The 12 Blog Posts of 2014!

Utility Conferences 2015 1Selected 2015 Utility Conferences & Trade Shows

Large Power Transformers and The U.S. Electric Grid Veracity Critical Spares9 Key Facts from the “Large Power Transformers and the U.S. Electric Grid” Study

Debunking 5 Myths About Purchasing Reconditioned Electrical Assets VeracityDebunking 5 myths of Purchasing Reconditioned Electrical Assets – Infographic

Disposition Surplus Asset Veracity Asset ManagementDetermine the best disposition solution for your surplus assets – Infographic

Investment Recovery Veracity Asset Management UtilitiesInvestment Recovery: the Missing Link in the Supply Chain

Transformer Problem Veracity Connect WillisThe Transformer Problem

SpreadsheetWhy Using Speadsheets is a Risk for Your Supply Chain

We’re one of the 15 Canadian companies CDMNVeracity Is Part of the CDMN’s Outbound Soft Landing Program

Plant decommissioning Energy Nuclear Oil GasDecommissioning Projects: Why It Costs So Much And Takes So Much Time

Supply Chain, Investment Recovery, SustainabilityArticle Highlight: Sustainability, Investment Recovery and Supply Chain

Veracity Connect Critical SparesCritical Spares Infographic

Veracity Connect Utility Critical AssetVeracity Asset Management Group Announces the Introduction of Veracity Connect

Mutual AidAsset,Critical Spares Twitter BannerLearn more about our Mutual Aid & Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Stay updated through our social media platforms and our website:

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Subscribe to our Veracity’s monthly newsletter: Critical Spares Management & Investment Recovery for Utilities

Utilities News Roundup! November – December


Southern_California_Edison_(logo) Panel hears bids for storage of nuclear waste “Southern California Edison’s Community Engagement Panel met on Oct. 14 to hear bids from the two final companies vying to create storage for nuclear waste at the decommissioned San Onofre Power Plant.” #power

Entergy Entergy: $1.24B Is Needed to Decommission Vermont Yankee Nuclear #nucleardecommission

nuclear-power-plant End Of Life Costs For #Nuclear Power A Real Concern 200 nuclear reactors have to be shut down by 2040: who will lead the #decommissioning projects… and how much will be the bill? #power


Georgia Power Georgia Power named IOU of the Year for innovation, industry collaboration and leadership in the solar energy #IOU #utility

Hydroone Hydro One Invests to Refurbish Ontario Michigan Interconnection Transmission Circuit “The $6.8 million investment refurbished 24 towers on the 5.5-km circuit that runs from Sarnia Scott TS to the Mid River Junction Bunce Creek at the St. Clair River.” #powertransmission

Massachusetts Massachusetts Tops California as Most Energy-Efficient State #Massachusetts #energy #utilities

LG&E Kentucky PPL Companies LG&E, Kentucky Utilities to add up to 737MW of gas generation #Kentucky #gasplant

utilities2 Old Is New Again in the Utility Industry #utility #power

mega power plant Infographic: The World’s Ten Largest Power Plants “with the top 5 located in China and South America.” #powerplant #China

NERC NERC troubled about EPA Clean Power Plan impact on grid reliability “The NERC assessment, Potential Reliability Impacts of EPA’s Proposed Clean Power Plan, provides recommendations for further analyses to ensure continued system reliability.” #grid #utilities

AES_Corporation_(logo).svg AES to provide 1,284 MW of gas power to replace San Onofre “AES has been awarded 20-year contracts by Southern California Edison (SCE) to provide 1,284 MW of combined cycle gas-fired generation” #gaspower

Alstom Alstom delivers demand response system to Con Edison “The product is based on Alstom’s e-terra DRBizNet 3.0​, and provides utilities the ability to compensate energy flow and optimize existing assets.” #utilities

Tamil_Nadu_Electricity_Board_(emblem) Awards for failure-free operation of EB transformers “Over the past five years, transformer failures have come down to 6.25 per cent from 13 per cent in the Tiruchi region which has over 40,000 transformers” #utilities #powertransformers

energy-management-power-grid Northern Michigan is facing a power crisis. How will it be fixed? #Michigan #powergeneration

