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SRP Final Report:

High Level Benchmarking and


Maintenance Practices Review

July 2, 2012
Nav igant Reference: 157082

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

DI S P UT E S & I NV E S T I G AT I O NS E CO NO M I CS F I NANCI AL ADV I S O RY M ANAG E M E NT CO NS ULT I NG

Disclaimer

Content of Report
This presentation was prepared by Navigant Consulting, Inc. exclusively for the benefit and internal use
of Salt River Project (SRP) and/or its affiliates or subsidiaries. No part of it may be circulated, quoted, or
reproduced for distribution outside these organization(s) without prior written approval from Navigant
Consulting, Inc. The work presented in this report represents our best efforts and judgments based on the
information available at the time this report was prepared. Navigant Consulting, Inc. is not responsible
for the readers use of, or reliance upon, the report, nor any decisions based on the report.
NAVIGANT CONSULTING, INC. MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESSED
OR IMPLIED.
Readers of the report are advised that they assume all liabilities incurred by them, or third parties, as a
result of their reliance on the report, or the data, information, findings and opinions contained in the
report.

July 2012

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Confidential and proprietary . SRP use only .

1
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List of Acronyms

Acronym
BOP
CGS
CI
CMMS
CT
EAF
EBH
EFOR
EPRI
ES
FD
FFH
FS
GKS
GT
HGP
HRSG
MI

Description

Acronym

Balance of Plant
Coronado Generating Station
Combustor Inspection
Computerized Maintenance Management System
Combustion Turbine
Equivalent Availability Factor
Equivalent Based Hours
Equivalent Forced Outage Rate
Electric Power Research Institute
Total Equivalent Starts
Forced Draft
Factor Fired Hours
Factored Starts
Generation Knowledge Service
Gas Turbine
Hot Gas Path
Heat Recovery Steam Generator
Major Inspection

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MWh
NCF
NDE
NFOM
NGS
O&M
OEM
PdM
PM
POF
PRB
QA
RCA
RCM
RTF
SRP
TPC

Description
Megawatt hour
Net Capacity Factor
Non-Destructive Examination
Non-Fuel Operations and Maintenance
Navajo Generating Station
Operations and Maintenance
Original Equipment Manufacturer
Predictive Maintenance
Preventive Maintenance
Planned Outage Factor
Powder River Basin
Quality Assurance
Root Cause Analysis
Reliability Centered Maintenance
Run To Failure
Salt River Project
Total Production Cost

2
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REDACTED SRP PROPRIETARY INFORMATION

Table of Contents
Executive Summary
Project Background
Maintenance Management Practices
Cost and Performance Benchmarks
Summary of Findings and Conclusions
Recommendations

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Executive Summary SRP Overview


SRP Baseload plants operate at high levels of Availability and Reliability. SRPs
load following facilities perform to optimize the value of these assets in terms
of starting reliability, parts life, and cost containment. These are primarily
attributable to conforming to many of the best practices of the electric utility
industry as well as the original equipment manufacturers recommendations
for operations and maintenance techniques.
Based on SRPs reliability obligations, which requires a reduced level of risk
tolerance, the total production costs and operations and maintenance costs of
most SRP Generation facilities are notably good and as expected; however, a
couple of extraordinary events over the last ten years have driven costs higher
than would have been anticipated.
The Salt River Project Agricultural Improvement and Power District division
of SRP is a political subdivision of the state of Arizona which provides
electricity to nearly 934,000 retail customers in the Phoenix area.

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Executive Summary SRP Overview


SRP has an obligation to serve, similar to some other types of power
companies, but different from other types of power producers such as
merchant generators.
Power companies like SRP that have an obligation to serve typically operate
with a different set of objectives than those without the obligation to serve,
including:
More conservative approaches to operations and maintenance.
Units designed with more equipment redundancy to enhance reliability.
More risk adverse.

The differences in objectives between the various types of power producers


represented in this report could be a factor which impacts some of the
benchmark metrics being evaluated.

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EN ER GY

Executive Summary SRP Overview


Navigant Consulting was asked to perform an independent high level review of
maintenance practices and a high level review of the cost and performance for the
units listed in the project background section. A high level summary of our
findings follow.
Overall the SRP fleet is operated and maintained within industry standards
and norms which have resulted in good levels of reliability. No fatal flaws in
their operating and/or maintenance efforts were uncovered in our high level
review. The company has, however, faced technical issues in regards to
specific gas fired units. These technical issues have been or are in the process
of being resolved.
SRP has invested in some leading edge performance monitoring and
predictive maintenance processes, including the Performance Diagnostic
Center, fleetwide SmartSignal and EtaPro monitoring.
It is noted that the coal units, which account for 30% of SRPs generating
capacity and 66% of their MWh production, have top quartile levels of
availability and 2nd quartile levels of NFOM and total production cost.
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Executive Summary SRP Overview


For the gas steam, combined cycle and combustion turbine units their
availability levels are in the 2nd quartile range but they do have challenges in
the cost area with all units having 4th quartile levels of total production costs.
To better understand these higher levels of cost will require additional
analysis. However, as noted earlier, our experience has shown these higher
levels of costs are typically driven by several factors including a companys
tolerance for risk, response to specific market conditions/requirements, specific
component failures and their overall maintenance philosophy.

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Executive Summary SRP Capacity, Generation and Cost


Distribution *
SRP Capacity by Technology

SRP Electrical Production by Technology


1%

9%
10%

<1%

30%
33%

Coal
Combined Cycle
Gas Steam
Combustion Turbine

66%

51%

Coal and Combined Cycle units make up


81% of the reviewed MW capacity, 99% of
generation and 89% of NFOM cost.
Gas steam and combustion turbine units,
while fulfilling an important role in
meeting SRP s obligation to serve, make
up only 19% of the reviewed MW capacity,
1% of generation and 11% of NFOM cost.

SRP NFOM Cost by Technology


9%

2%

49%

40%

* Percentages are representative of the SRP plants (including SRPs 21.7% ownership share of Navajo
Generating Station) reviewed in this report only and not inclusive of SRPs total generation capability.
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Executive Summary Coal Units


Technology

Equivalent
Availability
Factor

Equivalent
Forced
Outage Rate

Net Capacity
Factor

Total
Production
Cost

Non-Fuel
O&M Cost

Coal

Coal plants are operating at a very high level of Availability and Reliability
with below median NFOM cost.
Trends in Availability, Reliability and NFOM cost are consistent with or better
than peers.
Achieving elite status (top quartile in both availability and NFOM cost)
would require reductions in NFOM cost without compromising current
availability and reliability performance.
Plant maintenance practices are above average and conform to both OEM and
industry standard guidelines.

Legend:

Top quartile

Second quartile

Third quartile

Fourth quartile

Note: Quartile rankings reflect the capacity weighted performance of all units in the group.
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EN ER GY

Executive Summary Combined Cycle Units


Technology

Equivalent
Availability
Factor

Equivalent
Forced
Outage Rate

Net Capacity
Factor

Total
Production
Cost

Non-Fuel
O&M Cost

Combined Cycle

Combined cycle cost and performance varies across the units.


Starting Reliability is excellent for all units.
STAG technology NFOM cost is very competitive; F class NFOM cost tends to
be high, driven by maintenance, most likely associated with a large number of
start/stop cycles and technical issues.
Availability and reliability is generally good, with the exception of Desert
Basin, which is fourth quartile in both measures.
Plant maintenance practices conform to both OEM and industry standard
guidelines.

Legend:

Top quartile

Second quartile

Third quartile

Fourth quartile

Note: Quartile rankings reflect the capacity weighted performance of all units in the group.
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EN ER GY

Executive Summary Gas Steam Units


Technology

Equivalent
Availability
Factor

Equivalent
Forced
Outage
Rate

Net Capacity
Factor

Starting
Reliability

Total
Production
Cost

Non-Fuel
O&M Cost

Gas Steam

The gas steam units operate at varied levels of performance.


High NFOM cost is largely driven by high maintenance cost. The Agua Fria
plant has adjusted manpower levels and the NFOM cost trend has improved
over the last three years compared to the peer group median.
High Planned Outage Factor (POF) is due to the plants maintenance
philosophy which takes advantage of long off-peak periods and is consistent
with industry standard practice for similar operating regimes.
While Agua Fria 1 and Agua Fria 3 have outstanding reliability performance
for the ten year evaluation period, Agua Fria 2 has experienced high
unreliability in 2002, 2007, 2010 and 2011.
Plant maintenance practices conform to both OEM and industry standard
guidelines.
Legend:

Top quartile

Second quartile

Third quartile

Fourth quartile

Note: Quartile rankings reflect the capacity weighted performance of all units in the group.
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EN ER GY

Executive Summary Combustion Turbine Units


Technology

Equivalent
Availability
Factor

Equivalent
Forced
Outage
Rate

Net Capacity
Factor

Starting
Reliability

Total
Production
Cost

Non-Fuel
O&M Cost

CT

The combustion turbines generally do not perform as good as peer units.


