Capital Investment Planning Workshop report by Patrick Brown

Capital Investment Planning Workshop Workshop Objectives To facilitate a coordinated and collaborative working session with the Delivery and Operations Services (DOS) extended leadership team to identify, evaluate, and prioritize future opportunities for capital investments across Customer Operations & Services (COS) and Grid Modernization (GM). Specifically, capital investment opportunities were reviewed which seek to impact the DOS organization by: • enabling enhanced efficiencies and continuing to drive value across the organization • providing O&M cost savings in 2015 and beyond • resulting in new revenue and/or new growth

Workshop Summary A total of 162 capital investment ideas were submitted by leaders within COS and GM – 152 were submitted in advance of the workshop and the remaining 10 initiatives were identified day‐of as a part of the brainstorming session. Workshop participants were tasked with prioritizing ideas by completing two exercises, “King/Queen for a Day” and “Quick Wins”. The responses to those exercises was aggregated and analyzed to identify the most tangible, high‐value capital investment opportunities for the DOS organization.

Idea Scoring Exercise

King / Queen for the Day Exercise

The objective of the scoring exercise was to gain a sense of each participant’s ‘gut feel’ of each idea. Participants were given handouts which included the list of all ideas collected prior to the workshop and then asked to score each idea on a scale of 1‐5 based on 3 metrics: Financial Value, Non‐Financial Value and Ease of Implementation. Scores were then aggregated within the three categories and plotted on a PICK Chart. Those that fell into the ‘implement’ quadrant of the PICK chart were then reviewed with the team.

The “King/Queen for a Day” exercise provided workshop participants the opportunity to provide their perspective on the top initiative(s) to be implemented were they leading the DOS organization, free from financial restraints or logistical challenges. Participants were asked to discuss with the group what their top initiative(s) would be and why.

Implement Quadrant

PICK Chart

= Capital Investments = Investments chosen during King/Queen exercise

1.00

King / Queen For The Day Selections 1.00

Challenge

Implement

2.00

3.00

70 48

2.00 1

114 66 2 110 55 128 8 52

4.00

77 4

115 78

135 134

5.00

Kill

Possible

3.00 1.00

2.00

3.00

4.00

5.00

1.00

8353 79

132 57

2.00

49 5 121 74 120

40 54

124 42

112 125 15

35 36

122

39 116

123

41 136 11372109 14 136 Grp 27 38 46 47 107 111 6 152 Grp

126 3 82162 65 45 80

117

10 71 13 17 63

3.00

PICK Chart Methodology

PICK Chart ‐ Implement Quadrant

PICK Chart: A PICK chart is a lean six sigma tool used to help identify an organization’s most useful opportunities. Based on an idea’s score, it is placed on a 2x2 grid which is comprised of the following four quadrants: • Implement – easy implementation with high payoff • Possible – easy implementation with low payoff • Challenge – complex implementation with high payoff • Kill – complex implementation with low payoff

Capital investment ideas placed in the Implement quadrant of the PICK chart represent those investment opportunities with the most favorable scores relative to value and implementation ability. These opportunities represent the quick wins and could be used to prioritize investment decisions.

Note: The PICK chart above is based on aggregated individual data from the scoring exercise and does not adjust for scoring participation.

Prioritization Index 100

∗

Assigns a score for each potential investment based on perceived value and ease of implementation

Top 25 Capital Investments Using the Index

Hardware & Telecom, 12%

Fall Into Seven Categories Electric Vehicles, 8%

‐ Distribution Infrastructure

T&D Tools, 12%

‐ AMI

AMI, 28%

Hardware & Telecom, 12%

‐ Distribution Automation ‐ T&D Tools ‐ Hardware & Telecom Top 25 Capital Investments Using the Index

‐ Electric Vehicles

Distribution Distribution Automation, Infrastructure, 24% 20%

Rank

INDEX

Category

Item

3.79

135

T&D Tools

Transmission Tools: LLBH/Hot Sticks, Slings/Rigging Equipment, Portable Power Tools, Battery Operated Power Tools

3.67

134

T&D Tools

C & M Climbing Tools: Safety equipment ‐ Belt, hooks, buck squeeze, pads, tool bag, tool pouch,

AMI

Indiana AMI: Begin planning phase in Sept 2014 with Commit gate in Jan 2015. 2014 spend for Planning would be capital

AMI

Car West AMI ‐ added scope: Add scope of 20k meters to existing project and to 2014 plan. (Dependency on timely approvals including DOA and Itron ability to deliver)

Distribution Infrastructure

Hydraulic Reclosers: Replace hydraulic reclosers with low/no maintenance solid dielectric/vacuum bottle reclosers

3 4 5

2.65 2.52 2.43

2 1 48

T C

2.43

Distribution Infrastructure

OH Line Sensors: Issue analysis and resolution for existing line sensors; CM, training, BPM to sustain (500 sensors that are not currently functioning …) O

2.36

AMI

Marietta AMI Change out: Remove 2300 Echelon/Ambient meters and replace with Itron/Cisco standard solution

Distribution Automation

2.29

2.22

114

Hardware & Telecom

Additional screens and technology for storm centers: As we leverage more technology in the storm centers, we will need more screens to display the information. A

2.22

Electric Vehicles

Expand the fleet of plug‐in vehicles: Use as pool vehicles for employees travelling locally on business E

2.19

Distribution Automation

DA Fla: Accelerate DA Florida project currently slated to start in 2015. 2014 proposed scope: Install 30 electronic reclosers in targeted locations. D

2.18

AMI

Additional Meter Coverage: Swap out non‐mesh meters in Ohio where there is weak communications structure.

2.01

Fleet

Fuel System Card Readers: Automated systems for no more than 19 that track fuel consumption for underground on‐site storage tanks currently in use in Midwest

Distribution Automation

CDO Tie Line Projects with Automation: Add tie lines to increase switching options and flexibility. Proposed 2014 scope: Pull highest value project forward.

F 14

1.99

1.98

Distribution Automation

Automatic disconnection of distributed generation (smart inverters):

Distribution Infrastructure

Replace LineTracker units with Tollgrade sensors: Replace aging LineTracker units with Tollgrade sensors in DEC and extend to other jurisdictions (I&V Team idea)

A 16

1.96

Rank

INDEX

Category

Item

1.95

AMI

AMI project optimization in Car East and Fla: Scope addition to existing Car East / Florida AMI project to continue RF mesh optimization due to foilage increase since mesh deployment.

