Customer Oriented ReliabilityChristopher G. Bieber, P. Eng.

Vice President, EngineeringMemphis Light, Gas & Water Division

220 South Main StreetMemphis, TN 38101

901 528 4692

2004 APPA National Conference

June 22, 2004

Acknowledgments• Cliff DeBerry, PE. Manager, Electric Engineering• Tom Wyatt, PE. Supervisor, Reliability & Power Quality• Don Roberts, Design Engineer, Reliability & Power Quality• Xavier Davis, Design Engineer, Reliability & Power Quality

See also

Customer-Oriented ReliabilityTransmission & Distribution World

Dec 2003Don Roberts and Xavier Davis

Our Vision

To be the best utility in America for Memphis.

Our Values• Leadership

• Service– Customers– Community

• Prosperity

Traditional Reliability Indexes

CAIDI = Sum of all the outage hours experienced by Customers per year / # of Customers who had an outage

ie. Average duration of an outage if you had one

SAIFI = Total of all the outages experienced by Customers per year / # of Customers ie. # of outages per year per connected Customer

SAIDI = Sum of all the outage hours experienced by Customers per year / # of Customers

ie. Hours of outage per year per connected Customer

Note: an outage has to be > 5 minutes long to count (IEEE definition)

M L G W’s Reliability Performance

MLGW2002

MLGW

2003(Storm Corrected)

2002

Large City Reliability Survey

Average

SAIFI

(Events per year)

1.55 1.41 0.98

CAIDI

(Hours per event)

1.65 1.69 1.65

SAIDI

(Hours per year)2.57 2.38 1.58

Traditional Reliability Indexes Are

• Good for– Utility performance comparisons, – Managing reliability at a “macro” level

• Not so good for– Understanding Customer’s demands– Managing reliability at a “micro” level– Communicating with Customers & Employees

Reliability performance as determined by survey

Outage Frequency Perceptions 2002

70%

75%

80%

85%

90%

95%

100%

Jan

Fe

b

Ma

r

Ap

r

Ma

y

Jun

e

July

Au

g

Se

pt

Oct

No

v

De

c

"Is a SAIFI of 1 acceptable"

"Is your outage incidence acceptable"

Overall satisfaction

Reliability performance as determined by survey

Outage Duration Perceptions 2002

70%

75%

80%

85%

90%

95%

100%

Jan

Fe

b

Ma

r

Ap

r

Ma

y

Jun

e

July

Au

g

Se

pt

Oct

No

v

De

c

"Is a CAIDI of 1.75 hours acceptable"

"Is your outage duration acceptable"

Overall satisfaction

Reliability Performance

Customers Out Per Month 2002

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

January

February

March

April

May

June

July

August

Septem

ber

October

Novem

ber

Decem

ber

Nu

mb

er o

f C

ust

om

ers

Reliability survey conclusions

• Survey responses were independent of actual outage history,

• The season appeared to be the biggest determinant of Customers perceptions of reliability,

• Summer appeared to have the greatest variance between demand and performance,

• Summer is storm season,

Reliability surveys are not very helpful.

What Reliability Do Customers Demand

“Your most unhappy customers are your greatest source of learning.”

-Bill Gates

Outages per Customer

0

20000

40000

60000

80000

100000

120000

1 2 3 4 5 6 7 8 9 >10

Number per year

Nu

mb

er

of

Cu

sto

me

rs

2002

2003

2 Customers with 17 Outages

5 Customers with 19 Outages

Analyzed Three Years of Customer Reliability Inquiries

• Over 600 Inquiries about Outage Frequency

• Over 250 Inquiries about Outage Duration

• Inquiries and letters to media during Hurricane Elvis

0

20

40

60

80

100

120# O

F C

OM

PL

AIN

TS

PE

R 1

0,0

00 C

US

TO

ME

RS

Customer Complaint CatalystsOutage Duration

Less than4 hours

4 to 6hours

6 to 10hours

Over 10hours

0

5

10

15

20

25

30

35

40# o

f C

om

pla

ints

per

10,0

00 C

usto

mers

1 Month6 Months Interruptions During 12 Months

222 33

3

4+

6+

4+

4

5

Customer Complaint CatalystsOutage Frequency

Customer Oriented Reliability

•Normal Operations – analysis shows•Prevent Customers from Experiencing Over 3 Interruptions Per Year •Prevent Outage Events Over 10 Hours in Duration

•Major Storms – data suggests•Prevent Outage Events Over 5 days in Duration

So What?

Organizational focus that everyone can understand!

