TE » Topics » Hurricane Storm Hardening

These excerpts taken from the TE 10-K filed Mar 5, 2009.

Hurricane Storm Hardening

Due to extensive storm damage to utility facilities during the 2004 and 2005 hurricane seasons and the resulting outages utility customers experienced throughout the state, in 2006 the FPSC initiated proceedings to explore methods of designing and building transmission and distribution systems that would minimize long-term outages and restoration costs related to severe weather.

The FPSC subsequently issued an order requiring all investor owned utilities (IOUs) to implement a 10-point storm preparedness plan designed to improve the statewide electric infrastructure to better withstand severe storms and expedite recovery from future storms. Tampa Electric implemented its plan in 2007 and estimates the average non-fuel operation and maintenance expense of this plan to be approximately $20 million annually for the foreseeable future.

The FPSC also modified its rule regarding the design standards for new and replacement transmission and distribution line construction, including certain critical circuits in a utility’s system. Future capital expenditures required under the storm hardening program are expected to average approximately $19 million annually for the foreseeable future (see the Regulation section).

Hurricane Storm Hardening

STYLE="margin-top:3px;margin-bottom:0px; text-indent:3%">Due to extensive storm damage to utility facilities during the 2004 and 2005 hurricane seasons and the resulting outages utility customers experienced
throughout the state, in 2006 the FPSC initiated proceedings to explore methods of designing and building transmission and distribution systems that would minimize long-term outages and restoration costs related to severe weather.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%">The FPSC subsequently issued an order requiring all investor owned utilities (IOUs) to implement a 10-point storm preparedness plan designed to improve
the statewide electric infrastructure to better withstand severe storms and expedite recovery from future storms. Tampa Electric implemented its plan in 2007 and estimates the average non-fuel operation and maintenance expense of this plan to be
approximately $20 million annually for the foreseeable future.

The FPSC also modified its rule regarding the design standards for new and
replacement transmission and distribution line construction, including certain critical circuits in a utility’s system. Future capital expenditures required under the storm hardening program are expected to average approximately $19 million
annually for the foreseeable future (see the Regulation section).

These excerpts taken from the TE 10-K filed Feb 26, 2009.

Hurricane Storm Hardening

Due to extensive storm damage to utility facilities during the 2004 and 2005 hurricane seasons and the resulting outages utility customers experienced throughout the state, in 2006 the FPSC initiated proceedings to explore methods of designing and building transmission and distribution systems that would minimize long-term outages and restoration costs related to severe weather.

The FPSC subsequently issued an order requiring all investor owned utilities (IOUs) to implement a 10-point storm preparedness plan designed to improve the statewide electric infrastructure to better withstand severe storms and expedite recovery from future storms. Tampa Electric implemented its plan in 2007 and estimates the average non-fuel operation and maintenance expense of this plan to be approximately $20 million annually for the foreseeable future.

The FPSC also modified its rule regarding the design standards for new and replacement transmission and distribution line construction, including certain critical circuits in a utility’s system. Future capital expenditures required under the storm hardening program are expected to average approximately $19 million annually for the foreseeable future (see the Regulation section).

Hurricane Storm Hardening

STYLE="margin-top:3px;margin-bottom:0px; text-indent:3%">Due to extensive storm damage to utility facilities during the 2004 and 2005 hurricane seasons and the resulting outages utility customers experienced
throughout the state, in 2006 the FPSC initiated proceedings to explore methods of designing and building transmission and distribution systems that would minimize long-term outages and restoration costs related to severe weather.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:3%">The FPSC subsequently issued an order requiring all investor owned utilities (IOUs) to implement a 10-point storm preparedness plan designed to improve
the statewide electric infrastructure to better withstand severe storms and expedite recovery from future storms. Tampa Electric implemented its plan in 2007 and estimates the average non-fuel operation and maintenance expense of this plan to be
approximately $20 million annually for the foreseeable future.

The FPSC also modified its rule regarding the design standards for new and
replacement transmission and distribution line construction, including certain critical circuits in a utility’s system. Future capital expenditures required under the storm hardening program are expected to average approximately $19 million
annually for the foreseeable future (see the Regulation section).

These excerpts taken from the TE 10-K filed Feb 28, 2008.

Hurricane Storm Hardening

Due to extensive storm damage to utility facilities during the 2004 and 2005 hurricane seasons and the resulting outages utility customers experienced throughout the state, in 2006 the FPSC initiated proceedings to explore methods of designing and building transmission and distribution systems that would minimize long-term outages and restoration costs related to severe weather.

 

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The FPSC subsequently issued an order requiring all investor owned utilities (IOUs) to implement a 10-point storm preparedness plan designed to improve the statewide electric infrastructure to better withstand severe storms and expedite recovery from future storms. In addition to a wood pole inspection program instituted separately, the plans address vegetation management, audits of pole attachments, transmission structure inspections and hardening, data gathering and analysis, natural disaster planning, coordination with local governmental agencies and collaborative research. In October 2006, the FPSC approved Tampa Electric’s plan to comply with the directive. Tampa Electric implemented its plan in 2007 and estimates the average non-fuel operations and maintenance expense of this plan to be approximately $20 million annually for the foreseeable future.

The FPSC also modified its rule regarding the design standards for new and replacement transmission and distribution line construction, including certain critical circuits in a utility’s system. Beyond employing accepted engineering practices and complying with the applicable edition of the National Electric Safety Code (NESC), the new design standard requires adoption of the NESC extreme wind loading standards for distribution facilities. The new design standards also encourage the placement of new or modified facilities underground when feasible. In 2008, Tampa Electric expects to invest approximately $22 million of capital for higher levels of transmission and distribution pole replacement, improvements to circuits serving critical infrastructure and the completion of the global information system required under the storm hardening program. Future capital expenditures required under the storm hardening program are expected to average approximately $19 million annually for the foreseeable future (see the Regulation section).