Distribution Infrastructure

Neutral current CT’s on fixed (un‐switched) cap banks : It is my understanding Duke Midwest have been leveraging a Cooper “Outage Advisor” neutral current CT’s on fixed (un‐switched) cap banks for years to help proactively identify questionable or failed capacitors/blown fuses. Duke West, Duke Florida and Duke Progress has never had the funding to add neutral CT monitoring on their fixed cap banks but I understand Duke Florida is considering such a project this year utilizing the Tollgrade sensor. My suggestion would be to add Communicating neutral CT’s on Duke Florida, Duke West and Duke Progress fixed capacitor banks at a cost of around $700‐$1000 each plus labor (price depends on vendor and technology).

AMI

Kentucky AMI Planning: Begin planning phase in ??? 2014 with Commit gate in???. 2014 spend for Planning would be capital

1.92

1.86

1.84

Distribution Infrastructure

Neutral current CT’s on switched cap banks: Both Duke West and Duke Midwest have been leveraging neutral current CT’s of switched cap banks for years to help proactively identify questionable or failed capacitors/blown fuses. Duke Florida and Duke Progress has never had the funding to add neutral CT’s but their CBC is equipped with the neutral CT input. My suggestion would be to add neutral CT’s on Duke Florida and Duke Progress switched capacitor banks at a cost of around $150 per site, plus labor N

1.74

110

Hardware & Telecom

Duke WLAN Expansion at Op Centers: Increase Duke Wireless LAN coverage at Op Centers (prepares us for increased use of mobile devices), including dock areas. D

Distribution Infrastructure

Tollgrade current sensors behind non‐communicating hydraulic reclosers: Both Duke West and Duke Midwest have been leveraging Tollgrade current sensors behind non‐communicating hydraulic reclosers for the past 1‐2 years. I understand Duke Florida is considering such a project this year utilizing the Tollgrade sensor. I suggest Duke Progress be given the opportunity to leverage this proven sensing technology at hydraulic recloser sites. The combination of FMS and Tollgrade sensors at hydraulic recloser sites can be a powerful solution

Hardware & Telecom

Purchase more ruggedized laptops : Purchase more ruggedized laptops that are truly made for field use and mobility now that smart phones will no longer be the norm for the company. Many employees I speak with think the company is going in the wrong direction with mobile technology and how it can help improve employee job performance in the field and response.

1.73

1.72

115

AMI

Move Forward MDM Work: Complete the Ohio Conversion and prepare for Indiana AMI rollout. M

1.72

Electric Vehicles

DE Fleet Charging Infrastructure: EV Charging Infrastructure to support DE fleet vehicles D

* Multiple capital investments grouped together based on equipment similarity and high correlation of participant scores

Top Capital Investment Rankings by Individual Using Index formula without "Scoring Participation" Robert Sipes

Randy Parks (Ron A)

ID 79

Category Fleet

Item Internet connectivity through entire garage: ability to connect to the internet no matter where you are within the garage Indiana AMI: Begin planning phase in Sept 2014 with Commit gate in Jan 2015. 2014 spend for Planning would be capital Kentucky AMI Planning: Begin planning phase in ??? 2014 with Commit gate in???. 2014 spend for Planning would be capital Additional Meter Coverage: Swap out non‐mesh meters in Ohio where there is weak communications structure. Fuel System Card Readers: Automated systems for no more than 19 that track fuel consumption for underground on‐site storage tanks currently in use in Midwest Veeder‐Root Systems: Automated system that monitor and track fuel tank levels to offer additional protection from potential tank leaks in underground fuel tanks . Reduce need for as frequent "sticking tanks' to measure inventory and increases accuracy of tank measurement

Index 21.54

AMI

Fleet

Fleet Management System : Software that assists with titling, licensing and registration Veg Mgmt Land Based Asset Mgmt System: Utilize LIDAR technology to develop a corridor approach, condition based VM maintenance program.

10.00

124

Software

147 148

T&D Tools T&D Tools

Transmission Line Level 1 Equipment: Magnetic Drill (DEF, DEMW) Transmission Line Level 1 Equipment: Light Duty Pole Jacks (DEF, DEMW)

10.00 10.00

154

T&D Tools

Substation Level Equipment: Infared Camera

10.00

ID 8

Category AMI

Index 21.54

AMI

Item Additional Meter Coverage: Swap out non‐mesh meters in Ohio where there is weak communications structure. Marietta AMI Change out: Remove 2300 Echelon/Ambient meters and replace with Itron/Cisco standard solution C & M Climbing Tools: Safety equipment ‐ Belt, hooks, buck squeeze, pads, tool bag, tool pouch, Transmission Tools: LLBH/Hot Sticks, Slings/Rigging Equipment, Portable Power Tools, Battery Operated Power Tools More accurate GIS model: Convert from X‐Y Coordinate system to a Latitude‐ Longitude based system for better accuracy of GIS model (this can be helpful in streamlining the design process, tracking/location/maintenance of GIS assets, and trouble shooting)

10.00 10.00 10.00 10.00

10.00

134

T&D Tools

135

T&D Tools

Data

Distributed Energy Resources

Duke sponsored/ owned PV farm in Florida: Potential location: former landfill site adjacent to I‐275 in St.Pete. There is a large T/D/Transmission substation adjacent to the site and advertising could be set up along I275 indicating how much renewable power is being generated in real‐time. This could be a partnership with Pinellas County as a “brown to green” initiative taking advantage of the large space covered by the former landfill. It would also serve as our test bed here in Florida for renewal integration and impact, so if the legislation does change to become more like NC, then we will be better educated on the impacts to our system (Purchase land or other contractual commitments could be executed in 2014, with other work later)

3.16

Distribution Infrastructure

3.16

Electric Vehicles

Fleet

House Power Panels: Replace current House Power Panels with standard breaker panel & meterbase Expand the fleet of plug‐in vehicles: Use as pool vehicles for employees travelling locally on business Facilities project mgmt: Identify a facilities major project requiring capital investments

