Report to the Board of Trustees September Operations. November 26,

Transcription

1 Report to the Board of Trustees September Operations November 26,

2 September, 2013 Safety 1 Worker 2 OSHA Safety Issues Month Year - Performance Summary Reliability 3 SAIDI 4 SAIFI 5 CAIDI 6 Momentary 7 SAIFI&CAIDI Sys. Duration Sys, Freq. Cust. Duration Frequency Comparative 8 Storm CAIDI 9 MCO- Cust Duration w Mult.Outages Customer Care 10 Cust. Sat 11 JD Power 12 JD Power 13 Cust. Care 14 Cust. Call Benchmark Business Residential Programs Resolution 15 ASA - Aver. 16 CC Answer 17 e-lert 18 Billing 19 Meter Speed to Answer Rate Bill Payment Accuracy Readings Customer Programs 20 ELI - Energy 21/22 Load-Econ. 23/24 Major Efficiency & Renew Development Major Accounts 25 Solar Rebates Process, Times System Operation 26 Generation 27 Cost by 28 Tie by Fuel Fuel Sales 29 ESO 29 SSM - Subs. 29 ES 29/30 Tree Trim 31 SSM - Subs Prev. Maint. Prev. Maint. El. Service T&D Miles Demand M. Backlog 32 Primary 33 Residential Cable Faults Cable Faults Financials 34 Revenue 35 Revenue 36 DSO - Days 37 Revenue 38 Sales Sys. Collections Write Off Sales Outstanding Sys.Sales $ GWh/ Budget 39 CapEx. Cost $/Customer Remarks: National Grid reserves all its rights under previously delivered Force Majeure notifications. Page # Performance Current Status At Risk On Target Description EOY Forecast Uncertain No Target Set

3 Worker Safety Current Month Goal = 5.65 Accidents Penalty = 7.8 Offset= 3.49 What is being measured: LIPA Chargeable Accidents as defined by the Existing MSA. Why is it Important: To ensure workers are safe and to reduce worker's compensation costs. At the end of September, the LIPA chargeable accident rate is 1.62 accidents per 200,000 hours worked, which is below offset. What is the goal: To reduce employees accidents/injuries. Time period: Monthly and Year-to-Date (Y-T-D) LIPA Chargeable Accidents per 200,000 Hours Worked January 2.19 February 2.19 March 2.09 April 2.09 May 1.81 June 2.28 July 1.62 August 1.71 September 1.62 October November December 2013 Data 2013 Penalty Range 2013 Target 2013 Offset Range 2012 Data 5-Yr Avg ( ) 1

4 Miscellaneous Issues DOT ISSUES There were no DOT related fines or penalties during. OSHA ISSUES There were no significant OSHA related fines or penalties during. RESULTS OF REGULATORY OR INSURANCE INSPECTIONS There were no scheduled or unscheduled insurance inspections by Factory Mutual Engineering or FM Global Insurance Company at any LIPA substation facility during. 2

5 System Average Interruption Duration Index (SAIDI) Current Month vs. 5-yr Monthly Average -10% or +10% of Measurement 50% Below 5-yr Avg. 50% Above 5-yr Avg. What is being measured: The current rolling 12 month total annual power outage time that the average customer experiences in a year. It is calculated by multiplying SAIFI x CAIDI. Interruptions of less than 5 minutes and those due to major storms are excluded from the calculation. (Lower is better.) Why is it Important: To assess System performance and reliability. What is the goal:to monitor and improve System performance and reliability as appropriate. Time period: Rolling 12 month average. The System Average Interruption Duration Index (SAIDI) for period ending September 30, 2013 was 44.7 minutes, 14.5% lower than in September 2012 and 17.2% lower than the previous 5-year average for September. Note: Outages occurring during Hurricane "Sandy" are excluded from the SAIDI calculation. SAIDI values are 12 month rolling averages. 75 System Average Interruption Duration Index (SAIDI) Duration (Minutes) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yr Avg ( ) Offset Trigger Target Penalty Trigger 3

6 System Average Interruption Frequency Index (SAIFI) Current Month vs. 5-yr Monthly Average -10% or +10% of Measurement 50% Below 5-yr Avg, 50% Above 5-yr Avg. What is being measured: The current rolling 12 month average number of times a customer was interrupted compared to the monthly 5 year average. It is computed by dividing the total number of customers interrupted in a year by the number of customers served. Interruptions of less than 5 minutes and those due to major storms are excluded from the calculation. (Lower is better) Why is it Important: To assess System performance and reliability. What is the goal:to monitor and improve System performance and reliability as appropriate. Time period: Rolling 12 month average The System Average Interruption Frequency Index (SAIFI) for 12 month rolling period ending September 30, 2013 was 0.613, 17.9% lower than in September 2012 and 19% lower than the previous 5- year average for September. T&S Event customer interruptions decreased by 9,226 for the 12 month period ending September 30, 2013 when compared to the 12 month period ending September 30, customer outages excluding major storms (63,211) were 11.5% lower than in September 2012 (71,437) and 2% lower than the previous 5 year average for September (64,490). Note: Outages occurring during Hurricane "Sandy" are excluded from the SAIFI calculation. SAIFI values are 12 month rolling averages. System Average Interruption Frequency Index (SAIFI) Outages Per Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yr Avg ( ) Offset Trigger Target Penalty Trigger 4

