Practices and initiatives

penredheadManagement

Nov 18, 2013 (3 years and 9 months ago)

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Transmission Line

Practices and initiatives

Develop Network Strategy

Develop and Approve Asset Plans

Project/Portfolio
Management*

Maintain Network

Replace/Upgrade
Network*

Respond to
Emergencies*

Expand
Network*

Operate the System

Add New

Customers*

Transmission O&M

Transmission Capital

A Process Model for Managing the Transmission
Network

2

*Areas which are not addressed in this presentation

D
E
S
I
G
N

B
U
I
L
D

Develop transmission network strategy

3

Measures;


O&M Costs


Reliability


Asset Replacement Rate

Support:


Engineering


Financial


Regulatory

Technology
:


Transmission Automation


Executive Dashboard/KPIs


Benchmarking &
Performance Measurement




Review Stakeholder Requirements

Identify Performance Gaps

Prioritize and Set Goals

Develop
Multi
-
year
Plans

Monitor
Results from Plan to
Delivery

Inputs: Stakeholder Requirements

Outputs: Goals, Budgets and Action Plans


NERC/FERC


ISO


PUS/PSC


Customers

Situation

• Capital spending has
increased to 6.6% of
assets. Most was for
capacity expansion
and new customers.

• Only 2.2% of this
amount was used for
asset maintenance/
replacement/upgrade

• O&M expense
increased slightly to
3.2%.

Complication

• Regional
Transmission
Planning is highly
regulated and
changing

• Time for project
permitting and ROW
acquisition are
increasing

• Interconnection
requirements are
changing.

• Increased
requirements for
Transmission
reliability

Question

• How are transmission
organizations
improving the
strategic planning
process to meet
these challenges?

Answer


Develop Automation
Strategy


Assure NERC
Compliance


Engage Stakeholders
in Permitting

• I
mprove Planning to
Delivery Process


Update Standards

1QC
Industry
Perspective:

Transmission network strategy

4

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

Improve scheduling and permitting process; early engagement
of stakeholders identified as most important

Improve Process for getting job from planning to delivery;
improved estimating and project management most cited

Update standards; many specifics, including use of high
temperature conductors

5

Improve permitting Process

Early engagement/planning with
stakeholders (5)

28 Early engagement and consultation with First Nation (Aboriginal), Public and government agencies is effective .

35 We work within the State's Public Utility Commission Rules for all transmission line projects.

31 Work with regulatory agencies and allow opportunities to comment on proposed alignment that could affect the
feasibility of a project.

39 Transmission Planning studies ensure that NERC TPL and FAC standards are thoroughly addressed to
demonstrate need and that the system with the addition of proposed projects are adequate.

16 The planning process happens before permits & certifications are pursued.

Bundling
of
work (2)

27 Bundling of work initiative started.

38 Because our Utility Coordination area have become experts in dealing with permits and certifications from the
City, they have been empowered to assist project managers in the acquisition and negotiation of these permits
and certifications.

Data
management (2)

34 Most of the permits are now submitted on line as opposed to previous paper submittals

23 Maintain data base of required permitting

One
-
stop permitting

22 We have initiated a one stop permit request for each project utilizing the services of our Land & Right of Way
personnel. Coordination between the Transmission Planning division and Regulatory Advisors who coordinate the
regulatory approval process for new transmission lines is facilitated by organizational structure. Both groups
report to the same Director.

Other

18 No formal process for certification. As needed basis.

6

Source: Question TP30, Page 10

Update Standards

High temperature
conductors (2)

38 Using high
-
temperature ACSS/TW to allow higher
ampacities
, tends to reduce structure loads
and reduces overall wire weight for the same
ampacity

vs. conventional AAC and ACSR for the
same
ampacity

34 Install ACSS conductor to obtain higher line ratings

Other

28 Specific
standards that have recently changed include: 1. ROW Width Standards, 2. Vertical
Clearance Standards, 3. Underwater and Helicopter Inspection Standards.

35
Added standards for line compensation equipment required for CREZ (competitive renewal
energy zone) transmission line construction.

27
Introduction of composite poles in wetlands. Looking to introduce composite poles in entire
program

31
We have been re
-
evaluating our lightning protection based upon the IEEE Guide for Improving
the Lightning Performance of Transmission Lines. We have been looking at outages associated
with weather events and trying to reduce momentary outages.

23
U
pdated
345kV AC standards as part of regional line project

16
We have changes the attachment detail for polymer post insulators

18 Created standard catalog numbers for insulators and steel poles

Process

22 Meet with user groups to identify required standards needs

17 The substation standards have been recently renewed in support of the development of
compatible units that are used for construction estimates
.



7

Source: Question TP35, Page 11

Improve
the process of Getting a Job from
Planning to Delivery

About half of the initiatives aim to improve the project management process.


Project management (5)

16

We have undertaken the Project Management Initiative in order to improve alignment between Planning, Engineering, Constructio
n,
and
Supply Chain
.

27

Added staff for scheduling all work (lines and techs
).