Reliability Performance Targets

2003 2004

% of Customers experiencing > than 3 outages

<18% <16%

% of Customers experiencing an

outage > 10 hours

<1.5% <1.5%

Reliability Performance

Customers Experiencing > 3 outages

0%

5%

10%

15%

20%

25%

30%

35%

January

Febru

ary

Marc

h

April

May

June

July

August

Septe

mber

Octo

ber

Novem

ber

Decem

ber

Actual 2003Actual 2004

Reliability Performance

2003/2004 Outages > 10 Hours

0100020003000400050006000700080009000

Jan

Feb

March

April

May

June

July

August

Sept

Oct

Nov

Dec

Target

Month

Nu

mb

er

CARESComputer Aided Restoration of Electric System

Outage Management

• Outage planning, 1 outage vs >1 outage– No more circumvention of planned outage notification

process by keeping outages < 2 hours

• Outage review– when a Customers gets to 2 outages– outages > 10 hours

• Fix it right the first time if possible in <10 hours vs temporary repairs

Outage > 10 hour Reviews

Equipment Failure Reviews – 5 WhysMLGW Significant Event ReportSignificant Event Report (SER) # E- 1 Date of Event -8/20/02Description of Event What Happened;Cable fault on tie line between Substation 45 and Sta. 3 and GE oil breaker at Sta. 3 failed to open, resulting in outage to downtown customers.Root Cause Analysis (See http://www.insightshare.com/login/Knowledge_Base/tools/whys.html for guidance on how to do Root Cause Analysis using the 5 Whys)Why 1;Why did GE oil breaker at Sta. 3 fail to open? Trip bearing mechanism inside GE breaker was seized.Why 2;Why were the trip bearings mechanism seized?The lubricating grease on the mechanism had hardened.Why 3;Why was the grease hardened?Lubrication of the GE breaker mechanism was missed when the three year preventive maintenance of breaker occurred on February 18, 2002.Why 4;Why was lubrication of the GE breaker mechanism missed?Checklist on Power Circuit Breaker Inspection Record form #13227 was not filled out properly.Why 5;Why was checklist not filled out properly?Checklist form for lubricating GE oil breaker mechanism does not differentiate in type of breaker being worked on.Corrective Action PlanWhat By Who By When Place oil breaker type and brand on checklist form #13227 to remind that GE breakers require lubricating. Roy Harvey 9/20/02 Evaluate past breaker maintenances to examine that front-end task of lubrication on GE breakers and some Westinghouse have performed correctly. Roy Harvey11/15/02

Storm Management - EMERGENCY SEVERITY LEVELS

Severity Level

Circuit Outages

Customers Affected

# Resources to Fix# Resources to

Assess ExpectedDuration

Tree Trimming Line personnel (2 days max)

I15+ and partial

circuits15-25,000 In House (200) In House (200)

In House Engineers, URD

Linemen, CS, TS, TSCS

10 – 24 hours

II30+ and partial

circuits25-60,000 In House (200)

In House and EO + CS

In House Engineers, URD

Linemen, CS, TS, TSCS

24 hous

III 70 60-150,000 In House + 75All In House

and 150 outside

+ 3524 – 72 hours

IV 140 150,000 In House + 125All In House

and 400 outside

+7 0 5 days

V 300+ 350,000 In House + 150All In House

and 750 outside+ 150 7 days

Electric System - Reducing Outage Frequency

• Drive reliability work requests to the top of the priority list and follow up to ensure needed work gets done,

• Customize cycle tree trimming to reflect neighborhood tree characteristics, 3,4 or 5 year cycle,

• Supplement PE cable replacement with cable treatment• Target

– Animal proofing – Redesign & retrofit – Line inspection & corrective maintenance

to reflect reliability performance rather than geographic grids.

Electric System - Reducing Outage Duration

• Identified common causes for > 10 hour outages– Cable faults after hours – Vehicles hitting poles after hours

• Call in additional experienced personnel when event occurs rather than wait.

• Focus on susceptible poles• Erring on the safe side with storm watches• Distribution Automation evaluation

Electric System - Reducing Major Storm Outage Duration

• Upgrade critical circuits supplying hospitals, water (both well & station pumps) & waste water treatment facilities,

• Underground high risk portions of major circuits,• Install reclosures, sectionalizers and fuses at

strategic locations,• Improve funding for preventive capital &

maintenance programs,• Upgrade defective wooden structures.

Customer Inquiries per Quarter (1999 – 2004)

0

50

100

150

200

250

300

1/9

9

2/9

9

3/9

9

4/9

9

1/0

0

2/0

0

3/0

0

4/0

0

1/0

1

2/0

1

3/0

1

4/0

1

1/0

2

2/0

2

3/0

2

4/0

2

1/0

3

2/0

3

3/0

3

4/0

3

1/0

4

Quarter

Co

mp

lain

ts

1. The industry traditional measures of reliability, SAIDI, CAIDI & SAIFI need to be supplemented with Customer specific measures in order to minimize Customer complaints about reliability,

2. For MLGW, the data shows that keeping outage durations below 10 hours and outage frequency at no more than 3 outages per year to any Customer should minimize Customer complaints, and

3. It is too soon to know if the changes that MLGW has made in managing outages has reduced the number of Customer complaints, however the results to date are encouraging.

Conclusion