013 2014 2015Labor $24,803 $26,305 $31,213 $30,028 $30,609 $31,214 $31,214 $31,214Non-Labor $9,190 $8,788 $12,526 $11,451 $13,396 $13,659 $13,659 $13,659 Total $33,993 $35,093 $43,739 $41,479 $44,005 $44,873 $44,873 $44,873

Operators 174 191 191 207 217 225 225 225Labor Cost per Operator $143 $138 $163 $145 $141 $139 $139 $139


Basis of Forecast: 2012 Recorded Cost Per Operator (less 3%) times Number of OperatorsBasis of Labor/Non-Labor Split: 2012 Labor/Non-Labor Ratio

Recorded Forecast

12

Figure II-4 Transmission Substation Operations

GRC Account 562.170 Recorded and Adjusted 2008-2012/Forecast 2013-2015




Basis of Forecast: Last Year RecordedBasis of Labor/Non-Labor Split: 2012 Labor/Non-Labor Ratio

Recorded Forecast

$‐

$5,000

$10,000

$15,000

$20,000

13

Figure II-5 Distribution Substation Operations

GRC Account 582.170 Recorded and Adjusted 2008-2012/Forecast 2013-2015




Basis of Forecast: Last Year RecordedBasis of Labor/Non-Labor Split: 2012 Labor/Non-Labor Ratio

Recorded Forecast

$‐

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

1. Cost Forecasts 1

Substation operation expenses are recorded to either a transmission or a distribution 2

account, depending on the work being performed. SCE developed a single forecast and then allocated 3

the costs between transmission and distribution accounts. As shown in Figure II-5 above, costs 4

increased beginning in 2009 and increased again in 2010 as SCE hired additional system and substation 5

operators to handle increased workload. Costs remained relatively constant from 2010 to 2012 for 6

substation operation expenses. SCE plans to hire eight additional system operators in 2013 to allow for 7

optimal coverage of switching center requirements.4 These additional system operators will result in 8

savings of over $500,000 in overtime expenses, which will reduce the average labor cost per operator 9

4 Adequate staffing requires one operator per A-bank during the day and one operator for every 2-5 A-banks in the

evening and weekends. SCE’s current staffing levels require operators to work overtime at unsustainable levels to provide the necessary coverage.

14

from recorded 2012 costs of $141,000 to $139,000.5 To develop the forecast, SCE multiplied $139,000 1

by the total number of operators required in 2013-2015. SCE allocated its forecast between transmission 2

and distribution based on recorded 2012 costs. The forecasts for Transmission and Distribution 3

Substation Operations O&M expenses are summarized in Figure II-4 and Figure II-5 above. 4

C. Storm Response 5

SCE’s electrical system can be impacted by both weather conditions (including rain, wind, 6

lightning, and heat) and by natural disasters (such as earthquakes and forest fires). Storms are declared 7

based on pre-established criteria that take into account the magnitude of the storm and the response 8

required to provide timely restoration of service to customers. Once a storm is declared, Grid 9

Operations initiates notification and assembly of appropriate personnel for situation assessment, service 10

restoration, and communication within SCE and with external agencies. SCE incurs both O&M 11

expenses and capital expenditures to restore service caused by storm conditions. 12

1. Storm Response Expenses (FERC Accounts 573.170 and 598.170) 13

Storm O&M expenses include costs incurred to manage the storm command center, 14

identification of the electrical facilities or structures that have been affected, assessments for required 15

repairs or replacements, performing switching to isolate problem areas, and repairing of damaged 16

equipment. 17

5 See workpaper entitled “Operator Labor Savings Forecast” for additional details.

15

Figure II-6 Substation and Transmission Storm Response Expenses



2008 2009 2010 2011 2012 2013 2014 2015 Labor $306 $511 $678 $278 $354 $426 $426 $426 Non-Labor $410 $773 $695 $1,435 $2,240 $1,110 $1,110 $1,110 Total Expenses $716 $1,284 $1,373 $1,713 $2,594 $1,536 $1,536 $1,536


Basis of Forecast: Five-Year (2008-2012) Average CostsBasis of Labor/Non-Labor Split: Five-Year (2008-2012) Average Recorded Labor/Non-Labor Ratio

Recorded Forecast

$‐

$500

$1,000

$1,500

$2,000

$2,500

$3,000

16

Figure II-7 Distribution Storm Response Expenses


(100% CPUC-Jurisdictional Constant 2012 $000)



Basis of Forecast: Five-Year (2008-2012) Average CostsBasis of Labor/Non-Labor Split: Five-Year (2008-2012) Average Recorded Labor/Non-Labor Ratio

Recorded Forecast

$‐

$5,000

$10,000

$15,000

$20,000

$25,000

a) Cost Forecasts 1

Storm-related expenses are recorded in FERC Account 573.170 for substation and 2

transmission facilities, and 598.170 for distribution facilities, as shown in Figure II-6 and Figure II-7. 3