BChydro BC Hydro, LNG Canada sign #power deal; project still not official “The deal […] comes as the Liberal government announced the power rates for LNG proponents.”

the-keystone-xl-pipeline-just-moved-one-step-closer-to-approval-702x336 #Keystone XL price tag hits US$8B amid regulatory stalling #Albertaoilsands

Federal Energy Regulator Commission FERC issues decision on Duke-Progress merger…after three years #power

opower_s Opower, FirstFuel partnership yields ‘major expansion’ with #utility customer The partnership allies data #analytics and utility software systems.

Federal Energy Regulator Commission FERC Issues Order Authorizing the Disposition of Facilities Re Portland General Electric Company Under EC14-147 “The Boardman Project includes a 642.2 MW coal-fired generating facility, interconnection facilities to the Slatt Substation and a line used to deliver station power to the generating facility that runs from PacifiCorp’s 230 kV Dalreed Substation” #substation

utility1 monopoly Here’s what to expect for #utility rates in 2015 average increase of 1.9 %



Coal Plant Energy Coal gets cold shoulder from Denmark and Germany “Denmark and Germany have outlined plans to decrease or potentially eliminate coal plants as part of a push to meet climate goals. ” #coal #denmark #germany

abengoa_logo CCRES Abengoa to develop in Belgium the largest #biomass power plant in the world Capacity of 215 MW, €315M

map-oman #Oman Enhances #Power Delivery 6 new substations will be commissioned to answer electric demand

Rosatom Dhaka, Moscow finalise action plan for Rooppur #nuclear power plant #Russia

Radioactive California Fukushima Traces of #Fukushima Radiation Detected Off #California Coast A priori no harm

duke-energy-co-logo Duke Energy announces plans to begin removing #coal ash from four North Carolina sites ““The initial work at these facilities will help us assess various approaches for the closure plans at our remaining 10 North Carolina facilities,” said Elnitsky.”

Physical & Cyber Security, Extreme Weather Events

grid resiliency Sandy Critical infrastructure sees upgrades since Sandy devastation States and utilities have improved flood protection, more resistant residential, public services infrastructures and the power grid. #superstorm

NERC Beyond NERC: best practices for worst-case scenarios “Plan for recovery as well as prevention.” This is why we offer utilities Veracity Connect, a platform to source critical spares, like transformers, in North America #NERC #reliability #criticalasset

UtilityCoRecruit2.1013.large Winter utility assistance plans available “With the onset of colder weather in Northeast Ohio, several programs are offering financial assistance to customers who may have difficulty keeping up with the costs of their utilities.”  #utilities

Superstorm Sandy Remember Sandy: Two-Year Anniversary “Hurricane Sandy affected 24 states, including the entire eastern seaboard from Florida to Maine and west across the Appalachian Mountains to Michigan and Wisconsin, with particularly severe damage in New Jersey and New York.” #superstorm #hurricane #utilities

CPS-Energy-logo Municipally-owned CPS Energy putting San Antonio on the forefront of smart cities “The grid of the future will be more than a one-way delivery system for electricity. It will be a platform for information and services that we’ve barely begun to imagine,” said Doyle Beneby, CEO of CPS Energy. #smartcity

2000px-US_Department_of_Homeland_Security_Seal.svg #Cyber-attack causes major breach of software controlling critical U.S. infrastructure The malware [BlackEnergy], although not yet live, can activate anytime and leave these processes susceptible to failure or malfunctioning.