28

Assign PM as early as possible on in the process (preliminary study/feasibility phase). Process Manager that walks the client

th
rough and
eliminate briars and enable quick response
.

35

Along with the adoption of a two year planning cycle, a
transmission
PM function has been implemented to provide coordination of the
transmission and substation planning, engineering, and construction activities
.

38

We have created a project process along with a custom
project management
database which keeps stakeholders
involved including
heavier communication between
engineering
and construction. We have also recently implemented a stage gate process that tracks the
process and highlights areas that need improvement before we proceed
.


Better estimating (2)

26

Transmission Planning is been working with to improve processes of developing preliminary estimates.

31

The project scoping / estimating / budgeting process has been modified and we are currently documenting and formalizing this
pr
ocess
with all the vested parties. Pre
-
design, pre
-
construction, meetings


Other (4)

18

Consistency in
contractors hired to design and construct projects

22

The company submits future projects that have been approved by leadership to the Transmission Projects Information Tracking (
TP
IT) list
maintained by ERCOT. The TPIT list communicates future projects to ERCOT market participants, indicates whether they are incl
ude
d in
the ERCOT planning models, and is updated three times per year. The company's Substation Engineering and Transmission Enginee
rin
g
groups update the expected
energization

dates and project costs. Transmission Planning consolidates this information and submits the
updates to ERCOT. After the completion of this ERCOT list, Transmission Planning updates an internal Transmission Planning
Sponsored Projects Status report. This list contains all of the projects shown in the TPIT list as well as budgeted projects

th
at have yet to
attain an approved for construction status. These two lists help us communicate to the other company's groups as to the statu
s o
f projects
and ensures that the information we communicate to ERCOT market participants has been vetted through the company's Energy
management.

34

We have developed processes and procedure per ISO requirements.

39

Conduct annual capital budget studies to determine which projects are recommended for inclusion in the five year capital budg
et
.
Transmission Planning is striving to have recommendations communicated by May 3rd
.





8

Transmission
Pg

9

Source:
TP25

Measures:


Replacement Rates


Life Cycle Costs


Reliability

Support:


Engineering


Financial


Rates


Construction

Technology:


Reliability Centered Maintenance


Life Cycle Costing


Maintenance Management System



Condition
Assessment

Risk
Assessment

Life Cycle Decisions
(Retire/Replace/Refurbish/Relo
cate)

Maintenance Standards

Inputs: Strategic Goals

Output: Asset Management Plan

Transmission Asset management

9

Situation

• NERC reliability
standards

• Aging Equipment

• Lack of Data

• Problematic
Equipment

Complication

• Increasing emphasis
on availability

• Loss of key
personnel

• Decreasing Budgets

Question

• How can asset
management be
improved?

Answer

• Develop tools to
assess condition

• Identify risk
categories

• Strengthen Asset
Management role

• Conduct replacement
program

• Develop tools to
predict failure modes


1QC
Industry
Perspective:

Transmission asset management

10

Key Success
Factors:

Transmission asset management

Develop processes to assess condition; observational and
model
-
based efforts underway

Identify risk categories; aging assets, reduced budgets,
and specific equipment identified most frequently

Strengthen Asset Management role

Conduct replacement programs; wood pole inspection
and replacement most common

Identify problematic equipment

11

Strengthen Role of Asset Management

Most of the asset management groups have broad responsibilities, ranging from project
management to scheduling and long
-
term planning.


Broad responsibilities (12)

16

Asset management system contains the inspection / maintenance conditions that drive maintenance projects
.

17

The Asset Management group owns the Current Year Work Plan (CWP) and the Long Range Forecast (LRF) of capital projects and
associated budgets. Asset Management also includes system planning, interconnections, project management, standards, and is
responsible to track and manage system and equipment reliability
.

22

Asset Management Analysis and Strategy group develops strategy, policy, analytics and investment support models related to
management of operational assets. Asset Management services group establishes and facilitates processes that provide effectiv
e
utilization of assets. Vegetation management group ensures reliability through effective tree trimming practices
.

23

Developing long term asset optimization strategy and serve as project managers for asset maintenance
programs.

26

Scheduling of the work and project
management.

27

We supply them the condition data and we review and set program needs.

28

AM
identifies needs, analyses solutions, makes recommendations, seeks approval, sponsors and manages programs to sustain the
transmission assets
.

32

Our
Computerized Maintenance Management System (CMMS) provides the means for optimizing the maintenance of our assets
through the use of condition
-

based tools. It is a decision support system that assists in making
repair / replace / maintain
decisions.
The CBM implementation strategy through CMMS requires the comprehensive integration of data from multiple systems
.

34

They assist us with material storage and acquisition (i.e. warehouse
)

35

Several groups with Asset Management responsibilities (Asset Investment Strategy, Engineering & Maintenance Planning,
Performance Management, T&D System Planning and Strategic Sourcing) coordinate routinely within and with Transmission
Operations to study, analyze and generate short
-

range and long
-

range project and program plans within the scope of regulator
y
and budgetary responsibilities.

38

Evaluate equipment condition and make recommendations for prioritized replacement
.