7 Customer Average Interruption Duration Index (CAIDI) Current Month vs. Monthly 5-yr Avg -10% or +10% of Measurement 50% Below 5-yr Avg. 50% Above 5-yr Avg. What is being measured: The current rolling 12 month average service restoration time or the average interruption duration for those customers interrupted during the year compared to the monthly 5 year average. It is computed by dividing the sum of the customer interruption duration by the number of customers who experienced interruptions. Interruptions of less than 5 minutes and those due to major storms are excluded from the calculation. (Lower 1.01 is better). Why is it Important: To assess System performance and reliability What is the goal: To improve System performance and reliability Time period: Rolling 12 month average The System average outage duration for the 12 month period ending September 30, 2013 was 72.9 minutes, 4.3% higher than in September 2012 and 2.7% higher than the previous 5-year average for September. The rolling 12 month CAIDI metric continues to improve monthly. This is reflected in the June 2013 CAIDI of 75.3 and the current CAIDI of Additionally, December 2012 was an extreme month of storm activity whose five storms added 5 minutes to CAIDI which is still reflected in the reported CAIDI metric. When this data drops off the reliability indices at the end of the year, CAIDI is expected to be reduced by approximately five minutes from June's level and will be within CAIDI's historical performance level. Note: Outages occurring during Hurricane "Sandy" are excluded from the CAIDI calculation. Major causes contributing towards CAIDI for the 12 month period ending September30, 2013 excluding major storms were: T&S Events (defective substation equipment), overhanging tree limbs falling onto wires, interruptions of unknown origin, motor vehicle accidents and entire trees falling onto wires. 85 Customer Average Interruption Duration Index (CAIDI) 80 Duration (Minutes) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yr Avg ( ) Offset Trigger Target Penalty Trigger 5

8 Momentary Average Interruption Frequency Index (MAIFI) Current Month vs. 5-yr Monthly Average -10% or +10% of Measurement 50% Below 5-yr Avg. 50% Above 5-yr Avg. What is being measured: The current rolling 12 month average number of times a customer is interupted momentarily for a duration less than 5 minutes compared to the monthly 5 year average. It is computed by dividing the total number of momentary customer interruptions by the number of customers served during the year. Momentary interruptions during major storms are excluded from this calculation. (Lower is better). Why is it Important: To assess System performance and reliability. What is the goal: To improve System performance and reliability. Time period: Rolling 12 month average. The Momentary Average Interruption Frequency Index (MAIFI) for period ending September 30, 2013 was 3.2, 23.8% lower than in September 2012 and 30.4% lower than the previous 5-year average for September. In, there were 445,108 momentary customer interruptions excluding major storms. Note: Momentary interruptions occurring during Hurricane "Sandy" are excluded from the MAIFI calculation. Momentary interruptions are those less than five minutes in duration. 5.0 Momentary Average Interruption Frequency Index (MAIFI) 4.8 Interruption Frequency Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yr Avg ( ) 6

9 Reliability Comparison to Other NYS Utilities (SAIFI & CAIDI) What is being measured : LIPA's reliability Indices compared to the other five NY State overhead utilities. (CHG&E, NIMO, NYSEG, O&R, RG&E)* Why is it Important: To assess LIPA's performance and reliability and to provide benchmarking for comparison to its peers. What is the goal: To monitor LIPA's position within NY State and effectively manage system performance and reliability. Time period: Twelve month rolling average as of September 30, * Other utilities statistics updated through September 30, As of December 31, 2012, LIPA had the best SAIFI value for all the overhead NY State utilities. Through September 30, 2013, the average LIPA customer experienced outages/year compared to an average of outages/year for the other utilities.* As of December 31, 2012, LIPA had the best CAIDI value for all the overhead NY State utilities. Through September 30, 2013, the average LIPA customer interruption duration was 72.9 minutes compared to an average of 114 minutes for the other utilities.* Note: Outages occurring during Hurricane "Sandy" are excluded from the SAIFI and CAIDI calculations. * Other utilities statistics updated through September 30, Months Between Interruptions - SAIFI 150 Outage Duration Time - CAIDI Months Minutes Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 LIPA 2012 LIPA Highest Other NYS Utility 2013 Highest Other NYS Utility 2012 Worst of NYS 2013 Worst of NYS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 LIPA 2012 LIPA Best Other NYS Utility 2013 Best Other NYS Utility 2012 Worst Other NYS Utility 2013 Worst Other NYS Utility

10 Storm CAIDI - Year To Date Customer Average Interruption Duration Index Current Month vs. Monthly 5-yr Average -10% or +10% of Measurement 50% Below 5-yr Avg. 50% Above 5-yr Avg. What is being measured: 139The current year to date average service restoration time or the average interruption duration for those customers interrupted during storm periods compared to the cumulative monthly 5 year average. It is computed by dividing the sum of the customer interruption duration by the number of customers who experienced interruptions. Interruptions of less than 5 minutes are excluded. (Lower is better.) Why is it Important: To assess System performance and reliability during storm periods. What is the goal: To improve System performance and reliability. Time period: Year To Date through. The System average outage duration during all storm periods year to date through September was 163 minutes*, 26.4% higher than the previous cumulative 5 year average through September of 129 minutes. There was one minor storm in. The 2012 year end Storm CAIDI was 122 minutes. LIPA's electric system experienced two devastating storms in early 2013, a powerful rain/wind storm at the end of January and Blizzard "Nemo" on February 8th. Combined, these storms affected over 138,000 customers with storm restoration times significantly longer than typical for the LIPA system. The resulting Storm CAIDI reached 265 minutes. 2013's subsequent storm periods have been more typical resulting in an improving average restoration time. This has resulted in Storm CAIDI improving to its present level. With normal storm activity during the remainder of the year, it is expected that Storm CAIDI will approach target level by December. * Fourteen storm periods through. 280 Storm CAIDI - Customer Average Interruption Duration Index 240 Duration (Minutes) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yr Avg ( ) Cumulative CAIDI Offset Trigger Target Penalty Trigger 8

