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2024 ANNUAL ELECTRIC SYSTEM RELIABILITY REPORT Prepared By ANAHEIM PUBLIC UTILITIES ---PAGE BREAK--- Page I 2 Table of Contents 1. Executive Summary 3 1.1 Overview 1.2 Reliability Metrics 1.3 APU 2024 Reliability Performance Summary 2. APU Service Territory Map 3. APU Annual Reliability Data 3.1 Five Year Reliability Performance 3.2 Major Event Exclusions 8 3.3 Top Five Major Outage Events (2024) 9 3.4 Utility Comparisons 10 3.5 Worst Performing Circuits 12 3.5.1 Monitoring Individual Circuits 3.5.2 High Priority Circuits (3-Year Average) 3.6 Outage Causes 3.7 Overhead vs. Underground Performance 4. Distribution Equipment Inspection Program 4.1 Overview 4.2 Equipment Inspection 4.2.1 Patrol 23 4.2.2 Intrusive and Detailed Inspections 5. Substation Equipment Inspection and Replacement Program 24 5.1 Overview 5.2 Substation Inspections ---PAGE BREAK--- Page I 3 1. Executive Summary 1.1 Overview Anaheim Public Utilities (APU) provides reliable and high-quality electric service to approximately 123,000 residential and business customers. To determine the reliability of the local grid, performance metrics are utilized to measure outage duration, number and type of outage events, as well as restoration time. Similar statistics are gathered by both private and public utilities and reported to respective regulatory agencies, boards and councils. The Annual Electric System Reliability Report (Report) is intended to parallel industry with the best practice of reporting on reliability metrics and inspection results. Investor-owned utilities are required to submit annual reports to the California Public Utilities Commission (CPUC) on reliability metrics, distribution equipment inspections per General Order (GO) 165, and substation equipment inspections per GO 174. The objective of this Report is to review APU’s reliability performance and inspection programs for the calendar year 2024. In addition to presenting the standard reliability indices, the report also provides information on major outage events, peer utility comparisons, common outage causes, and the results of system inspection programs. 1.2 Reliability Metrics Electric reliability is measured by recording how many times service is interrupted (frequency), how long the average customer is interrupted (duration), and how long it takes to restore service once a customer is interrupted (restoration time). These three measures of reliability have been standardized and are recognized by the electric industry as best practices for comparing reliability performance among utilities, regardless of the number of customers. The performance metrics discussed in this Report are based on the definitions and calculations as shown below: System Average Interruption Frequency Index (SAIFI): SAIFI is an indication of outage frequency, or how many outages an average customer may experience in a year. It is calculated based on the total number of customers affected by all outages each year divided by the number of customers served by the utility. SAIFI= Sum of All Sustained Customer Interruptions Total Number of Customers Served System Average Interruption Duration Index (SAIDI): SAIDI is an indication of outage duration, or how long an average customer will be without service per year. It is calculated based on the total number of minutes that customers are without power each year divided by the number of customers served by the utility. SAIDI= Sum of All Sustained Customer Interruption Durations Total Number of Customers Served ---PAGE BREAK--- Page I 4 Customer Average Interruption Duration Index (CAIDI): CAIDI is an indication of outage duration for those interrupted, or how long it takes to restore outages. It is calculated based on the total minutes that customers are without power each year divided by the number of customers interrupted by such outages. APU’s annual CAIDI is based on yearly totals (total CMI ÷ total CI) consistent with Institute of Electrical and Electronics Engineers (IEEE) Standard 1366. CAIDI= SAIDI SAIFI = Sum of All Sustained Customer Interruption Durations Total Number of Customer Interruptions 1.3 APU 2024 Reliability Performance Summary APU is committed to providing reliable electric service to its customers. Reliable electricity is delivered to Anaheim customers by combining a diverse portfolio of power resources with a modern and well-maintained distribution network. Below is a summary of APU reliability performance in 2024 and its performance, averaged over the past five years. All Interruptions Included 1 Major Events Excluded YEAR SAIFI SAIDI CAIDI SAIFI SAIDI CAIDI 2024 0.54 46.09 85.82 0.46 36.77 80.50 5 Year Avg. (2020-2024) 0.56 38.33 67.33 0.51 32.46 63.93 1All calculations include only sustained interruptions, which is an interruption lasting greater than five minutes and resulting in positive Customer Minutes Interrupted (CMI). The above values were obtained from the Supervisory Control and Data Acquisition (SCADA) database and were calculated per IEEE Standard 