Storm expenses that occur during emergency events declared states of emergency by the Governor of 4

California and exceed Commission-authorized amounts for storm-related expenses are sometimes 5

recovered through a Catastrophic Events Memorandum Account (CEMA) filing. Any CEMA-related 6

expenses that have been or that will be recovered through CEMA filings have been removed from SCE’s 7

recorded expenses in this account. In addition, the 2011 Windstorm expenses have also been removed 8

from recorded expenses. 9

Since storm events are driven by weather and other environmental factors that are 10

outside of SCE’s control, a five-year average of recorded costs was used as the basis for the forecast in 11

these accounts. This methodology has been accepted by the Commission in SCE’s last three rate cases. 12

In SCE’S 2012 GRC, the Commission stated “the primary driver of the storm-related O&M costs is the 13

17

weather. Given the unpredictability of the weather, recently illustrated by the December 2010 1

windstorm in SCE’s territory, use of a five-year average seems more reasonable to develop a test year 2

forecast for these subaccounts.”6 3

2. Storm Response Capital Expenditures 4

Storm Response capital expenditures include all costs associated with replacing electrical 5

facilities, structures, or equipment damaged during storm events. 6

Figure II-8 Transmission Storm Capital Expenditures

WBS Element CET-PD-ST-TS Recorded 2008-2012/Forecast 2013-2017

(Total Company Constant 2012 and Nominal $000)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Nominal $ $3,585 $3,677 $2,138 $6,213 $5,721 $4,462 $4,562 $4,683 $4,760 $4,876

2012 Constant $ $3,769 $3,956 $2,229 $6,277 $5,721 $4,390 $4,390 $4,390 $4,390 $4,390

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Nominal $ 2012 Constant $

6 D.12-11-051, pp. 210-211.

18

Figure II-9 Substation Storm Capital Expenditures

WBS Element CET-PD-ST-SS Recorded 2008-2012/Forecast 2013-2017

(100% CPUC-Jurisdictional Constant 2012 and Nominal $000)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Nominal $ $57 $309 $546 $240 $318 $309 $316 $325 $330 $338

2012 Constant $ $60 $333 $569 $243 $318 $304 $304 $304 $304 $304

$-

$100

$200

$300

$400

$500

$600


19

Figure II-10 Distribution Storm Capital Expenditures

WBS Element CET-PD-ST-DS Recorded 2008-2012/Forecast 2013-2017

(100% CPUC-Jurisdictional Constant 2012 and Nominal $000)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Nominal $ $32,558 $36,879 $43,413 $47,601 $27,061 $41,181 $42,206 $43,102 $44,066 $45,256

2012 Constant $ $37,311 $41,325 $46,674 $49,143 $27,061 $40,303 $40,303 $40,303 $40,303 $40,303

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000


a) Cost Forecasts 1

Storm-related capital expenditures are recorded in three categories – Transmission 2

Storm Expenditures, Substation Storm Expenditures, and Distribution Storm Expenditures, depending 3

on the facilities and equipment that are damaged. 4

As was the case with storm expenses, CEMA-related capital expenditures that 5

have been or that will be recovered through CEMA filings have been removed from SCE’s recorded 6

expenditures in this account. The 2011 Windstorm capital expenditures have also been removed from 7

recorded capital expenditures for purposes of calculating the forecast five-year average. 8

The storm-related capital expenditure forecasts were developed using the same 9

methodology as storm expenses. As discussed above, since storm events are driven by weather and 10

other environmental factors that are outside of SCE’s control, SCE used a five-year average of recorded 11

costs as the basis for the forecasts in these accounts. Storm-related expenditures are summarized in 12

Figure II-8, Figure II-9 and Figure II-10 above. 13

20

D. Responding to Unplanned Events and Customer Calls (FERC Account 583.170) 1

Troublemen are the first responders to electrical-service problems resulting from a wide range of 2

events, including storms, and provide round-the-clock coverage on the distribution system. These 3

employees come from the journeyman lineman ranks and are highly trained in skills such as 4

troubleshooting the electric grid, switching, and emergency scene control. 5

Troublemen are required to deal efficiently and safely with emergency situations, and to interact 6

with customers experiencing electrical problems. In 2012, SCE employees responded to over 200,000 7

incidents reported to the Distribution Operations Centers (DOC) by a variety of sources, including 8

customers, system operators, 911 calls, and emergency responders. These incidents included reports of 9

outages, partial lights, damaged equipment, such as downed wires, transformer failures, and third party 10

exposure, and voltage fluctuation problems. This volume of incidents represents a 17 percent increase 11

from that experienced in 2009 when SCE filed its 2012 rate case. 12

Troublemen are notified through a DOC or a Switching Center to locate a problem that has been 13

identified and to take expedited action to mitigate the potential impacts of the problem. To do so, 14

dispatched troublemen must first locate the source of the problem. This may be as simple as responding 15

to a specific location identified by a customer or emergency personnel or it may require patrolling a 16

circuit, including isolating and testing sections of a circuit, to determine why a line has relayed or lost 17

power. 18

Once the troubleman has located the source of the problem, corrective action is taken. If 19

possible, the troubleman will act alone and, if safe, correct the problem without interrupting service to 20

customers. More complex cases may require the troubleman to electrically isolate a section of circuit to 21

remedy the problem and restore service to customers by returning the distribution system to safe 22

operating conditions. 23

In order to isolate a problem, a troubleman will coordinate with system operators to open 24

switches to isolate a section of the grid or close switches to pick up load on an alternative circuit. 25

