value of asset management - wapa...value of asset management 2018 introduction the office of asset...

VALUE OF ASSE T MANAGEMENT

Western AreaPower Administration

VALUE OF ASSET MANAGEMENT 2018

INTRODUCTIONThe Office of Asset Management is WAPA’s functional implementation of the structured philosophy of ISO 55000, the international standard for the management of assets.

Asset Management uses asset information gathered from field crews and subject matter experts during routine work activities to produce valuable data products, which are then used in capital planning, maintenance procedure decisions and other business decisions requiring risk-based analysis.

Assets being evaluated for health and risk include:

l Transmission lines ≥ 100-kV

l Power circuit breakers ≥ 100-kV

l Power transformers

l Phase-shifting transformers

l Oil-filled reactors

l Grounding transformers

WESTERN AREA POWER ADMINISTRATION 1

ABOUT ASSET MANAGEMENT

Asset Management (AM) provides data-driven insight on enterprise assets. This insight supports informed decision making on budget development, capital plans, financial forecasting, maintenance practices, system resilience, reliability, safety and security.

AM creates value by combining extensive field knowledge with insights gained from significant and actionable data. Growth is focused on the following areas:

l Asset analytics

l Data quality

l Risk-management tools

l Additional asset classes for analytics

In addition to asset performance metrics, employees also contribute valuable engineering data and expertise to develop safety manuals and procedures used by field crews.

OBJECTIVES l Integrate all value-added assets into risk-based methodologies to strategically

inform capital investments

l Maximize value of assets

l Correlate asset risk to transmission resilience

l Use asset performance data to inform best maintenance practices

PRIORITIES l Strategically source, collect and use data to inform investment decisions

l Validate data

l Effectively communicate data internally and externally

CONTENTSAbout Asset Management 1

WAPA assets at a glance 2

Asset performance data 3

10-year asset investment projection 10

10-year health and risk projection 11

Reliability-centered maintenance 12

Data communication 15

Data validation 15

Asset Management objectives 16

2 VALUE OF ASSET MANAGEMENT 2018

WAPA ASSETS AT A GLANCEOverview of WAPA Assets

Breakers Transformers Transmission LineSegments

0

200

400

600

800

1000

1200

1400

1600

Num

ber o

f Ass

ets

256/15%

102/21%

199/12%

328/20%

275/17%

603/36%

189/41% 179/37%

83/18%

61/13% 58/12%

68/15% 90/18%

57/12% 59/12%

Assets by Region

Breakers Transformers Transmission Line Segments

WAPA RM CRSP MC DSW SN UGP WAPA RM CRSP MC DSW SN UGP WAPA RM CRSP MC DSW SN UGP

0

10

20

30

40

50

Aver

age

Age

19.1 22.0 18.9 17.422.5

17.4

25.9 25.7 28.823.1

30.824.8

48.7 46.1 48.3 44.6 45.353.4

Average Age of Assets

Substation

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Perc

ent o

f Tot

al

8025%

3611%

5116%

12439%

258%

Substations by Region

Color Legend / Regions:RM CRSP MC DSW SN UGP


ASSET PERFORMANCE DATA

TRANSMISSION LINES

AM formally introduced a condition-based health index for transmission lines greater than or equal to 100-kV for 514 line segments, moving away from age-based assessments. Routine inspection performance ratings on individual structures now drive health-index algorithms to ensure field knowledge is gathered and integrated to determine the condition of WAPA’s transmission line fleet. Risk and health trends for transmission lines will not be reported in 2018 because their performance criteria was reestablished using the condition-based method mentioned above.