11 MCO - Rolling 12 months Number of customers with greater than three Interruptions (PSC storms excluded) Current Month -10% or +10% of Target 50% 50% Offset Penalty What is being measured: The number of customers experiencing more than three non-storm outages during a 12-month period. Performance is assessed on the last day of each Contract Year. (Lower is better.) Why is it Important: To assess System performance and reliability for those customers who experienced the multiple outages during the rolling 12 month period. What is the goal: To improve System performance and reliability. The metric was established in 2007, targeting 3% improvement per year beginning in Time period: Rolling 12 month period ending September 30, The multiple customer outages for the rolling 12 month period ending September 30, 2013 was 34,292 customer interruptions, 46.9 % lower than the target of 64,535. There was one minor storm in. The current performance of the MCO Metric is being driven by the results of LIPA's Multiple Customer Outage Program, the Targeted Reliability Program, and the Circuit Improvement Program. It is expected that these programs will continue to have a positive impact on the MCO Metric and allow it to finish at year end between the Target and Offset levels. Note: Outages occurring during Hurricane "Sandy" are excluded from the MCO calculation. No. of Customers with greater than 3 interruptions (PSC Storms excluded) 120, ,000 80,000 60,000 40,000 20,000 0 MCO- Multiple Customer Interruptions 94,073 64,535 45,217 40,555 38,756 39,817 34,292 32,031 33,009 33,162 31,513 January February March April May June July August September October November December Data Penalty Target Offset 9

12 Customer Satisfaction What is being measured: The Customer Satisfaction contactor benchmark measurement is conducted by ISA. Beginning in May 2013, each month's sample is only among customers who contact LIPA on during the 6th abd 24th of every month. Satisfaction with services provided by LIPA is currently 77.8% for contactors. This is up (not statistically significant) from 77.1% last month (August contactors). Service satisfaction has now improved in each of the past three months and is now at the highest level observed since the series has been tracked (May 2013). Why is it Important: To set the appropriate LIPA Customer Service metric moving forward. **The survey data represented is for September 6-24, 2013 contactors. On May 22, 2013, after discussions with National Grid on PSEG's planned benchmarking activities and the discontinuance of the Ambassador Program, LIPA agreed (1) to waive and disclaim any claims and rights to deem National Grid as having failed the Customer Satisfaction Index Metric and the First Call Resolution Metric and any penalty payments in connection with the Customer Satisfaction Index Metric and the First Call Resolution Metric in the MSA for Contract Year 2013 and (2) to change the survey sample collection methodology by deleting Question No. 31B from the Contactor Survey Questionnaire ("Customer Satisfaction Waiver Agreement"). Percent Satisfaction with Services Jan'13 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Customer Satisfaction Historic Customer Satisfaction 10

13 Customer Satisfaction JD Power Business What is being measured: LIPA's stacked ranking performance among East Mid and Large utilities within the JD Power LIPA alternative model for electric Business. Why is it Important: To continuously improve how LIPA is performing among its East Mid and Large peers for business customers satisfaction. Time period: The JD Power Business Survey will now be reported on an annual basis. The 2013 annual survey results which measures April 2012 to December 2012 performance is reported below. The next annual survey results will be reported in February For the survey year ending December 2012, LIPA finished 23rd among the original 23 peer utilities in the east Mid and Large size companies in the 2013 full year JDP LIPA model; below the penalty level of 22nd place. PQR is the biggest factor (37%) and represents the largest opportunity. For the 2nd straight year LIPA business customers report the highest % of outages due to Hurricane (35% compared to East Large average of 17%). For the full year measured from April 2012 to December 2012, LIPA finished in 23rd place. See slide 10 for note on Customer Satisfaction Waiver Agreement. 11

14 Customer Satisfaction JD Power Residential What is being measured: LIPA's stacked ranking performance among East Large utilities within the JD Power LIPA alternative model for electric residential. Why is it Important: To continuously improve how LIPA is performing among its East Large peers. Time period: The JD Power Residential Survey will now be reported on an annual basis. The next annual survey results which measures June 2012 to May 2013 performance have been announced. For the survey year ending May 2013: LIPA finished in 17th place JDP residential East Large ranking using LIPA's alternative model. Power Quality & Reliability is the factor with the highest weight in the LIPA JDP alternative model (38%) and represents a primary opportunity. For the 2nd straight year LIPA business customers report the highest % of outages due to Hurricane (41% compared to East Large average of 18%). For the full year (June 2012 to May 2013) LIPA finished in 17th place. See slide 10 for note on Customer Satisfaction Waiver Agreement. 12