Switches may be operated manually by the troubleman in the field or, in some cases, remotely by a 26

system operator. In performing a switching procedure to isolate a section of circuit, the troubleman’s 27

goal is to protect himself, other employees performing maintenance on the grid, and the public. In doing 28

so, the troubleman is able to safely restore service to customers. 29

In some instances, the troubleman may need additional assistance. In that case, he would request 30

assistance from either an additional troubleman or a field crew, depending on the extent of the problem. 31

21

Repairs made to correct trouble include splicing damaged cable, fixing conductors hanging low 1

enough to endanger the public, trimming trees, and removing mylar balloons or other debris from lines. 2

Figure II-11 Troubleman Activity Expenses




Troublemen 177 176 177 177 185 195 203 203Labor per Troubleman $103 $121 $128 $122 $124 $117 $117 $117


Basis of Forecast: 2012 Recorded Cost Per Troubleman (less 5%) times Number of TroublemenBasis of Labor/Non-Labor Split: 2012 Labor/Non-Labor Ratio

Recorded Forecast

$‐

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

1. Cost Forecast 3

For public and employee safety and to provide reliable service to customers, SCE’s 4

system must be divided into manageable areas to allow SCE to respond in a timely manner to outages or 5

other system issues. It is especially important that SCE has the resources available to respond quickly to 6

emergencies such as downed wires or poles so that these issues do not cause public safety issues. 7

SCE has divided its service territory into 155 areas. These areas have been created based 8

on several factors, including the number of customers, SCE assets, and geographical size. The areas, 9

and the shift standards for each area, have been designed to optimize SCE’s ability to respond in a 10

timely manner to system issues. SCE’s current standard is to have one troubleman assigned to each area 11

during peak times (daily Monday-Friday) and one troubleman assigned to up to four areas during non-12

22

peak times (evenings and weekends). To achieve this goal and ensure proper coverage, continued public 1

safety, and appropriate response time to an increasing number of electrical events, SCE has determined 2

that it needs to hire 18 additional troublemen. By increasing the number of troublemen by 18, SCE will 3

be able to achieve some cost savings per troubleman. 4

To develop the labor cost forecast for troubleman activities, SCE utilized the 2012 5

recorded labor cost per troubleman, less a 5 percent reduction to labor costs, times the number of 6

troublemen needed on staff to adequately cover all 155 areas. By using the current optimal shift 7

standards as described above, where each of the 155 areas has one troubleman assigned during peak and 8

one troubleman assigned to up to four areas during non-peak times, SCE is able to save 5 percent per 9

troubleman in labor costs, due to a reduction in the average overtime rate.7 Non-labor expenses were 10

forecast utilizing the ratio of 2012 recorded non-labor to total costs. The forecast for troubleman 11

activities is shown in Figure II-11. 12

E. Managing the Street and Outdoor Lighting System (FERC Account 585.170) 13

1. Streetlight O&M Expenses (FERC Account 585.170) 14

Street and Outdoor Lighting expenses are broken into two categories of costs, Streetlight 15

Inspection and Maintenance and Streetlight Operations and Billing. The total expenses for these two 16

activities are shown in Figure II-12 below. 17

7 See workpaper titled “Troubleman Labor Savings Forecast” for additional details.

23

Figure II-12 Streetlight Expenses



2008 2009 2010 2011 2012 2013 2014 2015Streetlight Inspection and Maintenance Labor $3,330 $3,510 $3,278 $2,768 $3,210 $2,972 $2,995 $3,061 Non-Labor $4,232 $4,544 $3,476 $3,189 $3,159 $3,434 $3,460 $3,536 Sub-Total $7,562 $8,054 $6,754 $5,957 $6,369 $6,406 $6,455 $6,597

Streetlight Operations and Billing Labor $1,074 $1,260 $1,227 $1,204 $1,220 $1,220 $1,220 $1,220 Non-Labor $1,054 $1,274 $852 $938 $946 $946 $946 $946 Sub-Total $2,128 $2,534 $2,079 $2,142 $2,166 $2,166 $2,166 $2,166

Total 585.170 Labor $4,404 $4,770 $4,505 $3,972 $4,430 $4,192 $4,215 $4,281 Non-Labor $5,286 $5,818 $4,328 $4,127 $4,105 $4,380 $4,406 $4,482 Total Expenses $9,690 $10,588 $8,833 $8,099 $8,535 $8,572 $8,621 $8,763