Transmission Line Assets Overview

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Miles

UGP

RM

DSW

CRSP MC

SN

7,858 / 45%

3,486 / 20%

2,330 / 13%

2,323 / 13%

1,363 / 8%

Transmission Line Miles by Region

0 5 10 15 20 25 30 35 40 45 50 55

Years

UGP

WAPA

CRSP MC

RM

SN

DSW

53.4

48.7

48.3

46.1

45.3

44.6

Average Age of Transmission Lines

0 20 40 60 80 100 120 140 160 180 200

Number of Assets

UGP

RM

DSW

SN

CRSP MC

179 / 37%

102 / 21%

90 / 18%

59 / 12%

58 / 12%

Transmission Line Segments by Region


Transmission Line Assets Overview

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Miles

UGP

RM

DSW

CRSP MC

SN

7,858 / 45%

3,486 / 20%

2,330 / 13%

2,323 / 13%

1,363 / 8%

Transmission Line Miles by Region

0 5 10 15 20 25 30 35 40 45 50 55

Years

UGP

WAPA

CRSP MC

RM

SN

DSW

53.4

48.7

48.3

46.1

45.3

44.6

Average Age of Transmission Lines

0 20 40 60 80 100 120 140 160 180 200

Number of Assets

UGP

RM

DSW

SN

CRSP MC

179 / 37%

102 / 21%

90 / 18%

59 / 12%

58 / 12%

Transmission Line Segments by Region

Transmission Lines Maintenance Items

0 5,000 10,000

Hours

$0.5M $1.0M $1.5M $2.0MCost

VEG MGMT

CLEARANCE

LOOSE

EXTERNAL - STORM

TESTING

DEGRADED

FOLLOW-UP /INSPECTION

FAILURE

DAMAGED

SWITCHING

Commentary:Chart above currently excludes "UNKNOWN," which accounts for88,234 Hours and $16.8M in costs. "UNKNOWN" will beresolved with improved failure coding, which is already in progress.

Color Legend / Measure:Total CostTotal Hours

Total HoursTotal Cost $24,914,852

128,818


TRANSFORMERS

The asset class of transformers includes power transformers, grounding transformers, oil-filled reactors and phase-shifting transformers. Single-phase assets are typically considered stand-alone assets when part of a three-phase bank.

Transformer Assets Overview

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

Years

SN

CRSP MC

WAPA

RM

UGP

DSW

30.8

28.8

25.9

25.7

24.8

23.1

Average Age of Transformers

0 20 40 60 80 100 120 140 160 180 200

Number of Assets

UGP

RM

DSW

CRSP MC

SN

189 / 41%

83 / 18%

68 / 15%

61 / 13%

57 / 12%

Transformer Count by Region


Transformer Assets: Risk and Health Index Overview

2015 2016 2017 2018

0

10

20

30

40

Num

ber o

f Ass

ets

43

2927

25

Trend: Exceeds Risk Threshold > 2

2015 2016 2017 2018

0

5

10

15

Risk

Sco

re

Dispersion: Exceeds Risk Threshold > 2

2015 2016 2017 2018

-1

0

1

2

3

4

Num

ber o

f Ass

ets

3 3

1

2

Zero trend represents RMR, CRSP and DSW

Trend: Below Health Index Threshold < 50

2015 2016 2017 2018

0

10

20

30

40

50

Hea

lth

Inde

x

Dispersion: Below Health Index Threshold < 50

Commentary:Four out of the five regions have historically maintained a handful oftransformers above the risk threshold, while significant improvementscan be seen in UGP as it approaches a similar count to other regions in2018. Risk is typically adjusted by replacing an unhealthy asset oradding a redundant unit.

Commentary:Median risk scores, identifiable by the middle of the shaded area, havebeen between 4.50 to 5.50 over the most recent 4-year period. Of thefive regions, RMR's risk scores have consistently been on the upperrange, within the 4th quartile.

Commentary:Few transformers have historically fallen below the Health Indexthreshold of 50. Currently, only two transformers are below thisthreshold in 2018, one each within the SNR and UGP regions.Transformer health changes annually based on maintenance practicesto mitigate health.

Commentary:Transformer assets typically float between 40 and 50, when indeedbelow the threshold for Health Index. However, in 2018, one asset has ascore of 25 and outside the norm when looking at the last 4 years.

Color Legend / Regions:RMR CRSP DSW SNR UGP

Transformer Assets: Risk and Health Index Overview

2015 2016 2017 2018

0

10

20

30

40

Num

ber o

f Ass

ets

43

2927

25


2015 2016 2017 2018

0

5

10

15

Risk

Sco

re


2015 2016 2017 2018

-1

0

1

2

3

4

Num

ber o

f Ass

ets

3 3

1

2

Zero trend represents RMR, CRSP and DSW


2015 2016 2017 2018

0

10

20

30

40

50

Hea

lth

Inde

x




Transformer Maintenance ItemsTransformer Maintenance Items

0 1,000 2,000 3,000Hours

$0K $200K $400KCost

UNKNOWN

OTHER

CONTAMINATION

BUSHING

GASSING

LEAK

OIL

DGA

PROT ALRM-DEVICE

NITROGEN

PF

Power Transformers

0 500 1,000Hours

$0K $100K $200KCost

UNKNOWN

FAILURE

BUSHINGS

LEAK

MAINTENANCE

LTC

OTHER

TRIP/LOCKOUT

EXTERNAL -VANDALISM

NITROGEN

Mobile Transformers

Commentary:Failure refers to a bushing failure.