15 Market Planning & Implementation 2013 Customer Care Programs Customer Care Enabling Programs 2012 Year-End 2013 Current 2013 Year-End Enrollment Enrollment Enrollment Actual Actual Goal Goal LIPA "Manage My Account" (Cumulative Website Registrations) 394, , , ,610 Online Energy Analysis *Residential 273,114 32,860 27,000 36,000 **Commercial 12,486 13,698 13,455 13, ,600 46,558 40,455 49,734 Balanced Billing Accounts (Cumulative Enrollments) Residential 474, , , ,258 Commercial 9,447 10,292 11,569 11, , , , ,067 e-news Subscribers (Cumulative Enrollments) 335, , , ,446 Customer Care Transaction Programs 2012 Year-End Enrollment Current Year-End Enrollment Enrollment e-lert (Cumulative Enrollments) (non paper bill program) 75,935 88,358 84,381 88,085 Direct Pay (Cumulative Enrollments) 101, , , , Full-Year 2013 Year-to-Date Activity 2013 Year-End Activity Actual Goal Goal Electronic Bill Payments (Total payments made during the period) 3,667,692 2,857,945 2,811,280 3,814,400 (Payments include Web, LIPA Online and Bank Online payments.) * New Residential Home Energy Analyzer introduced mid-2012, 2013 will establish new user baseline ** Commercial Analyzer - current contract extension under negotiation 13

16 First Call Resolution What is being measured: First Call Resolution ( FCR ): measured by a statistically valid telephone survey of LIPA customers that have contacted a customer service representative during the Contract Year. Beginning in May 2013, each month's sample is only among customers who contacted LIPA between the 6th abd 24th of every month. Why is it Important: Improve customer satisfaction. Time period: Monthly reporting with YTD roll up for calendar year. A customer receiving FCR is determined by the percentage of customers answering "Yes" among total answering (excluding Don t Know and refused responses). First call resolution is at 78.8% this month ( contactors). This is higher than last month (August contactors: 75.4%) but the difference is not statistically significant. The Five-month average is 75.3%. The base for the survey starting with May contactors is only among those who made contact with LIPA on the 6th through the 24th of the month. Because this is only a partial month, results are not comparable to past months when contactors from all days of the month were included. **The survey data represented is for September 6-24, 2013 contactors. See slide 10 for note on Customer Satisfaction Waiver Agreement. 90% 80% 70% 60% 78.6% 71.0% 72.9% 75.4% 78.8% FCR Historic FCR 50% 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month of Contact (2013) Q5a. Again, thinking about your most recent telephone contact with LIPA, was your request settled or question answered during your first call? 14

17 Average Speed of Answer (ASA) - YTD YTD Results Goal = sec Penalty = sec Offset = sec DEFINITION / GOAL What is being measured : Annual average speed of call answer rate of all calls answered. Why is it Important: Customer satisfaction and ability to contact us for information. What is the goal: seconds (penalty = sec, offset = sec) Time period: Monthly reporting with YTD roll up for calendar year goal. This month's ASA performance of seconds was 22.9 seconds better than the annual goal of seconds. This performance was also 13.0 seconds better than the September 2012 figure of seconds. On a year-to-date basis, the ASA stands at seconds or 34.9 seconds better than the penalty threshold of seconds. Total rep volume of 148,265 was 6.8% higher than the September 2012 volume of 138,765. In order to reverse trend on this metric, the following temporary changes were made to the Contact Center: * Mandatory hour days on Mondays for all employees through May; * Hiring of 20 temporary employees to handle simple volume through April; * Hiring of additional temporary employees and cross training PT employees to train as Full Representatives to assist with increase in workload (note: training in total is 12 weeks); * Increased call review to identify trends or opportunities to conduct proactive customer communication or to provide employees with additional tools to assist customers. Data includes impacts from Hurricane Sandy Average Speed of Call Answer (ASA) Avg. Speed of Call Answer Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Month & YTD 2012 / Goal Penalty Offset

18 Call Center Answer Rate for Electric YTD Through 90% Doesn't Meet 92% YTD Results Meets 96% 98% Exceeds What is being measured: Annual answer rate of all calls offered. Why is it Important: Customer satisfaction and ability to contact us for information. What is the goal: Answer 93.5% of calls offered on an annual basis. Time period: Monthly reporting with YTD roll up for calendar year goal. The Call Answer Rate (CAR) for September came in at 96.3%, which was 2.8% better than the annual goal of 93.5%. The Call Answer Rate for September 2012 was 95.8%. On a year-todate basis, the CAR stands at 95.3% or +1.8% better than goal. Total volume of 240,850 was 2.0% higher than the September 2012 volume of 236,107. Total Rep volume was 6.8% higher, with IVR volume coming in (4.9%) lower. In addition to the higher rep volume this year, call handle time was also significantly higher than normal. Customer inquiries have become more in depth, requiring more thorough explanations and discussion. Data includes impacts from Hurricane Sandy. Call Answer Rate Call Center Monthly Call Answer Rate Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Month & YTD 2013 / Goal Penalty Offset 16

19 What What is is being measured: Adoption of of web-based presentment / payment. Why Why is is it it Important: Increased customer convience; convenience; Decreased transaction processing and and and costs. What What is is the the goal: goal: Increase customer enrollments. Time Time period: Y-T-D and and P-Y-E status by by month. CONFIDENTIAL - FOR INTERNAL USE ONLY 2013 LIPA Customer Care Transaction Programs e-lert (MSA Metric) - New enrollments in paperless billing continue to pace ahead of goal in September, continuing the momentum from July and August promotions. Electronic Bill Payments (MSA Metric) - The electronic bill payments metric is on track to deliver 100% of the overall goal. 90,000 85,000 80,000 75,000 70,000 65,000 60,000 "e-lert" Account Enrollments Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Actual Projection Goal Electronic Bill Payments 4,000,000 3,500, ,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Actual Projection Goal

