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© 2005 Enspiria Solutions, Inc., an Osmose company. The Zen of Asset Management Hahn Tram – Student of eastern philosophies, father of two, collector of toy pigs, recipient of the Westinghouse Engineering Achievement award, foremost industry expert on utility asset management. While others fret, deliberate and struggle with the uncertainties of asset management, Hahn applies the same calm intelligence, enlightened intuition and clear comprehension that pervade all aspects of his life. And while elsewhere confusion may reign, Hahn’s confident experience make him always mindful of that which has come before, and that which is likely to follow. Ever aware of the need for balance, Enspiria’s Hahn Tram is the Zen of asset management. Real People with Inspired Solutions to Real Problems www.enspiria.com • 303.641.2968 For over fifteen years, Panasonic Computer Solutions Company has produced the industry’s most dependable mobile PCs—legendary Panasonic Toughbooks®. Toughbook reliability assures utility industry professionals maximum uptime and a significantly lower total cost of ownership. With durability built into every seal, hinge and connector, Toughbooks offer the highest reliability rates in the industry. Toughbooks are ideal whether you’re up in the bucket, above or below ground or driving over rural roads. Toughbooks’ rugged features are unmatched for durability, with magnesium alloy cases, shockmounted hard drives and moisture- and dust-resistant LCDs and keyboards. And with integrated wireless capabilities, utility workers are able to receive work orders and make schedule changes in the field, dispatch and manage crews from virtually anywhere and instantly access customer service histories and inventory information. Platts UDI 1200 G Street NW, Suite 1000 Washington, DC 20005 (202) 942-8788 www.platts.com Powerlink Corporation 20 South Santa Cruz Avenue, Suite 320 Los Gatos, CA 95030 (408) 399-3355 www.powerlink.com Sargent & Lundy LLC 55 East Monroe Street Chicago, IL 60603 (312) 269-2000 www.sargentlundy.com SmartSignal Corporation 901 Warrenville Road Lisle, IL 60532 (630) 829-4000 www.smartsignal.com MAINTENANCE OUTSOURCING Asset Management Consulting Limited 221 St. John Street Clerkenwell, London, EC1V 4LY United Kingdom + 44 (0) 20 7688 2828 www.amcl.com OTHER SensorLink Corporation PO Box 301 1975 Valley Highway #9 Acme, WA 98220 (360) 595-1000 Fax (360) 595-1001 www.sensorlink.com Contact Ken Borbe, Director of Marketing & Sales (360) 595-1000 Manufactures meters, sensors, and recorders for primary voltage. They read current, voltage, power factor, harmonics, and micro-ohms resistance. They record profiles including current and power factor. Our sensors measure in high voltage environments where a traditional potential or current transformers may not be the answer. Our research team is dedicated to designing high quality, easy to use sensors that give the right answer. Past projects include: Open core current transformers, Non-Contact power factor sensors and Current sensors for special SCADA applications. www.energybizmag.com ENERGYBIZ MAGAZINE 59
[ C A S E S T U D Y ] Asset Management: Optimized Business Use of Aging System Information Base INTRODUCTION Oklahoma Electric and Gas is completing implementation of a comprehensive asset management framework for its distribution business unit. Working with KEMA T&D Consulting, OG&E has implemented a method based on a unique approach to T&D system management that incorporates an aging infrastructure model into its investment, utilization and maintenance decision-making processes. Its approach also applies an option-based portfolio optimization method to maximize “bang for the buck” performance enhancement of its power delivery operations. OG&E moved to asset management to improve business performance. According to Terry Henry, Leader of Strategy, OG&E Electric Services, “Asset management is a change from traditional engineering standards and operations-guideline driven approach for decision making and spending to a management system that coordinates all decisions to maximize their joint contribution to the corporate business case. We believed it would help us focus on achieving maximum performance for our customers, our stockholders, and our employees.” Henry further notes that OG&E knew from the outset that it also needed to look at the issues and trends it faced due to continuing wear and tear on an aging T&D system. “We saw trends in our cost and operations data that indicated potential rising costs and reliability problems down the road. OG&E wanted to get out in front of such trends before they became problems. An asset management approach seemed the ideal way to put any such problems in a business perspective and to optimize their solution.” “KEMA had a solid, fact-based methodology to address the aging infrastructure issues and made a good argument for including those issues directly in the asset management project.” PROPER TEAMWORK WAS A KEY OG&E assembled a team that cut across all relevant departments and backgrounds. They also went outside the company for expertise that could help them do the job quickly and well. “OG&E picked KEMA because it had a solid background in business-based asset management approaches,“ said Henry. “We were confident they would listen to us and work with us toward our goals and needs. KEMA had a solid, fact-based methodology 60 ENERGYBIZ MAGAZINE July/August 2005 to address the aging infrastructure issues and made a good argument for including those issues directly in the asset management project.” OG&E and KEMA also worked closely with ABB Power Technology Services, which provided expertise and support in evaluation, diagnosis, and condition assessment of major electrical equipment like transformers and breakers. AGING INFRASTRUCTURES: DURABILITY VERSUS JUST RELIABILITY Lee Willis, Vice President of Asset Management and Planning for KEMA T&D Consulting, says that equipment aging and its effects are not well understood in the power industry, particularly their interaction with business performance. “When people talk about aging, they use it as a proxy for condition deterioration. Age and time in service create wear and tear that gradually erodes condition.” But age itself is a good thing, Willis insists. “An optimum business strategy means getting the most value out of everything the utility owns or buys, and that means making it last as long as practicable.” Working with utilities in Europe and the US, KEMA developed a unique “sustainable point” durability analysis of historical asset base operating data, which projects future changes in condition, failure rates, repair and replacement costs. The utility can see where, how, and why its costs and reliability challenges will change over time or as a function of decisions made about utilization and maintenance. Willis explains the approach finds an optimum sustainable business case. “There is an optimum age or condition profile for each class and type of equipment in the system, one most compatible with the utility’s business needs. Even fifty-year old poles and transformers can have decades of life remaining in them if well serviced. A utility that has the right base of information can determine where and how to allocate budget and scarce resources to do the best job of getting value out of its assets, old and new.” A utility must be pro-active, and work hard, to get maximum value from its older equipment. “Older equipment can be a lot like older people,” explains Randy Schrieber, Senior Vice President, Power Technology Services, at ABB, whose group did much of the project’s major equipment evaluation. “It can go from good condition to bad more quickly than new. It’s prone to more frequent breakdowns. So you have to inspect and monitor it a bit more frequently, and maybe perform more maintenance. You have to balance those costs, remaining life, and risk of failure against the cost of replacement. This means a lot hinges on your understanding of the equipment’s condition.” OG&E’s Henry agrees, adding that the utility needs to look beyond just its equipment cost and lifetime issues, at Operations costs and performance issues, too. The optimum way to provide good service quality to customers might be to learn to ‘live with’ a slightly rising failure rate from aging equipment through improved operations. “You might eliminate the effects of aging trends on customer service by improving response and restoration – by more efficiently handling high outage rates.” A D V E R T I S E M E N T
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