Color Legend / Measure:Total CostTotal Hours

Commentary:"UNKNOWN" will be resolved with improved failure coding, which isalready in progress.

0 100 200 300Hours

$0K $50K $100K $150KCost

LEAK

UNKNOWN

OTHER

OIL

TRIP/LOCKOUT

PROT ALRM-DEVICE

NITROGEN

GROUNDING

FUSE-CIRCUITBREAKER

FOLLOW-UP /INSPECTION

Oil Filled Reactors

0 100 200 300 400Hours

$0K $25K $50K $75KCost

OIL

UNKNOWN

FAILURE

PROTALRM-DEVICE

DGA

OTHER

Phase-Shifting Transformers

Total HoursTotal Cost $2,049,620

12,400

Total HoursTotal Cost $253,477

908 Total HoursTotal Cost $211,854

602

Total HoursTotal Cost $464,227

2,943


POWER CIRCUIT BREAKERS

The circuit breaker asset class includes all oil, gas, air and vacuum breakers operated at greater than or equal to 100-kV.

Breaker Assets Overview

0 2 4 6 8 10 12 14 16 18 20 22 24

Years

SN

RM

WAPA

CRSP MC

DSW

UGP

22.5

22.0

19.1

18.9

17.4

17.4

Average Age of Breakers

0 50 100 150 200 250 300 350 400 450 500 550 600 650

Number of Assets

UGP

DSW

SN

RM

CRSP MC

603 / 36%

328 / 20%

275 / 17%

256 / 15%

199 / 12%

Breaker Count by Region


Breaker Assets: Risk and Health Index Overview

2015 2016 2017 2018

0

10

20

30

40

Num

ber o

f Ass

ets

33

37

32

38


2015 2016 2017 2018

0

5

10

15

20

Risk

Sco

re


2015 2016 2017 2018

0

5

10

Num

ber o

f Ass

ets

1211

12

5


2015 2016 2017 2018

0

10

20

30

40

50

Hea

lth

Inde

x



Circuit Breaker Assets: Risk and Health Index Overview


10-YEAR ASSET INVESTMENT PROJECTION

AM developed the WAPA Asset Risk Estimator, or WARE, for 10-year asset investment projections. WARE considers the current known risk values and projects which assets will exceed threshold limits over the next 10 years. Thresholds for health and risk are established annually based on WAPA’s risk tolerance and capability for mitigation. Assets identified by WARE may be single-phase assets within a three-phase bank.

WARE Results: Possible Future Investment Needs

Commentary:Replacement data is generated by the WARE tool, which uses currenthealth and risk data for the current year, but only uses age data toextrapolate to out years. In addition, asset investment or replacementmay not be the only mitigation option as identified in these graphs.Maintaining the asset back into acceptable thresholds or accepting therisk may also be a mitigation strategy.

Commentary:Replacement data is generated by the WARE tool, which uses currenthealth and risk data for the current year, but only uses age data toextrapolate to out years. In addition, asset investment or replacementmay not be the only mitigation option as identified in these graphs.Maintaining the asset back into acceptable thresholds or accepting therisk may also be a mitigation strategy.

UGP CRSP MC DSW RM SN

$0M

$10M

$20M

$30M

$40M

Conc

eptu

al C

osts

20Asset(s)ExceedThreshold





Possible Transformer Investment10-Year Outlook: 2018 - 2027

CRSP MC UGP RM DSW SN

$0M

$5M

$10M

$15M

Conc

eptu

al C

osts






Possible Breaker Investment10-Year Outlook: 2018 - 2027

*Data for transmission lines will be available starting in 2019.

Assets identified by WARE as exceeding risk thresholds may not necessarily need replacement. Additional maintenance or accepting risk are alternate mitigation actions.

WARE Results: Future Investment Needs


10-YEAR HEALTH AND RISK PROJECTION

Assets that fall outside of the established thresholds are identified for mitigation actions.

The graphs below show a projection of health and risk for the respective assets if current thresholds are maintained.

