ABB Automation & Power World: April 18-21, 2011

WPO1061 Cost Benefit Analysis - Upgrades to Existing Distribution Equipment

ABB Inc. April 20, 2011 | Slide 1

WPO1061 Cost Benefit Analysis Upgrades to Existing Distribution Equipment

Rick Gardner Sales & Marketing Manager ABB Florence SC

ABB Inc. April 20, 2011 | Slide 2

Issues of Aging Switchgear

Switchgear and Breakers are beyond a reasonably expected life

Existing breaker technology is old and unreliable Replacements parts are difficult or impossible to locate - costly Arc Chutes may contain Asbestos and can not be safely maintained Mechanisms are complicated and difficult to lubricate effectively without a comprehensive overhaul Operator safety is in question arc flash hazards Customer is facing forced outages poor equipment reliability Maintenance support a risk due to workforce attrition Training for vintage equipment is not well documented and repeatable.

Challenges

What are the most cost effective options for improving reliability while extending the life of our installed distribution equipment? How can we improve the safety and reduce the PPE requirements? Do we have any exposure to financial or legal liability if we do not make any improvements? Life extension goal is it short term or long term?

Long term cost of the decisions the cumulative cost over the targeted life extension will guide you to the right decision assuming other expectations are met.
Litigation exposure the arc flash studies are done. You know your incident energy levels and PPE requirement. Can you afford to do nothing? Budgets cost will drive the decision as much as the other needs Outage durations or unplanned outages what has the financial impact been due to unplanned outages, around the clock maintenance, expediting charges & losts production.

Evaluation Steps

Determine objectives safety upgrades, life extensions etc Understand budget and time constraints Understand what your current O&M cost are Establish current health and immediate needs of the installed gear internal evaluation or third party equipment assessment. Enter customer inputs into the cost analysis tool to determine full cost over targeted life extension. Evaluate the results and make the decision that supports budget and life extension goals.

Asset Assessment
Objectives

System Reliability and Availability

Safety of Personnel and Property Maintenance cost Develop risk profile of asset base Provide a risk mitigation plan with priorities for action Execute action plan Perform periodic re-assessments to monitor reduction in risk profile resulting from executing actions

Asset Assessment Case Study Example

7.4 As Found/As Left Comparison Chart
As Found & Left Comparison

6 14 1

As Found As Left

14 15 2 14

Risk Category 8 3

214

211

50

100 # Units

150

200

250

Cost Benefit Analysis Tool

Compares

Breaker refurbishment with upgrades Breaker retrofit with upgrades

Switchgear change out

$800,000.00 $700,000.00

Cost Comparison

Total Cost

Interactive Customer inputs their variables Address all the major components of the gear Cafeteria selection of upgrades Factors in maintenance requirements

$600,000.00 $500,000.00 $400,000.00 $300,000.00 $200,000.00 $100,000.00 $0.00

A rc Resistant Gear

Co nventio nal Gear

Facto ry In Ho use Refurbhisment Refurbhisment

Ro ll in Replacement B reakers

Service

Adjust cycle times with newer technology

Calculates the cycle times by decision Outputs compare the options & cost Financial comparisons of different approaches

Approach - Decision Factors

Life extension goal

Maintenance cost Safety upgrade requirements Arc flash concerns In house talent maintenance Budgets Long term cost of all decisions Down time Outage durations Engineering impacts Training Parts

Breaker Refurbishments - Advantages

Factory Advantages

In-House Advantages

Factory expertise

Scheduling Reduced cost No shipping expense Develop expertise

Plating
Painting Latest drawings

Upgrades
Engineering support Warranty as new

Replacement Breakers Magnetic Actuator Advantages

Amvac

Latest technology Reduced parts Reduced maintenance Reduced training Longer life cycle

Longer warranty period

Modular units simple repairs

Switchgear Replacement - Advantages

Arc Resistant

Conventional

Wholesale change out Arc resistant protection Latest technology Engineering upgrades incorporated. Reduced maintenance Updated training Meets latest standards

Wholesale change out

Latest technology
Engineering upgrades incorporated.

Reduced maintenance
Updated training Meets latest standards

Demo Time

Financial Results
Cost Comparison
$800,000.00 $700,000.00

Total Cost

$600,000.00 $500,000.00 $400,000.00 $300,000.00 $200,000.00 $100,000.00 $0.00

Arc Resistant Gear

Conventional Gear

Factory In House Refurbhisment Refurbhisment

Roll in Replacement Breakers

Service

Cycle Time Impacts

Cycle Time Comparison
12

Cycle Time

10 8 6 4 2 0

Safegear Remo val and Installatio n

A dvance Remo val and Installatio n

Facto ry Refurbhisment

In Ho use Refurbhisment

Ro ll in Replacement B reakers

Service

Cumulative Cash All options

800000

700000

600000

500000
Cumulative Cash

400000

Safegear Advance Factory Refurb Customer Refurb Replacement Breakers

300000

200000

100000

0 0 5 10 15 Year 20 25 30

Conclusion
Replacement Switchgear

Provides arc-flash protection Renews total system for long term life Improves technology and protection systems Refreshes training programs Reduces O&M cost Longer cycle time for change out Most expensive option - both up-front and over 30 years

Conclusion
Refurbishment & Upgrades

Proper refurbishment can extend breaker life for 30 years but the maintenance of keeping older technology could be challenged. Continued issues with training and parts inventory

Replacement of CT/PT and other components may also be needed

Overall cost will be influenced by upgrades selected cafeteria selections

Lowest short term cash out, but could be all on O&M budget

Conclusion
Replacement Breakers & Upgrades

Higher reliablity Improves safety Updates training and parts inventory Overall cost will be influenced by upgrades selected cafeteria selections

Replacement of CT/PT and other components may also be needed

Best value for a long term solution

Reminders Automation & Power World 2011

Please be sure to complete the workshop evaluation Professional Development Hours (PDHs) and Continuing Education Credits (CEUs):

You will receive a link via e-mail to print certificates for all the workshops you have attended during Automation & Power World 2011. BE SURE YOU HAVE YOUR BADGE SCANNED for each workshop you attend. If you do not have your badge scanned you will not be able to obtain PDHs or CEUs.

ABB Inc. April 20, 2011 | Slide 20

 ABB Group April 20, 2011 | Slide 21