6.31 6.31 3.16

3.16 3.16

Tony Adcock

ID Category 136 Grp T&D Tools

142 Grp T&D Tools

152 Grp T&D Tools

Keith Blanden

Item Index Relay Equipment: Megger MPRT 3 Phase Relay Test Set, CT Test Set Vanguard 3.73 EZCT 2000C, Enoserv RTS Key for Megger MPRT, Megger Battery Ground Fault Tracer 2461008, Megger Battery Impediance Tester ‐ Bite 2, Oscilloscope Tektronics THS‐720A Transmission Line Level 1 Equipment: Capstan Hoist/Good Rigging System, 3.73 Steel Pole Ladders (60), Conex Box for Storage, Wire Grips (12), Battery Operated Power tools (DEF, DEMW), Magnetic Drill (DEF, DEMW), Light Duty Pole Jacks (DEF, DEMW), Generator 4kw (DEF, DEMW), 60 Ton Press for line construction, dies (DEF, DEMW), Tool Barn to store tools and materials (25 x 25) ‐ DEMW Substation Level Equipment: DGA Monitor (Portable for Transformer Oil, Hot 3.73 Stick Tester, Infared Camera, Portable Oil Moisture Meter, Oil Moisture Tester, Phasing Sticks (Wireless 208‐88KV), SF6 Moisture Analyzer, Transformer Winding Resistance Tester, Oil Filter Press

162

Workforce

Add additional line construction resources to achieve capital workplan: 0

3.73

Distribution Automation

Automatic disconnection of distributed generation (smart inverters): 0

3.16

107

Hardware & Telecom

3.16

108

Hardware & Telecom

110

Hardware & Telecom

113

Hardware & Telecom

Computer Hardware and Bandwidth Upgrades : Improvement to existing computer performance and communication bandwidth to correct current poor performance. Printing Solution: Request a review by Corporate IT to determine if additional print servers or new printers are needed to overcome the slowness in printing jobs, especially in the Midwest. Duke WLAN Expansion at Op Centers: Increase Duke Wireless LAN coverage at Op Centers (prepares us for increased use of mobile devices), including dock areas. Tablets to support damage assessment application: We plan to adopt an application that contract damage assessors can access from their own device, but will likely need some additional devices for employees in DA roles.

ID 73

Category Fleet

76 77

Fleet Fleet

Fleet

Item Fuel System Card Readers: Automated systems for no more than 19 that track fuel consumption for underground on‐site storage tanks currently in use in Midwest Hydraulic Tools: Portable pin press, etc. ABC software module: Software that assists in design & development of training materials Fleet Management System : Software that assists with titling, licensing and registration Scheduling Too: A tool to help up schedule customer maintenance repairs

3.16

Index 100.00

100.00 100.00 100.00 100.00

Bob Dollar

Bob McCall

ID 13

Category Billing

Item Power Factor Billing: Begin calculating bills using data from the kVAR channel

Index 4.64

Customer Hardware

4.64

Distribution Automation

HOM ‐ DEO: Duke Energy take ownership of thermostats and capitalize the volume of units, plus install costs Expand DEP FMS type capabilities across the enterprise: Legacy Progress Energy’s DCC uses FMS to locate faults and communicate fault locations to dispatched crews. Over 83% of the time, the DCC is able to put a crew at a fault location within one span in less than 3 minutes. For the times when FMS cannot accurately locate the fault, Grid Engineers can do so with waveform data pulled in from FMS. Legacy Progress’ Account Managers frequently use the query functions of the FMS to provide accurate date/time/magnitude/duration of events for any interval of time up to five years’ worth of data. This system gives the Account Managers the tools to quickly and accurately provide pertinent event data to their customers without involving power delivery personnel. Legacy Progress PQ Engineers typically use the waveform data to analyze events and abnormal disturbances on the system.

Data

Distribution Infrastructure

107

Hardware & Telecom

110

Hardware & Telecom

154 155 156

T&D Tools T&D Tools T&D Tools

ID 133

Category T&D Tools

134

T&D Tools

135

T&D Tools

136 Grp T&D Tools

142 Grp T&D Tools

152 Grp T&D Tools

162

Workforce

Build Out Reporting Hubs: Build out additional reporting hubs to support cross‐DOS/T/G reporting. For example, move remaining outage‐related data (ITR/ETR, Cause Code, Truck info, etc) into OMS History Datamart; move core transmission work info from Cascade/Primavera/eMax into new reporting hub; House Power Panels: Replace current House Power Panels with standard breaker panel & meterbase Computer Hardware and Bandwidth Upgrades : Improvement to existing computer performance and communication bandwidth to correct current poor performance. Duke WLAN Expansion at Op Centers: Increase Duke Wireless LAN coverage at Op Centers (prepares us for increased use of mobile devices), including dock areas. Substation Level Equipment: Infared Camera Substation Level Equipment: Portable Oil Moisture Meter Substation Level Equipment: oil Moisture Tester

4.64

2.51

2.51 2.51

2.51

2.51 2.51 2.51

Item Storage Area for WG Florida: New Hire Supplies ‐ restock tools, equipment, attire C & M Climbing Tools: Safety equipment ‐ Belt, hooks, buck squeeze, pads, tool bag, tool pouch, Transmission Tools: LLBH/Hot Sticks, Slings/Rigging Equipment, Portable Power Tools, Battery Operated Power Tools Relay Equipment: Megger MPRT 3 Phase Relay Test Set, CT Test Set Vanguard EZCT 2000C, Enoserv RTS Key for Megger MPRT, Megger Battery Ground Fault Tracer 2461008, Megger Battery Impediance Tester ‐ Bite 2, Oscilloscope Tektronics THS‐720A Transmission Line Level 1 Equipment: Capstan Hoist/Good Rigging System, Steel Pole Ladders (60), Conex Box for Storage, Wire Grips (12), Battery Operated Power tools (DEF, DEMW), Magnetic Drill (DEF, DEMW), Light Duty Pole Jacks (DEF, DEMW), Generator 4kw (DEF, DEMW), 60 Ton Press for line construction, dies (DEF, DEMW), Tool Barn to store tools and materials (25 x 25) ‐ DEMW Substation Level Equipment: DGA Monitor (Portable for Transformer Oil, Hot Stick Tester, Infared Camera, Portable Oil Moisture Meter, Oil Moisture Tester, Phasing Sticks (Wireless 208‐88KV), SF6 Moisture Analyzer, Transformer Winding Resistance Tester, Oil Filter Press

