[email protected] How an Electric Utility can get ready for FEMA Marci Lopez P.E

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How an Electric Utility can get How an Electric Utility can get ready for FEMAready for FEMA

Marci Lopez P.E.Marci Lopez P.E.


In this presentation I am not In this presentation I am not representing FEMA, but am representing FEMA, but am

speaking as a former electric speaking as a former electric utility manager utility manager


What is the my Presentation What is the my Presentation Plan ?Plan ?


My Presentation PlanMy Presentation Plan

The first part of the Presentation will be an The first part of the Presentation will be an overview of those FEMA rules that most overview of those FEMA rules that most directly affect an electric utility. directly affect an electric utility.

I will I will assumeassume that you are not familiar with that you are not familiar with the FEMA process. Therefore, feel free to the FEMA process. Therefore, feel free to ask questions as I review some important ask questions as I review some important rulesrules


My Presentation PlanMy Presentation Plan

The second part of the Presentation will be The second part of the Presentation will be a discussion of strategies the utility may a discussion of strategies the utility may want to take, with the want to take, with the goalgoal of getting all of of getting all of its eligible money as rapidly as possible.its eligible money as rapidly as possible.

At that time, I will ask At that time, I will ask youyou questions questions concerning the advantages and concerning the advantages and disadvantages of these strategiesdisadvantages of these strategies


Importance to an Electric UtilityImportance to an Electric Utility

While FEMA makes very sure the rules are While FEMA makes very sure the rules are well known, the typical electric utility does not well known, the typical electric utility does not often know how to use those rules to often know how to use those rules to itsits best best advantageadvantage

The Baseball AnalogyThe Baseball Analogy


Does the actions of the electric Does the actions of the electric utility really have an impact on utility really have an impact on

the FEMA process ?the FEMA process ?


The utility’s capability to quickly The utility’s capability to quickly provide FEMA with: provide FEMA with:

completecomplete information will directly information will directly determine determine whenwhen the utility will get its the utility will get its moneymoney

accurateaccurate cost data will directly determine cost data will directly determine how muchhow much money the utility will get money the utility will get


What is the basic element of the What is the basic element of the FEMA process?FEMA process?


The Project The Project

A A ProjectProject is a is a set of documentationset of documentation which: which:

pertainspertains to specific damaged facilities and to specific damaged facilities and equipment and the associated costs for equipment and the associated costs for their repair and replacementtheir repair and replacement

pertainspertains only to the costs of performing only to the costs of performing specific activities such as debris removal, specific activities such as debris removal, temporary electric service restoration and temporary electric service restoration and handling of electric trouble calls handling of electric trouble calls


The documentation for a Project The documentation for a Project must include what elements ?must include what elements ?


Documentation ElementsDocumentation Elements

Damage Description and DimensionsDamage Description and Dimensions

Scope of WorkScope of Work

Costs associated with the Scope of WorkCosts associated with the Scope of Work


What is a Damage Description ?What is a Damage Description ?


A Damage Description A Damage Description

A A descriptiondescription of the of the specific causespecific cause of of damage or condition (high winds, damage or condition (high winds, floodwater, shaking, fire)floodwater, shaking, fire)

Example- As a result of Hurricane Mary on Example- As a result of Hurricane Mary on April 17,2005, high winds damaged……April 17,2005, high winds damaged……


What are Damage What are Damage Dimensions ?Dimensions ?


Damage DimensionsDamage Dimensions

A A descriptiondescription of the of the damagesdamages to a facility, to a facility, including the including the damage dimensionsdamage dimensions

Examples- 5 poles, 400 ft of conductor, Examples- 5 poles, 400 ft of conductor, 127 conductor splices, 8 distribution 127 conductor splices, 8 distribution transformers, Liberty Station 230 Kv bus, 4 transformers, Liberty Station 230 Kv bus, 4 tons of debris on right of way, 1200 tons of debris on right of way, 1200 service outagesservice outages


What is a Scope of Work ?What is a Scope of Work ?


