Power Risk Engineering Report: Key Information Guidelines for - PowerPoint PPT Presentation

Center for Enterprise Risk Management Power Risk Engineering Report: Key Information Guidelines for Insurance Risk Assessment Ahsan Jamal Risk Engineer

Agenda Introduction General Principles Key Information Requirements Executive Summary - Plant Status - Exposure Assessment - Loss Prevention - Loss Mitigation - Risk Improvement Recommendations

Introduction Purpose  Outline Key Information requirements for Power Risk Engineering Reports  Provide guidance to:  Risk Engineers  Underwriters  Insurance Managers  Plant Engineers

Introduction Scope  Outline STANDARD information for Power Risk Surveys  Identify KEY items of interest to (Re)insurers  Developed by Lloyd’s Market Association (LMA) + London Market Engineers

General Principles Pitfalls to be AVOIDED  Primary customer X Lengthy narrative X Repetition  Report length X Creep  Evidence based opinion X Generic text  Implementation and compliance  Information not provided  Performance data

Introduction Performance data: Examples  Operational Stats  Key Performance Indicators

Key Information Requirements Executive Summary Introduction  Purpose & Scope  Date and duration  Previous survey information  Key survey participants

Key Information Requirements Executive Summary Overview  Brief history, year built, COD  Brief Plant description  Site location & NATCAT exposures  Ownership & management  Future development projects / upgrades

Key Information Requirements Executive Summary Comments and conclusions  Strengths and Risk Improvement areas  Engineering issues – equipment hardware  Management systems  Loss history (last 05 years)

Key Information Requirements Plant Status Plant A Site description  Site aerial view  Site geo-coordinates  Total area  Third party exposures

Key Information Requirements Plant Status Plant description  Site history  Ownership  O&M contract  COD  Plant upgrades  Construction [Foundation details, Use of any flammable materials]

Key Information Requirements Plant Status Plant description  Layout drawing (scaled)

Key Information Requirements Plant Status Plant description  Spatial separation & segregation  Fuel handling  Storage facilities  Powerhouse  Switchyard  Boilers  Turbines  Transformers

Key Information Requirements Plant Status Plant description  Containment / Drainage for main flammable substances  Turbine generator lubricating oil tanks  Generator seal oil skids  Turbine control oil skids  Hydrogen for generator cooling

Key Information Requirements Plant Status Plant description  Cable tunnels / Cable spread rooms

Key Information Requirements Plant Status Plant description  Control Room  Design & location  Control systems hardware  Age  Availability of spares & obsolescence  Shutdown & emergency control systems  Boiler burner management & flame monitoring system

Key Information Requirements Plant Status Plant description  Advanced monitoring systems  Online vibration monitoring for turbine generators  Transformer online DGA  Generator online PD monitoring

Key Information Requirements Plant Status Plant description  Fuel storage & Handling facilities  Bunding arrangement

Key Information Requirements Plant Status Plant description  Major equipment  GTs  ST  Boilers  HRSGs  Transformers

Key Information Requirements Plant Status Plant description  Balance of Plant (BOP)  Redundancy (e.g. 2x100%)  Spares availability

Key Information Requirements Plant Status Plant description  Loss and Incident History  Incident / Loss description  Date of loss  Amount of loss (including < deductible)  Loss history (up to 5 years)  Loss causation / RCA

Key Information Requirements Exposure Assessment Exposures  Fire & Explosion  Technology risks  NATCAT (including physical & procedural controls)  Flood zone (historical flooding)  Third party operations (onsite / offsite)

Key Information Requirements Exposure Assessment Exposures  NATCAT

Key Information Requirements Exposure Assessment Values  Property Damage (PD)  Insurance valuation  Industry benchmark  Breakup of values  Basis of values used in EML / MPL calculations  Business Interruption (BI)  Basis of BI sum insured (e.g. gross profit)  Take or Pay agreement  Seasonal impact on BI exposure

Key Information Requirements Exposure Assessment Loss Estimates  EML / MPL  Catastrophic / worst loss event  All active protection systems are non-operational

