Industry Input on How to Improve Asset Performance By DNV GL's Larry Dickerman

1. DNV GL © 2014 SAFER, SMARTER, GREENERDNV GL © 2014
Asset Management Before and After the
Equipment Purchase
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Industry Input on How to Improve Asset Performance
Larry Dickerman September 2015

2. DNV GL © 2014
Agenda
 Discussion of the Asset Management Before the Purchase - Testing
Landscape
− KEMA Laboratories
− Testing capabilities
− Failure rates
− Testing versus certification
− Discussion of utility needs
 Discussion of the Future of Asset Management – New Challenges
− Traditional Asset Management best practices (e.g., Asset Management in
Smart Grid)
− Growing Issues with variability of renewable resources (e.g., Smart Grid in
Asset Management)
− Discussion of utility needs
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3. DNV GL © 2014 SAFER, SMARTER, GREENERDNV GL © 2013
Asset Management Before the Purchase
– Testing Landscape
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4. DNV GL © 2014
KEMA Laboratories
 Independent
 Have enough power and voltage to test
everything
 Covers high-power and high-voltage:
- switchgear
- transformers
- metering and protection
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NetherlandsCzech RepublicPennsylvania
 Certificates recognized and accepted world
wide
 80 years in business
 $100 M current expansion

5. DNV GL © 2014
KEMA Laboratories at Chalfont, PA
 KEMA is a major force in testing electric utility equipment in the United States for
every major equipment supplier.
 Our KEMA Laboratories perform $60 million in tests annually, including:
– Arresters
– Bus duct/bus bar
– Cable & Accessories
– Breakers
– DC equipment
– Fuses
– Insulators
– Substation automation
– Switches and switchgear
– Transformers
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6. DNV GL © 2014
Scope of Testing
Testing methods
 Laboratory testing
 Onsite testing
 Witness testing
 Remote testing
Documents
 Type test certificates
 Test reports
 Calibration certificates
 Inspection reports
 Investigation reports
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Tests
 KEMA type test certificate
 KEMA report of performance
 KEMA test report
 Power electronics tests
 Calibration of systems
 Diagnostics
 Low voltage AC testing
 Thermal testing continuous current
 Low voltage DC testing
 Capacitor switching
 High Voltage testing

7. DNV GL © 2014
Reasons for Testing
KEMA Test Report
 Performed at
independent lab
according to user’s
specifications
 Ordered by equipment
user
 Verify a specific product
meets user-defined
requirements
 Must be read carefully
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Type tests Certificate
 Verify that an example
product meets the
requirements of a
specific standard
 Ordered by manufacturer
 Performed at independent
lab according to IEEE and
ANSI standards
 Certified by testing
laboratory
 Complete peace of mind
KEMA Report of
Performance
 Verify that an example
product meets a subset
of the requirements of a
specific standard
 Ordered by
manufacturer
 Performed at
independent lab
according to a subset of
IEEE and ANSI
standards

8. DNV GL © 2014
Reasons for Testing - Increased HSE focus
 Fault arc management, internal arc detection and handling
 Reducing fire risks
 Low magnetic field equipment design
 Controlling sound levels, RI and EM emissions
 Biodegradable transformer oil
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9. DNV GL © 2014
Results - Around 25% of test-objects initially fail tests
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Broken
bushing
Oil spill with fire
Line trap
oil spill
Disconnector
Trafo
winding

10. DNV GL © 2014
Results - Around 25% of test-objects initially fail tests
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Switchgear panel Distribution
transformer
Oil spill

11. DNV GL © 2014
Transformer Testing Statistics By Rating
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Higher rated transformers have higher failure rates
0
10
20
30
40
50
60
25-50 50-100 100-200 >200
numberoftransformers
MVA (rated)
initially not OK initially OK
0
10
20
30
40
50
60
20-100 100-200 200-300 300-400 >400
numberoftransformers
kV (rated)
initially not OK initially OK

12. DNV GL © 2014
KEMA Power Transformer Test Statistics By Year
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0
10
20
30
40
50
60
0
5
10
15
20
25
30
35
40
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
failureratetopassshort-circuittest[%]
totalnumberoftestedtransformers
total
failure rate %

13. DNV GL © 2014
Cables – Type Testing
Failure rates per voltage class
 HV: 22%
 MV: 22%
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Our experience
between 1993 and 2013
550 components over 20
years
Source: DNV GL

14. DNV GL © 2014
DNV GL HV cable / accessories test statistics by component
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Failure rate 1993 - 2008
0
10
20
30
40
50
cable termination straight joint crossbonding joint transition joint
Faulireratetopasstest(%)

15. DNV GL © 201415
In Service Equipment and Material Failures Continue to Be An Issue
Did you know?
In the United States,
approximately 25% of
outages are due to
equipment and material
failures.

