Asset Management Qualifications

Transcription

1 Prepared by: Quanta Technology LLC Contact: Carl L. Wilkins, PE 4020 Westchase Blvd., Suite 300 Raleigh, NC (919) office (919) cell Steven Craig, PE 4020 Westchase Blvd., Suite 300 Raleigh, NC (919) office (919) cell

2 Executive Summary Asset management is a process with which Quanta Technology staff has developed considerable insights and provided a wide range of assistance to electric delivery entities. This document is a summary of the qualifications of the Quanta Technology staff to broadly provide asset management services to electric utility energy delivery companies, reliability organizations and regulatory bodies for all matters regarding transmission and distribution infrastructure. The services we provide include capital budgeting, infrastructure planning, asset condition assessment, maintenance planning, reliability and operational impact assessment, risk analysis, costing studies, resource planning, expert witness and regulatory support, asset management process improvement, and personnel training. This document contains the following information: About Quanta Technology Our value to clients for achieving asset management objectives Our approach to utility asset management strategy and implementation Selected projects performed by the Quanta Technology staff Selected industry landmark publications Credentials of our key staff Our experts have worked closely with every major utility in North America and many around the world. The unmatched breadth and depth of technical knowledge, coupled with an intimate understanding of business drivers, allows our engagement teams to consistently identify ways to reduce cost, improve reliability, and better manage risk throughout organizations. Our staff, many of whom are world-renowned authorities, have extensive and deep expertise to deal with any matter related to asset management. We look forward to an opportunity to discuss your needs and how we can help to meet your objectives. 2

3 An Overview of Quanta Technology Who We Are Quanta Technology, LLC (Quanta Technology) is an expertise-based consulting firm offering a full range of technical consulting services to the electric utility industry with specific expertise in T&D asset management, system planning, operations management, system protection, enterprise applications, and overall utility operations management. Quanta Technology is an independent subsidiary of Quanta Services, Inc. (NYSE:PWR), the largest supplier of specialized engineering constructor services to electric power, gas and telecommunications industries in North America. Quanta Services provides comprehensive infrastructure services for the electric, gas and telecommunications industries. This includes planning, design, construction, maintenance and operations for delivery utilities, generators and large industrial users. Our company was founded with a vision of becoming the leading technical consultancy for the electric utility industry. We pride ourselves on having the highest concentration of top industry experts, and our ability to solve difficult utility problems in ways that consistently become industry benchmarks. Our senior staff includes ten IEEE Fellows, has more than fifty-seven awarded patents, published ten power system text books and hundreds of peer reviewed publications, and has decades of senior utility management experience. Quanta Technology consultants are recognized industry authorities on asset management. Our staff has developed quantitative models for analysis and management of aging utility infrastructures that employ industry leading techniques in analyzing and predicting aging infrastructure replacement needs. Headquartered in Raleigh, NC, Quanta Technology has satellite offices in Oakland, CA; Chicago, IL; Boston, MA; Toronto, Canada; and Ecuador, South America. Our staff consists of approximately 65 full-time consultants and is supplemented by an additional 20+ associate consultants. Our Value to Clients for Meeting Asset Management Objectives There are many reasons that Quanta Technology can assist clients with asset management needs. While the specific values of our services depend upon a client s need, the following are quite often of paramount value. Expertise and Knowledge: Quanta Technology s staff has industry-recognized expertise and leadership in utility energy delivery systems planning and forecasting and asset management obtained through participation as thought-leaders in IEEE and other standards and industry professional and business organizations, through their experience in similar projects, and through personal and corporate-sponsored research and publication. This means Quanta s team members for this project know utility needs well, are up-to-the-minute on industry best practices, and that they know reasons and details behind those practices. Practical Experience: Quanta Technology s staff has many years of utility experience serving as planners, forecasters, operators, maintenance supervisors, managers, executives and various staff members within many major North American utilities, as well a substantial number of international utilities. In addition, they have done consulting projects for dozens of utilities around the world and over a wide range of different conditions. This experience gives them heightened insight into the issues that might come up and the type of work that leads to solid results. Proven Methodology: The asset management, age-condition analysis and modeling, forecasting, planning, optimization, assessment, prioritization, selection and engineering and decision making methods that Quanta Technology applies in its project execution are in all cases well proven technically and practically. There are no black boxes. Everything is transparent, traceable, and fact-based end to end. Quanta Technology personnel are involved in industry working groups and technical committees that in many cases, define industry standards and specifications for operations of utility scale electric systems. 3

