NJ Future Sandy One Year Later Design LaRossa Oct 29 2013


Published on

A look at steps PSE&G is taking to make its power network more resilient to future severe weather. Part of the Sandy One Year Later conference Oct. 29, 2013, at Monmouth University, co-presented by the Union of Concerned Scientists and the Recovery Fund as well as New Jersey Future and Monmouth University.

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Who are we?
    PSE&G is NJ’s largest gas and electric utility.
    We serve over 70% of NJ’s population.
    We are a key participant in NJ’s drive to be a leader in Solar Generation and Energy Efficiency
    The statistics above speak for themselves…..
  • As you can see, PSE&G has a long standing history and reputation of being a leader in “Operational Excellence”.
    5 out of the last 8 years we have won the National Reliability One Award.
    11 years in a row we have been the recipient of the Northeast USA Reliability One Award.
    We were the 2010 EEI - Edison Award Recipient.
  • Extreme weather events have become more common in recent years. The Mid Atlantic alone experienced 3 major events in a 15 month period that ended with Superstorm Sandy. Restoring the power system in a timely fashion was a great significant restoration challenge for utlities and presents the question of how resilient should we be?
  • Superstorm Sandy made it clear that we need to take action now to protect against more extreme weather. And we can do so now without asking our customers to pay more than they do today. Had the proposed improvements been in place during Sandy, nearly half of PSE&G’s service interruptions would have been avoided and those who lost power would have been restored faster. All customers in our service territory will benefit from the proposed improvements.
  • It’s a balancing act for NJ stakeholders…….
    Customers want more…dependence on electricity has grown….
    Weather patterns are more extreme…..
    The PUC has a very difficult task…..approval of investments beyond what has been historically planned requires special treatment…..
    We must be assured that our investments are deemed prudent and the recovery will be timely.
    Many others also weigh in…….
    PSE&G firmly believes that working together we can all create a WIN……
  • NJ Future Sandy One Year Later Design LaRossa Oct 29 2013

    1. 1. Improving Utility Reliability and Resilience Ralph LaRossa President and COO PSE&G October 29, 2013
    2. 2. PSE&G at a Glance Electric Gas 2.2 Million 0.6% 1.8 Million 0.6% 41,641 GWh 3,397 M Therms Projected Annual Load Growth (2013 – 2015) 0.7%* 0.2%* Historical Annual Peak Load Growth Transmission (2008 – 2012) 0.4%** Customers Growth (2008 – 2012) Electric Sales and Gas Sold and Transported Projected Annual Load Growth Transmission (2013 – 2015) 1.4% Sales Mix Residential 33% 60% Commercial 57% 36% Industrial 10% 4% 2
    3. 3. PSE&G Reputation for Reliability 3
    4. 4. 2011-2012 Extreme Weather Events and Customer Outages Date Event Region Regional Outages PSE&G Outages August 2011 Tropical Storm Irene Mid-Atlantic 3,200,000 872,000 October 2011 Early Snow New England 3,000,000 637,000 November 2011 Windstorm California 400,000 July 2012 Wildfires California, Colorado 2,000,000 July 2012 Derecho Mid-Atlantic 4,200,000 October 2012 Superstorm Sandy Northeast, Mid-Atlantic 8,100,000 2,000,000 4
    5. 5. The Perfect Storm 5
    6. 6. Sandy Impacts and Response • Customers and Equipment – 1.98 million Customers impacted – 90% lost power during the event – 14 Switching Stations affected – 33% • 7 took storm damage, 6 Out, 1 Bus Section Failure – 51 transmission lines affected – 33% – 96 PSE&G Substations affected – 39% • 20 took storm damage, 76 Out • • • Planning immediately was focused on prioritizing transmission lines to be reenergized to restore switching and substations with the largest customer counts Work began immediately after storm surge receded at the stations and once wind gusts dropped below 40 mph in the divisions Current estimate of the cost associated with the restoration is between $250 - $300 million 6
    7. 7. Area Impacted by Storm Surge 7
    8. 8. Damage to Inside Plant – Sewaren 8
    9. 9. Outside Plant Damage Tree Locations Poles Circuits Services Lock Outs 48,000 2,400 2,900 8,300 2,900 9 9
    10. 10. Gas Distribution Impacts • 41,547 premises had inspections performed by PSE&G employees • Approximately 9,500 gas meters were replaced due to storm damage – Additional 5,500 electric meters were replaced in areas impacted by storm surge • Gas Infrastructure issues – Approximately 80,000 feet of gas main and service experienced water infiltration (All back in service) – 6 “pounds to utilization pressure” district regulators were impacted by storm surge 10
    11. 11. Gas – Hoboken Response 18th Street Field Command Center to support Hoboken Meters removed from Hoboken 11
    12. 12. Strengthening our System for the Future • PSE&G filed its Energy Strong Program with the NJBPU on February 20th , 2013. • Proposal - $3.9 billion in investments over the next 10 years to maximize our ability to respond to and recover from future severe weather events through system hardening and resiliency measures. • Proposal addresses both electric and natural gas system improvements • Public hearings were held in Sept. and Oct. 12
    13. 13. Make it Stronger “Hardening” - Physically changing the infrastructure to make it less susceptible to damage from extreme wind, flooding, or flying debris. Hardening improves the durability and stability of energy infrastructure, making it better able to withstand the impacts of hurricanes and weather events without sustaining major damage. Electric Facilities •Station flood mitigation - $1.7 billion to protect switching and substations •Improve outside plant design and construction standards - $135 million •Strengthen pole infrastructure - $105 million •Relocate/rebuild backyard poles - $100 million •Undergrounding - $76 million Gas Facilities •Replace 750 miles old cast iron gas mains - $1 billion •Protect M&R stations - $140 million 13
    14. 14. Make it Smarter “Resiliency” - Ability of an energy facility to recover quickly from damage to any of its components or to any of the external systems on which it depends. Resiliency measures do not prevent damage; but rather they enable energy systems to continue operating despite damage and/or promote a rapid return to normal operations when damages/outages do occur. • Deploy smart grid advanced technologies $451 million • Enhanced storm management system • Mobile apps for damage assessment • Advanced mapping to merge SCADA with storm damage information • Reconfiguration strategies - $200 million • Smart switches and fuses • Self healing loop schemes • Contingency reconfiguration strategies • Add additional redundancy 14
    15. 15. The Time is Right • These investments can be made in the next 10 years while keeping residential or business customer bills essentially flat – Restructuring and tax charges expiring in 2014 and 2016 will cover the cost of electric infrastructure investment. – Low natural gas prices and available labor make this the right time. – The costs of these investments will be spread out over the 40- to 60-year life of the assets. • Economic benefits – If approved, Energy Strong will create 5,800 jobs. – Energy Strong helps support New Jersey’s economy. 15
    16. 16. 16
    17. 17. Forward Progress: Balancing the Interests of all Parties Investors • • • Utility Customer PUC Consumer Advocate/ Other Parties Customers tolerance for outages is diminishing as they become more and more dependent on utility services Investors desire mechanisms with more timely cost recovery Utilities want clear guidance for investment and investment recovery to assure certainty of recovery Given that “doing nothing” is not an option, it is critical to get the rules right and balance the needs of all parties. 17