20 Meets MSA Goal Billing Accuracy Doesn't Meet Exceeds What is being measured: Number of cancel and rebills on accounts. Why is it Important: Comparison of cancel and rebills to the number of bills rendered as a measure of bill quality. Billing accuracy for the 12 month rolling period ending is 99.35%. Since this is a rolling 12-month metric, the months of Hurricane Sandy are included and will continue to affect the monthly data through the end of What is the goal: Target 99.54%, Offset 99.59%, Penalty 99.5% Percentage Cancel & Rebills to Total Bills Rendered % Percentage 99.50% 99.00% 98.50% 98.00% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Percentage Offset Trigger Target Penalty 18

21 Meets YTD Meter Reading Performance Doesn't Meet Exceeds What is being measured : Number of meters estimated compared to meters scheduled to be read. Why is it Important: To obtain actual meter readings for billing. What is the goal: Actual read rate percentage. Time period: Monthly Meter reading performance is a measure of electric meters read. Total Adj Meters Scheduled to be Read: 619,238 Total Adj Meters Estimated: 20,790 Penalty Level: 94.78% Target 96.13% Offset Trigger: 97.48% Long Island meter reading surpassed the actual read rate goal of 96.13% and ended the month of September at 96.53%, Rolling 12 month at 96.43%. Electric Meter Reading Performance Current Year Electric Meter Reading Performance Previous Year Percentage 100.0% 97.0% 94.0% 91.0% 88.0% 85.0% 82.0% 79.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rolling 12 mo 2013 Aver Percentage Offset Trigger Target Penalty Percentage 100.0% 97.0% 94.0% 91.0% 88.0% 85.0% 82.0% 79.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD AVER 2012 Percentage Offset Trigger Target Penalty 19

22 Year-to-Date MWh Energy Savings -10% to +10% of Goal Efficiency Long Island (ELI) & Renewables % Below Goal 50% Above Goal What is being measured: MW demand reductions and MWh energy savings associated with LIPA's Energy Efficiency - Long Island (EE-LI) is estimating achieving 100% of its year-end MW Efficiency Long Island (ELI) and Renewables Programs. and MWh goals. Currently we are 15% above goal. Why it is important: Transform the market to adopt the use of energy efficient technologies which in turn defers generation additions. What is the goal: The goal is MW demand reduction and 263,702 MWh energy savings. Time period: YTD status by month. Residential Coincident Peak Reduction (MW) 1 Annualized Energy Savings (MWh) 2 Energy Efficiency YTD YTD Year-End YTD YTD Year-End Program Actual Goal Goal Actual Goal Goal Energy Efficient Products ,022 72,770 93,969 Cool Homes ,043 3,216 4,814 Resi Energy Affordability Partnership (REAP) ,248 3,226 4,480 Home Performance Programs ,398 2,669 4,017 Residential New Construction ,082 Residential Total: ,119 82, ,362 Commercial Commercial Efficiency Program (CEP) ,631 19,108 29,809 Solutions Provider ,502 47,622 71,040 Direct Install ,390 24,386 32,741 BOC N/A N/A N/A Commercial Total: ,523 91, ,359 ELI Total: , , ,721 Renewables Solar ,855 15,300 20,400 Wind Solar Thermal Renewable Total: ,958 15,737 20,982 TOTAL: , , ,703 1 Summer MW saved, net of free riders at the generator. 2 Annual MWh saved, net of free riders at the generator. 20

23 2013 Economic Development Load Growth and Job Impact Year-to-Date MW Load Growth -10% to +10% of Goal 50% Below Goal 50% Above Goal Added Load Actual # Projects Year-to-Date Year-End (1) Actual MW's Goal MW's Projected # Projects Projected MW's Goal MW's (2) Jobs Impact to Date Projects Completed Jobs Retained Jobs Attracted Expansion Jobs Total Jobs Month YTD Month YTD Month YTD Month YTD Month YTD ,438 (1) Year-End Projections for Economic Development = Y-T-D Actual plus anticipated projects identified to date. (2) Projected MW's includes 1.9MW job for AMMTIC which has a low probability of completion in

24 Projected-Year-End MW Load Growth -10% to +10% of Goal Economic Development 50% Below Goal 50% Above Goal What is being measured : Added load associated with Economic Development projects. Why is it Important: Measurement of the success of LIPA's Economic Development efforts. Year-end committed projects total 33, reflecting a total load of 9.84 MW. 18 projects have been completed to date for a total of 4.90 MW. What is the goal: This goal is 10 MW of added load. Time period: Y-T-D and P-Y-E status by month. Added Load in MWs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Actual Projections Goal 22

25 Year-to-Date MW Load Growth -10% to +10% of Goal 2013 Major Accounts Load Growth 50% Below Goal 50% Above Goal Added Load Year-to-Date Year End (1) Actual # Projects Actual MW's Goal MW's Projected # Projects Projected MW's Goal MW's (1) Year-End Projections for Major Accounts = Y-T-D Actual plus anticipated projects indentified to date. 23

26 Projected-Year-End MW Load Growth -10% to +10% of Goal Major Accounts 50 % Below Goal 50% Above Goal What is being measured: Added load associated with Major Accounts projects. Why is it Important: Measurement of the expansion activity associated with LIPA's largest customers. Year-end committed projects total 140, reflecting a total load of MW. To date, 89 projects have been completed for a total of 19.5 MW. What is the goal: This goal is 36.5 MW of added load. Time period: Y-T-D and P-Y-E status by month. Added Load in MWs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Actual Projections Goal 24