Index 10.00

Add additional line construction resources to achieve capital workplan

10.00

10.00 10.00 10.00

10.00

Rick Race

Jim Rainear

Will Lowder

ID 162

Category Workforce

Item Add additional line construction resources to achieve capital workplan

Index 100.00

AMI

21.54

Facilities

Marietta AMI Change out: Remove 2300 Echelon/Ambient meters and replace with Itron/Cisco standard solution Facilities: Mold remediation at Lancaster grew from $750K to almost $2M

Fleet

21.54

134

T&D Tools

135

T&D Tools

136 137 142

T&D Tools T&D Tools T&D Tools

Internet connectivity through entire garage: ability to connect to the internet no matter where you are within the garage C & M Climbing Tools: Safety equipment ‐ Belt, hooks, buck squeeze, pads, tool bag, tool pouch, Transmission Tools: LLBH/Hot Sticks, Slings/Rigging Equipment, Portable Power Tools, Battery Operated Power Tools Relay Equipment: Megger MPRT 3 Phase Relay Test Set Relay Equipment: CT Test Set Vanguard EZCT 2000C Transmission Line Level 1 Equipment: Capstan Hoist/Good Rigging System

ID 2

Category AMI

AMI

Distribution Automation

Distribution Infrastructure

OH Line Sensors: Issue analysis and resolution for existing line sensors; CM, training, BPM to sustain (500 sensors that are not currently functioning …)

6.31

ID 3

Category AMI

Index 21.54

AMI

Distribution Automation

Item AMI project optimization in Car East and Fla: Scope addition to existing Car East / Florida AMI project to continue RF mesh optimization due to foilage increase since mesh deployment. Kentucky AMI Planning: Begin planning phase in ??? 2014 with Commit gate in???. 2014 spend for Planning would be capital DMS operability in various modes: DMS is configurable and could be operated in different modes. Circuits have their unique characteristics and thus have unique volt‐var configurations. Examine existing functionality within the DMS applications (Alstom,Telvent) that would give us the ability and flexibility to operate IVVC in various modes simultaneously, such that the same operating model would not necessarily apply to all circuits

AMI

10.00

Customer Hardware

Marietta AMI Change out: Remove 2300 Echelon/Ambient meters and replace with Itron/Cisco standard solution HOM ‐ DEO: Duke Energy take ownership of thermostats and capitalize the volume of units, plus install costs

21.54

21.54 21.54 21.54 21.54 21.54

Item Index Indiana AMI: Begin planning phase in Sept 2014 with Commit gate in Jan 100.00 2015. 2014 spend for Planning would be capital Car West AMI ‐ added scope: Add scope of 20k meters to existing project and 10.00 to 2014 plan. (Dependency on timely approvals including DOA and Itron ability to deliver) Kentucky AMI Planning: Begin planning phase in ??? 2014 with Commit gate 6.31 in???. 2014 spend for Planning would be capital N‐Rel Smart Inverters: Modeling simulation of smart inverters working with N‐ 6.31 Rel's power hardware in the loop and Alstom's DMS

21.54 21.54

10.00

Tim Morgan (Brent G)

Jay Oliver (Hershell M)

ID 1

Category AMI

Item Index Car West AMI ‐ added scope: Add scope of 20k meters to existing project and 100.00 to 2014 plan. (Dependency on timely approvals including DOA and Itron ability to deliver) DA Fla: Accelerate DA Florida project currently slated to start in 2015. 2014 100.00 proposed scope: Install 30 electronic reclosers in targeted locations.

Distribution Automation

IVVC Burlington Pre‐Deployment: Pre‐Deployment of IVVC in Carolinas; BPM, 100.00 Modeling, CM, training development for full deployment

Distribution Automation

Distribution Infrastructure

Install regulators : accelerate IVVC locations and get the benefit of the regulator now Hydraulic Reclosers: Replace hydraulic reclosers with low/no maintenance solid dielectric/vacuum bottle reclosers OH Line Sensors: Issue analysis and resolution for existing line sensors; CM, training, BPM to sustain (500 sensors that are not currently functioning …)

Distribution Infrastructure

100.00 Tollgrade current sensors behind non‐communicating hydraulic reclosers: Both Duke West and Duke Midwest have been leveraging Tollgrade current sensors behind non‐communicating hydraulic reclosers for the past 1‐2 years. I understand Duke Florida is considering such a project this year utilizing the Tollgrade sensor. I suggest Duke Progress be given the opportunity to leverage this proven sensing technology at hydraulic recloser sites. The combination of FMS and Tollgrade sensors at hydraulic recloser sites can be a powerful solution

Distribution Infrastructure

100.00

Fleet

Replace LineTracker units with Tollgrade sensors: Replace aging LineTracker units with Tollgrade sensors in DEC and extend to other jurisdictions (I&V Team idea) AMI: Additional advanced meter infrastucture assets for Carolinas

ID 36

Category Distribution Automation

Item DA Fla: Accelerate DA Florida project currently slated to start in 2015. 2014 proposed scope: Install 30 electronic reclosers in targeted locations.

Index 100.00

Distribution Automation

Distribution Infrastructure

DEP Feeder Segmentation Project. In flight project: Full Scope: Install multiple 21.54 upgraded and new electronic reclosers from 2011 ‐ 2014, including IPP locations. Proposed new 2014 scope: Install reclosers at 8 IPP locations recently targeted by Grid Management. Hydraulic Reclosers: Replace hydraulic reclosers with low/no maintenance 21.54 solid dielectric/vacuum bottle reclosers OH Line Sensors: Issue analysis and resolution for existing line sensors; CM, 21.54 training, BPM to sustain (500 sensors that are not currently functioning …)

Fleet

100.00 100.00 100.00

100.00

Fuel System Card Readers: Automated systems for no more than 19 that track 21.54 fuel consumption for underground on‐site storage tanks currently in use in Midwest

Joe Thomas

Ted Thomas

ID 1

Category AMI

128

Software

Item Car West AMI ‐ added scope: Add scope of 20k meters to existing project and to 2014 plan. (Dependency on timely approvals including DOA and Itron ability to deliver) Enterprise: Enterprise – Cisco – License for 4.0M Endpoints in NMS ‐ 2014

Index 10.00

3.16

3.73

AMI

Billing

Indiana AMI: Begin planning phase in Sept 2014 with Commit gate in Jan 2015. 2014 spend for Planning would be capital Kentucky AMI Planning: Begin planning phase in ??? 2014 with Commit gate in???. 2014 spend for Planning would be capital Additional Meter Coverage: Swap out non‐mesh meters in Ohio where there is weak communications structure. Power Factor Billing: Begin calculating bills using data from the kVAR channel

Data

Data Analytics: Implement Asset Management Data Analytics Use Case

3.16

Distribution Automation

DA Fla: Accelerate DA Florida project currently slated to start in 2015. 2014 proposed scope: Install 30 electronic reclosers in targeted locations.

