From: Robert Berman [mailto:bermaneconomics@gmail.com]

Sent: Thursday, October 20, 2011 2:21 PM

To: Rick Anderson

Cc: kwinder@mleainc.com; jhodge@howard- ind.com; richardparkerdc@gmail.com; phopkinson@hvolt.com; Aaron.Meyers@cooperin dustries.com; adelaski@standardsasap.org; ahofmann@PublicPower.org; Aris Marantan; artr osenfeld@gmail.com; august.esch@gmail.com; BermanEconomics@gmail.com; Brian Coffey; bruc e.r.hirsch@bge.com; bsmith@federalpacific.com; cabolduc@lbl.gov; Caitlin Johnson; carlos.gaytan@ge.com; carlosgsiqueiros@eaton.com; chad.kennedy@us.schneider-electric.com; ch arlied@uus.org; chuck.simmons@pgnmail.com; clark.silcox@nema.org; cstephen s@neea.org; Daniel.Cohen@hq.doe.gov; dave.millure@metglas.com; DYoung@energy-solution.com; eduardorobles@eaton. com; Eric.Petersen@aksteel.com; gbf1@pge.com; gjrosenquist@lbl.gov; greg.coulter405 @gmail.com; James.Lass@cleco.com; Jennifer.Tiedeman@hq.doe.gov; Jeremiah.Freeman@ee.doe.gov Subject: Re: Replacement Cost for Transformer Pole

A fee per attachment is one way to do it. My unde rstanding of joint pole associations is that the JPA owns the pole and the members use it. In either case, setting the pole its elf is another issue.



### Regards,

Robert A. Berman, Principal

Berman Economics

www.BermanEconomics.com

1915 Grand Court
Vienna, VA 22182

703

‐ 281

‐ 0490

703

‐ 655

‐ 8398 (cell)
BermanEconomics@gmail.com

On Oct 20, 2011, at 2:15 PM, Rick Anderson wrote:

Typically, the owner of the pole collects a monthly flat fee per attachment. I don't see how you can mix the cost and weight of the transformer in to this analysis since its a separate Agreement and not all poles have pole attachments.

If the utility needs to change a transformer and discovers that the new, heavier transformer exceeds the limitations of the existing pole, they ar e forced to set a new pole. There are a variety of agreements when it comes to transferring the attachments.

The bigger problem is when you're in downtown Baltimore and there's no room to set another pole.Rick

----- Original Message ----- From: Kenneth Winder [ mailto:kwinder@mleainc.com ] Sent: Thursday, October 20, 2011 11:58 AMTo: Jerry Hodge < jhodge@howard-ind.com > Cc: Richard Parker < richardparkerdc@gmail.com >; phopkinson@hvolt.com

< phopkinson@hvolt.com >; Meyers, Aaron < Aaron.Meyers@cooperindustries.com >; adelaski@standardsasap.org < adelaski@standardsasap.org >; ahofmann@publicpower.org

< ahofmann@publicpower.org >; amarantan@navigant.com < amarantan@navigant.com >; artrosenfeld@gmail.com < artrosenfeld@gmail.com >; august.esch@gmail.com

< august.esch@gmail.com >; BermanEconomics@gmail.com < BermanEconomics@gmail.com >; brian.coffey@navigant.com < brian.coffey@navigant.com >; bruce.r.hirsch@bge.com

< bruce.r.hirsch@bge.com >; bsmith@federalpacific.com < bsmith@federalpacific.com >; cabolduc@lbl.gov < cabolduc@lbl.gov >; Caitlin.Johnson@navigant.com

< Caitlin.Johnson@navigant.com >; carlos.gaytan@ge.com < carlos.gaytan@ge.com >; carlosgsiqueiros@eaton.com < carlosgsiqueiros@eaton.com >; chad.kennedy@us.schneiderelectric.com < chad.kennedy@us.schneider-electric.com >; charlied@uus.org

< charlied@uus.org >; chuck.simmons@pgnmail.com < chuck.simmons@pgnmail.com >; clark.silcox@nema.org < clark.silcox@nema.org >; cstephens@neea.org < cstephens@neea.org >; Daniel.Cohen@hq.doe.gov < Daniel.Cohen@hq.doe.gov >; dave.millure@metglas.com

