Customer Oriented Reliability

Traditional Reliability Indexes Measure System Averages

CAIDI Measures Duration

SAIFI Measures Outage Frequency

SAIDI Measures Accumulated Time Off

MAIFI Measures Momentary Interruptions

M L G W’s 2003 Reliability Performance

SAIFI 1.41 events

CAIDI 169 minutes

SAIDI 238 minutes

Customer Average Interruption Duration Index

0.9

1

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

5 YEAR WEIGHTED MOVING AVERAGES IN REDThrough First Quarter 2003

SYSTEM AVERAGE INTERRUPTION FREQUENCY

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

5 YEAR MOVING AVERAGES (WEIGHTED)

CUSTOMERS

EXPERIENCING

MULTIPLE

INTERRUPTIONS

0.00

20.00

40.00

60.00

80.00

100.00

%

of

C

U

S

T

O

M

E

R

S

1+ 2+ 3+ 4+ 5+ 6+N u m b e r of I n t e r r u p t i o n s

344,529

242,138

153,480

85,674

46,039

25,111

C. E. M. I. 2002

What Reliability Do Customers Demand ??

“Your most unhappy customers are your greatest source of learning.”

-Bill Gates

Analyzed Three Years of Customer Reliability Complaints

• Over 600 Complaints about Outage Frequency

• Over 250 Complaints about

Outage Duration

0

20

40

60

80

100

120# O

F C

OM

PL

AIN

TS

PE

R 1

0,0

00 C

US

TO

ME

RS

Customer Complaint CatalystsOutage Duration

Less than4 hours

4 to 6hours

6 to 10hours

Over 10hours

0

5

10

15

20

25

30

35

40# o

f C

om

pla

ints

per

10,0

00 C

usto

mers

1 Month6 Months Interruptions During 12 Months

222 33

3

4+

6+

4+

4

5

Customer Complaint CatalystsOutage Frequency

Customer Oriented Reliability

Prevent Customers from Experiencing Over 3 Interruptions Per Year

Prevent Outage Events Over 10 Hours in Duration

Strategic

Targeting of

Assets for

Reliability

Reliability Strategies

• Effective line clearance (Hybrid 3-4-5 Cycle)

• Reduction in recurring events

• Strategically address root causes

• Target long-duration outages

Tree Trimming

• Analyzed cycle and emergency trimming

• Hybrid 3-4-5 Plan

Unfused Taps

• Isolate Interruptions to Small Numbers of Customers on Laterals by Installing Line Fuses

Retrofitting Underground Cable

• Continue aggressive cable replacement for PE cable

• Replace PILC get-away cable that has reached end-of-life

Reclosers & Sectionalizers

35 new reclosers

• Reduce number of customers interrupted

• Save wear and tear on station breaker

• Protect cable getaway• Speeds troubleshooting

Under grounding circuits

Reduce exposure to trees, vehicles, & lightning by under grounding high-risk segments of circuits.

Reliability Goals YTD February, 2004

Customers with more than 3 outages: 69

Customers with 10+ hours outages: 22