4 Focus on Practical Results: Quanta Technology s projects always focus on producing useful information that supports the decisions, policies and issues that power system operators must make with respect to its system to ensure safe and reliable operation. Its approaches and methodology in studies or evaluations of condition and assessment of operational practices always focused on practical application of methods and recommendations that will improve operational performance and safety. Regulatory Expertise: Our staff is intimately familiar with national (U.S. and Canada), regional and state level reliability requirements for energy delivery systems, including those defined by NERC as Critical Infrastructure Protection (CIP) requirements. Expert Testimony: In some cases the studies and analysis performed by Quanta Technology are entered into the record of regulatory proceedings or investigations. Recognizing this potential action, Quanta Technology strives to document and present information in a manner that is supported by applicable standards, procedures, or other legal or regulatory requirements. Our consultants are experienced in providing both written and verbal testimony on findings of projects with highest credibility and professionalism. Access to Services: As part of the Quanta Services family of companies, Quanta Technology has access to the largest group of engineering and construction companies for the electric utility industry in North America. While Quanta Technology is a consulting organization, offering services as outlined in this proposal, other Quanta Services companies offer complete end-to-end design engineering, construction, maintenance, and project management services for utility scale infrastructure projects. Our relationship with our sister companies provides a range of expertise that if not found within Quanta Technology, is readily available. Many clients are aware that asset management studies can enable application of well-meaning but potentially misguided or unproven methodology. Quanta Technology s experience, expertise and track record of our proposed project team s senior members is a measure of assurance that errant judgments and recommendations will not happen. The Quanta Technology project team will use throughout our work only systematic, traceable and documented analysis and assessment methods - with a credible public track record (what might be called proven best practices) which the project team members have used with success many times in the past. A Quanta Technology project team has many strengths but foremost among them might be that the team has accomplished enough and been recognized enough that it does not have to try to overreach, and that it is experienced enough in strategic forecasting and planning to be mindful of the limitations such studies have and the need to avoid over-interpreting or misrepresenting the accuracy and usability of the results. Quanta Technology Capabilities Asset management is a term that is interpreted in many different ways in the utility industry. To some, asset management equates to maintenance of capital equipment. To others, it means risk assessment and mitigation associated with energy delivery infrastructure. To even others, it is the management of the capital investment required to own, operate and maintain the electric delivery infrastructure. To Quanta Technology, asset management is all of these things. A section of this document provides a detailed review of the Quanta Technology approach to utility asset management. The discussion outlines the many facets of asset management strategy and implementation. As a prelude to the strategy discussion, we offer some brief descriptions of Quanta Technology services and capabilities that support broader, more comprehensive asset strategies. Maintenance Management The limited resources, both financial and human, that companies have to dedicate to infrastructure operation and maintenance no longer support the traditional time-based inspections and overhauls of major equipment. More efficient programs based on equipment condition and reliability are required to ensure reliable performance with optimal service intervals. Using our industry and equipment knowledge we can assist our clients in defining and implementing a maintenance program that is based on 4

5 current equipment condition, age, duty, and other operational factors that define the maintenance requirement. Development and implementation of a maintenance philosophy is a critical step in an overall asset strategy. The varying requirements of different apparatus, components, and infrastructure elements may result in a mix of run-to-failure, time-based, reliability centered, and condition based maintenance schedules. The decisions of when and how to use a specific maintenance philosophy can best be supported by information of degradation modes and characteristics of specific equipment and associate failure rates and patterns. Quanta Technology has experience in defining component life cycles and the life cycle management approach for the delivery infrastructure. Equipment Condition, Health & Risk Assessment Today s utility environment includes expectations of higher reliability, lower costs and increased earnings, increased investment in environmentally friendly technologies, rapid fuel price escalation, and the challenge of aging in both the work force and the utility infrastructure. There is regulatory and fiscal pressure to extend the life of existing power delivery assets through better understanding of assets condition, knowledge of operational issues that significantly impact the remaining life of the assets, and implementation of maintenance practices to support the operating objectives. Addressing aging infrastructure is difficult in traditional utility budgeting processes. Our experts are experienced in quantifying the future impact of aging equipment and developing justified multi-year plans that are acceptable to regulators. We provide services to evaluate the current condition of power delivery assets such as power transformers, circuit breakers, and other substation infrastructure as well as distribution networks, cable systems and pole plants to assist utilities in their decision processes around capital equipment operations, refurbishment and replacement. Capital Budget Planning & Optimization In most utilities, there are many capital projects competing for limited funding each budget year. The approach used to establish priorities of projects must be supported by a rigorous process that compares the expected project benefits against corporate goals and objectives. The objectives of safety, reliability, system optimization, risk mitigation, and cost efficiency may be at cross purposes when many projects are put forward and evaluated for funding. A structured, quantifiable process that offers consistent criteria for evaluation of projects with an associated benefit/cost metric is the most effective way to determine where capital dollars can be invested for the best outcome compared to corporate goals. Quanta Technology s experience in evaluating capital budgeting programs as part of a broader asset management and system reliability strategy has resulted in many examples of utility companies making their capital dollar go farther with better results. Models, Tools & Analytics The utility market today is full of software models designed to optimize every aspect of utility operations, budgeting, reliability and planning. Most are effective tools that do what they advertise. However, most are stand-alone products that do not necessarily support a broader, overarching operational and management strategy. Quanta Technology has worked with many commercial products in the asset management, maintenance management, project optimization application arena. We favor no specific software packages. Instead we favor a comprehensive approach to data management and analytical models. The utility must define what it wants from the process and that definition will specify what is needed in a model or tool. Too often, the software package becomes the process which results in limitations and constraints on the organization s ability to pursue their own business objectives. Quanta Technology assists utilities in understanding what the data requirements are for their processes and how best to apply analytics to achieve the business objective desired. 5

