Hardening the Entergy System

Prepared by: Marika Ball-Damberg

Olivia Hayes Fatimata Dia

Edwin Unzalu

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TABLE OF CONTENTS EXECUTIVE SUMMARY 3 INTRODUCTION 3 I. AN EFFICIENT ENTERGY SYSTEM 3 II. HOW TO MEASURE HARDENING AND RESILIENCY 3-4 III.COSTS 4-5 IV. SIMILAR STATES TO LOUISIANA 6-10 3.1 Mississippi 6 3.1.1 Mississippi’s PSC 3.1.2 2006 Hurricane Katrina Electric Utility Customer Relief and Electric Utility System Restoration Act 3.1.3 Storm Investigations 3.1.4 Results of Mississippi’s Legislation 3.2 Florida 6-8 3.2.1 Storm Hardening Rules 3.2.2 Cost Recovery for Storm Hardening 3.2.3 Securitization of Storm Costs 3.2.4 Storm Reserve Accounting 3.2.5 Infrastructure Hardening & Storm Resiliency Measures 3.2.6 Results of Florida Legislation 3.3 New Jersey 9-10 3.3.1 Storm Investigations 3.3.2 Vegetation Management 3.3.3 Undergrounding 3.3.4 Reliability Regulations 3.3.5 Infrastructure hardening & storm resiliency measures 3.3.6 Results of New Jersey legislation V. POLICY OPTIONS AND RECOMMENDATIONS FOR LOUISIANA 10-15 4.1 Vegetation Management 4.2 Wind/Flood protection 4.3 Modernization 4.4 General Readiness VI. LOGIC MODELS FOR RECOMMENDATIONS 16-19 VII. LOGIC MODELS FOR LOUISIANA AND FLORIDA 20 VIII. APPENDIX A 21-

25 VII. REFERENCES 26-27

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EXECUTIVE SUMMARY

Entergy Corporation provides electricity to approximately 2.7 million customers, and has seven locations in Louisiana, Arkansas, Mississippi, and Texas. After Hurricane Rita and Katrina, the Entergy system in Louisiana was responsible for 670,000 power outages in the Louisiana and Mississippi area. Problem: The Entergy system needs be hardened and become more resilient when a large-scale storm strikes. The US Department of Energy defines hardening as physically changing the infrastructure to make it less susceptible to damage from extreme wind, flooding, or flying debris. Resiliency is defined as the ability of an energy facility to recover quickly from damage to any of its components or to any of the external systems on which it depends. After comparing Louisiana to other states, we recommend that the Entergy Corporation implement undergrounding, vegetation management, increased modernization, and general readiness. INTRODUCTION After the hurricane season of 2005, it became clear that Entergy’s system to deal with a large-scale storm was inefficient. The US Geological Survey reported that the Entergy system could have started its transmission system back up by September 9. However, on September 9 Entergy still had 500 transformers and 50 substations under water. In addition, there was no apparent damage done to Entergy’s nuclear power plant and it still did not reopen until September 30. Entergy needs to be able to recover from a storm in less than a month, and analysis of different states indicates how this quicker process can be accomplished. If these measures are taken, Entergy will recover quicker, be less harmful to the environment, and have far fewer customers without power or utilities. I. AN EFFICIENT ENTERGY SYSTEM

A multifaceted approach is needed to make the Entergy system more efficient, thereby making it a hardened and more resilient system. There are four general ways in which to harden and make Entergy more resilient: implement vegetation management, wind and flood protection, modernization, and general readiness. II. HOW TO MEASURE RESILIENCY AND HARDENING: Resiliency and hardening can be measured in two ways: statistics and customer feedback. After implementing a new resiliency system, the first time to measure resiliency is a year. After a year, utility poles’ percentage increase in stability will be used to measure how resilient they became. In addition, all new infrastructure and undergrounding will also be measured according to the percentage increase they experienced in effectiveness, and how much costs went down due to new techniques. Then, customers will complete a survey including satisfaction with power companies and amount of power outages during the year and length of the outages. These two

