Featuring PSEG’s Heidi Swanson, Director of Field and Metering Operations, and Tracy Kirk, Manager of Customer Technology. Facilitated by DNV KEMA's Don Denton, Vice President of Grid Modernization (Formerly with Duke Energy)

1. Documentnumber
The 100-Year Storm… Every Year
Key Strategies to Prepare for the Growing Impact of Climate Volatility on the Grid
Don Denton, Vice President of Grid Modernization,
Management & Operations Consulting, DNV KEMA

2. Agenda
 Introduction and Discussion - Don Denton
 Sandy and PSE&G: What to Do Now to Prepare for the Growing Impact of Climate
Volatility on the Grid? - Heidi Swanson, Director of Field and Marketing Operations,
and Tracy Kirk, Manager of Customer Technology
 Q&A
Don Denton Heidi Swanson Tracy Kirk

3. Storm Frequency and Severity are Increasing
Natural Disasters in the United States, 1980–2010. (Source: EPRI)

4. What is Being Done?
 System Hardening – Physical
changes to the grid to lower the risk of
storm damage. Hardening improves
the durability of the grid allowing it to
withstand the impacts of weather
events with minimal damage.
- Moving to underground infrastructure
- Targeted vegetation management
- Improved designs and standards
- Digital technology roll out and integration
(i.e., Smart Grid)
- DER integration
 Resiliency – the ability of utilities to
recover quickly from damage to the
grid.
- Increased labor force
- Standby equipment
- Restoration materials
- Enhanced field communications
- Heightened customer/stakeholder
engagement

5. Hurricane Sandy – 10/29/2012

6. Documentnumber
The 100-Year Storm… Every Year
What to Do Now to Prepare for the Growing Impact of Climate Volatility on the Grid
PSEG’s Heidi Swanson, Director of Field and Marketing Operations,
and Tracy Kirk, Manager of Customer Technology

7. Agenda
 PSE&G Company
 Super Storm Sandy – Highlights & Impacts
 Communications – Internally and with Customers, Media & Municipalities
 Planning for the Future – Energy Strong
7

8. Public Service Electric & Gas At a Glance
New Jersey’s oldest and largest
regulated utility.
75% of NJ’s population.
2.1 mil Electric, 1.7 mil Gas customers.
Robust Appliance Service & HVAC
competitive business.
Most Reliable Electric Utility in 2012,
5th time in last 8 years.
Regional leader for 11 straight years.
Winner of 2012 and 2013 Outstanding
Response to a Major Outage Event.

9. Four Historic Storms in Three Years
 Hurricane Irene was
followed immediately by
Tropical Storm Lee, causing
another 100,000 outages
 The October snowstorm was
the worst storm to date in
terms of damage to our
equipment
 The total number of
restorations for Sandy is
over 2.1 million, including
outages from a nor’easter a
week after Sandy struck.
 Significant impacts to our
gas customers each time—
flood inspections, gas leaks,
no heat orders
PSE&G’s Ten Largest Storms

10. Preparations for Super Storm Sandy
 PSE&G began preparations on October 23, 2012.
 Normal activities included safety preparation, 72 hour checklist, Mid-Atlantic Mutual
Assistance Calls
 PSE&G also implemented additional measures at substations that flooded during Hurricane
Irene
 And other specific line of business plans:
- Electric System Operations, Tree Trimming,
- Transmission, Gas Delivery &
- Customer Solutions

11. Forecast vs. Actual
 Actual weather from landfall at 8 pm
through the early morning
- Rainfall was consistent with forecast
- Winds through the evening were 40-65
mph with gusts upon landfall of up to 90
mph
- Winds were sustained through the night
precluding storm restoration to begin until 7
am
- Storm surge in the Newark Bay, Arthur Kill
and other tributaries ranged from 11-13.6’,
causing widespread flooding and
devastation to the region
 Forecasts on October 29, at 6 p.m.
- Additional rainfall of another ¼ - ¾”
- Winds 30-45 mph with gusts of 45-65 mph; Overnight at
15-30 mph, gusts of 30-50 mph
- Storm surge will be 3-6’ and will peak around midnight.
Storm surge recede by mid morning
11
 Super Storm Sandy began south of Jamaica on October 22, 2012, in the Caribbean Sea

