transmission lines june 24-27, 2014 nashville, tn 2014 transmission & distribution benchmarking...
TRANSCRIPT
Transmission Lines
June 24-27, 2014
Nashville, TN
2014 Transmission & Distribution BenchmarkingData Review Conference
Agenda
◼ Introduction◼ Statistics and System Activity◼ Financial◼ Initiatives and Practices◼ Next Steps
Picture source: www.energy.gov
2
Key benchmarking Issues in Transmission
◼ Transmission Systems are unique and designed to serve a particular geography, customer base, and other generation source and load constraints.
◼ Costs are particularly uneven over time, so really need to be evaluated on a longer time horizon.
◼ FERC capital additions do not reflect actual spending because of CWIP; Activity –based costs provide a more realistic spending level as well as the purpose of expenditures.
◼ There is no agreement on cost normalization; asset base is the best predictor, but circuit miles, structure miles, MWh transmitted, MW-miles can be used to “triangulate” your performance.
◼ Reliability is based primarily on “availability”, but also on contribution to ”End use” Customer reliability.
Regulatory◼ NERC regulations; other Regulatory bodies◼ NERC compliance audits◼ NERC performance standards (TADS)
System Challenges◼ Distributed Generation◼ Interconnections (e.g. Windmill Farms)◼ Aging infrastructure◼ New transmission corridors◼ ROW management under increasing
regulations and restrictions◼ Capacity Constraints◼ Transfer Capability Crisis (mitigated by the
recession)◼ Intelligent Grid (or more intelligent Grid)◼ Upgrading EMS systems◼ Equipment lead times
Organizational Challenges◼ Aging Workforce -- Brain Drain◼ Contractor Management◼ Cross-silo prioritization and involvement in
projects
Industry Methodology
2014:• Cyber security• FERC politicization
3
Statisticsand
System Activity
Landsnet – National Grid, Iceland
4
Transmission versus Distribution
◼ For purposes of this survey, we define distribution to be a voltage level of 45kV and below. The distinction is somewhat arbitrary, but picks a point between 69kv which is generally considered a transmission (or at least sub-transmission) level and 21kV which would generally be considered distribution.
◼ It is unrealistic to ask utilities to redefine their cost or reliability reporting on the basis of these definitions. However, a utility that has very different definitions may want to restate these statistics to better compare their performance.
Distribution Voltage Classes◼ 5kV class (>1kV, <=9kV)◼ 15kV class (>9kV, <=15kV) ◼ 25kV class (>15kV to <=26kV) ◼ 35kV class (>26kV to <=36kV) ◼ 44kV class (>36kV to <=44kV)
Transmission classes >=45kV ◼ <69kV class (>=45kV <69kV)◼ 69kV class (>=69kV <100kV) ◼ 100kV class (>=100kV <200kV) ◼ 200kV Class (>=200kV <300kV) ◼ 300kV Class (>=300 kV <400 kV) ◼ 400kV and above
5
Transmission Lines Demographic Profile
Min Mean Max # of BarsService Territory Wage Rate: Transmission Journey Level Line Worker $36.89 $39.78 $42.15 6
Transmission Staffing: FTEs per $100M Transmission Assets0.00 9.83 23.72 9
ROW Miles Managed per Structure Mile 0% 75% 144% 8 Line work done while the line is energized: Transmission 0.0% 18.7% 50.0% 10System - Demographics Transmission Structure mile per Transmission Circuit 0.00 15.54 38.02 10
Transmission Voltages on system by circuit <69kV 0.0% 4.5% 39.6% 12
69kV 0.0% 20.4% 79.4% 12 100kV class 8.2% 53.6% 93.8% 12
200kV Class 0.0% 12.0% 49.7% 12 300kV Class 0.0% 6.7% 25.2% 12
400kV and above 0.0% 2.8% 9.8% 12Transmission structures on system
Wood poles 0.00% 53.21% 96.63% 10Steel poles 0.30% 14.10% 33.47% 10
Concrete poles 0.00% 1.67% 14.82% 10Steel lattice towers 0.07% 31.02% 71.29% 10
Financial - Demographics
Transmission Line Assets per Circuit Mile $49,469 $188,022 $282,384 9
Add % contracting; % new lines
ADD Financial Demographics: depreciation, CWIPThese were removed at the leaders conference
Contracting of what? We have numbers for every category.