Scope of WorkScope of Work A A descriptiondescription of the permanent repairs or of the permanent repairs or

replacement, debris removal and debris replacement, debris removal and debris disposition, temporary repairs and disposition, temporary repairs and handling service trouble callshandling service trouble calls

Examples – 10 distribution poles were Examples – 10 distribution poles were replaced, 1000 ft of 15Kv conductor will be replaced, 1000 ft of 15Kv conductor will be replaced, replaced,


How are Costs associated with How are Costs associated with the Scope of Work included in the Scope of Work included in

the Project submittal ?the Project submittal ?


Costs associated with the Costs associated with the Scope of WorkScope of Work

Actual CostsActual Costs are submitted as Cost are submitted as Cost Summaries and included as part of the Summaries and included as part of the ProjectProject

Future and Estimated CostsFuture and Estimated Costs are included are included as part of the Scope of Workas part of the Scope of Work


For future work, what detailed For future work, what detailed cost estimates are required ?cost estimates are required ?


Future Work Cost Estimates Future Work Cost Estimates

Cost estimates should correlate with Cost estimates should correlate with documented damage description and documented damage description and detailed scope of workdetailed scope of work

Cost estimates should be based on: Cost estimates should be based on: Purchase pricesPurchase prices Contractor bidsContractor bids Calculated Per Unit costsCalculated Per Unit costs


What are the most common FEMA What are the most common FEMA work categories associated with an work categories associated with an

electric utility ?electric utility ?


Common Work Categories Common Work Categories Cat ACat A Debris Removal Debris Removal

Cat B Cat B Emergency Protective Measures Emergency Protective Measures (Temporary Repairs) (Temporary Repairs)

Cat F Utilities (Permanent Repairs)Cat F Utilities (Permanent Repairs)

Each Project may only have Each Project may only have oneone Category Category and and oneone Declared County Declared County


What are Multiple Sites ?What are Multiple Sites ?


Multiple SitesMultiple Sites Multiple Sites are damage sites having the Multiple Sites are damage sites having the

same characteristicssame characteristics

For Debris Removal, multiple sites may be For Debris Removal, multiple sites may be combinedcombined into into oneone overall Damage overall Damage Description and Description and oneone overall Scope of Work overall Scope of Work

For Emergency Protective Measures, For Emergency Protective Measures, multiple temporary repair sites may be multiple temporary repair sites may be combinedcombined into into oneone overall Damage overall Damage Description and Description and oneone overall Scope of Work overall Scope of Work


How are Multiple Sites for Lines How are Multiple Sites for Lines handled ? handled ?


Multiple Sites for LinesMultiple Sites for Lines

Multiple distribution line repair sites may Multiple distribution line repair sites may be be combinedcombined into into one one damage description damage description with an estimated number of splices or with an estimated number of splices or length of linelength of line

Include a Include a markedmarked distribution line map of distribution line map of the conductor replaced or splicesthe conductor replaced or splices


Are there any Restrictions on Are there any Restrictions on Costs and Damages ? Costs and Damages ?


Project Damages and CostsProject Damages and Costs

The repair or replacement of a damaged The repair or replacement of a damaged facilities must be the utility’s legal facilities must be the utility’s legal obligation or responsibilityobligation or responsibility

The facilities must have been damaged or The facilities must have been damaged or the costs must have been incurred as a the costs must have been incurred as a direct result of the storm. direct result of the storm.

Upgrades required to meet building codes Upgrades required to meet building codes and standards, at the time of the and standards, at the time of the disaster,are disaster,are eligibleeligible costs costs


How is Volunteer/Donated How is Volunteer/Donated Labor handled ?Labor handled ?


Volunteer / Donated LaborVolunteer / Donated Labor

Volunteer / donated labor can be used as Volunteer / donated labor can be used as credit for the non-FEMA allocation credit for the non-FEMA allocation

FEMA will pay only for costs that were FEMA will pay only for costs that were actually incurred by the Utility actually incurred by the Utility


What is Debris Removal ?What is Debris Removal ?


Debris RemovalDebris Removal

Debris Removal involves removing debris from Debris Removal involves removing debris from line rights-of-way, stations and utility property line rights-of-way, stations and utility property and disposing of the debrisand disposing of the debris

For For Force Account Labor,Force Account Labor, used for debris used for debris removal, only removal, only overtimeovertime is eligible. is eligible.

