The Joint Proposal adopted by the Public Service

Martin F. Heslin Assistant General Counsel Consolidated Edison Company of New York, Inc. 4 Irving Place, Room 1815-S, New York NY 10003 212-460-4705 Fax: 212-677-5850 Email: [email protected]

March 2, 2015 By Email for Electronic Filing Hon. Kathleen H. Burgess Secretary New York State Public Service Commission Three Empire State Plaza Albany, NY 12223

Re: Cases 13-E-0030, et al., Con Edison’s Electric, Gas, and Steam – Report on 2014 Capital Expenditures and 2015-2019 Electric Capital Forecast

Dear Secretary Burgess:

The Joint Proposal adopted by the Public Service Commission in its “Order Approving Electric, Gas and Steam Rate Plans in Accord with Joint Proposal,” issued February 21, 2014 in the referenced proceeding, provides for Con Edison to file for information purposes by February 28, 2015 (1) a report on its electric capital expenditures during the prior year and (2) a five year electric capital budget.

Submitted herewith for electronic filing is Con Edison’s Report on 2014 Capital Expenditures and 2015-2019 Electric Capital Forecast in compliance with the Commission’s order. Very truly yours,

Cc: Active Parties – Cases 13-E-0030, 13-G-0031, 13-S-0032

STATE OF NEW YORK PUBLIC SERVICE COMMISSION

-------------------------------------------------------------------------- Proceeding on Motion of the Commission : As to the Rates, Charges, Rules and Regulations of : Case 13-E-0030 Consolidated Edison Company of New York, Inc. : For Electric Service : --------------------------------------------------------------------------

CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.

REPORT ON 2014 CAPITAL EXPENDITURES AND 2015-2019 ELECTRIC CAPITAL FORECAST

The Joint Proposal adopted by the Public Service Commission in its “Order

Approving Electric, Gas and Steam Rate Plans in Accord with Joint Proposal,” issued

February 21, 2014 in this proceeding, provides for Con Edison to file for information

purposes by February 28, 2015 and 2016:

• a report on its expenditures for the following categories of capital expenditures

during the prior year:

o Electric Transmission, Substations, and Distribution Operations o Electric Production o Electric Storm Hardening o Municipal Infrastructure, and o Shared Services Allocable to Electric.

• A five year capital budget for:

o Electric Transmission, Substations, and Distribution Operations o Electric Production o Electric Storm Hardening o Municipal Infrastructure, and o Shared Services Allocable to Electric.

This Report on 2014 Capital Expenditures and 2015-2019 Electric Capital

Forecast consists of the following attached data sheets:

Report on 2014 Capital Expenditures

o Summary T&D Capital Plan, 2014 Capital Budget and Actual Spend o System & Transmission Operations – 2014 Capital Budget and Actual

Spend o Substation Operations – 2014 Capital Budget and Actual Spend o Electric Operations – 2014 Capital Budget and Actual Spend o Electric Production – 2014 Capital Budget and Actual Spend o Shared Services Capital Plan – 2014 Capital Budget and Actual Spend o Capital Budget vs. Actual Variation Explanations1 o Rate Plan vs. Capital Budget Explanations o Capital Unit and Unit Cost Data2

2015-2019 Electric Capital Forecast

o Summary T&D Capital Plan – 2015-2019 Capital Forecast o System and Transmission Operations – 2015-2019 Capital Forecast o Substation Operations – 2015-2019 Capital Forecast o Electric Operations – 2015-2019 Capital Forecast o Electric Production – 2015-2019 Capital Forecast o Shared Services Capital Plan – 2015-2019 Capital Forecast

Dated: March 2, 2015

1 Variance explanations are provided to the extent the amount spent on a project or program varies from the forecasted amount by more than fifteen (15) percent, for projects or programs with a forecasted cost greater than $5 million but less than $25 million, or by more than ten (10) percent for projects or programs with a forecasted cost of $25 million or more. Supporting explanations are provided for projects and/or programs that are reflected on the Electric Capital Project/Program List for 2014 and 2015 and were eliminated in the Company's 2014 annual capital budgets. Supporting explanations, in the form of appended white papers, are provided for projects and/or programs not reflected on the Electric Capital Project/Program List for 2014 and 2015 and were added in the Company's 2014 annual capital budgets. Con Edison filed the Electric Capital Project/Program List for 2014 and 2015 on January 15, 2014. 2 Addresses projects and programs for which the Company forecasts an aggregate dollar amount to complete a certain number of units, where the Company spent within ten (10) percent of the forecasted amount for projects or programs with a forecasted cost greater than $5 million but less than $25 million, or within fifteen (15) percent of the forecasted amount for projects or programs with a forecasted cost of $25 million or more, but completed more or less units than projected, resulting in the unit cost variance of greater than fifteen (15) percent. The actual number of units completed as compared to the forecasted level are also provided.

Respectfully submitted, CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.

By Martin F. Heslin Assistant General Counsel 4 Irving Place New York, NY 10003 (212) 460-4705 [email protected]

mailto:[email protected]


REPORT ON 2014 CAPITAL EXPENDITURES

Rate Plan Budget Actual

Variation

Between Budget

and Actual Variation %

Electric T&D

System and Transmission 34,850 34,850 34,265 (585) (2%)

Substations 210,628 210,628 232,294 21,666 10%

Distribution 798,260 794,300 806,109 11,809 1%

Sub-total Electric T&D 1,043,738 1,039,778 1,072,668 32,890 3%

Electric Interference 59,501 59,501 76,750 17,249 29%

Total Electric T&D 1,103,239 1,099,279 1,149,418 50,139 5%

Electric Production 32,743 32,736 24,165 (8,571) (26%)

Shared Services

Facilities 62,372 62,375 56,864 (5,511) (9%)

IT Initiatives 60,949 61,051 49,365 (11,686) (19%)

General Equipment 61,405 61,405 73,811 12,405 20%

Other 29,780 29,673 28,956 (717) (2%)

Total Shared Services* 214,507 214,504 208,996 (5,508) (3%)

Sub-total Capital 1,350,489 1,346,519 1,382,578 36,059 3%

Storm Hardening* 172,700 172,700 150,225 (22,476) (13%)

Total Capital Expenditures 1,523,189 1,519,220 1,532,803 13,584 1%

Note: *83% of Shared Services is allocated to Electric

**Storm Hardening details are included on the subsequent tabs for Electric T&D only

***Excludes Indian Point Contingency Projects

2014

Summary T&D Capital Plan

2014 Capital Budget and Actual Spend($'s thousands)

1

DESCRIPTION Rate Plan Budget Actual

Variation

Between

Budget and

Actual Variation %

DISTRIBUTION ORDERS ENHANCEMENTS 400 400 253 (147) (37%)

OUTAGE SCHEDULING SYSTEM - - 193 193 -

COMPLIANCE MANAGEMENT SYSTEM - - 80 80 -

TOTAL - WORK MGMT SYSTEMS 400 400 526 126 32%

EMS RELIABILITY AECC AND ECC 300 300 1,230 930 310%

OTHER - - 3 3 -

TOTAL - CONTINUANCE 300 300 1,233 933 311%

CYBER SECURITY 300 300 52 (248) (83%)

PLANT INFORMATION SYSTEM 200 200 - (200) (100%)

OPERATIONS NETWORK FOR EMS 250 250 156 (94) (38%)

TOTAL - OPERATIONS REQUIREMENTS 750 750 208 (542) (72%)

SYSTEM OPERATION ENHANCEMENTS 300 300 242 (58) (19%)

DISTRICT OPERATOR TASK MANAGING SYSTEM 300 300 105 (195) (65%)

OPERATION MANAGEMENT SYSTEM ENHANCEMENTS 400 400 233 (167) (42%)

TOTAL - DISTRICT OPERATIONS IMPROVEMENT 1,000 1,000 580 (420) (42%)

COMPUTER ROOM RENOVATION 1,000 1,000 - (1,000) (100%)

ECC/AECC FACILITY SECURITY ENHANCEMENTS 250 250 51 (199) (80%)

ECC UPS BATTERY REPLACEMENT - - 173 173 -

TOTAL - FACILITIES/UTILITIES IMPROVEMENT 1,250 1,250 224 (1,026) (82%)

TOTAL - SYSTEM OPERATIONS 3,700 3,700 2,771 (929) (25%)

TRANSMISSION FEEDER FAILURES 3,000 3,000 16,133 13,133 438%

TOTAL - FAILURES 3,000 3,000 16,133 13,133 438%

DYNAMIC FEEDER RATING PROGRAM 1,500 1,500 142 (1,358) (91%)

38M72 UPGRADE VERNON-WEST 49TH STREET - - 173 173 -

M29 - - 232 232 -

TOTAL - LOAD RELIEF 1,500 1,500 547 (953) (64%)

PIPE ENHANCEMENT PROGRAM 8,000 8,000 8,056 56 1%

ENVIRONMENTAL ENHANCEMENTS 1,650 1,650 595 (1,055) (64%)

System and Transmission Operations

2014 Capital Budget and Actual Spend($'s Thousands)

2014

2


Variation

Between

Budget and

Actual Variation %



2014

OTHER - - (10) (10) -

TOTAL - ENVIRONMENTAL 9,650 9,650 8,641 (1,009) (10%)

EMERGENT TRANSMISSION RELIABILITY 10,500 10,500 4,496 (6,004) (57%)

ASTORIA INTERCONNECT FOR FEEDER 34091 1,000 1,000 1,655 655 66%

TRANSMISSION FEEDER PIPE SUPPORT AT QUEENSBORO BRIDGE 5,500 5,500 - (5,500) (100%)

OTHER - - 22 22 -

TOTAL - RELIABILITY & FDR REPLACEMENT 17,000 17,000 6,173 (10,827) (64%)

TOTAL - TRANSMISSION OPERATIONS 31,150 31,150 31,494 344 1%

SUB-TOTAL - SYSTEM & TRANSMISSION OPERATIONS 34,850 34,850 34,265 (585) (2%)

UPGRADE OVERHEAD 345KV TRANSMISSION STRUCTURES -

FEEDER 75 L&M UPGRADE 2,200 2,200 470 (1,730) (79%)

L-LINE SPLICE AND DEAD END ASSEMBLY 1,500 1,500 1,118 (382) (25%)

FEEDER 99941 AND 99942 - E-LINE UPGRADE 1,200 1,200 581 (619) (52%)

LINDSEY TOWERS - - 1,367 1,367 -

TOTAL - STORM HARDENING 4,900 4,900 3,536 (1,364) (28%)

TOTAL - SYSTEM AND TRANSMISSION OPERATIONS 39,750 39,750 37,801 (1,949) (5%)

3


Variation

Between

Budget and

Actual Variation %

SMALL CAPITAL EQUIPMENT PROGRAM 2,780 2,780 3,132 352 13%

TOTAL - SMALL CAPITAL 2,780 2,780 3,132 352 13%

SECURITY ENHANCEMENTS 22,000 22,000 27,970 5,970 27%

CIP V5 REQUIRED SECURITY UPGRADES 927 927 1,706 779 84%

TOTAL - SECURITY 22,927 22,927 29,676 6,749 29%

AVENUE A: INSTALL WATER SPRAY ON TRANSFORMERS 750 750 - (750) (100%)

BROWNSVILLE: RELIEVE OVERLOADS 10,000 10,000 - (10,000) (100%)

EAST 179TH STREET: SWITCHGEAR & BUS REPLACEMENT 15,000 15,000 11,364 (3,636) (24%)

FOX HILLS: TRANSFORMER COOLING TR2 & TR3 1,500 1,500 1,400 (100) (7%)

GREENWOOD: REPLACE OVERDUTIED EQUIPMENT 2,706 2,706 2,619 (87) (3%)

GREENWOOD: REPLACE BREAKER 3N & SWITCH FEEDER CONNECTIONS 700 700 1 (699) (100%)

PARKCHESTER #1: (CO-OP CITY) INSTALL HIGH SPEED FANS FOR THE FOUR

138/27KV TRANSFOFMERS 1,500 1,500 1,333 (167) (11%)

PARKCHESTER #2: REPLACE LIMITING 13KV BUS SECTIONS 3,500 3,500 - (3,500) (100%)

JAMAICA - INSTALL COOLING ON TR3 - - 705 705 -

QUEENSBRIDGE: REPLACE OVERDUTIED DISCONNECT SWITCHES 3,000 3,000 - (3,000) (100%)

LOAD RELIEF - 0THER - - 75 75 -

TOTAL - LOAD RELIEF 38,656 38,656 17,497 (21,159) (55%)

AREA SUBSTATION RELIABILITY AND AUTO GROUND CIRCUIT SWITCHERS 10,131 10,131 12,241 2,110 21%

BREAKER CAPITAL UPGRADE PROGRAM 6,806 6,806 11,031 4,225 62%

CATEGORY ALARMS PROGRAM 1,391 1,391 1,634 243 17%

CONDITION BASED MONITORING EQUIPMENT 232 232 (38) (270) (116%)

CORONA: STABILIZATION OF POTHEAD STAND SUPPORTS 926 926 480 (446) (48%)

DC SYSTEM UPGRADE PROGRAM 3,514 3,514 2,771 (743) (21%)

DISCONNECT SWITCH CAPITAL UPGRADE PROGRAM 2,783 2,783 2,853 71 3%

DISTURBANCE MONITORING EQUIPMENT PROGRAM (345KV) 7,166 7,166 8,331 1,165 (100%)

DISTURBANCE MONITORING EQUIPMENT PROGRAM (138KV) 2,000 2,000 - (2,000) (32%)

EAST RIVER UPGRADE 4,138 4,138 2,819 (1,319) (32%)

ELMSFORD: UPGRADE OF #2 STATION - - 301 301 -

FACILITY IMPROVEMENT PROGRAM 6,121 6,121 6,236 115 2%

FIRE SUPPRESSION SYSTEM UPGRADES 6,515 6,515 6,087 (428) (7%)

HIGH VOLTAGE TEST SETS 4,638 4,638 6,545 1,907 41%

REINFORCED GROUND GRID 1,484 1,484 307 (1,177) (79%)