Big_Data-310x224 How four U.S. #utilities are tackling big data Utilities are well decided to start diving into big data. What will be the outcome? #bigdata

Security_Threat_Report U.S. Orders Electric Utilities to Secure Sites From Attack Physical #security is becoming a major concern for utilities and industry partners.

storm_arthur.jpg.size.xxlarge.letterbox Storm Hardening the Grid Are you ready for the coming #storms? We can help you with mutual aid agreements #utilities #mutualaid

604491_LIghtning-storm-in-Alberta-Canada In Orleans, no #storm but responders active Maximize your mutual aid agreements with Veracity Connect #mutualaid

North America Grid Weather Forecasts North America 2015 Temperatures above normal…which means more snow than usual! Turn your mutual aid agreement on with Veracity #mutualaid

Renewables & Smart Grid

Federal Energy Regulator Commission FERC: Renewables account for 40% of capacity additions this year “According to FERC, there are 62.3 GW of installed wind and another 9.74 GW of solar, but those make up less than 6% of total capacity. The bulk, some 42% of the total, is still gas-fired.” #renewable #utilities

renewables logo New Renewables Will Require #Transmission Upgrades “is it that simple?”

Solar panel installation Georgia is the nation’s fastest growing #solar market “Solar-related jobs in the state grew 225% last year”

Microgrid-global-view Are #Microgrids a Myth? Should utilities promote distributed energy resources?

wind turbine New analysis: U.S. is world’s number one #wind energy producer, leading China and Germany “Over $120 billion worth of U.S. wind projects have been installed since the year 2000.”

Word Cloud Smart Grid Smart Grid Networking, Communications Technologies Spending Expected to Total $30 Billion over Next 10 Years


Company NewsMutual AidAsset,Critical Spares Twitter Banner

Veracity is now a proud Silver Associate Member of the NRECA! Cooperatives are essential to the U.S. electric grid. We help coops source critical spares through the power of collaboration: +NRECA #coops #electricgrid

We are proud of being an associate member of the Michigan Municipal Electric Association! #electricity #collaboration

As a municipal utility or coop, become a Veracity Connect Member to source critical spares

We wouldn’t have been able to go to Georgia without the help of the #softlanding14 Program. Thanks to @CDMN for helping us #GrowGlobal


Recovering value from plant decommissioning? #decomissioning #powerplant #utilities #energy

Decommissioning Projects – Why it takes so long & costs so much: Share it & share your expertise!

Join the Investment Recovery Canada group and find opportunities for your Canadian company:

Turning your surplus equipment into a financial reward: this is called investment recovery:

Aging grid assets? How to know which equipment to replace and when Get some help from Veracity Connect:

#Asset Redeployment Checklist We assist you in choosing the best option for idle #equipment


Renewable or not, the energy you provide requires an emergency plan if a transformer fails:

We know what you go through as a utility company when you look for a spare transformer – Veracity Connect #utilities #power

Looking for #power transformers? Veracity Connect helps you get in touch with other #utilities, OEM & resellers

Don’t be left in the dark when a transformer failure occurs – Veracity Connect

Binder, spreadsheet, buddy system… you deserve better to source critical spares for your utility company. Contact us & Try Veracity Connect:

Our surplus utility equipment catalogue is now available! Check it regularly and contact us if you are interested in some of the featured items! #utility #surplus #powertransformer


A cloud platform that helps you source critical spares and reinforce your mutual aid agreement? It exists: Veracity Connect LinkedIn:

Transformer Fleet, Mutual Aid & Asset Disposition are components of Veracity Connect:

Are you a #utility? Have instant access to mutual aid contacts & resources with Veracity Connect


Join us on LinkedIn page We help #utilities source critical spares & maximize mutual aid

Why Using Spreadsheets is a Risk for Your Supply Chain #spreadsheet #supplychain

Subscribe to our Veracity’s monthly newsletter: Critical Spares Management & Investment Recovery for Utilities

 Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Stay updated through our social media platforms and our website:

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Asset Redeployment

Some of your assets are sitting in your warehouse, costing you more than what you think (ask your accountant!). Getting rid of it is a solution, redeploying the equipment to another company branch is an alternative to consider first.