6 Our Approach to Utility Asset Management Strategy & Implementation Quanta Technology is convinced that an asset management approach -- a comprehensive and holistic strategy that considers all goals, acknowledges all factors including aging, service quality, business performance and customer base growth, and prioritizes across all resources and options is the best approach to achieve success in the operation of a modern T&D system. This comprehensive approach is beneficial because it can: 1) Rigorously and numerically address multi-attributes, such as the simultaneous desire for business success, customer service quality and employee and public safety, etc. 2) Address problems that have many interacting factors as the operation of any large T&D system inevitably involves 3) Lend itself easily to risk-minimization (reducing as much as practical the probability of failing to achieve key business and customer targets) which is how most successful businesses operate Because of this inherent belief that an effective asset management strategy needs to be comprehensive and holistic, we have evolved the following strategy development structure. 1 We would be pleased to prepare a proposal to show how this approach would be applied to your delivery system to meet your asset management needs. Strategy is the set of policies, guiding principles and functional framework that a company selects in order to set itself up for success: to have the highest likelihood of achieving its fundamental business goals. The company s strategy is driven by its ownership perspective and fundamental goals: Why does it own its asset base? What benefits does it expect from that ownership? Among competing goals for its attention and success, what will it trade-off first, and last? A strategy also recognizes the interactions among the business goals, with and between various external and internal factors that affect them, and the company s strengths and weaknesses (Figure 3-1). For an electric utility, its strategy is its recognition of the myriad trade-offs and synergies among factors such as service reliability, operating cost, aging, storm withstand capability and storm restoration capabilities, operating (loading and maintenance) policies, design standards, equipment specification and human and IT resource allocations. The strategy maps out these factors and their interactions, explains how they will be addressed, and specifies the manner in which that will be done. The Strategy takes into account external and internal factors both good and bad, and acknowledges how they affect one another and interaction with the corporation s goals. Ultimately, it operates by setting requirements for and defining the way various tactical functions will be done: planning guidelines and method, storm hardening requirements and operating policies, regulatory posture and approach, etc. 1 Verification of Quanta Technology s long-standing commitment to this approach, and more details behind its approaches in general, can be found in: Lee Willis s Power Distribution Planning Reference Book 2 nd Edition,, and the CRC Electric Power Substation Engineering Handbook by Willis and Brown. 6

7 Figure 1. Typical Strategy Components and Structure Tactics (Methodologies) are the tools and mechanisms through which the strategy will be executed. In the case of utility asset management this includes the models, data analysis modules, databases, processes, resources (both IT and human) and method to be used. Tactics are largely defined by the strategy: their role is to support its execution and they are defined by the strategy. Implementation is the means through which the tools and mechanisms are applied. This includes processes for their application, quality control and oversight of decisions, and governance. Implementation structure is usually designed hand in hand with tools and methods, but includes recognition that it will be an on-going process that must both evaluate itself and its methodology and tools, and adapt in an evolution of continuous improvement. Tactics and implementation enter into determination of an asset management strategy only to the extent that their practical limitations constrain the organization s selection of feasible strategies. For an operating electric utility, limitations in data or tools required to support certain data assessment methods or predictive/decision-making models, or a lack of resources to execute certain types of plans, affect the asset management strategies it can dependably execute. Therefore, assessment of data, resources, and modeling sufficiency is an important and valid part of determining strategy. However, this does not mean that the models have to be developed, the data polished to the required level of perfection, and the resources immediately put in place before the strategy can be identified and committed. Ideally, they should be finalized after the strategy is developed. Two-Phase Approach Given this reality, Quanta Technology has used a two-stage approach in many projects in the past. Phase 1 deals with helping a client determine and document the best asset management strategy for it, one that fully meets the fundamental goals is set out for its project. At the end of Phase 1, the asset management strategy would be fully defined as would the reasons why it was selected over other alternatives. The required models, data, data libraries and classification and segmentation frameworks, analysis formulae, recording metrics and tracking mechanisms, technology plan, as well as many other details needed to support would be fully 7