RELAY MODIFICATIONS PROGRAM 7,032 7,032 8,606 1,574 22%

RETROFIT OVERDUTIED 13/27KV CIRCUIT BREAKER PROGRAMS 10,482 10,482 13,155 2,673 26%

ROOF REPLACEMENT PROGRAM 2,783 2,783 1,005 (1,778) (64%)

TRANSFORMER REPLACEMENT PROGRAM 23,989 23,989 24,863 875 4%

U-BUSHING PROGRAM - - 5,307 5,307 -

TOTAL - RELIABILITY 102,129 102,130 114,534 12,404 12%

EH&S RISK MITIGATION 10,022 10,022 14,805 4,783 48%

PUMPING PLANT IMPROVEMENT PROGRAM 4,596 4,596 4,661 66 1%

TOTAL - ENVIRONMENTAL 14,618 14,618 19,466 4,849 33%

FAILED EQUIPMENT OTHER THAN TRANSFORMERS PROGRAM 4,895 4,895 7,717 2,822 58%

FAILED TRANSFORMER PROGRAM 22,835 22,835 38,185 15,350 67%

TOTAL - FAILURES 27,729 27,730 45,902 18,172 66%

TECHNOLOGY IMPROVEMENTS 990 990 1,276 286 29%

TOTAL - OTHER 990 990 1,276 286 29%

GOETHALS: SUBSTATION RECONFIGURATION (LINDEN VFT) 798 798 811 14 2%

TOTAL - GENERATION INTERCONNECTION 798 798 811 14 2%

SUB-TOTAL - SUBSTATION OPERATIONS 210,628 210,628 232,294 21,666 10%

Substation Operations


2014

4


Variation

Between

Budget and

Actual Variation %



2014

EAST 13TH STREET 32,000 32,000 7,829 (24,171) (76%)

EAST RIVER 1,350 1,350 1,124 (226) (17%)

EAST 15TH STREET 2,750 2,750 289 (2,461) (89%)

EAST 36TH STREET 1,000 1,000 741 (259) (26%)

SEAPORT 1,050 1,050 705 (345) (33%)

TRADE CENTER 1,200 1,200 393 (807) (67%)

GOWANUS 2,500 2,500 3,948 1,448 58%

GOETHALS 9,650 9,650 1,781 (7,869) (82%)

FRESH KILLS 7,000 7,000 2,350 (4,650) (66%)

FARRAGUT 1,500 1,500 684 (816) (54%)

HELLGATE - - 17 17 -

SHERMAN CREEK - - 102 102 -

VARIOUS STATIONS - OVERHEAD TRANS FEEDER RELAY - - 4,761 4,761 -

STORM HARDENING PROGRAM 60,000 60,000 24,724 (35,276) (59%)

TOTAL - SUBSTATION OPERATIONS 270,628 270,628 257,018 (13,610) (5%)

5

Description Rate Plan Budget Actual

Variation

Between

Budget and

Actual Variation %

New Business Capital 157,055 157,055 131,344 (25,711) (16%)

Meter Installation 12,860 12,860 22,420 9,560 74%

Total - New Business 169,915 169,915 153,764 (16,151) (10%)

Primary Cable Replacement (OA's) 55,460 55,460 87,501 32,041 58%

Overhead 17,080 17,080 30,949 13,869 81%

Temporary Services (incl. conduit) 31,462 31,462 62,581 31,119 99%

Street Lights (incl. conduit) 23,068 23,068 26,807 3,739 16%

Transformer Installation 23,067 26,610 34,251 7,641 29%

Total - Emergency Response / Replacement 150,137 153,680 242,089 88,409 58%

System Reinforcement

Part of Richmond/Brownsville (30 MW) 15,000 15,000 - (15,000) (100%)

Part of Pennsylvania (74 MW) to create Waterside network 1,945 2,999 2,601 (398) (13%)

Cable Crossing (XW Riverdale & BQ Flushing) 2,945 2,945 1,122 (1,823) (62%)

59th Street Bridge Crossing 4,982 4,982 373 (4,609) (93%)

City Hall to Cortland 25MVV - - 1,379 1,379 -

Part of Cooper Square (15 MW) 8,000 9,000 (9,000) (100%)

Total - Load Transfers 32,872 34,926 5,475 (29,451) (84%)

Primary Feeder Relief 8,057 10,328 6,071 (4,257) (41%)

Network/Non Network Transformers Relief 22,636 11,665 8,728 (2,937) (25%)

NonNetwork Fdr Relief (Open Wire) 4,987 3,049 2,728 (321) (11%)

Secondary Main Relief - - 551 551 -

Overhead Transformer Relief 1,458 1,492 1,879 387 26%

Total - Base Growth / Relief 37,138 26,534 19,957 (6,577) (25%)

Osmose (C Truss) 1,304 1,283 1,289 6 0%

Autoloop Reliability (27kV Inc'l.) 2,686 2,686 321 (2,365) (88%)

Aerial Cable Replacement 844 2,936 2,248 (688) (23%)

#4,#6 Self Supporting Wire 1,074 1,074 1,027 (47) (4%)

Automated Emergency Ties 537 700 - (700) (100%)

OH Feeder Sectionalizing 1,228 1,000 - (1,000) (100%)

Overhead Conductor Clearance 384 401 3 (398) (99%)

Overhead Feeder Reliability/VRS Replacement 1,151 389 452 63 16%

Oil Minders 384 1,584 1,192 (392) (25%)

Secondary Open Mains 136,983 135,459 137,928 2,469 2%

HiPot 1,963 1,965 38 (1,927) (98%)

PILC 16,687 13,144 18,239 5,095 39%

Vented Service Box Covers 8,977 5,017 5,742 725 14%

4 kV UG Reliability 1,535 1,387 463 (924) (67%)

Underground Secondary Reliability Program 27,776 29,949 28,393 (1,556) (5%)

Overhead Secondary Reliability Program 153 192 729 537 280%

Remote Monitoring System 3rd Generation Transmitter Upgrade 1,150 1,151 5,919 4,768 414%

Pressure, Temperature and Oil Sensors 2,301 2,302 2,566 264 11%

Sectionalizing Switches 2,297 4,285 3,855 (430) (10%)

Grounding transformers 460 460 185 (275) (60%)

Shunt reactors 1,304 1,304 235 (1,069) (82%)

Targeted Primary DBC Replacement 384 384 2,006 1,622 422%

Network Reliability 15,740 16,240 6,470 (9,770) (60%)

ATS Installation USS Reliability XW 153 153 14 (139) (91%)

Transformer Vault Moderization 3,837 4,683 8,568 3,885 83%

Street Lights Service Reliability Program 384 384 108 (276) (72%)

Total - Reliability 231,676 230,512 227,990 (2,522) (1%)

2014

Electric Operations


6


Variation

Between

Budget and

Actual Variation %

2014

Electric Operations


Enhanced Customer Communication Storm Outage Mgmt System 1,963 1,963 2,220 257 13%

Demand Response Management System 687 687 - (687) (100%)

Electric Distribution Control Center Upgrades 1,571 1,571 4,252 2,681 171%

Electronic Distribution Feeder Sign On 442 442 698 256 58%

Decision Aids - Decision Optimizer - Contingency Analysis Program 245 245 103 (142) (58%)

Area Profile System 98 98 98 - 0%

PQView System Upgrade 1,129 1,129 2,136 1,007 89%

Emerging System Reinforcement IT Projects for Enhanced Initiatives DE Analysis 9,141 9,141 11,224 2,083 23%

Total - Information Technology 15,276 15,276 20,731 5,455 36%

Work Management System 26,816 26,816 23,229 (3,587) (13%)

Total - System Reinforcement 343,778 334,064 297,382 (36,682) (11%)

Meter Purchase 7,289 9,500 9,382 (118) (1%)

Transformer Purchase 122,000 122,000 100,937 (21,063) (17%)

MODERNIZATION & OTHER 2,686 2,686 - (2,686) (100%)

USS Site Improvement 2,455 2,455 2,555 100 4%

Total - Distribution Substation 5,141 5,141 2,555 (2,586) (50%)

Sub-Total Distribution 798,260 794,300 806,109 11,809 1%

Switches For Network Redesign 40,000 40,000 15,844 (24,156) (60%)

Selective Undergrounding - - 9,317 9,317 -

460V Network Protector Replacement 10,000 10,000 7,623 (2,377) (24%)

120/208V Non-Submersible Unit Replacement 22,500 22,500 - (22,500) (100%)

Overhead Equipment Upgrades 15,000 15,000 40,886 25,886 173%

Transformer Purchases 5,000 5,000 45,298 40,298 806%

Total - Storm Hardening 92,500 92,500 118,968 26,468 29%

Total Distribution 890,760 886,800 925,077 38,277 4%

7


Variation

Between

Budget

and Actual

Variation

%

Security - - 629 629 -

EH&S 800 974 1,719 745 76%

Control Systems 6,114 6,850 4,430 (2,420) (35%)

Boilers 3,900 6,050 5,453 (597) (10%)

Mechanical Equipment Replacement 1,867 1,510 1,330 (180) (12%)

Electrical Equipment 17,101 14,764 8,814 (5,950) (40%)

Structures 2,056 1,464 758 (706) (48%)

Roofs 905 1,124 1,032 (92) (8%)

Sub-Total Electric Production 32,743 32,736 24,165 (8,571) (26%)

Storm Hardening 14,000 14,000 1,819 (12,181) (87%) Total Electric Production 46,743 46,736 25,984 (20,752) (44%)

2014

Electric Production

2014 Capital Budget and Actual Spend

($'s Thousands)

8


Variation

Between

Budget

and Actual

Variation

%

Irving Place Re-Stacking 34,000 34,002 30,407 (3,595) (11%)

Stormwater Drainage System Outfall B 6,600 6,604 7,040 436 7%

Facilities Buildings & Yards - (Critical Infrastructure) 16,000 15,994 14,072 (1,922) (12%)

Facilities Buildings & Yards - (Roof Replacement Program) 2,272 2,273 2,508 235 10%

Safety Environmental 3,500 3,502 2,837 (665) (19%)

Total Facility Projects 62,372 62,375 56,864 (5,511) (9%)

Strategic IT Projects

Cyber Security 6,812 6,599 6,892 293 4%

Server Farm Infrastructure - Worth St. 4,184 4,184 1,056 (3,128) (75%)

Scada Net - IR 1,517 1,518 1,510 (8) (1%)

CCTN Expansion - Fiber Projects 1,505 1,505 1,659 155 10%

Desktop Infrastructure 1,490 1,490 1,171 (319) (21%)

Server Farm Infrastructure 1,246 1,246 1,548 303 24%

CCTN Expansion - Mobile WiMAX Access Network 1,218 1,218 1,143 (75) (6%)

Network Cyber Segmentation 951 950 888 (62) (7%)

Business Systems Sustainability - Upgrade Applications to SQL Server

2008 856 856 825 (32) (4%)

Business Systems Sustainability - Upgrade Applications to Windows 7 856 856 845 (11) (1%)

New Technology 639 640 656 17 3%

CCTN Modernization - Mapping System 618 619 702 84 14%

CCTN Facilities Improvements 506 506 418 (88) (17%)

CCTN Modernization - Sonet Conversion 321 321 566 245 76%

Computer and Communications Accounting System 107 108 38 (69) (65%)

Metaphase Replacement - Phase 2 (Project Explorer) 1,457 1,457 841 (615) (42%)

AutoCad (Engineering Computer Upgrades) 666 666 643 (23) (3%)

Compass Rewrite 713 713 532 (181) (25%)

Upgrade Contractor Oversight System (COS) 475 475 316 (159) (33%)

Construction Survey Mapping Repository 238 238 348 110 46%

CEES Estimating System 238 238 208 (29) (12%)

Maximo Upgrade - - 385 385 -

Customer Service System Improvements 4,946 4,946 5,012 66 1%

Off System Billing 1,673 1,673 1,559 (114) (7%)

Steam Billing System 423 423 378 (45) (11%)

Meter Data Management System (MDMS) Expansion 309 309 321 12 4%

Online Bill Calculator 285 285 - (285) (100%)

Call Center Improvements 238 238 1,704 1,466 617%

Environmental Management Information System (EMIS) 1,217 1,214 761 (453) (37%)

Safety Health Information Management System (SHIMS) 48 49 39 (11) (22%)

Mapping Systems Replacement with GIS-based Mapping Application 3,803 3,803 744 (3,059) (80%)

Customer Relationship Management 456 456 522 66 14%

Integrated Gas Software System (IGS) 751 751 566 (186) (25%)

NYSO Transmission Owner Data Reporting System - - 362 362 -

eLearning - HR 508 507 520 13 3%

PeopleSoft Upgrade - HR 475 475 445 (30) (6%)

People Fluent Compensation Model 0 0 232 232 -

Total Rewards Programming Project 171 172 162 (10) (6%)

Enterprise Security Software Suite5,449 5,449 2,178 (3,271) (60%)

Security DVR Replacement 416 416 299 (117) (28%)

Security Camera Rollout 332 332 307 (25) (8%)

Forensic Investigative Mobile Lab - 212 222 10 5%

2014

Shared Services Capital Plan


($ Thousands)

9


Variation

Between

Budget

and Actual

Variation

%

2014



($ Thousands)

Enterprise Forensic Platform - - 130 130 -

Allegro System Upgrade 3,794 3,794 584 (3,210) (85%)

Enterprise Project Management System 2,472 2,472 2,075 (397) (16%)

Real Estate Management System 1,949 1,949 1,056 (894) (46%)

Hyperion Suite Upgrade 1,224 1,224 1,037 (187) (15%)

Power Tax Project 723 723 118 (606) (84%)

Investment Optimization Upgrade 456 456 655 199 44%

PowerPlan Provision System Implementation Phase II 380 380 579 199 52%

PowerPlant Data Compression and Archiving 347 347 284 (63) (18%)

Customer Usage System Enhancements 143 143 183 41 28%

Dynamic Load Shaping 143 143 110 (33) (23%)

Archive Imaging System 121 121 105 (16) (13%)

