October 9, 2018 INDIANA UTILITY REGULATORY COMMISSION
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STATE OF INDIANA INDIANA UTILITY REGULATORY COMMISSION VERIFIED PETITION OF NORTHERN ) INDIANA PUBLIC SERVICE COMPANY LLC ) FOR (1) APPROVAL OF AN ADJUSTMENT ) TO ITS ELECTRIC SERVICE RATES ) THROUGH ITS TRANSMISSION, ) DISTRIBUTION, AND STORAGE SYSTEM ) IMPROVEMENT CHARGE (“TDSIC”) RATE ) SCHEDULE; (2) AUTHORITY TO DEFER 20% ) CAUSE NO. 44733‐TDSIC‐4 OF THE APPROVED CAPITAL ) EXPENDITURES AND TDSIC COSTS FOR ) RECOVERY IN PETITIONER’S NEXT ) GENERAL RATE CASE; (3) APPROVAL OF ) PETITIONER’S UPDATED 7‐YEAR ) ELECTRIC PLAN, INCLUDING ACTUAL ) AND PROPOSED ESTIMATED CAPITAL ) EXPENDITURES AND TDSIC COSTS THAT ) EXCEED THE APPROVED AMOUNTS IN ) CAUSE NO. 44733‐TDSIC‐3, ALL PURSUANT ) TO IND. CODE § 8‐1‐39‐9; AND (4) ) APPROVAL OF PETITIONER’S RETURN OF ) EXCESS INCOME TAX REVENUE ) RECOVERED THROUGH ITS BASE RATES ) BETWEEN JANUARY 1 AND APRIL 30, 2018 ) THROUGH ITS TDSIC FACTOR. ) PETITIONER’S NOTICE OF SUBSTITUTION OF WITNESS Northern Indiana Public Service Company LLC, by counsel, hereby gives notice that Charles A. Vamos is being substituted for and is adopting the direct testimony and attachments previously prefiled by James E. Zucal. For purposes of convenience, attached hereto are (1) a redline version of the Introduction section of Mr. Vamos’ direct testimony showing the changes from the previously prefiled version of Mr. Zucal’s direct testimony, and (2) a clean copy of Mr. Vamos’ direct testimony. At the evidentiary hearing in this Cause, the clean version of Mr. Vamos’ direct testimony (along with the attachments) will be offered into evidence. Respectfully submitted, _______________________________________ Claudia J. Earls (No. 8468‐49) Bryan M. Likins (No. 29996‐49) NiSource Corporate Services ‐ Legal 150 West Market Street, Suite 600 Indianapolis, Indiana 46204 Phone: (317) 684‐4923 (Earls) Phone: (317) 684‐4922 (Likins) Fax: (317) 684‐4918 Email: [email protected] Email: [email protected] Attorneys for Northern Indiana Public Service Company LLC -2- CERTIFICATE OF SERVICE The undersigned hereby certifies that the foregoing was served by email transmission upon the following: Jeffrey M. Reed Bette Dodd Randall C. Helmen Todd A. Richardson Tiffany Murray Lewis & Kappes, P.C. Office of Utility Consumer Counselor One American Square, Suite 2500 115 W. Washington Street, Indianapolis, Indiana 46282 Suite 1500 South bdodd@lewis‐kappes.com Indianapolis, Indiana 46204 trichardson@lewis‐kappes.com [email protected] [email protected] [email protected] [email protected] Dated this 9th day of October, 2018. _______________________________________ Bryan M. Likins -3- Petitioner’s Confidential Exhibit No. 3 Northern Indiana Public Service Company LLC Cause No. 44733‐TDSIC‐4 Page 1 VERIFIED DIRECT TESTIMONY OF CHARLES A. VAMOSJAMES E. ZUCAL Page No. Introduction ...................................................................................................................... 2 Executing the 7‐Year Plan ............................................................................................ 65 Updates to the 7‐Year Plan ....................................................................................... 1615 Plan Update Process .................................................................................................. 2322 Distinction Between Cap Moves and Cost Variances .......................................... 2423 Actual Costs Incurred ............................................................................................... 2726 Plan Update‐4 ............................................................................................................. 2928 2017 Projects ............................................................................................................... 4241 2018 Projects ............................................................................................................... 4645 2019 Projects ............................................................................................................... 5251 2020 Projects ............................................................................................................... 7574 2021 Projects ............................................................................................................... 7877 2022 Projects ............................................................................................................... 7978 44733 Order Compliance .......................................................................................... 8281 Statutory Compliance ............................................................................................... 