39

Understanding age, maintenance history, maintenance work types, and maintenance backlog for transmission infrastructure.


None (2)

18

No
formal Asset Management
-

embedded in Tech Svc & Sys
Rel

org

30

T&S department performs asset management of T&S equipment.

12

Transmission
Pg

4

Source:
TP10

Develop process to assess Condition of Critical
Components

A number of companies perform manual processes to predict the condition of critical transmission
components. Three companies use modeling and statistical methods.


Observation
-
based process (7)

16

They are inspected once a year and if damage is spotted the condition is given a rating of low medium or high
.

23

Operational & maintenance history, condition assessment based on
inspection / patrol

26

Number of failures or faults, age, and inspection
results

27

Condition assessment activities, manual &
visual inspections

30

Online
inspections, oil sample, thermography, and
offline
diagnostic testing
.

34

Safety
(arc flash
),
age
,
reliability
and
capabilities cascade
maintenance software used to monitor line
condition

38

Visual
inspection


Model
-
assisted process (3)

28

Statistical analysis of failures in the same asset class (trending)

32

Our Computerized Maintenance Management System (CMMS) provides the means for optimizing the maintenance of our assets
through the use of condition
-

based tools. It is a decision support system that assists in making repair / replace / maintain
decisions. The CBM implementation strategy through CMMS requires the comprehensive integration of data from multiple
systems.

35

Transmission line outage operations, minutes, and faults are tracked and lines are ranked according to reliability for focus
on

poor
performers.


None (2)

22

We do not predict component replacement based on changing condition over time or based on age for the most part. The
exception is certain EPDM polymer insulators that have proven to fail within certain time frames in the past. Also certain
components such as preformed static wire splices were failing at a predicable age, so they were singled out for replacement a
s a
n
asset component. Most repair / replace decisions are made on the spot in the field by highly trained line mechanics based on
the

condition at the time. If we are getting repeat outages at a location, we will investigate possible causes due to poor ground
ing
, bird
contamination, or recent changes in the line configuration.

39

We do not currently conduct predictive maintenance in our transmission system.


13

Transmission
Pg

3

Source:
TP5

Assess Risk Factors: WHAT
KEEPS YOU UP AT
NIGHT WORRYING ABOUT YOUR SYSTEM?”

Aging assets (5)

35
Older air switch performance, older single pole wood lines, older wood pole lines and
trees.

32 The increasing age, deteriorating condition, and decreasing reliability of several classes of
equipment in the system
-

despite continuing efforts at cost effective Condition Based
Maintenance (CBM).

23 Aging infrastructure, limited O&M budgets, pipe
-
type cable

18 Aging infrastructure, lack of personnel and aging workforce

28 Safety, Wooden Cross
-
Arms, Aging assets.

30 Aging
equipment with low failure rates.

Lack of funds (2)

38
Maintaining a good maintenance program AND meeting O&M targets.

16 Proper maintenance cycles to match funding/compliance requirements.

Specific equipment (2)

27 Vibration Dampers

39 Structure failure in a difficult location
.

26 Inability
to inspect / maintain, and paint transmission steel poles that have distribution
underbuild

on them

Major
storm (1)

22 Since our system has been well
-
maintained for over 15 years and was designed with
intended circuit redundancy, worry is limited to adverse weather conditions that may
exceed our structural design conditions such as periodic category 5 hurricanes, tornados,
and major ice storms.

Other

34 Safety and reliability; Accurate records


Source: Question TP15, Page
6

14

2011


Aging Assets (4)


Specific Equipment (3)


Lack of Funds (1)


Major Storm (1)

2012


Aging Assets (3)


Lack of Funds (3)


Specific Equipment (2)


Major Storm (2)


Major Equipment (1)

2013


Aging Assets
(5)


Lack of Funds (2)


Specific Equipment (1)


Major Storm (1)


Other (
1
)



Conduct
iNFRASTRUCTURE

REPLACEMENT
PROGRAMS

W
ood
poles/
crossarms

mentioned (
7
)

22 We replace all pre
-
form static wire splices with compression splices. We
replace all EPDM rubber polymer insulators with silicone.

23 Pole replacement, limited transmission structure replacements

39 A program to replace our wood transmission structures is in its second year.

16 wooden
crossarms
, rotted poles, insulators, etc. are replaced through routine
maintenance.

35 Transmission lines that are rebuilt for increased capacity utilize steel or
concrete poles to replace existing wood poles. Wood
crossarms

are replaced
with steel
crossarms
. Porcelain insulators are

replaced with polymer insulators
.

26
Copperweld

static wire, wood
poles

Other (7)

28
There is a replacement program for each asset class.

27 Damper replacement, conductor sampling and shield wire sampling

38 Replacing oldest transmission lines. Removing oil circuit breakers from the
system.

34 Replace electro
-
mechanicals, line reliability, lines with UFLS to microprocessor

32 Replacement programs currently underway are transmission re
-
conductoring

and static wire replacements.