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strategies will be combined to measure how far the amount of resiliency and hardening the system has come after a year. Entergy should set an exact landmark for what percentage of utility poles standing means they were successful. They should do the same for infrastructure and undergrounding. There should be an exact percentage of customers overall satisfaction that means success to Entergy as well. For example, Entergy could say that once 70% of utility poles last through strong storms and 80% of customers report they are satisfied, they have been successful in that year. Below is a chart of the standard procedure energy companies follow after a storm hits their area and customers lose power and utilities, and it shows how all parts of system restoration will take place and how it will affect the customer. The graph and multiple others used in this report come from Quanta Technology, a “expertise-based, independent consulting company providing business and technical expertise to the energy and utility industries.”

Source: Quanta Technology III. COSTS When Entergy evaluates the cost effectiveness of different hardening strategies, they typically look at an extended period of time and how much money they will spend initially, and how much they would save by a certain year. Below are three graphs estimating the costs for a new

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substation, four different kinds of utility poles, and total utilities cost for undergrounding.

All cost tables courtesy of Quanta Technology After evaluating some of the costs that can be involved in implementing new systems, it is important to see if and how other places have done this and if it was successful. We will look at what Mississippi, Florida, and New Jersey have done to improve their hardening and resiliency measures.

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IV. WHAT OTHER STATES HAVE DONE 3.1 Mississippi 3.1.1 Mississippi’s PSC The state of Mississippi has what is called a Public Service Commission. The Public Service Commission’s job is to regulate all of the power and utility companies within Mississippi and make sure they are reliable, consistent, and customers are pleased. In 2006, the Mississippi PSC issued financing orders that permitted Mississippi Power and Entergy Mississippi to issue securitized storm bonds to recover the costs of Hurricane Katrina that were not reimbursed through community grants or other payments. Securitized bonds are companies selling their money making assets to investors, essentially financing your assets. 3.1.2 2006 Hurricane Katrina Electric Utility Customer Relief and Electric Utility System Restoration Act The 2006 act was passed by the state legislature, and allowed the State Bond Commission to issue bonds to finance recovery costs. The bond debt service is repaid by a system of restoration surcharge on customers’ bills, and is reset to companies annually to recover 110% of annual debt service. 3.1.3 Storm investigations After approving the selling of bonds, the Mississippi PSC determined certain actions the state should take to prevent storm damage in the future. Jurisdictional Mississippi companies were ordered to harden their locations to withstand hurricane winds 10 miles inland from potential flooding. Mississippi Power was also authorized to use the proceeds from its bond sale to build a new storm operations center that was further from shore. This way, the center had less chance of getting damaged as quickly when storms began to affect the state. 3.1.4 Results of Mississippi legislation After the Hurricane Katrina Electric Utility Customer Relief and Electric Utility System Restoration Act was put in place, electric utility customers were given relief from traditional methods of recovering system restoration costs. Normally, customers were forced to pay large sums of money to get their power and utilities back, and now that responsibility is in the hands of the state. The 2006 act has held up so far, and is still in place. After the 2008 hurricane season, the state proved that the new system was working better because there were less damaged poles, transformers, and transmission lines. The number of power outages also went down. 3.2 Florida 3.2.1 Storm Hardening Rules Florida has utilized a multi faceted approach to storm hardening that includes the development of new rules and regulations of vegetation management and other hardening activities, the development of overhead and underground construction standards, requirements for the filing of utility plans, and required investments by utilities with cost recovery pre-determined. The Public Service Commission of Florida wants people to file tariffs that reduce the costs of undergrounding to the customers. Florida has also initiated research programs at Florida

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universities to research new methods that would reduce storm damage costs and assess the costs and benefits of different measures. Below is a chart of case studies conducted in Florida where overhead circuits were moved underground.