6
TYPES OF TRANSMISSION STRUCTURES ON SYSTEM
Calculation used
ST150.1 / ( ST150.1 + ST150.2 + ST150.3 + ST150.4 ) *
100 , ST150.2 / ( ST150.1 + ST150.2 + ST150.3 + ST150.4 )
* 100 , ST150.3 / ( ST150.1 + ST150.2 + ST150.3 +
ST150.4 ) * 100 , ST150.4 / ( ST150.1 + ST150.2 + ST150.3
+ ST150.4 ) * 100
ST p28
7
TRANSMISSION VOLTAGES ON SYSTEM BY OH CIRCUIT
Calculation used
ST120.3C / ( ST120.1C + ST120.2C + ST120.3C + ST120.4C +
ST120.5C + ST120.6C ) * 100 , ST120.4C / ( ST120.1C +
ST120.2C
+ ST120.3C + ST120.4C + ST120.5C + ST120.6C ) * 100 ,
ST120.5C / ( ST120.1C + ST120.2C + ST120.3C + ST120.4C +
ST120.5C + ST120.6C ) * 100 , ST120.1C / ( ST120.1C +
ST120.2C
+ ST120.3C + ST120.4C + ST120.5C + ST120.6C ) * 100 ,
ST120.2C / ( ST120.1C + ST120.2C + ST120.3C + ST120.4C +
ST120.5C + ST120.6C ) * 100 , ST120.6C / ( ST120.1C +
ST120.2C
+ ST120.3C + ST120.4C + ST120.5C + ST120.6C ) * 100
ST p29
8
TRANSMISSION CIRCUIT MILE PER TRANSMISSION CIRCUIT
Calculation used
(ST120|5_Trans OH & UG Circ Mile v.13) / ( ST120.1C + ST120.2C
+ ST120.3C + ST120.4C + ST120.5C + ST120.6C )
ST p30
9
OH TRANSMISSION STRUCTURE MILE PER OH TRANSMISSION CIRCUIT
#35 and #40 show too little structure miles
Calculation used
( ST120.1A + ST120.2A + ST120.3A + ST120.4A + ST120.5A
+ ST120.6A ) / ( ST120.1C + ST120.2C + ST120.3C +
ST120.4C + ST120.5C + ST120.6C )
ST p31
10
TRANSMISSION CIRCUIT MILES PER TRANSMISSION STRUCTURE MILES
Change to Ratio not %#35 should be close to 1.0;
Calculation used
(ST120|5_Trans OH & UG Circ Mile v.13) / (ST120|5_OH &
UG Structure miles) * 100
ST p32
11
ANALYSIS: T&D PLANT IN SERVICE PER DISTRIBUTION END-USE CUSTOMER [FERC]
Calculation used
( DF70.1 ) / (ST5_T&D Dist End Use Customers) , ( DF70.2 +
TF65.2 ) / (ST5_T&D Dist End Use Customers) , TF65.1 /
(ST5_T&D Dist End Use Customers)
Mean $5,071
Quartile 1 $4,460
Quartile 2: $4,901
Quartile 3: $5,020
ST p33
12
ANALYSIS: TRANSMISSION LINES PLANT IN SERVICE PER TRANSMISSION CIRCUIT MILE
Calculation used
TF65.1 / (ST120_Trans Circ Mile 09)
Mean $188,795
Quartile 1 $129,110
Quartile 2: $213,938
Quartile 3: $244,047
ST p39
13
NEW TRANSMISSION CIRCUIT MILES
Calculation used
SA40.1 / (ST120_Trans Circ Mile 09) * 100
SA p26
14
TRANSMISSION WOOD STRUCTURE TEST/INSPECTION/TREATMENT/REPLACEMENT
#27 has very high % of wood structures replaced
Calculation used
SA65.1 / ST150.1 * 100 , SA65.2 / ST150.1 * 100 , SA65.3
/ ST150.1 * 100
SA p29
15
Issues found: Transmission Line System Statistics and Activity
Page # Q # Primary Issue Who
ST 31 ST120 Too little structure miles 35; 40
ST 32 ST120 #35 too high a ratio of circuit miles/structure miles
35
ST32 ST120 Should be shown as ratio and not % 1QC
SA29 SA65 Very high wood pole replacement rate 27