Hurricane Storm Hardening


Due to extensive storm damage to utility facilities during the 2004 and 2005 hurricane seasons and the resulting outages utility customers experienced
throughout the state, in 2006 the FPSC initiated proceedings to explore methods of designing and building transmission and distribution systems that would minimize long-term outages and restoration costs related to severe weather.

STYLE="margin-top:0px;margin-bottom:0px"> 


55








The FPSC subsequently issued an order requiring all investor owned utilities (IOUs) to implement a
10-point storm preparedness plan designed to improve the statewide electric infrastructure to better withstand severe storms and expedite recovery from future storms. In addition to a wood pole inspection program instituted separately, the plans
address vegetation management, audits of pole attachments, transmission structure inspections and hardening, data gathering and analysis, natural disaster planning, coordination with local governmental agencies and collaborative research. In October
2006, the FPSC approved Tampa Electric’s plan to comply with the directive. Tampa Electric implemented its plan in 2007 and estimates the average non-fuel operations and maintenance expense of this plan to be approximately $20 million annually
for the foreseeable future.

The FPSC also modified its rule regarding the design standards for new and replacement transmission and
distribution line construction, including certain critical circuits in a utility’s system. Beyond employing accepted engineering practices and complying with the applicable edition of the National Electric Safety Code (NESC), the new design
standard requires adoption of the NESC extreme wind loading standards for distribution facilities. The new design standards also encourage the placement of new or modified facilities underground when feasible. In 2008, Tampa Electric expects to
invest approximately $22 million of capital for higher levels of transmission and distribution pole replacement, improvements to circuits serving critical infrastructure and the completion of the global information system required under the storm
hardening program. Future capital expenditures required under the storm hardening program are expected to average approximately $19 million annually for the foreseeable future (see the Regulation section).

STYLE="margin-top:18px;margin-bottom:0px">Higher Capital Spending

Tampa Electric is in a
period of increased capital spending for infrastructure to reliably serve its growing customer base and to address the needs for future baseload and peaking generating capacity additions. In addition to the capital spending to comply with the storm
hardening plan described above and the need for additional generating capacity discussed below, Tampa Electric expects to make additional capital investments for its pro rata portion of state-wide transmission system improvements in Florida and to
meet the new NERC reliability standards. It also expects to invest additional amounts in its transmission and distribution system to improve reliability and reduce customer outages.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Based on its current forecast of long-term energy demand and sales growth, Tampa Electric has identified a need for new baseload capacity in early 2013
due to continued customer growth and the expiration of a long-term power purchase agreement with Hardee Power Partners. Its options to satisfy the baseload capacity need range from purchasing power to constructing its own generating facility. Tampa
Electric has in place contracts to meet its interim peak capacity needs for 2008 and plans to construct simple-cycle combustion turbine units to meet its peaking capacity needs in the 2009 through 2012 period.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top">In early 2007, Tampa Electric announced that its preferred technology to meet the 2013 baseload
requirement was a solid fuel IGCC unit. However, during the certification of need process and after filing the required environmental permit applications it became apparent that continued uncertainty related to CO
SIZE="1">2 regulations, particularly carbon capture and sequestration issues, and the potential for related project cost increases posed unacceptable economic risk to customers and investors,
and the project was deferred. As a result of the decision to defer the use of IGCC unit, Tampa Electric now expects to utilize combined cycle natural gas-fired technology to meet its expected 2013 generation expansion need. In Florida, the
construction of baseload capacity is subject to certain regulatory approvals that must be received prior to commencement of construction (see the Capital Expenditures and Regulation sections).

STYLE="margin-top:18px;margin-bottom:0px">PEOPLES GAS (PGS)

This excerpt taken from the TE 10-K filed Feb 28, 2007.

Hurricane Storm Hardening

Due to extensive storm damage to utility facilities during the 2004 and 2005 hurricane seasons and the resulting outages utility customers experienced throughout the state, in 2006 the FPSC initiated proceedings to explore methods of designing and building transmission and distribution systems that would minimize long-term outages and restoration costs.

The FPSC subsequently issued an order requiring all investor owned utilities (IOUs) to implement a 10-point storm preparedness plan designed to improve the statewide electric infrastructure to better withstand severe storms and expedite recovery from future storms. In addition to a wood pole inspection program instituted separately, the plans address vegetation management, audits of pole attachments, transmission structure inspections and hardening, data gathering and analysis, natural disaster planning, coordination with local governmental agencies and collaborative research. In October 2006, the FPSC approved Tampa Electric’s plan to comply with the directive. Tampa Electric is implementing its plan and estimates that the average incremental non-fuel operations and maintenance expense of this plan to be approximately $15 million annually.

The FPSC also modified its rule regarding the design standards for new and replacement transmission and distribution line construction, including certain critical circuits in a utility’s system. Beyond employing accepted engineering practices and complying with the applicable edition of the National Electric Safety Code (NESC), the new design standard requires adoption of the NESC extreme wind loading standards for distribution facilities. The new design standards also encourage the placement of new or modified facilities underground when feasible. These new requirements are expected to increase the capital expenditures required to expand the system to meet growing customer demand and to maintain system reliability by approximately $20 million annually (see the Regulation section).

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