8 specified and accompanied by estimates of development and implementation cost, resources, and schedule. Phase II would then develop the tools and systems needed to implement the development and implementation plan along with the Strategy. Quanta Technology recommends this two-phase approach for several reasons: Cost of models and systems: both the initial cost to acquire or develop the capability and continuing cost to maintain and operate can vary greatly among available options for the various functional areas identified as boxes in the bottom of Figure 1. These operating costs are a factor to be considered in determining the strategy. Range of options: In each of the broad functional areas below, there are different types of analytical models and data structures/systems, guidelines, and processes and procedures that can be applied, and a range of details that can be selected to tailor them, once a strategy is identified: Equipment registries and tracking Analytical and predictive age and condition Budget prioritization and project selection Risk analysis and mitigation Technology and capital investment planning Customer needs and service value The different costs and results that one model or another gives, which one set of planning or storm hardening guidelines provides versus another, etc., vary in importance and value from one situation to another. Therefore, the strategy is selected in Phase 1, with full consideration of these costs and ranges of options. Experience & Perspective on Tools & Models Quanta Technology has worked with a wide range of asset management models, data structures, and software in prior asset management projects, including packages from major software vendors and customized modules that it has developed and tailored exclusively for one or several utilities. Quanta Technology also maintains and applies a tool-kit of basic frameworks and analytical approaches and engines for: Weather/storm analysis and normalization Customer base/demand analysis and prediction Value based service analysis Power quality analysis Reliability improvement and valuation Setting planning guidelines Planning and forecasting Storm hardening analysis/needs Age/condition analysis, prediction, and planning Multi-factor/multi-attribute coordination Optimization Please note that Quanta Technology has no preferred or standard tools, models, or methods a deliberate policy to avoid bias in specifying the tools and approaches that are best in each case: the best strategy for a client would be determined in Phase 1. Then, and only then, the best tools and methods to support that well would be identified and obtained/developed in Phase 2. 8

9 Selected Projects by Quanta Technology Staff The following example projects were selected to portray the range of our staff s experience. Capital & Operating Budget Planning for Asset Sustainment Capital Budget Review and Support, FirstEnergy: Helped Cleveland Electric Illuminating to develop and optimize its 2008 capital budget and five year capital plan for all seven operating companies of FirstEnergy in the context of a new asset management approach to project evaluation and justification. Long-Term Transmission and Distribution Plan, Rocky Mountain Power Division of PacifiCorp: In this project, Quanta Technology led a project team to support RMP (Rocky Mountain Power) in developed a ten-year master plan for its T&D system in downtown Salt Lake City, to simultaneously address two important challenges facing the system: substantial growth in load, and major aging/deterioration issues. Portions of the downtown area were expected to double in peak demand over the next decade. Cables were old and had very high failure rates in some categories. Ducts were actually collapsing in places making pulling of cable impossible. Three pipe-type pressurizing transmission lines had ducting that was becoming slightly porous due to aging and a type of corrosion. Concrete structures of vaults and manho0les were visibly deteriorated and rated unsafe. The project team helped RMP build a model of aging replacement B/C and optimize this, merging it with an optimized expansion plan to retire one substation and give the land to the city for a park, add to new substations and substantial additional capacity, refurbish major parts of the downtown system, and replace others. This plan was approved by management and regulators and its being implemented. The techniques developed are used on an ongoing basis at RMP now. Asset Management Assessment, Southern California Edison (SCE): This project examined the processes and methodologies of Southern California Edison with regards to proactive capital equipment replacement on its distribution system with an emphasis on internal budget justification and general rate case justification. The project examined replacement criteria, replacement levels, equipment aging models, and system reliability projections. The project also compared SCE to the asset management practices of other utilities and provided recommendations for improvement. Quanta Technology provided expert witness support for the asset management plan for the SCE 2009 general rate case. Cost and Reliability Driven Asset Management Strategy Overlay, Puget Sound Energy (PSE): Quanta Technology analyzed cost-versus reliability and risk-versus reliability characteristics of the Puget Sound Energy system as an input to the PSE asset management strategy. This includes the required amount of spending required to optimally achieve various levels of reliability at various levels of confidence. A variety of reliability improvement options are considered, including capital additions, operational improvements, increased maintenance, and increased vegetation management. This project also addresses the regulatory and operational usefulness of various reliability metrics for prioritizing reliability spending and for setting reliability targets. Reliability Improvement Roadmap, PSE: Puget Sound Energy was exploring the possibility of significantly improving the reliability of its system. This three-phase project assisted them in this effort. The first phase consisted of the development of a 10-year reliability roadmap, including an assessment of the current state, an identification of the desired future state, and the development of a high-level set of transition steps. The second phase consisted of a detailed cost-versus-reliability assessment for a pilot area to gain a full understanding of cost quantification, benefit quantification, and estimates of budget, time, and resources required to achieve reliability improvement goals on a system-wide scale. The third phase extrapolated results into a system wide plan capable of reducing SAIDI by 50% over the ten year roadmap period. 9