Key Information Requirements Exposure Assessment Loss Estimates  EML / MPL Loss Estimate Scenario PD BI Combined PD+ (USD (MW / months BI million) /USD million) (USD million) Property Damage Fire involving gas 66 130 MW / 6 166 turbine and HRSG months / 100 Steam turbine generator Machinery 100 130 MW / 18 400 foreign object damage Breakdown months / 300

Key Information Requirements Loss Prevention Management & Organization  Site Organogram (high level positions)  Recent or proposed changes  Adequacy of staff in critical positions  Staff turnover  Staff training & background  Management of Change (MoC) procedure  Management procedures

Key Information Requirements Loss Prevention Operations  Organization  Shift operations  Staff average experience  Shift handover procedures  SOPs and drawings  Certifications (ISO 9001, 14001 & OHSAS 18001)  Technical support

Key Information Requirements Loss Prevention Operations  Training & Competence Assurance  Training & certification process  Competency definition & assessment  Refresher training program for critical SOPs

Key Information Requirements Loss Prevention Operations  Permit to Work (PTW)  PTW system (existing v/s industry best practice)  Compliance (Audit process & KPI)  Housekeeping

Key Information Requirements Loss Prevention Operations  Equipment Isolation  Procedure (existing v/s industry best practice)  Compliance (Audit process, documentation review)

Key Information Requirements Loss Prevention Operations  Operational Testing Routines  Details & frequency of testing regime  Turbine over speed trips  DC emergency oil pumps  Emergency generators (full load)

Key Information Requirements Loss Prevention Maintenance  Organization  Organogram (no. of staff)  Vacant position & staff turnover  Experience level  Maintenance planning – CMMS  Major overhaul plan (schedule, frequency etc.)  Third party contracts / QA  Long Term Maintenance Agreements (LTMA) / Parts Supply Agreements  Maintenance training

Key Information Requirements Loss Prevention Maintenance  Boilers, HRSGs and Pressure parts  Major / minor outages (scope, frequency, last outage)  Statutory inspection  NDT routines, tube thickness check  Creep life assessment  Pressure relief valves / pressure vessels / pipe hangers and supports  Recommended Codes  Procedure & control for qualified welder

Key Information Requirements Loss Prevention Maintenance  GTs & STs  Inspection regimes  Borescope  Combustion / Major Inspections  Hot Gas Path  Last overhaul report  Use of OEMs / Specialist contractors  Long Term Service Agreements (scope, on-site team, remote monitoring)  Any upgrades / modifications  OEM Technical Advice (TILs, SBs)

Key Information Requirements Loss Prevention Maintenance  Transformers  Insulation oil analysis; DGA frequency / results + Testing lab  Corrosive sulphur analysis  Electrical testing

Key Information Requirements Loss Prevention Maintenance  Preventive Maintenance Routines  Vibration monitoring SCOPE FREQUENCY  Thermographic surveys INTERNAL / EXTERNAL  Lubricating oil analysis REVIEW LAST REPORTS

Key Information Requirements Loss Mitigation Fire Protection & Emergency Response  Organization & Emergency planning  Onsite / Offsite + Mutual Aid assistance  Training program [frequency, KPI]  Fire-Pre plans  Quality of Emergency Response Plan – NFPA 1600  Emergency scenarios considered  Emergency response exercise [frequency, major findings, evacuation time etc.]

Key Information Requirements Loss Mitigation Fire Protection & Emergency Response  Active Protection  Fire water system  Redundancy  Adequacy of fire water supply  Fire pump capacity / reliability / certified / Testing  Detection system  Adequacy of fire / smoke / gas detection & alarm system  Testing & maintenance  Fixed fire protection system  In accordance with NFPA 850

Fixed Fire Detection & Protection Systems

Key Information Requirements Risk Improvement Recommendations  Identify issue  Recommendation [standards / best practices]  Outstanding recommendations - status  Client response  Status flag [No action / Completed / In-progress / Withdrawn]