1366. ---PAGE BREAK--- Page I 5 2. APU Service Territory Map Below is a geographical map showing APU’s service territory and its boundaries. APU’s service territory covers over 50 square miles of mostly urban and suburban areas located in northern Orange County, extending to the Riverside County line in the east. APU’s electric system is surrounded by communities served by Southern California Edison (SCE) who operates transmission and distribution infrastructure that passes through Anaheim. ---PAGE BREAK--- Page I 6 3. APU Annual Reliability Data 3.1 Five Year Reliability Performance APU collects and reports on all outage data, and in-line with standard utility best practice, separately reports data on all outages, and outages excluding major events. The reason for this is to determine how the normal grid performs, exclusive of major windstorms or regional outages to provide a normalized basis for comparison. In a tabular format, APU’s data is as follows: All Interruptions Included 1 Major Events Excluded YEAR SAIFI SAIDI CAIDI SAIFI SAIDI CAIDI 2020 0.37 26.45 71.79 0.37 26.45 71.79 2021 0.92 70.94 77.4 0.77 50.89 65.72 2022 0.37 19.77 53.33 0.37 19.77 53.33 2023 0.59 28.41 48.32 0.59 28.41 48.32 2024 0.54 46.09 85.82 0.46 36.77 80.50 1 All calculations include only sustained interruption, which is an interruption resulting in positive CMI. The above values were obtained directly from the Supervisory Control and Data Acquisition (SCADA) database and were calculated per IEEE Standard 1366. The overall performance in 2024 was lower in terms of the frequency of outages; however, the duration and restoration times were relatively higher than the five-year averages as shown in the following chart. This indicates that outages are taking longer to make repairs which is reflective that APU’s distribution system is 65% underground and outage responses are subject to confined space entry, water intrusion, traffic control, and generally take longer to remove and replace equipment. Some of the notable outages that contributed to the 2024 performance metrics were caused by cable failures, one of which resulted in interruption to over 2,500 customers. Electric service was restored to 70% of the interrupted customers approximately in 90 minutes. Direct buried cable outages also continue to be a significant cause of outages both in terms of duration and frequency. APU accelerated the replacement of direct buried cable in 2024 increasing investment by 22% over prior years, with approximately 75% of the cable replaced to date. ---PAGE BREAK--- Page I 7 In September 2024, Anaheim experienced a heat wave with temperatures reaching a high of 109 degrees and lows at night averaging near 80 degrees. There were 14 outages over the three-day period, which was significantly less than a prior heat wave, as a transformer replacement program has accelerated replacement of aging, older models, or undersized transformers. Replacement units are sized in preparation for electrification and other capacity needs. APU’s continued investments in infrastructure upgrades has maintained the overall system reliability within APU’s reliability targets compared favorably against public utilities nationwide in terms of reliability metrics. APU’s system reliability is primarily attributed to the ongoing direct buried cable replacement program, and other capital infrastructure replacement projects including transformers, pole upgrades, and branch line fusing. The deployment of advanced automation, which isolates the problem area to reduce the number of customers affected and facilitates faster power restoration. With an increasing amount of underground infrastructure, APU continues to conduct detailed inspection services to prioritize equipment replacement to reduce the risk of unplanned outages. Anaheim has experienced a significant increase in wire theft and equipment vandalism, which is trending nationally. APU owns and maintains the streetlights throughout the city and experiences wire theft resulting in disruption to traffic signals, streetlights, residential services and on a few instances high voltage cable. Although the majority of the non-customer outages are not reported in the electric performance metrics, electric crews are still dispatched to make the repairs, which take a significant amount of time with the extensive damage. The increase in incidents has impacted crew response times for outages happening simultaneously. Several measures have been taken to harden the infrastructure to restrict access to wires and transition to aluminum cable. Additionally, a wire theft prevention assembly bill (AB) – AB 476 (Gonzalez) recently passed in the California Legislature added additional requirements on metal recyclers and junk dealers to document the source and ownership of the metals with a $5,000 fine for each offense. ---PAGE BREAK--- Page I 8 Below is a chart showing the five-year trend of the number of sustained outages that resulted in customer interruptions between 2020 and 2024. The total number of sustained outages in 2024 was higher than in previous years. Major contributing factors to increased outages are due to cable and transformer failures. However, the total number of customers interrupted resulting from these outages was lower in 2024 than the prior year, thereby resulting in a lower frequency of outages. Note: The total number of sustained outages per year included MED outages. 