UPPCo s performance met or exceeded all of the proposed standards for the twelve-month period.

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1 March 26, 2015 Mary Jo Kunkle Executive Secretary Michigan Public Service Commission 6545 Mercantile Way Lansing, Michigan Re: Case No. U Dear Ms. Kunkle: Pursuant to Rules 31 and 32 of the Michigan Public Service Commission s Service Quality and Reliability Standards for Electric Distribution Systems, R and , enclosed for filing in this case is the Electric Performance Measurements Report of Upper Peninsula Power Company (UPPCo), covering the twelve-month period of January 1, 2014 through December 31, UPPCo does not have the systems and information at this time to calculate and report the same circuit repetitive interruption as described in the January 29, 2004 Commission order. This Commission order does provide the option of reporting on specific identifiable circuit segments. UPPCo is tracking and reporting outages by load sectionalizing device. The percentage reported by UPPCo represents the percentage of the load sectionalizing devices on the UPPCo distribution system that have experienced 5 or more outages in the last 12 months. UPPCo s performance met or exceeded all of the proposed standards for the twelve-month period. On February 2, 2014, the Michigan Public Service Commission issued an Opinion and Order in Case No. U-12270, in which it directed that all Michigan utilities 1) provide information related to SAIFI, CAIDI, and SAIDI reliability indices with and without major events, on a rolling five year average basis, using the industry standard IEEE method of calculation, and 2) file an annual power quality report which contains data on all primary customer power quality investigations conducted in the past year for end-use customers, derived from their power quality meters, and the outcome of each investigation. This report contains the Upper Peninsula Power Company January 1, 2014 through December 31, 2014 results and compliance status per those requirements. If you have any questions concerning service quality and reliability, please contact Jim Beyer at (920) For questions concerning reliability indices and/or power quality information, please contact Pete Hamacher at (920) Thank you. Sincerely, Keith E. Moyle Chief Operating Officer UPPCO

2 Upper Peninsula Power Company Electric Performace Measurements Report Overall Performance Standards January 1, December 31, 2014 Type of Measurement Meter Reading New Service Installation Complaint Response Average Call Answer Time Call Blockage Normal Conditions Outage Restoration Catastrophic Conditions All Conditions Same Circuit Repetitive Interruption Wire-Down Relief Performance Measurement new services installed in 15 business days or less formal complaints responded to in 3 business days or less Average call answer time (Seconds) customers restored in 8 calls blocked hours or less customers restored in 60 hours or less customers restored in 36 hours or less circuits experiencing 5 or more outages per 12 months response to wire down relief requests in 6 hours or less meters read January % 100.0% 100.0% % 84.5% NA 100.0% 0.0% 100.0% February % 100.0% 100.0% % 100.0% NA 100.0% 0.0% 100.0% March % 100.0% None % 94.5% NA 100.0% 0.0% 100.0% April % 100.0% 100.0% % 99.0% NA 100.0% 0.0% 100.0% May % 100.0% 100.0% % 99.5% NA 100.0% 0.0% 100.0% June % 100.0% 100.0% % 99.9% NA 100.0% 0.0% 100.0% July % 100.0% 100.0% % 99.2% NA 100.0% 0.0% 100.0% August % 100.0% 100.0% % 97.3% NA 100.0% 0.0% 100.0% September % 100.0% 100.0% % 99.7% NA 100.0% 0.0% 100.0% October % 100.0% 100.0% % 99.9% NA 100.0% 0.1% 100.0% November % 100.0% 100.0% % 99.4% NA 100.0% 0.1% 100.0% December % 50.0% 100.0% % 99.9% NA 100.0% 0.1% 100.0% YTD Average 96.65% 99.5% 100.0% % 97.3% NA 100.0% 0.0% 100.0% MPSC Proposed Annual Target 85% or more 90% or more 90% or more 90 seconds or less 5% or less 90% or more 90% or more 90% or more 5% or less 90% or more Annual Target Met Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Comments Repetitive outage - more than 7 outages in the last year Customer Credits Number Total Dollars 6 $ ) Based on scheduled meter reads. Majority of meters are scheduled to be read bi-monthly. (See Case No. U for meter reading waiver) 2) None = No complaints in reporting period 3) UPPCo only data, separate phone line for UPPCo customers to joint WPSC/UPPCo call center. 4) Data not available to report measurements as defined by U order. Data represents percentage of devices with 5 or more outages in last 12 months.