18 Targeted Asset Replacement Projects and Personnel
Additions

30 We
model specific when equipment maintenance costs exceed replacement
costs
.




15

Wood Pole Age Distribution

[2011 Data] shows 44%
greater than 33 years old;
this compares to towers
(19%) and steel poles (11%)

Wood Pole Age

Group

Composite

Source: Question TP18, Page 7

Identify Problematic equipment

Wooden
elements (4)

28 Wooden elements, spacer dampers, large volume of towers that need painting, corroding tower grillages.

35 Twist sleeves, wood
crossarms

and braces that are nearing end of life.

16 Old wooden structures. Old switches.

18 wood poles, insulators, cast hardware, and non galvanized steel

Vibration dampers (2)

27 Vibration Dampers and 'U' Bolts

38 None at this time

34 Electromechanical relays

Tower
foundations (2)

32 Deteriorating transmission lattice tower foundations; aged conductors and shield wire; poor grounding systems;
and underground HPFF transmission circuits with splice joint movement due to Thermal Mechanical Movement
or Bending (TMM or TMB).

39 345kV foundations are cracking and
spalling
; 345kV access roads are deteriorating.

Sub grade and static wire corrosion

22 Sub
-
grade corrosion and static wire corrosion are the most significant issues we have. Coastal insulators are
also of recent concern, and we have an EPRI project to design a new style of

contamination resistant insulator for testing in 2011/2012
.

Aging equipment

23
Equipment older than 40 years

16

Source: Question TP20, Page 7

O&M: Operate The System (transmission)

17

Measures:


Cost


Reliability


Safety

Support
:


Dispatch Center: Switching Orders


Trouble Shooters


Construction


Engineering


IT/Communications

Technology:


OMS


EMS


GIS


Mobile Data
Systems

Understand Short Term and Longer
Term Operating Environment

Develop Short Term and Longer
Term Operating Plan

Check Current System
Configuration and Status

Conduct Switching and Other
Operational Changes to Meet Plan

Monitor System Changes and
React

Inputs: Load and Weather Forecasts

Outputs: Safe and Reliable System
Operation

Situation

• Increasing Reliability
Demands

• Increasing number of
interconnections

Complication

• Increasing emphasis
on availability

• Constraints on taking
outages for
maintenance

• Penalties for outages

• Aging Workforce

Question

• What are
transmission
operators doing to
improve?

Answer

• Upgrade EMS

• Upgrade TOC
facilities

• Meet NERC
requirements


1QC
Industry
Perspective:

Operate the Transmission network

18

Major Near
-

and Long
-
Term Challenges Facing
Energy Control Centers

The primary challenge facing energy control centers cited by companies is NERC and regulatory
compliance. Four companies also cite aging workforces.


NERC standards (9)

16

WECC has identified & implemented a new
SOL / IROL
methodology that we must meet.

18

NERC
compliance

23

Maintaining
NERC standards compliance for TOP
function.

26

No significant near / long
term changes
planned.

30

None

31

Documentation for NERC compliance

34

ADMS
deployment

35

Dealing with
wind generation
, aging workforce, attracting and retaining qualified personnel, and dealing with increases in
NERC Standards.

38

Managing all the renewable energy projects such as solar, keeping up with regulatory (NERC)
compliance
, and retiring
workforce
.


Aging workforce (4)

22

Aging work

force. Attrition rate. Revised

NERC.

27

Bundling of work managing outage volumes knowledgeable staff

28

Ensuring jobs are safely planned and executed from the moment an outage is requested to when equipment is returned
to service. Ensuring reliable operations in spite of aging assets. Training new staff and managing the loss of knowledge
as a significant number of staff become eligible to retire or seek employment elsewhere.

39

Retirements, doing more with less, compliance
documentation

19

Transmission
Pg

28

Source:
TP125

Key Success
Factors:

operate the Transmission network

Upgrade EMS software

Upgrade TOC facilities

Improve Outage Scheduling Process

20

Transmission Operations Center (TOC)
initiatives

New Software (6)

18 Relocated to a larger facility.

23
EMS cutover completed in June 2012

16 Added state estimator & contingency analysis tools in 2012, resulting in a more
reliable BES.

22 CEII

28 New
error management processes to minimize number of operational near misses.
Improved governance over operating policies/instructions to ensure better
coordinate with Field staff.

35 Displays
on the same electronic wall board that help with situational awareness
.

New Facilities (4)

27 Backup center at
Richview

-

on going testing for NERC requirements

34 New Control Center with video wall replacing the static map board

31 None. until May 2013, new control center combined with Generation Ops including
modern video display wall.

Process

38 The Transmission Scheduler reviews the outage and submits the request to

the ISO, Operations Engineer. This has streamlined a process that was done by paper
for more than 50 years. The system has also taken place of the hand written
operations logs.


21

Source: Question TP120, Page 27

Changes to Energy management System

C
hanges to EMS are primarily to processes (e.g. management systems) or field equipment.


Process
-
related changes (5)

16

Addition of state estimator and contingency analysis has required additional training of system operators & operations engine
er
s.

