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					     News from the Oklahoma Corporation Commission
                         Matt Skinner, Public Information
       Phone: (405) 521-4180, FAX: (405) 521-6945 m.skinner@occemail.com

                                       April 28, 2006

                           KEEPING THE LIGHTS ON
       New Commission “reliability report card” shows how electric utilities are doing

(Oklahoma City) The Oklahoma Corporation Commission‟s annual Reliability Scorecard
has been released, giving Oklahomans who are customers of regulated electric utilities the
ability to see how their respective company is doing when it comes to providing reliable
service.

Commission Chairman Jeff Cloud said the Scorecard is part of an effort aimed at helping
both the utilities and their customers.

“The full reliability report from each utility includes a required description of the utility‟s
program for analyzing and improving its worst-performing circuits as well as a review of
the results of past programs,” said Cloud. “The bottom line is that it is a tool that can be
used by both the customer and company in evaluating performance and planning
improvements aimed at minimizing the frequency and duration of electric service
interruptions.”

Commissioner Denise Bode said the Scorecard graphically illustrates the need for
infrastructure improvement.

“While there were several wide spread severe storms that occurred during the reporting
period (2005) that did influence the estimates toward the negative side, anyone looking at
this Scorecard can see there is a problem,” said Bode. “The good news is that the
Commission has been working with the regulated electric utilities over the past year to
ensure they have the resources they need to make critical infrastructure improvements in
order to provide, at the best possible price, the reliable service so critical to the future of
our high-tech economy.”

Commissioner Bob Anthony Commissioner Bob Anthony said the report introduces an
amount of market influence into an otherwise regulated monopoly industry.

“The reliability report shows where each of these companies stands in regards to other
electric utilities in the state and gives them an incentive to remain at the top of the service
quality list,” said Anthony. “At the same time, as the agency charged with the difficult task
of ensuring reliable service at rates that are „fair just and reasonable‟ for both the
consumer and the company, the Reliability Report provides us an illustrative, valuable
„real world‟ snapshot.”

A summation of the 2006 Reliability Scorecard is attached.
                      2006 RELIABILITY SCORECARD

   What is the Reliability Scorecard?

   The Reliability Scorecard was ordered by the Corporation Commission in order to
   provide a tool regulators, businesses, and residential consumers can use to monitor the
   performance of Oklahoma’s regulated electric utilities, with an emphasis on noting
   what, if any, improvements have to be made and once implemented, whether such
   improvements are effective. The Scorecard is required under Commission rules on
   electric reliability. These rules contain a number of terms that may be unfamiliar to
   many. For definitions, click here.

   This is the second year for the scorecard.

   What companies does the Scorecard cover?
       The following companies provided data pursuant to those rules:

                                                                 OKLAHOMA CUSTOMERS
                                                                      AT YEAR-END
     COMPANY                                                      2004           2005
     Oklahoma Gas & Electric Co.1                                   664,678        682,808
     Public Service Co. of Oklahoma                                 505,633       510, 325
     Northeast Oklahoma Electric Coop., Inc.                         36,598         37,260
     Verdigris Valley Electric Coop., Inc.                          28,9003         32,290
     Canadian Valley Electric Coop.                                  21,600         22,208
     Xcel Energy                                                       9,436         9,434
     Empire District Electric Co.2                                     5,665         5,641
     Arkansas Valley Electric Coop., Corp.                          52,9894          4,299
       1
           OG&E used its average number of Oklahoma customers for 2005 (670,164) in its
           computations.
       2
           Empire District used a customer count of 6,885 in its computations because, while that
           number included customers outside of Oklahoma, all were served using the same
           circuits.
       3
           Verdigris Valley used an estimated 30,000 customers in its computations.
       4
           Arkansas Valley reported system-wide data for 2004.




   How is the Scorecard compiled?
    The Scorecard is compiled from data detailing such things as the number of customer
interruptions and the total number of customers served. This data is used to formulate
indices used nationwide to measure electric utility company reliability. These indices are
part of the Institute of Electrical and Electronic Engineers (IEEE) standard. These indices
are:

   SAIFI – which stands for System Average Interruption Frequency Index

   SAIDI – which stands for System Average Interruption Duration Frequency Index

   What’s the difference between the two indices?

   SAIDI (“D” – duration) measures the total length of the interruptions in hours or
minutes per year.

    SAIFI (“F” – frequency) measures how many interruptions occurred.

   Here are the formulas used for each index:


   SAIDI = Sum of all customer interruption durations
              Total number of customers served

    SAIFI = Total number of customer interruptions
                Total number of customers served


It is important to understand that SAIFI an SAIDI are what are called “weighted
performance indices.” They stress the performance of the worst performing circuits, and
the utility company’s performance during “major events” (e.g., severe storms) that last
less than 24 hours.

