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How an Electric Utility can get ready for FEMA Marci Lopez P.E. In this presentation I am not representing FEMA, but am speaking as a former electric utility manager. What is the my Presentation Plan ?. My Presentation Plan.
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How an Electric Utility can get ready for FEMAMarci Lopez P.E. marcilopez@aol.com
In this presentation I am not representing FEMA, but am speaking as a former electric utility manager marcilopez@aol.com
What is the my Presentation Plan ? marcilopez@aol.com
My Presentation Plan • The first part of the Presentation will be an overview of those FEMA rules that most directly affect an electric utility. • I will assume that you are not familiar with the FEMA process. Therefore, feel free to ask questions as I review some important rules marcilopez@aol.com
My Presentation Plan • The second part of the Presentation will be a discussion of strategies the utility may want to take, with the goal of getting all of its eligible money as rapidly as possible. • At that time, I will ask you questions concerning the advantages and disadvantages of these strategies marcilopez@aol.com
Importance to an Electric Utility • While FEMA makes very sure the rules are well known, the typical electric utility does not often know how to use those rules to its best advantage • The Baseball Analogy marcilopez@aol.com
Does the actions of the electric utility really have an impact on the FEMA process ? marcilopez@aol.com
The utility’s capability to quickly provide FEMA with: • complete information will directly determine when the utility will get its money • accurate cost data will directly determine how much money the utility will get marcilopez@aol.com
What is the basic element of the FEMA process? marcilopez@aol.com
The Project A Project is a set of documentation which: • pertains to specific damaged facilities and equipment and the associated costs for their repair and replacement • pertains only to the costs of performing specific activities such as debris removal, temporary electric service restoration and handling of electric trouble calls marcilopez@aol.com
The documentation for a Project must include what elements ? marcilopez@aol.com
Documentation Elements • Damage Description and Dimensions • Scope of Work • Costs associated with the Scope of Work marcilopez@aol.com
What is a Damage Description ? marcilopez@aol.com
A Damage Description • A description of the specific cause of damage or condition (high winds, floodwater, shaking, fire) • Example- As a result of Hurricane Mary on April 17,2005, high winds damaged…… marcilopez@aol.com
What are Damage Dimensions ? marcilopez@aol.com
Damage Dimensions • A description of the damages to a facility, including the damage dimensions • Examples- 5 poles, 400 ft of conductor, 127 conductor splices, 8 distribution transformers, Liberty Station 230 Kv bus, 4 tons of debris on right of way, 1200 service outages marcilopez@aol.com
What is a Scope of Work ? marcilopez@aol.com
Scope of Work • A description of the permanent repairs or replacement, debris removal and debris disposition, temporary repairs and handling service trouble calls • Examples – 10 distribution poles were replaced, 1000 ft of 15Kv conductor will be replaced, marcilopez@aol.com
How are Costs associated with the Scope of Work included in the Project submittal ? marcilopez@aol.com
Costs associated with the Scope of Work • Actual Costs are submitted as Cost Summaries and included as part of the Project • Future and Estimated Costs are included as part of the Scope of Work marcilopez@aol.com
For future work, what detailed cost estimates are required ? marcilopez@aol.com
Future Work Cost Estimates • Cost estimates should correlate with documented damage description and detailed scope of work • Cost estimates should be based on: • Purchase prices • Contractor bids • Calculated Per Unit costs marcilopez@aol.com
What are the most common FEMA work categories associated with an electric utility ? marcilopez@aol.com
Common Work Categories • Cat A Debris Removal • Cat B Emergency Protective Measures (Temporary Repairs) • Cat F Utilities (Permanent Repairs) • Each Project may only have one Category and one Declared County marcilopez@aol.com
What are Multiple Sites ? marcilopez@aol.com
Multiple Sites • Multiple Sites are damage sites having the same characteristics • For Debris Removal, multiple sites may be combined into one overall Damage Description and one overall Scope of Work • For Emergency Protective Measures, multiple temporary repair sites may be combined into one overall Damage Description and one overall Scope of Work marcilopez@aol.com
How are Multiple Sites for Lines handled ? marcilopez@aol.com
Multiple Sites for Lines • Multiple distribution line repair sites may be combined into one damage description with an estimated number of splices or length of line • Include a marked distribution line map of the conductor replaced or splices marcilopez@aol.com
Are there any Restrictions on Costs and Damages ? marcilopez@aol.com
Project Damages and Costs • The repair or replacement of a damaged facilities must be the utility’s legal obligation or responsibility • The facilities must have been damaged or the costs must have been incurred as a direct result of the storm. • Upgrades required to meet building codes and standards, at the time of the disaster,are eligible costs marcilopez@aol.com
How is Volunteer/Donated Labor handled ? marcilopez@aol.com
Volunteer / Donated Labor • Volunteer / donated labor can be used as credit for the non-FEMA allocation • FEMA will pay only for costs that were actually incurred by the Utility marcilopez@aol.com
What is Debris Removal ? marcilopez@aol.com
Debris Removal • Debris Removal involves removing debris from line rights-of-way, stations and utility property and disposing of the debris • For Force Account Labor, used for debris removal, only overtime is eligible. • For Contract Labor, used for debris removal, both regular time and overtime are eligible marcilopez@aol.com
What are Emergency Protective Measures ? marcilopez@aol.com
Emergency Protective Measures • Emergency Protective Measures involve the following: • Answering electric trouble calls • Performing temporary repairs and service restoration • For Force Account Labor, only overtime is eligible. For Contract Labor, both regulartime and overtime are eligible marcilopez@aol.com
What is Permanent Repair ? marcilopez@aol.com
Utilities (Permanent Repair) • Utilities involves the permanent repair of facilities, equipment and lines • FEMA will pay to restore the facility to its pre-disaster condition marcilopez@aol.com
Who determines what is damaged ? marcilopez@aol.com
Damaged Facilities and Equipment • The Utility identifies the damage and the FEMA representative inspects the damage to determine whether it is eligible. • The FEMA representative must see the damage marcilopez@aol.com
What if repairs or replacement have to be made before FEMA arrives ? marcilopez@aol.com
Immediate Repairs or Replacement • Take pictures of the damage • Get the equipment repaired • If a qualified person states that it would cost more to repair then purchase, then purchase a replacement • Submit photos, a description of the damage, an estimated cost to repair and an invoice, if purchased marcilopez@aol.com
What is Hazard Mitigation ? marcilopez@aol.com
Hazard Mitigation • Mitigation involves evading costs for a future similar storm to the one that caused this damage • FEMA will usually pay an additional amount, of the cost to return the damaged facility to its pre-disaster condition, for hazard mitigation • For utilities, Mitigation is usually not timely marcilopez@aol.com
How is Insurance handled ? marcilopez@aol.com
Self Insurance • If the utility has an established self insurance plan with a schedule of covered facilities, then the covered facilities are not eligible up to the limit of self insurance marcilopez@aol.com
Insurance • Be prepared to provide FEMA with insurance documentation showing what facilities are insured • FEMA expects the utility to receive maximum recovery for the insured facilities • FEMA will usually pay the deductable marcilopez@aol.com
What typical costs are eligible for reimbursement ? marcilopez@aol.com
Typical Eligible Costs • Labor • Equipment (Vehicles/ Construction Equipment) • Rented Equipment • Material • Contract marcilopez@aol.com
For work that is completed, how is the cost information submitted to FEMA ? marcilopez@aol.com