Gas Rate Design & Analysis Systems Enhancement - - 130 130 -

EBS Server Upgrade - - 574 574 -

Install CISCO Screens - - 67 67 -

Case Management System - Law 951 951 1,054 103 11%

Law Technology Package 133 133 108 (25) (19%)

Other 0 104 992 888 854%

Total Strategic IT Projects 60,949 61,051 49,365 (11,686) (19%)

Other

Upgrade Cng Fuel Stations 3,233 3,803 3,795 (8) (0%)

Upgrade Of Vehicle Fuel Stations 4,098 3,421 793 (2,628) (77%)

AMR - Bronx West 16,924 16,924 17,244 320 2%

AMR - Strategic/Hard to read meters 1,635 1,635 1,554 (81) (5%)

Reactive Power 2,464 2,464 2,675 211 9%

Facility Flush Improvements 1,426 1,426 2,895 1,469 103%

Total Other 29,780 29,673 28,956 (717) (2%)

General Equipment

XM1 - Office equipment 808 808 968 160 20%

XM2/13 - Vehicles and equipment 34,609 34,609 36,609 2,000 6%

XM3 - Stores equipment 393 393 378 (15) (4%)

XM4 - Shop equipment - - 527 527 -

XM5/15 - Lab & Test equipment 5,665 5,665 5,861 196 3%

XM6 - Construction equipment 6,296 6,296 7,254 958 15%

XM7 - AV equipment 856 856 759 (97) (11%)

XM8 - Communications equipment 3,002 3,002 2,761 (241) (8%)

XM10 - Computer equipment 9,777 9,777 18,695 8,918 91%

Total General Equipment 61,405 61,405 73,811 12,405 20%

Total Shared Services 214,507 214,504 208,996 (5,508) (3%)

Telecommunications Storm Hardening 1,300 1,300 1,177 (123) (9%)

Total Storm Hardening 1,300 1,300 1,177 (123) (9%)

Total CECONY Shared Services Capital 215,807 215,805 210,173 (5,631) (3%)

10

Capital Budget vs. Actual Variation Explanations

$ Thousands

2014

Budget Actual

Variation

(%) Explanation

S&TO

Transmission Feeder Failures 3,000 16,133 438% In 2014, the underground transmission system had three major

failures (Feeders M52, 72 and 71) versus a budget of one.

Emergent Transmission Reliability 10,500 4,496 (57%) Planned work was deferred to offset emergency feeder repair

expenditures.

Transmission Feeder Pipe Support at the Queensboro Bridge 5,500 - (100%) Project was deferred until 2015.


Security Enhancements 22,000 27,970 27%

Accelerated level of activity to meet completion date mandated

by PSC at various Bulk Power Stations (East 13th Street,

Rainey, Sprainbrook, Dunwoodie, Buchanan and Goethals).

Higher than expected costs at E13th Street and Buchanan due

to out of scope of work

Brownsville: Relieve Overload 10,000 - (100%) Project deferred, funding re-allocated.

East 179th Street: Switchgear & Bus Replacement 15,000 11,364 (24%)

Delayed start to contractor driven civil work, contingency not

required for 2014.

Breaker Capital Upgrade Program 6,806 11,031 62% Additional breakers completed to address SF6 issues

Area Substation Reliability and Auto Ground Circuit Switchers 10,131 12,241 21%

Acceleration of work to take advantage of difficult to obtain

Staten Island Equipment outage.

Disturbance Monitoring Equipment Program (345KV) 7,166 8,331 16% Accelerated work to meet 75% target required by NERC.

Relay Modifications Program 7,032 8,606 22%

Acceleration of work to meet overall Company relay

misoperation goals.

Retrofit Overdutied 13/27KV Circuit Breaker Programs 10,482 13,155 26%

Earlier than planned PO progress payments for Harrison and

E63rd St.

EH&S Risk Mitigation 10,022 14,805 48% Increased due mandated SPCC work.

Failed Transformer Program 22,835 38,185 67%

Primarily attributed earlier than planned recognition for Ramapo

PAR costs, along with East 13th Street Transformer 14 failure

cost not being offset by insurance

East 13th Street 32,000 7,829 (76%)

Lower level of activity than originally forecasted, primarily due to

extended bid check process and delays in building permits

issuance.

Goethals 9,650 1,781 (82%)



issuance.

Fresh Kills 7,000 2,350 (66%)



issuance.

Electric Operations

New Business Capital 157,055 131,344 (16%)

Underrun due to delays in beginning of year as a result of the

winter weather

Meter Installation 12,860 22,420 74% Greater demand in all regions

Primary Cable Replacement (OA's) 55,460 87,501 58%

Over budget in conduit units and UG primary units as a result of

the winter weather

Overhead - Burnouts 17,080 30,949 81%

Over budget service spans and secondary spans as a result of

the winter weather

Temporary Services 31,462 62,581 99% Overrun due to a reduction in the shunts and bridges backlog

Street Lights 23,068 26,807 16% Overrun due to higher than planned street light conduit installs

Transformer Installation 26,610 34,251 29%

Overrun as a result of mild summer resulting in more

transformer units being replaced

Part of Richmond/Brownsville (30 MW) 15,000 - (100%) Work deferred to 2015/2016

Part of Cooper Square (15 MW) 9,000 - (100%) Work deferred to 2015/2016

Primary Feeder Relief 10,328 6,071 (41%)

Higher priority work scheduled for completion and Manhattan no

load relief in 2014

Network/Non Network Transformers Relief 11,665 8,728 (25%) No major load relief projects in 2014

PILC 13,144 18,239 39%

Increase in activity to replace additional primary sections in BQ

networks.

Remote Monitoring System 3rd Generation Transmitter Upgrade 1,151 5,919 414%

Overrun due to volume of installations and replacements to

maintain network remote reporting.

Network Reliability 16,240 6,470 (60%)

Some work deferred to 2015 to complete other higher priority

transformer and cable replacements.

Transformer Vault Modernization 4,683 8,568 83%

Manhattan increased vault related work that was not part of

original plan

IT Analysis (Emerging System Reinforcement IT Projects for

Enhanced Initiatives DE Analysis) 9,141 6,345 (31%) Budget shifted to higher priority projects through optimization.

Work Management System 26,816 23,229 (13%)

Underrun is attributed primarily to a reduction in internal labor

and the associated fringe costs as rotational resources returned

to their home organizations.

Transformer Purchases 122,000 100,937 (17%) Reprioritization of work

Switches For Network Redesign - Storm Hardening 40,000 15,884 (60%) Reprioritization of storm hardening work

Selective Undergrounding - Storm Hardening - 9,317 - Reprioritization of storm hardening work

460V Network Protector Replacement - Storm Hardening 10,000 7,623 (24%) Reprioritization of storm hardening work

120/208V Non-Submersible Unit Replacement 22,500 - (100%) Reprioritization of storm hardening work

Overhead Equipment Upgrades 15,000 40,886 173% Reprioritization of storm hardening work

Transformer Purchases - Storm Hardening 5,000 45,298 806% Reprioritization of storm hardening work

11

Capital Budget vs. Actual Variation Explanations

$ Thousands

2014

Budget Actual

Variation

(%) Explanation

Electric Production

Control Systems 6,850 4,430 (35%)

Underrun due to scope reduced to accommodate reduced

outage schedule of the E70 Desuperheater Station project at

East River Station.

Electrical Equipment 14,764 8,814 (40%)

Underrun due to a delay in material procurement of the 61 & 62

Circulator MOV Controls and 6CP Switchgear Replacement

project, efficiencies in company labor & cost savings in

purchased equipment of the Replace Transformer 6E project,

and a delay in package release has delayed construction of the

Upgrade Substations TA-52 Switchgear Project.

Storm Hardening 14,000 1,819 (87%)

Underrun due to a delay in DOB permits have delayed

construction of the Storm Hardening projects at East River

Station.

Shared Services

Irving Place Re-Stacking 34,002 30,407 (11%)

Underrun is primarily due to lower than anticipated

construction/contractor costs on the 4th and 12th floors.

Facilities Buildings & Yards - (Critical Infrastructure) 15,994 14,072 (12%)

Reprioritization to fund other projects within the Common

corporate portfolio.

Enterprise Security Software Suite 5,449 2,178 (60%) Delay in start-up of the project. Funds to be spent in 2015.

XM6 - Construction equipment 6,296 7,254 15%

Substation Operations requested an additional $1.25 million for

racking equipment in November / December that was not

allocated for in the initial budget but was approved by SAC for

purchase.

XM10 - Computer equipment 9,777 18,695 91%

Overrun is primarily due to the purchase of a new mainframe for

$3.2 million, along with the replacement of obsolete computers

unable to run the Windows 7 PC operating system and the new

electric work management system totaling $3 million. There was

also $3.8 million spent to upgrade server storage arrays to

improve performance at two server farms.

12

Rate Plan vs. Capital Budget Explanations

Rate Plan Budget Actual Explanation

S&TO

Lindsey Towers - - 1,367

Purchase of four Lindsey tower kits to be used in an extreme

weather event.

Outage Scheduling System - - 193 New project required for system upgrade/re-write. Phase 0

completed in 2014. See White Paper attached (pgs. 17-20).

Compliance Management System - - 80 New project appropriated in June 2014 for the purchase of

corporate servers needed for a compliance system . The project is

complete. See White Paper attached (pgs. 21-22).

ECC UPS Battery Replacement - - 173 The project was in the budget and the Rate Plan for 2013 but did

not occur because vendor (Emerson) agreement for services to be

performed was not resolved until 2014. See White Paper attached

(pgs. 23-24).


U-Bushing Program - -

5,307 Emergent safety and reliability issue that required immediate

action. See White Paper attached (pgs. 25-28).

ELMSFORD: UPGRADE OF #2 STATION

- - 301 Work required to get Certificate of Occupancy for the facility. See

White Paper attached (pgs. 29-31).

JAMAICA - INSTALL COOLING ON TR3 - - 705 Emergent Project. See White Paper attached (pgs. 32-33).

VARIOUS STATIONS - OVERHEAD TRANS FEEDER RELAY - - 4,761

All of this work sits under one program line that was in the filing and

for which one white paper was prepared. There is no requirement

to prepare an additional white paper.

Electric Operations

City Hall to Cortland 25MVV - - 1,379

This work relates to carry-over work that was in prior year budget

and rate plan

Secondary Main Relief - - 551

This work relates to carry-over work that was in prior year budget

and rate plan

Selective Undergrounding - - 9,317

This work relates to carry-over work for storm hardening that was in

prior year budget and rate plan

Electric Production

Security - - 629 Carryover costs from the Houston Street Traffic Mitigation Project.

Shared Services

Maximo Upgrade - - 385

Relates to carry-over work; 2015 project accelerated to meet

project deadlines.

XM4 - - 527

Relates to carry-over work; SAC approved spending to replace

vital equipment in Constructions Shop Operations. (C&C Routing

Machine and Flow Jet Machine)

NYSO Transmission Owner Data Reporting System - - 362 See White Paper attached (pgs. 34-37).

People Fluent Compensation Model - - 232 See White Paper attached (pgs. 38-41).

Forensic Investigative Mobile Lab - 212 222 See White Paper attached (pgs. 42-44).

Enterprise Forensic Platform - - 130 See White Paper attached (pgs. 45-47).

Gas Rate Design & Analysis Systems Enhancement - - 130 See White Paper attached (pgs. 48-51).

EBS Server Upgrade - - 574 Work was advanced due to re-prioritization of Common portfolio.

Install CISCO Screens - - 67 Work was advanced due to re-prioritization of Common portfolio.

$ Thousands

2014

13

Capital Unit and Unit Cost Data

Substation Operations Variation Analysis By Program

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Breaker Capital Upgrade Program 7 4 75% $1,575 $1,500 5%

Retrofit Overdutied 13/27kV Circuit Breaker Programs 58 50 16% $229 $230 (0%)

Electric Distribution Variation Analysis By Program

Meter Installation

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Meter Installations 66,331 42,867 55% $338 $300 13%

Primary Cable Replacement (OA's)

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Underground Conductor Primary URD 396 63 528% $5,123 $7,008 (27%)

Underground Primary Cable 3,386 1,292 162% $21,092 $23,010 (8%)

Underground Conduit 24,247 7,258 234% $566 $635 (11%)

Overhead Emergency Response

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Poles, Towers, Fixtures 850 532 60% $12,961 $13,652 (5%)

Overhead Primary Conductor 4,088 1,316 211% $2,324 $2,968 (22%)

Overhead Secondary Conductor 2,025 1,783 14% $1,217 $1,297 (6%)

Overhead Service Conductor 2,274 1,232 85% $948 $1,240 (24%)

Overhead Street Light Conductor 1,366 1,068 28% $968 $1,200 (19%)

Overhead Transformer Installation - - - $0 $0 -

Aerial Cable 600 162 270% $6,259 $5,088 23%

Temp Services (incl. Conduit)

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Underground Services Cable Conv 7,649 2,100 264% $3,824 $3,100 23%

Underground Services Cable URD 297 171 74% $4,002 $3,252 23%

Underground Service Conduit 65,398 42,337 54% $487 $581 (16%)

Street Lights Emergency Response (Incl. Conduit)

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Cable 1,457 582 150% $2,443 $2,425 1%

Conduit 52,537 37,975 38% $440 $557 (21%)

URD 450 168 168% $713 $2,420 (71%)

Transformer Installation Emergency Response

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Underground Transformer Installation 1,503 1,489 1% $20,724 $16,170 28%

Overhead Transformer Installation 863 800 8% $3,967 $3,518 13%

14

Capital Unit and Unit Cost Data

Primary Feeder Relief

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Underground Primary cable 623 1,012 (38%) $9,738 $10,202 (5%)

Vented Service Box Covers

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Cable, Conduit etc 3,650 4,982 (27%) $1,573 $1,007 56%

Network Reliability

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Poles, Towers, Fixtures 117 - 0% $6,620 $0 0%

Aerial Cable 222 211 5% $5,471 $759 621%

Underground Primary Cable 104 24 326% $7,286 $6,386 14%

Underground Conduit 406 736 (45%) $14,090 $21,684 (35%)

Underground Secondary Reliability

Description

Actual

Units

Budget

Units Variance

Actual

Unit Cost

Budget

Unit Cost Variance

Underground Conduit 2,015 1,382 46% $14,090 $21,664 (35%)

15

Consolidated Edison Company of New York, Inc Capital Expenditure Report for 2014

White Papers

16

17

18

19

20

2014 Capital - Central Operations/Transmission & Substation Operations

Project Name CMS Implementation

Project Number

Work Plan Category Strat - Efficiency & Process Improvements

Priority

Project Manager

Project Engineer

Budget Reference

Project Status Project Not Started

End Date Dec 31 2014

ERM Addressed

Work Description:

On July 1, 2016 Con Edison will be registered with NERC as a Transmission Operator (TOP) which will significantly increase the Company’s compliance responsibilities. In preparation for this, the System Operations department has been preparing a Compliance Program that ensures that the regulatory requirements of operating the Bulk Electric System (BES) are met. The Compliance Management System (CMS) will automate the management of NERC regulatory compliance. The system is intended to lower compliance/auditing costs, detect potential compliance violations early, and reduce exposure to future non-compliance risks. The primary functions of CMS are to maintain and organize relevant compliance documents and to automate evidence tracking. The system will also generate statistical reports about the status of evince as it pertains to specific regulatory requirements. The primary users of CMS will be employees in the System Operations department; however, the system is designed to support the compliance obligations of other departments in Con Edison including Substations and Transmission Planning. The cost estimated for this project is limited to the implementation of the required server infrastructure.