High NFOM cost is largely driven by high maintenance cost combined with
third quartile operations cost. For Agua Fria, this trend will likely not continue
because the plant has adjusted manpower levels and the NFOM cost trend has
improved over the last three years compared to the peer group median.
High maintenance cost was partly attributed to major overhauls associated
with many years of accumulated wear from periodic inspections.
Availability is slightly below peers, but generally within acceptable levels.
Outage performance (planned, unplanned and forced) is at varied levels of
performance, frequently driven by large events.
Plant maintenance practices conform to both OEM and industry standard
guidelines.
Legend:

Top quartile

Second quartile

Third quartile

Fourth quartile

Note: Quartile rankings reflect the capacity weighted performance of all units in the group.
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EN ER GY

Table of Contents
Executive Summary
Project Background
Maintenance Management Practices
Cost and Performance Benchmarks
Summary of Findings and Conclusions
Recommendations

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EN ER GY

Project Background
SRP engaged Navigant in April 2012 to benchmark and review major outage
maintenance practices for six fossil generation sites:

Coronado (coal)
Navajo (coal)
Agua Fria (gas)
Desert Basin (gas)
Kyrene (gas)
Santan (gas)

Navigant conducted interviews at each site to evaluate major outage


maintenance practices*. Navigant assessed these practices in relation to
generally accepted industry best practices in North America.
Navigant developed high level benchmarks of cost and performance at each
unit for either a six or ten year period, consisting of:
Non-fuel O&M costs ($/MWh or $/kw-year as appropriate), further broken down into
operations and maintenance costs, and
Key performance measures (EAF, EFOR, NCF, starting reliability, etc.).
* Except Kyrene because management is shared between Kyrene and Santan
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Project Background
Scatter and trend charts were developed for the cost and performance
measures.
Scatter charts display two parameters on a single chart for comparison purposes, with
peer group median, top quartile and top decile lines for each variable.
Trend charts display a single variable plotted with annual data over the specific
evaluation period ( 10 years or 6 years), showing either group average or individual
SRP unit data along with peer group median and top quartile values.
o Individual unit trend plots often exhibit significant variability from year to year compared to

the median and top quartile trend lines which tend to be smoothed due to the larger number
of peer units being evaluated.
o This high year to year variability occurs most often when plotting NFOM cost due to the large
impact of major outages during a given year.

Relevant charts were selected for each peer group and included in the Cost and
Performance section of the report.

Notes:
1. All trend charts shown in the Cost and Performance section of the report show SRP unit data as an average
of the SRP units in the particular peer group.
2. A full set of both average and individual unit trend charts is included in the supplemental reference report.
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Project Approach
Navigants project approach included four steps.
1: Kickoff Project

Kickoff
meeting

Verify cost and


performance
information
Develop peer
group
requirements
Conduct site
interviews

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3: Extract Peer
Data

2: Collect Data

Work with SRP


on cost and
performance
data collection

Verify data is
comparable to
GKS database

4: Prepare Draft and


Final Report

Finalize peer
group criteria

Finalize data
analysis

Extract peer
group data
from GKS
database

Prepare draft
report
SRP reviews
draft report
Implement
SRP comments
into final
report

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Project Approach Cost and Performance Data


All Non-Fuel Operations and Maintenance (NFOM) costs include both expense
and replacement capital costs.
Inclusion of replacement capital costs assures an equitable comparison of NFOM
costs given the diversity of capitalization policies that exist between companies.

Cost and performance data for peer units is from Navigants Generation
Knowledge Service (GKS) data base
All data is validated through a rigorous QA process.

Cost and performance data for SRP units is supplied by SRP in accordance with
Navigants GKS data input guidelines.

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EN ER GY

Table of Contents
Executive Summary
Project Background
Maintenance Management Practices
Cost and Performance Benchmarks
Summary of Findings and Conclusions
Recommendations

2012 Nav igant Consulting, Inc.


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Maintenance Management Practices


Navigants assessment of maintenance management practices is divided into
the following categories:
Maintenance program
o General program definitions
o Awareness of the program
o Identification of high priority problems

Maintenance planning process


o Long range outage plans
o Detailed outage planning

Outage management
o Planning practices
o Outage record management

Work management process


o Implementation and use of CMMS
o Efficient scheduling of work

Conduct of maintenance
o Periodic preventive maintenance
o Condition based / predictive maintenance
o Corrective Maintenance

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Table of Contents
Maintenance Management Practices

Coronado (coal)
Navajo (coal)
Agua Fria (gas)

Desert Basin (gas)


Santan and Kyrene (gas)
Review of Historical Gas Turbine Outage Intervals

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Coronado Plant Overview


Coronado Generating Station is located near St. Johns, AZ, owned 100% by
SRP.
Units 1-2: Two coal fired steam generation units, first fire between 1979 and
1980.
Total station generating capacity is approximately 785 MW.
Coronado provides base load and load following power and burns Powder
River Basin (PRB) coal from Wyoming.

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Coronado Maintenance Program Observations


#

Maintenance Program Best Practice

Plant maintenance is based on criticality of plant


equipment and contribution to business objectives

A list of critical equipment and Run-to-Failure (RTF)


equipment was identified as an outcome of a Reliability
Centered Maintenance (RCM) type analysis.

Corrective and preventive maintenance are


properly balanced

Plant estimates approximate ratio of PM to CM at 60/40. This


is within typical industry range.

Value of unit improvements is communicated


across plant personnel

Plant personnel have a good understanding of the importance


and value of reliability improvements.

Improvement opportunities are openly shared


with other SRP plants

Discussions with other plants occur, but process appears to


lack the structure seen at some other best performing
companies.

Consistent methodology is in place to analyze and


record equipment history

Equipment history is recorded in MAXIMO.

Formal root cause analysis is systematically


performed on high impact events

RCA process (REASON) has been in place for about 6 years.

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Observations at Coronado

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Coronado Maintenance Planning Observations


#

Maintenance Planning Best Practice

Long-range outage and major maintenance plan


exists and is reviewed periodically

A 10-year outage planning schedule is used.

Durations between outages are consistent with the


business drivers and risks are appropriately
managed

Both units are on a 3 year major outage cycle (nominal 3 week


duration) and a 1 week spring tune up outage in non-major
years.
Outage intervals are well within OEM and industry standard
guidelines.

Outage planning process allows adequate


planning for projects requiring material with long
lead times

Outage planning begins at the conclusion of the previous


outage, allowing sufficient time for long lead time items.

Advanced planning is established for scheduled


and unscheduled outages

Primavera is used to generate a pre-outage milestone chart.


Plant also uses a stoplight approach to conduct four
readiness assessment meetings prior to the outage.
Outage scope is frozen 4-5 months prior to breaker open.

Outage and maintenance work scopes are clearly


defined and planned

One planner is dedicated to full time outage planning.


Outage work scopes are built within the MAXIMO
maintenance management system.

Maintenance history records and utility industry


experience are appropriately considered in
planning for maintenance

Plant uses outage lessons learned, MAXIMO work history,


OEM bulletins and attends industry forums to effectively plan
their overhaul maintenance.

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Observations at Coronado

24
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Coronado Outage Management Observations


#

Outage Management Best Practice

Observations at Coronado

Overall outage planning maximizes plant run


time and minimizes forced, scheduled and
maintenance outages

The combination of the 3 year outage cycle and the 3 week


outage durations has contributed to CGS achieving top
quartile industry performance in EAF during the ten year
2002 2011 evaluation year period.

Outages are effectively planned with well-defined


authorization, organization, work scope,
schedules and resources

Outage manager is assigned along with an outage


organization.
All required resources are loaded into the Primavera
schedule, including contractors being integrated into the work
schedule.

Outage scope list contains all planned tasks with


assigned work groups and resource estimates for
completing the work

Detailed job plans with assigned responsibility and resource


requirements are used.
Base overhaul activities are built into the MAXIMO work
management system.
80,000-110,000 man-hours is a typical overhaul resource
loading.

Outage inspection results are evaluated and


approved work scope changes are implemented
into the outage

The outage manager must approve all scope changes.


CGS utilizes a Change Management Tracking Form to
facilitate this process (CGS specific).

Work schedules and completion status are


reviewed on a regular basis

Daily outage meetings are conducted in the morning


(coordination) and afternoon (controls team).
Budget is updated daily during the outage.

Post-outage reviews are conducted, for both


planned and forced outages

Post outage critique meeting held with both SRP staff and
contractors.
CGS does not utilize a post-outage reliability indicator.

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EN ER GY

Coronado Work Management Observations


#

Work Management Best Practice


All work requests are evaluated, planned and
processed using Computerized Maintenance
Management System (CMMS)

MAXIMO is used to document all work requests.

The system is utilized by all plant people


reflecting the overall business strategy

Level of utilization by plant work force is typical for the


industry.
Craft do not enter closing comments directly into MAXIMO.

Work requests are screened and approved by


knowledgeable personnel based on value and
company business goals

Corrective maintenance work order priority is reviewed by


the shift supervisor.
The Gatekeeper concept should be employed, if not
already in existence.
All work orders are tracked in MAXIMO.

Requested and approved work activities are


tracked in the CMMS until the work order is
closed

Scheduling of maintenance uses available


manpower effectively and avoids unnecessary
removal of equipment and systems

Schedule compliance is one of the work management


indicators tracked by the plant.

Maintenance history is periodically and


systematically reviewed and problems trended

Plant tracks major unreliability events.


Unclear if routine corrective maintenance items are
periodically evaluated for trends, possible inclusion in the PM
program, etc.

Identification, selection, and scheduling of work


activities incorporate applicable lessons learned
from operating experience

Operations is directly involved in providing input on


scheduling work.

