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Southern Company's Response to Hurricane Katrina: Lessons Learned and Industry Impact

Explore how Hurricane Katrina impacted MPC & Southern Company, the recovery efforts, key lessons learned, and the transmission industry's national issues. Learn about customer satisfaction, reliability, and pricing.

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Southern Company's Response to Hurricane Katrina: Lessons Learned and Industry Impact

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  1. 2006 TRANSMISSIONCUSTOMER FORUMSeptember 21, 2006 Andrew J. Dearman, IIIExecutive Vice President & Chief Transmission Officer

  2. Katrina • PHOTO HERE

  3. Hurricane Katrina’s Wrath • 140 mph winds with 35 foot storm surge • Worst natural disaster in history of MPC • Largest operational challenge in our 80 year history • Impacted all 1,250 MPC employees • Destroyed homes and in some cases entire neighborhoods

  4. Impacts to Southern Company • All 195,000 MPC customers lost power • More than 600,000 APC customers lost power • All but 3 of MPC’s 122 transmission lines were out of service (1,914 miles) • 67 transmission lines out in Alabama (1,505 miles) • 12 substations flooded in Mississippi • 1 substation flooded in Alabama

  5. Impacts to Southern Company • MPC’s second largest generating plant was flooded • MPC HQ building in Gulfport will not be fully operational until late 2006

  6. Excellent Execution of a Well-Defined Plan • Excellence in damage assessment • Six full service tent cities erected • 140,000 gallons of fuel into 5,000 trucks daily • 30,000 meals daily • 250 person armed security force

  7. All substations energized in 6 days All customers who could take power were restored in 12 days

  8. Lessons Learned • Business Continuity • Communications • Government Agency Interface • Employee Issues

  9. Transmission IndustryKey Issues on the National Front Creation of the Electric Reliability Organization (ERO) FERC Rule on Transmission Incentives FERC Transmission Line Siting NOPR FERC Order 888 and OATT Reform NOPR • Regional Planning

  10. Transmission Fundamentals of Success • Organization structure • Strong leaders • Clearly defined strategy • Commitment to be the BEST

  11. Control Area Readiness Audit by completed by NERC in 2004 100% Compliance Reliability Coordinator Readiness Audit Completed in Spring, 2006 Audit Team found no operational problems Reported that operations and support staff is knowledgeable and competent

  12. SAIDI: System Average Interruption Duration Index 14.07

  13. SAIFI: System Average Interruption Frequency Index 0.198

  14. Southern CompanyCustomer Satisfaction & Value Southern Company ranksfirst for the5th consecutive year

  15. Southern Company: Low Prices2005 U.S. Total Average Price was 8.14 cents/kwh Source: Energy Information Administration (EIA). National Average is calculated using EIA 826 data for Investor Owned Utilities.

  16. Southern Company vs. National AverageRelative Rates Price Comparison Average Retail Rates Southern Company vs. the National Average 9 8 National Average 7 Total Southern Company 6 5 Cents/kWh 4 3 2 1 0 2000 2001 2002 2003 2004 2005

  17. Savannah Electric & Power MERGED WITH Georgia Power Company On July 1, 2006

  18. We appreciate your business!

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