CAUSE NO. 45557 Petitioner’s Exhibit No. 2 Northern Indiana Public Service Company LLC Page 1 Table of Contents Introduction ...................................................................................................................... 2 Summary of NIPSCO’s 2021‐2026 Electric Plan ........................................................ 12 Development of the 2021‐2026 Electric Plan .............................................................. 19 Risk Reduction ................................................................................................................ 23 Flexible Investment Plan ............................................................................................... 28 Plan Update Process ...................................................................................................... 36 Cost Estimates and Estimate Development ............................................................... 38 Contingency As a Component of Estimation ............................................................ 49 Aging Infrastructure Investments ............................................................................... 53 Aging Infrastructure Projects ....................................................................................... 60 System Deliverability Projects ...................................................................................... 78 Grid Modernization Projects ........................................................................................ 84 Economic Development Projects ................................................................................. 92 Execution of the 2021‐2026 Electric Plan .................................................................... 93 Eligible Improvements .................................................................................................. 95 Conclusion ...................................................................................................................... 96 Petitioner’s Exhibit No. 2 Northern Indiana Public Service Company LLC Page 2 VERIFIED DIRECT TESTIMONY OF CHARLES A. VAMOS 1 INTRODUCTION 2 Q1. Please state your name, business address, and job title. 3 A1. My name is Charles A. Vamos. My business address is 801 E. 86th Avenue, 4 Merrillville, Indiana 46410. I am Director, Electric T&D (Transmission and 5 Distribution) Engineering for Northern Indiana Public Service Company 6 LLC (“NIPSCO” or “Company”). 7 Q2. Please briefly describe your educational and business experience. 8 A2. I received a Bachelor of Science degree in Electric Engineering Technology 9 from Purdue University in Hammond, Indiana in 1992. I received an 10 M.B.A. from Indiana University in Gary, Indiana in 1996 and an M.S. in 11 Electricity Markets from the Illinois Institute of Technology in Chicago, 12 Illinois in 2010. I am a Registered Professional Engineer in the State of 13 Indiana (2000) and a certified Project Management Professional (2012). I 14 began my employment with NIPSCO in 1993 and have more than 25 years’ 15 experience in electric generation, transmission, and distribution as follows: 16 Electrical Engineer (1993‐2000), Asset Manager (2000‐2003), Manager 17 Electric Substations (2003‐2011), Manager Electric Engineering (2011‐2014), Petitioner’s Exhibit No. 2 Northern Indiana Public Service Company LLC Page 3 1 Manager Electric Asset Management (2014‐2018) and Director, Electric 2 T&D Engineering (2018 to present). 3 Q3. What are your responsibilities as Director of Electric T&D Engineering? 4 A3. As Director of Electric T&D Engineering, I am responsible for directing the 5 Transmission and Distribution Engineering functions for NIPSCO’s line, 6 substation, and protective relaying groups. I currently oversee NIPSCO 7 engineering departments to ensure the safe, reliable, and constructible 8 designs for over $200 million in transmission and distribution projects 9 yearly. 10 Q4. What are your responsibilities with respect to NIPSCO’s electric TDSIC 11 projects? 12 A4. I was responsible for development of NIPSCO’s Electric TDSIC Plan for the 13 period January 2016 through December 2022 (“Electric Plan 1”)1 including 14 the development of detailed asset registers defining the projects included 15 in Electric Plan 1. This responsibility also includes maintaining the risk 16 model and updates to the condition‐based assessment of assets in the 1 NIPSCO’s Electric Plan 1 is set to expire December 31, 2022. In accordance with Ind. Code § 8‐1‐39‐10(d), NIPSCO provided the Commission with a notice on April 1, 2021 that Electric Plan 1 will terminate on May 31, 2021. Petitioner’s Exhibit No. 2 Northern Indiana Public Service Company LLC Page 4 1 Electric Plan 1 and making future updates as appropriate. I was also 2 responsible for developing the project cost estimates and supporting the 3 financial performance of the projects included in Electric Plan 1. I have been 4 responsible for coordinating the preparation of NIPSCO’s Electric TDSIC 5 Plan for the period June 1, 2021 through December 31, 2026 (the “2021‐2026 6 Electric Plan” or “Plan”), attached hereto as Confidential Attachment 2‐A. 7 In that role, I have worked with engineers under my supervision, including 8 those in a consulting role, as well as with others within the Company to 9 compile, review, prioritize and analyze projects for incorporation into the 10 Plan. 11 Q5. Have you previously testified before this or any other regulatory 12 commission? 