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Observations at Coronado

26
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Coronado Maintenance Conduct Observations


#

Maintenance Conduct Best Practice

Preventive maintenance is not waived or deferred


for extended periods

PM compliance is one of the work management indicators


tracked with the goal of 100% compliance.

Preventive maintenance documentation is


appropriately maintained and easily accessible to
all people in the plant

PMs are documented in MAXIMO.

Effectiveness of preventive maintenance work is


periodically evaluated and improvements are
made

Any changes to a PM require maintenance manager and


engineering approval.
No formal structure for evaluating the effectiveness of PMs
exists.

Predictive maintenance (PdM) activities are


determined and considered for components that
affect safe and reliable plant operations

PdM program is mature and overseen by the engineering


group.
Smart Signal is being used and positive results have been
achieved (e.g.- Unit 1 FD fan)
SRP has established a Performance Diagnostic Center to
monitor Smart Signal parameters centrally as well as locally.

Condition monitoring techniques (e.g. vibration


analysis, oil analysis) are used to assess
equipment performance

The comprehensiveness of the CGS PdM program is typical


for the industry.

Corrective maintenance includes root cause


analysis, and evaluation of alternatives using the
economic worth of unit improvement

A formal root cause analysis process is used for significant


events (e.g.- safety, reliability, etc.)

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Observations at Coronado

27
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Coronado General Observations


General observations from the plant tour and interviews with plant
management are:
Plant personnel are very knowledgeable and take a lot of pride in the performance of
the CGS station.
Plant cleanliness and material condition was average for a plant of this age and
technology.
Plant has developed a number of good practices that SRP should consider for
replication at other facilities (e.g.- readiness assessment stop light process; change
management tracking form, etc.)
The maintenance management practices observed were above average and conformed
with both OEM and industry standard guidelines.

2012 Nav igant Consulting, Inc.


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28
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Table of Contents
Maintenance Management Practices
Coronado (coal)

Navajo (coal)
Agua Fria (gas)

Desert Basin (gas)


Santan and Kyrene (gas)
Review of Historical Gas Turbine Outage Intervals

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Navajo Plant Overview


Navajo Generating Station is located near Page, AZ and operated by SRP, which
has a 21.7% ownership.
Units 1-3: Three coal fired steam generation units, first fire between 1974 and
1976.
Total station generating capacity is 2,250 MW.
Navajo provides base load power and receives low sulfur bituminous coal from
Peabody Western Coal Company's Kayenta Mine (78 miles to the southeast).

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EN ER GY

Navajo Maintenance Program Observations


#

Maintenance Program Best Practice

Plant maintenance is based on criticality of plant


equipment and contribution to business objectives

A list of critical equipment (priority equipment) was


developed about 5 years ago.

Corrective and preventive maintenance are


properly balanced

The reported PM to CM ratio is 65% PM to 35% CM.


CM includes emergent work which is sponsored work that
breaks the schedule.

Value of unit improvements is communicated


across plant personnel

Plant personnel have a good understanding of the importance


and value of reliability improvements.

Improvement opportunities are openly shared


with other SRP plants

Discussions with other plants occur, but process appears to


lack the structure seen at some other best performing
companies.

Consistent methodology is in place to analyze and


record equipment history

Equipment history is recorded in MAXIMO.

Formal root cause analysis is systematically


performed on high impact events

RCA process (Think Reliability) has been in place for about 3


years.

2012 Nav igant Consulting, Inc.


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Observations at Navajo

31
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Navajo Maintenance Planning Observations


#

Maintenance Planning Best Practice

Long-range outage and major maintenance plan


exists and is reviewed periodically

A long term (> 5 years) outage planning schedule is used.

Durations between outages are consistent with the


business drivers and risks are appropriately
managed

All three units are on an alternating 3 year major / minor


outage cycle (major every 6 years / minor every 6 years)
Outage intervals are well within OEM and industry standard
guidelines.

Outage planning process allows adequate


planning for projects requiring material with long
lead times

Outage planning begins at the conclusion of the previous


outage, allowing sufficient time for long lead time items.
NGS currently has 2 planners / schedulers dedicated to
overhaul scheduling.

Advanced planning is established for scheduled


and unscheduled outages

Primavera is used to generate a pre-outage milestone chart.


Outage scope is frozen 3 months prior to breaker open.
A forced outage process exists which seeks to maximize the
effectiveness of work done during a forced outage.

Outage and maintenance work scopes are clearly


defined and planned

Outage scope is determined by the maintenance and


engineering departments.
Outage work scopes are built within the MAXIMO
maintenance management system.

Maintenance history records and utility industry


experience are appropriately considered in
planning for maintenance

Plant uses outage lessons learned, MAXIMO work history,


OEM bulletins and attends industry forums to effectively plan
their overhaul maintenance.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

Observations at Navajo

32
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Navajo Outage Management Observations


#

Outage Management Best Practice

Overall outage planning maximizes plant run


time and minimizes forced, scheduled and
maintenance outages

The combination of the 3 year alternating major / minor


outage cycle with the 8 week (major) / 4 week (minor) outage
durations has contributed to NGS achieving top quartile
industry performance in EAF during the ten year 2002 2011
evaluation year period.

Outages are effectively planned with well-defined


authorization, organization, work scope,
schedules and resources

Outage manager is assigned along with an outage


organization.
All required resources are loaded into the Primavera
schedule, including contractors.

Outage scope list contains all planned tasks with


assigned work groups and resource estimates for
completing the work

Detailed job plans with assigned responsibility and resource


requirements are used.

Outage inspection results are evaluated and


approved work scope changes are implemented
into the outage

Equipment inspections are scheduled in the first part of the


outage to provide maximum opportunity to react to out of
scope items needing corrective maintenance.
Scope changes between T-3 months to breaker open require
approval of the maintenance manager.

Work schedules and completion status are


reviewed on a regular basis

Daily outage meetings are conducted in the morning and


attended by all affected departments, including contractors.

Post-outage reviews are conducted, for both


planned and forced outages

Post outage critique meeting held with both SRP staff and
contractors.
NGS does not currently utilize a post-outage reliability
indicator (planned for current Fiscal Year) and post-outage
reliability was poor during the last three outages reviewed.

2012 Nav igant Consulting, Inc.


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Observations at Navajo

33
EN ER GY

Navajo Work Management Observations


#

Work Management Best Practice


All work requests are evaluated, planned and
processed using Computerized Maintenance
Management System (CMMS)

MAXIMO is used to document all work requests.

The system is utilized by all plant people


reflecting the overall business strategy

Level of utilization by plant work force is typical for the


industry.

Work requests are screened and approved by


knowledgeable personnel based on value and
company business goals

The Gatekeeper concept, where all work flows through a


single entity to verify priority, has been in place for 4-5 years.
This is a best practice.
Operations (gatekeeper) participates in the weekly schedule
commitment meeting to insure buy-in to the coming weeks
schedule.

Requested and approved work activities are


tracked in the CMMS until the work order is
closed

All work orders are tracked in MAXIMO.

Scheduling of maintenance uses available


manpower effectively and avoids unnecessary
removal of equipment and systems

Plant works off of weekly schedules that are finalized on


Thursday of the previous week.
80% or higher of available manpower is scheduled.

Maintenance history is periodically and


systematically reviewed and problems trended

Plant tracks major unreliability events.


Unclear if routine corrective maintenance items are
periodically evaluated for trends, possible inclusion in the PM
program, etc.

Identification, selection, and scheduling of work


activities incorporate applicable lessons learned
from operating experience

Foreman build the schedule with operations input provided


by the Gatekeeper and Work Management Committee.
Gatekeeper routinely adds and deletes jobs from the schedule.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

Observations at Navajo

34
EN ER GY

Navajo Maintenance Conduct Observations


#

Maintenance Conduct Best Practice

Observations at Navajo

Preventive maintenance is not waived or deferred


for extended periods

PM compliance is > 85%, with a goal of 100%; however all


PMs are ultimately completed even if they were not
completed in the week they were originally scheduled.
In 2011 the plant completed 11,018 PMs and cancelled 352.
The plant estimates that less than 2% of corrective work
orders written are priority 3 (high priority) work orders.
Sponsored (emergent work) is currently running at 18% and
trending down.

Preventive maintenance documentation is


appropriately maintained and easily accessible to
all people in the plant

PMs are documented in MAXIMO.

Effectiveness of preventive maintenance work is


periodically evaluated and improvements are
made

PM optimization was completed 4 years ago using the EPRI


PM basis by a cross departmental team.
No formal structure for evaluating the ongoing effectiveness
of PMs or making changes to a PM exists.

Predictive maintenance (PdM) activities are


determined and considered for components that
affect safe and reliable plant operations

PdM program is mature and overseen by engineering.


SRP has established a Performance Diagnostic Center to
monitor Smart Signal parameters centrally as well as locally.

Condition monitoring techniques (e.g. vibration


analysis, oil analysis) are used to assess
equipment performance

The comprehensiveness of the NGS PdM program is typical


for the industry.

Corrective maintenance includes root cause


analysis, and evaluation of alternatives using the
economic worth of unit improvement

A formal root cause analysis process is used for significant


events (e.g.- safety, reliability, etc.)