Source: Quanta Technology 3.2.2 Cost Recovery for Storm Hardening In 2006, the Florida PSC approved new hardening plan. Progress Energy Florida then requested that they be allowed to approve storm-hardening costs through their storm reserve account. Their request was denied by the Florida PSC. The PSC established a uniform procedure when investor-owned electric utilities should calculate the amounts due as contributions in-aid-of construction from customers who wanted new or upgraded facilities. 3.2.3. Securitization of Storm Costs After the damage from Hurricanes Charley, Frances, and Jeanne in 2004, a statute was enacted in 2005 giving Florida utilities the ability to recover storm costs by selling securitized bonds. The utilities suffered additional damage from Hurricanes Dennis, Katrina, Rita, and Wilma in 2005, and were therefore approved issuance of huge sums of money in storm-recovery bonds. For example, Florida Power and Light was approved $708 million in storm-recovery bonds. 3.2.4 Storm Reserve Accounting In 2007, the PSC allowed utilities to establish storm reserve accounts to capitalize the costs of storm recovery to those accounts. Utilities could petition the commission for the recovery of balance in a reserve account plus another amount to replenish the storm reserve. 3.2.5 Infrastructure Hardening & Storm Resiliency Measures After May 2007, utilities companies are now required to file detailed storm reports after every storm. The reports include detailed standards, policies, practices, and procedures they used to enhance reliability of overhead and underground electrical T&D facilities while abiding by state provisions. It also requires utility companies to explain a systematic approach the utility will follow to enhance reliability and reduce the restoration costs and power outage times from extreme storms. They were also expected to include pole attachment standards that were in place at the time of the storm. Florida also called for a three-year vegetation management cycle for distribution circuits, post-storm data collection and forensic analysis, increased utility coordination with local governments, and a natural disaster preparedness and recovery program. The following chart shows the amount of money Florida power and utility companies spent on new projects such as undergrounding assessments and wind monitoring projects for the years 2006-2008. 2007 clearly has the largest amount of money spent by far, and this is due to the storm-hardening plan that was put into place at the end of 2006 by the Florida PSC.

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3.2.6 Results of Florida Legislation The Edison Electric Institute calls Florida unique because of Florida’s comprehensive program for hardening infrastructure to reduce damage from future storms. The plan went into place in 2007 and is still in place today, with a few amends having been made. Progress Energy Florida instituted an automated 24 hour outage line that is capable of handling 125,000 calls per our. This is a much more productive way for the power companies to figure out where to send power trucks. In addition, they have a customer service center open 24 hours a day that direct crews to the most affected areas quickly. The following chart shows all of the areas Florida has improved on, and the fact that all of these hardening programs were implemented before other states’ policies.

Table courtesy of Quanta Technology 3.3 New Jersey

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3.3.1 Storm investigations The New Jersey Board of Public Utilities (BPU) investigated restoration efforts by the state’s electric distribution companies prior, during, and after Hurricane Irene. The BPU recommended developing a vegetation management program, an Incident Command System, use of company websites to provide estimated time of restoration, conducting storm training, and external analysis of each company’s restoration experiences. The BPU also announced the beginning of an investigation into the state of preparedness and responsiveness of the electric distribution companies prior to, during, and after Hurricane Sandy. 3.3.2. Vegetation management The state of New Jersey has in place comprehensive vegetation management regulations for the EDCs. Each time there is a violation of these regulations; there can be penalties up to $100 a day. 3.3.3 Undergrounding Undergrounding of distribution lines is governed in section 14:3 of the New Jersey Administrative code. Distribution lines are required to be constructed underground for new residential developments constructed after August 2005. 3.3.4 Reliability Regulations Currently, the New Jersey General Assembly is considering Assembly Bill 2760, which says that the BPU would be required to establish uniform reliability and restoration standard for investor-owned electric and gas utilities. This would mean that utilities would need a service reliability plan and an emergency communications strategic plan approved by the BPU. They would also need to review strategies to get rid of potential flooding of substations constructed within flood hazard areas defined by the Department of Environmental Protection. The bill would also include civil penalties to be paid for by electric utilities for problems in service delivery, preparedness, communications, and responsiveness in emergencies. These funds would be used to increase the public utilities’ service reliability. 3.3.5 Infrastructure hardening & storm resiliency measures After Superstorm Sandy hit New Jersey in October 2012, the state implemented new hardening and resiliency measures. These measures consisted of reevaluating the provision of restoration information to specific customer classes that include special needs customers and well-water dependent customers. Also, coordinating more closely with state and local crews working to clear the roads and remove storm debris. EDCs should direct full implementation of its Preliminary Communications Plan for any severe weather events. 3.3.6 Results of New Jersey legislation Since Superstorm Sandy in October 2012, New Jersey has not experienced any major storms. Most of their hardening and resiliency standards were implemented after the effects of Sandy were felt. Therefore, the state cannot be fully sure of how effective these new strategies are until they experience a storm of the same or greater magnitude. Below, we have created a comprehensive table for Mississippi, Florida, and New Jersey and what they have implemented.