Justification:

We benchmarked Compliance Programs in place around the Country using documents posted to the North American Transmission Forum (NATF). Companies which manually maintain their compliance programs require additional staff dedicated to this task as compliance obligations increase. A number of software vendors have emerged which provide software solutions to automate compliance tasks. We determined that an in-house developed software solution will be most cost-effective because the incurred costs do not involve annual vendor licensing fees. The Information Resources department provided a quote for the required hardware costs and server infrastructure licensing based on their recommended configuration.

21

* Alternatives: We have evaluated several vendor products which can be used for managing compliance evidence including AssurX CATSWeb and OATI WebCompliance. These solutions will require at least the same amount of server hardware to be purchases as needed for CMS. However, in addition to hardware costs, there vendors charge installation costs and annual licensing costs on a per user basis. Our compliance model includes the involvement of many subject matter experts to independently maintain their assigned evidence documents (rather than a centralized group) so the licensing models in place by vendors result in significantly higher project costs than in-house developed solutions. Software as a Service (SaaS) solutions were disregarded as viable alternatives because of the security concerns in storing confidential Company records on third party servers.

* Risk of No Action: Without an automated system, keeping track of Company compliance with evolving regulatory standards requires tremendous amount of time and paper work; moreover, there is a constant/periodic need for manually validating the state of compliance. At present, there are over 180 NERC requirements that have been identified for TOP registration and there are over 200 System Operations procedures which can be used as evidence for compliance. Both the NERC requirements and Company procedures are revised regularly. Besides procedures, other types of evidence that need to be tracked include operator schedules, training history, voice recordings, and legal documents. The risks of not having an automated compliance system include financial liabilities for compliance violations as well as the increased labor costs from manually maintaining a compliance program.

* Non-Financial Benefit Explanation:

* Technical Evaluation and Analysis:

* Project Relationships:

Current Status:

Current Working Estimate:

Funding: ($000s)

Funding Cost

2014 2015 2016 2017 2018 2019 Total

$125 $0 $0 $0 $0 $0 $125

Benefit: ($000s)

* 2009 to 2013 Budget in Thousands-

$0


$150

* Authorization-

* Appropriation-

22

2014 Capital - Central Operations/Transmission & Substation Operations

Project Name ECC UPS Unit 2 and 3 Battery Replacement

Project Number

Work Plan Category Oper - Emergency Response

Priority 1.16

Project Manager Anderson, Michael

Project Engineer Rawczak, Eugene

Budget Reference

Project Status Project Not Started

End Date Apr 1 2013

ERM Addressed Oper Risk 20 West End Ave. ECC Loss,Admin Risk 34 Unsupported Computer Systems

Work Description:

The batteries that are used at the Energy Control Center to provide protection and uninterrupted transfer of load to the diesel generators by the three 100kva UPS systems will be replaced. This project will replace the battery systems associated with UPS #2 and UPS #3

Justification:

The critical systems at the Energy Control Center are protected by three 100kva UPS systems. The critical systems require large battery support to provide protection and to allow uninterrupted transfer of load to the back-up diesel generators. The batteries for UPS1, UPS2 and UPS3 were delivered in 1998, and placed into service in 2001 for UPS1 and 1998 for UPS2 and 3. The batteries are isolated in three different rooms for protection and separation. This project will replace the battery systems for UPS #2 and UPS #3 based on test results and age. The batteries will be replaced one room at a time with critical load transferred to another UPS during replacement to ensure continued operation of the critical computer systems. The batteries for UPS #1 will be scheduled for replacement in 2016 under a separate project.

* Alternatives:

* Risk of No Action: The UPS system will not provide support during power outages or emergency diesel tests. Without battery support computer equipment would shutdown during any type of loss of power, interrupting operability and potentially corrupting data files.

* Non Financial Benefit Explanation:

* Technical Evaluation and Analysis:

* Project Relationships:

23

Current Status: Project scope submitted to Engineering via ESR2013, 3/18/2011


Funding: ($000s)

Funding Cost 2012 2013 2014 2015 2016 2017 2018 2019 Total

$500 $200 $0 $0 $0 $0 $0 $0 $700

Benefit: ($000s)


$500


$200

* Authorization-

* Appropriation-

24

X Capital

O&M

2014 – Central Operations/Substation Operations

Project/Program Title “U” Type Bushing Replacement Program

Project Number Various

Status of Project Ongoing

Estimated Start Date Ongoing

Estimated Completion Date Ongoing

Work Plan Category Strategic – System and Component Upgrades

Work Description: Utility industry experts have identified transformer bushings that have design and manufacturing

problems. A bushing is a device that brings out the transformer internal winding leads through an

insulating tube for connection to the power system. The identified bushings are General Electric Type U

and Haefely Trench Type COTA bushings. Failure of the bushings can lead to transformer failure,

decreasing system reliability and availability of transformers on the transmission and sub-transmission

systems. Bushing problems have started to occur more frequently because of increased transformer load,

which causes increased operating temperatures and voltage stress degradation.

Approximately thirty (30) 345 kV bushings, two-hundred and fifty (250) 138 kV bushings, forty-five (45)

69 kV bushings, and ten (10) 23 kV bushings have been identified for replacement and upgrade.

It is recommended that identified bushings be replaced and upgraded based on failure probability and

system impact. The recommended priority is:

1. 138 kV and 345 kV shunt reactors

2. 345 kV transmission autotransformers

3. All phase angle regulators (PARs)

4. Other 138 kV and 345 kV auto-transformers

5. Two bank area substation transformers

6. Other area substation transformers

Justification Summary: A major component of a power transformer is a bushing. General Electric Co. (GE) was a major supplier

of bushings for all transformer manufacturers until the late 1980s. GE manufactured bushings with ratings

from 15 kV through 800 kV and has served over 60% of the US market. One of the many types of

bushings that GE supplied was the Type U bushing, a condenser-type design. The condenser-type design

utilized a metal core tube with insulating paper and an electrically conductive foil or semi-conductive

electrode wound around the core. The Type U design used alternate layers of plain Kraft paper and Kraft

paper with conductive ink printed in a herring-bone pattern on the surface. In the late 1970s, users

reported increases in the power factor of Type U bushings.

Teardown of failed and high power factor bushings revealed the following problems:

1. Heavy loading of some transformers (e.g., generator step-up transformers and shunt reactors),

generated a higher internal temperature than the temperature expected from conductor-generated

heat. This higher temperature resulted in increased pressure in the gas space above the oil, leading

some of the gas to become dissolved in the oil. Rapid temperature cycling resulted in the gas

25

bubble generation and a reduction of dielectric stress. Insulation system degradation resulted in

an increased power factor.

2. Over time, the conductive ink transferred from the printed-paper layers to the plain kraft paper

layers. This bleeding of the conductive ink resulted in an increased power factor.

3. The terminal connection on the top of the bushing used a "flex-seal" system composed of a

gasket, a seal nut, and a spring. If the cover bolts became loose over time, hot spots developed

that compromised the gasket seal. Water would enter the bushing through the compromised

gasket seal.

In addition, Type COTA bushings from Haefely Trench experienced unexpected failures in the middle of

the last decade. Haefely Trench started manufacturing the Type COTA bushings in 1994. The Type

COTA is also a condenser-type design. The failures occurred around the flange section of the bushing.

The Type COTA bushing is shorter than bushings of the same rating manufactured by other

manufacturers, which made it a good universal replacement. Because of the shorter dimension, the design

must control the maximum and average voltage stresses in the Kraft paper insulation system.

Users started measuring the power factor of the Type COTA bushings and reported increased power

factor measurements. No definitive root cause was found for the bushing failures.

Bushings are subjected to high dielectric, thermal, and mechanical stresses, which makes them a critical

component of a transformer. It has been well documented that the physical damage a failed bushing

causes can lead to a damaged power transformer. Several of our substations have transformer bushings

that have been identified as having design and manufacturing problems.

Upgrading bushings will result in a reliable transmission and sub-transmission system, a reliable and

available transformer, and minimal transformer failures from bushing failures.

Supplemental Information:

Alternatives:

1. Do nothing and replace the bushings if they fail. This is not an acceptable alternative. See

risk of No Action

2. Perform routine power factor testing on existing bushings that have a higher potential of

failure. Bushings could fail between periodic testing resulting in the same issues as

Alternative 1. In addition, this would also result in numerous additional outages for

testing. Therefore, this alternative is not acceptable.

3. Procure and install new transformer bushings. This alternative is recommended.

Risk of No Action:

Waiting for bushings to fail and then replace them can cause transformer failure. This alternative

is not acceptable since failure of a bushing and/or a transformer during the summer period will

negatively impact the reliability of the transmission system. In addition the cost replace a

transformer can easily cost to $15 to $40 M, which is significantly more than the cost of replacing

the bushings.

Non-financial Benefits:

Upgrading bushings will result in a reliable transmission and sub-transmission system, a reliable

and available transformer, and minimal transformer failures from bushing failures.

Summary of Financial Benefits (if applicable) and Costs:

26

Bushing failures have the potential to be catastrophic resulting in large costs for damages to

transformers and lengthy outages on the system that could impact customers. The lack of a

bushing replacement strategy is not prudent and could lead to a deteriorated transformer fleet.

Technical Evaluation/Analysis:

Project Relationships (if applicable):

“U” bushing replacements may be scheduled in conjunction with Tap Changer inspections where

the increased outage duration does not impact the system.

Basis for Estimate:

Near term work based on Engineering estimates. Outer term work based on cost of similar types

of work done in the past. As this is an ongoing program, work scopes are generally similar in

nature.

Total Funding Level ($000):

Historical Spend

Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014

1,638 4,374

Historical Elements of Expense (Historical EOE breakout will only be completed for Steam projects/programs of $500 thousand or more and, for all

other organizations, projects/programs of $1million or more.)

EOE Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014

Labor 654 1,425

M&S 8 77

A/P 171 942

Other 39 138

Overheads 765 1,792

Total 0 0 0 1,638 4,374

27

Request ($000):

Request

2015

Request

2016

Request

2017

Request

2018

Request

2019

2,300 3,000 3,000 3,000 3,000

Request by Elements of Expense:

EOE 2015 2016 2017 2018 2019

Labor 590 820 848 851 846

M&S 400 480 480 480 480

A/P 337 420 420 420 420

Other 160 306 306 306 306

Overheads 813 974 945 943 948

Total 2,300 3,000 3,000 3,000 3,000

28

X Capital

O&M


Project/Program Title Upgrade of Elmsford 2 Substation

Project Number 20762-03

Status of Project Ongoing

Estimated Start Date 2006

Estimated Completion Date 2015

Work Plan Category Strategic

Work Description: This project will enhance the reliability of the Elmsford Substation. Modern switchgear controlled by

state-of-the art relay protection will be installed in a new building that will also provide space for a new

control room, new battery rooms, new communications room, and new relay rooms. Multiple outages are

required on the existing equipment to transfer the supply of power from the existing distribution bus

sections to the new bus sections. Additionally, individual distribution feeder outages are required to

transfer the supply of each feeder from the previous bus sections to the new bus sections. All of these

outages will occur in a pre-approved sequence and none can be completed during our summer period.

Each of the outages creates the first contingency in a single contingency area.

Justification Summary: The Elmsford Substation, located in Westchester County, is in service for over 50 years. It is one of the

few area stations with outdoor switchgear and underground protection and control wiring. Being an

outdoor substation, the weather has taken its toll on the equipment, its supporting structures, and

protection/control wiring.

The existing substation consists of 4 transformers, 8 sections of switchgear, and 3-20 MVAR capacitor

banks. The switchgear utilizes circuit breakers that have reached the end of their useful life due to lack of

spare parts and manufacturer support. The equipment enclosures have deteriorated resulting in leaks and

equipment outages due to water damage and misalignment. The equipment supporting structures are

corroding and switchgear components have also been susceptible to water damage. As the structural

components deteriorate, manual operation of the existing heavy circuit breakers has become increasingly

difficult and requires more time and resources.

Finally, by first rebuilding the substation on the existing property the number of system outages and the

time duration for outages will be minimized, as well as facilitating the transfer of the station load from the

existing station to the new station.


Alternatives:

The only means of improving existing conditions is to either replace the switchgear and its

protection/control wiring or transfer load to nearby substations and retire the Elmsford substation.

The station currently supplies approximately 180 MW of load, and transferring this load to

nearby substations will result in those stations exceeding their capability, therefore the only

option is to replace the switchgear and its protection/control wiring.

29

Another alternative is to rebuild switchgear sections to 63kA and replace breakers with vacuum

type circuit breakers.