The following checklist can help you ensure an effective redeployment:

Asset Redeployment Infographic Utilities

Go further

Collaborative economy and idle asset management: an environmental and financial reward

Investment Recovery: the Missing Link in the Supply Chain

Debunking 5 myths of Purchasing Reconditioned Electrical Assets – Infographic

Determine the best disposition solution for your surplus assets – Infographic

 Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Stay updated through our social media platforms and website:

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Decommissioning Projects: Why It Costs So Much

Plant decommissioning Energy Nuclear Oil Gas

If you like being up to date in terms of news in the energy sector, or if you live close to a power plant, you must have heard the word “decommissioning” more than once.


Decommissioning is the administrative and technical process to remove something from an active status (Wikipedia). Applied to industrial facilities, it means disabling and dismantling any active industrial units until no hazardous material or danger remain.

Decommissioning commonly concerns power plants, especially nuclear, pipelines, offshore rigs, tanker ships, military aircraft carriers and nuclear submarines. Nuclear decommissioning is the “process whereby a nuclear power plant site is dismantled to the point that it no longer requires measures for radiation protection” (Wikipedia). A more detailed definition can be found on the U.S. Nuclear Regulatory Commission website.

Regulation compliance

Decommissioning projects are submitted to strict regulations and standards, such as:

Offshore oil gas platform rig Veracity

Decommission Steps

These steps are based on a typical offshore rig decommission, but the general process can be applied to power plants, ships and submarines.

  1. Project management: review of contractual obligations, engineering analysis, operational planning, contracting.
  2. Engineering and planning.
  3. Permitting and regulatory compliance: consulting firms can assist in obtaining required licenses and permits.
  4. Facilities preparation: flushing and cleaning tanks and pipes, getting metal units ready to be lifted.
  5. Disabling industrial units.
  6. Equipment removal.
  7. Materials disposal and site clearance: these two final steps require pre-decommissioning and post decommissioning surveys, identification of debris which could interfere with dismantling operations, and test trawling to ensure that the area is free of debris and ready.
  8. Site release.

Nuclear plant decommissioningNuclear Plant Decommissioning

For nuclear plants, three methods are available:

  • Reactor dismantling and decontamination, allowing the land to be used again;
  • Safe storage: the plant is monitored and taken down once radiation has decayed;
  • Entombment: a coffin or dome made of concrete and steel is set on the radioactive components. The Tchernobyl nuclear plant is a typical example of entombment. The land can be used once radiation has decayed, which can take decades depending on the level of radiation.

Offshore rig decommissioning oil gasTime frame

Projects require several years, from assessing the need to decommission a power plant to dismantling the last industrial unit. For nuclear plants, it can take up to 60 years in case of safe storage or unlimited time if the site cannot be decontaminated.

Why decommissioning?

The main reason is financial. It is sometimes not worth economically to upgrade power plants, offshore oil platforms, tankers and nuclear submarines. Alternative technologies exist and may prevail over updating current facilities.

Safety will also lead companies and governments to close facilities. For nuclear plants, government commissions assign operation licenses for an average period of 40 years. Nevertheless it is common to extend the plant’s life to 60 years or more. Safety is a key reason, but is sometimes put aside for economic reasons.

Dismantling decommissioning industrial site plantWhat happens to removed equipment?

  • Working units are redeployed or sold as is, where is.
  • Metals are scrapped and recycled.
  • Hazardous substances are sent to specialized processing facilities to be reclaimed or decontaminated.

To learn more about disposition options, read our blog post about the 7 Ways To Dispose of Your Surplus Assets.

 How much does it cost?

Even though the operating company is required to set aside funds throughout the plant’s or industrial facilities’ operating lifetime, it is common to see costs increase step after step. The decommissioning cost sometimes exceeds the cost of the plant when it was purchased. The spent fuel –nuclear waste – is sent to specialized waste disposal facilities and buried underground. No methodology has been found to process such hazardous waste yet.

Veracity can assist your utility or industrial company retrieve value from idle or decommissioned equipment. We can help you implement a tailored investment recovery program which will free up money for your bottom line. According to the Investment Recovery Association, $1 put in the investment recovery brings at least $20 dollars back to the bottom line. This is no magic, but a combination of a dedicated and skilled team and an effective network.

