Strategic Plan: Asset Management Electric Utility I nfrastructure - PowerPoint PPT Presentation

Strategic Plan: Asset Management Electric Utility I nfrastructure Planning July 21, 2010 Presentation to City Light Review Panel 1

Proposed Long-Term Strategic Priorities 1. Infrastructure Maintenance and Renewal Maintain Reliability • Provide Services Desired by Customers • 2. Environmentally Responsible Operations • Green Portfolio Management • Environmental Stewardship 3. High Performance Organization & Workforce 2

Utility Infrastructure and Assets Utility Infrastructure and Assets $ 60 M $ 1.7 B $630 M Priceless $ 1.7 B 53,720 Transformers 7 dams 660 Circuit Miles of ~ 400,000 • 1231 Network Transmission 7 Generation customer meters transformers •22 miles UG Stations • 52,500 Distribution 71,500 in 1200 Steel Lattice Transformers 26 Suburban Cities Transmission Towers 167 Electric Feeders powerhouse (Shoreline, Lake 700 Transmission 108,000 Poles transformers Forest Park, Poles 84,000 Street Lights Tukwila, Burien) 2400 miles of 15 major substations and Distribution Line unincorporated • 500 mi UG King County • 160 mi UG Network

Seattle – 1900’s

Seattle 1962 from Space Needle

Seattle Today

SCL Service Territory Population and Electric Peak 800 2500 700 2000 Population, 1000’s 600 MW Peak 500 1500 400 1967 1000 300 Boundary 1929 Dam Diablo 200 1940 Dam 1924 500 Ross Gorge Dam 100 Dam 0 0 1900 '10 '20 '30 '40 '50 '60 '70 '80 '90 2000 Pop'n MW Peak 7

Asset Failure for an Asset Class Decreasing Stable Failure Increasing Failure Rate Rate Failure Rate Failure Rate Observed Failure Rate Wear out Early “Infant Failures Mortality” Failures Constant (Random) Failures Time 8

Asset Replacement Alternatives Option#1: Run to Failure Status Quo – highest risk; highest cost • Current methodology for most distribution assets • Can lead to significant failure events and claims, Including environmental spills Option #2: Age-Based Replacement Replace on Proactive Schedule – lower risk – higher cost • Typically replaced shortly after economic life or using other rule of thumb Option #3: Asset Management Optimizes cost and risk – • Use asset condition to inform asset decisions • Likely will use all three options for specific equipment types 9

“Run to Failure” is Costly • At least 3 times more costly than Asset Management Practices Cost of pole replacement after failure: • 12+ hours outage – lost revenue opportunity • Service disruption – customer dissatisfaction • Overtime restoration • Potential public safety issues before on-site • Potential for environmental impact • Crews not available for planned work Cost of planned pole replacement • 4 hours straight time for crew • Pre-arranged and scheduled • Less costly 10

Strategy – Infrastructure Improvement Options Proposed Impact of Delay Tomorrow Today Tomorrow Today Result: More Predicable Rates Result: Increased Rates Increased Reliability Decreased Reliability 11

Strategic Plan: Infrastructure Maintenance and Replacement Programs T&D Assets Program Description A B C (current (Proposed) (Slower funding) pace) Distribution – Pole Replacement (88,000 600 poles 2000 poles 1500 poles Wood Poles wood distribution poles) Distribution – Cable Injection & 30 Mi Inject 30 Mi Inject Degradation of reliability 5 mi 8.5 mi UG Cable Replacement (500 Mi UG) for customers Replacement Replacement Distribution – Network Vault Rebuild 7 rebuilt annually 20 /yr 15 /yr Network (2400 Street Enclosures) Transmission Inspect and evaluate One yr Pilot 1140 towers 1140 towers over 2 years over 5 years 60 Towers Steel Towers necessary corrective action (1200 steel lattice towers) Transmission – Transmission Assessment & Vegetation Full Full patrol Inspection Inspection Line Maintenance (650 Miles) over 2 years over 5 years 12

Strategic Plan: Infrastructure Maintenance and Replacement Programs Assets Program Description A B C (Existing (Proposed) (Slower budget) pace) T&D Substation Substation Transformer 1 per yr 2 per yr N/A (2013-14) Replacement (67 Transformers) Generation Major and Minor Rescheduled Restore maintenance previous Maintenance plans funding Generation Unit Automation Rescheduled Restore projects previous funding Generation Unit Upgrades & Rescheduled Restore projects previous Rehabilitation Strategy funding 13

14 Q & A