16. DNV GL © 2014
In Service Equipment and Material Failures Continue to Be An Issue
 Europe requires certification of equipment that guarantees a minimum quality
level and a level playing field which facilitate purchase decisions.
 Suppliers certainly use the testing done at Chalfont to understand possible defect
however it is entirely at their discretion.
 Present third party testing only covers a portion of the standard in most cases as
opposed to the entire standard
 Present third party investigation of material and equipment failures is the
exception rather than the rule.
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17. DNV GL © 2014
Discussion - How Can KEMA Test Labs Further Help Utilities?
 ARC Flash testing and risk assessment?
 Testing of smart grid equipment?
 Remaining life assessments?
 Testing variability of solar on power systems and mitigation
techniques/equipment?
 Failure investigation?
 Audit of utility internal repair shops or certification?
 Testing material and equipment beyond manufacturer’s acceptance testing (ANSI,
IEEE, etc.) to look at endurance (how long it will last)?
 Helping to develop better targeted maintenance programs based on our testing
experience of the same equipment?
 Others?
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18. DNV GL © 2014 SAFER, SMARTER, GREENERDNV GL © 2013
Asset Management After the Purchase –
New Challenges
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19. DNV GL © 2014
From Asset Management to Asset Optimization

20. DNV GL © 2014
Traditional Asset Management Best Practices – The Present
Situation
Transmission and Stations
 Well established approaches and disciplines due in part to NERC compliance
 Risk & Condition based asset management
 Assessment tools
 Benefit versus cost analysis
 Optimized spending plan that is defensible to CFO and utility commissions
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21. DNV GL © 2014
Traditional Asset Management Best Practices – The Present
Situation
Distribution
 Tends towards accepted programs that are prioritized locally but funded centrally
 Improving asset base for many utilities but lack of clarity about how to use it
 Emerging tendency to view each feeder as a complete asset with risks and health
considerations – a more sophisticated and defensible approach to worst
performing feeders
 Struggles to prioritize new technology versus asset health spending
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22. DNV GL © 2014
Including Smart Grid in Asset Management Business Case
 Asset management principals applied to Smart Grid
– Across replacement, system expansion, technology projects
– Disciplined approach that avoids generalizations and builds cost and benefits
from specific assets and circuits/lines
– Agreed metrics
 More regulatory scrutiny
– Defensible spending plan
– Environmental emphasis
– How to transition to grid of future (e.g. accommodate distributed generation)
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23. DNV GL © 2014
Including Smart Grid in Asset Management – Optimal Spend
 Asset management principals applied to Smart Grid
 An approach that
– navigates the changing environments impacting the electrical system
– optimizes spend by applying proven, new and emerging options to meet system
and equipment performance objectives.
Technology Investment Planning
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10/6/2015

24. DNV GL © 2014
Including Smart Grid in Asset Management - Optimal Spend
 Replacements, refurbishment or new technology implementations should be
prioritized to achieve corporate goals (reliability, safety, financial performance,
etc.)
 Prioritized list of spending across and within projects.
 Understand the relationship between dollar spend and benefit.
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25. DNV GL © 2014
Growing Issues with Variability of Renewable Resources/DER
Renewables are becoming game changers
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Decentralised
renewable
power
generation
sources are
changing the
utility model
Renewable
technology has
relied on
government
incentives and
policy
mechanisms to
date, but the
price curves
are coming
down
Lower Production Cost + Increased Efficiency = Growing Market

26. DNV GL © 2014
Growing Issues with Variability of Renewable Resources/DER
Renewables are becoming game changers
Implications
 Different operational approaches and equipment to handle variability
 Different asset life both positive and negative due to solar energy concentration
increasing
 Distribution planning will require dynamic models instead of steady state
 Independent laboratory testing will likely be required to determine the impact on
traditional assets and new assets developed for mitigation to find what models
miss
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27. DNV GL © 2014
Including Smart Grid in Asset Management
 Using historical near real time information from AMI, SCADA, Distribution
Automation, etc. to create a planning sandbox for consideration of new
technology investments and capacity additions.
 Using information from AMI, SCADA, Distribution Automation, etc. in rapid load
flow models to identify operational issues and opportunities to optimize
dynamically
– Reduce system losses through VAR control
– Reduce system losses through dynamic circuit reconfiguration
– Reduce demand through voltage control
– Implement short term system oriented 30 second demand response to deal
with variability of distributed resources
– Self healing
– Use near real time information to identify asset management needs and
reprioritize spending
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28. DNV GL © 2014
Discussion - How Can DNV GL (KEMA) Help Utilities?
 Traditional Asset Management?
 Including asset management perspectives in Smart Grid business case?
 Distribution planning with increasing levels of distributed resources such as solar?
 Using Smart Grid data for asset management?
 Asset database or asset management IT platform?
 Independent certification of equipment performance to industry standards (IEEE,
IEC, ANSI)
 Others?
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29. DNV GL © 2014
SAFER, SMARTER, GREENER
www.dnvgl.com
Asset Management Before and After the
Equipment Purchase
29
Larry Dickerman
Larry.dickerman@dnvgl.com
919-931-9068