NA Demographic profiles could use additional metrics: % contracted; % new lines
1QC
16
Financial – Overview of the Cost Model
Working with an adjusted FERC model
Conceptual transmission tower design by Choi Shine Architects17
2013YE 2012YE
Mean Q1 Q2 Q3# of Bars
Mean Q1 Q2 Q3# of Bars
O&M Costs
Trans Lines O&M Expense per Circuit Mile
$5,996 $3,350 $6,085 $6,907 9 $8,992 $3,067 $6,868 $11,593 16
Trans Line O&M per MWh transmitted
$0.90 $0.43 $0.64 $1.29 7 $0.63 $0.33 $0.51 $0.67 15
Trans Line O&M per Total Trans Assets
3.51% 2.17% 3.23% 4.38% 8 2.98% 1.98% 2.43% 4.02% 15
Investment Rate
Trans Line Capital Spending less New Lines per Asset [Activity Based]
13.66% 16.16% 7.81% 2.86% 9 7.11% 8.05% 4.27% 3.24% 14
Trans Line Cost Profile
Investigate why investment rate is high compared to last year
18
Substations
General Plant FERC Costs
Transmission
Capital
Trans Lines
Exclusions
Trans Substations
O&M
Trans Lines
Exclusions
Trans Substations
Distribution
Capital
Dist Lines
Exclusions
Dist Substations
O&M
Dist Lines
Exclusions
Dist Substations
A&G
FERC: The ADJUSTED FERC COST MODEL
FERC provides a general framework Certain costs must be excluded to provide fair comparisons that focus on operations Substation costs must be separated out, including certain allocations
19
FERC: Specific Adjustments
◼ The following page is a schematic of how basic FERC cost data will be adjusted for this benchmarking study. A&G costs will be excluded – Utilities are asked to adjust their costs to exclude costs typically
reported as A&G (e.g. pensions and benefits) from their O&M data. General plant costs will be excluded – Utilities are asked to adjust their costs to exclude costs
typically reported as General Plant (e.g. IT/Communications infrastructure) from their T&D Capital data.
Other T&D Capital exclusions:• Transmission: Land acquisitions and extraordinary items• Distribution: Land acquisitions, street lighting and extraordinary items
Other O&M exclusions:• Transmission: Wheeling, Rents/Leases, IT costs, extraordinary items. If you charge IT
support to account 569, you should exclude it. Regional Market Expenses (Accts 575, 576).• Distribution: Streetlight Maintenance, Rents/Leases, IT costs, extraordinary items. If you
charge IT support to Distribution O&M accounts, you should exclude it.• If you normally charge R&D, such as EPRI dues, to O&M, include it, unless it is an unusually
large amount for this year Substation costs will be allocated from Transmission and Distribution accounts, and similar
adjustments made. ◼ The goal of the exclusions is to provide a fairer comparison of T&D operational performance, by
excluding certain costs that relate to demographic differences not under the control of T&D management.
