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Composite p Poles:Longest g Service Life,LowMaintenance

EdisonElectricInstitute FallEEITransmission,Distribution&MeteringConference October12,2009 SouthernCaliforniaEdison ScottSmith,ManagerofApparatusEngineering RSTechnologies GalenFecht,Director,Commercial

CompositePoles:LongServiceLife,LowMaintenance
CompositePoleProperties Composite PoleCharacheristics Non conductive saferforlivelineinstallations reducedprobabilityoftouchorsteppotentials increaseinsystembasicinsulationlevel Lightweight

CompositePoles:LongServiceLife,LowMaintenance
CompositePoleProperties Selfextinguishing Composite PoleCharacheristics passesCalifornia Dept. ofForestryandFirefastmovingbrushfiretest Highfracturetoughness Canabsorbconsiderableelasticstrainenergycomparedtoothermaterials Highestspecificstrengthofanypoletype

CompositePoles:LongServiceLife,LowMaintenance
CompositePoleProperties Usecommerciallyavailablestandardhardware Composite PoleCharacheristics Wellreceived byconsumers (aesthetics) Environmentallyresponsibleinfrastructuresolution Preservativesarenotrequiredtoextendtheservicelife Noleachingofpotentiallyharmfulchemicals Nosoilremediation Nodisposalcosts Engineeredforreliabilityandrepeatableperformance Lowcoefficientofvariance(COV) 5%lowerexclusionlimit(LEL) CompatiblewithPowerLineSystems(PLS)software

CompositePoles:LongServiceLife,LowMaintenance
CompositePoleProperties LongServiceLife Corrosion,RotandPestResistant Composite PoleCharacheristics Hydrophobic surface Resistanttoairborneandroadsidesaltandchemicals Excellentcoastalandwetareaperformance Impervioustotermites, termites woodpeckersandotherpests Temperaturerangeof76F[60C]to+167F[+75C] IntegratedaliphaticUVprotection 80yearexpectedservicelife

CompositePoles:LongServiceLife,LowMaintenance

CompositePoleCharacheristics

CompositePoles:LongServiceLife,LowMaintenance

TheNetBenefitsofCompositePoles
CompositePoleCharacheristics

80yearservicelifeinclimateswhereother poletypesonlylast10to40years Littletonomaintenancerequired,with inspectioncyclesof10to20years

CompositePoles:LongServiceLife,LowMaintenance

ExpectedUtilityPolePerformance
CompositePoleCharacheristics

MartinRollins,P.E. TheHardeningofUtilityLines ImplicationsforUtilityPole DesignandUse NorthAmericanWoodPoleCouncil,2007 Ingeneral,thesystemperformedasexpectedandpotential actionstohardenthesystem y couldbevery yexpensive p andthe potentialbenefitsareunquantifiable.

CompositePoles:LongServiceLife,LowMaintenance

CompositePoleCharacheristics

Buthowdowequantifytheimpacttothe utilityoperation,andmoreimportantlythe costtotheconsumer?

1. ImpactontheNetPresentValue(NPV)of thegrid 2. ImpactonInternalRateofReturn(IRR)of thegrid quantifypaybackperiod 3 Quantify 3. Q tif annualized li dcost tsavings i

CompositePoles:LongServiceLife,LowMaintenance

Generalized expressionbasedon CompositePole Characheristics DiscountedCashFlow(DCF)analysisfor calculatingtheNPVofautilitygrid

CompositePoles:LongServiceLife,LowMaintenance

Presentvalueofchangeinpolelife CompositePoleCharacheristics cyclecostsasaresultofusing compositepoles(summedforallpoles)

Pole P l expensesareacash houtflow, tfl th therefore f thi this presentvaluesumissubtractedfromtheNPVofthe grid.Whenthesecostsarereduced,thenetchange isnegative,andthereisapositiveimpactonthe NPVof fthegrid g

CompositePoles:LongServiceLife,LowMaintenance

CompositePoleCharacheristics

PresentvalueofDepreciationTaxShield (DTS)asaresultofcompositepole capitalpremium(summedforallpoles)

DTSis i acash hinflow, i fl therefore th f this thi present tvalue l sum isaddedtotheNPVofthegrid.Whencapital expensesincrease,thenetchangeispositive,and thereisapositiveimpactontheNPVofthegrid

CompositePoles:LongServiceLife,LowMaintenance

CompositePoleCharacheristics

Theimpact Th i tonthe th IRRof fthe th grid idresulting lti from f a singlecompositeutilitypolecanbeevaluatedby subtractingtheoldNPVfromthenewNPV(withp=1), andsettingtheresultequaltozero.

CompositePoles:LongServiceLife,LowMaintenance

CompositePoleCharacheristics

CompositePoles:LongServiceLife,LowMaintenance

CompositePoleCharacheristics

WoodPoleBaseCase Poleservicelife(l) ): Averagediscountrate(d): Averagerateofinflation(i): Poleacquisitioncost(A0): P l removal Pole lcost t(R0): ) Annualpolemaintenancecost(M0):

30y years 11.0% 3.0% $3,000 $1 500 $1,500 $75

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