< dave.millure@metglas.com >; DYoung@energy-solution.com < DYoung@energysolution.com >; eduardorobles@eaton.com < eduardorobles@eaton.com >; Eric.Petersen@aksteel.com < Eric.Petersen@aksteel.com >; gbf1@pge.com < gbf1@pge.com >; gjrosenquist@lbl.gov < gjrosenquist@lbl.gov >; greg.coulter405@gmail.com

< greg.coulter405@gmail.com >; James.Lass@cleco.com < James.Lass@cleco.com >; Jennifer.Tiedeman@hq.doe.gov < Jennifer.Tiedeman@hq.doe.gov >; Jeremiah.Freeman@ee.doe.gov < Jeremiah.Freeman@ee.doe.gov >; jerry.corkran@cooperindustries.com <

jerry.corkran@cooperindustries.com >; jerry.schoen@aksteel.com <

jerry.schoen@aksteel.com >; Jim.creevy@nema.org

< Jim.creevy@nema.org >; Jim.Raba@ee.doe.gov < Jim.Raba@ee.doe.gov >; jmauer@standardsasap.org < jmauer@standardsasap.org >; john.caskey@nema.org

<

john.caskey@nema.org >; john.cymbalsky@ee.doe.gov < john.cymbalsky@ee.doe.gov >; jrossetti@mlgw.org < jrossetti@mlgw.org >; kcoughlin@lbl.gov < kcoughlin@lbl.gov >; maheshsampat@bellsouth.net < maheshsampat@bellsouth.net >; mark.stoering@xcelenergy.com

< mark.stoering@xcelenergy.com >; matthew.nardotti@navigant.com

< matthew.nardotti@navigant.com >; maxinesavitz@aol.com < maxinesavitz@aol.com >; mhyland@appanet.org < mhyland@appanet.org >; mrivest@navigant.com

< mrivest@navigant.com >; mwaltner@nrdc.org < mwaltner@nrdc.org >; Paul.Ryan@hitmet.com

< Paul.Ryan@hitmet.com >; phil@pjharter.com < phil@pjharter.com >; pkumar@publicpower.org

< pkumar@publicpower.org >; Raymond.Polinski@atimetals.com

< Raymond.Polinski@atimetals.com >; rgreeson@federalpacific.com

< rgreeson@federalpacific.com >; Rick Anderson; robert.saint@nreca.coop

< robert.saint@nreca.coop >; robert.vanbuskirk@ee.doe.gov < robert.vanbuskirk@ee.doe.gov >; rroy@nrdc.org < rroy@nrdc.org >; ScottB@lvmetals.com < ScottB@lvmetals.com >;snadel@aceee.org < snadel@aceee.org >; srosenstock@eei.org < srosenstock@eei.org >; tballo@earthjustice.org < tballo@earthjustice.org >; Teckman@nwcouncil.org

< Teckman@nwcouncil.org >; thomas.patzner@us.sc hneider-electric.com

< thomas.patzner@us.schneider-electric.com >; vijay.tendulkar@onyxpower.com

< vijay.tendulkar@onyxpower.com >; zhimei.luo@navigant.com < zhimei.luo@navigant.com > Subject: Re: Replacement Cost for Transformer Pole

Jerry: Jerry and All: Thank you for your clarifying questions. The estimate does not involve a joint-use pole. We have joint-use agreements with telephone and cable TV companies, but those joint-use poles are generally confined to the communities we serve. Telephone in the area is al most exclusively underground outside of the communities and to a major extent inside those communities. Density of customers outside of the communities does not justify cable TV service per those comp anies, and therefore, everyone uses wireless (satellite TV service or reception by antenna) in the ru ral areas. We

are almost the exclusive owne r of all poles in the area. The pole change out under the situation with additional users would certainly complicate the change out and increase the costs, as you point out so well. Some of the costs may be collected from the other joint users per agreement language, but usua lly the joint user must perform removal and re-installation at its expense. The driver of the change out is the heavier tran sformer, and since we are the owner of the poles, we do not have a claim to share our cost of the pole change out except through the monthly joint-use fees (that they were paying for the or iginal pole attachment). I expect that change-out estima tes from other utilities, especially in municipal and urban areas, will be able to shed more light on this subject regarding joint-user involv ement and more specifically on how the replacement costs rise for that situation.