3.16

70 111

Fleet Hardware & Telecom

AMI: Additional advanced meter infrastucture assets for Carolinas Mobility tools with camera functionality: Install Tablets in trucks with MIFI

3.16 3.16

134

T&D Tools

3.16

135

T&D Tools

ID 23 25 26 27

Category Data Data Data Data

Item Data Analytics: Data Virtualization\Federation ‐ ALT Data Analytics: Metadata Repository ‐ ALT Data Analytics: Informatica Big Data Edition ‐ ALT Data Analytics: Implement Revenue Protection Data Analytics Use Case

Index 100.00 100.00 100.00 100.00

35 114

Distribution Automation Hardware & Telecom

IVVC Car West: Begin planning, engineering, and data validation Additional screens and technology for storm centers: As we leverage more technology in the storm centers, we will need more screens to display the information.

100.00 100.00

3.16 3.16

3.16

Mark Wimberly

ID 1

Category AMI

Item Car West AMI ‐ added scope: Add scope of 20k meters to existing project and to 2014 plan. (Dependency on timely approvals including DOA and Itron ability to deliver) AMI project optimization in Car East and Fla: Scope addition to existing Car East / Florida AMI project to continue RF mesh optimization due to foilage increase since mesh deployment. HOM ‐ DEC/DEP: Expand HOM into the Carolinas in 2015. Cybersecurity: With the increased proliferation of computing devices and automation of equipment, the company needs to do due diligence to identify and test for potential vulnerabilities . Invest in proper/additional layers of protection needed for robust response and rapid recovery plans to protect against/prevent the occurrence of cyber‐attacks

AMI

15 16

Customer Hardware Cyber Security

Distribution Automation

N‐Rel Smart Inverters: Modeling simulation of smart inverters working with N‐ 100.00 Rel's power hardware in the loop and Alstom's DMS

Distribution Automation

DMS operability in various modes: DMS is configurable and could be operated 100.00 in different modes. Circuits have their unique characteristics and thus have unique volt‐var configurations. Examine existing functionality within the DMS applications (Alstom,Telvent) that would give us the ability and flexibility to operate IVVC in various modes simultaneously, such that the same operating model would not necessarily apply to all circuits

Fleet

Barcoding functionality of inventory in Maximo: Ability to receive inventory into Maximo and issue inventory to an asset in a Maximo work order

Fleet

Fuel System Card Readers: Automated systems for no more than 19 that track 100.00 fuel consumption for underground on‐site storage tanks currently in use in Midwest

DEP Feeder Segmentation Project. In flight project: Full Scope: Install multiple upgraded and new electronic reclosers from 2011 ‐ 2014, including IPP locations. Proposed new 2014 scope: Install reclosers at 8 IPP locations recently targeted by Grid Management. CDO Self Healing Teams: Expand Self Healing team penetration in Car East jurisdiction. 90 targets identified. Proposed 2014 scope: Install 20 tie point reclosers. CDO Tie Line Projects with Automation: Add tie lines to increase switching options and flexibility. Proposed 2014 scope: Pull highest value project forward. IVVC Burlington Pre‐Deployment: Pre‐Deployment of IVVC in Carolinas; BPM, Modeling, CM, training development for full deployment

Index 100.00

100.00

100.00 100.00

100.00

Dan Woodall

ID 1

Category AMI

Item Car West AMI ‐ added scope: Add scope of 20k meters to existing project and to 2014 plan. (Dependency on timely approvals including DOA and Itron ability to deliver) Indiana AMI: Begin planning phase in Sept 2014 with Commit gate in Jan 2015. 2014 spend for Planning would be capital Marietta AMI Change out: Remove 2300 Echelon/Ambient meters and replace with Itron/Cisco standard solution IPv6 Itron NMS Pre‐Deployment: IPv6 Pre‐Deployment for Itron NMS

Index 100.00

AMI

Distribution Automation

Distribution Infrastructure

Electric Vehicles

Facilities

109

Hardware & Telecom

Midwest Microwave Buidout: Request a review by IT Telecom for opportunities to ramp up the microwave system in the Midwest in order to reduce ongoing third party telecom cost for data lines. In so doing, this would likely enable greater bandwidth at our sites, while reducing/eliminating some third party leased data lines.

100.00

128

Software

Enterprise: Enterprise – Cisco – License for 4.0M Endpoints in NMS ‐ 2014

100.00

134

T&D Tools

100.00

135

T&D Tools

136 137

T&D Tools T&D Tools

C & M Climbing Tools: Safety equipment ‐ Belt, hooks, buck squeeze, pads, tool bag, tool pouch, Transmission Tools: LLBH/Hot Sticks, Slings/Rigging Equipment, Portable Power Tools, Battery Operated Power Tools Relay Equipment: Megger MPRT 3 Phase Relay Test Set Relay Equipment: CT Test Set Vanguard EZCT 2000C

100.00 100.00 100.00

100.00 CDO Self Healing Teams: Expand Self Healing team penetration in Car East jurisdiction. 90 targets identified. Proposed 2014 scope: Install 20 tie point reclosers. N‐Rel Smart Inverters: Modeling simulation of smart inverters working with N‐ 100.00 Rel's power hardware in the loop and Alstom's DMS Replace LineTracker units with Tollgrade sensors: Replace aging LineTracker units with Tollgrade sensors in DEC and extend to other jurisdictions (I&V Team idea) RDR Project ‐ FL DLC Switch Purchases: RDR Project purchase 2Function Wi‐Fi DLC Switches for 2015 installation. DE Fleet Charging Infrastructure: EV Charging Infrastructure to support DE fleet vehicles Facilities: Mold remediation at Lancaster grew from $750K to almost $2M

100.00

100.00 100.00 100.00

Appendix Complete Capital Investment Ranking List Only 110 capital investments represented in the list due to the grouping of three categories within T&D Tools and new project ideas which weren't scored.