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

35
EN ER GY

Navajo General Observations


General observations from the plant tour and interviews with plant
management are:
The material condition of the assets and plant cleanliness was above average for coal
plants of similar size and technology.
The people interviewed were professional, engaged in their work and took great pride
in the accomplishments of the station.
Some areas noted by the interviewees as improvement opportunities were:
o Improve pre-outage process rigor.
o Better reporting of MAXIMO items to update Primavera during the outage.
o Improve the post-outage critique process.
o Provide additional analytical tools to monitor daily work management.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

36
EN ER GY

Table of Contents
Maintenance Management Practices
Coronado (coal)
Navajo (coal)

Agua Fria (gas)

Desert Basin (gas)


Santan and Kyrene (gas)
Review of Historical Gas Turbine Outage Intervals

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

37
EN ER GY

Agua Fria Plant Overview


Agua Fria Generating Station is located in Peoria, AZ, owned 100% by SRP.
Units 1-3: Three steam generation units, first fire between 1958 and 1961.

Units 4-6: Three / Westinghouse W501B gas turbines in simple cycle


configuration, first fire between 1974 and 1975.
Total station generating capacity is approximately 626 MW.
Agua Fria supplements base-load plants and adds power during peak
demands. Agua Fria can produce power within 20-30 minutes.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

38
EN ER GY

Agua Fria Maintenance Program Observations


#

Maintenance Program Best Practice

Observations at Agua Fria

Plant maintenance is based on criticality of plant


equipment and contribution to business objectives

Gas turbines are maintained to OEM recommendations.


Plant is working on definition of critical equipment to support
upcoming Maximo upgrade, to be completed in 2-3 years.

Corrective and preventive maintenance are


properly balanced

Current mix is about 1/3 corrective and 2/3 preventive.


Critical equipment definition will help to perform more
condition based maintenance.

Value of unit improvements is communicated


across plant personnel

Plant personnel buys into the concept that unit value


determines their future and takes pride in maintaining units.

Improvement opportunities are openly shared


with other SRP plants

Corporate Engineering supports plant level improvements


and promotes sharing across SRP.

Consistent methodology is in place to analyze and


record equipment history

Major equipment history is consistently tracked by the plant.

Formal root cause analysis is systematically


performed on high impact events

RCA process is established.


RCA is conducted based on plant management discretion, no
documented criteria when RCA is required.

Communication methods with equipment


vendors to identify problem areas are in place

OEM is consulted for complex problems.


Plant technology is very mature and plant personnel are
knowledgeable about equipment problems.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

39
EN ER GY

Agua Fria Maintenance Planning Observations


#

Maintenance Planning Best Practice

Observations at Agua Fria

Long-range outage and major maintenance plan


exists and is reviewed periodically

Outage plan coincides with six year corporate financial plan.


Plan is further refined about 1.5 years before outage.
Plant will use 3 month off-peak period to bid out work
competitively in the future.

Durations between outages are consistent with the


business drivers and risks are appropriately
managed

Plant schedules outages to optimize plant availability during


peak periods within OEM guidelines for outage intervals.
Equipment is monitored using predictive maintenance.

Outage planning process allows adequate


planning for projects requiring material with long
lead times

Outage scope for long lead time items is defined ahead of


time, in conjunction with 1.5 year outage plan.
A documented process does not exist.

Advanced planning is established for scheduled


and unscheduled outages

Unscheduled outages are reviewed with dispatch and moved


to the least disruptive times.

Outage and maintenance work scopes are clearly


defined and planned

Work scopes are defined in Maximo and scheduling detail is


planned in Primavera.

Maintenance history records are maintained and


accessible

Gas turbine maintenance records are tracked by plant.


Outage reports are taken into consideration for future outage
planning.

Maintenance history records and utility industry


experience are appropriately considered in
planning for maintenance

Plant personnel keep up with the latest service bulletins for


gas turbines and have implemented all applicable bulletins.
Plant participates in gas turbine user group that also covers
BOP.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

40
EN ER GY

Agua Fria Outage Management Observations


#

Outage Management Best Practice

Observations at Agua Fria

Overall outage planning maximizes plant run


time and minimizes forced, scheduled and
maintenance outages

Outage planning ensures that peek periods have high unit


availability, because plant reliability is critical then.
Impact of forced outages is mitigated by utilizing other plant
equipment or using other SRP assets identified by dispatch

Outages are effectively planned with well-defined


authorization, organization, work scope,
schedules and resources

Outage scope is determined jointly between Plant


Management, Planner, Foremen, Maintenance Supervisors,
Engineers and other appropriate functional groups.
Approach is to disassemble unit and bid required work out
competitively.

Outage scope list contains all planned tasks with


assigned work groups and resource estimates for
completing the work

The planned outage scope defines high level tasks until visual
inspection determines actual work scope, because work is bid
out based on actual wear and tear.

Outage inspection results are evaluated and


approved work scope changes are implemented
into the outage

Previous outage reports are used to build a high level


schedule.
For future outages, Maintenance Manager and Supervisors
will approve competitive bids that meet the plants needs.

Work schedules and completion status are


reviewed on a regular basis

Planner and Maintenance Manager keep track of the overall


schedule twice a week formally and daily informally.

Outage records are compiled with inspection


results, deferred work, remedial work plans, and
relevant outage correspondence

Main component outage reports are used and acted upon for
long term planning.

Post-outage reviews are conducted, for both


planned and forced outages

For some forced outages, an RCA is performed.


Post-outage performance indicators are not in place.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

41
EN ER GY

Agua Fria Work Management Observations


#

Work Management Best Practice

All work requests are evaluated, planned and


processed using Computerized Maintenance
Management System (CMMS)

Maximo is currently used; an update to a new Maximo


version is in progress, scheduled for June 2012.
All work is performed through Maximo.

The system is utilized by all plant people


reflecting the overall business strategy

Everybody inside the plant can enter work orders.


Shift Supervisors approve the work orders.
Maintenance Manager can reprioritize work orders.

Work requests are screened and approved by


knowledgeable personnel based on value and
company business goals

Maintenance Manager reviews all work orders for importance


and value.

Requested and approved work activities are


tracked in the CMMS until the work order is
closed

All work orders are maintained in Maximo.


Periodic backlog review is performed.
Work orders older than 1 year are re-prioritized annually.

Scheduling of maintenance uses available


manpower effectively and avoids unnecessary
removal of equipment and systems

Future maintenance events will be bid competitively.


Internal crews will work on auxiliary equipment.
Units are disassembled and only necessary work is
performed.

Maintenance history is periodically and


systematically reviewed and problems trended

All repair reports are maintained and used to plan the long
term maintenance scope.

Identification, selection, and scheduling of work


activities incorporate applicable lessons learned
from operating experience

Operating experience is considered when scheduling


maintenance work and to determine outage scope.
Further input will be critical equipment definitions once
completed in Maximo.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

Observations at Agua Fria

42
EN ER GY

Agua Fria Maintenance Conduct Observations


#

Maintenance Conduct Best Practice

Observations at Agua Fria

Preventive maintenance is not waived or deferred


for extended periods

Preventive maintenance for gas turbines is performed in


accordance with OEM recommendations.
BOP follows gas turbine outage schedule and will transition
to more predictive maintenance approaches over time.

Preventive maintenance documentation is


appropriately maintained and easily accessible to
all people in the plant

All documentation is stored and used for future outage


planning.
Maximo is the system of record.

Effectiveness of preventive maintenance work is


periodically evaluated improvements are made

Preventive maintenance documentation is used to evaluate


future maintenance work scope for BOP.

Predictive maintenance (PdM) activities are


determined and considered for components that
affect safe and reliable plant operations

After critical equipment is determined, plant will be using


more predictive maintenance approaches.
OEM recommendations are followed for gas turbines.

Condition monitoring techniques (e.g. vibration


analysis, oil analysis) are used to assess
equipment performance

Plant uses oil analysis, vibration monitoring on GTs and


larger BOP equipment, thermography, motor current analysis,
and reviews of equipment temperatures.

Corrective maintenance includes root cause


analysis, and evaluation of alternatives using the
economic worth of unit improvement

Root cause analysis is performed as per management


discretion.
No documented requirements for when an RCA must be
initiated.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

43
EN ER GY

Agua Fria General Observations


General observations from the plant tour and interviews with plant
management are:
The plant is in a well maintained state, all areas are clean, no debris is accumulated.
The gas turbines are visually in good condition and have been well maintained.
The turbine compartments and other structural elements show some signs of wear
that is mostly cosmetic (for example peeling paint).
Plant management shows pride in
o Team commitment and the perception that goals are well aligned across teams
o Strong record of plant safety and availability

o Dedication and level of experience in workforce


o Availability of all tools and fixtures to perform high quality repairs in house

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

44
EN ER GY

Table of Contents
Maintenance Management Practices
Coronado (coal)
Navajo (coal)
Agua Fria (gas)

Desert Basin (gas)


Santan and Kyrene (gas)
Review of Historical Gas Turbine Outage Intervals

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

45
EN ER GY

Desert Basin Plant Overview


Desert Basin Generating Station is located in Casa Grande, AZ, owned 100% by
SRP.
Desert Basin consists of two Siemens W501F gas turbines in combined cycle
configuration with one steam turbine shared by the gas turbines, first fire in
2001.
Total station generating capacity is approximately 643 MW.
SRP purchased the plant in October 2003 from Reliant Resources, Inc.
Desert Basin supports SRP's growing resource need. With its proximity to
metropolitan Phoenix, Desert Basin increases SRP's long-term reliability. SRP is
planning to install a grid tie into SRPs transmission system. So far, the unit has
used third party transmission lines for a fee.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

46
EN ER GY

Desert Basin Maintenance Program Observations


#

Maintenance Program Best Practice

Observations at Desert Basin

Plant maintenance is based on criticality of plant


equipment and contribution to business objectives

Gas turbines are maintained to OEM recommendations.