This alternative is not recommended because:

• The estimated cost for procurement and installation of new switchgear would be approximately

$15,000,000. This investment would not be cost effective for the following reasons:

• This alternative would not mitigate the overall problems caused by poor drainage in a low-lying

area, and would not address the deteriorated wiring and control systems.

• Equipment would still be located in deteriorated enclosures. The substructure is rusting, floors

are deforming under load and the building leaks.

• 13 kV outages will be very restrictive and lengthy to allow for environmental mitigation and

will impact customer service.

• The substation would not contain the latest automation technologies.

Risk of No Action:

Continued risk of outages, including extended outages, to our customers due to failures of the

existing equipment. This project will improve the feeder processing durations of the Elmsford

electric distribution system. The substation would still be an outdoor facility, subject to weather

conditions, and less conducive to efficient operation and maintenance.


Increases overall system reliability and reduces the likelihood of service interruptions for the

custemers served by this substation.


Current Status:

The following work has been completed:

Completed physical construction of the new switchgear building in October 2010.

Commenced the installation of the BMS, HVAC and Fire Protection systems.

Completed a substantial portion of the new distribution feeder conduit banks and the

control and indication troughs/conduits.

Commenced the installation of the exterior bus support foundations.

Completed the installation and testing of the building BMS, HVAC and Fire

protections systems.

Received and installed all sections of new switchgear and bus duct

Completed preliminary testing of the new switchgear

Completed installation of equipment in the new Control Room, Battery Rooms and

Communications Rooms

Completed the installation of all remaining troughs and conduits.

Completed the migration of all distribution feeders to the new station.

Completed the physical and electrical isolation of the retired switchgear from the new

facility.

Completed lead and asbestos abatement of all retired equipment.

Completed the demolition of the old switchgear and other retired electrical facilities

and above grade conduits around the station, including all retired equipment in the old

control room.

Completed the modifications to the façade of the old control room and fire walls

visible from the street.

Final grading work is the one outstanding item that must be completed, and is

required in order to obtain a final Certificate of Occupancy for the new facility. A

limited amount of this work was done in 2014, and it is expected to be completed in

2015.

30


Basis for Estimate:


Historical Spend

Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual

2014

26,251 27,797 2,832 527 301

Historical Elements of Expense

EOE Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual

2014

Labor 1,792 6,675 546 98 142

M&S 661 603 145 220 48

A/P 23,331 7,660 2,284 8 (29)

Other (7,692) (372) (1180) 11 2

Overheads 8,159 13,232 1,038 190 138

Total 26,251 27,797 2,832 527 301

Request ($000):

Request

2015

Request

2016

Request

2017

Request

2018

Request

2019

2,000

Request by Elements of Expense EOE 2015 2016 2017 2018 2019

Labor 200

M&S

A/P 1,200

Other

Overheads 600

Total 2,000*

*Note – Project is currently not in SSO’s 2015 Budget.

31

X Capital

O&M


Project/Program Title Jamaica Substation – Install Additional Cooling on TR3

Project Number 25567-13

Status of Project Completed

Estimated Start Date January 2014

Estimated Completion Date May 2014

Work Plan Category Operationally Required

Work Description: Remove and replace existing single-speed cooling fans for Transformer 3 (TR3) with new dual speed

cooling fans and controls. This will increase the station capability to meet the projected load demand

outlined in the Ten-year Load Relief plan.

Justification Summary: The Preliminary Ten-Year Load Relief Plan (2010-2019) projects summer 2014 station loading for

Jamaica Substation at 478 MW. The current station capability is 462 MW. Jamaica Substation is limited

by the capability of TR3.

The station capability will be increased by replacing TR3’s existing single-speed cooling fans and

associated controls with new two-stage cooling fans and controls. TR3 is limiting the station capability

with a 300-hour rating of 125.8 MVA. The addition of two-speed cooling fans will increase the

transformer’s capability to 128.7 MVA. Station capability will increase to 478 MW. Station capability of

478 MW is projected to be adequate until 2017.


Alternatives:

One alternative would be to transfer loads out of Jamaica Sub-Station. However, the nearby

stations are also near capacity and this would be a costlier option as upgrades would also be

requried. A second alternative would be to replace this transformer with a unit of higher

capability. However, this transformer is not currently targeted for replacement and this would be

a costlier option.

Risk of No Action:

If no action is taken, there would be a potential risk of losing customers due to the higher network

load as compared with the station capability.


Ensures continued and uninterrupted service to our customers. Maintains our system reliability.


Reduces potential for fines up to $5M based on station shutdown due to overloads.


The Jamaica Substation is an open air, outdoor substation, which consists of 138 kV bus sections

tied together through “bus tie” circuit breakers and a bus tie feeder. There are a total of five (5)

32

93.3 MVA rated transformers at Jamaica Substation with varying emergency ratings based on

transformer design. Transformer No. 3 is limiting the station capability with a 300-hour rating of

125.8 MVA. Transformer No. 3 is a 132/28 kV Westinghouse Electric Corporation, rated 93.3

MVA.


Basis for Estimate:


Historical Spend

Actual 2010 Actual 2011 Actual 2012 Actual 2013 Historic

Year (O&M only)

Actual

2014

705



EOE Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual

2014

Labor 158

M&S 229

A/P 6

Other 25

Overheads 287

Total 705

33

X Capital

O&M

Capital – Shared Services – IR/Energy Management

Project/Program Title NYISO Transmission Owner Data Reporting System (TODRS)

Project Manager Carlos Villalba

Project Number 1XC2000

Status of Project In progress. Approximately 5% complete.

Estimated Start Date Ongoing

Estimated Completion Date July 2016

Work Plan Category Regulatory

Work Description: Replace the Company’s current New York State Independent System Operator (NYISO) Transmission

Owner Data Reporting System (TODRS). This project involves multiple departments of the Company,

such as Information Resources, Rate Engineering, Customer Operations, and Energy Management, as

well as an external consultant to develop a new program in order to better support the Retail Access

Program. The new system will provide transparency and expandability of the energy and capacity

reconciliation process.

Justification Summary: There are two systems which provide information that the Company uses to report reconciliation and

other information to the NYISO. These systems are the energy service companies’(“ESCOs”) peakLoad

Forecast reporting program (ICAP Tag) and the ESCOs Hourly Demand Reconciliation reporting

program (ISO RECON). These programs retrieve data and supporting information from several

programs, some of which are being modified or changed. Energy Management reviews and analyzes the

data in the system and makes adjustments when necessary.

If no adjustment is required, Energy Management releases the information to the NYISO. If the file needs

to be adjusted, Energy Management manually adjusts the information and then releases the information to

the NYISO. This process is completed each month in order to satisfy requirements set forth by the

NYISO. It is largely manual, susceptible to calculation errors, and cannot be reproduced for

troubleshooting.

System modifications are required due to the changes taking place within the market, new systems being

put into place that provide information to the ISO RECON system, the correction of issues taking place

within the system, and the switch to weekly billing by the NYISO.

When the original program was developed, the market was not clearly defined. Over the years, the

programs have been updated using program patches and by increasing the manual effort of Company

employees. The patches and manual processes developed have created issues due to increased program

complexity and “black box” type calculations that are dependent on individual knowledge and memory to

maintain system integrity, which makes the process less transparent. Some examples of market changes

that affected the system are:

The NYISO shortened its settlement cycle, which resulted in numerous patches to the existing

computer code that lead to multiple challenges during the implementation period. Most of the

challenges were due to the unknown interdependency of adhoc programs of this process.

34

CECONY system losses and unaccounted for energy are no longer allocated to Generating

stations’ light and power resulting in numerous changes in the current system and a time-

consuming manual process to separate these accounts during capacity and energy reconciliation

processes.

A new NYISO Transmission Owner Data Reporting System will perform the ICAP Tag and ISO RECON

programs, improve accuracy, oversight, and reliability of the reporting process by eliminating some

manual operations and by making use of modern programming language and tools. It will allow the

Company to adapt the reporting process to suit the needs of the market and participating Energy Supply

Companies. This, in turn, will benefit Retail Access participants/ESCO’s by creating a more accurate and

effective system since transactions will be more transparent and will allow for Company personnel to

readily troubleshoot and resolve reporting problems due to customer billing or metering issues.

A new system, in comparison to the existing systems, is expected to provide the following needed

changes:

The new system will enable the reporting aggregation of time-of-use customers of an

ESCO to the NYISO

The new system will enable the reporting of an ESCO customers’ non-interval metered

on-peak and off-peak usage to the NYISO

The new system will use the best available metering information regardless of the

customer service classification

The new system will have the capability to report to the billing system automatically the

NYISO’s market capacity obligations for the accounts in the Mandatory Hourly Pricing

(MHP) program

NYISO’s market capacity obligation adjustments as a result of NYPA allocation changes

could be recorded based on the effective date and end date

The method for allocating load lost due to departing customers could be made consistent

with the NYISO tariff

Customers will be located in the electric system electrically based on the feeder location

instead of a zip code allowing further analysis of losses and estimated load shapes

Provisions could be created for analyzing Unaccounted for Energy (UFE)

The new database can be easily queried to produce different types of reports. This would

allow through analyses of the business rules without having to have detailed knowledge

of the computer language to implement them and allow for greater transparency and

greater flexibility as the market and systems change

A user interface will allow an analyst with less knowledge of the reconciliation process to

produce the NYISO reports and perform basic troubleshooting of the process

A portion of this project addresses a commitment included in the existing Electric Rate Plan in Case 13-

E-0030.


Alternatives:

The alternatives to the TODRS are:

1. Create a new Energy Reconciliation system that is capable of utilizing information from all

internal systems, provides transparency of the calculations, and corrects issues that exists in

the current system (This option was selected.).

2. Modify the existing Energy Reconciliation System to allow it to perform the functions needed

to use information from updated systems within the Company and corrects issues. This option

35

would still retain the existing system’s inherent flaws of disaggregated program structure,

obsolete programming language, and intensive manual intervention.

3. Keep the system unchanged. The Company is implementing several new systems and

programmatic changes which will render the existing system inoperable if left unchanged and

this is magnifies the flaws of the existing system, as noted in Option 2 above.

Risk of No Action:

See Justification Ssection. This upgraded system would limit ESCO customer energy data and

transparency concerns.


See Justification Section.



In 2014 an outside consultant developed an evaluation of the technical requirements and work

scope associated with this project.


Basis for Estimate: Vendor quote and IR quote.


CAPITAL

Historical Spend


Year (O&M only)

Forecast

2014

$0 $0 $240 $0 No O&M $400


other organizations, projects/programs of $1 million or more.)

EOE Actual 2010 Actual 2011 Actual 2012 Actual 2013 Historic

Year (O&M only)

Forecast

2014

Labor $35

M&S

A/P $240 $345

Other

36

Overheads $20

Total $0 $0 $240 $0 No O&M $400

Request ($000):

Request

2015

Request

2016

Request

2017

Request

2018

Request

2019

$1,440 $1,569 $0 $0 $0

Request by Elements of Expense:

EOE 2015 2016 2017 2018 2019

Labor $160 $165

M&S

A/P $1,155 $1,195

Other $80

Overheads $125 $129

Total $1,440 $1,569

37

X Capital

O&M

2014 – Shared Services/Human Resources

Project/Program Title PeopleFluent (Authoria)

Project Manager Emilia Polin

Project Engineer Akram Ghaly and Madhu Reddy

Work Plan Category Employee Compensation Review

Background: In 2007, PeopleFluent (Authoria) was first installed at CECONY as the salary, bonus and stock planning system for the Management Compensation Cycle. In 2008, the system was introduced to O&R. This Windows-based application replaced Compensation’s homegrown Excel system of spreadsheets. After eight compensation cycles, the system has reached a point where it requires an upgrade. This is due in part to technology advancements in general, as well as, needing to support changes to the overall Compensation Plan design. Other external systems were considered, such as Cornerstone and PeopleSoft, however these were not viable options as they either required significant customization or simply would not meet our needs based on the design of the company’s Compensation program. One of the key functions that will be required for the 2015 compensation cycle is the ability to run both O&R and CECONY’s cycles concurrently. PeopleFluent’s current version will accommodate this processing requirement. In addition, the upgrade will enhance customer experience by improving manager functionality and giving managers better access to data at the click of a button. The current version utilizes “Smart Grids” to quickly analyze data. Managers will also be able to filter data more easily and use interactive pre-established graphs to help manage the overall compensation process. This functionality will replace Excel worksheets and macros currently being used by managers, Human Resource support staff and the compensation staff. Due to our long standing working relationship with PeopleFluent’s and their understanding of our business requirements, the upgrade will be configured, tested and completed by mid-December 2014. Work Description: Both the current and the upgraded version of PeopleFluent are hosted and maintained by the vendor. Con Edison is responsible for providing business requirements, employee data, and employee access to the vendor’s hosted application through the Con Edison intranet. Employee data will be transmitted through interfaces with the vendor. As part of this upgrade project, the Compensation team will determine the requirements for the new version. The vendor will review the current configuration and determine the new configuration for the upgraded system in accordance with compensation requirements. The vendor will also analyze the data and determine if any data gaps exist. The vendor will configure the new system as per the requirements. The vendor will work with Con Edison IR and the Compensation team to determine the necessary data changes required

38

in both inbound and outbound interfaces and provide the updated specifications. IR will make the necessary code changes to the interfaces as per the specifications. The vendor will also perform the necessary data conversion from the old system to the new system as part of upgrade. During the design session, the vendor will also provide the technical specifications of the new version so that IR will make the necessary adjustments to the Con Edison intranet access.Con Edison will provide a new version of the interface test files to be loaded by the vendor. The Compensation team will conduct testing of the upgraded system and approve the changes for production. The vendor and the Compensation team will be responsible for training sessions and employee communications. Once the testing of the new system is completed successfully, the current version will be replaced with the new system, new interfaces will be put in production, and the system will be made available to managers for the 2015 management compensation cycle. Justification:

Alternatives: The upgrade is required to implement the changes in the 2015 Management Compensation Plan.