20
TRANSMISSION LINE O&M & CAPITAL PER ASSET [FERC]Mean 11.06 %
Quartile 1 7.19 %
Quartile 2: 9.79 %
Quartile 3: 10.91 %
Calculation used
(TF20_Trans Lines O&M FERC) / TF65.1 * 100 , (TF5_Trans
Lines Capital FERC) / TF65.1 * 100
TF p2
21
TRANSMISSION LINE O&M & CAPITAL PER CIRCUIT MILE [FERC] [V.13]
#40 does not show up on assets graph;
Calculation used
(TF20_Trans Lines O&M FERC) / (ST120|5_Trans OH & UG Circ
Mile v.13) , (TF5_Trans Lines Capital FERC) / (ST120|5_Trans OH
& UG Circ Mile v.13)
Mean $19,164
Quartile 1 $11,802
Quartile 2: $12,885
Quartile 3: $19,862
TF p3
22
DV| % OF FERC - TRANSMISSION LINE CAPITAL
#31 does not add to 100%
Calculation used
( TF5.6 ) / TF5.1 * 100 , TF5.2 / TF5.1 * 100 , TF5.3 / TF5.1 *
100 , TF5.4 / TF5.1 * 100 , TF5.5 / TF5.1 * 100
Mean 96 %
Quartile 1 100 %
Quartile 2: 100 %
Quartile 3: 100 %
TF p32
Very few adjustments to Capital Additions (FERC) beyond Substation allocations . . .
23
DV| % OF FERC - TRANSMISSION LINES O&M EXPENSE
#31 does not at to 100%; all wheeling costs?
Comments
Calculation used
TF20.8 / TF20.1 * 100 , TF20.2 / TF20.1 * 100 , TF20.3 / TF20.1 *
100 , TF20.4 / TF20.1 * 100 , TF20.5 / TF20.1 * 100 , TF20.6 /
TF20.1
* 100 , TF20.7 / TF20.1 * 100
Mean Quartile
Mean 100 %
Quartile 1 100 %
Quartile 2: 100 %
Quartile 3: 100 %
TF p33
Very few adjustments beyond wheeling.
24
FINANCIAL COSTS ADJUSTMENTS - TRANSMISSION O&M
#31 does not at to 100%; all wheeling costs?
Comments
Calculation used
TF20.8 / TF20.1 * 100 , TF20.2 / TF20.1 * 100 , ( TF20.3 + TF20.4
+ TF20.5 + TF20.6 + TF20.7 ) / TF20.1 * 100
TF p34
25
Financial – Overview of the activity-based
Cost Model
Photo source: Scientific American26
Develop Network Strategy
Develop and Approve Asset Plans
Project/Portfolio Management
A Process Model for Managing the Network
Expand Network
Operate Network
Sustain Network
Add New Customers
Respond to Emergencies
27
ACTIVITY-BASED Cost Model
While FERC has the benefit of being a uniform system of accounts, there are several important shortcomings:
•FERC capital spending lags behind actual spending; costs for large projects go into a Construction Work in Progress (CWIP) account and are not transferred until the assets are placed into service, sometimes a several year lag. •FERC capital accounts generally follow plant accounts and units of property (e.g. poles, towers, and fixtures) – not the typical reasons why utilities spend (e.g. new business)•FERC O&M accounts tend to be more activity-oriented, but do not necessarily track important categories (e.g. vegetation management)
For those reasons, a simplified Activity-Based Costing system was developed to get current year spending by activity. The following diagram depicts the Activity-Based approach
28
Activity-Based Cost Model
Activity-Based Costs
Transmission Lines
Transmission Subs Distribution Subs Distribution Lines
Transmission Line Capital• Serve New• Expand• Sustain• Other • CIAC
T&D Substation Capital• Serve New• Expand• Sustain• Other• CIAC
Distribution Line O&M• Sustain• Other
T&D Substation O&M• Sustain the Network• Operate the Network• Other
Transmission Line O&M• Sustain the Network• Operate the Network
Distribution Line Capital• Serve New• Expand• Sustain• Other • CIAC
The activity-based cost model breaks the expenditures into capital and O&M, and then splits them into the activities shown on the process model introduced above. The following 3 pages provide more details of the individual activities for Transmission, Substations, and Distribution.
