The consequences of a transformer outage can be potentially catastrophic. From a 20-minute interruption to a several day outage, the failure of a single transformer can leave thousands of customers in the dark and in some cases can result in significant revenue losses.
According to a recent Willis North America Article (March 2008), The Transformer Problem, “transformers have for decades been ranked in the top five (5) by equipment insurers in terms of claims”. To magnify the importance of this issue, a June 2012 study, Large Power Transformers (LPTs) and the US Electric Grid by the U.S. Department of Energy indicated that “the average age of LPTs installed in the United States is approximately 40 years, with 70 percent of LPTs being 25 years or older and some as old as 70 years that are still operating in the grid”. The same source also noted that the useful life of these transformers, as estimated by manufacturers is typically 35 to 40 years.”
Replacing this aging infrastructure is one of the key challenges faced by today’s Utilities. Compounding the challenge is the fact that the “average price of copper more than quadrupled between 2004 and 2011, costing more than $4.27 a pound by 2011” causing the cost of transformers to skyrocket. Willis North America has indicated that “a large transformer that cost $500,000 in 1960 (there are many of this size and vintage still in use), now has a replacement cost of about $4,000,000”. Long lead times also create challenges, with the lead time for a new unit approaching an average of 18-24 months.
In response to these challenges, Veracity Asset Management Group developed Veracity Connect, a proactive critical spares management system. Veracity Connect links utilities, Cooperatives, OEM’s and leading transformer brokers to establish a pool of available critical spares. Veracity Connect allows utilities the ability to quickly locate matching spare transformers and capital equipment across North America all in one location.
- Instant access to critical spares such as transformers
- Power of collaboration: reach utilities, OEMs, brokers and industry partners across North America
- Proactive approach: understand where matching spares are before you need them
- Take advantage of pooling/sharing strategies for economies of scale
A glimpse of the assets we manage for our clients:
- Substation transformers
- Pad mount transformers
- Pole mount transformers
- Surplus line trucks
- Steam turbines
- Transmission towers
- LED street lights, such as:
Brand new VIVIX LRL3 and LRL4, 120-277 VAC, 50/60 Hz, full 10-year warranty
Contact us now at 866-694-1252 or email@example.com
In our continuing segments on the 7 R’s on Investment Recovery we concentrated on number 4: RESELL. We focused on the importance of placing used and unwanted assets back into the market by reaching out to end users or third party dealers and asset management companies.
We are continuing this month with our focus on 5 and 6: RECLAIM and RECYCLE.
Reclamation is a synonym of recycling. It is the process of recovering substances and materials in a pure or usable form from equipment, such as oil in transformers, lithium from batteries or mercury from LCD screens. The difference with recycling is that the substances are recovered but not reprocessed.
Recycling, internally or via recycling facilities, usually involves a specific process where a type of material, such as ferrous and non-ferrous metals, glass or plastic is fused and turned into new, raw materials.
Recycling is strongly recommended. It is essential to reduce the amount of waste ending up in landfills, especially hazardous substances like PCBs. Income can be generated by recycling and reduces the need for virgin materials.
Recycled materials can directly be reused by your company or sent back to the raw material streams. The recycling facility should provide you with certifying documentation, useful to preserve your audit trail and your company reputation.
Veracity will participate in the Canadian Digital Media Network’s Soft-Landing Fall 2014 Program to help forge the partnerships and connections to take on the U.S. market.
“The Soft-Landing Program has already resulted in millions of dollars in new business and investment for our participating companies and generated more than a 30x return on CDMN’s investment of funds and resources,” said Kevin Tuer, CDMN’s Managing Director.
For more information about the program, please visit www.cdmn.ca/soft-landing-program/overview/
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Learn more about our Critical Spares Management Solution for Utilities: Make electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!