10 Strategic Distribution System Roadmap, Oklahoma Gas & Electric: Quanta Technology led a project team to support OG&E in building its new asset management capabilities that covered aging equipment and how to optimize that, as well as planning and investment in a reliability constrained (targeted SAIDI and SAIFI) regulatory situation. Analysis of aging and aging-effects mitigation programs was an integral part of the model. Deliverables includes database formed form OG&E data and second generation asset models including an optimization engine. Distribution System of the Future, National Grid USA: Quanta Technology developed an overall vision and strategy for the use of technology and revised designs in the electric power delivery system for Massachusetts and up-state New York. Quanta Technology investigated and presented a general pragmatic blueprint for addressing the needs and requirements of the protection, automation and communication infrastructure in the National Grid service area over the next 20 years. While there are many exciting concepts and technologies being proposed in the utility industry, the objective of this project is to present a practical discussion of where the system will go and how the customer should get there. The future needs of customers; the impact of an aging infrastructure, the evolution of an ever-changing variety of product choices, and cost considerations are being evaluated. Standardization of practices in the various service areas covered by National Grid and the impact on system performance is also being examined. Five-Year Delivery System Budget, Nashville Electric Service: Quanta technology prepared a five-year budget for substations, transmission and distribution with special emphasis on planning process and reliability improvement. Worst performing ten-percent of distribution feeders were analyzed using predictive reliability software and recommendations for improvement were evaluated. The results were used. Asset Improvement Opportunities Extreme Wind Hardening, BC Hydro: This project performed a survey of hardening initiatives of utilities in the Pacific Northwest following the severe wind storms of Dec This project also surveyed hardening initiatives in other parts of the country and around the world. Strategic Delivery System Roadmap, Northern Virginia Electric Company (NOVEC): The Quanta Technology team supported NOVEC in optimizing the use of its transmission and distribution system on a business case basis, by including all aspects and resources into a comprehensive business-based asset planning and investment approach. Project includes operational decisions at the monthly maintenance scheduling and daily operation level. Analysis of aging and age-effects, and selection and funding deterioration mitigation programs was an integral part of the model. Deliverables includes database formed from NOVEC data, Excel spreadsheet models along the lines described in Section 2, and optimization system built in SAS. Vancouver Area Reliability Improvement and Roadmap, BC Hydro: Quanta Technology provided advice to BC Hydro on the T&D system reliability and risk criteria for major metropolitan areas with an emphasis on the situation in Vancouver. This scope consisted of a discussion of traditional metrics, an industry survey, five case studies, and an assessment of the situation in Vancouver, possible approaches for new reliability metrics, and a discussion of how these metrics might apply to other metropolitan areas. A follow-up project developed the scope of work required to assess all of the reliability related initiatives currently being pursued at BC Hydro, develop performance targets for Vancouver and the surrounding area consistent with metrics developed in the previous project, and develop an infrastructure roadmap that coordinates existing activities and identifies new required initiatives. 10