2014 Data Collection Guide
29
Activity Based Costs – Transmission Lines
While capital expenditures are split among several different processes from the overall process model, O&M expenses are almost entirely associated with sustaining the network.
Transmission Line Capital• Serve New: Extension to new customers
or utility substations [Industrial/Generation/Wholesale]
• Expand: Capacity Additions (Adding additional lines to existing substations, increasing capacity of existing lines)
• Sustain: Replace/Repair in kind• Sustain: system improvements
(reliability/efficiency)• Sustain: Service Restoration• Sustain: Line Relocations• Sustain: Transmission Operations Center• Sustain: Asset Retirement Costs for
Transmission Plant (FERC 359.1) • Other • CIAC
Transmission Line O&M• Inspection and Maintenance
Expense (except 569.1-4)• ROW/Vegetation Management • Service Restoration• Transmission Operations Center• Engineering/Design O&M
(including FERC 561.5-8)• Other
2014 Data Collection Guide
30
Transmission Line Capital spending (Activity-based) on sustain is decreasing
Spending Category
2013 Q2
2012Q2
2011Q2
Total Capital Spending 6.6% 5.3%
Less Serve New 1.0% 0.6%
Subtotal Cap Add & Sustain
5.6% 4.7%
Less Capacity Adds 3.4% 1.9%
Subtotal: Sustain 2.2% 2.8%
The “replacement” rate can be estimated by successively subtracting activities, such as serve new, capacity adds, line relocations, and storm restoration.
Update for 2014
31
32
TRANSMISSION LINE CAPITAL SPENDING PER ASSET [ACTIVITY-BASED] [V.14]
Calculation used
TF45.1 / TF65.1 * 100 , TF45.2 / TF65.1 * 100 , TF45.3 / TF65.1 *
100 , TF45.1 / TF65.1 * 100 , TF45.4 / TF65.1 * 100 , TF45.5 /
TF65.1
* 100 , TF45.6 / TF65.1 * 100 , TF45.1 / TF65.1 , TF45.7 / TF65.1
* 100
Mean Quartile
Mean 15.08 %
Quartile 1 18.53 %
Quartile 2: 10.16 %
Quartile 3: 6.40 %
TF p11
TRANSMISSION LINE CAPITAL SPENDING SUSTAIN- EX SERVE NEW, EXPAND PER ASSET [ACTIVITY-BASED] [V.14]
• #31 has very high TOC capital activity cost
• See change in title to refer to “Sustain”
Comments
Calculation used
TF45.1 / TF45.1 / 1000000 , TF45.2 / TF45.2 / 1000000 , TF45.3
/ TF65.1 * 100 , TF45.1 / TF65.1 * 100 , TF45.4 / TF65.1 * 100 ,
TF45.5 / TF65.1 * 100 , TF45.6 / TF65.1 * 100 , TF45.1 / TF65.1
, TF45.7 / TF65.1 * 100
Mean Quartile
Mean 4.40 %
Quartile 1 5.31 %
Quartile 2: 2.91 %
Quartile 3: 1.61 %
TF p13
33
OTHER ACTIVITY BASED COSTS: TRANSMISSION LINE CAPITAL SPENDING
Calculation used
TF46.1
Responses
Total Participants 19
Number of Respondants 8
ID Response31 Capital Tools, R&D, Premise Equipment, Facilities28 N/A23 NA38 Environmental/Legislative/Regulatory30 Under line relocations, reimbursements exceeded costs in 201333 Tools and Equipment27 n/a32 Not applicable
34
TRANSMISSION LINE O&M EXPENSE PER ASSETS [ACTIVITY-BASED] [V.14]
Comments
Calculation used
TF55.1 / TF65.1 * 100 , TF55.1 / TF65.1 * 100 , TF55.2 / TF65.1 *
100 , TF55.4 / TF65.1 * 100 , TF55.5 / TF65.1 * 100 , TF55.1 /
TF65.1
* 100 , TF55.6 / TF65.1 * 100
Mean Quartile
Mean 2.91 %
Quartile 1 1.77 %
Quartile 2: 2.29 %
Quartile 3: 4.06 %
• #23, 32, 35 don’t show TOC
• Why isn’t #40 on this chart?? But on the next?