For For Contract Labor,Contract Labor, used for debris removal, used for debris removal, both both regular timeregular time and and overtimeovertime are eligible are eligible


What are Emergency Protective What are Emergency Protective Measures ?Measures ?


Emergency Protective MeasuresEmergency Protective Measures Emergency Protective Measures involve Emergency Protective Measures involve

the following:the following: Answering electric trouble callsAnswering electric trouble calls Performing Performing temporarytemporary repairs and repairs and

service restorationservice restoration

For For Force AccountForce Account Labor, only Labor, only overtimeovertime is is eligible. For eligible. For ContractContract Labor, both Labor, both regularregular timetime and and overtimeovertime are eligible are eligible


What is Permanent Repair ?What is Permanent Repair ?


Utilities (Permanent Repair)Utilities (Permanent Repair)

UtilitiesUtilities involves the permanent repair of involves the permanent repair of facilities, equipment and linesfacilities, equipment and lines

FEMA will pay to restore the facility to its FEMA will pay to restore the facility to its pre-disaster condition pre-disaster condition


Who determines what is Who determines what is damaged ?damaged ?


Damaged Facilities and Damaged Facilities and EquipmentEquipment

The Utility The Utility identifiesidentifies the damage and the the damage and the FEMA representative FEMA representative inspectsinspects the damage the damage to determine whether it is eligible.to determine whether it is eligible.

The FEMA representative must The FEMA representative must seesee the the damage damage


What if repairs or replacement What if repairs or replacement have to be made before FEMA have to be made before FEMA

arrives ?arrives ?


Immediate Repairs or ReplacementImmediate Repairs or Replacement

Take pictures of the damageTake pictures of the damage Get the equipment repairedGet the equipment repaired If a qualified person states that it would If a qualified person states that it would

cost more to repair then purchase, then cost more to repair then purchase, then purchase a replacementpurchase a replacement

Submit photos, a description of the Submit photos, a description of the damage, an estimated cost to repair and damage, an estimated cost to repair and an invoice, if purchasedan invoice, if purchased


What is Hazard Mitigation ? What is Hazard Mitigation ?


Hazard Mitigation Hazard Mitigation Mitigation involves evading costs for Mitigation involves evading costs for a a

future similar stormfuture similar storm to the one that caused to the one that caused this damagethis damage

FEMA will usually pay an FEMA will usually pay an additional additional amount,amount, of the cost to return the damaged of the cost to return the damaged facility to its pre-disaster condition, for facility to its pre-disaster condition, for hazard mitigation hazard mitigation

For utilities, Mitigation is usually not timelyFor utilities, Mitigation is usually not timely


How is Insurance handled ?How is Insurance handled ?


Self InsuranceSelf Insurance

If the utility has an established self If the utility has an established self insurance plan with a schedule of covered insurance plan with a schedule of covered facilities, then the covered facilities are not facilities, then the covered facilities are not eligible up to the limit of self insuranceeligible up to the limit of self insurance


InsuranceInsurance

Be prepared to provide FEMA with Be prepared to provide FEMA with insurance documentation showing what insurance documentation showing what facilities are insuredfacilities are insured

FEMA expects the utility to receive FEMA expects the utility to receive maximum recovery for the insured facilitiesmaximum recovery for the insured facilities

FEMA will usually pay the deductableFEMA will usually pay the deductable


What typical costs are eligible What typical costs are eligible for reimbursement ?for reimbursement ?


Typical Eligible CostsTypical Eligible Costs LaborLabor

Equipment (Vehicles/ Construction Equipment)Equipment (Vehicles/ Construction Equipment)

Rented EquipmentRented Equipment

MaterialMaterial

ContractContract


For work that is For work that is completedcompleted, how , how is the cost information submitted is the cost information submitted

to FEMA ?to FEMA ?


Completed Work SummariesCompleted Work Summaries Force Account LaborForce Account Labor

Force Account EquipmentForce Account Equipment

Rented EquipmentRented Equipment

MaterialMaterial

ContractContract


Does the required information Does the required information have to be submitted on FEMA have to be submitted on FEMA

Summary forms ? Summary forms ?


