understanding risk from eab: pay me now or pay me later

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Understanding Risk from EAB: Pay Me Now or Pay Me Later Ed Cunningham - ECI Terry Wright - LGE & KU

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Since its discovery in Michigan in 2002, Emerald Ash Borer (EAB) has spread to more than 22 states and two Canadian provinces, killing tens of millions of trees. Municipalities and utilities outside the current known areas of infestation must take steps to understand EAB’s potential impact to their electrical systems and public spaces. EAB illustrates a classic example of the pay-now-or-pay-later philosophy: pay now to develop a program to remove or treat ash trees that could impact infrastructure, thereby retaining cost control over these treatments; or wait and pay later, after the trees have died, and risk escalated removal costs, equipment damage, outages, lost revenue and negative customer impact.

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Page 1: Understanding Risk from EAB: Pay Me Now or Pay Me Later

Understanding Risk from EAB: Pay Me Now

or Pay Me Later

Ed Cunningham - ECI Terry Wright - LGE & KU

Page 2: Understanding Risk from EAB: Pay Me Now or Pay Me Later

LGE/KU TERRITORY

Page 3: Understanding Risk from EAB: Pay Me Now or Pay Me Later

Emerald Ash Borer (EAB)

What is an EABLifecycleFood SourceDispersionSigns/Symptoms Issues/ConcernsEffectsECI - Impact AnalysisMitigation

Page 4: Understanding Risk from EAB: Pay Me Now or Pay Me Later

What is an EAB?Emerald Ash Borer is an invasion beetleDark metallic green, slender and very smallHighly destructive to ash trees Native to China, Japan, and Russia

Found in Michigan in 2002▫ Cargo packing in ships

Page 5: Understanding Risk from EAB: Pay Me Now or Pay Me Later

Lifecycle

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Food Source

All ash in North America are susceptibleLarvae consumes the cambium layer

▫ Cambium is essentially the vascular system▫ Effectively girdles the tree, killing it quickly from the top down

Page 7: Understanding Risk from EAB: Pay Me Now or Pay Me Later

Dispersion

Normal flight is between one-half to two miles per year

Firewood has been a major means of transporting EAB

Page 8: Understanding Risk from EAB: Pay Me Now or Pay Me Later

Dispersion

▪ Federal EAB Quarantine Map▪ KY quarantined in 2014

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Signs/SymptomsThinning of tree canopyCrown diebackMortality in 1 - 4 years depending on tree size and vigor

Page 10: Understanding Risk from EAB: Pay Me Now or Pay Me Later

Signs/Symptoms

D-shaped exit holes in barkWon’t see holes in main trunk until tree has succumb to borerStart from the top (tender shoots) and work down

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Issues and Concerns

Total EAB infestation by 2022 in KY

Estimated 266 million ash trees in KY▫ Ash represents 4% of tree population

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Issues and Concerns

More expensive to remove▫ 25% of dieback, cannot safely climb▫ Trunks break off at ground line▫ Tree will also uproot due to root decay▫ Total removal, cannot make safe▫ Back yard bucket where feasible▫ Mortality within 1-3 years

Page 13: Understanding Risk from EAB: Pay Me Now or Pay Me Later

Effects of EAB in Michigan

EAB has killed an estimated 35 million ash

Consumers Energy:▫ Estimated 150% reliability increase

▫ 30 mph wind = 2 day event

▫ $18M per year for 10 years▪ Outage restoration costs▪ Lost revenue▪ Affect 1M additional customers per year

Page 14: Understanding Risk from EAB: Pay Me Now or Pay Me Later

Effects of EAB in Ohio

http://www.oardc.ohio-state.edu/hermslab/images/Herms_EAB_Trial_Results_July_2012.pdf

Effect of EAB in Ohio

Page 15: Understanding Risk from EAB: Pay Me Now or Pay Me Later

2012

ECI IMPACT ANALYSIS

Primary Goals:

▫ Quantify the number of Ash trees

▫ Estimate the budget requirements to remove Ash

▫ Estimate potential impacts to service reliability

Page 16: Understanding Risk from EAB: Pay Me Now or Pay Me Later

ECI IMPACT ANALYSIS

Methodology:

▫ Random survey over 18,000 miles

▫ 13 operational centers

▫ 533 sample points

▫ Half-mile increments

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ECI IMPACT ANALYSIS

Results:

▫ 54,000 Ash removals

▫ $27M over 10 years

▫ 16,000 additional tree outages▪ Impacting an additional 1M customers▪ SAIFI increasing 0.10

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Mitigation

LGE/KU appropriated $27M over 10 yrs. to “Battle the EAB”

Staffing▫ 2 full time work planners

Locating Permitting Mapping

▫ 16 crews (51 men) Removing

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Mitigation

Proactive vs. Reactive▫ Review every infested circuit annually▫ Proactivity is “KEY”

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Sources:▫ Impact Analysis of EAB on the LG&E-KU Distribution System. December 2012.▫ UK College of Agriculture website. Entomology Department. ▫ Emeraldashborer.com▫ Wikipedia.org▫ Herms_EAB_Trial_Results_July_2012. OSU Report. http://www.oardc.ohio-

state.edu/hermslab/images/Herms_EAB_Trial_Results_July_2012.pdf▫ Emeraldashborer.info▫ Poland, Therese; McCullough, Deborah (April–May 2006). "Emerald Ash Borer:

Invasion of the Urban Forest and the Threat to North America’s Ash Resource". Journal of Forestry.

▫ https://datcpservices.wisconsin.gov/eab/article.jsp?topicid=13

Questions?

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Slides to facilitate Q&A regarding ECI survey technique

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