TF p17
35
TRANSMISSION LINE O&M EXPENSE EX OPS CTR PER ASSETS [ACTIVITY-BASED] [V.14]
#27; 35 no inspection costs#35 no ROW#40 Why zero? on this chart but not the previous?
Comments
Calculation used
TF55.1 / TF65.1 * 100 , TF55.1 / TF65.1 * 100 , TF55.2 / TF65.1
* 100 , TF55.4 / TF65.1 * 100 , TF55.5 / TF55.5 / 1000000 ,
TF55.1 / TF65.1 * 100 , TF55.6 / TF65.1 * 100
Mean Quartile
Mean 1.95 %
Quartile 1 1.37 %
Quartile 2: 1.69 %
Quartile 3: 2.72 %
TF p18
36
OTHER ACTIVITY BASED COSTS: TRANSMISSION LINE O&MComments
Calculation used
TF56.1
Responses
Total Participants 19
Number of Respondants 10
ID Response31 Management/Admin, R&D28 Planning and Operating Costs that are not directly charged to the work programs above23 NA38 na40 Misc transmission expense net of O&M Substation included in Pension & Benefits30 N/A33 miscellaneous transmission expenses FF127 n/a35 Internal building rents32 Studies, compliance
TF p23
37
CWIP AS A % OF CAPITAL EXPENDITURES - TRANSMISSION LINE
#32 very low CWIP#28 very high CWIPShow as a ratio
Comments
Calculation used
TF80.1 / TF5.6 * 100
Mean Quartile
Mean 273.3 %
Quartile 1 57.3 %
Quartile 2: 88.2 %
Quartile 3: 350.2 %
TF p24
38
ANALYSIS: SUBSTATION ALLOCATIONS - TRANSMISSION CAPITAL SPENDING
Mean Quartile
Mean 47 %
Comments
This graph shows the percent of total FERC Capital Additions
that have been allocated to Substations.
Calculation used
TF5.2 / TF5.1 * 100
TF 2539
ANALYSIS: SUBSTATION ALLOCATIONS - TRANSMISSION O&M SPENDING
Mean Quartile
Mean 9 %
Comments
This graph shows the percent of total FERC O&M Expenses
that have been allocated to Substations.
Calculation used
TF20.2 / TF20.1 * 100
TF p26
40
Vegetation Management
Expense/Miles Managed (TF p27)
Expense/Mile Trimmed (TF p30)
Expense/Acre Managed (TF p28)
Q2
201
2 (N
=5)
Expense/Acre Trimmed (TF 29)
10x 5x
41
FERC VS ACTIVITY SPENDING: TRANSMISSION LINE CAPITAL PER ASSET [V.14]
#31 did not provide FERC capital#28 Activity capital is much higher than FERC
Comments
Calculation used
TF5.6 / TF65.1 * 100 , (TF45_Trans Line Cap ABC v.14) / TF65.1
* 100
TF p36
42
FERC VS ACTIVITY SPENDING: TRANSMISSION LINE O&M PER ASSET [V.14]
#31 did not report FERC#33,35 FERC O&M is greater than Activity; should be the same.
Comments
Calculation used
TF20.8 / TF65.1 * 100 , (TF55_ABC Trans Line O&M v.14) / TF65.1
* 100
TF p37
43
Issues found: transmission financial
Page # Q # Primary Issue Who
TF 3 #40 is not on chart 1QC
TF 13 #31 high TOC capital; See change in title to refer to “Sustain”
31
TF 17 Why is #40 not on this chart; #23, 32, 35 don’t show TOC
1QC
TF 18 #27; 35 no inspection costs; #35 no ROW;#40 Why zero?;
23,27,32, 35,40
TF24 #32 very low CWIP; #28 very high CWIPShow as a ratio
8,32
TF 25,26 Show as stacked bar 1QC
TF 32,33,34 #31 does not add to 100% 31
TF 36 #31 did not provide FERC capital#28 Activity capital is much higher than FERC
28,31
TF 36 Typo “Capital” 1QC
TF37 #31 did not report FERC#33,35 FERC O&M is greater than Activity; should be the same.
