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ELECTRIC DISTRIBUTION SYSTEM PERFORMANCE

Texas-New Mexico Power Company reports on the distribution
system performance annually. The PUCoT requires utilities to
submit a report that describes the system performance using two
methods. One method is the System Average Interruption
Duration Index, or SAIDI. The other method is the System Average
Interruption Frequency Index, or SAIFI. The SAIDI shows the
average length of time a power outage may last for a customer
on the system. The SAIFI shows an average of how many power
outages a customer may have on the system. The numbers are
reported at a total system level and at a distribution circuit level.
These indices assist us in evaluating trends and locating problem areas that need attention.

Additionally, Texas-New Mexico Power Company participates in utility industry group surveys on system performance. The surveys give an indication of issues other utilities have with various causes of power outages. Conferences are held in an effort to allow sharing of information and experiences. Participating utilities may then learn, or help others learn of processes and equipment that will provide a higher level of performance.