27 Meets YTD Solar Pioneer/Entrepreneur Program Rebate Processing Times Doesn't Meet Exceeds What is being measured: Number of days to process rebate applications for LIPA s Solar Pioneer/Entrepreneur program. Why is it Important: Customer/Contractor Satisfaction What is the goal: See below graphs Rebate Processing is above the established target for number of days between application received and pre-approval. These results are due in large part to reduced resource availability We continue to explore creative ways to fill gaps and supplement resources. Rebate Processing is above the established target for the number of days between receipt of electrical certificate and date of payment. These results are due in large part to reduced resource availability. We continue to explore creative ways to fill gaps and supplement resources. Time period: Measured monthly Number of Days # of # Days of Days Between Application Received and and Pre-Approval Target Target (Days) (Days) Sept Apr July Mar JulyMay Oct Aug Apr AugNov June May Sept July Dec June Oct Aug Jan July Nov Sept Feb Aug Dec Mar Oct Sept Nov Jan Apr Oct May Nov Dec Feb June Dec Jan Mar July Feb Jan Apr Mar Aug Feb MayMar Sept Apr Month Number of Days # of Days Between Receipt of Electrical Inspection and Date Paid Target (Days) Apr July Sept Mar JulyMay Aug Apr Oct Aug June May Nov Sept July June Dec Oct Aug July Jan Nov Sept Aug Feb Dec Oct Sept Mar Nov Jan Oct Apr Nov Feb Dec May June Mar Dec Jan Feb July Jan Apr Mar Feb Aug MayMar Sept Apr Month NOTE: For November and December of 2012 and January 2013, an average number of 10 days was used for the number of days between the rebate letter and the date that check was cut. This was due to not yet having access to see when checks were cut in SAP. For February and March an average of 5 days was used for this time period due to increased check runs being completed. 25

28 LIPA Generation by Fuel What is being measured: Fuel mix for energy produced for LIPA's retail sales and wholesale sales. Why is it Important: Indicates fuel sources of LIPA's power What is the goal: No specific targets or goals at this time Time period: Rolling 12-Months / Current Month Total retail and wholesale sales for 12-month rolling period and current month (reported in MWh, displayed as % of total sales). Nuclear includes Nine Mile Point 2 and Fitzpatrick contract. Renewables include energy from Bear Swamp and Landfill Gas. Economy purchases exclude any energy deliveries from firm contracts. For LIPA was a net economy buyer over Y49/Y50 to NYISO. ISO-NE Purchases, 10% October Rolling 12-Month NYISO Purchases, 6% ISO-NE Purchases, 12% NYISO Purchases, 2% PJM Purchases, 11% Gas, 42% PJM Purchases, 11% Gas, 44% Energy Efficiency, 6% Energy Efficiency, 6% Renewables, 3% Refuse, 4% Nuclear, 14% Residual Oil, 1% Distillate Oil, 1% Renewables, 4% Refuse, 4% Nuclear, 15% Distillate Oil, 0% Residual Oil, 1% 26

29 LIPA Cost by Fuel What is being measured: Fuel Costs of various resources Why is it Important: Indicates cost of fuel sources of LIPA's power What is the goal: No specific targets or goals at this time Renewables include energy from Bear Swamp and Landfill Gas. Nuclear includes Nine Mile Point 2 and Fitzpatrick contract. Economy purchases exclude any energy deliveries from firm contracts. Energy Efficiency costs are calculated based on the cost of energy efficiency programs implemented from 2007 to September 30, 2013 expressed in 2013 dollars. Time period: Rolling 12-Months / Current Month October $ $ $/MWh 200 $/MWh $51.12 $84.81 $21.60 $76.64 $ $30.81 $43.30 $51.82 $ $39.26 $ $22.53 $75.99 $ $30.30 $42.16 $36.76 $ Gas Residual Oil Distillate Oil Nuclear Refuse Renewables Energy Efficiency PJM Purchases ISO-NE Purchases NYISO Purchases 0 Gas Residual Oil Distillate Oil Nuclear Refuse Renewables Energy Efficiency PJM Purchases ISO-NE Purchases NYISO Purchases 27

30 LIPA Tie Line Sales What is being measured: Exports of power from Long Island (imported power is shown on Chart 26) Why is it Important: Provides an overview of Long Island energy position What is the goal: No specific targets or goals at this time Total exported power for 12-month rolling period and current month (reported in MWh, displayed as % of total economy sales). All economy transactions are scheduled by the ISOs. For, LIPA was a net economy buyer over Y49/Y50 to NYISO. Time period: Rolling 12-Months / Current Month October Northport - Norwalk Cable (NNC /1385), 24% Rolling 12-Month Cross Sound Cable (CSC), 1% Cross Sound Cable (CSC), 0% NYISO, 34% NYISO, 75% Northport - Norwalk Cable (NNC /1385), 66% 28

