Asset Management Applied in

Utilities

By
Don Angell

ComEd Statistics

Peak 24 GW
3.4 Million customers
5000 feeders
800 substations
5,200 miles of 765kv thru 69kV

Evolutionary Progression of Asset

Management
Phase C
Asset Management
Phase B
Phase A
Utility
Asset
Management

Cost Containment

Cost Center Identification

Budget Conformance

Cost Reduction

Reduced operating margins

Reduction of Capital Dollars Spent
Reduction of organizational
redundancy
Measures
Benchmarking
Establishing Goals

1970s

Late 80s

Time

Profit Centers
Business Models
Return on Assets
Opportunity Driven
Holistic approach to costs
Measures
Overall Revenues
Life Cycle Cost Analysis
Return on Investment
Performance measures
(i.e.. Reliability indexes,
operational performance etc.)

2000-2002

Future

Asset Management
Is it Important?

Results of 1999
The ICC and City of Chicago hired
consultants to evaluate everything ComEd
did and is doing.
Corporate imagine severely damaged
Estimated cost of new facilities 200 M+
Loss of management - multiple re-orgs
Low employee moral

Lessons Learned
Asset management was not implemented correctly
Lack of focus
Poor analysis of data
Cost reduction was done incorrectly

Todays Asset Management

Starts With
Organization
Employees

Processes

Procurement
Installation
Operation
Maintenance

Technology

Asset Management is not

CMMS
Asset Management is the balance of
Availability

Risks

Costs

What is Asset Management?

Planning the long term success of the
business
Fully integrating processes that are
financially based for
Engineering
Operating
Maintaining

Asset Management Types

Strategic management
Economics
Reliability/System Performance
Risk based- Cant do everything to everything

Tactical management
Specific programs for equipment types
Results in Generating work tasks

Strategic Management
Dollar Vs Risk
Capital Economics
Optimization of the facility
Cradle to grave

O & M Economics
Short - term value
Repair to repair

Optimization of the equipment's reliability

RCM
Six sigma

Tactical Management
Performance Vs. Work Task Generation
Specific Maintenance Programs that
produce work tasks

Oil analysis
Power Factor Testing
Online monitoring
Monthly inspections
Overhauls
Spare parts

When to spend Capital $ on

Existing Equipment?
Ideally Never
But in the real world

Safety
Legal
Failed Equipment
Economics - cost more to repair or maintain than
replace
Reliability - risk is to great to business (Politics
etc.)

When to spend O&M $ on

existing Equipment?
Always - minimum level to maintain system
Real Question
What is the minimum level of $ to achieve
the desired reliability?
Possible Answer
RCM methods to determine maintenance
tasks

Example

143 bus outages in 2001

Impact to 466,000 customers
18% of system SAIDI
Need to reduce to less than 40 per year

Normalized Bus Outages by Cause - 2001

Relays
16%

Defective
Equipment
18%

Circuit Breakers
22%

Loss of Supply
5%
Weather
1%

Foreign
Interference
20%

Human
Performance
18%

Applying Strategy Example

Reduce outage by 50% in three years
Continue to reduce O&M costs by 5% per
year
Develop ways to analyze data to determine
tactical programs
Review maintenance issues
Review Technology
Determine to replace of repair

Example - Tactical
Circuit Breakers
22%

Tactical Management Example

Implement yearly breaker timing

Refurbish AC 4kV breakers
Refurbish GE 12kV breakers
Develop training
Review current breaker maintenance
program for effectiveness

Projected Outcome for

Number of Outages
160
140
120
100
80
60
40
20
0
Events

2001

2002

2003

2004

143

128

103

82

Projected Outcome to Customers

500,000
400,000
300,000
200,000
100,000
0
Customers
Interrupted

2001

2002

2003

2004

466,000

419,000

336,000

268,000

Summary
Key Elements of Asset
Management
Return on Investment - Performance Level
Expected
Strategic Management
Good Tactical Management Programs
Good Business Practices & Processes