Seattle City Light s Asset Management Program



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Seattle City Light s Asset Management Program September 25-26, 2012

Agenda Asset Management vs. WAMS Definitions and Distinctions AM Program Budget Status AM Program Major Accomplishments WAMS Budget Status WAMS Project Status Going Forward

Impetus for Asset Management at SCL City Council approved SCL to implement Asset Management in 2005. Superintendent Carrasco identified purpose in 2005: to achieve greater cost effectiveness by lengthening the life and optimizing the operation of our physical assets. The program will allow us to lower the longterm costs borne by our customers. The adopted Plan recommended a 5-year approach for implementing new asset management capabilities at City Light.

Summary of Life Asset Management Program (LAMP) (Navigant, 2008) Original Assumptions/Basis Five-year implementation timeframe $56 million in funding ($24M in WAMS and $32M in other asset-related activities) Inventory and condition of key assets was known/available

Original Asset Management Program Implementation Plan (2008) Asset Records and Condition Preventative Maintenance Design Standards Centralized records with consistent processes and controls for updates, although not linked through integrated systems Combination of time-based and condition-based; based on stand-alone tools and industry data, rather than historical company trends Common design standards and practices but absent automated design and integrated work/maintenance management tools and systems Data and Systems Governance and Decision Tools Data maintained in a variety of databases, but clearly one version of the truth; centralized approach to manage, purchasing and inventory channels, plus use of work management system(s) Decisions tools combine detailed analytics and subjective measures; governance coordinated across organizations

SCL Asset Management Model Asset Management Program Q: How to Maintain SCL Assets Better? Q: How to invest SCL budget Better? Asset Maintenance Management Asset Investment Management Inventory Project Condition Assessment Project Repair/ Condition Improvement Project Replacement Project New Capacity Growth Criticality Analysis/ Risk Analysis/ Best Practices/SCL Asset Maintenance Procedures Strategic Asset Management Plans/Horizon Plans

Area Power Supply Stations Energy Delivery (Radial Systems) Key Assets Turbines, generators, dams/spillways, auxiliary equipment, I&C, parks/environmental, substations and switchyards Distribution substations and transmission switchyards, including all breakers/relays Street lights, poles and related transformers, capacitors, switches, pole contacts (joint use) Transmission assets (poles, towers) Residential and C&I meters, including instrument transformers, special meters (i.e. interconnection), and primary meters Energy Delivery (Network) Location of cable and wire in GIS (with some cable size data), and cable types deployed for most critical cable (top 20%) Transformers, network protectors, special protection systems, control units, primary cable with size/type, secondary cable without size/type, vaults, manholes Equipment locations (vaults, cable routing/locations, control units, service taps) and primary cable size in network GIS (without vault configuration, cable types, secondary cable size)

Asset Management Program Budget Expenditure Status (in $Million) 2008 2009 2010 2011 2012 Total Anticipated Total 3.3 3.3 3.3 3.3 3.3 16.5 Actual (a) Labor 0.3 0.8 0.6 1.1 0.4 3.2 Non-Labor 0.8 1.8 1.8 1.7 1.0 7.1 Total 1.1 2.6 2.4 2.8 1.4 10.3 (a) Major Expenditures: Pole Inventory Contract, Transmission Tower Inspection Contract, LIDAR Contract, Pole Test Contract, Pole Treatment Contract, AM Program Consulting Contract (CH2MHill)

Program Implementation Realities Asset Records and Condition Preventative Maintenance Design Standards Data and Systems Governance and Decision Tools With few exceptions at the plants, the network and some equipment, asset records (inventory and condition) are not consistently kept and maintained. PM, when performed is inconsistent and not condition based, in part, because records are not maintained to enable condition-based decision making. Maintenance is reactive. Many assets are run to failure. Early stages of creating and implementing design standards; conservative planning criteria has led to under-utilization of assets. Lack of standards causes inefficiencies and inconsistencies throughout system. Performance data is not available or accessible; many vendor and homegrown systems are individually maintained, and do not always share data with each other; some are not fully implemented. Quality of decision tools, and the governance and use appears very judgment-based, and varies among service areas.