26

Changed the tags used for Lock
-
Out /
Tag
-
Out;
c
hange management

was a challenge due to the number of personnel impacted by the changes (i.e. training, procedures, job aids, etc.)

27

We now have apps for outage monitoring for customer issues and also for customers to follow outages that affect them. They ca
n
see ETR's etc.
and what is actually happening.

28

We are in the process of commissioning a Distribution Management System and evaluating an integrated Outage Management system

t
o
improve safety and operational efficiency. Soon to be integrating smart metering data to real time operations. Adding online
dyn
amic security
assessment tools (transient and voltage stability) this year. Integrating Voltage /
Var

optimization control of substation transformers. Benefits to
come in the future.

35

Newly upgraded Transmission Network Applications (TNA) from Windows to AIX operating systems. This is to improve security and

a
lso add
additional functionality. The State Estimator displays will be browser
-
based and new functionally will be added to the Operator
Training Simulator.
A time based CIM model of the power system is also being developed to be used to update the power system model in the network

ap
plications,
and send modeling data to the reliability coordinator.

39

Getting a working state estimator and real time contingency analysis tool.


Equipment
-
related changes (3)

34

Since the last report, we upgraded all of our EMS hardware. In addition, we added a Quality Assurance System (QAS) to the clu
st
er that will allow
us to more completely test system modifications in a full, 'hot / standby' environment. Also since last report, we built and
com
missioned an entirely
new control center incorporating several new 'tools' including a large video wall and new visualization software platform. Th
e u
pgrade in hardware
has resulted in a more resilient architecture that is more manageable from a NERC CIP perspective. The visualization and soft
war
e tooling
allowed our operations team to migrate away from an antiquated magnetic wallboard. As expected, the new tooling has been a pr
edi
ctable
'deployment' challenge from both a technical and change management perspective.

38

The

communications

front end

equipment

responsible

for

polling

field

devices

will

be

undergoing

an

upgrade

beginning

this

year,

2013.

The

benefit will

be

having

a

more

reliable

SCADA front end.


None or other (3)

18

Do not have an energy management system, SCADA system is a better characterization. Changes include virtualization and remote

a
ccess.
Virtualization reduces down time. Remote access offers system visibility to other departments.

23

Ongoing

EMS

support

will

be

a

challenge.

31

Minimal

system

upgrades,

no

major

benefit

or

challenge
.

22

Transmission
Pg

31

Source:
TP165

O&M: maintain the network (transmission)

Maintenance Programs:


Inspection Programs (e.g.
Poles, UG Cable,
Streetlights)


Scheduled Maintenance


Emergency Maintenance
(O&M)


Tree Trimming


Measures:


Maintenance Cost

Support :


Engineering


Construction


Meter Shop


Transformer Shop


Communications

Technology:


Maintenance Management System

Gather information on
Maintenance Needs

Prioritize Maintenance Tasks

Develop Detailed Maintenance
Plan

Manage Specific Maintenance
Programs

Perform Maintenance Work

Inputs: Asset Management Plan

Output: Maintenance Accomplished

Perform Maintenance Work

23

Situation

• Increased Reliability
Requirements

• NERC ROW
requirement

• Drought of 2012

Complication

• More regulation

• Public resistance to
vegetation
management


Question

• Ways to improve
maintenance
process?

Answer

• Condition

based
maintenance

• Improved inspection
processes

• Improved
Maintenance
scheduling


1QC
Industry
Perspective:

Maintain Transmission Network

24

Key Success
Factors:

Maintain the Transmission Network

Address challenges to ROW maintenance

Conduct regular inspection programs

Improve maintenance practices; scheduling is
most mentioned

25

Improve Maintenance practices

Scheduling (3)

35 Improvement in work management system including inventory and scheduling of
maintenance.
Geomedia

mapping of transmission lines.

16 Scheduled inspection of all lines. O&M maintenance budgets are tight so this can
impact the desired schedule.

18 Using crews from other areas for patrols, helps put a new set of eyes on the system.
Once we find issues we are correcting them ASAP.

Condition Assessment (2)

32 UG & OH Condition Assessment using the CMMS model.

31 Development and implementation of Cascade Transmission (asset management
system)

Prioritization (2)

28 Work as an integrated planning team to prioritize maintenance works.

38 Minimize overtime and critical lines first

EPRI corrosion

22 Development of a sub
-

grade corrosion inspection and mitigation program in
cooperation with EPRI.

Equipment

27 new pole setting equipment to increase safety and minimize manpower.

Energized work

39 The introduction of Live Line maintenance

Other

23 inspection and
replacement

34 Monthly meetings with Transmission Engineering




26

2012 Categories

Organization

Equipment

EPRI
corrosion program

Asset management

Work management system

Energized work

Intrusive pole inspections

Source: Question TP60, Page 15

Address Challenges facing ROW
MANAGEMENT

Public Resistance (5)

27 Increased public resistance to required vegetation control activities, particularly in urban areas, where there is growing

demand for 'green space. Planting of incompatible vegetation on ROWs, unauthorized
encroachment
onto ROW land(
extending backyards, development, grading,
etc
), increasing demand for notifying parties above and beyond adjacent land
owners or applicable agencies, increased regulation with respect to endangered species is driving increased communication ,
with regulating authorities , operational constraints and increased planning and documentation requirements

34 Property owner cooperation, trained labor, & local regulatory constraints

31 Achieving 100% on herbicide applications on transmission rights
-
of
-

Way due to property owner refusals on herbicide
application on their property.