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State Active PSC

Securitized bonds

Vegetation management

Undergrounding Hardening and resiliency measures

FL X X X X X

LA X X

MI X X X X

NJ X X X V. POLICY OPTIONS AND RECOMMENDATIONS FOR LOUISIANA 4.1 Vegetation Management Vegetation management is defined as the use of mechanical, chemical (herbicide) and other techniques to ensure the safe and reliable operation of transmission lines. In states such as Pennsylvania, New Jersey, and Mississippi, state Public Service Commissions have implemented different forms of vegetation management. We recommend that Louisiana implement a vegetation management cycle similar to the one implemented in Florida that runs on a six-year cycle. Vegetation Management consists of keeping trees away from power lines and investing in safe, reliable operations of the electric delivery system. Entergy Corporation has shown interest in utilizing vegetation management as a solution to their problem of destroying wetlands. Entergy should create utility poles made of only steel, not wood, and place them in areas where there is not a huge amount of tree cover. If there is tree cover, the trees need to be trimmed around power lines in order to ensure the preventing of mass power outages due to downed trees. Entergy should utilize herbicides as well to treat pesky plants growing from the ground. Herbicides are safe to use as long as they are not used within 35 feet of water or wetlands. The overall goal of Entergy when utilizing vegetation management should be to reduce the amount of power outages and reduce the amount of damage to the local environment. Vegetation management has worked efficiently for states such as New Jersey and Florida where they used the tree trimming and herbicide techniques. Below is an example of vegetation management in place in New Jersey. Following the picture is a diagram of the exact measurements of power lines and trees in order to abide by vegetation management standards. As you can see, the power lines are not touching any trees, and therefore the likelihood of a power outage due to trees falling on the power lines is much lower.

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Picture and diagram courtesy of New Jersey Board of Public Utilities

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Pros of vegetation management Cons of vegetation management

-Fewer outages -Shorter outages -Fewer momentary interruptions -Improved power quality -Tear-downs of energized lines and equipment are reduced -Burn down of conductors is reduced -Trimmed feeders reduce the time and cost of storm restoration -Trimming trees makes the distribution system safer -Trimming trees makes electricity delivery more reliable

-Vegetation management is very expensive -Often cited as the highest recurring maintenance expense -It is difficult to evaluate the effectiveness of vegetation management programs on a short time scale

Overall, the pros of vegetation management outweigh the cons. Therefore, we recommend vegetation management as an effective strategy to reduce the number and cost of power outages. 4.2 Wind and Flood protection (undergrounding) In order to implement flood and wind protection for an area, there are certain steps Entergy can take. Firstly, Entergy should focus on building and strengthening levees and floodwalls. In the aftermath of Katrina and Rita, one of the biggest contributors to the massive flooding in New Orleans was the failure of the levees. After the 2005 hurricane season, New Orleans rebuilt their levee system to make it stronger in preparation for future storms. Poles on the levees reaching multiple feet underground were all changed to steel in order to be a more stable protection for the city. Since the new levees are many feet underground and have not yet failed, it would be possible to move power lines underground as well. It would be the job of the Louisiana PSC to make sure lines built underground did not harm any of the outside environments. Electrical engineer Charlie Brown says it “is easier to start and restore an underground system.” Another action to create wind and flood protection is elevating substations and pumping stations. After Katrina, the majorities of Entergy’s substations were left underwater, and were therefore no use to the company. Elevating substations and brining them farther inland allows them to have a higher chance to withstand a strong storm, and high winds and rainfall. One aspect that would completely change the Entergy system would be to bury power lines underground. In Florida, the Public Service Commission ordered power lines to be built underground. Burying power lines underground, also called undergrounding, severely reduces the amount of vulnerability Entergy has when strong winds and rainfall come with a storm. If power lines are located underground, they cannot be blown down, and therefore no power outages would result. This would be one of the most effective ways for Entergy to recover at a faster rate from future storms. Below is a chart illustrating the underground equipment failure rates based on storm surge zone and hurricane category. The graph shows that underground equipment failure is overall much lower than power lines above ground.