31 Workplan Completion Index Planned units for 2013 Actual units YTD Comments on Progress Meets Target ESO Current Month Expected Year End PM Bulk Electric System (BES) We expect to complete all PM ESD Substation Emergency Restoration Radios relays by year's end. Inspection - Under Frequency Load Rejection Relays SSM Transf/phase shifter Reactor & Regs IST In service test Hurricane Sandy and its Out of service test aftermath have placed stress on resources for the maintenance Tap Changer Overhaul programs. As of 10/21/13, 84.5% Transmission OCB preventative maintenance was Overhaul and Test completed, leaving 15.5% Transmission Gas Circuit Brkr Gas Circuit Breaker Test remaining to complete before years end. SSM has taken action Switchgear/Indoor Breakers to focus in on completing the ACB Overhaul maintenance program while delaying some support for capital OCB Overhaul 2 1 projects. Any failures in the VCB Overhaul second half or changes to the GCB Overhaul 3 4 capital work plan will only Swgr Inspection 28 6 exasperate the already expected Batteries 20% overtime planned to First Half complete the PM and Capital program. SSM would expect to Second Half complete 95% (Meeting the Pump houses Matrix Goal) of the maintenance, ATO while addressing expected Oil test OCB's* impacts on equipment operation Thermovision All Substations in the twelve (12) flooded stations. Network Protectors Totals Electric Service ATO's Thermography 100% ACR's completed in August Capacitors Thermography - QN/ES, System Transmission Tree Trim Transmission Miles See page 30 for Analysis. Distribution Miles LIPA initiatives NG Lead 2013 Milestones 2013 Status Workplan Completion Index: Measured as the completion of the following three components in their entirety (subject to accidental, incidental and minor omissions): O&M Workplan, Capital Workplan and Corporate Initiatives. Prior to the beginning of each Contract Year, the parties will agree as to the O&M Workplan, the Capital Workplan and the Corporate Initiatives for such Contract Year. O&M Workplan: the entire T&D maintenance annual plan, established each Contract Year. During the Contract Year, LIPA or the Manager, subject to LIPA s approval, may exclude certain planned maintenance activities in any particular Contract Year. However, any excluded maintenance activities will be added to the subsequent Contract Year s O&M Workplan. Capital Workplan: the total of all scheduled capital projects and programs, established based on each Contract Year s approved budget, as adjusted from time to time by LIPA or the Manager, subject to LIPA s approval, throughout each Contract Year. Corporate Initiatives: the completion of all corporate initiatives that are identified by the parties on an annual basis. LIPA or the Manager, subject to LIPA s approval, may exclude certain planned corporate initiative activities in any particular Contract Year. However, any excluded activities will be added to the subsequent Contract Year s Corporate Initiatives. 29

32 Meets Tree Trim Program Doesn't Meet Exceeds What is being measured: Distribution Tree Trim Circuit Miles Why is it Important: System reliability. What is the goal: Complete 1,600 miles of distribution circuit tree trim pruning by year end. Time period: Year-to-date (YTD). Approximately 1140 of the 1600 miles designated as the program have been trimmed. Due to the severe winter weather and a large increase in customer requests created by Hurricane Sandy, slower than anticipated progress was seen by the contractor workforce for the first half of The past four months have seen a ramp up of trimmers and equipment along with a greater focus of that work force on the distribution trim program. The affects of this ramp up have been seen in the past two months results. Planned miles to be completed were obtained from each contractor and have been depicted on the graph for the remainder of the year indicating completion of the program in December. Distribution Circuit Miles 1,600 1, Year to Date Distribution Tree Trim Miles 2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tree Trim Completed Actual Planned Year End Goal Circuit Work as of 9/30/13: Completed: 74 In Progress: 13 Remaining: 27 Total by Year End:

33 Substation Maintenance Backlog YTD Results Goal =34 Jobs Penalty = 83 Jobs Offset= 0 What is being measured: The number of Substation Demand Maintenance (DM) jobs not completed (backlogged) in Priorities 1 and 2. This metric is measured as the number of jobs in the Substation Maintenance Backlog at the end of each contract year. Why is it Important: Ensures damaged equipment is repaired in a timely manner. What is the goal: Target goal is 34 jobs at year end. Time period: Monthly reporting. Goal measured at end of calendar year goal At the end of September, there are 2 DM priority 1 & 2 jobs in backlog. The number of jobs in the first few months of the year were impacted by Hurricane Sandy's aftermath, as the graph below displays. The number of jobs in total have been declining towards offset the last few months. # of Jobs Data 2013 Penalty Range 2013 Target Range 2013 Offset Range 2012 Data 5-Yr Avg ( ) January February March April May June July August September October November December 31

34 Primary Cable Faults YTD Results Goal = Days Penalty = Days Offset= 9.79 Days What is being measured: The average number of days required to return a faulted primary cable to normal service. Primary cable faults will include substation exit cables, three phase main lines and main line dips and all three phase CIPUD cables. Why is it Important: To ensure the LIPA Service is returned to optimal configuration as soon as possible. What is the goal: Target of Days to return a Primary cable to normal. Time period: Monthly reporting with YTD rollup for calendar year goal At the end of September, the average number of days required to return a faulted primary cable to normal service is 5.47 days. Data includes impacts from Hurricane Sandy. The average number of days to restore a primary cable has been in offset for all of this year. 20 Days Data 2013 Penalty Range 2013 Target Range 2013 Offset Range 2012 Data 5-Yr Avg ( ) 5 0 January February March April May June July August September October November December 32

35 RUD Cable Faults YTD Results Goal = Days Penalty = Days Offset= Days What is being measured: The average number of days required to return a faulted RUD cable to normal service. This includes all primary loops, both single and multiple phase Residential Underground Cable Faults. Why is it Important: To ensure the LIPA Service is returned to optimal configuration as soon as possible. What is the goal: Target of Days to return a RUD cable to normal. Time period: Monthly reporting with Y-T-D rollup for calendar year goal As of the end of September, the average number of days required to return a faulted RUD cable to normal service is 8.4 days. Data includes impacts from Hurricane Sandy. The average number of days to restore a RUD cable has been in offset all of this year Days Data 2013 Penalty Range 2013 Target Range 2013 Offset Range 2012 Data 5-Yr Avg ( ) January February March April May June July August September October November December 33