SCL Distribution Assets ($1,848 Million) Asset Maintenance Management Asset Investment Management Key Asset Class Inventory Condition Assessment Repair / Condition Improvement (O&M/ CIP) Replacement (CIP) Wood Pole 92,700 Wood Poles ~ 9,100 poles for replacement Pole treatment to extend 10 20 yrs useful life (chemical and trusses) Contract underway 3,596 Poles Replaced Goals: 2,000 poles/ yr Distribution Field Switches Inventory underway Scheduled to begin Fall 2012 Strategic Asset Management Plan being developed. Currently no systematic program - replaced on an asneeded basis URD UG Cable ~345 Miles of 26kV 100 Miles inspected Cable Injection ~70 Miles/year 84 Miles URD Cable replacement for 2013-2016

SCL Transmission & Substation Assets ($164 Million) Key Asset Class Substation Xfmer Station Switches/ Circuit Breakers Transmission Towers (CorTen Steel) Transmission Towers (Steel Lattice) Asset Maintenance Management Inventory Condition Assessment 54 Xfmers 19 Completed ( 2 rating Poor condition) 70-100 Poles About 1,200 Scheduled to begin Summer 2012 RFP for Condition Assessment being finalized. Climbing inspection of about 80 towers in 2010 (no problems) Asset Investment Management Repair / Condition Improvement (O&M/ CIP) Repair/ Replace model (est. Jun 2013) Based on results of assessment No planned activities maybe some future painting Replacement (CIP) Programmatic Approach (est. Dec 2013) No replacement will likely be required None needed.

SCL Production & Generation ($703 Million) Key Asset Class Asset Maintenance Management Inventory Condition Assessment Repair / Condition Improvement (O&M/ CIP) Asset Investment Management Replacement (CIP) Generation Automation Skagit Boundary Tolt Cedar Falls System-wide capability assessment completed Ongoing maintenance of legacy features Boundary system implemented, Skagit implementation underway Generators and Auxiliaries 23 Annual visual inspections, integrity testing, hydroamp condition assessment As-is systems inspected and maintained under PM program, replace as needed Ongoing addition of on-line monitoring in conjunction with overhauls Turbines & Auxiliaries 23 Annual inspection, hydroamp condition assessment PM-based on periodic visual and historic practice Multi-year Investment based on business case

SCL Production & Generation ($703 Million) Key Asset Class Step-up Transformers Dams and Appurtenant Structures Asset Maintenance Management Inventory Condition Assessment 15 RBAM* Completed in 2001 7 Annual operations inspection; 5-year safety inspection Repair / Condition Improvement (O&M/ CIP) PM-based on historic practice (time-based) PM-based repairs, recommendations from 5-yr. Inspection Asset Investment Management Replacement (CIP) Multi-year Investment based on priorities Some auxiliary equipment replaced and/or refurbished for life extension

Design Standards and Compatible Units About 890 CUs in WAMs Key Benefits Standardize designs, materials, products and construction practices throughout SCL s system Increase productivity, efficiency, work planning and scheduling Reduce number of products and materials used by SCL Facilitate training and succession planning, and improve flexibility of crews

Distribution Next Steps Finalize Wood Pole SAMP and Distribution Switch SAMP Inventory and assess condition of substation switches and breakers Inventory and assess condition of URD and Network vaults Continue developing design and construction standards and compatible units Continue implementing wood pole test, treat & replacement

Power Production Next Steps Move 28,000 assets from Maximo to WAMS Verify condition assessments on critical assets using hydroamp Develop Corporate Management Reporting Metrics

Questions? Lynn Mills 206-386-4481 lynn.mills@seattle.gov