Underground Network Initiatives Webinar

1. Underground Network Initiatives Webinar June 17, 2014

2. Webinar Purpose and Agenda • Purpose • Bring together subject matter experts on the topic and allow them to share experiences, practices and insights • Today’s subject: Underground Network Initiatives – Current Status and Future Plans • Today’s Agenda • Introductions • Background on Underground Secondary Networks. • Brief history • Deliverables and Schedule of Events • Input from all participating companies • Next Steps

3. Detailed Discussion Topic Process Leader’s Conference Webinar: Set Plan Discussion Topic Plan Webinar: Review Plan Discussion Webinars • Primary Purpose • Plan 2014 Program • Determine Discussion Topics • Review Questionnaire • Deliverables • Discussion Topics to pursue • Draft Questionnaire • Primary Purpose • Flesh out Discussion Topic and expectations • Deliverables • Schedule of events • Interview questions • Identify questions in core questionnaire that provide information • Plan analysis • Deliverables expected • Primary Purpose • Review Discussion Topic Plan for alignment with utility expectations • Primary Purpose • Run one webinar that brings together subject matter experts on the topic and allows them to share practices and insights Review Meeting Insights Conference On-site Presentations • Primary Purpose • Discussion groups on Discussion Topics • Review analysis so far • Actions/Deliverables • Group Discussions • Analysis and synthesis of data • Presentations • Primary Purpose • Share learning • Actions/Deliverables • Presentations by stand-out companies • Analysis/synthesis of data • Discussion groups • Action Steps • Using the analysis template

4. Background • Many utilities have underground network distribution systems serving center-city areas with mostly high density loads and a few smaller customers. • In these areas, it is not practical to use overhead distribution systems due to clearance problems with high-rise buildings coupled with narrow sidewalks and streets. • In many cases, local authorities have mandated that all utilities be placed underground. • Most of these systems were originally established in the 1920’s when most utilities were controlled by a few holding companies who directed the design of the systems. • In most cases, these systems are similar in the following ways: • They use multiple primary circuits, paralleled on the secondary side. • Primary circuits are protected by a breaker at the source, and by secondary breakers at each transformer, relayed to open for a fault on the primary circuit (reverse power flow), and to automatically close when conditions are such that forward power flow will occur when the primary circuit is restored.

5. Background (cont’d) • The primary circuits are paralleled with one or more transformers on different primary circuits in the same underground vault(s), and cables in the streets paralleling multiple vaults (street grid). • In this way, large loads can be served by one or more transformers at the building site, augmented by power served from the street grid in the event of the failure of a primary circuit. • Very large loads are served by “spot networks”, individual installations of several transformers, paralleled as in a normal secondary network, but not connected to the grid; most of these are at 480v, 4kv, or higher voltages to accommodate the customer’s needs. • Small loads (store fronts, parking lots, signal lights, etc.) can be served by connecting only to the street grid without the necessity of installing a transformer. • Street grids are normally grounded wye 125/216v to allow single phase service to small loads. • Because of the vintage of these systems, the were designed and built using paper insulated, lead covered cable and electro-mechanical relays, with little or no remote monitoring or control. • These systems are extremely reliable, and extremely expensive to install.

6. Current Status • Many of these systems have been in place for more than 80 years. • As the use of paper insulated lead covered cable has decreased in non-network distribution systems, cable splicing expertise has become harder to maintain in the workforce. • Transitioning to other cable designs is difficult because of splicing problems joining the two cable types. • More modern solid-state relays are available to retrofit to existing equipment, offering better control, plus capability of remote monitoring and control, but the cost of retrofit to a very large population of existing equipment is considerable. • The character and profile of the loads being served by these systems make it vital to maintain traditional levels of reliability, yet the cost to maintain these systems, and to serve new loads, may be difficult to justify.

7. Background Information to be Gathered Outside this Webinar • Description of Underground Network System • Age • Characteristics • Number of Customers • Load served • Number of primary circuits and voltage • Secondary voltage(s) • Physical area (square miles) • Is the area exclusively network or are there other customers? • Contingency design (first, second, or other) • Current State of Network System • Are new loads served from the network system, or in some other way? • Have network protectors been retrofitted with solid state relays? • Describe remote monitoring and control. • Do you have any issues maintaining cable splicing expertise? • Have you expanded or reduced your underground network system area in the last several years? • What level of new customer growth are you seeing in your network area?

8. Webinar Topics • Future of Underground Network System • What are future plans for your underground network system? • Expand, contract, stay the same? • Continue to serve new customers from the network, or serve in some other way, to let network load diminish until it becomes practical to eliminate the network. • If you haven’t already done so, retrofit network with solid-state relays and monitoring and control. • if you have already retrofitted, what was the business case to justify the retrofit? • Continue to use paper insulated lead covered cable, or transition to another type of cable. • If transition, what are the details and justification for your transition • Are you doing anything to maintain paper insulated cable splicing skills?

9. Schedule of Events: Underground Network Initiatives • Dates Webinar Topic June 17 Future of Underground Network • July-AugustAnalysis of Results, Follow up with individual companies • Insights: AugustPresentations with practice examples

10. Discussion Topic Deliverables • Recordings and summaries of all webinar discussions • Listing or presentation of key insights/practices or “learning” gleaned from the webinars • Presentations of practices/ initiatives from companies

11. Thank you for your Input and Participation! Your Presenters Ken BuckstaffKen.Buckstaff@1QConsulting.com310-922-0783 Dave Canon Dave.Canon@1qconsulting.com 817-980-7909 Dave Carter Dave.Carter@1qconsulting.com 414-881-8641 Debi McLain Debi.McLain@1QConsulting.com760-272-7277 Tim. SzybalskiTim.Szybalski@1QConsulting.com 301-535-0590 About 1QC First Quartile Consulting is a utility-focused consultancy providing a full range of consulting services including continuous process improvement, change management, benchmarking and more. You can count on a proven process that assesses and optimizes your resources, processes, leadership management and technology to align your business needs with your customer’s needs. Visit us at www.1stquartileconsulting.com | Follow our updates on LinkedIn Satellite Offices Corporate Offices California 400 Continental Blvd. Suite 600El Segundo, CA 90245(310) 426-2790 Maryland 3 Bethesda Metro Center Suite 700Bethesda, MD 20814(301) 961-1505 New York | Texas | Washington | Wisconsin