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Source: Quanta Technology Entergy should upgrade damaged poles and structures. While this step is fairly simple, it is crucial to the success of the entire operation. Prior to Katrina, some utility poles in New Orleans were made of wood, some of metal. Therefore, some poles immediately came down, some lasted a bit longer, but most ended up destroyed. All utility poles need to be constructed in a unified way to be effective. All of the poles should be rebuilt as completely steel structures. Steel has a far higher chance of withstanding hurricane force winds and rain.

Pros of undergrounding Cons of undergrounding

-Improved aesthetics -Lower tree trimming cost -Lower storm damage and restoration cost -Fewer motor vehicle accidents -Reduced live-wire contact -Fewer outages during normal weather -Fewer structures impacting sidewalks

-Possible environmental damage such as soil erosion -Reduced life expectancy -Higher maintenance and operating costs -Higher cost for new data bandwidth

After evaluating the pros and cons of undergrounding and wind/flood protection, we once again think the pros outweigh the cons and believe Entergy should implement undergrounding to prevent massive outages during and after storms. 4.3 Modernization The biggest problem the Entergy Corporation experienced immediately after Hurricane Katrina was a lack of effective telecommunications. Staff could not get in touch with one another, and the Entergy Headquarters in downtown New Orleans was underwater and unusable. After Katrina, nearly 1,800 Entergy staff were immediately relocated and another 1,000 members of the workforce were in some way affected by the storm. Entergy experienced a delay in getting emergency contact information to its employees.

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Entergy was not prepared for how large scale Katrina would be, and therefore had not set up any other locations to handle operations once their headquarters was not usable. All of the electrical systems in Entergy need to be upgraded in order for the company to be able to communicate to staff and customers immediately after loss of electricity and utilities. Entergy should install asset databases and tools in order to keep up with fast paced storms. Weather data and detection devices technology is advancing at rapid speed, and Entergy needs to advance at the same rate. Having outdated technology when in the face of a storm is unacceptable. Entergy is responsible to 670,000 customers in the Louisiana area, and must provide them with the best service possible. The only way to achieve the best service is to have the most up to date technology. That way, Entergy can warn customers before storms, keep them updated during, and communicate with them after. 4.4 General readiness After Katrina, hundreds of thousands of customers were left without power and utilities, and had no way of knowing when they would get them back. Entergy has 3 companies within the Louisiana area: Entergy New Orleans, Entergy Louisiana, and Entergy Gulf States. The figure below shows all of the prominent power and utility companies on the Gulf Coast.

Source: US Department of Energy Each Entergy companies need to conduct hurricane preparedness planning and training. This consists of educating customers and citizens of the city on how to prepare for storms and, more importantly, what to do once a storm hits. This way, Entergy will not be as flooded with complaints directly after a large outage, and people will be more knowledgeable on how to deal with not having power and utilities. Customers can also better prepare for possible outages beforehand, and secure their homes. Knowledge of what is coming is crucial for the customers

