Process Safety Key Performance Indicators

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1 Safety Key Performance Martin Sedgwick Head Of Engineering and R&D Iberdrola Group Iberdrola Group and ScottishPower One of the fifth largest generator / retailers, 1st wind company ScottishPower is part of Iberdrola, a world leader in energy 2nd wind company 3rd player in gas storage One of the fifth largest generator / retailers 1st wind company 1st private producer in Mexico 1st distributor ib t in Brazil Main energy company with a clear focus on clean, sustainable energy provision

2 Safety What if Safety risks were as visible as Health & Safety risks? Which warning signs are most likely to help you avoid an incident? Visible Safety Management System Based on Key Concepts in HSG 254, API 754 and CCPS... Based on Key Concepts in HSG 254, API 754 and CCPS...

3 1 PS Failure of HP feed system pp pipework 2 PS Major Loss of Containment from a High Temperature Pipework 3 PS Pipe rupture and catastrophic weld failure from a major low temperature steam line 4 PS Explosive External Boiler Tube Rupture 5 EWG Switchgear arc flash explosion whilst locally operated 6 CSW Walkways and Gratings Rupture of boiler integral furnace circulating and saturated steam pipework, fabricated in C steel 7 PS materials with an internal diameter > 65mm 8 PS Catastrophic failure of boiler feedwater pipework. 9 PS De-Aerator Vessel Rupture 10 PS Rupture of boiler drains pipework systems including blowdown systems. 11 PS Auxiliary Steam and minor systems PS Combustion generated over pressurisation of enclosures and pipework PFS2 13 EWG Electrocution due to contact with live conductors 14 CSW Falling claddings and objects from buildings 15 CSW Integrity of buildings fabric to personnel access. 16 CSW Spalling of concrete from structures ScottishPower 2008 Commercial in Confidence this document contains information which is confidential and of value to ScottishPower. It may be used only for the purpose for which it has been provided. Prior written consent is required before any part is reproduced or distributed to 3 rd parties. Hazard Swiss Cheese Model Understanding hazards & creating barriers (People, & Plant ) Risk Control Systems 3 Classifications Of Lagging g Event Frequency Fatalities Probability 1 Remote risk with current mitigations Possibility but no expectation Expectation in the UK in 10 years Expectation in the UK in a Year Expectation more than once a year 10 Ranking Reference Frequency Consequence Probability Product 90 Hazards ScottishPower Energy Wholesale Requirements Specification Reporting Safety Management System 13th January 2009 Version 0.8 [Working Draft] 100+ Leading Classification Of s 3 tier approach based on API guidance... 3 tier approach based on API guidance... (Lagging ) Major Safety Significant Safety Minor Safety

4 Safety Management System Philosophy is to visualise Swiss Cheese Model... Further Guidance Not All are of Equal Importance... Operational Control Generic Programme Lagging Active Monitoring and Logging: Breaches Of Plant Limiting Conditions (eg overpressure, overspeed, overtemp) Control Loops Out Of Control Equipment In Manual Operation of protection systems Failure of protection systems Lagging Reporting and Investigation: Near Misses (eg demand on safety system) Loss Of Containment (eg release of high pressure steam) Safety (eg major equipment damage) Leading Statutory Inspections Completed (eg PSSR) Audits To Programme Action Closure Training and Competence Procedures Up To Date Improvement programmes Leading Inspection and Maintenance of Control Systems and Critical Systems Alarm Management Control Loop Performance Completion Of Operational Routine Checks / Testing Shift Logging & Handover Plant Overrides and Defeat of interlock Safety Critical Systems not available High Leading Critical processes undertaken correctly Operations Maintenance Engineering Predictive of Low

5 KPI Risk Ranking Operational Indictors are the key to avoiding incidents... Major Hazard Accidents Need To Be Visible to prevent accidents...

6 Safety Management System Real Time Visibility and Drill Down Information Is Key... Group Governance Cascade up approach... Review Level Governance Body Review Guidance Frequency Energy Wholesale Energy Wholesale Board Consolidated d Major or Key s Monthly Generation Operational Risk Group (ORG) Business Wide Significant s Trends Monthly Generation Groups Coal PRM Gas PRM Hydro PRM Group Significant & Moderate s Close-out rates Monthly Power Stations LN, CK, DD RH, DC, SH, BB, HT CN, GW, LK Local All s Daily 12

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