A Study in Disaster Planning

1. A Study in Disaster Planning APPA Business & Financial Conference Savannah, Georgia September 15, 2009 Terry Huval, P.E. Director Lafayette Utilities System Lafayette, LA

2. Lafayette Utilities System • 30 Miles North of the Gulf of Mexico • Electric (61,000), Water and Wastewater

3. Lafayette Utilities System • Long History of System Investments • Active Tree Trimming Program

4. Your Response To Natural Disasters • Provides your utility with an “Opportunity” • Can make your utility a Hero, • Or, a Failure in the eyes of your customers • Requires proper PLANNING and EXECUTION to be successful

5. A Perspective:Customer Expectations Have Changed • Decades ago, customers were more understanding of long outages in the aftermath of major storms, such as hurricanes • In 1992, Hurricane Andrew affected large portions of South Louisiana • One small electric co-operative did not properly prepare • While the remainder of the area utilities completed their service restoration within 10 days, this co-op took more than 3 weeks • Within a year the customer owners of this co-op forced it to be sold to an investor-owned utility (with much higher electric rates!)

6. Customer Expectations Have Changed(cont.) • In 2002, Hurricane Lili interrupted all electric service in an 8 parish area, including Lafayette • Lafayette Utilities System began restoring service faster than any other utility in this area • Within hours after LUS restored service to its first customers, a number of remaining customers demanded that their service be restored immediately • The conclusion: Customers do not want excuses – they want immediate action Hurricane Lili, October 2002

7. Must provide FLEXIBILITY Must be COMMUNICATED to your employees Must be WELL THOUGHT OUT Must be SHARED with the public Planning Is The Key

8. LUS Storm Restoration Plan • A living document that provides specific tasks to be done before, during, and after a major storm • It is reviewed and updated each year, in advance of the hurricane season

9. Establish threshold for action Develop “Emergency Organizational Chart” Determine additional resources you will need Key Components of the Plan • When to increase inventories • When to activate emergency response operations • Most employees will work in non-traditional roles • Provide annual training for employees for these new duties • Outside line crews (public power - contractors) • Tree trimming crews • Contract technician support • Enlist retirees

10. Plan for logistics support Communicate with governing board and the public Determine priority of restoration Key Components to a Plan (cont.) • Material deliveries • Food provisions • Lodging • Advanced Media Support is Important • Advanced Direct Mail to customers • Hospitals, police, fire, water plants, sewer plants, media outlets

11. Training Prior To Hurricane Season Key Components to a Plan (cont.) • Employee Duty Reassignments: • Crew Liaisons • Phone Team • Lodging Logistics Team • Public Information/Media • Food Team

12. Electrical Team Coordinators Key Components to a Plan (cont.) • Virtually Self-Contained Work and Assessment Teams, complete with line crews, tree trimming crews, heavy equipment operators • Responsible for all safety checks and line clearances • Reduces communications and transportation bottlenecks • Easier coordination of work assignments and status updates

13. August 29, 2008 To: LUS Employees • Hurricane Gustav is currently a Category 3, with 115 mph winds heading N/W at 15 mph with a span of 150 miles. • Estimated landfall is Monday at the south of Lafayette at a category 3 with 120 mph winds. • Civil Leave was declared starting Monday, September 1, at 8:00 am until further notice. • Anyone not remaining at an LUS Facility during the storm shall report to work Monday after the winds drop below 40 mph, unless your team has already established your time shift. Should you have major damage to your home and/or property, or debris blocking roads, it is the employee’s responsibility and duty to call their Emergency Team Leader. • General Employee Instructions • Communications and Vehicle Team is to gather radios and batteries at Walker Road. When the storm winds drop below 40 mph, this team shall set up at the Cajundome. No rental vehicles are needed at this time. Call your Team Leader for additional instructions. • Contact Contractor Crew shall meet in Matt Broussard’s office immediately. Anticipate getting 50 line crews and 40 tree trimming crews. • Contractor Check-In Team shall setup immediately. Meter Reader Liaisons are to meet the Team Leader at 4:00 pm this afternoon at the Cajundome. • Damage Survey Team meeting shall be held at 4:00 pm this afternoon in the Training Center (Classroom). • ….. Going Operational – General Employee Instructions

14. Despite the ‘Best Laid Plans’ – Unique Circumstances • Example:2005 Hurricanes Katrina and Rita • No Hotel Rooms Available • Evacuees from Katrina filled all hotels • No Diesel Fuel Available • Due to increased military and contractor presence • No Ice • Due to high demand in the Gulf South • Be Flexible to deal with the Unexpected • A properly executed plan gives you room to make changes

15. ! All lights are out: no generation source is available ! Hotel rooms are not available ! Promised contract line crews get diverted to investor-owned utilities ! Radio communications are log jammed ! Not everyone likes “Cajun” food Examples of Complications

16. Continuous Improvement Process • Mutual Aid Agreements • Quick Public Power Help • Employee Duty Reassignments • Advanced Training • Electrical Team Coordinators • Reduced Bottlenecks Despite 60% of customers out, power was restored to all LUS customers within 3 days of storm’s passing

17. Customers can be Very Impatient! Other Things To Consider Be Fully Accessible to the Media • They can be your friend or your enemy • If they feel you are “unavailable” or “spinning the truth”, the public will get a bad message • If they are involved with you and your team, they can be a tremendous asset • After 3 days without power, some customers become very intolerant • Get tight security for your facilities early • Keep customers from coming in and disrupting your operations • Beware of customers posing as vendors’ employees

18. Other Things To Consider FEMA • Essential Funding Source, but very unpredictable • Need staff to become familiar with the latest regulations • For Hurricane Lili (2002) • $5.5 million cost (Category F as “Utilities”) • FEMA reimbursement of 75% • State reimbursement of 10% • Net out-of-pocket $825,000 • For Hurricane Rita (2005) • $1.9 million cost (Category B as “Debris Removal”) • FEMA reimbursement of 100% • Much debate with FEMA • Took over a year to settle • For Hurricane Gustav (2008) • $3.7 million cost (Category B & F) • FEMA has not yet finalized the reimbursement

19. Working with FEMA FEMA • All Costs captured in one Account • Keep track of Inventory • Not for everyday O&M • Have one point person to collect all costs • Documentation • Have a working relationship with FEMA

20. Provide useful information to customers in advance Other Things To Consider (cont.) • LUS Hurricane Handbook • Well-received by customers and the media • Evacuation Routes • Special Needs Customers • Disaster Supply Checklist • Generator Safety • Family Disaster Plan • Shelter Information

21. To Summarize … • Advanced and thoughtful preparation is the key • Have a thorough, written plan • Communicate with employees, your governing authority, the public and the media • Be quick on your feet when the unexpected comes • Count on Public Power utilities to be your best allies • Work to get your customers on before your competitors • Stay on top of the game • Make your response to disaster an opportunity to make your customers proud of your utility

22. Questions and Comments Lafayette Utilities System P.O. Box 4017-C Lafayette, LA 70502 www.LUS.org