Data points for each company that provided the SAIDI and SAIFI indices for year 2005
and the prior 5 years were plotted. The SAIDI and SAIFI indices were plotted in order to
present a visual comparison among the companies. Since there is not a standard to
measure the companies’ performance against, averages for the state for both SAIDI and
SAIFI were calculated using the data provided by each company.

The worst performing circuits were provided according to the rules. These will be
monitored and the date that they are removed from the list will be noted.
The SAIFI and SAIDI reliability indices are based on 12 months of system performance data ending December, 2005, and exclude
"Major Events" as defined by OAC 165:35-25-13. The Oklahoma Average SAIFI and SAIDI were estimated by first computing a
weighted average of the combined data for each statistic, and second computing a simple (unweighted) average in a similar manner.


                                                  Chart 1. All Electric Companies - 2005 SAIFI
                                              3




                                          2.5
     Average Interruption Frequency




                                              2




                                          1.5




                                              1




                                          0.5




                                              0
                                                   OG&E      OG&E    OG&E    OG&E    OG&E     PSO       PSO       PSO       PSO     NE Total                                 Verdigris Canadian          Empire     Arkansas
                                                                                                                                               NE Vinita NE Grove NE Pryor                        Xcel
                                                  Total OK    East   North   South   West   Total OK   Lawton   McAlester   Tulsa     OK                                      Valley    Valley           District    Valley
                              SAIFI                 1.39     1.37    1.24    1.46    1.27     1.46      1.33      1.79      1.44      0.13       0.13     0.11      0.16       2.18     1.92      0.09    2.47        0.27

                              OK Weighted Avg       1.40     1.40    1.40    1.40    1.40     1.40      1.40      1.40      1.40      1.40       1.40     1.40      1.40       1.40     1.40      1.40    1.40        1.40

                              OK Simple Avg         1.24     1.24    1.24    1.24    1.24     1.24      1.24      1.24      1.24      1.24       1.24     1.24      1.24       1.24     1.24      1.24    1.24        1.24

                                                                                                                            Company
 Please note that several wide spread severe storms occurred during 2005 that resulted in outages of either 10% or more customers in an
 operating district affected, or outage duration of more than 24 hours, but not both. These outages only narrowly missed exclusion
 from these computations as “major events” (see OAC 165:35-25-13), and negatively impacted estimates of system reliability.
 Examples of these occurrences include tornados, ice storms, and wide spread areas of high winds. The impact of these events is
 evident in Charts 1a and 2a.



                                               Chart 1a. All Electric Companies - Comparison of 2004
                                     3.50
                                                                and 2005 SAIFI Values
                                     3.00
  Average Interrup tion Frequ ency




                                     2.50



                                     2.00



                                     1.50



                                     1.00



                                     0.50



                                     0.00
                                            OG&E Total OK   PSO Total OK   NE Total OK   Verdigris Valley   Canadian Valley   Xcel   Empire District   Arkansas Valley

2004 SAIFI                                       1.10           0.87          0.12            2.99                            0.09        0.64              0.13
2005 SAIFI                                      1.39            1.46          0.13             2.18              1.92         0.09        2.47              0.27

                                                                                                      Company
                                                                         Chart 2. All Electric Companies -- 2005 SAIDI*
                                               400
Average Interruption Du ratio n (in minutes)




                                               350


                                               300


                                               250


                                               200


                                               150


                                               100


                                                50


                                                 0
                                                      OG&E      OG&E      OG&E     OG&E     OG&E     PSO Total    PSO        PSO                 NE Total                                 Verdigris   Canadian            Empire     Arkansas
                                                                                                                                     PSO Tulsa              NE Vinita NE Grove NE Pryor                          Xcel
                                                     Total OK    East     North    South    West       OK        Lawton   M cAlester               OK                                      Valley      Valley             District    Valley

                                      SAIDI          197.20     211.70   168.90    204.20   174.90     191.10    156.40    194.30     201.10     234.39      201.96   202.67    320.81     247.57      152.40    12.20    360.61      168.53
                                      OK Avg **       195.78    195.78    195.78   195.78   195.78    195.78     195.78     195.78    195.78      195.78     195.78    195.78   195.78     195.78      195.78    195.78   195.78      195.78

                                                                                                                          Company
                                                                                               ** Both the weighted and simple averages are approximately 195.
                                                         Chart 2a. All Electric Companies - Comparison of 2004
                                                450
                                                                          and 2005 SAIDI Values
  Average Interrup tion Duration (in minutes)




                                                400


                                                350


                                                300


                                                250


                                                200


                                                150


                                                100


                                                 50


                                                  0
                                                      OG&E Total OK   PSO Total OK   NE Total OK   Verdigris Valley   Canadian Valley   Xcel    Empire District   Arkansas Valley

2004 SAIDI                                               123.20          167.70        213.61          405.73             115.80        7.59         43.51            156.18
2005 SAIDI                                               197.20          191.10        234.39          247.57             152.40        12.20       360.61            168.53

                                                                                                                Company
                                                                                                                   .
The five Year History of both SAIFI and SAIDI data, provided by OG&E and PSO, is
displayed in Charts 3 and 4. The Oklahoma Average was calculated as a simple
average using information provided by the reporting companies.