Risk and Health Index Forecast

Commentary:If the current risk thresholds remain at current set points, risk scorestrend upwards. Reducing the current thresholds may be a solution tothe climbing trend.

Commentary:Health forecasts remain steady and no adjustments to thresholds maybe necessary.



2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

0.05

0.10

0.15

0.20

0.25

0.30

Risk

Sco

re

Transformer Risk Score Forecast

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

85

86

87

88

89

90

91

92

Hea

lth

Inde

x

Transformer Health Index Forecast

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

0.050.100.150.200.250.300.350.40

Risk

Sco

re

Breaker Risk Score Forecast

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

83

84

85

86

87

88

Hea

lth

Inde

x

Breaker Health Index Forecast

AverageMedian


Commentary:If the current risk thresholds remain at current set points, risk scorestrend upward. Reducing the current thresholds may be a solution to theclimbing trend.


Commentary:If the current risk thresholds remain at current set points, risk scorestrend upward. Reducing the current thresholds may be a solution to theclimbing trend.


2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

0.05

0.10

0.15

0.20

0.25

0.30

Risk

Sco

re


2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

85

86

87

88

89

90

91

92

Hea

lth

Inde

x

Transformer Health Index Forecast

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

0.050.100.150.200.250.300.350.40

Risk

Sco

re


2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

83

84

85

86

87

88

Hea

lth

Inde

x


AverageMedian






2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

0.05

0.10

0.15

0.20

0.25

0.30

Risk

Sco

re


2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

85

86

87

88

89

90

91

92

Hea

lth

Inde

x

Transformer Health Index Forecast20

18

2019

2020

2021

2022

2023

2024

2025

2026

2027

0.050.100.150.200.250.300.350.40

Risk

Sco

re


2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

83

84

85

86

87

88

Hea

lth

Inde

x


AverageMedian


RELIABILITY-CENTERED MAINTENANCE

Reliability-centered maintenance, or RCM, is a systematic approach to routine maintenance that focuses on preserving important power system equipment functions. WAPA’s RCM program is based on studies that technically evaluate equipment failure modes and causes as well as identify ways these failures can be prevented. The outcome of these studies are lists of preventive maintenance tasks to be performed at specified time intervals on substation equipment and transmission lines. Spikes in Sierra Nevada regional data are due to the Carr Fire.

Crew Hours Overview as of FYE 2018

Commentary:This is a graphical representation of the percent of time crews in eachregion and WAPA as a whole perform direct work on WAPA assets(wrench time). Wrench time includes preventive maintenance,emergency maintenance, reactive maintenance, correctivemaintenance, construction, operations support, and minor additions,enhancements, and retirements. A goal of 60 % or higher has beenestablished based on industry trending. Maximizing crew time forperforming direct work is a measure of resource managementeffectiveness.

Commentary:This is a graphical representation of the total percent of time thatcrews in each region and WAPA as a whole perform emergency andcorrective maintenance on WAPA assets. A goal of 16% or less has beenestablished based on industry trending. Capturing this metric providesan indication of the overall effectiveness of the Reliability-CenteredMaintenance program. A poor maintenance program would result in anincrease of crew time expended on failing equipment, although in somecases emergency and corrective maintenance may be attributed tocauses beyond RCM control.

50%

55%

60%

65%

70%68%67%

69%

72%

64%

Minimum Threshold

Percent Direct2-Yr Trend of the 4-Qtr Moving Average

0%

5%

10%

15%

3%

4%3%

10%

4%

Maximum Threshold

Percent Repair2-Yr Trend of the 4-Qtr Moving Average

Color Legend / Regions:RM DSW SN UGP WAPA




50%

55%

60%

65%

70%68%67%

69%

72%

64%

Minimum Threshold


0%

5%

10%

15%

3%

4%3%

10%

4%

Maximum Threshold





Commentary:This is a graphical representation of the total percent of time thatcrews in each region and WAPA as a whole perform administrativeduties. Administrative duties include performing “paperwork” such asdrawing updates, general engineering support, credit cardreconciliation, timekeeping, as well as human resource-related dutiesincluding training, attending meetings, union activities, safety andsecurity investigations and environmental inspections. Although nohard goal has been established, 25% or less is considered acceptable onaccount of the amount of training and compliance activities (safety,environmental, NERC, WECC, etc.) are imposed on maintenance craftforces. Minimizing administrative duties of craft personnel results inbetter use of the employee skillset.