3 Background On February 2, 2014, the Michigan Public Service Commission issued an Opinion and Order in Case No. U-12270, in which it directed that all Michigan utilities 1) provide information related to SAIFI, CAIDI, and SAIDI reliability indices with and without major events, on a rolling five year average basis, using the industry standard IEEE method of calculation, and 2) file an annual power quality report which contains data on all primary customer power quality investigations conducted in the past year for end-use customers, derived from their power quality meters, and the outcome of each investigation. This report contains the Upper Peninsula Power Company January 1, 2014 through December 31, 2014 results and compliance status per those requirements. 1

4 Reliability Performance Reliability data is presented below in tabular form for all weather conditions and without major event days (MEDS) as defined per IEEE Upper Peninsula Power Company (UPPCo) All Weather Excluding MEDs per IEEE * Year SAIFI SAIDI CAIDI SAIFI SAIDI CAIDI Annual 5 yr Avg. Annual 5 yr Avg. Annual 5 yr Avg. Annual 5 yr Avg. Annual 5 yr Avg. Annual 5 yr Avg *UPPCo did not adopt the IEEE for MED tracking until Weather-normalized data prior to 2012 omitted outage statistics from "Major Storms". "Major Storm" Definition: Weather conditions that exceed system design limits and which satisfy all of the following: a. Extensive mechanical damage to the electric system. b. Outages involving more than 10% of customers served by district. c. More than1% of the customers service have not been restored within 24 hrs. 2

5 Reliability data is presented below in graphical form for all weather conditions and without major event days (MEDs) as defined per IEEE

6 2. Power Quality Report Power Quality Inquiry Process Upper Peninsula Power Company (UPPCo) has an existing process in place to investigate power quality issues or inquires presented by their customers. A power quality investigation commences when a customer contacts their assigned account representative. Once contacted regarding a power quality issue, the account representative will enlist the assistance of the appropriate personnel within the Distribution Operations and Engineering to conduct an investigation. A typical power quality investigation could include the following steps: 1.) A meeting with the customer to: - better understand their issues or questions. - collect dates and times associated with the customer's power quality issues. - review any electrical data the customer may possess. 2.) Setting a power quality meter at the customer's service point to collect additional data regarding the performance of the delivery system. 3.) An investigation into utility system events that may correlate with the dates and times provided by the customer. 4.) Comparing the gathered data to regulatory and industry standards/guidelines. 5.) A follow-up meeting with the customer to review the data analysis and event investigation. After meeting with the customer, the next course of action is dependent upon the results of the investigation. Actions may include but are not limited to: 1.) The repair or replacement of utility equipment causing a persistent problem. 2.) Working with a neighboring customer to modify operating procedures or equipment that is a source of the inquiring customer's power quality problems. 3.) The modification of the inquiring customer's operating procedures or equipment to ensure that their equipment can function effectively. Power Quality Monitoring At the present time the UPPCo electrical system is not equipped with permanently-affixed power quality monitors. UPPCo does have a fleet of portable power quality monitoring devices that can be installed when customer issues arise to assist in investigations Power Quality Inquiries Summary The investigation of power quality problems or inquiries begins with a contact by the inquiring customer to the respective UPPCo Account Representative. A survey of the UPPCo Account Representatives identified a single power quality inquiry from a primary metered customer in The following is a summary of the findings for that investigation. 4

7 Customer: Biogenics Reagents Date of initial investigation: 6/12/14 Substation/Feeder: KI Sawyer/1273 Customer Concern: Frequent VFD failures. Initial analysis of the damaged VFDs indicated possible exposure to voltage transients or carbon contamination as likely cause for failure. Investigative actions by UPPCo: UPPCo set power quality monitoring equipment at the customer s meter point in an effort to capture data related to voltage transients emanating from the utility supply system. The power quality monitor did not capture any voltage transients of consequence during the one week recording interval. Subsequent actions: As a preventative measure UPPCo turned off a capacitor bank that was located in proximity to the Biogenics Reagent facility, and turned on a different capacitor bank that was located in a different section of the distribution circuit. Biogenics Reagents installed filtration equipment to limit carbon contamination within their facility. Results: UPPCo is not aware of any further issues related to the VFD drives. 5