Recorded Forecast

$‐

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

a) Streetlight Inspection and Maintenance (Portion of FERC Account 585.170) 1

Lamps, photocells, and other streetlight components sometimes fail in service. 2

By patrolling the streetlight system and inspecting all urban streetlights at least once a year, SCE can 3

minimize the impact of these component failures.8 In fact, G.O. 165 requires that SCE patrol all urban-4

area streetlights on an annual basis. Additionally, SCE responds to reports of streetlights out from 5

customers, employees, and through SCE’s on-line reporting system within five working days of 6

notification. 7

8 Rural streetlights are inspected every two years.

24

SCE uses a contractor to complete annual streetlight patrols in urban areas. This 1

contractor patrols for streetlight trouble during the night to determine if the lights are functioning and 2

use hand-held field tools to quickly download information from streetlights that are flickering or out. 3

This information helps T&D’s Street and Outdoor Lighting Organization (SOLO) determine the source 4

of the problem and target maintenance accordingly. In addition, the patrol contractor uses GPS 5

technology to help SOLO confirm the location of SCE’s streetlights in its inventory database. The 6

information gathered during these patrols is processed by SOLO support staff and used to direct 7

streetlight repairmen to streetlights that require repairs. In total, SOLO responds to more than 100,000 8

customer-reported and patrol-discovered problems each year. 9

These repairs are performed by streetlight repairmen, who receive work orders 10

from a centralized location each day. The repairmen are dispatched to the field to perform needed repair 11

work. Each streetlight repairman typically works alone and is equipped with a single-bucket truck. 12

Repairs may be as simple as replacing a broken lamp, a broken photo cell, or fixing other failed 13

equipment. In the event the streetlight repairman discovers a problem he cannot remedy on his own, he 14

will request assistance from an electrical crew. 15

Table II-6 Streetlight Inspection and Maintenance Expenses

Portion of FERC Account 585.170 Recorded 2008-2012/Forecast 2013-2015


2008 2009 2010 2011 2012 2013 2014 2015Labor $3,330 $3,510 $3,278 $2,768 $3,210 $2,972 $2,995 $3,061Non-Labor $4,232 $4,544 $3,476 $3,189 $3,159 $3,434 $3,460 $3,536 Total $7,562 $8,054 $6,754 $5,957 $6,369 $6,406 $6,455 $6,597

Number of Streetlights 638,386 640,929 646,998 649,790 652,682 656,511 661,551 676,063 Cost per Streetlight (whole $) $12 $13 $10 $9 $10 $10 $10 $10


Basis of Forecast: 2012 Cost Per Streetlight Times Forecast StreetlightsBasis of Labor/Non-Labor Split: Five-Year (2008-2012) Average Recorded Labor/Non-Labor Ratio

Recorded Forecast

(1) Cost Forecast 16

As shown in Table II-6, SCE’s streetlight inspection and maintenance cost 17

per streetlight has remained relatively constant, at $10 per streetlight, over the last three years. SCE 18

25

anticipates this $10 cost per streetlight will remain the same through 2015. To develop the forecast for 1

this activity, SCE multiplied the 2012 cost per streetlight times the number of streetlights SCE expects 2

to have on its system in 2013-2017. The 2015 forecast was then levelized by averaging the 2015-2017 3

forecasts. SCE utilized the five-year average ratio of labor to total costs to split the forecast between 4

labor and non-labor expenses, as the ratio has fluctuated slightly between 44 percent and 50 percent over 5

the last five years. 6

b) Streetlight Operations and Billing (Portion of FERC Account 585.170) 7

To perform streetlight mapping and inventory updates, SOLO uses a group of 8

analysts to research potential inaccuracies and reconcile the inventory database to information gathered 9

during patrols and other field activities. This includes updating the inventory when new accounts are 10

established with municipal customers and updating the inventory and maps when construction or 11

maintenance activities change the location or structure number of a streetlight. 12

In addition, SOLO support personnel review streetlight trouble orders to confirm 13

that repairs have been made in compliance with all rules and regulations. When a repair is completed, 14

SOLO support personnel validate the work performed, record any information relevant to the inventory 15

of streetlights, and create a record of the job. Maintaining an accurate inventory is essential for 16

reliability and customer satisfaction. 17

Table II-7 Streetlight Operations and Billing Expenses

Portion of FERC Account 585.170 Recorded 2008-2012/Forecast 2013-2015


2008 2009 2010 2011 2012 2013 2014 2015Labor $1,074 $1,260 $1,227 $1,204 $1,220 $1,220 $1,220 $1,220Non-Labor $1,054 $1,274 $852 $938 $946 $946 $946 $946 Total $2,128 $2,534 $2,079 $2,142 $2,166 $2,166 $2,166 $2,166


Basis of Forecast: Last Year RecordedBasis of Labor/Non-Labor Split: Last Year Recorded

Recorded Forecast

(1) Cost Forecast 18

Streetlight Operations and Billing expenses have remained relatively 19

constant over the past three years. SCE expects costs to remain at 2012 levels through 2015, even as the 20