Critical BOP items are closely monitored and maintained with
the gas turbines or while the plant is not dispatched.

Corrective and preventive maintenance are


properly balanced

Current mix is about 25% corrective and 75% preventive.


Plant uses several methods of predictive maintenance to
optimize outages for BOP equipment.

Value of unit improvements is communicated


across plant personnel

Plant personnel buys into concept that unit value determines


their future and takes pride in maintaining units.

Improvement opportunities are openly shared


with other SRP plants

Plants have a good working relationship and share workforce


if crews are available.
Technology sharing is limited because the gas turbine
technology at the plant is unique.

Consistent methodology is in place to analyze and


record equipment history

Major equipment history is consistently tracked using


condition monitoring approaches.

Formal root cause analysis is systematically


performed on high impact events

RCA process is established using REASON software, results


are shared with SRP corporate departments.
RCA is triggered for any events with a cost impact greater
$100k and for recurring problems.

Communication methods with equipment


vendors to identify problem areas are in place

Plant seeks OEM support to mitigate problems.


OEM customer service is not always as desired by the plant.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

47
EN ER GY

Desert Basin Maintenance Planning Observations


#

Maintenance Planning Best Practice

Observations at Desert Basin

Long-range outage and major maintenance plan


exists and is reviewed periodically

Ten year outage plan maintained that synchs with six year
corporate financial plan.
Purchase Orders are placed around 2 years in advance.
Outage scope is frozen around 6 months before the outage.

Durations between outages are consistent with the


business drivers and risks are appropriately
managed

Plant schedules outages to optimize plant availability during


peak periods.
Equipment is monitored using predictive maintenance.

Outage planning process allows adequate


planning for projects requiring material with long
lead times

Outage scope for long lead time items is defined ahead of


time, in conjunction with the long term outage plan.
A documented process does not exist.

Advanced planning is established for scheduled


and unscheduled outages

Unscheduled outages are reviewed with dispatch and moved


to the most economical time possible.

Outage and maintenance work scopes are clearly


defined and planned

Work scopes are defined in Maximo.

Maintenance history records are maintained and


accessible

Outage reports are taken into consideration for future outage


planning.

Maintenance history records and utility industry


experience are appropriately considered in
planning for maintenance

Plant personnel keep up with latest service bulletins for gas


turbines and have implemented all applicable bulletins.
Plant upgraded turbine controls to increase starting reliability.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

48
EN ER GY

Desert Basin Outage Management Observations


#

Outage Management Best Practice

Overall outage planning maximizes plant run


time and minimizes forced, scheduled and
maintenance outages

Outage planning goal is to maximize peek period availability.


Impact of forced outages is mitigated by utilizing other plant
equipment or using other SRP assets identified by dispatch.

Outages are effectively planned with well-defined


authorization, organization, work scope,
schedules and resources

Outage scope is determined by all members of the plant


management team.
Day to day outage work is managed by O&M Manager and
Maintenance Supervisor.

Outage scope list contains all planned tasks with


assigned work groups and resource estimates for
completing the work

Plant performs outage work with a mix of internal crew and


external, competitive bids for major work.

Outage inspection results are evaluated and


approved work scope changes are implemented
into the outage

Previous outage reports are used to build a high level


schedule.
Emergent work scope during the outage is evaluated and
implemented if deemed necessary by plant management.

Work schedules and completion status are


reviewed on a regular basis

Planner (same person as Maintenance Supervisor) conducts


daily meetings during outage.
Meeting includes contractor representatives.

Outage records are compiled with inspection


results, deferred work, remedial work plans, and
relevant outage correspondence

Main component outage reports are used and acted upon for
long term planning.

Post-outage reviews are conducted, for both


planned and forced outages

RCA is performed for outages above the RCA threshold.


Post-outage performance indicators are not in place.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

Observations at Desert Basin

49
EN ER GY

Desert Basin Work Management Observations


#

Work Management Best Practice

All work requests are evaluated, planned and


processed using Computerized Maintenance
Management System (CMMS)

Maximo is currently used; an update to a new Maximo


version is in progress, scheduled for June 2012.
All work is performed through Maximo.

The system is utilized by all plant people


reflecting the overall business strategy

Work requests are screened and approved by


knowledgeable personnel based on value and
company business goals

O&M Manager reviews all work orders for importance and


value.

Requested and approved work activities are


tracked in the CMMS until the work order is
closed

All work orders are maintained in Maximo.


Periodic backlog review is performed.
Oldest work orders are about 2.5 years old.

Scheduling of maintenance uses available


manpower effectively and avoids unnecessary
removal of equipment and systems

Maintenance events are performed using a combination of


internal crews and contractors.
Internal manpower of 7 maintenance staff not sufficient for
larger outages, for which contractors are used.

Maintenance history is periodically and


systematically reviewed and problems trended

All repair reports are maintained and used to plan long term
maintenance scope.

Identification, selection, and scheduling of work


activities incorporate applicable lessons learned
from operating experience

Operating experience is considered as one factor for


scheduling maintenance work when outage scope is
determined.
Working with EPRI to identify critical equipment.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

Observations at Desert Basin

Everybody inside the plant can enter work orders.


Shift Supervisors approve the work orders.
O&M Manager can reprioritize work orders.
Work is assigned during daily morning meeting.

50
EN ER GY

Desert Basin Maintenance Conduct Observations


#

Maintenance Conduct Best Practice

Preventive maintenance is not waived or deferred


for extended periods

Preventive maintenance for gas turbines is performed in


accordance with OEM recommendations.
BOP is closely monitored and frequently maintained.

Preventive maintenance documentation is


appropriately maintained and easily accessible to
all people in the plant

All documentation is stored and used for future outage


planning.
Maximo is the system of record.

Effectiveness of preventive maintenance work is


periodically evaluated improvements are made

Preventive maintenance documentation is used to evaluate


future maintenance work scope for BOP.

Predictive maintenance (PdM) activities are


determined and considered for components that
affect safe and reliable plant operations

After critical equipment is determined with EPRIs support,


plant will be using more predictive maintenance approaches.
OEM recommendations are followed for gas turbines.

Condition monitoring techniques (e.g. vibration


analysis, oil analysis) are used to assess
equipment performance

Plant uses oil analysis, vibration monitoring on GTs and


larger BOP equipment, thermography for HRSG, motor
current analysis, NDE, and OEM turbine monitoring.
SRP has established a Performance Diagnostic Center to
monitor Smart Signal parameters centrally as well as locally.

Corrective maintenance includes root cause


analysis, and evaluation of alternatives using the
economic worth of unit improvement

Root cause analysis is performed.


Plant doesnt perform a formal cost benefit analysis, but an
informal review is always undertaken.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

Observations at Desert Basin

51
EN ER GY

Desert Basin General Observations


General observations from the plant tour and interviews with plant
management are:
The plant is in a well maintained state, all areas are clean
Due to major ongoing outage work on CT2, the plant floor was filled with parts, but
remained neatly organized
The plant updated the gas turbines with improved controls for better starting
capability and uprated hardware to enable longer outage intervals. Both investments
will improve plant performance in the future
Plant management shows pride in
o Staff empowerment and ability to make good decisions for the plant

o No barriers between departments and very good inter-departmental communication


o Dedication and level of experience in workforce
o Availability of all tools and fixtures to perform high quality repairs in house

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

52
EN ER GY

Table of Contents
Maintenance Management Practices
Coronado (coal)
Navajo (coal)
Desert Basin (gas)

Agua Fria (gas)

Santan and Kyrene (gas)


Review of Historical Gas Turbine Outage Intervals

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

53
EN ER GY

Santan Plant Overview


Santan Generating Station is located in Gilbert, AZ, owned 100% by SRP.
Units 1-4: Four General Electric 7E gas turbines in combined-cycle
configuration, 1 gas turbine per steam turbine on single shaft (STAG), first fire
1974-75.
Unit 5: Two General Electric 7FA gas turbines in combined cycle configuration,
2 gas turbines per steam turbine, first fire in 2005.
Unit 6: One General Electric 7FA gas turbine in combined cycle configuration,
one gas turbine per steam turbine, first fire in 2006.
Total station generating capacity is approximately 1,193 MW.
Santan is used to supplement base-load plants. The plant is capable of
producing power within 20 to 60 minutes.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

54
EN ER GY

Kyrene Plant Overview


Kyrene Generating Station is located in Tempe, AZ, owned 100% by SRP.
Units 1-3 are not included in the report because they are no longer typically
operated.
Unit 4: One Westinghouse 501B in simple cycle configuration, first fire in early
1970s.
Units 5-6: Two General Electric 7B gas turbines in simple cycle configuration,
first fire in early 1970s.
Unit 7: One General Electric 7FA gas turbine in combined cycle configuration,
one gas turbine per steam turbine, first fire in 2002.
Total station generating capacity is approximately 521 MW.
Kyrene increases the reliability of the local electric system. Depending on the
unit, Kyrene can produce power within 10 to 30 minutes to meet peak
demands.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

55
EN ER GY

Santan/Kyrene Maintenance Program Observations


#
1

Maintenance Program Best Practice

Observations at Santan/Kyrene

Plant maintenance is based on criticality of plant


equipment and contribution to business objectives

Gas turbines are maintained to OEM recommendations.