31, 33,35
44
Transmission LinePractices and initiatives
Develop Network Strategy
Develop and Approve Asset Plans
Project/Portfolio Management
A Process Model for Managing the Network
Expand Network
Operate Network
Sustain Network
Add New Customers
Respond to Emergencies
46
Transmission Line Practices/initiatives
2013 Sections◼ Asset Management -- Role of Asset Management,
replacement programs, and problematic equipment◼ Planning/Engineering/Design –Improvement
initiatives and changes to standards ◼ T-line Field Activities – Initiatives underway and
maintenance approaches◼ Work management systems – WMS Vendor and
efforts to improve usefulness◼ Contractor Productivity – Challenges, measures
and initiatives◼ Transmission Operations Center (TOC) – Changes
and challenges.◼ Right of Way –Growth inhibitors, ROW uses,
challenges and practices.◼ Transmission Automation – Technology initiatives
underway◼ NERC Standards – Impact of NERC standards on
transmission organizations, especially Critical Infrastructure Protection (CIP), Protection and Control (PRC), and Facilities Design (FAC).
◼ Maintenance – Inspections, impact of deferred maintenance, initiatives to reduce outages
2014 Sections (by process)◼ Strategy (including Transmission
Automation, and NERC standards) ◼ Asset Management ◼ Transmission Operations Center (TOC)◼ Maintenance (including ROW)◼ Planning/Engineering/Design ◼ T-line Field Construction Activities
(including WMS and Contractor Productivity
47
Transmission Practice Questions
Strategy - Transmission Automation• Top 5 technologies being deployed for Transmission Automation• Other transmission automation technologies
Asset Management• Predicting condition of various critical components • Role of the Asset Management organization in your decision -making• Key responsibilities of the Transmission Asset Management organization• What keeps you up at night worrying about your system• Infrastructure replacement programs underway• Classes of equipment that are becoming problematic: Transmission• Initiatives undertaken to improve getting a job from planning to delivery• Practices around permits and certifications that make planning effective• Transmission line standard changed recently and why• Measure used to track the success of engineering/design function
Transmission Operations Center• Transmission energy control centers• Changes in energy control centers in the last few years• Major challenges facing the energy control center• Initiatives that have been successful in improving the energy control function• Response to External Forces• Changes being made to energy management system (benefits or
challenges)
2014 Sections (by process)◼ Strategy (including
Transmission Automation, and NERC standards)
◼ Asset Management ◼ Transmission Operations
Center (TOC)◼ Maintenance (including
ROW)◼ Planning/Engineering/Design ◼ T-line Field Construction
Activities (including WMS and Contractor Productivity
48
Transmission Practice Questions (cont)
NERC Compliance• Impact of CIP5 and the change from requirements
to results-based regulation• Handling and structuring audits• Separate NERC audits for Critical Infrastructure
and Reliability Standards• People fully-dedicated to the NERC compliance
organization• Process changes implemented for Critical
Infrastructure Protection [CIP]• Organization and staffing levels for Critical
Infrastructure Protection [CIP]• Process changes implemented for Protection and
Control [PRC]• Organization and staffing levels for Protection and
Control [PRC]• Process changes for Facilities Design,
Connections, and Maintenance [FAC]• Positions added for compliance with [FAC]• Future changes coming that will impact on
transmission organization
2014 Sections (by process)◼ Strategy (including Transmission
Automation, and NERC standards) ◼ Asset Management ◼ Transmission Operations Center (TOC)◼ Maintenance (including ROW)◼ Planning/Engineering/Design ◼ T-line Field Construction Activities
(including WMS and Contractor Productivity
49
Transmission Practice Questions (cont)
Maintenance- ROW• Technologies/tools/practices that have improved ROW
management: Chemical growth inhibitors; Herbicides; Other• Use of ROW land• Major challenges - near and long term - being faced by ROW
management• Initiatives successful in improving ROW management operations• Initiatives successful in improving ROW contract management
Field Construction• Number of reporting locations transmission line field personnel
work out of• Most important initiative underway to improve
◼ Transmission line construction◼ Transmission line maintenance practices◼ Transmission line reliability
