20041228Report per Order 28213.pdf

825 E. Multnomah St.
Portland, OR 97232
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PACIFIC POWER UTAH POWER
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December 27 2004 ,.JTIL!i!E:3 ISSiOH
Idaho Public Utilities Commission
472 W Washington
Boise, ill 83270
Attention:Jean Jewell
Commission Secretary
Re:Compliance Filing
ScottishPower/PacifiCorp Conditions of Merger Approval
PacifiCorp (d.a. Utah Power & Light Company) hereby submits for filing an original
and seven copies of the Company s filing in compliance with Conditions of Merger
Approval #6 in Case No. PAC-99-, Order No. 28213 , which stated:
Within a reasonable time after closing, ScottishPower/PacfiCorp shall implement
the Performance Review Committee procedures described in Exhibit 226. This
process shall be in addition to, and not in derogation of, any other remedy or
power of the Commission.
In accordance with this merger condition, the Company and the Commission Staff have
been meeting on a periodic basis to review system performance in Idaho. These
discussions have tracked the performance improvements the Company committed to in
Case No. PAC-99-, Order No. 28213. These reliability commitments were titled the
Performance Standards Program, and included a 10% reduction in sustained outage
frequency and duration, a 5% reduction in momentary outage frequency, a 20% circuit
performance improvement for the state s 5 worst-performing feeders and an 80%
restoration target within 3 hours of an outage. In its fiscal year 2004, (April 1 , 2003-
March 31 , 2004) the Company delivered 4 of these 5 commitments within the State of
Idaho. These results are described below.
Background
The Company s Network Performance Reports have evaluated performance against the
Company s previously established baselines and merger commitment targets for its
Performance Standards Program. These standards were Performance Standard 1 , which
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PacifiCorp
Compliance Filing
December 27 2004
Page 2
pertains to duration of sustained outages, or System Average Interruption Duration Index
(SAID I); Performance Standard 2, which pertains to frequency of sustained outages, or
System Average Interruption Frequency Index (SAIFI); Performance Standard 3 , which
pertains to the frequency of momentary outages, or Momentary Average Interruption
Frequency Index (MAIFI); Performance Standard 4, which pertains to the circuit
performance indicator (CPI) for the state s 5 worst performing circuits; and Performance
Standard 5, which pertains to a targeted restoration goal of 80% of customers restored
within 3 hours of first notification of an outage.
The Company initiated the Performance Standards Program by implementing more
rigorous processes for data collection and management of outage events, including, an
improved automated outage management system (CADOPS and Prosper/US Systems).
Simultaneously, it initiated analysis and network improvement measures to evaluate and
establish its pre-merger performance baseline, while targeting areas to deliver reliability
improvements. Thereafter, these efforts led to the Company and PUC staff setting
merger commitment targets in August, 2003 , which were to be delivered by March 31
2005. Upon this agreement, the Company communicated targets, continued to construct
and reengineer facilities as appropriate and communicated ongoing progress toward
achieving the delivery of its Performance Standards.
Merger Commitment Targets
In its August 18 2003 compliance filing, the Company proposed to:
1. Align the measurement period with the Company s fiscal year;2. Establish a normalization approach; and
3. Develop merger commitment targets.
1. Alignment of Measurement Period with Company s Fiscal Year
The Company will measure Performance Standards 1 and 2 on a fiscal year basis
using the Company s April 1 through March 31 fiscal year. The five-year merger
commitment period would end March 31 , 2005.
2. Establishment of Normalization Approach
Within the industry, there has been substantial effort to clearly define triggers that
indicate an abnormal system event. This work has been guided through
development by the Institute of Electrical and Electronic Engineers (IEEE)
Working Group on System Design and is documented in Draft Standard P1366.
This approach is embodied within the current draft standard and states:
1.16 Major Event. Designates a catastrophic event that exceeds reasonable design and or
operational limits of the electric power system. (See section 4.4 of IEEE Draft Standard P1366 for
more information.
PacifiCorp
Compliance Filing
December 27 2004
Page 3
1.17 Major Event Day. A day in which the daily system SAIDI exceeds a threshold value
T MED. For the purposes of calculating daily system SAIDI, any interruption that spans multiple
calendar days is accrued to the day on which the interruption began. Statistically, days having a
daily system SAIDI greater than T MED are days on which the distribution system experienced
stresses beyond that normally expected (such as severe weather). Activities that occur on major
event days should be separately analyzed and reported. (See section 4.4 of IEEE Draft Standard
P1366 for more information.
3. Merger Commitment Targets
The baseline uplift with normalization discussed above results in a SAID I target
of217 minutes and SAIFI target of 2.47 events to be achieved by or before
March 31 , 2005. Based on the agreed upon performance baselines and resulting
targets, this will provide reliability improvements to customers that meet the
merger commitment goal of 10% improvement over a five-year period.
Fiscal Year 2004 (4/1/2003-3/31/2004) Performance Standards Results
By its calculations, during Fiscal Year 2004, the Company met the following Merger
Commitment Targets contained within its Performance Standards Program.
PS 1 (SAID I): Reduce average sustained outage duration during underlying
performance by 10%.
Merger Commitment Target: 217 minutes.
Actual FY2004 Performance: 211 minutes.
PS2 (SAIFI): Reduce average sustained outage frequency during
underlying performance by 100/0.
Merger Commitment Target: 2.47 events.
Actual FY2004 Performance: 2.113 events.
PS3 (MAIFI): Reduce average momentary outage frequency during
underlying performance by 5%.
Merger Commitment Target: 5.60 events.
Actual FY2001 Performance: 1.969 events.
PS4 (Worst Performing Feeders): Improve performance on state s 5
worst-performing feeders by 20% (for Program Year 1 Circuits).
Merger Commitment Target: 631 CPI Score
Actual FY2004 Performance: 111 CPI Score
PS5: Supply Restoration
At this time, the Company continues to make progress toward its achievement ofPS5
goal, which commits to restoring power to, on average, 80% of the customers
experiencing a sustained outage within 3 hours. As of fiscal year-end, the result was 88%
of customers were restored within 3 hours; these results will continue to be reported and
discussed with Commission Staff.
PacifiCorp
Compliance Filing
December 27 2004
Page 4
Summary
The Company proposes that during Fiscal Year 2004 (4/1/2003-3/31/2004) it has met
four of its five Performance Standard Merger Commitments. It is on track to deliver its
PS5 Supply Restoration target at Fiscal Year 2005 (3/31/2005), whereupon it will file the
program performance for this Performance Standard.
It is respectfully requested that all formal correspondence and Staff requests regarding
this filing be addressed to the following:
By E-mail (preferred):gatarequest~pac i ficoro. com
By regular mail:Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 800
Portland, OR 97232
Please direct any informal questions to Heidemarie Caswell at 503-813-6216.
Sincerely,
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D. Douglas Larson
Vice President, Regulation