System Improvements Resulting from NERC Evaluations

1. System Improvements Resulting from NERC Evaluations Wayne Ahl Santee Cooper EMS Users Conference September 24, 2007

2. Dependable Power | Dependable People

3. The mission of Santee Cooperis to be the state’s leading resource for improving the quality of life for the people of South Carolina.

4. Santee Cooper History • Enabling Act signed in 1934 • Employed more than 12,000 people • Cleared more than 225 square miles of swampland • Constructed 42 miles of dams and dikes and a 75-foot lock • Watershed covers 15,000 square-miles • Power flowed to first customer, Pittsburgh Metallurgical Company, on February 17, 1942

5. Santee Cooper Today • South Carolina’s state owned electric and water utility. • Service provider to more than 150,000 retail customers in Berkeley, Georgetown, and Horry counties, 32 large industrial facilities, 2 municipalities, and the Charleston Air Force Base. • Primary source of power distributed by the state’s 20 electric cooperatives to more than 668,000 customers located in all of the state’s 46 counties. • Wholesale water provider to 4 agencies via the Lake Moultrie Water Agency. • The all-time system peak is 5,563 MW (2007 summer).

6. Santee Cooper Today • Is the nation’s 4th largest publicly owned utility of its type based on generation, and 3rd largest based on MWh sales to ultimate customers. • Is the largest provider of power to South Carolinians based on ultimate customers served (788,302) and energy sales (25,064 GWh). • The system today includes over 4,500 MW of summer generating capability and 4,560 miles of transmission lines. • Is the first utility to offer Green Power - electricity generated by renewable resources like solar and decomposing garbage in selected landfills

7. Santee Cooper Today • The single biggest challenge is meeting the load growth. • The growth rate in Santee Cooper’s direct serve area has averaged 3.5 percent over the past 5 years. • Santee Cooper serves one of the state’s fastest growing areas, Myrtle Beach, directly. • The demand is expected to rise more than 30 percent during the next 15 years in the Southeast. • Santee Cooper experienced the addition of a record number of retail customers in 2006, 7474. • Santee Cooper is working on long term generation plan to meet the load growth.

8. 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 Santee Cooper ... brought hope into an era of depression.

9. Before Santee Cooper, less than 7% of South Carolina farms had electricity. Before Santee Cooper, less than 7% of South Carolina farms had electricity. Within a decade of initial construction, 91% were electrified.

10. Santee Cooper Watershed 15,000-square mile watershed

11. Santee Cooper Transmission System covers more than ¾ of South Carolina

12. ...a look at the Santee Cooper Grid Transmission lines - 4,560 miles Distribution lines - 2,541 miles Transmission substations - 83 Electric co-op delivery points – 346 Distribution and industrial delivery points – 75 Interconnections with other utilities - 18 Santee Cooper has largest transmission system in South Carolina. 02/14/07

13. Santee Cooper is ...the largest collector of used motor oil in South Carolina.

14. ...recovering more than 2 million gallons of used motor oil annually at 500 + collection sites.

15. Santee Cooper ...lakes produce both revenue and recreation benefits for South Carolina. Annual economic impact: $218 million. Employment in tourism: 3,400 jobs.

16. Preparatory Work for the Audit • Review and write/rewrite procedures. • Added new LCD screens to operator consoles to provide more finger tip information. • General building clean up – First impressions are important !! Indicates if you have your act together. • Began construction on Standby Control Center. • Implemented an EMS dash board display. • Began implementation of BlackBoard for a Viewable display of SC electric grid in both geographic and rectangular format. • Enhanced and solidified DTS.

17. Standby Control Center

18. Assessment Recommendations • Further develop functional backup control center and evacuation plans. • Have all system controllers participate in evacuation plans. • Expand the EMS state estimator model. • Upgrade voice and data communications for evacuation plans. • Incorporate a full system restoration drill into simulator training. • Develop a procedures management system.

19. Assessment Recommendations • Additional frequency points on geographic display to aid in system restoration and evaluation of island boundaries if the system separates. • Formalize the initial training curriculum for controllers, including development of learning objectives and measures for progress. • Formalize the evaluation process of promotion. • Develop lesson plans for simulator training to facilitate operator feedback and validate that effective learning takes place.

20. Post-Audit Review • Caused us to take a hard look at our overall operation. • Revealed our weaknesses, but also our strengths. • Allowed us to get funding that would otherwise be unavailable. • Our entire staff now communicates better and works more effectively because of the “journey”. • The controllers also now have more system visibility.

21. The End