3.2 Major Event Exclusions Major Event Exclusions are defined and have been widely adopted as the utility industry standard based on IEEE Standard 1366. The IEEE Standard 1366 provides consistent benchmarking across the utilities industry and uses standardized reliability metrics (daily SAIDI) to define Major Event Days (MEDs) for exclusion. A major event is defined as an event that exceeds reasonable design and/or operational limits of the electric power system and their exclusion is to compare how electric systems perform on a normalized basis. In that standard, a major outage event is defined statistically, not by cause, as a day when the system’s daily SAIDI value exceeds the Threshold Value for Major Event Day (TMED), which is determined by using five years of historical outage data averages with a specific standard deviation. APU has had three major events over the past five years. ---PAGE BREAK--- Page I 9 Year Date Primary Cause Major Events Excluded Basis for Exclusion SAIFI SAIDI CAIDI 2020 None 2021 04/18/2021 11/25/2021 Wind 0.69 40.96 59.77 Windstorm caused widespread outages; Daily SAIDI exceeded Major Event Days limit 2022 None 2023 None 2024 08/23/2024 Conductor Failures 0.55 37.03 67.62 Multiple conductor failures in the same vicinity (see Section 3.3); Daily SAIDI exceeded Major Event Days limit 3.3 Top Five Major Outage Events (2024) The table below captures the top five major outage events for 2024 that resulted in the highest customer minutes of interruption including causes and number of customers affected. A single event on 8/23/2024 affected multiple circuits co-located on the same structure. An overhead splice on one circuit within Sharp Substation failed, causing the conductor to fall on another circuit below on the same pole. Additionally, an adjacent circuit was tied to the second circuit, and as a result, all three circuits were simultaneously tripped, with more than 9,000 customers interrupted. However, over 90% of interrupted customers were restored within 2.5 hours, and the remaining within 10 hours through switching procedures to transfer load to other circuits. This multiple outage event was considered a MEDs based on the IEEE Standard as discussed and defined in Section 3.2 and therefore was excluded from the reliability metrics. Rank Circuit Substation Date Customer Affected Customer Minutes Interruption Cause Description 1 Jewel 12KV Anaheim 4/15/2024 2,540 629,412 Cable Failure 2 La Verne 12KV Sharp 8/23/2024 2,683 421,231 Conductor Failure 3 Debbie 12KV Sharp 8/23/2024 4,228 418,572 Conductor Failure 4 Knott 12KV Clair 2/14/2024 582 264,810 Metallic Kite / Kite Contacted Line / Balloon 5 Brenda 12KV Sharp 8/23/2024 2,482 250,707 Conductor Failure ---PAGE BREAK--- Page I 10 3.4 Utility Comparisons In 2024, an Anaheim customer would have experienced, on average, 0.46 service interruptions (approximately one outage every two years), would have gone without power for 37 minutes, or if experienced a power outage, take about 80 minutes to restore. Generally, the reliability level experienced by Anaheim customers in 2024 is about 50% better than that of surrounding Orange County communities. In 2024, APU ranked in the top 25 percent (quartile) of Publicly Owned Utilities (POU) nationwide for frequency (SAIFI) and duration (SAIDI) of outages, which means that Anaheim customers had fewer and shorter, on average, power outages than the other 75% of utilities nationwide. Restoration time (CAIDI), which is the average time a power outage lasts until all customers are restored, fell just short of the top quartile nationally. APU has a higher percentage of the electric system underground, approximately 67%, as compared to other surrounding utilities. Repairs can take longer for underground systems due to factors including locating where the damage occurs and accessing the infrastructure which can be located underneath parked vehicles, within vaults in the roadway, or adjacent to other utility pipelines needing to be located before digging. The following graphs show the reliability metrics for APU as compared to other California utilities2 in the past five years: ---PAGE BREAK--- Page I 11 2 The 2024 reliability indices for neighboring utilities were obtained from either the United States Energy Information Administration (EIA), that collects, analyzes, and disseminates energy related information, or the CPUC. The top quartile indices, based on the five-year average (2020-2024) published on the EIA database for all POUs are used in this report. Note that the 2024 EIA data is preliminary. 