11 Reliability Data Assessment, Dominion Resources: Quanta Technology performed several projects including a review of the available reliability data at Dominion to determine whether it was suitable for predictive reliability assessment studies, recommendations were made for future data collection and for the use of existing data in predictive reliability studies, a pilot predictive reliability assessment for the Charlottesville operating division. The latter assessment included a cost-versusreliability analysis and a recommended set of project to meet all reliability improvement targets for least cost. Predictive Reliability Studies, Exelon: One project performed a predictive reliability assessment and developed reliability improvement options for two regions of Commonwealth Edison within the Chicago metro area. Another project recommended the best options for a long-range 20 year substation and sub-transmission supply plan for the PECO Energy center-city Philadelphia region; options that met all planning criteria and those that met 80% of the criteria were developed. Florida Undergrounding Study, Consortium representing all electric utilities in Florida (managed through the Public Utility Research Consortium of the University of Florida): This was a three-phase project: Phase 1 performed a comprehensive literature review and assessment Phase 2 performed four case studies of completed underground conversion projects. Phase 3 developed a model capable of predicting the costs and benefits to all stakeholders for potential underground conversion projects, as well as comparing these costs and benefits to a hardened overhead system Hurricane Hardening Roadmap, Florida Power & Light (FPL): This project developed a hurricane hardening roadmap for FPL. This included the development of a hardening toolkit, standards, specifications, criteria, application guidelines, and supporting tools. It also includes a pilot study that demonstrated and refined these concepts, and provided a basis for a tenyear roadmap in terms of projected cost and effort. Last, this project developed a ten-year reliability roadmap that achieved all FPL s distribution hardening objectives for the least possible cost. Distribution Electric Load Forecasting, PG&E: PG&E was using a manual approach to forecast the distribution load growth for its approximately 250 distribution planning areas. PG&E wants an automated approach that reduces the labor and time to produce forecasts, improve consistency among the distribution planning areas and assures the documentation necessary for regulatory scrutiny. Quanta Technology developed a forecasting methodology that is automated and provided the consistency and documentation necessary for detailed regulatory review. The project had two phases: Phase 1, Quanta Technology studied PG&E's distribution load forecasting procedure, and Phase 2, Quanta Technology developed and evaluated multiple alternatives to meet the project objectives and recommend the best approach to PG&E. Feeder Project Reference Guide, PG&E: Quanta Technology developed a cost-effective reliability improvement plan for all the 12 kv feeders in the San Francisco Division using a predictive reliability model. Quanta Technology used CYMDIST to build the predictive reliability model. The first stage included transferring load and connectivity data from PG&E s existing databases to CYMDIST to set up computational models for all the 12-kV feeders in the San Francisco Division. The models were then calibrated against pertinent average SAIDI values to ensure they accurately represent the reliability performance of the circuits. An ensuing stage included analyzing the impact of a comprehensive set of non-automated and automated measures (e.g., reclosers, automated switches, fuses, etc.) to improve the reliability of each feeder in a cost-effective manner. Finally, Quanta Technology identified a set of cost-effective projects and estimated the system reliability improvement using the predictive model. 11

12 San Francisco Reliability Improvement, PG&E: This project identified specific projects to systematically improve the reliability of the San Francisco distribution system with regards to expected annual performance and low probability but high impact events. The City of San Francisco and the California Public Utilities Commission were joint sponsors of this project. Cost-Benefit Analysis of the Deployment of Utility Infrastructure Upgrades and Storm Hardening Programs, Texas PUC: Quanta Technology was engaged by the Public Utility Commission of Texas (PUCT) for a project scope to determine: The costs and benefits associated with vegetation management and pole inspection programs throughout the State of Texas The costs and benefits associated storm hardening efforts, such as designing new transmission and distribution lines built within 50 miles of the Texas coast to meet the most current National Electrical Safety Code standards The analysis will also consider the societal costs associated with lost productivity during extended power outages and the benefits associated with shorter restoration times, taking into account that some customers may not be able to receive power until damage to homes and businesses are repaired. Long-Range Plan for Southwest Public Service System, Xcel Energy: This project is to design a long range transmission plan for the Southwest Public Service system in New Mexico, Texas and Oklahoma. The project involves identifying key performance metrics and applying those metrics to evaluate various alternative project packages. The analysis was performed using PowerWorld software and focused on steady-state and contingency analysis. Maintenance Audit, Elektra Noreste (Panama): Quanta Technology performed a management audit of the utility s current maintenance plan for 18 distribution substations and all 115 kv lines. Purpose was to establish the current state of maintenance planning and programming at Elektra Noreste and provide comments, opinions and recommendations on potential improvements to the current program. Asset Condition Assessment Nuclear Plant Fleet Hot Spot Analysis, Exelon Generating: In conjunction with Quanta Energized Services, Quanta Technology undertook a contingency planning study with Exelon Generating at all of Exelon s nuclear power stations. The study was for the purpose of identifying single point vulnerabilities in the station outgoing power infrastructure from the step-up transformers to and including the site switchyard. The project developed detailed contingency plans for the placement of bypass jumpers at system vulnerability points to address emerging hot spots that created risk for continued operation of the nuclear facility. Certain elements of the repair work were performed live by Quanta Services. Critical Transmission Line Repair Assessment using Live Services Repair, Jamaica Public Service Company: Quanta Energized Services and Quanta Technology assessed the critical infrastructure repair needs of Jamaica Public Service Company. This project involved the determination of the necessary maintenance work on critical transmission lines. The evaluation indicated that the required corrective maintenance would be most expeditiously performed under energized conditions in order to have the least power delivery service impact. Power Quality Assessment, PEPCO Holdings Inc. (PHI): Quanta Technology will review PEPCO and customer distribution one-lines and power system information, review outage records, perform a coordination study to determine if the existing protective device settings are appropriate (PEPCO and customer owned equipment), and investigate any power quality issues that may have resulted from outages and determine what course of action may be required to mitigate in the future. 12