26

streetlight inventory continues to grow. Therefore, recorded 2012 costs were utilized as the basis for the 1

2015 forecast as shown in Table II-7 above. 2

2. Capital Expenditures 3

Streetlight capital expenditures can be grouped into three main categories: (1) steel pole 4

replacements; (2) luminaire replacements; and (3) breakdown maintenance. The recorded and forecast 5

streetlight capital expenditures are shown in Figure II-13. The forecast for each of the three categories is 6

shown in Table II-8. 7

Figure II-13 Streetlight Capital Expenditures WBS Element CET-PD-OT-SL

Recorded 2008-2012/Forecast 2013-2017 (100% CPUC-Jurisdictional Constant 2012 and Nominal $000)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Nominal $ $8,149 $13,147 $11,337 $9,776 $15,895 $62,584 $50,947 $45,452 $46,468 $47,723

2012 Constant $ $9,339 $14,732 $12,189 $10,092 $15,895 $61,250 $48,650 $42,500 $42,500 $42,500

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000


27

Table II-8 Streetlight Capital Expenditure Forecasts

WBS Element CET-PD-OT-SL (100% CPUC-Jurisdictional Constant 2012 and Nominal $000)

2013 2014 2015 2016 2017Steel Pole Replacements

Units: Steel Poles 7,500 5,500 5,000 5,000 5,000Unit Cost, Constant 2012 $000 $6.3 $6.3 $6.3 $6.3 $6.3Constant $000 $47,250 $34,650 $31,500 $31,500 $31,500Nominal $000 $48,279 $36,286 $33,688 $34,441 $35,372

Luminaire ReplacementsUnits: Luminaires 40,000 40,000 30,000 30,000 30,000Unit Cost, Constant 2012 $ $300 $300 $300 $300 $300Constant $000 $12,000 $12,000 $9,000 $9,000 $9,000Nominal $000 $12,261 $12,567 $9,625 $9,840 $10,106

Breakdown MaintenanceConstant 2012 $000 $2,000 $2,000 $2,000 $2,000 $2,000Nominal $000 $2,044 $2,094 $2,139 $2,187 $2,246

Grand TotalConstant 2012 $000 61,250 48,650 42,500 42,500 42,500 Nominal $000 62,584 50,947 45,452 46,468 47,723

a) Steel Pole Replacements (WBS Element CET-PD-OT-SL-SP) 1

For several years, SCE has had a program to replace its steel streetlight pole 2

inventory of approximately 70,000 poles with concrete streetlight poles due to both their age and their 3

condition as described in detail below. SCE anticipates completing this replacement program in 4

approximately 12 years, or by 2025. 5

Steel streetlight poles suffer from corrosion quicker in areas close to the ocean. In 6

addition, these poles often deteriorate due to frequently being wetted by sprinklers installed for 7

commercial and residential landscaping maintenance. Typically, these poles deteriorate in three ways: 8

(1) the top of the pole rusts out, (2) holes develop in the base of the pole caused by rust, or (3) the 9

foundation anchor bolts rust and eventually disintegrate. 10

The aging of steel streetlight poles and the continuing corrosion of these assets 11

leads to an ongoing and urgent need to replace steel streetlight poles. In this GRC, SCE estimates 12

28

replacing 28,000 steel poles between 2013 and 2017. SCE’s replacement program includes replacing 1

7,500 steel poles in 2013, 5,500 in 2014, and 5,000 annually from 2015-2017. Based on recorded cost 2

data, SCE estimates that the cost per steel pole replacement is $6,300.9 The forecast for steel pole 3

replacements is shown in Table II-8 above. 4

b) Luminaire Replacements 5

SCE owns over 650,000 streetlight fixtures and over 40,000 area and outdoor 6

walkway lights. From time to time, the luminaires on these structures need to be replaced. In order to 7

maintain reliable streetlight service, SCE is requesting an amount of capital that will allow for 8

replacement of 40,000 luminaires annually in 2013 and 2014, and 30,000 luminaires annually from 9

2015-2017. Luminaires typically need to be replaced after about 15 years of service because internal 10

components fail. SCE estimates that it costs $300 to replace a luminaire, based on historical data.10 The 11

forecast for luminaire replacements is shown in Table II-8 above. 12

c) Breakdown Replacements 13

Streetlight repairmen repair streetlights on a day-to-day basis. At times, 14

streetlight repairmen may encounter problems they are not able to fix on their own. In that case, a 15

repairman will request the assistance of an electrical line crew, which typically includes linemen and 16

other distribution maintenance personnel. These more complicated repairs may require a planned 17

system outage, significant time on-site, additional manpower, or additional equipment. Common 18

problems causing a streetlight repairman to request additional assistance are (1) conductor breakdowns, 19