                                                        Chart 3. Five Year History -- SAIFI
                                               1.75
             Average Interruption F requency




                                                1.5

                                               1.25

                                                  1

                                               0.75

                                                0.5

                                               0.25

                                                  0
                                                      2001      2002       2003       2004    2005

                                               PSO    1.38      1.19       1.08       1.29    1.46
                                               OG&E   1.18      1.13       1.26       1.09    1.39




                                                        Chart 4. Five Year History -- SAIDI
                                                200
      Average Interruption Du ration




                                                150
               (in minu tes)




                                                100


                                                50


                                                 0
                                                      2001      2002       2003        2004   2005

                                               PSO    136        132        121        168    191
                                               OG&E   136        151        139        126    197
Commission Rules Summary

                        OAC 165:35-25-14. Reliability program
Each utility shall design and maintain a program to limit the frequency and duration of
electric service interruptions. The program should include inspection, maintenance,
repair and replacement standards that ensure service restoration as well as preventive and
emergency maintenance; and should give special emphasis to the improvement of the
worst performing circuits in each region. The program should include at a minimum:
    (1) The age, distribution and location of equipment on each circuit.
    (2) The number, density and location of customers on each circuit.
    (3) The location and density of trees on the system.
    (4) An annual vegetation management plan
    (5) The impacts on distribution system reliability of animals, wind, storms, ice and
        auto accidents.

                      OAC 165:35-25-20. Annual reliability report
Each utility shall submit an annual reliability report to the Commission by March 1st of
each year, beginning March 1, 2005. The Commission may request additional data,
however, the report shall include the following:
(1) A description of all vegetation management performed by the utility for the previous
    calendar year and the vegetation management it plans to perform for the current year.
    (2) SAIDI and SAIFI (and to the maximum extent practicable, MAIFI) values
        computed for the entire service territory and displayed in tabular form.
    (3) SAIDI and SAIFI (and to the maximum extent practicable, MAIFI) values
        computed for each of the utility’s regions and displayed in tabular form.
    (4) A detailed report for each major event that is not included in the calculation of the
        reliability indices. The major event report shall include the interruption cause or
        causes, date, regional location, percentages of customers without service in that
        region as a result of the event, the time or time frame in which service was lost to
        10% or more of that region, the time the last customer’s service was restored in
        that region, and any other details that the utility or the Commission believes will
        further justify the exclusion of the event from the calculations.
    (5) A description of the program the utility has in place for analyzing and improving
        worst performing circuits and a summary of the results of the program for the
        reporting year.
    (6) A description and map identifying the utility’s service regions or operations
        divisions, documentation and illustration of any changes in region boundaries as
        defined by the utility, and justification for such changes.
   (7) For each utility with less than 100,000 customers, the utility must show the data
       used to calculate as well as the calculation of the rural adjusted minimum
       performance level.

Definitions

Definitions are given here to aid the user in understanding the factors that affect index
calculation. Many of these definitions were taken directly from IEEE Std 100-1996. If
there is a conflict between the definitions in this guide and IEEE Std 100-1996, the
definitions in this guide take precedence. Others are given because they have a new
interpretation within this guide or have not been defined before.

Distribution system: That portion of an electric system that delivers electric energy
from transformation points on the transmission system to the customer. Note: The
distribution system is generally considered to be anything from the distribution substation
fence to the customer meter. Often the initial over current protection and voltage
regulator are within the substation fence.

Duration interruption: The period (measured in seconds, or minutes, or hours, or days)
from the initiation of an interruption to a customer or other facility until service has been
restored to that customer or facility. An interruption may require step-restoration tracking
to provide reliable index calculation. It may be desirable to record the duration of each
interruption.

Major event: A catastrophic event that exceeds design limits of the electric power
system and that is characterized by the following (as defined by the utility):
    a) Extensive damage to the electric power system:
    b) More than a specified percentage of customers simultaneously out of service;
    c) Service restoration times longer than specified.
Some examples are extreme weather, such as a one in five year event, or earthquakes.

				
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