23 landowner, environmental

39 Permit renewal, environmental regulation, vegetation and structure access

NERC (3)

22 Near term challenges include avoiding grow
-
ins & fall
-
ins within the ROWs to stay compliant with NERC standard FAC
-
003
-
01 and proposed changes; customer education on transmission practices; increased tree mortality with the recent drought
conditions; continued identification of avian nesting sites; and modifying practices to meet new state regulations resulting
fro
m
recent federal court rulings associated with herbicide usage. Long term challenges are keeping vegetation management costs
from escalating & managing changes for NERC regulations.

28 cost pressures vs. expectation of perfection in VM to avoid outages
-

per increasingly stringent NERC standards; public
expectation of ROW management and demand for 'green belts'

38 Surrounding urbanization and associated pressure this brings; NERC oversight and audit

Drought

35 Continuing to respond to regulatory issues, persistent drought and stressed trees.

Other

17 Total functioning GIS for work tracking; Federal agencies impacts to best practices.

16 Major challenges include that the utility operates lines and facilities


27

Source: Question TP180, Page
36

Conduct Regular Inspections

Companies have implemented diverse techniques and schedules for inspections.


16

annual ground patrols of every structure,
bi
-
annual
flight patrols on critical lines,
10
-
year
cycle on
wooden
pole

18

2 walking patrols plus one aerial patrol annual

22

We inspect
1/5
of our system every year (5 year inspection cycle), yearly
inspections
(towers in water),
pre
-
hurricane
season total system inspection by helicopter, weekly
corona inspections
March
-

October

23

annual flight

26

Aerial
patrols
,
three
-
year wood pole
&
select steel climbing inspection
, f
ive
-
year steel structure
climbing
and
comprehensive inspections
,
two
-
year climbing inspections
for
microwave towers and
wood poles
with
fiber
-
optics
,
guy inspection
, RF
antenna climbing inspection
,
visual
ROW
inspection
of
select circuit segments,
transmission wood pole inspection
and
treatment
,
transmission
line surge
arrester inspections (one line only
); visual
inspections of manholes and
terminations

28

Patrol Overview,
detailed
,
climbing
,
test
&
treat
, IR, GEOTECH,
hazard
,
ROW

30

Helicopter fast and slow + walking patrol

31

Wood pole
groundline

inspections and treatment,
visual
inspections (aerial,
fixed
-
wing
) are conducted
on 3,295 miles of the 115kV and above lines
8
-
10
months during the
year

32

Infrared,
grillage
,
concrete
, ROW
patrols
,
aerial line inspections

34

Rotation

35

Aerial patrol of transmission lines conducted
bi
-
annually
. NERC
alert
-
facility rating
plan in
-

progress,
ground
patrol and
aerial inspection.

38

345kV total system; 138kV critical
lines; civil
engineering performs foundation
inspections

39

Aerial

patrol

twice

each year,

ground patrol

once every five

years

28

Transmission
Pg

53

Source:
TP250

CAPEX:
transmission Lines

Measures:


Estimated vs. Actual

Support:


System Planning


Engineering


Financial


Rates

Technology:


CADD


GIS


Network Modeling


WMS


Estimating


Contractor Management




Preliminary Design

Project Review

Detailed Design

Construction

Acceptance Testing and Place In
Service

Inputs: Infrastructure Project Approved

29

Situation

• Reliance on
Contractors

Complication

• Getting more
complicated

Question

• Ways to improve
planning process?

Answer

• Improve contractor
management

• Improve productivity

• Improve Scheduling

• Use Work
Management System



1QC
Industry
Perspective:

Transmission Line capital projects

30

Challenges in Managing a Contract Workforce

Companies cite availability and accountability (such as in safety and adherence to
policy) as challenges of contract workforces. Limited knowledge is also a repeated
concern.


A
vailability and accountability (5)

16

Availability on short notice, often limited technical knowledge, most firms are
out
-
of
-
state
,
unfamiliarity
with
utility standards and
procedures

18

headcount and inability to allow contractors to act as company agents; none since we get set bids on
all work

22

Work
scheduling, outage planning, resource
availability.

31

Safety incidents, manpower availability

35

Contract workforces do not exhibit the same accountability attitude as
company
employees.
Material
-

and
ROW
-
related
issues are hard to settle. True resource availability is difficult to monitor
.


Other or none (6)

23

annual budgets reduction

26

Oversight and governance has less input to contractor selection than contract expectations vs.
procurement.

27

no changes

28

Response of contractors to developing issues is often slower than with our own workforce as they don't
yet have a wide enough presence.

34

Lack of transmission expertise and knowledge

38

We
have fixed
-
price contracts, so contractors manage their own workforce
.


