2015 General Rate Case Financial, Legal, and Operational Services

100 Pages·2013·0.78 MB·English

Application No.:
Exhibit No.: SCE-08, Vol. 03, Pt. 2
Witnesses: R. Park
A. Riddle

(U 338-E)

2015 General Rate Case

Financial, Legal, and Operational Services (FL&OS)
Volume 3, Part 2
Operational Services – Capital

Before the
Public Utilities Commission of the State of California

Rosemead, California
November 2013
SUMMARY
Operational Services supports SCE’s Operating Units, including Transmission and Distribution
and Customer Service, with a wide range of facility and transportation support activities. Operational
Services’ capital forecasts are driven by:
 The capital expenditures required to support SCE’s real estate projects and accommodate the
SCE workforce;
 The spending needed to maintain the performance and lifecycle of our non-electric1 facility
infrastructure and assets, including our buildings and offices located across our service
territory; and
 The capital expenditures to provide a dependable vehicle fleet to support delivery of
electrical service to our customers.
The capital expenditures requested by Operational Services are necessary for SCE to continue
providing safe and reliable service to its customers.

1 “Non-electric facilities” refers to all facilities that are not directly used in generating, transmitting, or distributing
electricity. For example, business offices, warehouses, and computing centers are considered non-electric facilities.
OPERATIONAL SERVICES

CAPITAL FORECAST 2015

 Corporate Real Estate
o Headquarters $98.5 Million
o Field Facility Asset Preservation $63.0 Million
o Critical Facilities $60.2 Million
o Blankets $256.3 Million
o Projects Under $1 Million $2.9 Million

 Supply Management $3.4 Million

 Transportation $36.0 Million
SCE-08: Financial, Legal, and Operational Services
Volume 03, Part 2 – Operational Services - Capital

Table Of Contents
Section Page Witness

I.  CAPITAL ...........................................................................................................1 R. Park 
A.  Introduction ............................................................................................1 
B.  Corporate Real Estate ............................................................................2 
1.  Facility Planning ........................................................................2 
2.  Asset Management .....................................................................3 
3.  Capital Project Estimating Methodology ...................................5 
a)  Planning Estimates .........................................................5 
(1)  Project Scope and Size .......................................6 
(2)  Construction Cost Estimates ..............................6 
(3)  Estimating Furniture and Furnishings ................7 
(4)  Estimating Design/Plan
Check/Permitting Fees .......................................8 
(5)  Estimating Project Management
Costs ...................................................................8 
b)  Competitively Bid Contract Pricing...............................8 
c)  Workpapers ....................................................................9 
4.  Non-Electric Facility Portfolio ..................................................9 
C.  Corporate Real Estate Projects ...............................................................9 
1.  Headquarters ............................................................................12 
a)  GO Complex Plumbing Infrastructure
Upgrade ........................................................................12 
b)  GO1 Cafeteria Infrastructure Upgrade .........................13 
c)  GO1 Law Department (Phase 3) ..................................16 
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SCE-08: Financial, Legal, and Operational Services
Volume 03, Part 2 – Operational Services - Capital
Table Of Contents (Continued)
Section Page Witness

d)  GO4 2nd Floor Improvements ......................................17 
e)  Administrative Facilities Infrastructure –
Upgrade Program (Headquarters) ................................18 
(1)  Corporate Communications Media
Center ...............................................................18 
(2)  GO5 Parking Structure .....................................19 
(3)  GO5 Food Service ............................................20 
(4)  Conference/Training Center .............................21 
(5)  Metro East Office Building ..............................22 
(6)  Metro East Parking Structure ...........................23 
(7)  Food Service at T&D Campus .........................23 
(8)  Administrative Facilities
Infrastructure - Headquarters
Summary & Funding Request ..........................24 
2.  Field Facility Asset Preservation .............................................24 
a)  Alhambra Building C – T&D Storage .........................25 
b)  Menifee SC Offsites (Phase 2) .....................................26 
c)  Transportation Garage Hoist/Door
Replacements ...............................................................27 
d)  Electrical Vehicle Test Center (EVTC) .......................28 
e)  Catalina Island Facility Improvements ........................29 
(1)  Main Building Betterment ...............................30 
(2)  Station Office Betterment ................................31 
f)  Administrative Facilities Infrastructure –
Upgrade Program (Field Facilities) .............................34 
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SCE-08: Financial, Legal, and Operational Services
Volume 03, Part 2 – Operational Services - Capital
Table Of Contents (Continued)
Section Page Witness

(1)  Rancho Cucamonga Office Building
Optimization ....................................................34 
(2)  Hotel Workspace ..............................................35 
(3)  Alhambra Regional Operating
Facility Master Plan .........................................36 
(4)  Alhambra Regional Operating
Facility Secure Storage ....................................37 
(5)  Long Beach Regional Office
(LBRO) Improvements ....................................38 
(6)  Renovate SSID Administration
Building............................................................39 
(7)  Administrative Facilities
Infrastructure Field Summary &
Funding Request ..............................................40 
3.  Critical Facilities ......................................................................40 
a)  IOC Upgrades ..............................................................41 
b)  Administrative Facilities Infrastructure –
Upgrade Program (Critical Facilities) ..........................43 
(1)  Alhambra Data Center Addition ......................44 
(2)  Emergency Operations Center .........................44 
(3)  IBC Remodel ...................................................47 
(4)  Administrative Facilities
Infrastructure - Critical Facilities
Summary & Funding Request ..........................48 
4.  Blankets....................................................................................49 
a)  Capital Maintenance ....................................................50 
(1)  Introduction ......................................................50 
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SCE-08: Financial, Legal, and Operational Services
Volume 03, Part 2 – Operational Services - Capital
Table Of Contents (Continued)
Section Page Witness