12. Super Storm Sandy: Impacts and Response
 Super Storm Sandy Impacts
• 1.9 million customers impacted – 77%
• 14 switching stations and 96 substations affected – 40%
• 51 transmission lines affected – 33%
• 2400 pole jobs; 48,000 tree jobs, 1020 transformers
 Work began immediately after flood waters receded at the
stations and once wind gusts dropped below 40 mph in
the divisions
 1M customers restored in the first three days. 15 days to
complete restoration.
 Mutual Aid – like running another utility
• 15 staging locations, 4500 mutual aid workers
• Huge Materials and Logistics Effort – 50 hotels, 2000 bus
rides, parking and security for 1700 vehicles, all meals
 Cost associated with the restoration is approximately $300
million

13. 1
Coordinated
Content
PSEG.COM
Stakeholders
Employees
Press
Release &
Email Blasts
Twitter Link
ConstituentsCallers/General
Public
Communications:
Proactive, Multi-Channel, Transparent, Consistent

14. Call Center Operations
 Incremental staffing secured from within the company in addition to contractors to
assist with inbound and escalated calls
 Live agents answered 23.5% of incoming calls while technology handled 71.0% of the
2.2 million calls answered
 The total number of calls answered in 30 seconds were 1,914,194, with a 5.5%
abandonment rate and 88.9% service level
 Nearly 29,000 live outbound calls were made to customers, clearing 5,428 active no-
power orders
 At the conclusion of the storm, automated phone calls and emails were sent to all
customers verifying their power had been restored
14
Storm Comparison Superstorm Sandy Superstorm Irene Fall Snowstorm
Total Inbound Calls 2,350,711 859,069 885,078
Inbound Calls (Daily Average) 156,714 61,362 110,635
PSE&G CSRs (Daily Average FTEs) 385 213 262
Vendor CSRs (Daily Average Agents) 86 34 34

15. Customer Escalation Process
 Outreach to Public School Districts and Polling Places
 Formal Customer Escalation Process
- Customer Operations Delivery Emergency Response Center (DERC) staffed 24/7 for the
duration of the event
- Handled inquiries received by PSE&G Executives, Public Affairs, and Large Customer Support
- Verified that all escalated inquiries were scheduled to be worked
- Provided critical customers with feedback on status of work
 County OEM Support
- PSE&G County Office of Emergency Management (OEM) Liaisons provided Electric Divisions
with direct input on escalated customer outages
- Tracked the progress of the “high priority” escalated restoration jobs
 Gas Station Restoration Efforts
- Worked with the Gasoline Retail Association to identify stations with outages to expedite
restoration

16. Local Outreach
 Mobile Command Centers
- Customer Operations & Gas Delivery
- 90,000 Bags of Ice
- 57,000 Cases of Water
- 32,000 MREs (Meals Ready to Eat)
- Nine Centers
- Hoboken, Moonachie, Paramus, Plainfield,
Jersey City, Newark, West Orange,
Elizabeth, Burlington
- Staffed by associates from throughout PSEG
- Larger locations included tented areas and
generators, allowing customers to charge
electronic equipment
- Focal point for establishing gas inspection and
electric and gas restoration efforts
- Distribution channels for donations from a range
of charities, businesses and individuals
16

17. New Communication Processes
In addition to traditional media releases, we established new processes
- Daily conference calls between Divisions, Regional Public Affairs and Mayors
throughout the storm to update on restoration planning and progress
- COO of PSE&G held face-to-face meetings with over 100 State Legislative leaders
and mayors throughout the state
- Continuous dialogue with BPU President Robert Hanna
- Two conference calls per day with Governor Chris Christie
- Daily conference calls with reporters hosted by PSEG executives
- Newsprint, radio, web ads and e-mail blasts were leveraged to communicate storm
preparation, damage assessments, outage updates, restoration progress and
inspection of gas appliances
- Centralized and streamlined internal communications
- Twitter
17