13 Distribution Wood Pole Life Cycle Strategy, PG&E: This project developed a life cycle strategy for PG&E s 2.3million distribution wood poles. The project s four phases were: 1) Reviewed of PG&E s pole annual inspection and test and treat programs along with associated databases 2) Reviewed of practices against NESC, CPUC and PG&E standards 3) Developed a risk analysis of individual pole failures 4) Developed a metric and methodology for prioritization and prioritized listing of wood poles to be replaced Large Load Capacity Analysis, Ameren: Performed interconnection studies related to large load additions on Ameren s 34.5kV and 69kV systems. Identified capacity requirements based on equipment loading and impact to system voltage criteria and voltage flicker. Also assisted with area study to identify capacity deficiencies on their 34.5kV system and evaluate substation and feeder loading criteria. Investigate Delivery System Losses, Consolidated Edison: Evaluated losses on the transmission and distribution system in the Consolidated Edison Company of NY territory. This included analyzing data from both the secondary network systems in New York City as well as the radial systems in Westchester County. The goal was to determine the cost of supplying VARs to various classes of customers and determining ways to mitigate KW losses on the system. A similar study was performed for Orange and Rockland system; this study concentrated primarily on the distribution system but included evaluation of the transmission system. Stray Voltage Analysis, National Grid USA: The project included complex studies and analyses related to the subject of "stray voltage" for transmission and sub-transmission networks as defined by the New York State PSC Order Instituting Safety Standards 04-M Quanta Technology work and report included the following: Conducted various stray voltage computer simulations utilizing EMTP-RV program with variable system parameters including: different line designs, different structural constructions and different system voltage and work conditions. Compared stray voltage computer simulation results with measured results obtained during first testing cycle on transmission structures. Explained transmission and sub-transmission protection relaying practices. This section includes necessary discussions related to the application of NESC to design methodology in order to provide protection to the public. Clarified definitions of stray voltage, induced voltage, temporary overvoltage, contact voltage, step and touch voltages and outline differences between these terms. Provided a benchmarking of stray voltage term against stray voltage definition outlined by New York State PSC Safety Standards 04-M Recommended necessary changes to mandated stray voltage testing on transmission structures. Overvoltage Investigation, Northern Virginia Electric Cooperative (NOVEC): Quanta Technology performed a coordination study and power quality assessment for high voltage AOC vaults and spot networks. Large Motor Study, Spectra Energy: Spectra Energy, previously the natural gas businesses of Duke Energy and now an independent company, requested a feasibility study for new or additional motor loads at various existing pumping station locations to support the varying loads of local gas distribution. The Quanta Technology study provided cost estimates and construction requirements that would be necessary to accommodate Spectra Energy s proposed motor loads. This project benefited Spectra Energy by helping them prioritize projects, efficiently plan budget, and also provided documentation for future planning for proposed motor load installations. 13