• Important initiative underway to improve Transmission line reliability: Poles/Towers; Cable; Insulators; Other
• WMS vendor and year of implementation or last major upgrade• Challenges seen in managing a contract workforce: Transmission• Productivity measures in place for contract crews• Practices that have been successful for improving contractor
management
Transmission Maintenance• Regulatory drivers for Transmission Line inspection and
maintenance• Regular inspections performed• Inspections added in the last year
2014 Sections (by process)◼ Strategy (including Transmission
Automation, and NERC standards) ◼ Asset Management ◼ Transmission Operations Center (TOC)◼ Maintenance (including ROW)◼ Planning/Engineering/Design ◼ T-line Field Construction Activities
(including WMS and Contractor Productivity
50
Practice topics
The amount of raw information we gather on initiatives and practices Is voluminous. For the most part it is mostly of interest to subject matter experts – and only if it is an area of immediate concern. Additionally, the answers are presented as text results.
In the past, we have summarized text responses on a few key questions at Data Review. We then more fully developed the summaries for our Insights Conference, and then asked leaders to identify specific areas of concern for presentation at the on-sites presentations.
Last year we did an extensive review and identified key topics. We then developed “themes” or “key success factors (KSF’s)” based upon the questionnaire responses. The following pages show the result of that review and describes the four major topical areas and the “KSF’s” within each topic.
For 2014, we reorganized our questionnaire around these topical areas. Our proposal this year is to validate the responses against our KSF’s, and to develop each topic area as a stand-alone module that can be presented as requested.
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Key Success Factors:Transmission Network Planning
Deploy automation strategy; microprocessor relays, cyber security, and digital fault recorders are most frequently addressed
Assure NERC compliance; CIPS, protection and control, and FAC are noted as having most impact
Use a comprehensive scheduling and permitting process, with early engagement of stakeholders
Use a well-designed process for getting jobs from planning to delivery, with accurate estimating and effective project management
Have current, comprehensive standards covering many specifics, including use of high temperature conductors
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Key Success Factors:Transmission asset management
Develop and use processes to assess condition using both observational and model-based efforts
Identify risk categories including aging assets, reduced budgets, and specific equipment
Strengthen asset management role
Conduct replacement programs. Wood pole inspection and replacement are most common
Identify problematic equipment
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Key Success Factors:Operate the Transmission system
Involve stakeholders in planning system outages
Continue to upgrade EMS
Conduct Timely and Safe Switching Operations
Monitor and Restore Operations
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Key Success Factors:Maintain the Transmission Network
Address challenges to ROW maintenance
Conduct regular inspection programs
Improve maintenance practices; scheduling is most mentioned
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Organization: Strategy on priorities and contracting strategies
Design tools including WMS and compatible units
Construct scheduling and coordination using developers and contractors
Closeout and Follow-up
Key Success Factors:Engineering/Design of sustain/capacity additions
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Key Success Factors:Build Infrastructure (Field Construction)
Improve contracting; oversight, schedule planning, and routine meetings and feedback are some successful practices for improving contractor management
Improve field productivity; initiatives focus on crew size, training, and system changes
Use a Work Management System to schedule jobs. SAP and Maximo are the most used
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Thank you for your Input and Participation!
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About 1QC
Satellite Offices
Debi McLain Cook [email protected]
Tim. [email protected]
Dave [email protected]
Dave [email protected]
Your Presenters
Ken Buckstaff [email protected]
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