Risk of No Action: The current system is not able to support the changes to the 2015 Compensation Plan. For example, both CECONY and O&R will be administered concurrently in 2015.

Scheduling: – System Configuration - October – System Testing - November – Expected Completion in mid-December – Employee Communication in December/January – System Available for 2015 Compensation Planning in February

Non-financial Benefits (if applicable): The Company has not invested in any of PeopleFluent’s upgrades since the system was first implemented in 2007. PeopleFluent has implemented several upgrades over the years. Since we have not been operating on the latest version, each compensation cycle gets progressively more challenging due to lack of vendor support for the older version in place at Con Ed. The upgrade will enhance customer experience by improving manager functionality and giving managers better access to data at the click of a button. The current version utilizes “Smart Grids” to quickly analyze data. Managers will also be able to filter data more easily and use interactive pre-established graphs to help manage the overall compensation process.


39

PeopleFluent is a vendor product but all upgrades will require a review/analysis of the impact to existing functionality, data and changes to the interfaces.

Sensitivity Analysis (if applicable):

Vendor is responsible for the security of Con Ed’s employee data maintained within their system.

Project Relationships (if applicable): Vendor to Con Ed. Application is hosted and maintained by the vendor.

Strategic alignment Driver Impact Statements: -- Strengthen the Company’s Support Activity

Business Driver –Continue to focus on technological innovation and effective and efficient support systems

Strengthen the Company’s Human Resources

Business Driver –Achieve superior business performance through competent employees, engaging work and continuous learning

Estimated Completion Date: January 2015 Status: Preliminary investigations regarding a potential upgrade to the Management Compensation System began following the completion of the 2014 Compensation Cycle. Initial estimates of the vendor’s upgrade to the current version were approximately $150,000; below the threshold for capitalizing a software upgrade. Upon further review of the capabilities of the upgraded system, a more detailed analysis of the implementation costs (including internal resources) was conducted. Current Estimated Funding: Total Cost: $250,000


Historical Spend


Year (O&M only)

Forecast

2014

40




Year (O&M only)

Forecast

2014

Labor

M&S

A/P

Other

Overheads

Total $232

Request ($000):

Request

2015

Request

2016

Request

2017

Request

2018

Request

2019

$20

Request by Elements of Expense EOE 2015 2016 2017 2018 2019

Labor

M&S

A/P

Other

Overheads

Total $20

41

Capital – Corporate Security

Project Name Corporate Security Forensic Investigative Mobile Lab

Project Number

Project Manager Michele Campanella

Project Engineer Steve Kim

ERM Addressed Cyber Intrusion/Forensic

Work Description:

The Corporate Security Department has an operational necessity to

develop a specialized mobile cyber forensic lab and communication

center to respond to attempted and actual cyber intrusions. This request

is concurrently submitted with a request to add two certified and highly

proficient cyber technicians to forensically identify, investigate and

mitigate cyber threat incidents with the goal of maintaining business

continuity. The combination of personnel along with the equipment

resources identified herein will give the company the ability to quickly

investigate and identify cyber threats, and liaison with personnel from

within the corporation through federal partners to exchange high level

information. This will provide the company with added mitigating

measures to address malware infections, Phishing, unfriendly network

probes, attacks via the internet and the insider threat.

In the past, our company may have reported a cyber incident to the

appropriate federal law enforcement agency and then might not hear

anything back about the issue. Through this rate request, we will have the

necessary resources to train and equipment a mobile response lab to

quickly identify and mitigate cyber threats.

Justification: A destructive cyber attack is a serious issue that we are confronted with

today. An attack on our critical infrastructure could have a catastrophic

financial and operational impact on our business as well as a affecting the

lives and safety of the millions of customers we serve. Most cyber

security experts agree it’s only a matter of time before the U.S.

experiences such an attack.

* Alternatives: The company currently does not have adequate resources to forensically

investigate all cyber threats.

* Risk of No Action: Unable to detect and mitigate “zero day” exploits.

*

* Technical Evaluation and

Analysis:

Cost is approximately $200,000

Mobile Cyber Forensic Lab /Mobile Emergency Comm. Center:$100,000

42

Forensic hardware $40,000

Forensic software $15,000

Communication and network equipment $15,000

Satellite / wireless network services $10,000

Independent high speed internet connection $10,000

Equipment software upgrades $10,000

Current Status: PLANNING


Funding: ($000s)

Funding Cost 2013 2014 2015 2016 2017 2018 2019 2020 Total

200 0 0 0 0 200

Benefit: ($000s)

* 2007 to 2011 Budget in

Thousands-

$0

* 2012 to 2016 Budget in

Thousands-

* Authorization-

* Appropriation-

Historical elements of expense (EOE’s)

EOE 2007 2008 2009 2010

2011

Labor

M&S

*A/P - - - - -

Contingency

43

Total

Forecast

EOE

Approved

2012

Forecast

2013

Forecast

2014

Forecast

2015

Forecast

2016

Approved/Forecast

Total 2012-2016

Labor $3

M&S

*A/P/equip

$187

Overheads $10

Total $200

44

X Capital

O&M

Corporate Security

Project/Program Title Enterprise Level Forensic and Incident Response Investigative Platform

Project Manager Steve Kim

Project Number

Status of Project Planning

Estimated Start Date 11/01/2014

Estimated Completion Date 12/31/2014

Work Plan Category

Work Description: The Corporate Security Department has an operational need to implement an enterprise-level forensic and

incident response platform that can both be timely and minimizes disruptions to the business operations of

the company. These twin goals can be met with the implementation of an enterprise forensic software

platform that provides investigators with virtually instantaneous access to even remote computer digital

assets without having to physically dispatch personnel to individual locations. This platform would also

provide potential additional utility to the company by dramatically simplifying e-discovery and/or

regulatory compliance efforts in the collection of relevant electronic documents and emails from company

digital assets.

Justification Summary: Nearly all forensics and cybersecurity investigations involve some form of triage and imaging of

electronic assets in a timely fashion, especially those that are currently in use. In the case of a suspected

malware infection, having a remote method of capturing or even previewing the contents of a hard disk or

volatile memory without having to physically be onsite would be invaluable in shaping the proper

response.


Alternatives:

In the past, the Con Edison Corporate Security team has conducted forensic and cybersecurity

investigations by deploying investigators to the physical device(s) affected and manually

removing the hard drive from the powered-down device before making a forensic image of the

drive, or by inserting an external drive containing forensic software to the device in order to make

a “live” image of the volatile memory and/or the contents of the hard drive while the device was

still powered on.

Risk of No Action:

Using either method outlined above, the acquisition of the relevant evidence would necessarily be

delayed by the time required by investigators to reach the various device locations (including time

needed to contact and coordinate with the appropriate parties governing physical access to the

locations) and setup their equipment. For cybersecurity investigations, this introduces an

45

operational liability since it is vital to capture the contents of volatile data before it can be

overwritten by running processes on the device (particularly when the device is in use). In cyber-

attacks involving “zero-day” APT-style malware, this data is the best and frequently only

evidence an investigator has access. The risk of not capturing such data immediately, therefore, is

the potential loss of key evidence that could be used to identify attackers and study their methods

of intrusion. Additionally, not having such data would make identifying the types and quantity of

company information lost during an intrusion exceedingly difficult.


In addition to reducing response times, having an enterprise forensic and cybersecurity platform

would allow Corporate Security to conduct covert investigations on company employees (i.e.

inappropriate use of company assets, employee harassment claims, etc.) without alerting the

subjects, often while they are using the asset. In addition, it would also allow the collection of

forensic evidence from devices in use by company employees without disrupting their day-to-day

functions.


The quote for an enterprise forensic and cybersecurity software suite and services needed to

implement the platform on the company network breaks down as follows:


Not applicable.


Not applicable.

Basis for Estimate:

Cost estimates for deploying an enterprise level forensic and cybersecurity platform in the Con

Edison network environment was provided by a software vendor for a “medium” sized

configuration (from 2,001 – 10,000 “endpoint nodes”).


Historical Spend


Year (O&M only)

Forecast

2014

N/A N/A N/A N/A N/A $143



EOE Actual 2010 Actual 2011 Actual 2012 Actual 2013 Historic Forecast

46

Year (O&M only)

2014

Labor N/A N/A N/A N/A N/A $0 M&S N/A N/A N/A N/A N/A $140 A/P N/A N/A N/A N/A N/A $0 Other N/A N/A N/A N/A N/A $0 Overheads N/A N/A N/A N/A N/A $3

Total N/A N/A N/A N/A N/A $143

Request ($000):

Request

2015

Request

2016

Request

2017

Request

2018

Request

2019

$0 $0 $0 $0 $0

aRequest by Elements of Expense

EOE 2015 2016 2017 2018 2019

Labor $0 $0 $0 $0 $0 M&S $0 $0 $0 $0 $0 A/P $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 Overheads $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0

a All contingencies were developed in accordance with the Con Edison “Estimating Cost Contingency” Guidelines.

47

X Capital

O&M

2014 – Finance, Rate Engineering

Project/Program Title Gas Rate Design and Analysis Systems Enhancement

Project Manager Margaret Lenz

Project Number 1XC9804

Status of Project Not Started

Estimated Start Date January 2014

Estimated Completion Date September 2016

Work Plan Category Strategic

Work Description:

The Gas Rate Design and Analysis Systems project, known as the Gas Customer Usage System (Gas

CUS), included the replacement of a flat file mainframe system with server-based database technology

and enhanced gas bill impact reporting. Gas CUS replaced a mainframe system that relied on an

inflexible, obsolete reporting software with user-friendly access desk-top tools. The previous project

covered the building of Gas CUS.

This Enhancement project addresses additional gas rate case systems enhancements and reporting

requirements that were outside the scope of the build project:

special reporting to support dual fuel and other non-firm service offerings

enhancements to bill impact process to further eliminate reliance on obsolete, unsupported code

updates to the Dynamic Load Shaping system (DLS) to incorporate gas billing and/or gas interval

data input systems, when available

The high level schedule covers approximately three years from January 2014 through September 2016.

Justification Summary:

Non-firm sales and revenue analyses rely on a series of detailed, monthly, mainframe, hardcopy reports,

that are produced in at least five separate report formats. Rate Engineering analyzes information in these

reports to provide a basis for much of the non-firm revenue data used in rate cases and monthly closings.

In addition, the production of the monthly mainframe downloaded sales reports is a step in the bill impact

process that relies on obsolete code. This obsolete code is no longer supported, and there are few IT

experts available to make modifications to reports or to deal with any changes to reporting.


Alternatives:

There are no cost-effective alternatives other than maintaining the status quo. Given the

importance of these reports to rate case preparation, there is real concern about whether these

mainframe reports can meet the increasing gas service analysis demands in a dynamic regulatory

environment.

48

Risk of No Action:

These mainframe reports rely on information from sources that have been, or are now, in the

process of being replaced or consolidated in other corporate projects (e.g., revenues in RevStat

and traction systems are now in RevStat DB). Absent the redesign and replacement of these

reports, the shortcomings will have a cascading effect, requiring more off-system analysis and

offline data manipulation, both of which are error prone.


Rate Engineering has achieved benefits (such as being able to work more efficiently) from past

information technology developments that provided the department with access to more

standardized information for rate case analyses. As a result, the department was able to support

increased regulatory activity over the years without having to increase staffing. The department

expects to experience continued benefits as additional functionality is incorporated into these

established platforms.

This system enhancement effort is an important step in eliminating many of the time-consuming

steps associated with the multiple downloads and inconsistent file formats associated with the

system in its current state. The enhancements will continue to streamline the bill impact process,

and will result in more thorough scenario analyses.

The CUS system effort has benefits beyond those already discussed:

The architecture design and process review has increased scrutiny of the complex coding

utilized for standardization of consumption storage in CUS, resulting in an update of this

logic and a process for ongoing review.

The choice of Business Intelligence (BI) platform may better leverage revenue and other

data stored on the same platform for analysis and reporting.

Multi-department review has led to a better understanding of some of the more complex

logic (e.g., aligning usage by trips and use of service point to align sales by premises)

and its uses in other analyses.


This project is expected to cost $600 thousand over a period of three years starting in 2014. Costs

were determined based on the actual cost of two contractor programmers currently on board

supporting other information technology development related to Dynamic Load Shaping and

Customer Usage System Enhancements. As the effort required for these two ongoing efforts

subside, these contractors will transition over in 2014 to Gas Rate Design and Analysis Systems

Enhancement in order to leverage contractor experience in building a standardized platform for

all companies and commodities. This effort will then be supported by one contractor in 2015 and

2016.


Rate Engineering analyzed the mainframe dual fuel reports, focusing on current requirements

rather than recreating existing reporting. Because of the complexity and age of the source code,

reengineering analysis and parallel testing was also employed. This enhancement project can

leverage work already completed.

The downloaded monthly sales report is a series of monthly snapshot reports of usage and

revenue information. The inflexibility of the coding has resulted in minimal changes over time.

49

User analysis will dictate the current requirements (billing only or billing and revenue

information) and timing of the reports, which in turn will determine the report source.

SSRS, a reporting tool by Microsoft, will be used to create reports from a data warehouse that the

BI group developed.

Currently, the DLS system continues to extract gas billing information from mainframe files.

Updates to DLS will require an interface to move data from CUS to the DLS system. Updates to

DLS anticipate the consolidation of gas interval data into a single warehouse.


CECONY and ORU have different legacy billing platforms, and Rate Engineering had parallel

but not identical mainframe systems for electric and gas usage storage. The CUS platform is now

standardizing customer usage and rate design analysis across companies and services.

This is an enhancement to the Gas Rate Design and Analysis System and addresses added scope.

Rate Engineering’s strategic systems plan is to develop an integrated system that will improve

analysts’ ability to access rate case information. Where possible, Rate Engineering is replacing all

systems that rely on obsolete coding.

Key elements include:

replacement of two mainframe systems—Load Study System and its companion demand

analysis reporting system with DLS, a modular load research and sample design system

replacement of an obsolete mainframe system with CUS

integration of CUS, DLS and rate design/bill comparison pricing systems, specifically

BillCalc

Basis for Estimate:

Funding was determined based on the cost of two contract programmers in 2014 and one

contract programmer in 2015 and 2016 including contingency and escalation.