8382 Petitioner’s Confidential Exhibit No. 3 Northern Indiana Public Service Company LLC Cause No. 44733‐TDSIC‐4 Page 2 1 INTRODUCTION 2 Q1. Please state your name, business address and title. 3 A1. My name is Charles A. VamosJames E. Zucal. My business address is 801 4 E. 86th Avenue, Merrillville, Eastport Tower, 3001 Leonard Drive, 5 Valparaiso, Indiana 4641046383. I am Director, Electric T&D Engineering 6 the Vice President, Projects and Construction Electric for Northern Indiana 7 Public Service Company LLC (“NIPSCO”). 8 Q2. Please briefly describe your educational and business experience. 9 A2. I received a Bachelor of Science degree in Electric Electronic Engineering 10 Technology from Purdue University Franklin University in Hammond, 11 Indiana Columbus, Ohio in 19923. I received an M.B.A. from Indiana 12 University in Gary, Indiana in 1996 and an M.S. in Electricity Markets from 13 the Illinois Institute of Technology in Chicago, Illinois in 2010. I am a 14 Registered Professional Engineer in the State of Indiana (2000) and a 15 certified Project Management Professional (2012). I began my employment 16 with NIPSCO in 1993 and have more than 25 years’ experience in electric 17 generation, transmission, and distribution as follows: Electrical Engineer 18 (1993‐2000), Asset Manager (2000‐2003), Manager Electric Substations Petitioner’s Confidential Exhibit No. 3 Northern Indiana Public Service Company LLC Cause No. 44733‐TDSIC‐4 Page 3 1 (2003‐2011), Manager Electric Engineering (2011‐2014), Manager Electric 2 Asset Management (2014‐2018) and Director, Electric T&D Engineering 3 (2018 to present). Prior to joining NIPSCO as Vice President, Projects and 4 Construction Electric in September, 2017, I was Director of Regional 5 Engineering & Compliance Programs for American Electric Power, Inc. 6 (“AEP”). In that position I was responsible for providing leadership and 7 technical direction for a multi‐discipline engineering department of 130 8 full‐time employees in support of AEP generation facilities and 9 coordinating and overseeing the NERC reliability and cyber security 10 regulatory compliance requirements for AEP generating facilities. I worked 11 for AEP for 27 years in various positions, including Electrical Engineer 12 Technician (1989‐1993), Construction Coordinator (1993‐1995), Senior 13 Engineer Technologist (1996‐2005), Project Manager (2005‐2011), Manager 14 Startup & Commissioning (2011‐2013), and Director of Construction 15 Services (2013‐2017). In 2007, I also earned my Project Management 16 Professional (PMP) certification from the Project Management Institute and 17 have continuously maintained my certification. 18 Q3. What are your current responsibilities as Director of Electric T&D Petitioner’s Confidential Exhibit No. 3 Northern Indiana Public Service Company LLC Cause No. 44733‐TDSIC‐4 Page 4 1 EngineeringVice President of Electric Engineering of NIPSCO? 2 A3. As Director of Electric T&D Engineering, Vice President of Projects and 3 Construction Electric, I am responsible for directing the Transmission and 4 Distribution Engineering functions for NIPSCO’s line, substation, 5 communications, standards, and protective relaying groups. I currently 6 oversee NIPSCO engineering departments to ensure the safe, reliable, and 7 constructible designs for over $200 million in transmission and distribution 8 projects yearly beginning in 2019. management of electric capital projects 9 throughout NIPSCO, including the Environmental Compliance Project, 10 Generation, Electric Transmission, Distribution, and Storage System 11 Improvement Charge (“TDSIC”) projects, and the Multi‐Value Projects 12 (“MVP”), which consist of 765 kV and 345 kV transmission lines. These 13 responsibilities include all aspects of project management and construction. 14 Q4. Please provide an overview of your role with respect to the 7‐Year Electric 15 TDSIC Plan (also referred to herein as the “7‐Year Plan” or “Plan”). 16 A4. I am responsible for development of the NIPSCO 7‐Year Electric TDSIC 17 Plan taking into consideration safety, reliability, age, condition and overall 18 system performance. This includes development of detailed asset registers Petitioner’s Confidential Exhibit No. 3 Northern Indiana Public Service Company LLC Cause No. 44733‐TDSIC‐4 Page 5 1 defining the projects included in the Plan. This responsibility also includes 2 maintaining the risk model and updates to the condition‐based assessment 3 of assets in the Plan and making future updates to the Plan as appropriate. 4 Additional responsibilities include development of the project cost 5 estimates and supporting the financial performance of the projects included 6 in the 7‐Year Electric TDSIC Plan. 7 Q5. Have you previously testified before this or any other regulatory 8 commission? 9 A5. No. Yes. I previously submitted testimony before the Indiana Utility 10 Regulatory