31

Transmission
Pg

23

Source:
TP95

Key Success
Factors:

expand Transmission network

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 Work Management System to schedule jobs; SAP and
Maximo

are most
used

32

improve productivity of field activities

Scheduling (
6
)

28 New systems for scheduling and bundling of work.

35 Requesting a two year budget cycle so engineering is complete prior to
scheduling
construction
resources and clearance requests.

38 Just in time delivery of materials

23
job site show
-
ups

39 The
elimination of excessive travel, job site show up, advanced hot stick
training
for
500kv.

Crew size/skills (2)

22 Right size the crew for the job. Send appropriate number of resources to safely
complete
the job
--

change from job to job. Additional resources are used on other.
Job
site
Show
-
Up when practical for projects of significant duration and distance
from the
service center. The crew shows up at the nearest Service Center and gets
mileage from
their assigned work location. This reduces drive time thereby increasing wrench
time
Leave
large pieces of equipment on ROW or nearby substation with security service
.

30 Cross
training to perform distribution ALM work
.

Equipment

27 New pole setting machine for line or dead work.

Safety

34 Enhance safety and monthly meetings with Transmission Engineering

Contracting

18 We contract out T
-
Line Construction.

31 Bidding of projects to multiple contractors.

Mobile computers

16 The Transmission Asset Management System (TAMIS) using mobile
computers

33

Source: Question TP55, Page 14

2010 Categories


Contractor changes


Aerial device/helicopters


Safety


QA/QC


Standardization

2011 Categories


Contractor Changes


Training


Updating Standards


Scheduling


New Equipment


Change Crew Hours


Hazard Assessment


Crew Size

2012 Categories


Equipment changes


Multi
-
year scheduling


Contracting changes


Scheduling/Coordination


Earlier Material/ROW


Right size crew

Use Work
management
system to schedule work

SAP (3)

22 We utilize SAP for work orders, time reporting, and financial
resource

planning
which was installed in 1999, and we use
an in
-
house

developed
Access Database workforce
management system for work

scheduling
. SAP has periodic version changes
and
the WFMS program

is
revised annually as needs change.

27 SAP
-

2008

38 SAP/Project Management Database

Maximo

(3)

39
Maximo
,
Implimented

in 2012 version 7.5

17 The work management system is IBM
Maximo

for Utilities 7.1 and it was

implemented
4/18/2010. The next scheduled u (1)
pgrade

is version
7.5

and
is expected to be implemented in 2014

26
Maximo

in 2009

In
-
house (2)

28 STARR
-

this is an internal maintenance data program

implemented
early 2000, it is upgraded quarterly.

23 Internal

Cascade
(2)

34
CASCADE

30 Cascade
and Passport (currently upgrading
)

Primavera
(1)

35 Primavera P6. ROW and Construction Management GIS system is in progress.

Passport

18 We currently use Passport as our work management system, but are in the process of assessing all aspects of our WM system
and

processes to improve overall productivity and schedule compliance.

None

31 No
system

18 We
do not have a work management system
-

use Passport via
Ventyx



34

Source: Question TP85, Page 22

SYSTEM

2013

ID#S

2013


2012

201
1

2010

SAP

#22,27,38

3

3

4

3

Maximo

#17,39, 26

2

0

2

2

Primavera

#35

1

1

1

1

Cascade

#34,30

2

0

1

1

Logica

0

0

0

1

1

IN
-
HOUSE

#28,33

2

1

1

1

None

#18, 31

0

1

0

0

Improve Contractor Management

Oversight, schedule planning, and routine meetings and feedback are some successful practices
for improving contractor management.


Successful practice in place (10)

16

Limiting bids to those firms who have a proven record (
ie
.
good work now can lead to more work later), replacement of
key contract leaders if needed,
onsite discussions / tailboards
with
utility inspection
so all understand the work planned
.

18

Long
-
term
relationships with the same
vendors; do
not let contractor work on time and
material; provide
material and pay
accepted bid
labor

22

Utilization of
scheduler
planner within organization to develop and monitor schedules. Regular meetings with contractors
to discuss schedule and potential problems. Monitoring of work to assure
that work
is progressing as planned
.

23

supervisor oversight

26

Routine meetings with workforce and management whereby feedback can be reviewed. A reassessment of our existing
workload approach has lead to greater productivity.
Example: the existing contract
and approach to work included the
assignment of less complex assignments which was driven by the equipment
75
-
bucket
truck versus a
105
-
bucket
truck.
While the rate for the
105
-
bucket
is more, the crews can now be assigned and complete most jobs leading to greater
productivity and an enhanced approach to our overall workload plan (less restrictions
).

27

WPI, contract
monitors and more detailed reports through SAP

28

We have appointed field managers to monitor and provide regular feedback to the contract staff.

31

Contracting construction of transmission lines.

35

Requesting a two year budget cycle so engineering is complete prior to scheduling construction resources and clearance
requests.


None or other (1)

38

We have fixed
-

price contracts, so contractors manage their own
productivity

35

Transmission
Pg

25

Source:
TP110

Thank you for your Input and Participation!