36 Revenue Collections DEFINITION What is being measured: Total Arrears Outstanding. Why is it Important: It is a measure of the aging of A/R. Time period: January 2012 to the current month. Arrears totaled $164,032,977* at the end of. Arrears were distributed over 184,096 residential accounts and 20,001 commercial accounts. Arrears are being impacted as a result of Hurricane Sandy and the delayed commercial billing. At the end of September arrears: 30 Day - Residential $38,307,274; Commercial $22,407, Day - Residential $21,560,817; Commercial $7,669, Day - Residential $65,838,548; Commercial $8,249,457 *These amounts exclude disputed LIRR contract charges. LIPA Billed Revenue to 180 Day Aging of Arrears , ,000 Roll Rate % Dollars in thousands 80,000 60,000 40, , Jan Feb Mar April May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Day Day Day Day Day Day 34

37 Projected Year-End Meets MSA Goal Collections Jessica Galvin DEFINITION What is being measured: Write Off less Bankruptcies > 250K and Total Write Off as a percent of revenue (6 month lagged). Why is it Important: This is a measure of losses as a percentage of revenue. What is the goal: Per the LIPA MSA Write off as a percentage of Revenue penalty level is.63% Time period: Year-to-date (YTD) Percentage Less Bankruptcies and 2013 compared to 2013 target and penalty. Write Off as a Percentage of Revenue In, the net write-off was % of revenue (6 months lagged) vs. September 2012 when this figure was % of revenue (6 months lagged). shows net write-off less bankruptcies > $250K at % of revenue (6 months lagged) vs. September 2012 when it was % of revenue (6 months lagged). Final bills continue to increase and we expect this metric to continue to rise until the end of the year. Recovery initiatives will continue by focusing on increasing transfers of past balances to customer's active accounts. Additionally, monitoring of agency performance along with evaluation of commission structure and incentives will be continued. Increased monitoring of security deposits on accounts with the highest risk of loss. Data includes impacts from Hurricane Sandy. Doesn't Meet Exceeds 0.80% 12 Month Revolving Write Off as a Percentage of Revenue Less Bankruptcies > 250K 0.80% 12 Month Revolving Write Off as a Percentage of Revenue 0.70% 0.70% 0.60% 0.60% 0.50% 0.50% 0.40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Target- 0.46% 2013 Penalty- 0.63% 0.40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

38 Projected Year-End Meets MSA Goal Days Sales Outstanding (DSO) Doesn't Meet Exceeds E d DEFINITION What is being measured: Average Days Sales Outstanding. Why is it Important: This is a standard accounting measure. What is the goal: Per the LIPA MSA DSO penalty level is Time period: DSO Relative to Target-Current year compared to target and penalty. DSO- 2 Years, plus 5 year average. The DSO for is at days vs days in September The DSO calculation excludes the LIRR arrears in CAS. The DSO figure has been increasing. Due to Hurricane Sandy, our collection efforts were hindered due to the requests of LIPA to suspend all collection activities from October 29, 2012 through January 31, In addition, the delayed commercial billing has impacted the DSO. Data includes impacts from Hurricane Sandy DSO Relative to Target Days Sales Outstanding (DSO) Avg Days Outstanding Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Actual 2013 Target Penalty Offset Yr DSO Average 36

39 Meets +-2 % Revenue for System Sales by Major Sector Doesn t Meet - 6% Exceeds + 6% What is being measured : Total System Sales Revenue by major sector components. Why is it Important: The goal is important because revenues cover LIPA's operating and capital expenses. What is the goal: Track actual and weather normalized revenue results for consistency with projections contained within LIPA's Operating Budget. The actual YTD revenues were above budget by $158M (5.8%). The weather normalized revenues were above budget by $152.5 M (5.6%). The weather normalized sales revenues for the residential sector were 7.5% above budget and for the commercial/industrial/street light/opa sector were 3.3% above the budget. Time period: Year-to-date (YTD). Revenue Year To Date - Actual Normalized Forecast Millions $3,500 $3,000 $2,500 $2,000 $1,500 A c t u a l N o r m a l F or e c a s t $1,000 $500 $0 A N F A N F A N F A N F A N F A N F A N F A N F A N F A N F A N F A N F Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Residential Commercial/Industrial/St Light/LIRR 37

40 Meets +- 2% System Sales by Major Sector Doesn't Meet - 6% Exceeds + 6% What is being measured: Total System Sales by major sector components. Why is it Important: The goal is important because sales produce revenues to cover LIPA's operating and capital expenses. What is the goal: Track actual and weather normalized sales results for consistency with the projections contained within LIPA's Operating Budget. The actual YTD system sales were below budget by 298 GWh (1.9%). The weather normalized YTD system sales were below budget by 332 GWh (2.1%). The weather normalized sales for the residential sector were below the budget by 108 GWh (1.4%) and for the commercial/industrial/street light/opa sector were below the budget by 224 GWh (2.7%). Notes: 1. Actual and Normal results include the Brookhaven Hydro contract and Recharge NY. Time period: Year-to-date (YTD) Sales Year To Date - Actual Normalized Forecast GWh 20,000 15,000 10,000 A c t u a l No r m a l F o r e c a s t 5,000 0 A N F A N F A N F A N F A N F A N F A N F A N F A N F A N F A N F A N F Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Residential Commercial/Industrial/St Light/RR/BNLH/RNY 38