13 A5. Yes. I previously submitted testimony before the Indiana Utility 14 Regulatory Commission (“Commission”) in NIPSCO’s electric TDSIC 15 tracker filings in Cause Nos. 44733‐TDSIC‐X (beginning in TDSIC‐4). 16 Q6. What is the purpose of your direct testimony in this proceeding? 17 A6. The purpose of my direct testimony is to (1) provide a summary of the 2021‐ 18 2026 Electric Plan, (2) explain how NIPSCO developed its 2021‐2026 Electric 19 Plan, (3) explain the reduction of risks after executing Electric Plan 1, (4) Petitioner’s Exhibit No. 2 Northern Indiana Public Service Company LLC Page 5 1 explain the proposed plan update process; (5) explain the cost estimates 2 associated with the 2021‐2026 Electric Plan, (6) discuss contingency as a 3 component of estimating, (7) explain the various components of projects 4 included in the 2021‐2026 Electric Plan, (8) discuss NIPSCO’s proposed 5 execution of the 2021‐2026 Electric Plan, (9) explain why the 2021‐2026 6 Electric Plan constitutes eligible transmission, distribution, and storage 7 system improvements (“eligible improvements”),2 including the expected 8 benefits from certain projects. 9 Q7. Are you sponsoring any attachments to your direct testimony? 10 A7. Yes. I am sponsoring the following documents, all of which were prepared 11 by me or under my direction and supervision. 12 2 “’Eligible transmission, distribution, and storage system improvements’ means new or replacement electric or gas transmission, distribution, or storage utility projects that: (1) a public utility undertakes for purposes of safety, reliability, grid modernization, or economic development, including the extension of gas service to rural areas; (2) were not included in the public utility’s rate base in its most recent general rate case; and (3) either were (A) described in the public utility’s TDSIC plan and approved by the commission under section 10 of this chapter and authorized for TDSIC treatment; (B) described in the public utility’s update to the public utility’s TDSIC plan under section 9 of this chapter and authorized for TDSIC treatment by the commission; or (C) approved as a targeted economic development project under section 11 of this chapter. The term includes (1) projects that do not include specific locations or an exact number of inspections, repairs, or replacements, including inspection based projects such as pole or pipe inspection projects, and pipe or pipe replacement projects; and (2) projects involving advanced technology investments to support the modernization of a transmission, distribution, or storage system, such as advanced metering infrastructure, information technology systems, or distributed energy resource management systems.” Ind. Code § 8‐1‐39‐2. Petitioner’s Exhibit No. 2 Northern Indiana Public Service Company LLC Page 6 Attachment No. Description Confidential Attachment 2‐A NIPSCO’s 2021‐2026 Electric Plan Confidential Attachment 2‐B 2021–2026 TDSIC Investment Plan Business Case dated May 2021 prepared by Sargent & Lundy Confidential Attachment 2‐C 2021‐2026 TDSIC Investment Plan Cost Analysis dated May 2021 prepared by Sargent & Lundy Attachment 2‐D NIPSCO’s Transmission Planning System Assessment Methodology and Planning Criteria dated January 14, 2021 Confidential Attachment 2‐E Distribution Automation Program Business Case dated April 2020 prepared by Leidos Engineering, LLC Confidential Attachment 2‐F Long‐Term Communications Plan dated May 2021 prepared by Sargent & Lundy Attachment 2‐G Execution and Management of the Plan 1 2 Q8. Please describe the reports prepared by Sargent & Lundy. 3 A8. Sargent & Lundy, L.L.C. (“S&L”) prepared four reports: (1) 2021–2026 4 TDSIC Investment Plan Business Case (“Long‐Term Investment Plan”), 5 which is attached hereto as Confidential Attachment 2‐B; (2) 2021–2026 6 TDSIC Investment Plan Cost Analysis, which is attached hereto as 7 Confidential Attachment 2‐C; (3) Long‐Term Communications Plan, which 8 is attached hereto as Confidential Attachment 2‐F; and (4) Economic 9 Impacts of Projected NIPSCO T&D Expenditures,