Rank

Index Score

3.79

135

T&D Tools

Transmission Tools: LLBH/Hot Sticks, Slings/Rigging Equipment, Portable Power Tools, Battery Operated Power Tools

3.67

134

T&D Tools

C & M Climbing Tools: Safety equipment - Belt, hooks, buck squeeze, pads, tool bag, tool pouch,

2.65

AMI

2.52

AMI

2.43

Distribution Infrastructure

2.43

Distribution Infrastructure

2.36

AMI

2.29

Distribution Automation

DEP Feeder Segmentation Project. In flight project: Full Scope: Install multiple upgraded and new electronic reclosers from 2011 - 2014, including IPP locations. Proposed new 2014 scope: Install reclosers at 8 IPP locations recently targeted by Grid Management.

2.22

114

Hardware & Telecom

Additional screens and technology for storm centers: As we leverage more technology in the storm centers, we will need more screens to display the information.

2.22

Electric Vehicles

Expand the fleet of plug-in vehicles: Use as pool vehicles for employees travelling locally on business

2.19

Distribution Automation

2.18

AMI

2.01

Fleet

Fuel System Card Readers: Automated systems for no more than 19 that track fuel consumption for underground on-site storage tanks currently in use in Midwest

1.99

Distribution Automation

CDO Tie Line Projects with Automation: Add tie lines to increase switching options and flexibility. Proposed 2014 scope: Pull highest value project forward.

1.98

Distribution Automation

Automatic disconnection of distributed generation (smart inverters):

1.96

Distribution Infrastructure

Replace LineTracker units with Tollgrade sensors: Replace aging LineTracker units with Tollgrade sensors in DEC and extend to other jurisdictions (I&V Team idea)

1.95

AMI

AMI project optimization in Car East and Fla: Scope addition to existing Car East / Florida AMI project to continue RF mesh optimization due to foilage increase since mesh deployment.

Category

Item

Indiana AMI: Begin planning phase in Sept 2014 with Commit gate in Jan 2015. 2014 spend for Planning would be capital Car West AMI - added scope: Add scope of 20k meters to existing project and to 2014 plan. (Dependency on timely approvals including DOA and Itron ability to deliver) Hydraulic Reclosers: Replace hydraulic reclosers with low/no maintenance solid dielectric/vacuum bottle reclosers OH Line Sensors: Issue analysis and resolution for existing line sensors; CM, training, BPM to sustain (500 sensors that are not currently functioning …) Marietta AMI Change out: Remove 2300 Echelon/Ambient meters and replace with Itron/Cisco standard solution

DA Fla: Accelerate DA Florida project currently slated to start in 2015. 2014 proposed scope: Install 30 electronic reclosers in targeted locations. Additional Meter Coverage: Swap out non-mesh meters in Ohio where there is weak communications structure.

1.92

Distribution Infrastructure

Neutral current CT’s on fixed (un-switched) cap banks : It is my understanding Duke Midwest have been leveraging a Cooper “Outage Advisor” neutral current CT’s on fixed (un-switched) cap banks for years to help proactively identify questionable or failed capacitors/blown fuses. Duke West, Duke Florida and Duke Progress has never had the funding to add neutral CT monitoring on their fixed cap banks but I understand Duke Florida is considering such a project this year utilizing the Tollgrade sensor. My suggestion would be to add Communicating neutral CT’s on Duke Florida, Duke West and Duke Progress fixed capacitor banks at a cost of around $700-$1000 each plus labor (price depends on vendor and technology).

1.86

AMI

Kentucky AMI Planning: Begin planning phase in ??? 2014 with Commit gate in???. 2014 spend for Planning would be capital

1.84

Distribution Infrastructure

1.74

110

Hardware & Telecom

Duke WLAN Expansion at Op Centers: Increase Duke Wireless LAN coverage at Op Centers (prepares us for increased use of mobile devices), including dock areas.

Rank

Index Score

1.73

Category

Item

Distribution Infrastructure

Tollgrade current sensors behind non-communicating hydraulic reclosers: Both Duke West and Duke Midwest have been leveraging Tollgrade current sensors behind non-communicating hydraulic reclosers for the past 1-2 years. I understand Duke Florida is considering such a project this year utilizing the Tollgrade sensor. I suggest Duke Progress be given the opportunity to leverage this proven sensing technology at hydraulic recloser sites. The combination of FMS and Tollgrade sensors at hydraulic recloser sites can be a powerful solution

1.73

115

Hardware & Telecom

1.72

AMI

Move Forward MDM Work: Complete the Ohio Conversion and prepare for Indiana AMI rollout.

1.72

Electric Vehicles

DE Fleet Charging Infrastructure: EV Charging Infrastructure to support DE fleet vehicles

1.72

Data

GIS Cleanup: Validate and correct all GIS data points from substation to meter in all jurisdictions; process development and training for ongoing maintenance/sustainment

1.71

Fleet

Hydraulic Tools: Portable pin press, etc.

1.71

Distribution Automation

IVVC Car West: Begin planning, engineering, and data validation

1.71

Distribution Automation

IVVC Burlington Pre-Deployment: Pre-Deployment of IVVC in Carolinas; BPM, Modeling, CM, training development for full deployment

1.71

Electric Vehicles

Employee/Workplace Charging Infrastructure at DE Facilities: EV Charging Infrastructure to support DE employees at company facilities

Data

PI Historian functionality: Determine ways to better leverage, utilize, and capture more information in the enterprise PI Historian that could be used for Planning, PQR&I, Grid Mod purposes and help us make better business decisions and operate our systems more efficiently. For example, having enough information to determine the load factor of a circuit/feeder can be used a criteria for identifying how effectively and efficiently a circuit is utilized and identify high candidate circuits for IVVC that bring the most value

1.65

Distribution Automation

DMS operability in various modes: DMS is configurable and could be operated in different modes. Circuits have their unique characteristics and thus have unique volt-var configurations. Examine existing functionality within the DMS applications (Alstom,Telvent) that would give us the ability and flexibility to operate IVVC in various modes simultaneously, such that the same operating model would not necessarily apply to all circuits

1.65

Customer Hardware

HOM - DEO: Duke Energy take ownership of thermostats and capitalize the volume of units, plus install costs

1.20

1.64

136 Grp T&D Tools

124

Relay Equipment: Megger MPRT 3 Phase Relay Test Set, CT Test Set Vanguard EZCT 2000C, Enoserv RTS Key for Megger MPRT, Megger Battery Ground Fault Tracer 2461008, Megger Battery Impediance Tester - Bite 2, Oscilloscope Tektronics THS-720A

Software

Veg Mgmt Land Based Asset Mgmt System: Utilize LIDAR technology to develop a corridor approach, condition based VM maintenance program.