Decommissioning Project ValueWe assist you in:

  • Setting/improving Policies and Procedures to manage the end of life cycle of corporate assets. This starts with a well-defined policy, asset release form and follows key procedures to maximize the asset disposition process with full audit trail that provides risk mitigation to avoid environmental liabilities.
  • Sending feet on the ground inventory teams that can efficiently capture asset data and catalog the assets to provide internal corporate wide visibility of available surplus.
  • Sending the surplus back to the market through our network with the purpose of maximizing the value you recover.
  • Developing scrap management protocols to maximize return on scrap as well as reduce corporate exposure to environmental liabilities.

Veracity Surplus Asset ManagementContact us at 866-694-1252 or We are located in Sault Ste. Marie, Ontario, with solutions available for the North American market. Visit our website at


Go further

Current Decommissioning Projects:

Exelon: Company dismantling Zion nuclear plant is running out of money

Entergy: $1.24B Is Needed to Decommission Vermont Yankee Nuclear

Letters: Good luck to Leshinskie on decommissioning of Vermont Yankee

San Onofre nuclear power plant dismantling will cost $4.4 billion, take 20 years

Chance for one last tour of Spondon’s Celanese factory before it is bulldozed

For offshore oil and gas decommissioning UK projects, you can check the Decommissioning Projects Index

Decommissioning a Nuclear Plant Can Cost $1 Billion and Take Decades

How Fukushima nuclear plant will be dismantled

Oil & Gas UK Decommissioning Insight 2013

Closing and Decommissioning Nuclear Power Reactors (2012)



Nuclear Decommissioning by Wikipedia –

U.S. Environmental Protection Agency –

Students’ Corner – Decommissioning, by theU.S. Nuclear Regulatory Commission –

How Does Decommissioning Work? by Rigzone –

Decommissioning Nuclear Power Plants, by the Nuclear Energy Institute –

Staff Responses Frequently Asked Questions Concerning Decommissioning of Nuclear Power Reactors –


Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Stay updated through our social media platforms and our website:

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October Digest

We hope you enjoyed a great Halloween weekend! October is already gone, but let’s take time to review the news and blog posts from this past month.

October Digest Utilities News Asset Management PowerBlog Posts

Veracity Is Part of the CDMN’s Outbound Soft Landing Program

Transformers: An Essential Link of the Electrical Grid

Energy & Utility Events Update

Why Using Spreadsheets is a Risk for Your Supply Chain

Your Veracity Connect Newsletter – Volume 6

Equipment Criticality


North America

Pacific Gas Electric Utilities PG&E and Florida Power & Light Sign Unique Cross-Continent Mutual Aid Agreement “To help ensure that extra resources are available to repair damage and restore service safely and more quickly following a widespread emergency, PG&E and FPL recently signed their first mutual aid agreement with another electric utility on the opposite side of the country.”

Power Transmission Utilities“Transforming the Grid: Top 5 States for Transmission Projects in 2015” by energyacuity

Duke Energy PowerDuke Energy set to auction off a million items from shuttered Crystal River nuclear plant “Need a giant heat exchanger that looks like giant pipes aboard a Navy ship — large enough for a grown man to crawl through?”

Environmental Protection AgencyUp or down? The impact of EPA’s Clean Power Plan on electric rates

Solar Flare EnergyT&D World compiled some of the best “Electricity Hoaxes, Rumors and Scams”

SaskPower Canada Energy GenerationSaskPower to cut ribbon on Boundary Dam carbon capture project “Billed by SaskPower as the world’s first and largest commercial-scale carbon capture operation of its kind, the project outfits part of the coal-fired power station with a mechanism to capture carbon dioxide emissions and transport the gas through a steel pipeline into storage deep underground.”

NationalGrid utilityNational Grid customers to see 37% higher rates this winter “the Massachusetts Department of Public Utilities (DPU) approved a rate increase for National Grid that will raise household customers’ bills by an average of $33.”