Information SubmittalsInformation Submittals

Required information does Required information does notnot have to be have to be submitted on FEMA formssubmitted on FEMA forms

If the utility can print out the required If the utility can print out the required Summary information, FEMA will accept itSummary information, FEMA will accept it


Who is included in Force Who is included in Force Account Labor ?Account Labor ?


Force Account LaborForce Account Labor Force Account Labor only includes the Force Account Labor only includes the

actual worker, directly performing the scope actual worker, directly performing the scope of work and his/her first level supervisorof work and his/her first level supervisor

If a higher-level person is actually If a higher-level person is actually performing the duties of either the worker or performing the duties of either the worker or the first level supervisor, that person can be the first level supervisor, that person can be included provided you show the person’s included provided you show the person’s actual titleactual title and use the and use the pay ratepay rate for the for the worker or first level supervisor position worker or first level supervisor position


Can fringe benefits be included Can fringe benefits be included in Force Account labor costs ? in Force Account labor costs ?


Fringe BenefitsFringe Benefits

Fringe Benefits can be can included as a Fringe Benefits can be can included as a percentage of the hourly regular time and percentage of the hourly regular time and overtime labor rates provided you show overtime labor rates provided you show the components of those the components of those percentagespercentages

The same The same averageaverage fringe benefits fringe benefits percentagespercentages (regular time and overtime) (regular time and overtime) may be used for all employees may be used for all employees


What Equipment Cost Rates What Equipment Cost Rates should be used ?should be used ?


Equipment Cost RatesEquipment Cost Rates

For For Force Account Equipment CostsForce Account Equipment Costs, use , use the FEMA cost codes and equipment ratesthe FEMA cost codes and equipment rates

The FEMA equipment rates The FEMA equipment rates dodo include fuel include fuel costscosts


How are material handling and How are material handling and warehousing costs included ?warehousing costs included ?


MaterialMaterial

For material costs, For material costs, do not includedo not include handling handling or warehouse chargesor warehouse charges

For purchased material, show copy of For purchased material, show copy of invoiceinvoice

Material Costs can include food, lodging Material Costs can include food, lodging and meals, provided these costs are part and meals, provided these costs are part of legal agreementsof legal agreements


Does FEMA impose any specific Does FEMA impose any specific procurement requirements on procurement requirements on

contract work ?contract work ?


Procurement of Contract WorkProcurement of Contract Work

Use your Use your establishedestablished normal or normal or emergency procurement proceduresemergency procurement procedures

Contract work is defined as work done by Contract work is defined as work done by other than Force Account. other than Force Account.


Mutual Aid ContractsMutual Aid Contracts

A mutual aid contract must be in place A mutual aid contract must be in place prior to the work being doneprior to the work being done

If possible, have the Mutual Aid contractor If possible, have the Mutual Aid contractor perform all of the Category B emergency perform all of the Category B emergency protective measures work ( temporary protective measures work ( temporary work)work)


What are the definitions of a What are the definitions of a FEMA small and large project ?FEMA small and large project ?


Small and Large ProjectsSmall and Large Projects A A Small ProjectSmall Project is a project having a total is a project having a total

value less than about $55,500.value less than about $55,500.

A A Large ProjectLarge Project is a project having a total is a project having a total value greater than about $55,500.value greater than about $55,500.


Who determines whether a Who determines whether a project is large or small ?project is large or small ?


Small Project vs. Large ProjectSmall Project vs. Large Project

The The utilityutility defines the project and therefore defines the project and therefore determines if is a small or large projectdetermines if is a small or large project

The The utilityutility can take several can take several smallsmall projects, projects, having the same category of work, and having the same category of work, and combine them into a combine them into a largelarge project project


How does FEMA treat a Small How does FEMA treat a Small Project ?Project ?


Small ProjectSmall Project The Utility gets its money The Utility gets its money up frontup front , ,

whether the work has been started or notwhether the work has been started or not

If the utility does the work as defined by If the utility does the work as defined by the scope of work and spends the scope of work and spends lessless, the , the utility keeps utility keeps the differencethe difference

If the utility does the work as defined by If the utility does the work as defined by the scope of work and spends the scope of work and spends moremore, then , then the utility pays the utility pays the differencethe difference


How does FEMA treat a Large How does FEMA treat a Large Project ?Project ?