3.5 Worst Performing Circuits 3.5.1 Monitoring Individual Circuits ---PAGE BREAK--- Page I 12 Individual circuits emanating from substations are monitored to determine overall performance. There may be indicators that equipment, geography (in large utility territories), or other factors may be affecting performance. APU reviews circuit performance and develops mitigation measures that include one or more of the following: Increased inclusion of automation Accelerated equipment replacements Capacity upgrades and/or re-distribute loads onto adjacent circuits Implementation of branch line fuses or underground devices that separate from the backbone in the event of an outage Installation of automatic reclosers (ARs), which are high voltage interrupting devices that shut off power when detecting fault currents and automatically reclose to restore power if the fault currents have been removed The following tables show the past five years of circuits that had the highest number of outages excluding major events: 2020 Rank Circuit Name Substation SAIFI 1 Sycamore Anaheim 0.035 2 Knott Clair 0.031 3 Walnut Yorba 0.029 4 Debbie Sharp 0.028 5 Newport Southwest 0.026 6 Gilbert Clair 0.022 7 Peralta Yorba 0.021 8 Dixie Anaheim 0.019 9 Armand Hannum 0.018 10 Christine Sharp 0.016 2021 ---PAGE BREAK--- Page I 13 Rank Circuit Name Substation SAIFI 1 Dixie Anaheim 0.059 2 Jeanne Sharp 0.051 3 Christine Sharp 0.049 4 Servite Hannum 0.042 5 Sand Harbor 0.042 6 Spruce Park 0.038 7 Sycamore Anaheim 0.035 8 Ball Clair 0.034 9 Powers Hannum 0.030 10 Dale Clair 0.024 2022 Rank Circuit Name Substation SAIFI 1 Powers Hannum 0.074 2 Sycamore Anaheim 0.073 3 Fry Yorba 0.026 4 Moody Hannum 0.024 5 Dale Clair 0.021 6 Sand Harbor 0.021 7 Jewel Anaheim 0.020 8 Broadway Hannum 0.018 9 East Anaheim 0.015 10 Citron Anaheim 0.013 2023 ---PAGE BREAK--- Page I 14 Rank Circuit Name Substation SAIFI 1 Sycamore Anaheim 0.036 2 Christine Sharp 0.034 3 Gilbert Clair 0.034 4 Jewel Anaheim 0.029 5 Powers Hannum 0.023 6 Dixie Anaheim 0.020 7 Dana Southwest 0.016 8 Sand Harbor 0.015 9 Peralta Yorba 0.014 10 Steven Dowling 0.013 2024 Rank Circuit Name Substation SAIFI 1 Gilbert Clair 0.095 2 Brenda Sharp 0.067 3 Christine Sharp 0.060 4 Sycamore Anaheim 0.051 5 Jewel Anaheim 0.044 6 La Verne Sharp 0.037 7 Broadway Hannum 0.028 8 Walnut Yorba 0.028 9 Jeanne Sharp 0.027 10 Debbie Sharp 0.023 Gilbert Circuit The Gilbert circuit out of Clair substation had the highest frequency of sustained outages in 2024 with six sustained outages, four of which were related to switching actions following a cable failure on an adjacent circuit, that resulted in an interruption to over 2,300 customers. Additional fault indicators/sensors are planned for installations on the Gilbert circuit to minimize the need for testing and hence reduce the frequency of outages in the near future. Similarly, the Brenda circuit out of Sharp Substation had the second highest frequency of sustained outages, one of which was caused by conductor failure that also resulted in a significant number of customer interruptions. Most of the customers affected by these outages were restored within minutes and the remaining customers restored within hours. ---PAGE BREAK--- Page I 15 3.5.2 High Priority Circuits (3-Year Average) As criteria for prioritizing circuits to escalate performance improvement, the top five Worst Performing Circuits (WPCs) are monitored using circuit performance over the past three years excluding MEDs and the three-year averages are shown below: Top 5 Circuits by Frequency (SAIFI) [Averaged between 2022-2024] Rank Circuit Substation SAIFI 1 Sycamore Anaheim 0.054 2 Powers Hannum 0.049 3 Jewel Anaheim 0.045 4 Gilbert Clair 0.045 5 Christine Sharp 0.032 Top 5 Circuits by Duration (SAIDI) [Averaged between 2022-2024] Rank Circuit Substation SAIDI 1 Jewel Anaheim 2.44 2 Knott Clair 1.74 3 Powers Hannum 1.36 4 Fry Yorba 1.28 5 Broadway Hannum 1.17 When a circuit appears on both the top five SAIFI and SAIDI WPCs for two consecutive years, the circuit will be evaluated and a prioritized mitigation plan developed, if technically feasible and economically justified, and the anticipated timeline for completing the mitigation measures. Powers Circuit The Powers circuit out of Hannum Substation met the above-mentioned criteria for further evaluation. Further review of the Powers circuit indicated that it experienced 7 sustained outages in 2022. However, the number of outages during 2023-2024 decreased to 2 on average. This is attributed to installing branch line fuses at several locations to reduce the impacts of metallic balloon contact along this circuit. The Powers circuit performance will be closely monitored in the future to determine whether the poor performance persists, and improvements are required. Most of the outages that resulted in the high customer interruptions were due to either metallic balloons, cable failure or a car hitting a pole. ---PAGE BREAK--- Page I 16 Jewel Circuit The Jewel circuit of Anaheim Substation was one of the top five WPCs that nearly met the WPC’s criteria that warranted further consideration. On average, the Jewel circuit experienced two sustained outages per year. In 2024, it experienced an extended outage interrupting over 2,500 customers that lasted almost 24 hours, due to a cable failure. Like the Powers circuit, the Jewel circuit’s performance will be closely monitored in the future to see if reliability improvements are required. 