Condition based maintenance is used for BOP equipment.
General philosophy is to maintain equipment within intervals
that ensure a safety margin.

Corrective and preventive maintenance are


properly balanced

Current mix is about 1/3 preventive and 1/3 predictive and 1/3
corrective maintenance.
Moving to more condition based and predictive maintenance.

Value of unit improvements is communicated


across plant personnel

Plant personnel buys into concept that unit value determines


their future and takes pride in maintaining units.

Improvement opportunities are openly shared


with other SRP plants

Santan and Kyrene share management and parts.


SRPs other gas plants operate different gas turbine
technologies with limited sharing opportunities.
Corporate Engineering supports plant level improvements.

Consistent methodology is in place to analyze and


record equipment history

Major equipment history is consistently tracked.

Formal root cause analysis is systematically


performed on high impact events

RCA is established, sometimes pulling in Corporate


Engineering, OEM or insurance company for additional
support.

Communication methods with equipment


vendors to identify problem areas are in place

OEM is a source of input for critical equipment problems, for


example GE will conduct an RCA for certain equipment.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

56
EN ER GY

Santan/Kyrene Maintenance Planning Observations


#

Maintenance Planning Best Practice

Long-range outage and major maintenance plan


exists and is reviewed periodically

Outage plan coincides with six year corporate financial plan.


Plan is further refined as outage start dates become closer.

Durations between outages are consistent with the


business drivers and risks are appropriately
managed

Plant schedules outages to optimize plant availability during


peak periods.
Equipment is frequently monitored using various predictive
maintenance approaches.

Outage planning process allows adequate


planning for projects requiring material with long
lead times

Outage scope for long lead time items is defined ahead of


time.
A documented process does not exist.

Advanced planning is established for scheduled


and unscheduled outages

Unscheduled outages are reviewed with dispatch and moved


to the least disruptive times.

Outage and maintenance work scopes are clearly


defined and planned

Work scopes are defined in Maximo and further detail is


planned in Primavera.
Not all work scopes are planned, in particular smaller items.

Maintenance history records are maintained and


accessible

Gas turbine maintenance records are centrally tracked for


Santan and Kyrene.
Every repair report is used and acted upon for long term
planning.

Maintenance history records and utility industry


experience are appropriately considered in
planning for maintenance

About a third of all maintenance is condition based with the


goal to increase this ratio over time.
Plant participates in gas turbine user group that also covers
BOP, but tends to be more conservative for outage intervals.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

Observations at Santan/Kyrene

57
EN ER GY

Santan/Kyrene Outage Management Observations


#

Outage Management Best Practice

Overall outage planning maximizes plant run


time and minimizes forced, scheduled and
maintenance outages

Outage planning goal is to maximize peek period availability.


Off peek periods are used for maintenance.

Outages are effectively planned with well-defined


authorization, organization, work scope,
schedules and resources

Outage scope is determined jointly between Plant


Management and Supervisors of all departments.
BOP outages are scheduled around the GT outages.

Outage scope list contains all planned tasks with


assigned work groups and resource estimates for
completing the work

The outage scope is defined with tasks to be completed, in


house crews and contractors assigned.
Scope is frozen 6 months prior to outage.

Outage inspection results are evaluated and


approved work scope changes are implemented
into the outage

Planner keeps track of the overall schedule and the plant


management determines if emergent work can be
implemented in the current outage or is postponed.

Work schedules and completion status are


reviewed on a regular basis

Milestone meetings are held with shortened intervals as the


outage gets closer.
During the outage, plant management performs a daily scope
review.

Outage records are compiled with inspection


results, deferred work, remedial work plans, and
relevant outage correspondence

Every repair report is used and acted upon for long term
planning.

Post-outage reviews are conducted, for both


planned and forced outages

For forced outages, an RCA is performed.


Post-outage performance indicators are not in place.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

Observations at Santan/Kyrene

58
EN ER GY

Santan/Kyrene Work Management Observations


#

Work Management Best Practice

All work requests are evaluated, planned and


processed using Computerized Maintenance
Management System (CMMS)

Maximo is currently used; an update to a new Maximo


version is in progress, scheduled for June 2012.
All work is performed through Maximo.

The system is utilized by all plant people


reflecting the overall business strategy

Planner reviews all work orders for importance and value.

Work requests are screened and approved by


knowledgeable personnel based on value and
company business goals

Requested and approved work activities are


tracked in the CMMS until the work order is
closed

All work orders are maintained in Maximo.


Quarterly backlog review is performed.
Obsolete work orders are deleted annually.

Scheduling of maintenance uses available


manpower effectively and avoids unnecessary
removal of equipment and systems

Planner optimizes work orders so that when a system is


maintained associated work orders are performed
concurrently.

Maintenance history is periodically and


systematically reviewed and problems trended

All repair reports are maintained and used for long term
maintenance.

Identification, selection, and scheduling of work


activities incorporate applicable lessons learned
from operating experience

Predictive and condition based maintenance experience is


build into the work schedules.
Exception are gas turbines where maintenance is performed
to OEM specifications.

2012 Nav igant Consulting, Inc.


Confidential and proprietary . SRP use only .

Observations at Santan/Kyrene

Everybody inside the plant can enter work orders.


Planner prioritizes work orders.
Plant management has ability to override.
Operations Supervisor determines daily work.

59
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Santan/Kyrene Maintenance Conduct Observations


#

Maintenance Conduct Best Practice

Observations at Santan/Kyrene

Preventive maintenance is not waived or deferred


for extended periods

Preventive maintenance for gas turbines is performed in


accordance with OEM recommendations.
BOP is in the process of transition to more predictive
maintenance approaches.

Preventive maintenance documentation is


appropriately maintained and easily accessible to
all people in the plant

All documentation is stored and used for future outage


planning.

Effectiveness of preventive maintenance work is


periodically evaluated improvements are made

Preventive maintenance documentation is used to evaluate


future maintenance work scope for BOP.

Predictive maintenance (PdM) activities are


determined and considered for components that
affect safe and reliable plant operations

Plant is planning to transition more to predictive maintenance


approaches, with the exception of gas turbines where OEM
recommendations are followed.

Condition monitoring techniques (e.g. vibration


analysis, oil analysis) are used to assess
equipment performance

Plant uses oil sampling (mainly transformers and rotating


equipment) (EtaPro), vibration monitoring on GTs and larger
BOP equipment, thermography, motor current analysis and
Combustion Dynamics Monitoring (CDM).
Smart Signal is used to monitor key equipment of the
combined cycle trains.
SRP has established a Performance Diagnostic Center to
monitor Smart Signal parameters centrally as well as locally.

Corrective maintenance includes root cause


analysis, and evaluation of alternatives using the
economic worth of unit improvement

Root cause analysis is performed for all incidents determined


critical by Plant Management.

2012 Nav igant Consulting, Inc.


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60
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Santan/Kyrene General Observations


General observations from the plant tour at Santan and interviews with plant
management are:

The Santan plant is in a well maintained state, all areas are clean without any debris
The Santan gas turbines are visually in good condition and have been well maintained
Plant Management is very engaged in the maintenance program
Plant management shows pride in
o Dedication and level of experience in workforce
o Breadth and depth of workforce talent, which provides the plant with many in-house

capabilities
o Excellent collaboration between operations, maintenance and engineering

Note that Navigant did not tour the Kyrene plant due to scheduling conflicts.

2012 Nav igant Consulting, Inc.


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61
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Table of Contents
Maintenance Management Practices
Coronado (coal)
Navajo (coal)
Desert Basin (gas)

Agua Fria (gas)


Santan and Kyrene (gas)

Review of Historical Gas Turbine Outage Intervals

2012 Nav igant Consulting, Inc.


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OEM Recommended Outage Intervals by Technology


General Electric
Publication GER-3620L.1 (10/10)

Siemens / Westinghouse
Service Bulletin 36803 Rev. 10

7241 FA+e
Santan (SA) 5a, 5b and 6 - Kyrene 7

W501F
Desert Basin CT 1 and CT2

Combustion
Inspection
(CI)

Hot Gas Path


Inspection
(HGP)

Major
Inspection
(MI)

Factored
Starts
(FS)

450

900

2,400

Total
Equivalent
Starts (ES)

Factored
Fired Hours
(FFH)

12,000

24,000

48,000

Equivalent
Base Hours
(EBH)

7 E/EA
Santan (SA) 1, 2, 3, 4 - Kyrene 5, 6

Hot Gas Path


Inspection
(HGP)

Major
Inspection
(MI)

400 /
900 (with
uprate)

800 /
900 (with
uprate)

1,600 /
1,800 (with
uprate)

8,000 /
12,500 (with
uprate)

24,000 /
25,000 (with
uprate)

48,000 /
50,000 (with
uprate)

W501B
Agua Fria Unit 4, 5 and 6 Kyrene 4

Combustion
Inspection
(CI)

Hot Gas Path


Inspection
(HGP)

Major
Inspection
(MI)

Factored
Fired Hours
(FFH)

450

1,200

2,400

Factored
Starts
(FS)