1.63

Distribution Automation

Expand DEP FMS type capabilities across the enterprise: Legacy Progress Energy’s DCC uses FMS to locate faults and communicate fault locations to dispatched crews. Over 83% of the time, the DCC is able to put a crew at a fault location within one span in less than 3 minutes. For the times when FMS cannot accurately locate the fault, Grid Engineers can do so with waveform data pulled in from FMS. Legacy Progress’ Account Managers frequently use the query functions of the FMS to provide accurate date/time/magnitude/duration of events for any interval of time up to five years’ worth of data. This system gives the Account Managers the tools to quickly and accurately provide pertinent event data to their customers without involving power delivery personnel. Legacy Progress PQ Engineers typically use the waveform data to analyze events and abnormal disturbances on the system.

1.58

Distribution Infrastructure

House Power Panels: Replace current House Power Panels with standard breaker panel & meterbase

1.58

107

Hardware & Telecom

Computer Hardware and Bandwidth Upgrades : Improvement to existing computer performance and communication bandwidth to correct current poor performance.

1.55

108

Hardware & Telecom

Printing Solution: Request a review by Corporate IT to determine if additional print servers or new printers are needed to overcome the slowness in printing jobs, especially in the Midwest.

1.55

Distribution Automation

CDO Self Healing Teams: Expand Self Healing team penetration in Car East jurisdiction. 90 targets identified. Proposed 2014 scope: Install 20 tie point reclosers.

Rank

Index Score

1.55

Fleet

Additional Laptops for Garage use: ability to control the loading and updating of diagnostic programs

1.54

133

T&D Tools

Storage Area for WG Florida: New Hire Supplies - restock tools, equipment, attire

1.53

Fleet

Fleet Management System : Software that assists with titling, licensing and registration

1.52

Distributed Energy Resources

Solar Modeling: Model solar in GIS/DMS for all jurisdictions; process development and training to sustain

1.52

Customer Hardware

HOM - DEC/DEP: Expand HOM into the Carolinas in 2015.

1.51

AMI

IPv6 Itron NMS Pre-Deployment: IPv6 Pre-Deployment for Itron NMS

1.48

Distribution Infrastructure

RDR Project - FL DLC Switch Purchases: RDR Project purchase 2Function Wi-Fi DLC Switches for 2015 installation.

1.47

Data

Data Analytics: Implement Asset Management Data Analytics Use Case

1.47

Distribution Automation

Install regulators : accelerate IVVC locations and get the benefit of the regulator now

Hardware & Telecom

Tablets to support damage assessment application: We plan to adopt an application that contract damage assessors can access from their own device, but will likely need some additional devices for employees in DA roles.

1.46

113

Category

Item

1.46

Data

AMI-Distribution Automation integration: Determine how to leverage AMI data for distribution automation purposes. This could help lower the quantity (and cost) of end-of-line medium voltage sensors on the distribution line

1.45

Fleet

AMI: Additional advanced meter infrastucture assets for Carolinas

1.45

Distributed Energy Resources

DG: Customer Energy Storage - Integration of thermal energy storage for summer peak reduction. Devices (Ice Bear) would be located on customer commercial roofs with PTAC HVAC installations.

1.44

Fleet

Barcoding functionality of inventory in Maximo: Ability to receive inventory into Maximo and issue inventory to an asset in a Maximo work order

1.44

Data

Build Out Reporting Hubs: Build out additional reporting hubs to support cross-DOS/T/G reporting. For example, move remaining outage-related data (ITR/ETR, Cause Code, Truck info, etc) into OMS History Datamart; move core transmission work info from Cascade/Primavera/eMax into new reporting hub;

1.43

Facilities

Facilities: Mold remediation at Lancaster grew from $750K to almost $2M

1.42

Fleet

Hydraulic Filter Carts: for all Florida garages and garages that do not currently have them

1.41

Electric Vehicles

1.41

116

Software

1.40

1.39

111

1.39

1.37

128

1.36

AMI

Customer EV Charging Solutions: Residential: EV charging infrastructure solutions to support DE residential customers Damage Assesment Tool: Purchase and deploy a Damage Assessment tool that aligns with our mobile strategy. End to End Net Metering: Develop an end to end (meter to cash) platform to enable Net Metering at scale.

Hardware & Telecom

Mobility tools with camera functionality: Install Tablets in trucks with MIFI

AMI

AMI: AMI through Broadband - Cable Vendor Partnership

Software

Enterprise: Enterprise – Cisco – License for 4.0M Endpoints in NMS - 2014

Fleet

Veeder-Root Systems: Automated system that monitor and track fuel tank levels to offer additional protection from potential tank leaks in underground fuel tanks . Reduce need for as frequent "sticking tanks' to measure inventory and increases accuracy of tank measurement

1.36

Distribution Automation

Distribution test areas need to be established in the other Duke areas (Duke Florida, Duke Progress and Duke Midwest): While listening to the Emerging Technology organization talk about their many projects and field trials, there seems to be one common denominator and that is all work is taking place around Charlotte or at least in the Duke West area. I think distribution test areas need to be established in the other Duke areas (Duke Florida, Duke Progress and Duke Midwest) in order to get the diverse feedback and input these areas can add. I think moving technology from the Emerging Technology group to Grid Mod and ultimately to the business will be more successful if other geographic areas can be participants at the Emerging Technology level.

1.35

Fleet

Internet connectivity through entire garage: ability to connect to the internet no matter where you are within the garage

1.35

Facilities

Additional Mobile Storm Command Centers: DEP and DEF have two mobile command centers in each area, but DEC and Midwest do not. DEC team said they do not see value in owning mobile command centers because they have been satisfied with renting RV's when needed.

1.32

Distribution Infrastructure

Backlot OH conversions: There are a lot of back lot, small wire areas that need to be converted to front lot UG. These areas are nightmares for storm problems and most are extremely old – end of life.

1.32

Billing

Power Factor Billing: Begin calculating bills using data from the kVAR channel

Rank

Index Score

1.30

Data

Data Analytics: Implement Revenue Protection Data Analytics Use Case

1.30

162

Workforce

Add additional line construction resources to achieve capital workplan:

1.30

Data

More accurate GIS model:

Distributed Energy Resources

DG: Distributed Generation for Customers with Intermittent Renewables (PV) - Proposed program for supply of Duke owned energy storage systems for customers with intermittent renewable systems. Provide smoothing, energy shifting and backup for selected loads during outages.