3.6 Outage Causes Outage causes are evaluated to determine how to structure operational and capital programs. The causes are tracked by frequency and CMI. ---PAGE BREAK--- Page I 17 The top causes of 2024 outages by CMI were due to both cable and transformer failures. APU’s ongoing Direct Buried Cable Replacement Program identifies, prioritizes, and replaces previously installed direct buried cables potentially subject to failure with cables encased in conduits. The frequency of cable failure outages has ranged from 26 to 50 over the past five years, and about 35 on average. Acceleration of direct buried cable replacements is currently in progress. In addition to direct buried cable, cable-in-conduit (CIC) and non-jacketed or cable without a protective layer are beginning to fail, APU continues to expand cable replacement to include different types of underground cable. Although the frequency of cable failure related outages that occurred in 2024 was 40% lower than the prior year, it took longer to restore service. For distribution transformers, APU continues with the replacement strategy of all types of transformers through inspections, age assessment, and types that are more susceptible to outages. In previous years, a significant number of outages were attributed to an older technology of current-protecting (CP) overhead transformers. These units, equipped with internal protective devices and commonly used in residential areas, experienced the highest frequency and duration of outages than any other type of transformer in the system. Through the capital improvement program accelerating the replacement of transformers in 2022, these smaller transformers, both CP and non-CP type, were prioritized annually for replacement due to factors including age, reduced capacity and visible condition, and are being replaced with a newer type of transformer with separate external protection. Supply chain limitations restricted the number of transformers being replaced in the initial phases of the program, however with additional sources identified, equipment is being procured to continue replacing as planned. The number and investment dollars allocated to 2024 equipment replacements are detailed further in this report. Lastly, as an industry, the percentage of all outages resulting from metallic coated balloons contacting the overhead wires and substation equipment has impacted electric reliability. AB 847 (Quirk) approved by the Governor of California on September 18, 2023, requires manufacturers of foil balloons to meet safety benchmark testing standards established by the IEEE to avoid initiating an electrical fault when in contact with energized power lines. IEEE in collaboration with the power industry has worked on developing an industry standard for testing the dielectric ---PAGE BREAK--- Page I 18 performance of metallic balloons in contact with overhead distribution lines, IEEE 2845, with the intent of minimizing metallic balloon caused outages. The legislation was effective January 1, 2023, and once standards are finalized and approved, implementation will be phased in over time. A statewide ban on the metallic balloons that do not meet the approved IEEE standards will be implemented by 2031, and those violators selling them could be subject to fines. Meanwhile, some southern California cities already passed local laws banning the sale of metallic balloons. APU supported the bill and continues to implement public educational programs on how to keep metallic balloons away from power lines. Examples of social media posts regarding metallic balloons are shown below. ---PAGE BREAK--- Page I 19 3.7 Overhead vs. Underground Performance Anaheim’s electric system is comprised of both overhead (OH) and underground (UG) infrastructure. With the implementation of the Underground Conversion Program that started in 1990, the Anaheim electric system is now about 67% underground. In 2024, the number of OH incidents were significantly higher as compared to last year’s incidents. The increase was primarily attributed to more frequent conductor failures and other hardware equipment failures. Generally, the overhead system is more prone to animals, metallic balloons, cars hitting poles, and weather when compared to the underground system. APU has installed a series of lighted diverters on overhead power lines to ward off avian entanglement during the night near the Orange County Water District (OCWD) ground water recharging lake where bird collisions with overhead lines were reported. There have been no reports of bird collisions since the installation of the lighted diverters. The number of UG outages was also higher than last year’s, while the third party/animal and weather-related caused outages performed better. APU’s