Historical Spend


Year (O&M only)

Actual

2013




Year

Actual

2013

50

(O&M only)

Labor

M&S

A/P

Other

Total

Request ($000):

Request

2014

Request

2015

Request

2016

Request

2017

Request

2018

$275 $200 $125

aRequest by Elements of Expense

EOE 2014 2015 2016 2017 2018

Labor

M&S

A/P $275 $200 $125

Other

Overheads

Total $275 $200 $125

a All contingencies were developed in accordance with the Con Edison “Estimating Cost Contingency” Guidelines.

51


2015-2019 ELECTRIC CAPITAL FORECAST

2015 2016 2017 2018 2019 5 Year Total

Electric T&D

System and Transmission 60,700 87,500 123,575 135,690 91,250 498,715

Substations 181,345 261,442 303,658 309,553 226,420 1,282,418

Distribution 780,624 826,070 820,319 833,239 823,447 4,083,699

Sub-total Electric T&D 1,022,669 1,175,012 1,247,552 1,278,482 1,141,117 5,864,832

Electric Interference 96,569 92,589 87,780 52,701 32,277 361,916

Total Electric T&D 1,119,238 1,267,600 1,335,332 1,331,183 1,173,394 6,226,748

Electric Production 24,540 22,614 24,441 25,000 25,054 121,649

Shared Services

Facilities 58,137 62,504 65,498 41,502 41,500 269,141

IT Initiatives 69,859 151,236 158,890 126,567 80,357 586,910

General Equipment 61,245 65,847 68,372 65,665 66,678 327,806

Other 33,415 43,865 147,882 296,894 292,561 814,618

Total Shared Services* 222,657 323,452 440,642 530,628 481,096 1,998,475

Sub-total Capital 1,366,435 1,613,667 1,800,415 1,886,812 1,679,544 8,346,873

Storm Hardening** 270,781 308,081 92,010 56,000 50,999 777,871

Total Capital Expenditures 1,637,215 1,921,748 1,892,425 1,942,812 1,730,544 9,124,744

Note: *83% of Shared Services is allocated to Electric

**Storm Hardening details are included on the subsequent tabs for Electric T&D only

***Excludes Indian Point Contingency Projects

Forecast

Summary T&D Capital Plan

2015-2019 Capital Forecast($'s thousands)

1

DESCRIPTION 2015 2016 2017 2018 2019 5 Year Total

Distribution Orders Automation Enhancements 300 300 300 300 400 1,600

Outage Scheduling System Re-Write - 2,500 500 - - 3,000

TOTAL - WORK MGMT SYSTEMS 300 2,800 800 300 400 4,600

EMS Continuance Ecc 200 - 200 300 300 1,000

AECC Replacement - EMS Video Wall - 850 - - - 850

ECC Video Wall Replacement (Bulk and DO Rooms) - - 1,025 840 - 1,865

EMS Replacement AECC and ECC - - - - 4,500 4,500

TOTAL - CONTINUANCE 200 850 1,225 1,140 4,800 8,215

Plant Information System - - - - 250 250

Cyber Security And NERC Compliance 400 500 500 500 500 2,400

Operations Network For EMS 400 600 200 200 300 1,700

TOTAL - OPERATIONS REQUIREMENTS 800 1,100 700 700 1,050 4,350

System Operation Enhancements 300 300 300 350 300 1,550

District Operator Task Managing 300 300 300 300 300 1,500

Operation Management System At Energy Control Center 400 400 450 450 300 2,000

TOTAL - DISTRICT OPERATIONS IMPROVEMENT 1,000 1,000 1,050 1,100 900 5,050

ECC Ups Battery Replacement - 250 - - - 250

ECC Ups Battery Replacement Room 1 - - - 350 400 750

ECC/AECC Facility Security 600 200 - 200 - 1,000

Computer Room Renovation 1,100 - - - - 1,100

TOTAL - FACILITIES/UTILITIES IMPROVEMENT 1,700 450 - 550 400 3,100

TOTAL - SYSTEM OPERATIONS 4,000 6,200 3,775 3,790 7,550 25,315

Transmission Feeder Failures 10,000 10,000 10,000 10,000 10,000 50,000

TOTAL - FAILURES 10,000 10,000 10,000 10,000 10,000 50,000

Farragut-Plymouth St - Uprate Feeders 32071, 32710 and 32078 3,500 8,400 3,300 - - 15,200

Vernon to Glendale - Upgrade One Section of 38Q03 - - 5,000 2,400 - 7,400

Dynamic Feeder Rating System 1,500 - - - - 1,500

TOTAL - LOAD RELIEF 5,000 8,400 8,300 2,400 - 24,100

Pipe Enhancement Program 18,500 20,000 20,000 20,000 20,000 98,500

Environmental Enhancements 1,700 1,750 1,800 1,800 1,800 8,850

TOTAL - ENVIRONMENTAL 20,200 21,750 21,800 21,800 21,800 107,350

Emergent Transmission Reliability 6,500 5,500 5,500 5,500 5,500 28,500

Transmission Fdr. Pipe Support at Queensboro Bridge 7,500 6,450 - - - 13,950

Astoria Interconnect for Feeder 34091 500 - - - 2,200 2,700

New Rainey to Corona Feeder (Result of Mothballing Astoria No. 4) 2,000 22,000 67,000 85,000 37,000 213,000

Joint Replacement Program 5,000 5,700 5,700 5,700 5,700 27,800

Dynamic Feeder Rating System - 1,500 1,500 1,500 1,500 6,000

TOTAL - RELIABILITY & FDR REPLACEMENT 21,500 41,150 79,700 97,700 51,900 291,950

TOTAL - TRANSMISSION OPERATIONS 56,700 81,300 119,800 131,900 83,700 473,400

-

SUB-TOTAL - SYSTEM & TRANSMISSION OPERATIONS 60,700 87,500 123,575 135,690 91,250 498,715

L-Line Splice and Dead End Assembly 2,900 - - - - 2,900

Overhead Transmission Restoration 2,000 2,000 2,000 2,000 2,000 10,000

TOTAL - STORM HARDENING 4,900 2,000 2,000 2,000 2,000 12,900

TOTAL - SYSTEM AND TRANSMISSION OPERATIONS 65,600 89,500 125,575 137,690 93,250 511,615

Transmission Interference

Relocate Pipes for Feeders 41 and 42/DUMBO 8,069 - - - - 8,069


2015-2019 Capital Forecast($'s Thousands)

Forecast

2


Small Capital Equipment Program 2,000 3,672 3,735 3,777 3,777 16,961

TOTAL - SMALL CAPITAL 2,000 3,672 3,735 3,777 3,777 16,961

CIP - Security Upgrades 1,800 999 1,000 1,000 1,000 5,799

Security Enhancements (Includes Other) 15,000 15,000 15,000 15,000 15,000 75,000

TOTAL - SECURITY 16,800 15,999 16,000 16,000 16,000 80,799

Greenwood: Replaced Overloaded Equipment (2015) 2,000 - - - - 2,000

Greenwood: Install Dueal Speed Fans On All 5 Banks - - 2,025 2,025 - 4,050

Inst.bkn 3n & Switch Feeder Connections At Greenwood Substation. - - 1,000 2,000 - 3,000

Replace Limiting TR7 At Corona #2 - - - - 5,000 5,000

Uprate Limiting Bus Sections At East 75th Street - - - 3,620 3,620 7,240

Install Additional Transformer Cooling TR2, TR4 At East 75th St - - - 750 750 1,500

Uprate Syn Bus Sections At West 65th Street - - 1,510 2,999 3,000 7,509

Install Additional Transformer Cooling TR1, TR3 at E. 75th Street - 400 857 399 - 1,656

Leonard St. - Uprate bus sections to achieve 300 hr rating of 4500 amps

(2015) 750 - - - - 750

Queensbridge: Replace Overdutied Disconnect Switches (2016) 1,001 1,000 - - - 2,001

East 179th Street - Install Water Spray on TR5 (2016) 500 500 - - - 1,000

East 179th Street - Install Fans for Limiting Bus, Breakers and Reactors

assoc. w/ TR 4 (2016) 750 750 - - - 1,500

Fresh Kills - PR.2ES7300 - Repl 33kv Fdrs Assoc Tr#21w (2016) 751 750 - - - 1,501

Fresh Kills 33kV - Install additional cooling for Transformer 22E by

replacing its radiators (2016) 500 1,878 - - - 2,379

Plymouth Street - Replace limiting equip. assoc. w/ TR5 (2017) 3,000 3,000 - - 6,000

Replace Limiting Bus at Plymouth Street 500 2,500 2,500 - - 5,500

Establish Newtown/Glendale TR4 /TR5 (2019) 500 27,999 77,000 90,999 13,000 209,499

Emergent Load - 1,101 1,100 1,100 1,100 4,401

Parkchester Substation Install 4th Transformer - - - - 5,000 5,000

Parkchester 1 - Install Additional Cooling on Banks 3S & 4S - - - 750 910 1,660

Hellgate S/S - Additional Cooling - 1,600 1,599 - - 3,199

East 179th Street: Switchgear And Bus Replacement (2020) 10,000 10,001 10,001 10,000 10,000 50,002

TOTAL - LOAD RELIEF 17,252 51,479 100,591 114,643 42,381 326,347

Area Substation Reliability And Auto Ground Circuit Switchers 8,311 10,480 10,685 10,776 10,766 51,018

Astoria East-34051/34052 Reactor Pad Refurbishment 7,500 3,200 - - - 10,700

Breaker - Capital Upgrade Program 7,000 8,715 8,836 8,916 8,916 42,383

Buchanan - Y94 Upgrade to Solid Dielectric - 11,500 9,000 6,000 - 26,501

Category Alarms - 3,000 3,000 3,000 3,000 12,000

Condition Based Monitoring Equipment 227 275 279 281 281 1,343

Switchgear Enclosure Program - 500 499 500 500 1,999

Arc Flash Hazard Mitigation - 1,000 1,000 1,000 1,000 4,000

Corona - Disconnect Switch Replacement Program - 3,500 3,500 3,500 3,500 14,000

Jamaica - Install Additional Breakers in Bus Section 2E and 3W - 5,000 4,999 - - 9,999

Tejas RTU Replacements - 1,000 1,000 1,000 1,000 4,000

DC System Upgrade Program 3,438 2,994 5,678 4,637 5,900 22,647

Disturbance Monitoring Equipment - 138kv 3,105 5,503 6,498 6,500 6,499 28,105

Disturbance Monitoring Equipment - 345kv 8,003 - - - - 8,003

East River: Station Upgrade 1,453 4,000 4,000 4,000 - 13,453

Facility Improvement Program 4,000 6,052 6,129 6,180 6,311 28,672

Fire Suppression Program 4,555 5,995 6,551 6,636 6,645 30,382

GE HMI Replacement - 1,000 1,000 1,000 1,000 4,000

High Voltage Test Sets 1,150 4,585 4,643 4,682 4,682 19,742

Reinforced Ground Grid 1,454 1,605 1,625 1,639 1,639 7,962

Relay Modifications Program 5,400 9,750 9,750 9,749 9,750 44,399

Replace/Retrofit Overdutied 13/27kv Circuit Breakers 11,000 10,500 10,500 10,500 10,500 53,000

Roof Replacement Program - 3,026 3,065 3,090 3,090 12,271

Stabilization of Pothead Stand Supports - 1,010 2,001 2,862 2,862 8,735

Transformer Replacement Program 23,102 25,000 23,317 24,354 24,354 120,127

U-Bushing Replacement Program 2,300 3,000 3,000 3,000 3,000 14,300



Forecast

3




Forecast

Willowbrook - Install new dummy breaker positions 1,000 - - - - 1,000

Ramapo Surge Arrestors - 764 764 764 - 2,292

TOTAL - RELIABILITY 92,998 132,954 131,321 124,567 115,195 597,035

EH&S Risk Mitigation (OWS, Moats) 9,804 9,999 4,680 4,739 4,739 33,961

Pumping Plant Improvement 4,000 7,250 7,250 7,250 5,750 31,500

TOTAL - ENVIRONMENTAL 13,804 17,249 11,930 11,989 10,489 65,461

Failed Transformer Program 30,000 30,000 30,000 29,999 30,001 150,000

Various - Failed Equipment Other Than Transformer Program 7,502 7,500 7,500 7,500 7,500 37,502

TOTAL - FAILURES 37,502 37,500 37,500 37,499 37,501 187,502

Technology Improvements 989 1,087 1,081 1,077 1,077 5,311

Obsolete Circuit Switcher Replacement - 1,500 1,500 - - 3,000

TOTAL - OTHER 989 2,587 2,581 1,077 1,077 8,311

SUB-TOTAL - SUBSTATION OPERATIONS 181,345 261,442 303,658 309,553 226,420 1,282,418

STORM HARDENING PROGRAM 94,950 94,000 42,000 11,000 10,999 252,950

TOTAL - SUBSTATION OPERATIONS 276,296 355,442 345,658 320,553 237,419 1,535,368

4

Description 2015 2016 2017 2018 2019 5 Year Total

New Business Capital 155,000 153,000 153,000 153,000 153,000 767,000

Meter Installation 19,459 19,000 19,000 19,000 19,000 95,459

Total - New Business 174,459 172,000 172,000 172,000 172,000 862,459

Primary Cable Replacement (OA's) 63,626 63,536 63,424 63,426 63,418 317,430

Overhead 31,108 31,108 31,108 31,108 31,108 155,540

Temporary Services (incl. conduit) 38,921 38,921 38,921 38,921 38,921 194,605

Street Lights (incl. conduit) 20,072 20,072 20,072 20,072 20,072 100,360

Transformer Installation 32,296 32,296 32,296 32,296 32,296 161,480

Secondary Open Mains 133,851 135,000 135,000 135,000 135,000 673,851

Targeted Primary DBC Replacement 500 1,421 1,424 1,435 1,444 6,224

Total - Emergency Response / Replacement 320,374 322,354 322,245 322,258 322,259 1,609,490