(2) structural damage to poles, or (3) multiple, in-line streetlight outages. When these requests are 20

made, SOLO support personnel work to assign the repairs to the appropriate SCE resources or to 21

contractors. Since these repairs are more complicated, they tend to be more costly than a simple fixture 22

replacement. SCE based its forecast for breakdown replacements on its recorded 2012 costs of $2 23

million, as shown in Table II-8. 24

F. Grid Operations Support Expenses (FERC Account 588.170) 25

Grid Operations Support expenses come in two categories, Circuit Mapping and Outage Data 26

Management. The total expenses for these two activities, which record to FERC Account 588.170, are 27

shown in Figure II-14 below. 28

9 See workpaper titled “Steel Pole Replacement Unit Cost” for additional details.

10 See workpaper titled “Luminaire Replacement Unit Cost” for additional details.

29

Figure II-14 Grid Operations Support Expenses

FERC Account 588.170 Recorded 2008-2012/Forecast 2013-2015


2008 2009 2010 2011 2012 2013 2014 2015Circuit Mapping Labor $1,437 $1,931 $1,915 $1,720 $1,716 $288 $288 $288 Non-Labor $735 $1,266 $549 $498 $545 $119 $119 $119 Sub-Total $2,172 $3,197 $2,464 $2,218 $2,261 $407 $407 $407

Outage Data Management Labor $1,837 $2,052 $2,190 $1,659 $1,707 $1,707 $1,707 $1,707 Non-Labor $691 $1,006 $415 $445 $585 $585 $585 $585 Sub-Total $2,528 $3,058 $2,605 $2,104 $2,292 $2,292 $2,292 $2,292

Total 588.170 Labor $3,274 $3,983 $4,105 $3,379 $3,423 $1,995 $1,995 $1,995 Non-Labor $1,426 $2,272 $964 $943 $1,130 $704 $704 $704 Total Expenses $4,700 $6,255 $5,069 $4,322 $4,553 $2,699 $2,699 $2,699

Recorded Forecast

$‐

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

1. Circuit Mapping (Portion of FERC Account 588.170) 1

Circuit maps graphically represent how electricity flows though SCE’s distribution grid, 2

how flows can be changed by opening or closing switches, and other information necessary to safely and 3

reliably operate the electrical distribution system. Maintaining accurate circuit maps is critical to the 4

safety of SCE personnel and the public. Circuit maps also provide the necessary information to field 5

personnel in order for them to identify the source of electricity for each piece of electrical equipment, 6

thereby allowing employees to safely energize or de-energize sections of SCE’s distribution grid to 7

perform construction, maintenance, or other types of work on the system while minimizing the 8

frequency and duration of customer interruptions. Circuit maps are also used to identify line sections 9

and customers impacted by planned and unplanned outages for outage reporting required by the CPUC. 10

30

For SCE crews to work safely and to operate the distribution grid effectively, circuit 1

maps must be updated accurately and expeditiously whenever a change is made to the grid. In total, 2

SCE maintains more than 4,500 distribution circuit maps that field personnel rely on for accurate 3

circuitry and equipment information. To maintain circuit map accuracy, mapping personnel work 4

closely with SCE’s distribution and substation construction and maintenance organizations and SCE’s 5

engineering personnel to quickly update maps following structure and equipment replacements or 6

creation of new circuits. Depending on the complexity of the system changes, updates can take 7

anywhere from a few minutes of work to multiple hours in the most complex of instances. 8

Table II-9 Circuit Mapping Expenses

Portion of FERC Account 588.170 Recorded and Adjusted 2008-2012/Forecast 2013-2015


2008 2009 2010 2011 2012 2013 2014 2015Labor $1,437 $1,931 $1,915 $1,720 $1,716 $288 $288 $288Non-Labor $735 $1,266 $549 $498 $545 $119 $119 $119 Total $2,172 $3,197 $2,464 $2,218 $2,261 $407 $407 $407


Basis of Forecast: 2012 Recorded Cost, adjusted for new 82% Capital/18% O&M SplitBasis of Labor/Non-Labor Split: Five-Year (2008-2012) Average Recorded Labor/Non-Labor Ratio

Recorded Forecast

a) Cost Forecast 9

Circuit mapping expenses have remained relatively constant over the 2010-2012 10

periods. SCE expects these costs to remain constant at 2012 levels going forward, and has therefore 11

utilized the 2012 recorded expenses as the basis for the 2015 forecast. Up to now, all circuit mapping 12

costs were charged to O&M. SCE has made a reduction to its forecast based on an accounting study that 13

has determined that approximately 82 percent of circuit mapping costs should be charged to capital 14

projects. Based on this study, and as shown in Table II-9, SCE has reduced its 2015 O&M forecast from 15

$2.261 million to $0.407 million. 16

2. Outage Data Management (Portion of FERC Account 588.170) 17

Unplanned outages on SCE’s system must be reported to the Commission pursuant to 18

D.96-09-045. Outage data is also used by SCE to determine reliability-based infrastructure replacement 19

31

needs, to evaluate claims made against SCE by customers, to analyze commitments to customers under 1