Ken

On 10/20/2011 8:27 AM, Jerry Hodge wrote:

Ken:

Does your pole change out estimate include the costs incurred by the other joint users of the pole such as the telephone or TV cable companies for transferring their equipmen t from the old to the new pole? Sometimes too, the pol e is owned by one of the other joint users and you may have to wait until they can begin their work before the po wer co. can act. Time is an important issue. All of this can add to the cost of change out.

JerryJerry Hodge Consulting Engineer, E.E., M.S., P.E. Retired V.P.& G.M. of Pole Type Transformer& Regulator Div.

Howard Industries Inc.

P.O.Box 1588 Laurel, Ms, 39440

601 422-1539 Bus.

484 226-6190 Cell

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------------------------------------------------------------ -------------- -----Original Message-----

From: Kenneth Winder [ mailto:kwinder@mleainc.com ] Sent: Wednesday, October 19, 2011 7:37 PM

To: Richard Parker

Cc: phopkinson@hvolt.com ; Aaron.Meyers@cooperindustries.com ; adelaski@standardsasap.org ; ahofmann@publicpower.org ; amarantan@navigant.com ; artrosenfeld@gmail.com ; august.esch@gmail.com ; BermanEconomics@gmail.com ; brian.coffey@navigant.com ; bruce.r.hirsch@bge.com ; bsmith@federalpacific.com ; cabolduc@lbl.gov ; Caitlin.Johnson@navigant.com ; carlos.gaytan@ge.com ; carlosgsiqueiros@eaton.com ; chad.kennedy@us.schneider-electric.com ; charlied@uus.org ; chuck.simmons@pgnmail.com ; clark.silcox@nema.org ; cstephens@neea.org ; Daniel.Cohen@hq.doe.gov ; dave.millure@metglas.com ; DYoung@energy-solution.com ; eduardorobles@eaton.com ; Eric.Petersen@aksteel.com ; gbf1@pge.com ; gjrosenquist@lbl.gov ; greg.coulter405@gmail.com ; James.Lass@cleco.com ; Jennifer.Tiedeman@hq.doe.gov ; Jeremiah.Freeman@ee.doe.gov ; jerry.corkran@cooperindustries.com ; jerry.schoen@aksteel.com ; Jerry Hodge; Jim.creevy@nema.org ; Jim.Raba@ee.doe.gov ; jmauer@standardsasap.org ; john.caskey@nema.org ; john.cymbalsky@ee.doe.gov ; jrossetti@mlgw.org ; kcoughlin@lbl.gov ; maheshsampat@bellsouth.net ; mark.stoering@xcelenergy.com ; matthew.nardotti@navigant.com ; maxinesavitz@aol.com ; mhyland@appanet.org ; mrivest@navigant.com ; mwaltner@nrdc.org ;Paul.Ryan@hitmet.com ; phil@pjharter.com ; pkumar@publicpower.org ; Raymond.Polinski@atimetals.com ; rgreeson@federalpacific.com ; richardparkerdc@gmail.com ; rick.anderson@faypwc.com ; robert.saint@nreca.coop ; robert.vanbuskirk@ee.doe.gov ; rroy@nrdc.org ; ScottB@lvmetals.com ; snadel@aceee.org ; srosenstock@eei.org ; tballo@earthjustice.org ; Teckman@nwcouncil.org ; thomas.patzner@us.schneider-electric.com ; vijay.tendulkar@onyxpower.com ; zhimei.luo@navigant.com ; Chris Boulduc; Ken Winder Subject: Replacement Cost for Transformer Pole

Richard and Committee: Attached is a spreadsheet s howing the cost to replace an existing pole in a three-phase distribution circ uit with an existing single-phase

distribution transformer mounted on it. This information was developed to estimate the cost to replace an existing pole with a new, higher strength pole required because of the increased weight of the

distribution transformer. This estima te represents the cost to do this for my Cooperative.

Other Utilities will be furnishi ng this information for their systems. Kenneth A. Winder, PE

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