(2)  Corporate Real Estate’s Approach to
Facility Capital Maintenance ...........................51 
(3)  Future Capital Maintenance
Approach ..........................................................52 
(4)  Capital Maintenance Request ..........................53 
b)  Energy Efficiency ........................................................55 
(1)  Cost/Benefit Report – Energy
Efficiency Expenditures 2009-2012 ................55 
(2)  Energy Efficiency Projects ..............................56 
(3)  Water Conservation/Storm Water
Runoff Reduction .............................................57 
(4)  Cost Benefit Summary .....................................58 
(5)  Energy Efficiency Projects 2012-
2017..................................................................58 
(6)  Upgrade Building Management
System ..............................................................59 
(7)  Supplemental General Office Chiller ...............60 
(8)  Energy Efficiency Summary ............................60 
c)  On-Going Furniture Modifications ..............................60 
d)  SCE Ergo Equipment ...................................................61 
e)  Various Major Structures .............................................62 
f)  Garage Infrastructure Upgrade Program ......................63 
(1)  Service Bay Additions .....................................65 
(2)  Service Bay Expansions ...................................66 
(3)  Covered Hazardous Material Storage
Areas ................................................................66 
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SCE-08: Financial, Legal, and Operational Services
Volume 03, Part 2 – Operational Services - Capital
Table Of Contents (Continued)
Section Page Witness

(4)  Other Improvements ........................................66 
g)  Service Center Infrastructure Upgrade ........................68 
(1)  Bishop Service Center ......................................69 
(2)  Kernville Service Center ..................................70 
(3)  Ridgecrest Service Center ................................71 
(4)  San Joaquin Service Center .............................72 
(5)  Redlands Service Center ..................................73 
(6)  Ontario Service Center .....................................74 
(7)  Santa Ana Service Center ................................75 
(8)  Fullerton Service Center ..................................76 
(9)  Conclusion .......................................................77 
5.  Projects and Blanket Work Orders Under $1
Million......................................................................................78 
D.  Supply Management ............................................................................79 
E.  Transportation ......................................................................................79 A. Riddle 
1.  Vehicle Purchase ......................................................................80 
a)  Transportation Tools ....................................................81 
(1)  Garage Tools ....................................................81 
(2)  Helicopter Parts and Equipment ......................82 
(3)  Helicopter Lease Buyout ..................................83 
Appendix A Witness Qualifications ................................................................................ 
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SCE-08: Financial, Legal, and Operational Services
Volume 03, Part 2 – Operational Services - Capital
List Of Figures
Figure Page

Figure I-1 Operational Services 2008 – 2012 Recorded/2013-2017 Capital Forecast
(Excluding Land) (Nominal $ Millions) ................................................................................................1 
Figure I-2 Main Building Betterment Recorded 2008-2012/Forecast 2013-2017 (Nominal
and Constant 2012 $000) .....................................................................................................................30 
Figure I-3 Station Office Betterment Recorded 2008-2012/Forecast 2013-2017 (Nominal
and Constant 2012 $000) .....................................................................................................................31 
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SCE-08: Financial, Legal, and Operational Services
Volume 03, Part 2 – Operational Services - Capital
List Of Tables
Table Page

Table I-1 Age of SCE’s Non-Electric Facility Portfolio .............................................................................4 
Table I-2 Portfolio FCI Score ......................................................................................................................5 
Table I-3 Example Of Construction Cost Estimating ..................................................................................7 
Table I-4 Corporate Real Estate Capital Projects/Blankets Over $1 Million ............................................11 
Table I-5 GO Complex Plumbing Infrastructure Upgrade 2013-2017 Forecast Capital
Expenditures ........................................................................................................................................12 
Table I-6 GO1 Cafeteria Infrastructure Upgrade 2013-2017 Forecast Capital
Expenditures ........................................................................................................................................13 
Table I-7 Code Deficiencies ......................................................................................................................15 
Table I-8 GO1 Law Department (Phase 3) 2013-2017 Forecast Capital Expenditures
(Nominal $000) ....................................................................................................................................16 
Table I-9 GO4-2nd Floor Improvements 2013-2017 Forecast Capital Expenditures
(Nominal $000) ....................................................................................................................................17 
Table I-10 Administrative Facilities Infrastructure – Upgrade Program (Headquarters)
2013-2017 Forecast Capital Expenditures (Nominal $000) ................................................................18 
Table I-11 Alhambra Building C – T&D Storage 2013-2017 Forecast Capital
Expenditures (Nominal $000) ..............................................................................................................25 
Table I-12 Menifee SC Offsites (Phase 2) 2013-2017 Forecast Capital Expenditures
(Nominal $000) ....................................................................................................................................26 
Table I-13 Transportation Garage Hoist/Door Replacements 2013-2017 Forecast Capital
Expenditures (Nominal $000) ..............................................................................................................27 
Table I-14 Electric Vehicle Test Center 2013-2017 Forecast Capital Expenditures
(Nominal $000) ....................................................................................................................................28 
Table I-15 Catalina Island Facility Improvements 2013-2017 Forecast Capital
Expenditures (Nominal $000) ..............................................................................................................29 
Table I-16 Administrative Facilities Infrastructure Upgrade Program (Field Facilities)
2013-2017 Forecast Capital Expenditures (Nominal $000) ................................................................34 
Table I-17 Critical Facilities ......................................................................................................................40 
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