Service Guarantee Standards #2 and #3, and to investigate and respond to customer complaints 2

regarding circuit problems. 3

After every unplanned outage on the SCE distribution system, SCE staff reviews and 4

verifies information on the number of customers affected by the outage, the duration of the outage, the 5

cause of the outage, and the location of the outage. In addition, SCE staff reviews all outages with 6

durations of twenty-four hours or more to determine if these outages meet the Commission’s criteria for 7

payment to customers under Service Guarantee Standard #2, which requires that, under certain 8

conditions, SCE credit customers for every twenty four hour period they do not have power due to an 9

unplanned outage. 10

During storms, Grid Operations staff provides analytical support to the Grid Management 11

Centers to help managers make strategic and logistical decisions regarding the use of field personnel and 12

other SCE resources. Grid Operations support staff also provides information to SCE groups 13

responsible for communication with the public and the media. By maintaining data on outages, Grid 14

Operations support staff is able to support both the needs of SCE personnel in restoring power as 15

efficiently and safely as possible and is able to keep the public and emergency response agencies 16

informed as to the condition of the distribution grid. 17

Most of the analysis performed by this group is based on data residing in the Outage 18

Management System. One of the key inputs to this system is the Transformer Load Management (TLM) 19

database linking customers to SCE’s distribution transformer inventory. The analysts performing outage 20

data management also support maintenance of TLM data. This data helps with the timely identification 21

of common trouble locations, reduces the chance of multiple troublemen responding to the same report 22

of trouble, and provides the information necessary to allow customers to receive advance notifications 23

when a planned outage is scheduled. 24

32

Table II-10 Outage Data Management Expenses Portion of FERC Account 588.170

Recorded and Adjusted 2008-2012/Forecast 2013-2015 (100% CPUC-Jurisdictional Constant 2012 $000)

2008 2009 2010 2011 2012 2013 2014 2015Labor $1,837 $2,052 $2,190 $1,659 $1,707 $1,707 $1,707 $1,707Non-Labor $691 $1,006 $415 $445 $585 $585 $585 $585 Total $2,528 $3,058 $2,605 $2,104 $2,292 $2,292 $2,292 $2,292


Basis of Forecast: 2012 Recorded Cost Basis of Labor/Non-Labor Split: 2012 Recorded Labor/Non-Labor Ratio

Recorded Forecast

a) Cost Forecast 1

Outage Data Management expenses have remained relatively constant over the 2

last two years, and SCE expects the costs to perform these activities to remain at 2012 levels. Therefore, 3

as shown in Table II-10, SCE has utilized recorded 2012 expenses as the basis for the 2015 forecast. 4

G. Service Guarantees 2 and 3 (FERC Account 587.170) 5

SCE provides its customers four guarantees related to service performance, two of which are 6

driven by Customer Service processes and two by T&D processes. The two T&D-driven guarantees are 7

Service Guarantees 2 and 3. Service Guarantee 2 is a commitment to customers that SCE will restore 8

service within 24 hours of when first becoming aware of a power outage. Service Guarantee 3 promises 9

to notify any affected customer of a planned outage at least three days before the outage occurs. 10

SCE pays a $30 credit for each occurrence when these service guarantees are not met. These 11

credits are currently 100 percent shareholder-funded. A claim may be made by a customer, but most 12

occurrences are identified through SCE’s own internal processes, procedures, and systems. 13

The Commission has stated its belief that service guarantees benefit all customers by providing 14

SCE with the incentive to meet its commitments to its customers. SCE agrees with this Commission 15

conclusion. Since all customers benefit from the Service Guarantee Program, it is reasonable that a 16

baseline level of service guarantee payouts should be funded by ratepayers as a normal cost of business, 17

not by SCE’s shareholders. 18

33

Despite being receptive to the concept of establishing a baseline level to be funded in rates, the 1

Commission found in in SCE’s 2006 GRC, “Setting a baseline is difficult. It should be set at a level that 2

sets a reasonable stretch target for the company to meet…the record in this proceeding, however, is 3

insufficient to develop such a target.” 11 At that time, SCE had only two partial years of recorded data 4

for use in establishing a reasonable baseline level. SCE now has nine years of the Service Guarantee 5

Standards recorded results upon which to establish a reasonable baseline level of payouts to be included 6

in rates. The program is now fully operational and established as part of SCE’s business-as-usual 7

operations. 8

A baseline level of service guarantee payouts funded through rates would still provide incentive 9

for SCE to meet or exceed the target because any amount paid above the baseline level would be paid by 10

the shareholder. 11

11 D.06-05-017, p. 122.

34

Figure II-15 Service Guarantee Expenses

FERC Account 587.170 Recorded 2008-2012/Forecast 2013-2015


2008 2009 2010 2011 2012 2013 2014 2015 Labor $0 $0 $0 $0 $0 $0 $0 $0 Non-Labor $0 $0 $0 $0 $0 $0 $0 $0 Other $671 $1,034 $592 $513 $489 $489 $489 $489 Total Expenses $671 $1,034 $592 $513 $489 $489 $489 $489