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and staff of Entergy alike. In a survey conducted by Quanta Technology on areas of improvement, “better education of customers and public” was ranked first. Aside from problems directly related to the Entergy system itself, there are outside factors the company cannot control. Climate change is very present in the world, and is especially seen in the Gulf Coast area. New Orleans is specifically vulnerable to sea level rise. Entergy needs to educate their customers on climate change, and increase awareness. Storm surges associated with storms are expected to rise, and higher waters will overcome slowly more lands. Entergy needs to do its part in two ways. Firstly, move all of their operations and equipment further inland to avoid water damage. Secondly, advising customers of sea level increase and the increasing vulnerability of New Orleans to these rising sea levels. Therefore, people who live closer to the water will know what extra preparations they need to take to prepare for the storm, and possibly take action to move closer inland. Providing knowledge to your customers is a smart way for a company to have a solid relationship with customers. Entergy has many aspects in which they need to improve, but the people have a duty too. Customers need to cooperate with Entergy to ensure that they are as prepared as they can be for incoming storms. A knowledgeable Entergy Corporation and knowledgeable customer base would result in New Orleans and the Louisiana area being more prepared than they were after the 2005 hurricane season. Utilizing vegetation management, wind and flood protection, increased modernization, and general readiness will best harden and increase the resilience of the Entergy System. Each one of our recommendations comes directly from the success of these programs in other states. Vegetation management was implemented in Florida, New Jersey, and Mississippi. The outcomes of vegetation management were positive in all three states. Undergrounding was implemented in Florida, and has been extremely cost beneficial to the state ever since. Modernization was implemented in Florida in the 2007 Public Service Commission report to the state, and case studies have shown that these methods reduce costs and damage to the environment. General readiness is a recommendation that comes from all three states, but is also specific to what Entergy Louisiana must act on in order to see a hardened and more resilient system.

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VI. LOGIC MODELS FOR RECOMMENDATIONS 1. Vegetation Management

Inputs Outputs Outcomes

What Louisiana puts in: - Money: $65,000,000

(amount based on 6 year cycle that trims about 2,500 miles of trees, based on Florida’s vegetation management program of 2007. Chart located below)

- Time: 6 years (standard amount of time to complete full vegetation cycle)

- Leaders: Entergy board of directors (heads of Entergy Louisiana, Entergy Gulf States, and Entergy New Orleans are in charge of implementing the system. Some of these leaders are Rod West, Maureen Bateman, Leo Denault, and Alexis Herman.)

What Louisiana does: - Trim all trees near power

lines - Use herbicide to prevent

plants from growing on utility poles. However, herbicide use will stop within 35 feet of water

- Replace all utility poles with steel

- Communicate with property owners to remove downed vegetation that could be affecting power lines

- Label trees that are above undergrounding systems

- Trim feeders to reduce the time of storm restoration

-Short term: -Visible power lines that are no longer susceptible to damage from surrounding trees -Medium term: -No downed power lines and fewer momentary power outages -No burning down of conductors -Long term: -Far fewer power outages due to vegetation touching power lines -Shorter power outages -Overall improved power quality

Table Courtesy of Florida PSC

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2. Undergrounding

Inputs Outputs Outcomes

What Louisiana puts in: -Money: $120,000,000 (amount based on chart on page 9 estimating total cost of all undergrounding, published by Quanta Technology.) -Time: 2 years (based on how long it took Florida to implement undergrounding) -Leaders: Since the project requires closing off streets for periods of time, the Entergy board of directors needs to get in contact and work with New Orleans city council. Working with local government officials is crucial so that residents are aware of what is happening.)

What Louisiana does: - Elevates substations, creates

new substations further inland

- Move all power lines underground

- Upgrade any damaged poles or structures

-Short term: Fewer motor vehicle crashes and improved aesthetics -Medium term: -Fewer outages during storms -Less damage to environment due to no electric poles above ground -Long term: -Quicker recovery time after large scale storms -Lower recovery costs due to significantly lower power and utility outages

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3. Modernization

Inputs Outputs Outcomes

-What Louisiana puts in: -Money: -No exact measurement, estimate for an entirely new electrical system & database is $5,000,000. -People: -Allocate 500 Entergy employees to reach out to all customers & inform them on the new technology. -Electricians hired to consult on the most effective new way of implementing telecommunications. -Workers hired to set up new databases in all Entergy offices. -Time: -1 year. Consulting on new telecommunications strategies should take no longer than 6 months. During those 6 months, Employees will reach out to customers and inform them of what is going on. -After the 6 months, another 6 months is allocated to restructuring the telecommunications system in all Entergy offices.

- What Louisiana does: - Consults with electricians to

find best new telecommunications strategies

- Inform customers of new communications standards

- Make sure all Entergy employees have ways of contacting one another if and when a large-scale storm hits.