14 Arc Flash Study, East Carolina University (ECU): Quanta Technology performed an arc flash hazard study of the electrical distribution system on the Health Science Campus at ECU. Study results identified category levels that suggested appropriate Personal Protective Equipment (PPE) to be worn while performing work on or nearby facility equipment. Electric Reliability and Equipment Conditioning Assessment, Huntsman: Huntsman, a global manufacturer and marketer of differentiated chemicals, requested Quanta Services Dashiell Corporation and Quanta Technology to perform a review and assessment of Huntsman s existing electric infrastructure with specific emphasis on evaluating the facilities from the perspective of current leading practices in design for reliability. The outcome of this project was the identification of opportunities to improve Huntsman s electric infrastructure reliability as measured by established reliability performance metrics. Reliability Metrics Transmission System SQRA Assessment Methods, EPRI: The overall goal of this project was to provide senior executives with the knowledge, insights, and collaborative resources they need to make informed decisions about transmission system performance. This scope of work was part of the EPRI project P , Measurement and Management of Security, Quality, Reliability, and Availability (SQRA). The specific goal of this report was to document the state-of-the-art in transmission performance metrics for the purposes of improved management of these systems and for responding to new and future NERC and other regulatory oversight. There are three main sections of this report: Section 1, Transmission Performance Metrics; Section 2, Case Studies; and Section 3, Future Trends. Reliability Improvement Project Prioritization, EPRI: This project conducted research on the type of reliability improvement projects and how they should be evaluated, is, duration of outage, frequency of outage, and momentary interruptions. Each project affects different reliability metrics, and obtaining the optimal portfolio has been a major challenge to utilities. Quanta Technology developed a methodology for prioritization and recommended how utilities should properly evaluate the cost effectiveness of such projects. Mining data from other data sources for asset management leads to better estimates of asset health and hazard rates to enable better prediction of when maintenance should be performed to avoid major service interruptions. Using such data and marginal cost-benefit evaluation methodology help a utility arrive at an optimal project portfolio. Other EPRI Projects: Asset Management Guidelines: this project rewrote the EPRI report, Guidelines for Power Delivery Asset Management, to be consistent with the PAS-55 asset management standard. Reliability Cost and Benefit Analysis: this project documented the issues and recommended approaches to project prioritization based on reliability and cost; it included consideration of metrics, data, predictive modeling, benchmarking, risk management, and tracking actual results. This latter project resulted in EPRI report , Justification and Prioritization of Reliability Improvement Projects. Economic End of Life Analysis Transmission Life Extension and Modernization Assessment (NYPA): Ongoing effort to perform comprehensive assessment of the system assets including current condition, remaining life, risk of failure, and prioritized planning for risk mitigation. Analysis includes substation equipment, transmission line structures, line insulators, and other specific asset condition issues identified by the client. 14

15 Transmission Component Life Cycle Strategy (PG&E): This project conducted comprehensive research of industry practices in the life cycle management of various transmission line components (conductor, insulators, towers, foundations, switches) and compared the client s experience to the industry. Additionally, a detailed data analysis of the client s maintenance and failure records was conducted to develop component specific failure rates which recognized geographic and operational variables. Information developed in this project used in development of a comprehensive asset strategy for the system. Aging Infrastructure Assessment, Pacific Gas & Electric (PG&E): In a series of projects, the client focused on one asset class at a time, Quanta Technology has helped PG&E better understand the failure rates, expected lifetimes, and optimum equipment lifetime management policies for its major equipment categories characteristics of its underground cables and distribution transformers. This project developed failure rate models based on age, assessed condition where available, loading and other usage factors, and operating history that are able to compute failure rates for classes of equipment with similar characteristics. These models were then used to predict future equipment failure rates for various investment scenarios, and to determine the corresponding impact to broad measures of reliability such as SAIFI and SAIDI. PG&E was also interested in identifying models other utilities were using, and their potential applicability to PG&E. As such, this project also performed a survey of 20 utilities with regards to their practices in the area of cable failure rate modeling. Using the results from some of these projects, Quanta Technology provided expert witness testimony related to aging infrastructure for the PG&E 2007 general rate case filing. This included the projected impact of aging infrastructure on distribution reliability and its expected cost. Asset Failure Analysis Wood Pole Failure Assessment, Midwest Energy: Quanta Technology performed a forensic analysis after a wind storm blew down a series of 24 transmission poles spanning 2 miles. This included a review of maintenance records, a pole loading analysis, and a comparison to nearby distribution pole performance. Outage Event Study, PSE: This project assessed an outage event that resulted in a blackout of a portion of the PSE system. The event was preceded by an extensive set of scheduled outages, followed by relay misoperation and island formation. Quanta Technology provided a root cause assessment of the event and presented recommendations for improvement. Vancouver Manhole Fire and Outage Investigation, BC Hydro: Quanta Technology was asked by BC Hydro to be part of an expert panel to investigate circumstances surrounding and immediately following a July 14, 2008 fire in a manhole in downtown Vancouver, which resulted in the interruption of about 20% of the city service. The activities requested of the panel by BC Hydro included the following: (1) perform a reconnaissance of the site and the post incident investigation activities; (2) attend meetings and presentations covering the full scope of BC Hydro s operational activities with respect to protection against loss of primary feeders through fire and other heat related failures; and (3) independently prepare a report for BC Hydro s Chief Safety, Health and Environment Officer on the findings using established industry practices as the comparison benchmark. This report was submitted to the regulatory authority of British Columbia. Distribution Equipment Failure Review, BC Hydro: BC Hydro requested a review of their current programs to address inservice failures of large populations of common distribution line equipment. The company was experiencing notable failures of both porcelain cutouts and automatic line splices. In both cases, the failure rates were not high but the actual failures were issues of public and employee safety. Quanta Technology undertook a review of BC Hydro s programs for equipment 15