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Asset Management Applied inUtilities

By

Don Angell

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ComEd Statistics Peak 24 GW

3.4 Million customers 5000 feeders 800 substations

5,200 miles of 765kv thru 69kV

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Evolutionary Progression of Asset

Management

Late 80s 2000-20021970s

Reduced operating marginsReduction of Capital Dollars SpentReduction of organizationalredundancy

UtilityAsset

Management

Time

Profit Centers

Business ModelsReturn on AssetsOpportunity DrivenHolistic approach to costs

Phase A

Cost Containment

Phase B

Cost Reduct ion

Phase C

Asset Management

Future

Cost Center IdentificationBudget Conformance

Measures

BenchmarkingEstablishing Goals

Measures

Overall RevenuesLife Cycle Cost AnalysisReturn on InvestmentPerformance measures (i.e.. Reliability indexes,operational performance etc.)

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Asset ManagementIs it Important?

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Results of 1999 The ICC and City of Chicago hired

consultants to evaluate everything ComEddid and is doing.

Corporate imagine severely damaged Estimated cost of new facilities 200 M+ Loss of management - multiple re-orgs Low employee moral

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Lessons Learned Asset management was not implemented correctly

Lack of focus Poor analysis of data Cost reduction was done incorrectly

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Todays Asset ManagementStarts With

Organization Employees

Processes Procurement Installation

Operation Maintenance

Technology

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Asset Management is notCMMS

Availability

Risks Costs

Asset Management is the balance of

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What is Asset Management? Planning the long term success of the

business Fully integrating processes that are

financially based for Engineering

Operating Maintaining

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Asset Management Types Strategic management

Economics

Reliability/System Performance Risk based- Cant do everything to everything

Tactical management Specific programs for equipment types Results in Generating work tasks

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Strategic Management

Dollar Vs Risk Capital Economics

Optimization of the facility

Cradle to grave O & M Economics

Short - term value Repair to repair

Optimization of the equipment's reliability RCM Six sigma

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Tactical Management

Performance Vs. Work Task Generation

Specific Maintenance Programs that

produce work tasks Oil analysis Power Factor Testing Online monitoring Monthly inspections Overhauls Spare parts

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When to spend Capital $ on

Existing Equipment? Ideally Never But in the real world

Safety Legal Failed Equipment Economics - cost more to repair or maintain than

replace Reliability - risk is to great to business (Politics

etc.)

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When to spend O&M $ onexisting Equipment?

Always - minimum level to maintain system

Real Question What is the minimum level of $ to achieve

the desired reliability?Possible Answer

RCM methods to determine maintenancetasks

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Example 143 bus outages in 2001 Impact to 466,000 customers 18% of system SAIDI Need to reduce to less than 40 per year

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Normalized Bus Outages by Cause - 2001

HumanPerformance

18%Foreign

Interference20%

DefectiveEquipment

18%

Relays

16% Circuit Breakers22%

Loss of Supply5%

Weather 1%

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Applying Strategy Example Reduce outage by 50% in three years Continue to reduce O&M costs by 5% per

year Develop ways to analyze data to determine

tactical programs Review maintenance issues Review Technology Determine to replace of repair

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Example - TacticalCircuit Breakers

22%

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Tactical Management Example Implement yearly breaker timing Refurbish AC 4kV breakers Refurbish GE 12kV breakers Develop training Review current breaker maintenance

program for effectiveness

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Projected Outcome forNumber of Outages

020

40

60

80

100

120

140

160

Events 143 128 103 82

2001 2002 2003 2004

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Projected Outcome to Customers

0

100,000

200,000

300,000

400,000

500,000

CustomersInterrupted

466,000 419,000 336,000 268,000

2001 2002 2003 2004

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Summary

Key Elements of AssetManagement

Return on Investment - Performance LevelExpected

Strategic Management Good Tactical Management Programs Good Business Practices & Processes