continued effort in replacing different types of underground cables and ongoing Underground Conversion Program is expected to improve both OH and UG related incidents. ---PAGE BREAK--- Page I 20 Overhead versus Underground Incidents The duration of outages in the overhead system in 2024 was also higher compared to last year’s. This year’s overhead related outages caused by 3rd party/animals were flat while outages caused by overhead conductor/equipment doubled compared to last year. One of the overhead related outages was due to conductor failure that fell on an adjacent circuit and caused an extended outage to over 9,000 customers and required replacement of several spans of conductor. APU continues to expand distribution automation that will isolate faulted circuit sections and restore customers on un-faulted sections faster, therefore reducing interruption minutes. The CMI for the UG portion due to underground equipment also increased compared to the prior years, primarily attributed to underground cables. ---PAGE BREAK--- Page I 21 Overhead versus Underground Minutes of Interruption ---PAGE BREAK--- Page I 22 4. Distribution Equipment Inspection Program 4.1 Overview APU conducts routine inspections of distribution equipment to assess their condition for prioritization of any needed maintenance or replacement. The prioritization method follows industry practice, which aligns with CPUC guidelines as delineated in GO 165. There are three condition levels. They are prioritized based on probable impact on safety or reliability, considering several factors. These factors include facility or equipment type and condition, loading, location, accessibility, and direct or potential impact on safety or reliability. The three conditions and their priority levels are: Condition level Maintenance required. Repair or replace within 90 days, or sooner if there is an imminent safety or reliability problem, at which time an inspector will contact Electric Operations for confirmation with field personnel and to identify and coordinate mitigation procedures. If the condition warrants replacement, a schedule will be developed for work to be performed after ensuring that safety precautions have been taken. Condition level Maintenance needed but deferrable, no immediate safety or reliability concern. Condition level Minor aging, fully serviceable, no safety or reliability concern. Okay for next scheduled inspection. Accordingly, those maintenance items that pose the greatest public safety or system reliability risks will either: be repaired immediately, or if the repair proves too complex to complete immediately or requires materials that are unavailable, a temporary repair will be made to address the risks, and the item will be reprioritized for repairs to be completed at a later date. Each year, equipment is prioritized for replacement, pursuant to an ongoing systematic infrastructure replacement program targeted for reliability improvement. In Fiscal Year 24-2025 (FY 2024), the total capital expenditure budgeted for the following infrastructure upgrades was $75,281,000. Program Total Expenditure T&D Infrastructure Improvements (poles, wires, cables, switches, circuit ties) $21,990,000 Transformer Replacement (OH transformers, UG & Padmount transformers) $27,946,000 Direct Buried Cable Replacement $11,010,000 Underground Conversion Program $14,335,000 Total = $75,281,000 ---PAGE BREAK--- Page I 23 4.2 Equipment Inspection Underground distribution equipment is on a three-year inspection cycle. Surface-mounted and overhead equipment is inspected on a five-year inspection cycle, consistent with GO 165 guidelines. System patrols occur on a routine basis to ensure that immediate issues are addressed as quickly as possible. Detailed inspections are performed for more diagnostic and proactive evaluation of equipment conditions. 4.2.1 Patrol A patrol is a visual inspection of applicable utility equipment and structures that is designed to identify obvious structural problems and hazards. 4.2.1.1 Distribution System Patrols Annual patrols of applicable utility equipment and structures in urban areas are conducted by troubleshooters. Typical issues found during patrols include problems with wood poles or cross arms, equipment in need of repair or replacement, and equipment or lines in need of clearance from vegetation. 