Basis of Forecast: 2012 Recorded CostsBasis of Labor/Non-Labor Split: 100% Other

Recorded Forecast

$‐

$200

$400

$600

$800

$1,000

$1,200

a) Cost Forecast 1

As shown in Figure II-15, Service Guarantee payouts decreased significantly from 2

2009 to 2010, and showed a slow, steady decrease from 2010 to 2012 as SCE has continued to refine 3

and improve its customer outage notification process. SCE proposes a baseline level for Service 4

Guarantees 2 and 3 equal to the recorded 2012 payouts. 5

SCE considers this a conservative estimate in light of the significant increase in 6

planned outages SCE expects related to the planned maintenance and grid work forecast for 2013-2017. 7

Therefore, recorded 2012 expenses should be established as a baseline target. Any payouts above this 8

target would be funded by shareholders. 9

H. Operational Facilities Maintenance 10

From time to time it is necessary to replace or rebuild failed or failing substation facilities and 11

buildings, such as HVAC systems, roof replacements, fencing, motorized gates, fuel tanks, carpet, 12

35

flooring, and asphalt or concrete driveway work which undergo regular wear and tear. This type of 1

work is important to maintain a safe working environment for employees and to protect the sensitive 2

electronic equipment that monitors and controls the power grid from adverse weather conditions. Many 3

of these substation facilities have aged and are requiring an increase amount of maintenance work. 4

Figure II-16 Operational Facilities Maintenance Capital Expenditures

WBS Element CET-PD-OT-FO Recorded 2008-2012/Forecast 2013-2017

(Total Company Nominal and Constant 2012 $000)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Nominal $ $1,657 $932 $1,693 $1,297 $2,677 $4,600 $5,600 $5,749 $5,843 $5,985

2012 Constant $ $1,742 $1,003 $1,765 $1,310 $2,677 $4,527 $5,390 $5,390 $5,389 $5,389

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000


1. Cost Forecast 5

Operation Facilities spending remained relatively constant from 2008-2011, but began to 6

increase in 2012 as SCE begin to focus on maintaining aging substation facilities. Through 2014, SCE 7

will be performing a major project at the Santa Clara Substation, where a new building will be 8

constructed to house test and maintenance crews and a four-bay garage building. In addition, in order to 9

secure operators’ situational awareness and response to significant electrical events as SCE’s bulk 10

system continues to expand and become more complex, SCE plans to upgrade outdated facilities and 11

equipment including consoles, video screens and telecommunication systems at several switching 12

centers, which will keep the forecast at 2014 spending levels going forward.13

Appendix A

Witness Qualifications

A-1

SOUTHERN CALIFORNIA EDISON COMPANY 1

QUALIFICATIONS AND PREPARED TESTIMONY 2

OF PAUL J. GRIGAUX 3

Q. Please state your name and business address for the record. 4

A. My name is Paul J. Grigaux, and my business address is 3 Innovation Way, Pomona, CA 91768. 5

Q. Briefly describe your present responsibilities at the Southern California Edison Company. 6

A. I am the Managing Director of the Transmission/Substations and Grid Operations in 7

Transmission & Distribution. Grid Operations is responsible for monitoring and operating 8

SCE’s transmission and distribution system. 9

Q. Briefly describe your educational and professional background. 10

A. I hold a Bachelor of Engineering from Cooper Union for the Advancement of Science & Art and 11

a Master of Business Administration from New York University’s Stern Business School. I 12

spent the first 9 years of my career in the industrial gases industry, in various engineering and 13

business capacities. Between 1999 and 2005, I held a number of business development and 14

general manager positions with First Energy, Inc. and then AREVA based on the east coast of 15

the US. I joined Southern California Edison in April 2005 as the director of the Shop Services 16

and Instrumentation Division and senior vice president of Edison ESI. In March of 2009 I 17

became Director of the Central Design and Field Accounting (CD&FA) department in 18

Transmission and Distribution (T&D). I assumed my current position in March of 2012. 19

Q. What is the purpose of your testimony in this proceeding? 20

A. The purpose of my testimony in this proceeding is to sponsor Exhibit SCE-03, Volume 07 – 21

Transmission and Distribution – Grid Operations, as identified in the Table of Contents thereto. 22

Q. Was this material prepared by you or under your supervision? 23

A. Yes, it was. 24

Q. Insofar as this material is factual in nature, do you believe it to be correct? 25

A. Yes, I do. 26

A-2

Q. Insofar as this material is in the nature of opinion or judgment, does it represent your best 1

judgment? 2

A. Yes, it does. 3

Q. Does this conclude your qualifications and prepared testimony? 4

A. Yes, it does. 5

Documents

Transmission and Distribution (T&D) Volume 7 – Grid Operations · SCE’s Grid Operations organization (Grid Operations) is responsible for five major activities, as listed below