Commentary:This is a graphical representation of the total percent of time thatcrews in each region and WAPA as a whole perform any work while inovertime. Although there is no set goal for this metric, tracking percentovertime gives a fair indication of resource (FTE) needs and systemhealth, as typical emergency-type work is unscheduled and often timeseither starts and/or ends during typical non-working hours (overtime).It is worth noting that weather as well as othernon-maintenance-related emergencies are also captured in this metricsuch as the Carr Fire in Sierra Nevada that burned in Shasta and Trinitycounties in California, which resulted in a spike in overtime formaintenance crews to respond to system needs.

0%

5%

10%

15%

20%

25%

15%

12%

21%

16%

11%

Percent Administrative2-Yr Trend of the 4-Qtr Moving Average

0%

5%

10%

15%

12%11%11%

16%

13%

Percent Overtime2-Yr Trend of the 4-Qtr Moving Average




50%

55%

60%

65%

70%68%67%

69%

72%

64%

Minimum Threshold


0%

5%

10%

15%

3%

4%3%

10%

4%

Maximum Threshold




0% 1% 2% 3% 4% 5% 6% 7%

% of [RM+CM+EM] Costs ($32.2M)

Transformer

Gas Breaker

DC Systems

Mobile Trans.

Oil Breaker

Switch

CT/PT/CCVT

INTERPTR

Oil Reactor

Phase Shifter

Cap Bank

Mobile Cap Bank

Vacuum Breaker

Arrester

Air Reactor

Air Breaker

$2.05M

$2.04M

$0.53M

$0.46M

$0.38M

$0.35M

$0.29M

$0.28M

$0.25M

$0.21M

$0.16M

$0.16M

$0.05M

$0.03M

$0.03M

$0.01M

Reactive, Corrective and Emergency Maintenance Costs

Commentary:The total expenditures on reactive, corrective and emergency work across WAPA’s power system for January 2017 through November 2018reached $32.2M, with 77.4% ($24.9M) performed on transmission lines. The top three equipment classes with the most maintenance costsoutside of planned maintenance are transformers, circuit breakers and transmission lines.

T-LINES77.4%

$24.9M


DATA COMMUNICATION

AM must effectively communicate data to stakeholders who use the information to inform their business and capital planning decisions. To ensure strategic communication, an Asset Management Communication Plan is used. This plan identifies all stakeholder groups and assigns roles and responsibilities for executing key communication needs. Stakeholder groups include:

INTERNAL l Senior Leadership Team

l Regional rate-setting organizations

l Financial Leadership Council

l Power Marketing Management Council

l Power System Operations Council

l WAPA Maintenance Management Council

l Information Technology Senior Leadership Team

l Acquisition Collaboration Team

l Regional Asset Management specialists

l HQ Asset Management specialists

l Regional capital planning groups

EXTERNAL l Regional customer groups

l Customer representatives

l North American Transmission Forum

l Electric Power Research Institute

l Regional capital planning groups

l Technical committees

l Engineering and operating committees

DATA VALIDATION

Accurate and current asset management data is important to achieve the confidence required by stakeholders. Validating data is carried out in two ways: qualitatively and quantitatively.

l Incorrect data and missing data reports are prepared monthly to identify gaps in asset data that may be driving incorrect asset health or risk scores

l Asset management data is validated with knowledgeable field crews to ensure asset scoring is representative of true field conditions


ASSET MANAGEMENT OBJECTIVES

NEAR TERM l Strategically add asset classes to the AM portfolio in support of regional capital

investment needs

l Communicate asset management data analyses to stakeholders

l Create more intuitive and informational displays to share asset management data

l Gain better understanding of the causes of planned reactive, unplanned corrective and emergency maintenance that is occurring between preventative maintenance cycles

LONG TERM l Integrate asset health for condition-based maintenance activities

l Streamline collection of asset and maintenance data from field crews and operational systems

l Integrate artificial intelligence into data gathering, validation and analysis

l Implement full lifecycle management of assets


CONTACT AM

Asset Management Program

Western Area Power Administration

www.wapa.gov/About/Pages/asset-management

Chris Lyles, VP of Asset Management

720.962.7249

[email protected]

ENERGYU.S. DEPARTMENT OF

WESTERN AREA POWER ADMINISTRATIONP.O. Box 281213

Lakewood, CO 80228-8213www.wapa.gov

Western AreaPower Administration

value of asset management - wapa...value of asset management 2018 introduction the office of asset...

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