Large ProjectLarge Project The utility gets the money The utility gets the money only after it only after it

incurs the costincurs the cost

When the utility finishes the scope of work When the utility finishes the scope of work and spends less, the utility will be and spends less, the utility will be reimbursed that amountreimbursed that amount

When the utility reaches the total cost When the utility reaches the total cost amount and has not finished the scope of amount and has not finished the scope of work, the utility can usually finish the work, the utility can usually finish the scope of work and be reimbursed the scope of work and be reimbursed the additional amountadditional amount


What are the more important What are the more important elements of a Small and Large elements of a Small and Large

Project ?Project ?


More Important Elements More Important Elements

Small Project – The Cost Estimate & The Small Project – The Cost Estimate & The Scope of WorkScope of Work

Large Project – The Scope of WorkLarge Project – The Scope of Work


What strategies should the utility What strategies should the utility define ?define ?


Force Account Labor and Force Account Labor and ContractingContracting

Debris Removal, includes removal, Debris Removal, includes removal, chipping or cutting up and disposalchipping or cutting up and disposal

Emergency Protective Measures, includes Emergency Protective Measures, includes temporary repairs and handling trouble temporary repairs and handling trouble callscalls


Small and Large ProjectsSmall and Large Projects

Criteria for identifying small and large Criteria for identifying small and large projectsprojects

Advantages of small and large projectsAdvantages of small and large projects


What procedures should the utility What procedures should the utility consider implementing ?consider implementing ?


Identifying Damages and Costs Identifying Damages and Costs

Make Make everyevery employee responsible for employee responsible for identifying any potentially storm related identifying any potentially storm related damages and costs in order to insure that damages and costs in order to insure that FEMA submittals are complete FEMA submittals are complete


Document Code and County Document Code and County NameName

All potentially storm related documents All potentially storm related documents should have a code that identifies them as should have a code that identifies them as being storm related and the name of the being storm related and the name of the county where that cost occurredcounty where that cost occurred


Damaged Equipment ProcedureDamaged Equipment Procedure

Take photos of the damageTake photos of the damage Get the equipment repairedGet the equipment repaired If a qualified technician states that it would If a qualified technician states that it would

cost more to repair then purchase, then cost more to repair then purchase, then purchase a replacementpurchase a replacement

Submit photos, a description of the Submit photos, a description of the damage, an estimated cost to repair and damage, an estimated cost to repair and an invoice, if purchasedan invoice, if purchased


What Procedures should the What Procedures should the Utility consider modifying ?Utility consider modifying ?


Storm Related DocumentsStorm Related Documents

Modify procedures to direct copies of all Modify procedures to direct copies of all storm related documents to designated storm related documents to designated persons who will review and organize persons who will review and organize copies of the source documents for their copies of the source documents for their organizational unitorganizational unit


Preparation of Actual Cost Preparation of Actual Cost SummariesSummaries

Modify procedures to automatically Modify procedures to automatically prepare FEMA summaries from the prepare FEMA summaries from the original source dataoriginal source data


What plans should the Utility What plans should the Utility consider developing ?consider developing ?


Hazard Mitigation PlansHazard Mitigation Plans

An overall mitigation plan should be An overall mitigation plan should be adopted and implemented as finances adopted and implemented as finances allowallow

Develop some standard mitigation Develop some standard mitigation schemes for specific facilities schemes for specific facilities


RememberRemember Disasters are going to happen and the Disasters are going to happen and the

utility will deal with FEMAutility will deal with FEMA

The costs of preparing now will be more The costs of preparing now will be more then offset, especially if the utility is then offset, especially if the utility is bleeding money to restore the electric bleeding money to restore the electric system. The utility does not have the system. The utility does not have the option of delaying system restoration option of delaying system restoration


The payoff for a utility preparing The payoff for a utility preparing in advance is a in advance is a quickerquicker

reimbursement of the damage reimbursement of the damage costs to which the electric utility costs to which the electric utility

is eligibleis eligible


Thank you for your attention Thank you for your attention and participationand participation