-Short term: -More educated customers who are aware of what emergency communications they have available to them -Medium term: -New database for Entergy & new telecommunications strategies -Long term: -Effective emergency response and communication between Entergy officials and customers in the face of a large-scale storm.

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4. General readiness

Inputs Outputs Outcomes

-What Louisiana puts in: -Time: 1 year -Trainers: Entergy Board of Directors, Entergy Louisiana, New Orleans, and Gulf States staff members.

- What Louisiana does: - Entergy Board of Directors

teaches their individual staff members hurricane preparedness tips and what to do when a storm comes. These staff members are each assigned an area of their customer base, and they send out newsletters to each customer containing information on preparedness strategies, climate change awareness, and what to do when a storm does come.

-Short term: -Climate change brought to the attention of customers -Medium term: -Customers and staff members are knowledgeable about how to deal with large-scale storms in the event of one. -Long term: -Quicker recovery time due to more efficient communications between customers and staff after a large-scale storm because of their training on how to deal with storms.

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VII. LOGIC MODELS FOR LOUISIANA AND FLORIDA Florida

Inputs Outputs Outcomes

-What Florida puts in: -Money: -$708 billion given to Florida Power and Light to go into storm-recovery bonds -People: -Florida PSC employees organizing standards for Florida power and utility companies to abide by -Time: -Requirements instated in 2007, yearly inspections followed. Program still in place, exact amount of time not yet determined.

- What Florida does: -Studies on hurricanes initiated in 2004-2005 -Implemented storm hardening plan in 2006 to establish storm reserve accounts. -Funded university research on extreme wind damage -Published vegetation management best practices among storm hardening initiatives

-Short term: -Electric utility poles that meet state inspections made completely of steel. -Medium term: -Storm hardening plan increases utility poles ability to resist wind damage -Long term: -Knowledge on how to deal with future storms -Surplus money due to undergrounding

Louisiana

Inputs Outputs Outcomes

-What Louisiana has put in: -Time: -Entergy Corporation has been working on a new transmission and distribution-hardening plan since 2007. Plan is still in place, not finished yet. -Money: -Spent $119 million on a pilot strategy in Port Fourchon to implement things such as vegetation management system, T&D infrastructure -People: -Entergy Corporation employees and PSC members

- What Louisiana is doing: -Currently forming a proposal for the Louisiana PSC in hopes of acquiring money in investments to start implementing undergrounding and vegetation management. -Entergy not being proactive enough, proposal at a stand still. Entergy needs to keep this proposal as a first priority in order to begin the hardening process.

-Short term: -Proposal given to PSC to get money for investments. -Medium term: -Money is given by Louisiana PSC, and hardening plan is laid out, Entergy begins the process of upgrading databases and telecommunications -Long term: -Louisiana has working Transmission and Distribution plan, is able to recover from large-scale storms faster.

VIII. APPENDIX A

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Below is a comprehensive table of all measures different power and utility companies in the states discussed have taken. (Table information courtesy of Edison Electric Institute)

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23

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These companies can be compared to the companies in Louisiana and what they have done:

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Tables courtesy of Edison Electric Institute

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<http://www.floridapsc.com/utilities/electricgas/EIProject/docs/VegetationManagementWorkshopReport.pdf>. 17. "Safety." PPl Electric Utilities Corporation, n.d. Web. 2 Nov. 2013. <https://www.pplelectric.com/about-us/ppl-and-the-environment/vegetation-management/safety.aspx>. 18. "Vegetation Management." Mecklenburg Electric Cooperative, 2013. Web. 7 Nov. 2013. <http://meckelec.org/vegetation.html>. 19. "Weathering The Storm." Greater Baton Rouge Business Report, 2012. Web. 6 Nov. 2013. <http://www.businessreport.com/article/20120917/>. 20. Young, Tara. "Before and After the Storm." Edison Electric Institute, Jan. 2013. Web. 8 Nov. 2013. <http://www.eei.org/issuesandpolicy/electricreliability/mutualassistance/Documents/>.