System Reinforcement

Part of Turtle Bay (15 MW) - - 3,059 - - 3,059

Part of Pennsylvania (74 MW) to create Midtown West network 8,000 3,000 - - - 11,000

Part of Richmond Hill/Brownsville (30MW) 6,000 3,000 - - - 9,000

Part of Cooper Square (15 MW) 10,000 - - - - 10,000

Cable Crossing (XW Reiverdale & BQ Flushing) 1,973 13,874 12,000 5,500 2,000 35,347

59th Street Bridge Crossing 7,600 7,600 - - - 15,200

179th St Area Substation Reconstruction 500 500 500 500 500 2,500

Part of Wainwright (6 MW) - - - 3,514 3,588 7,102

Part of Ridgewood/Brownsville to Glendale (85 MW) - 16,500 33,000 36,000 21,000 106,500

Total - Load Transfers 34,073 44,474 48,559 45,514 27,088 199,708

Primary Feeder Relief 12,185 13,755 13,818 14,025 14,000 67,783

Network/Non Network Transformers Relief 13,000 14,839 15,987 16,279 16,517 76,622

NonNetwork Fdr Relief (Open Wire) 4,300 5,467 5,512 5,658 5,778 26,715

Overhead Transformer Relief 2,635 2,126 2,162 1,343 1,377 9,643

Secondary Main Relief 2,000 2,589 2,595 2,272 2,278 11,734

Total - Base Growth / Relief 34,120 38,776 40,074 39,577 39,950 192,497

Osmose (C Truss) 1,627 1,401 1,412 1,740 1,778 7,958

Aerial Cable Replacement - 925 932 957 978 3,792

#4,#6 Self Supporting Wire - 1,177 1,188 1,218 1,245 4,828

Oil Minders 458 650 663 681 699 3,151

HiPot 935 858 866 888 907 4,454

PILC 10,656 12,000 12,000 10,000 8,000 52,656

Vented Manhole Cover 2,000 8,250 8,250 8,250 8,250 35,000

4 kV UG Reliability 176 1,682 1,697 1,741 1,778 7,074

Underground Secondary Reliability Program 30,164 41,652 41,650 48,655 55,660 217,781

Transformer Vault Modernization 6,684 13,656 13,664 13,683 13,697 61,384

Overhead Secondary Reliability Program 112 - - - - 112

Remote Monitoring System 3rd Generation 2,500 2,563 2,629 2,705 2,782 13,179

Pressure, Temperature and Oil Sensors 5,125 7,500 7,500 7,500 7,500 35,125

Grounding transformers 250 - - - - 250

Shunt reactors 361 2,500 2,500 2,500 2,500 10,361

ATS Installation USS Reliability XW - 669 670 674 678 2,691

URD Cable Rejuvenation/Fault Indicator - 300 - - - 300

Total - Reliability 61,048 95,783 95,621 101,192 106,452 460,096

System Reinforcement IT Projects 14,305 12,507 4,174 12,000 12,000 54,986

Work Management System 3,000 - - - - 3,000

Total - System Reinforcement 146,546 191,540 188,428 198,283 185,490 910,287

Meter Purchase 12,000 12,000 12,000 12,000 12,000 60,000

Transformer Purchase 120,000 125,000 121,000 124,000 127,000 617,000

Modernization and Other 3,245 3,176 3,252 3,289 3,289 16,251

Unit Substation Load Relief - - 1,394 1,409 1,409 4,212

USS Site Improvement for SPCC Plans 4,000 - - - - 4,000

Total - Distribution Substation 7,245 3,176 4,646 4,698 4,698 24,463

Sub-Total Distribution 780,624 826,070 820,319 833,239 823,447 4,083,699

Forecast

Electric Operations


5

Description 2015 2016 2017 2018 2019 5 Year Total

Forecast

Electric Operations


Switches For Network Redesign 29,106 30,984 - - - 60,090

460V Network Protector Replacement 3,750 14,460 - - - 18,210

120/208V Non-Submersible Unit Replacement 4,374 23,239 30,000 30,000 25,000 112,613

Overhead Equipment Upgrades 15,000 12,394 13,000 13,000 13,000 66,394

Selective Undergrounding 87,000 78,281 - - - 165,281

Transformer Purchases 22,000 24,625 - - - 46,625

Total - Storm Hardening 161,230 183,983 43,000 43,000 38,000 469,213

Total Distribution 941,854 1,010,053 863,319 876,239 861,447 4,552,912

Total - Electric Interference 88,500 92,589 87,780 52,701 32,277 353,847

6

Description 2015 2016 2017 2018 2019

5 Year

Total

EH&S 3,942 - - - - 3,942

Control Systems 1,235 2,835 3,050 750 3,718 11,588

Boilers 10,845 10,770 8,147 8,900 - 38,662

Mechanical Equipment Replacement 821 6,039 712 5,581 1,923 15,075

Electrical Equipment 4,942 2,059 12,032 7,264 14,697 40,995

Structures 2,251 500 500 2,505 3,216 8,972

Waterfront - - - - 1,500 1,500

Roofs 504 412 - - - 916

Sub-Total Electric Production 24,540 22,614 24,441 25,000 25,054 121,649

Storm Hardening 2,050 20,500 - - - 22,550 Total Electric Production 26,590 43,114 24,441 25,000 25,054 144,199

Forecast

Electric Production

2015-2019 Capital Forecast

($'s Thousands)

7

Description 2015 2016 2017 2018 2019

5 Year

Total

Irving Place Re-Stacking 30,000 41,000 45,999 - - 116,999

Facilities Buildings & Yards - (Critical Infrastructure) 15,627 16,000 14,000 29,000 25,500 100,127

Facilities Buildings & Yards - (Roof Replacement Program) 3,001 3,000 2,997 10,000 11,000 29,998

Astoria East Yard 7,008 - - - - 7,008

Safety Environmental 2,501 2,504 2,501 2,502 5,000 15,009

Total - Facility Projects 58,137 62,504 65,498 41,502 41,500 269,141

Strategic IT Projects

Server Farm Infrastructure - Worth St. 14,900 4,999 10,001 10,000 - 39,900

Cyber Security 4,175 2,304 1,900 1,875 1,875 12,129

Scada Net - IR 1,232 1,692 750 750 750 5,174

CCTN Expansion - Fiber Projects 1,318 725 750 1,397 1,397 5,587

Desktop Infrastructure 1,362 782 782 703 703 4,332

Server Farm Infrastructure 1,301 - 1,200 1,500 1,500 5,501

CCTN Expansion - Mobile WiMAX Access Network 800 2,500 3,250 3,250 3,250 13,050

Business Systems Sustainability - Desktop OS Plan 149 1,225 650 560 560 3,144

Business Systems Sustainability - Server OS Plan 1,217 1,250 2,230 2,210 2,210 9,117

Business Systems Sustainability - Database Plan 935 1,165 775 1,230 1,230 5,335

New Technology 698 503 750 900 900 3,751

CCTN Modernization - Mapping System 248 125 125 125 125 748

CCTN Facilities Improvements 529 532 532 550 550 2,693

CCTN Modernization - Sonet Conversion 195 196 196 215 215 1,017

Computer and Communications Accounting System 112 113 113 - - 338

Enterprise Applications - 477 525 325 325 1,652

Collaboration Tools/ Enterprise Software Collaboration - 512 250 900 900 2,562

Data Center Renovation Network Operation Center - 550 550 550 1,650

IT Asset Management - 281 281 225 225 1,012

Portable Emergency Transformers - 195 - - - 195

Astoria Warehouse Wireless And Hardware Upgrade - 539 - - - 539

Metaphase Replacement - Phase 2 (Project Explorer) 548 183 183 183 - 1,097

AutoCad (Engineering Computer Upgrades) 695 731 731 731 - 2,888

Compass Replacement 248 1,600 600 - - 2,448

Upgrade Contractor Oversight System (COS) - 450 250 - - 700

Construction Survey Mapping Repository 497 750 250 - - 1,497

Misc. IT Projects - Construction - 1,500 1,800 1,550 1,150 6,000

Maximo Upgrade Phase 0 and project Construction 164 - - - - 164

Conduct Maximo Upgrade For Steam 1,312 - - - - 1,312

Conduct Maximo Upgrade For SSO 1,805 - - - - 1,805

Customer Service System Sustainability 7,500 10,000 10,000 10,000 10,000 47,501

Off System Billing 994 1,000 1,001 1,000 - 3,995

Steam Billing System 273 - 1,900 289 275 2,737

Meter Data Management System (MDMS) Expansion 800 2,571 2,571 500 500 6,941

Con Edison Website Redesign 5,000 10,000 10,000 5,000 - 30,000

Call Center Improvements - 2,040 565 - - 2,606

Cycle Route Reduction - 2,750 2,750 2,750 - 8,250

Environmental Management Information System (EMIS) 600 - - - - 600

EHS Chemlab Lims Laboratory Information Mgmt System 1,208 - - - - 1,208

Vehicle Collision Mitigation Program - 2,000 2,000 - - 4,000

Mapping Systems Replacement with GIS-based Mapping Application 5,000 56,000 54,000 47,000 37,000 199,000

eLearning - L&I 596 600 600 600 600 2,996

PeopleSoft Upgrade - HR - - - - 2,525 2,525

Enterprise Security Software Suite 4,899 7,980 8,144 4,378 4,600 30,000

Security Camera Rollout 345 345 344 344 344 1,721

Recruitment Module - 3,800 2,550 - - 6,350

Emergency Operation Center Incident Information Management System - 320 125 124 121 691

System Emergency Assignment (SEA) Program Enhancement - 347 344 342 337 1,370

Advanced Storm Crew Management and Logistics - 801 605 602 598 2,606

e-Training Enhancements - Compliance - 500 - - - 500

Occ.health Revamp Medical Line To Automate To A New Data Platform - 725 805 353 141 2,024

Software Delop For NYISO Transmission Owner Data Reporting System 1,440 1,569 - - - 3,010

Data Analysis and Reporting Tool - 1,500 1,100 - - 2,600

Forecast



($ Thousands)

8

Description 2015 2016 2017 2018 2019

5 Year

Total

Forecast



($ Thousands)

Allegro System Upgrade 1,987 - - - - 1,987

Power Tax Project 1,092 - - - - 1,092

Customer Usage System Enhancements 199 200 - - - 399

Oracle Upgrade - 1,000 11,750 12,250 - 25,000

Electronic Appropriation Project - 1,000 2,000 - - 3,000

Peoplesoft/HR Payroll Upgrade - - - 500 - 500

Gas Customer Usage Extract System - 275 200 125 - 600

Bill Impact Enhancements - 100 400 200 200 900

Power Plant Application Upgrade - 208 1,031 829 - 2,068

Budget System Enhancements 993 3,100 2,500 1,000 - 7,593

BI Enhancements - 3,100 2,500 2,000 1,000 8,600

Revenue Analysis - 3,000 2,000 - - 5,000

Corporate Accounting Request Application - 300 500 300 1,000 2,100

Rate Case Enhancement Project - - 300 300 600

EBS Server Upgrade - 800 - - 1,000 1,800

Treasury Workstation Replacement / Upgrade - - 1,500 - 1,500

Compliance Tracking and Assessment - Law - 5,613 - - - 5,613

Case Management System - Law 2,494 - - - - 2,494

IGS AP and Reporting Interfaces - 880 880

Transportation Customer Information System - 598 2,791 1,551 601 5,542

Gas Transaction System Replacement Phase 0 - 885 - - - 885

Gas Transaction System Replacement/Upgrade - - 4,390 3,001 800 8,191

Total - Strategic IT Projects 69,859 151,236 158,890 126,567 80,357 586,910

Other

Upgrade Cng Fuel Stations 3,277 230 - - - 3,507

Upgrade Of Vehicle Fuel Stations 2,184 2,800 - - - 4,984

Phase 0 - Replace VMS System - 800 - - - 800

Cng Fuel Station Project - Bruckner And Victory Blvd - 1,000 3,000 6,000 - 10,000

Electric Vehicle Charging Infrastructure Project - 3,000 3,000 4,000 - 10,000

AMR - Bronx West 17,980 19,250 17,950 13,000 19,750 87,930

AMR - Strategic/Hard to read meters 1,625 1,500 1,500 1,500 1,500 7,625

Mandatory Hourly Pricing Expansion - 2,134 2,083 2,043 1,962 8,222

Install Telecom Facilities 348 350 350 350 350 1,748

AMI - System 2,000 9,300 60,000 135,000 134,500 340,800

AMI - Electric Meters - - 49,800 122,800 122,300 294,900

AMI - Gas Meters - - 10,200 12,200 12,200 34,600

AMI - Pilots 6,001 3,500 - - - 9,501

Total - Other 33,415 43,865 147,882 296,894 292,561 814,618

General Equipment

XM1 - Office equipment 845 845 845 845 845 4,223

XM2/13 - Vehicles and equipment 37,648 37,901 37,901 37,901 38,658 190,008

XM3 - Stores equipment 410 416 416 416 424 2,082

XM5/15 - Lab & Test equipment 5,429 5,634 5,634 5,634 5,747 28,077

XM6 - Construction equipment 6,125 6,703 6,703 6,703 6,837 33,071

XM7 - AV equipment 1,193 1,193 1,193 1,193 1,193 5,963

XM8 - Communications equipment 1,794 3,020 3,306 2,841 2,841 13,801

XM10 - Computer equipment 7,799 10,135 12,374 10,134 10,134 50,576

Total - General Equipment 61,245 65,847 68,372 65,665 66,678 327,806

Sub-Total Shared Services 222,657 323,452 440,642 530,628 481,096 1,998,475

Telecommunications Storm Hardening 2,682 2,601 - - - 5,283

Facilites Storm Hardening 4,969 4,997 5,010 - - 14,976

Total - Storm Hardening 7,650 7,598 5,010 - - 20,258

Total CECONY Shared Services Capital 230,307 331,050 445,652 530,628 481,096 2,018,733

9

Documents

The Joint Proposal adopted by the Public Service