12,000

24,000

48,000

2012 Nav igant Consulting, Inc.


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Combustion
Inspection
Major (CI)*

Combustion
Inspection
Major (CI)*

Hot Gas Path


Inspection
(HGP)

Major
Inspection
(MI)

Total
Equivalent
Starts (ES)

400

800

1,600

Equivalent
Base Hours
(EBH)

8,000

16,000

32,000

* No minor combustion inspections are


required when operating on natural gas
63
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Historical Outage Intervals for 7FA Gas Turbines


Santan (SA) 5a, 5b and 6 - Kyrene K7
Unit
SA5a

SA5b

SA6

K7

CI

HGP (incl. CI)

CI

Current Data

Comment

Date
Total FS
Incremental FS
Total FFH
Incremental FFH

12/12/2006
511
511
11,017
11,017

4/18/2008
929
418
19,048
8,031

1/3/2011
1,379
450
31,300
12,252

5/1/2012
1,609
230
35,657
4,357

Outage taken within prudent industry practices (7F user group)

Date
Total FS
Incremental FS
Total FFH
Incremental FFH

12/20/2006
521
521
9,468
9,468

4/18/2008
837
316
17,178
7,710

5/2/2010
1,159
322
29,248
12,070

5/1/2012
1,540
381
35,620
6,372

Outage taken within prudent industry practices (7F user group)

Date
Total FS
Incremental FS
Total FFH
Incremental FFH

9/30/2007
476
476
9,634
9,634

10/27/2009
844
368
23,357
13,723

1/3/2012
1,267
423
30,231
6,874

5/1/2012
1,315
48
32,155
1,924

Outage taken within customary 10% range of OEM interval

Date
Total FS
Incremental FS
Total FFH
Incremental FFH

No
Previous
History

11/10/2007
1572
Unknown
25,000
Unknown

3/1/2009
1,946
374
30,724
5,724

5/1/2012
2,368
422
40,233
9,509

Outage taken within customary 10% range of OEM interval

Outage taken within customary 10% range of OEM interval

Outage taken within prudent industry practices (7F user group)

Hours timer reset after control change

The gas turbines have historically been maintained in accordance with manufacturer recommended
intervals and appropriate prudent industry practices.
Yellow highlighted cells show variances from manufacturer recommended intervals. All of these are
within prudent industry practices.

2012 Nav igant Consulting, Inc.


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64
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Historical Outage Intervals for 7E/EA Gas Turbines


Santan (SA) 1, 2 and 3
Unit
SA1

SA2

SA3

Outage Sequence

Current Data

Comment

Outage Event
Date
Total FS
Incremental FS
Total FFH
Incremental FFH

CI
3/31/2008
254
Not available
2,069
Not available

CI
2/2/2011
4,024
437
81,213
3,499

5/1/2012
4,178
154
82,532
1,319

Controls upgrade in April 2010 with hours/starts counter update

Outage Event
Date
Total FS
Incremental FS
Total FFH
Incremental FFH

CI
12/5/2008
1,636
364
17,531
3,034

HGP
11/1/2011
3,803
315
90,778
2,589

5/1/2012
3,846
43
91,144
366

Controls upgrade in April 2010 with hours/starts counter update

Outage Event
Date
Total FS
Incremental FS
Total FFH
Incremental FFH

CI
12/1/2007
1,286
Not available
14,144
Not available

CI
11/30/2010
3,701
480
82,914
3,808

5/1/2012
3,881
180
84,469
1,555

Controls upgrade in April 2010 with hours/starts counter update

Outage taken within customary 10% range of OEM interval

The gas turbines have historically been maintained in accordance with manufacturer recommended
intervals and appropriate prudent industry practices.
Yellow highlighted cells show variances from manufacturer recommended intervals. All of these are
within prudent industry practices.

2012 Nav igant Consulting, Inc.


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65
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Historical Outage Intervals


Santan (SA) 4 - Kyrene K4, K5 and K6
Unit

Outage Sequence

SA4

Outage Event
Date
Total FS
Incremental FS
Total FFH
Incremental FFH

K4, K5
K6

CI
2/11/2008
818
Not available
7,376
Not available

CI
4/1/2011
3,885
449
90,615
3,502

Current Data
MI
4/3/2012
4,023
138
91,829
1,214

Comment
Controls upgrade in April 2010 with hours/starts counter update

5/1/2012
4,036
13
91,945
116

Outage Event
Date
Total FS
Incremental FS
Total FFH
Incremental FFH

No outages have been performed since 2001.


Historical data is available from 2008 onwards only.

The gas turbines have historically been maintained in accordance with manufacturer recommended
intervals and appropriate prudent industry practices.
Due to low run times for K4, K5 and K6 no planned gas turbine outages have been performed since
2001.

2012 Nav igant Consulting, Inc.


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66
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Historical Outage Intervals for 501F Gas Turbines


Desert Basin CT1 and CT2
Unit
CT1

CT2

Outage Sequence

Current
Data

Event
Date
Total ES
Incremental ES
Total EBH
Incremental EBH

CI
1/14/02

CI
6/13/02

CI
1/24/03

HGP
1/25/04

HGP
4/23/04

CI
4/2/05

MI
10/15/06

398
398
124
124

465
67
250
127

637
172
459
209

806
169
713
254

855
49
760
47

1,069
214
986
226

1,487
418
1,299
312

CI
3/8/08
1,917
430
1,504
205

Event
Date
Total ES
Incremental ES
Total EBH
Incremental EBH

CI
3/1/02

CI
1/25/03

HGP
1/8/04

CI
4/8/05

MI
3/4/06

CI
4/6/07

HGP
10/2/08

306
306
155
155

506
200
432
277

708
202
651
219

1,135
427
950
298

1,457
322
1,111
162

1,791
334
1,220
109

2,262
471
1,482
262

CI
11/5/09

HGP
5/1/09
2,161
244
1,656
152
Upgrade
HGP
2/5/11

HGP
7/2/11

2/28/12

2,484
222
1,602
120

2,668
184
1,710
108

2,690
22
1,723
13

2,750
60
1,765
43

2/3/12
2,610
449
1,957
301

Notes for CT1:


The outages on 10/15/2006 and 3/8/2008 were taken within customary 10% range of OEM interval
Unit uprated to Siemens Service Bulletin SB4-11-0018 on 5/1/2009, allowing for extended outage intervals (see slide OEM Recommended
Outage Intervals by Technology)
Notes for CT2:
The outage on 4/8/05 was taken within customary 10% range of OEM interval. The outage on 10/2/2008 was taken based on business need
and in accordance with prudent practices shared with other industry operators.
Unit is in forced outage as of 2/28/2012 due to thru bolt failure.

The gas turbines have historically been maintained in accordance with manufacturer recommended
intervals and appropriate prudent industry practices.

2012 Nav igant Consulting, Inc.


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67
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Historical Outage Intervals for W501B


Agua Fria Units 4, 5 and 6 / Kyrene 4
Historical outage data is not available.
According to interviews with plant personnel, intervals have been maintained
based on OEM recommendations and sometimes more conservatively.
In some cases, the units have been maintained at intervals more stringent than
OEM recommendations due to expected reliability needs in summer peaks.
For example, an outage may have been taken in the spring (earlier than OEM
recommendations require) to ensure that the unit can run without interruption
all summer and not exceed OEM recommendations.

2012 Nav igant Consulting, Inc.


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EN ER GY

Table of Contents
Executive Summary
Project Background
Maintenance Management Practices
Cost and Performance Benchmarks
Summary of Findings and Conclusions
Recommendations

2012 Nav igant Consulting, Inc.


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Coronado Summarized Findings


EAF

EFOR

NFOM
($/MWh)

Unit

Technology

Comment

Coal

91.6%

3.5%

$8.84

Operations cost is top quartile while maintenance cost is


second quartile. NCF is top quartile.

Coal

91.1%

4.4%

$8.62

Operations cost is top quartile while maintenance cost is


second quartile. NCF is top quartile.

Plant Level Summary Findings


Plant is performing at a very high level in all three areas of availability, reliability and NFOM cost.
To reach elite status (i.e.- top quartile in both NFOM cost and availability), reductions in NFOM cost
would need to be achieved while maintaining current levels of availability and reliability.
No alarming trends in availability, reliability or NFOM cost.
Plant maintenance practices are above average and consistent with both OEM and industry
standards.

Legend:

Top quartile

Second quartile

Third quartile

Fourth quartile

EAF: Equivalent Availability Factor, EFOR: Equivalent Forced Outage Rate, NFOM: Non-Fuel Operations and Maintenance

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Navajo Summarized Findings


EAF

EFOR

NFOM
($/MWh)

Unit

Technology

Comment

Coal

90.3%

3.1%

$7.66

Operations cost is top quartile while maintenance cost is


third quartile. NCF is top quartile.

Coal

89.8%

4.6%

$7.62

Operations cost is top quartile while maintenance cost is


third quartile. NCF is top quartile.

Coal

90.2%

4.3%

$7.40

Operations cost is top quartile while maintenance cost is


third quartile. NCF is top quartile.