18. The Significance of Mobile
Visits to pseg.com Visits to MyAccount

19. A New Storm Communication Channel is Born
Twitter Impressions: Combined number of potential users that saw an interaction with the
PSE&G username
Twitter Mentions: The number of times the PSE&G Twitter user name was used in a tweet
New Followers: New accounts following the PSE&G channel
Retweets: The forwarding of a message to followers
1
Storm Daily Average
Total Peak Day During Sandy Blue Sky Day
Twitter Impressions 53,667,331 8,700,244 3,577,822 20,325
Twitter Mentions 90,639 14,809 6,043 5
New Followers 52,944 12,411 3,530 12
Retweets 8,406 1,234 560 5
Twitter provided instant feedback from customers as events unfolded, and a broad reach that
traditional one-on-one interactions can’t achieve.

20. Key Influencer Tweets

21.  Proposed Legislation, December 2012
 Board Order, January 2013 (Results from Irene & Halloween Storm, 2011)
 Energy Strong Filing, March 2013

22. Why Make NJ Energy Strong?
 Sandy, Hurricane Irene, and the October 2011 snow
storm represent extreme weather patterns that may
become commonplace.
 For example, more than 30 distribution facilities, which
had never previously flooded, were impacted by
Sandy and/or Irene, leaving more than 800,000
people without power during Sandy.
 In light of these new weather patterns, the state’s
entire energy infrastructure needs to be rethought.

23. Why Make NJ Energy Strong: Cost of Inaction is TOO High…
 ..for businesses and families to bear.
 Hundreds of millions of dollars in lost revenue—
grocery stores, restaurants, etc.—will never be
recovered.
 If several switching stations had not been flooded:
 Newark Airport would have had the power
needed to operate.
 The refineries would have had the power
needed to operate.
 Hundreds of small businesses in Hoboken—
just to name one town—wouldn’t still be trying to
recover from the loss of business.

24. “Energy Strong” Proposal
 Filed on February 20, 2013, with NJ BPU.
 $3.9 billion investment over 10 years to make distribution systems more resilient to natural
disasters.
 Proposes to invest $2.6 billion in critical upgrades during the next five years including:
- $1.7 billion to protect the 31 switching and substations—including Sewaren, Newark, Linden,
Bayonne, and Hoboken—that were damaged by recent storms.
 Potential to invest an additional $1.3 billion dollars in the subsequent five years.

25. Energy Strong Would Also Provide…
• $1.04 billion to replace and modernize 750 miles of low-pressure cast iron gas mains in or near
flood areas.
• $454 million to deploy smart grid technologies to better monitor system operations to increase
our ability to swiftly make repairs.
• $215 million to improve pole distribution systems.
• $200 million to create redundancy in the system, reducing outages when damage occurs.
• $140 million to protect 9 natural gas metering stations and a liquefied natural gas station
affected by Sandy or located in
flood zones.
• $60 million to move 20 miles of overhead electric distribution lines underground.

26. Summary
 Storms are becoming more frequent and severe
 The changing nature of storm response:
- Resiliency and hardening
- Digitization
- Distributed energy resource integration
- Enhanced stakeholder engagement
 All while focusing on
- Safety
- Increasing reliability
- Affordable solutions that are environmentally sound
- Improved customer communications

27. Q&A
Don Denton
don.denton@dnvkema.com
Heidi Swanson
heidi.swanson@pseg.com
Tracy Kirk
tracy.kirk@pseg.com
Twitter: @tracykirk

28. Manage Your Risk with DNV KEMA’s Energy Consulting Expertise.
Learn more at dnvkema.com or contact us at info.consulting@dnvkema.com.
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