36

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Your Presenters



First Quartile Consulting is a utility
-
focused consultancy providing a full range of consulting services including continuous
process improvement, change management, benchmarking and more. You can count on a proven process that
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needs
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About 1QC

Satellite Offices

Extra slides

Situation

• Multiple industry
challenges:


Regulatory


System


Organizational


Complication

• Getting more
complicated:


NERC CIPS


Interconnects


Aging Workforce



Question

• What are
transmission
organizations doing to
meet the challenges?

Answer

• Our benchmarking
has identified multiple
initiatives to address
critical success factors

1
QC

Industry
Perspective:


for
Transmission Lines

38

Transmission Line Practices/initiatives

The questionnaire
is organized around the following topics
:


Network Planning/Strategy


Planning
/Engineering/Design


Improvement initiatives, changes to standards,
measures


NERC Standards


Impact of NERC standards on transmission organizations


Transmission
Automation


Technology initiatives
underway


Asset Management


Condition based maintenance
,
r
ole
of
asset
m
anagement
,
replacement programs, and problematic equipment


Operate System (O&M)


Transmission
Operations Center (TOC)


Changes, challenges, initiatives,


Maintain System (O&M)


Right
of Way


Growth inhibitors, ROW uses, challenges and
practices.


Maintenance



Inspections
.


Field Activities (
Capital


Expand/Replace)


T
-
line Field Activities


Initiatives underway for
construction and
maintenance

Work
management systems


WMS Vendor and efforts to improve usefulness


Contractor Productivity


Challenges, measures and initiatives


39

1QC Community Key Success Factors

Transmission Lines

Transmission Network Strategy

Asset Management

Operational Excellence

Maintenance

Design and Build Process

40

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.



41

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 Situation
-

Challenges

Complications
-

Bench Methodology

Top 5 TECHNOLOGIES BEING DEPLOYED FOR
TRANSMISSION AUTOMATION

Source: Question TP200, Page
39

42

Other:

34 SEL
RTAC SCADA RTU Integration

16 Trip
security systems to reduce probability of
misoperation
.


Deployment Rank (Top priority = #1)

TOP 5 CLASSES OF NERC STANDARDS BASED ON THEIR
IMPACT ON TRANSMISSION ORGANIZATION

43

Source: Question TP205, Page 39

Not updated for 2013

Impact Rank (Highest = #1)

Future Regulatory Changes that Will Impact
Transmission Organization

Utilities will face changes in regulatory compliance and reporting standards in upcoming years.


CIP Standards (7)

16

CIP version 5 will pose a major impact on the
transmission organization
as will other substantial changes to EOP, PER,
to name a few. Over time demonstrating compliance will become an increasing part
of operational
responsibilities. We
hope the risk based (results based) approach to regulation will decrease the time consumed processing compliance
concerns while providing flexibility to identify & correct deficiencies w/o formal reporting
.

23

Compliance and RTO requirements and reporting processes

28

None from
NERC / WECC
compliance perspective.

31

New and modified version of Standards. Particularly CIP, PRC and TPL.

34

Evolving regulatory standards; CIP Version 4
and / or
Version 5;
changes
to the PER Standards (revising and increasing
training requirements);
changes
in the FAC Standards (specifically, with
respect to
vegetation management
)

35

Future changes will be based on continual Standards revisions
.

38

CIP
Standards V5 will have an impact on our company in preparation for the audit
.


Other (4)

18

NERC requirements, transmission construction, and limited availability of outages.

22

Increased NERC standards support activities.

26

FERC Order 1000

30

Replacing aging equipment


44

Transmission
Pg

51

Source:
TP240

Transmission Energy Control Centers

45

Transmission
Pg

26

Source:
TP115

Most utilities have a
single control center.

Number of Reporting Locations that Host
Transmission Field Personnel

46

Transmission
Pg

13

Source:
TP50

There is a step pattern in
the number of facilities.
Companies either have 1,
3, or more than 7 field
reporting locations.

Productivity Measures for Contract Crews

Eight utilities have developed procedures to improve the performance of contract crews.


Measures in place (8)

16

Contractor's
proposed
schedule compared
to work performed, pricing structures that reward productivity along with
quality work and safe performance, daily on
-
site inspection

18

agreed upon schedule and cost in order to receive repeat
business; we
bid by the job and not by time and
material

22

Estimated cost of labor and equipment versus actual
cost

26

Greater oversight of daily work via
crew leaders and inspector

27

Subject to Work Process Inspection (WPI)

28

We provide them with more accurate information and definition of work to allow them execute the work more efficiently.

31

Measuring similar projects between different contractors to see how long they take and what the final cost is.

34

Inspector is with contractor crew at all times monitoring quality
control / performance
measures


Other or none (3)

23

none

35

Productivity is not an issue from a contractor perspective. Availability design drawings, material, and ROW access are
the biggest hurdles we face.

38

We have fixed
-
price contracts, so contractors manage their own
productivity


47

Transmission
Pg

24

Source:
TP100