4.2.1.2 Streetlight Patrols The electric utility has over 23,000 streetlights in the entire system. Annual patrols are conducted on all major thoroughfares. Repairs are conducted when detected on patrols or reported by residents and businesses. Streetlights in need of repair can be reported through the Anaheim Anytime web portal, 311 phone service, an online streetlight repair request form, and the MyAnaheim smart phone app. In FY 2024, APU staff repaired 1,813 streetlights within 1.3 days of being notified, on average. To date, approximately 90% of high-pressure sodium (HPS) lights have been converted to light emitting diode (LED), which are more energy efficient, provide increased visibility, and last longer. A significant issue that began in 2022 and has continued to accelerate is streetlight wire theft and vandalism. APU is collaborating with the Anaheim Police Department to increase reporting and awareness through social media, community outreach, and neighborhood meetings. Additionally, APU is increasing its investments in tamper-proof bolts, different pull box lids, replacing copper with aluminum wires, and other techniques to mitigate theft and vandalism. In 2024, APU replaced 157 pull-boxes with tamper proof pull-boxes and 46,065 feet of streetlight wire. 4.2.2 Intrusive and Detailed Inspections APU relies on inspections of electrical infrastructure to ensure safety and reliability of service and for consistency with state guidelines (GO 165) and industry best practices. Inspections are critical for assessing the physical condition of infrastructure and for allowing APU to prioritize capital projects. Inspections also proactively identify equipment that may need immediate attention to avoid prolonged unplanned outages. Inspection of the overhead system, which includes approximately 20,000 poles along with associated overhead conductors and equipment, was last completed in 2018, with 2% of the equipment identified for follow-up action and subsequently repaired. The current cycle of overhead inspections began in 2023 and will be completed in 2026. ---PAGE BREAK--- Page I 24 There are over 10,000 underground substructures and above ground pad-mount equipment, and the last cycle was completed in 2022. Approximately 3.5% (330+) of underground structures, above ground pad-mount equipment and associated equipment were identified for maintenance, repair, or replacement. Over 230 electric underground and pad-mount equipment have been repaired and/or replaced to date. The remaining approximately 100 assets, including equipment such as switches and transformers, as well as concrete pads and structures, are being scheduled for replacement as part of the Capital Improvement Program. The next cycle of underground inspection was awarded and is estimated to begin in late 2025. 5. Substation Equipment Inspection and Replacement Program 5.1 Overview APU substations are designed, constructed, operated and maintained in accordance with accepted best industry standards, practices and equipment specifications for their intended use, to maintain safety and reliability. APU’s substation inspection practices follow utility industry best practices using guidelines that meet or exceed the State adopted GO 174 requirements for inspections. Qualified substation personnel inspect each of the 14 substations for anomalies that may include rusting, leakage, or visible signs that maintenance or replacement is warranted. Findings are prioritized based on potential impact on safety or reliability, considering several factors. These factors include facility or equipment type and condition, loading, accessibility, and direct or potential impact on safety or reliability. The three conditions and their priority levels are: Priority level Maintenance required there is an imminent safety or reliability problem that substation field personnel will identify and schedule mitigation procedures. Priority level Maintenance needed but deferrable, no immediate safety or reliability concern. Priority level Minor aging, fully serviceable, no safety or reliability concern. Monitor during next scheduled inspection. In FY 2024, the total capital expenditure budgeted for substation upgrades was $12,250,000. Program Total Expenditure Substation Improvement Projects $12,250,000 These ongoing multi-year improvement projects include replacement of aging switchgears and transformers at Sharp and Southwest substations. These capital projects will add needed substation capacity and improve system reliability. APU also commissioned a new mobile substation that can serve load during emergency events or major planned substation outages without impacting service levels. ---PAGE BREAK--- Page I 25 5.2 Substation Inspections In 2024, there were 168 substation inspections completed. The substation inspection program includes infrared inspections using thermal imaging on all energized components at APU’s substations including transformers, circuit breakers, switches and insulators. Infrared testing may identify where energized equipment has elevated temperatures called a “hot spot” and other anomalies in the electrical system which may lead to premature aging or reduced available capacity of equipment with increased risk to reliability. Last year, 20 “hot spots” were identified through infrared inspections at various locations. Of the 20 identified “hot spots”, 12 requiring immediate attention, were taken out of service and repairs performed to avoid potential substation equipment failure and customer interruption. The remaining 8 “hot spots” on equipment had maintenance performed such as insulator washing and tightening of connections to alleviate the elevated temperature and will be monitored should additional maintenance or replacement be required.