1.30

Category

Item

1.28

Billing

Challenge/ Change the traditional billing model of Cost per KiloWatt-Hour: The company revenues are tied to load. With a slow economy and more customer focus on energy efficiency and renewable resources (distributed generation), the company is challenged with low load growth. The traditional model of charging customers on a cost per kiloWatt-Hour basis may need to revisited so that customers pay their equal share of energy consumption. This is not a quick and simple fix but worth looking into for future. Are there ways to leverage the new technology meters to do more than just serve as a KiloWatt Hour meter

1.28

Electric Vehicles

Customer EV Charging Solutions: Commercial: EV charging infrastructure solutions to support DE commercial customers (e.g. public charging)

1.28

109

Hardware & Telecom

1.27

112

Hardware & Telecom

Tablets with a Duke APP to include safety, procedures, maps, etc. for contractors working storms. Etc.:

1.26

Distributed Energy Resources

Duke sponsored/ owned PV farm in Florida:

1.24

Distribution Automation

N-Rel Smart Inverters: Modeling simulation of smart inverters working with N-Rel's power hardware in the loop and Alstom's DMS

1.24

Data

Order Hub: Database where order data from the CIS, eMax, MWMS, etc is stored so that applications have a view into field/remote orders.

1.23

Facilities

Facilities project mgmt: Identify a facilities major project requiring capital investments

1.19

121

Software

Transmission Line Level 1 Equipment: Capstan Hoist/Good Rigging System, Steel Pole Ladders (60), Conex Box for Storage, Wire Grips (12), Battery Operated Power tools (DEF, DEMW), Magnetic Drill (DEF, DEMW), Light Duty Pole Jacks (DEF, DEMW), Generator 4kw (DEF, DEMW), 60 Ton Press for line construction, dies (DEF, DEMW), Tool Barn to store tools and materials (25 x 25) - DEMW

1.18

Fleet

Facilities project mgmt: Identify a facilities major project requiring capital investments

1.17

Fleet

Parts Software: ability to use manufacturer parts numbers for our data entry and if needed a cross reference interface to convert to existing part numbering

1.17

Distribution Infrastructure

Relocate Breaker & Storage Area for Inglis Florida: Relocate Breakers to Brick Building for Training & Build Pole Barn for outside Training Activities

1.16

120

Software

Claims Billing Tool : Purchase an "off the shelf" tool to replace the microsoft access database that is being developed

1.14

142 Grp T&D Tools

1.15

Distribution Automation

IVVC as a standardized PQR&I resilience program: As the cost of Distributed Renewable Resources decreases, there could be higher penetration levels of distributed technologies on the Grid. Dynamic capabilities of IVVC within DMS (Distribution Management System) will help mitigate the potential overvoltage and intermittent challenges on the system. IVVC could become part of a normal PQR&I program for system resilience

1.15

Distribution Automation

Lighting power source identification: To know where lights are located, so it can be disconnect and reconnect

1.14

Fleet

ABC software module: Software that assists in design & development of training materials

1.14

Fleet

Fleet Training Room/supplies: With all projected fleet turnover and existing fleet training needs having dedicated props for training purposes. Hydraulic boards with pump, valves, cylinders, motors and the like are available where you hook on the hoses and test equipment with quick couplers. This is a great tool for teaching someone about hydraulics.

1.12

123

Software

Vehicle Management System: Optimize routing, equipment use and dispatching operations.

Rank

Index Score

Category

Item

1.11

132

T&D Tools

Logistics Materials: I did not poll all areas, but DEC logistics suggested the following: • We would like consideration for the purchase of John Deere gators to be used at large staging sites; may need to evaluate purchase vs rent • Knowing how communications can be sketchy in the West Zone, should we consider additional telecomm mobile units for better radio coverage • Additional items for storm kits (we can provide a list if approved) • Staging site signage • Portable generators • Scanners • Two-way radios • Enclosed trailers

1.10

117

Software

BPM tool: Analysis & modeling tool to help map & optimize existing processes.

1.10

Cyber Security

Cybersecurity: With the increased proliferation of computing devices and automation of equipment, the company needs to do due diligence to identify and test for potential vulnerabilities . Invest in proper/additional layers of protection needed for robust response and rapid recovery plans to protect against/prevent the occurrence of cyber-attacks

1.09

Fleet

Scheduling Too: A tool to help up schedule customer maintenance repairs

1.07

Data

Data Analytics: Data Virtualization\Federation - ALT

1.06

Distribution Infrastructure

OH Feeder Conversions: UG feeders in heavily treed areas

1.05

126

Software

ARCOS SOS module or update of RSVP tool: Module to capture and manage storm support roles for employees not in line organizations.

100

1.17

152 Grp T&D Tools

Substation Level Equipment: DGA Monitor (Portable for Transformer Oil, Hot Stick Tester, Infared Camera, Portable Oil Moisture Meter, Oil Moisture Tester, Phasing Sticks (Wireless 208-88KV), SF6 Moisture Analyzer, Transformer Winding Resistance Tester, Oil Filter Press

101

0.99

127

Software

Crew location tracking during storms: Resource teams have not expressed interest in this capability, but other utilities are adopting it to improve situational awareness about location of resources relative to outages. Could invest in GPS units to issue to crews or install GPS capability in trucks not equipped today. Technology already exists to track smartphones if owner grants permission.

102

0.94

122

Software

Communications Tool: Purchase a communications development and distribution tool

103

0.94

125

Software

Interface between ARCOS and RoD: Build an interface between ARCOS and RoD to eliminate the manual data entry into RoD.

104

0.92

Data

Data Analytics: Informatica Big Data Edition - ALT

105

0.86

Data

Data Analytics:

106

0.84

119

Software

Predictive analytics of assets:

107

0.72

Data

Data Analytics: Advanced Analytics Foundation / Big Data Platform / ALT

108

0.70

Fleet

BPM tool: Analysis & modeling tool to help map & optimize existing processes.

109

0.55

118

Software

Consolidated, common Customer Management software:

110

0.25

129

Software

DR: Commercial Auto DR SAAS (Solution As A Service) Opportunity

* Multiple capital investments grouped together based on equipment similarity and high correlation of participant scores