Plant Level Summary Findings


Plant is performing at a very high level in all three areas of availability, reliability and NFOM cost.
Maintenance cost is the only area with worse than median performance.
To reach elite status (i.e.- top quartile in both NFOM cost and availability), reductions in NFOM cost
would need to be achieved while maintaining current levels of availability and reliability.
No alarming trends in availability, reliability or NFOM cost.
Plant maintenance practices are above average and consistent with both OEM and industry
standards.
Legend:

Top quartile

Second quartile

Third quartile

Fourth quartile

EAF: Equivalent Availability Factor, EFOR: Equivalent Forced Outage Rate, NFOM: Non-Fuel Operations and Maintenance

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Agua Fria Summarized Findings


Unit

Technology

SR

EFORd

NFOM ($/kW)

Comment

Gas Steam

100%

1.01%

$32.01

NFOM close to fourth quartile border

Gas Steam

100%

7.04%

$33.92

NFOM close to fourth quartile border

Gas Steam

100%

1.86%

$34.03

NFOM close to fourth quartile border

CT

99%

9.71%

$12.93

NFOM approaching worst decile

CT

99%

6.30%

$12.56

NFOM approaching worst decile

CT

100%

6.79%

$11.74

NFOM approaching worst decile

Plant Level Summary Findings


Agua Fria shows an overall very high starting reliability, consistent with SRPs unit objectives.
Equivalent forced outage rate demand varies by unit; with AF4 being impacted by events in 2005 and
2011.
The cost position ranks worse than industry peers, however this historical cost position is not
reflective of future performance because personnel changes occurred and work will be bid out
competitively in the future.
Plant management demonstrated a well established maintenance program during interviews.
Legend:

Top quartile

Second quartile

Third quartile

Fourth quartile

SR: Starting Reliability, EFORd: Equivalent Forced Outage Rate demand, NFOM: Non-Fuel Operations and Maintenance
Note that SRP counts a start as successful once a unit is ready for dispatch. This is considered more stringent than other industry measures.
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Desert Basin Summarized Findings


Unit

Technology

DB

Combined
Cycle

SR
97%

EFOR

NFOM
($/kW)

20.49%

Comment

$32.26

NFOM close to fourth quartile. Cost driven by


maintenance rather than operations.

Plant Level Summary Findings


Desert Basins equivalent forced outage rate is higher than the worst decile, partly driven by events in
2006 and 2009.
Review of Desert Basin outage history highlights frequent unplanned outages, which contributed to
Desert Basins high cost position in comparison to industry peers.
Plant management demonstrated a well established maintenance program during interviews.
The plant has invested towards improved future performance. These improvements include
hardware for extended outage intervals and turbine control upgrades.

Legend:

Top quartile

Second quartile

Third quartile

Fourth quartile

SR: Starting Reliability, EFOR: Equivalent Forced Outage Rate, NFOM: Non-Fuel Operations and Maintenance
Note that SRP counts a start as successful once a unit is ready for dispatch. This is considered more stringent than other industry measures.
Peer statistics for combined cycle starting reliability are unavailable.
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137
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Santan Summarized Findings


SR

EFOR

NFOM
($/kW)

Unit

Technology

Comment

Combined
Cycle

95%

7.30%

$28.32

NFOM close to the border of top quartile

Combined
Cycle

92%

11.94%

$27.84

NFOM close to the border of top quartile

Combined
Cycle

96%

2.85%

$18.75

NFOM is better than top decile

Combined
Cycle

97%

10.38%

$25.02

NFOM close to the border of top decile

Combined
Cycle

98%

6.46%

$30.24

NFOM slightly elevated cost due to maintenance. NCF


slightly above 50%, about average for peer group.

Combined
Cycle

98%

8.12%

$22.55

Solid second quartile performance

Plant Level Summary Findings


Total plant equivalent forced outage rate is mixed, with high impact events for S5 in 2006 and 2011.
Non fuel O&M cost is generally first to second quartile.
Plant management demonstrated a well established maintenance program during interviews.
Parts sharing between Santan and Kyrene enables efficiencies in parts cost and scheduling.
Legend:

Top quartile

Second quartile

Third quartile

Fourth quartile

SR: Starting Reliability, EFOR: Equivalent Forced Outage Rate, NFOM: Non-Fuel Operations and Maintenance
Note that SRP counts a start as successful once a unit is ready for dispatch. This is considered more stringent than other industry measures.
Peer statistics for combined cycle starting reliability are unavailable .
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138
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Kyrene Summarized Findings


SR

EFORd

NFOM
($/kW)

Unit

Technology

Comment

CT

91%

27.51%

$6.74

Operations and maintenance contribute equally to NFOM


position. NCF below peer median.

CT

97%

10.12%

$9.35

Operations and maintenance contribute equally to NFOM


position. NCF below peer median.

CT

97%

12.94%

$7.35

Operations and maintenance contribute equally to NFOM


position. NCF below peer median.

Combined
Cycle

99%

14.24%
(EFOR)

$33.60

NFOM is close to fourth quartile border. NCF above peer


median.

Plant Level Summary Findings


Starting reliability for Kyrene is worse than most peers. Note that Navigant did not calculate starting
reliability benchmarks for K7.
Equivalent forced outage rate demand is worse than most peers. Note that benchmark for K7 is
EFOR, not EFORd.
Non-fuel O&M cost is worse than most peers.
Kyrene has a worse than average position in all performance measures despite the absence of
planned gas turbine outages (no outages since 2001) and shared management with Santan.
Legend:

Top quartile

Second quartile

Third quartile

Fourth quartile

SR: Starting Reliability, EFOR: Equivalent Forced Outage Rate demand, NFOM: Non-Fuel Operations and Maintenance
Note that SRP counts a start as successful once a unit is ready for dispatch. This is considered more stringent than other industry measures.
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Table of Contents
Executive Summary
Project Background
Maintenance Management Practices
Cost and Performance Benchmarks
Summary of Findings and Conclusions
Recommendations

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140
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Coal Plant Recommendations


Recommended Improvement Areas for SRPs Coal Plants
1.

2.

3.

SRP should consider the potential benefit of standardizing critical processes between the two coal
plants, such as the pre-outage planning process, post-outage critique process, etc. Other best
performing companies have realized the benefit of leveraging best practices across their fleet,
especially when it comes to critical processes.
Continual (dynamic) optimization of a PM program is a hallmark of an outstanding maintenance
program, along with strong craft involvement and ownership. SRP should consider implementing a
PM specific craft feedback process to encourage both continual optimization of the PM program and
craft ownership. See the next slide titled Example PM Craft Feedback Form.
SRP should consider implementing a post-outage reliability indicator as another means to assess the
effectiveness of a planned outage. Typical characteristics of these indicators are:
A. They measure reliability (i.e. EFOR, EUOF, etc.) for some period after breaker closed and the
outage is officially declared over. Usually this period is anywhere from one to three months.
B. Targets are established.
C. Events resulting in reliability loss during the evaluation period are evaluated in the context of
1. Was this an item worked on during the outage? If so, does this represent a quality of
work issue?
2. If this item was not worked on during the outage, does this represent a failure of our
condition assessment or outage planning process?
3. Etc.

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Coal Plant Recommendations Example PM Craft Feedback


Form
Overview:
The craft feedback grading categories are designed to utilize the professional opinion of the
crafts to validate the existing PM for accuracy, thoroughness of the work scope, and
appropriateness of the periodicity, or to justify other changes to the PM as applicable.

Category Grade
5

Good: The PM condition is comparable to the same condition as if the PM


was just worked. Like new condition. Evaluate increasing the periodicity.

Above Average: The PM condition is between good(5) and average (3). There
is very minor degradation.

Average: The PM condition is adequate and degradation is normal and as


expected. PM periodicity is correct.

Below Average: PM condition is between poor (1) and average (3). More
degradation than expected.

Poor: Immediate attention is required. It is at a point where the function of


the component has significantly deteriorated. Evaluate reducing the
periodicity.

Source: Reliability Centered Maintenance, Neil B. Bloom


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Gas Plant Recommendations


Recommended Improvement Areas for SRPs Gas Plants
1.

2.
3.
4.
5.

6.
7.

SRP should perform an in depth review of maintenance cost drivers for its gas plants. While all plants
interviewed demonstrated a well established maintenance program, maintenance costs are generally
higher than peers. Navigant recommends a detailed cost review to identify causes and devise suitable
next steps to improve the cost position.
Recommend implementation of post-outage reliability performance success measure as another
means to determine outage effectiveness.
The maintenance process should be documented and readily available for personnel, despite the deep
experience of the existing (graying) workforce.
Outage scope planning appeared lax at most locations, especially for long lead time items.
Recommend to evaluate benefits of structured outage scope planning approaches.
Outage cost tracking appears slow. Recommend to review the outage cost tracking process and
determine if faster cost tracking during outages would identify trends earlier and mitigate potential
cost overruns.
The sites did not follow a formal cost / benefit analysis process for planned upgrades. Recommend to
evaluate the benefit of formal cost / benefit analysis.
All sites should follow a documented set of criteria that determines when a RCA is conducted.

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Key
C ON TACTS

EN ER GY

Dale Probasco| Managing Director


dprobasco@navigant.com
612.868.5955 direct

EN ER GY

Robert Ruhlman| Associate Director


rruhlman@navigant.com
706.754.0957direct

EN ER GY

Mark Scherluebbe| Associate Director


mark.scherluebbe@navigant.com
404.602.3496 direct

2010 Nav igant Consulting, Inc.


2012
Do not
distribute
Confidential and proprietary . SRP
use
only . or copy .

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