OGE Energy : PUD 2020-00021 - Responsive Testimony Staff David Melvin

BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOMA

IN THE MATTER OF THE APPLICATION OF	)
OKLAHOMA GAS AND ELECTRIC COMPANY	)
FOR AN ORDER OF THE COMMISSION	) CAUSE NO. PUD 202000021
APPROVING A RECOVERY MECHANISM FOR	)
EXPENDITURES RELATED TO THE	)
OKLAHOMA GRID ENHANCEMENT PLAN	)

RESPONSIVE TESTIMONY

OF

DAVID MELVIN

AUGUST 25, 2020

BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOMA

RESPONSIVE TESTIMONY
OF
DAVID MELVIN
AUGUST 25, 2020
TABLE OF CONTENTS
EXECUTIVE SUMMARY .......................................................................................................	3
INTRODUCTION.....................................................................................................................	4
PURPOSE..................................................................................................................................	5
PUD'S REVIEW PROCESS ....................................................................................................	5
GRID MODERNIZATION INITIATIVE ...............................................................................	6
OTHER UTILITIES' GRID MODERNIZATION PLANS ....................................................	8
OG&E GRID ENHANCEMENT PLAN................................................................................	12
RECOMMENDATION ..........................................................................................................	15
LIST OF EXHIBITS...............................................................................................................	17

Responsive Testimony - Melvin

Oklahoma Gas and Electric Company - Cause No. PUD 202000021

Page 2 of 22

1	EXECUTIVE SUMMARY
2	On February 26, 2020, Oklahoma Gas and Electric Company ("OG&E" or "Company")
3	filed an Application for approval of a recovery mechanism for its Oklahoma Grid

1. Enhancement Plant ("Plan"). In this Responsive Testimony, the Public Utility Division
2. ("PUD") reviewed the Grid Modernization Initiative ("GMI") started by the United States
3. Department of Energy ("DOE") in 2015. PUD reviewed OG&E's Plan and the grid
4. modernization plans of other utilities. PUD does not believe these projects require
5. completion in a five-year plan or through an alternate recovery mechanism. Many other
6. utilities have grid modernization plans that extend well beyond a five-year span. Other
7. utilities have also recovered grid modernization costs through normal rate recovery and not
8. through an alternate recovery mechanism. OG&E has made progress toward system
9. reliability and resiliency by system hardening and completing its smart meter deployment.
10. PUD finds the projects included in OG&E's Grid Enhancement Plan can be completed
11. beyond a five-year span and could be recovered through normal rate recovery methods.

Responsive Testimony - Melvin

Oklahoma Gas and Electric Company - Cause No. PUD 202000021

Page 3 of 22

1	INTRODUCTION

1. Q: Please state your name and your business address.
2. A: My name is David Melvin. My business address is Oklahoma Corporation Commission,
3. Public Utility Division, Jim Thorpe Office Building, Room 580, 2101 North Lincoln
4. Boulevard, Oklahoma City, Oklahoma 73105.
5. Q: Have you previously testified before the Commission and were your qualifications
6. accepted?
7. A: Yes. I have previously testified before the Commission and my qualifications were
8. accepted at that time.
9. Q: Who employs you and what is your position?
10. A: I am employed by the Oklahoma Corporation Commission Public Utility Division as a
11. Senior Public Utility Regulatory Analyst.
12. Q: How long have you been so employed?
13. A: I have been employed by the Commission since October 2016.
14. Q: What are your duties and responsibilities with PUD?
15. A: I conduct research and perform comparative analysis of utility applications, reports,
16. financial records, and workpapers to ensure that PUD can make accurate recommendations.
17. My work focuses on Plant in Service, Operations and Maintenance, and Depreciation of
18. electric and gas production, distribution, and transmission systems. I have also performed

Responsive Testimony - Melvin

Oklahoma Gas and Electric Company - Cause No. PUD 202000021

Page 4 of 22