Federal Energy Regulator CommissionFERC, NERC Initiate Review of Electric Industry Recovery and Restoration Plans “The objective of the review is to support registered entities in ensuring reliable restoration of the bulk power system following a reliability event.” Veracity Connect can help source spare transformers quicker and for a better price:

NERCAre key NERC initiatives the missing link to reliability and cybersecurity? “NERC currently has two major initiatives under way in the reliability standards and enforcement areas to which electric industry participants should pay particular attention.”

Nuclear Power GenerationNuclear Matters warns about premature plant closings “The analysis reminds us of the very real impact that premature nuclear shutdowns can have” noted Nuclear Matters’ co-chair former Senator Judd Gregg (R-NH).”

Nuclear Power PlantNuclear operators seek to extend life of reactors to 80 years

RG&ERG&E Receives $2.8 Million from Federal Grant Program for Improvements at Hydroelectric Generating Station

Brookfield Renewable PowerBrookfield Renewable Power’s (Canada) CHP decommissioning “We’re hopeful that commercial considerations will improve and allow us to restart operations at some future point, but we do not have any such plans at this time.”


SiemensSiemens delivers switch panels worth €90m for GIS in Saudi Arabia “Siemens is to deliver 111 switch panels for installation in five gas-insulated high-voltage switchgear in Saudi Arabia’s northern Al-Jouf region. The order is worth €90 million.”

Distributed Energy ResourcesThe essential next step for distributed energy (a transparent market that includes end users) “Distributed Energy Resources, or DER, is a trend to watch. DER adoption across the country, and in hot spots like California and the North East in particular, is growing.”

Coal Plant EnergyNew report on rising coal plant retirements “approximately 13 percent of coal-fueled generating capacity has either been retired since 2012 or is planned for retirement by 2025, which surpasses the previous estimates in 2012.”

Power Transformer200 transformers distributed through southwest Nigeria where electricity supply is inadequate

Exelon Power GenerationExelon to add 2,000 megawatts of natural gas generation

ABB TransformerABB takes $30M Bangladesh power grid job “the country’s leading transmission utility, to provide four new turnkey substations and help expand six others, to help meet the growing demand for electricity.”

ABBABB: India a “dynamic market“ for power systems ““India is among the largest single markets for power systems,” global head of ABB’s power systems division, Claudio Facchin, said in an interview with Business Standard.”

Middle East PowerABB shifting attention from China to Middle East

EDF energy_RGB-exclusion-zone‘Go ahead’ for £16 billion nuclear power plant at Hinkley Point in Somerset “The environmental group’s legal adviser Andrea Carta said: “This is a world record sell-out to the nuclear industry at the expense of taxpayers and the environment.”


Power Gen InternationalPower-Gen Conference, Dec 9-11, 2014 – Orlando, FL – Will you go?

Procurement ProcessHow Technology Can Enable Decentralised Procurement “We now have the ability to monitor spend, reach out to suppliers globally through online RFP and manage supplier relationships through technology. Therefore, the theory goes, procurement activity can continue to be devolved while the information remains central.”

utilitiesUtilities Executive Forum and Roundtable: November 18-20, 2014

Transmission-and-Distribution-World-LogoTransmission & Distribution World October Issue!

Electrical Safety AuthorityHazardous Homes: The New Serious Game from the Electrical Safety Authority:

Startup UtilitiesHere’s Why You Should Consider Buying Enterprise Applications from a Start-up Startups offer “easy-to-use technology with relatively simple but powerful integration options.” Ours is Veracity Connect:


Company News

Michigan Municipal Electric AssociationWe are proud of being the new associate member of the Michigan Municipal Electric Association! Learn more about us:

Technology-Cloud-Computing-Energy-Savings-in-the-Cloud-IISUse the Cloud to Efficiently Source Critical Spares – Veracity Connect

North American Rural Electric Cooperative AssociationRevolutionizing the way Rural Electric Cooperatives approach Critical Spares Management:

Investment RecoveryWhat we do for our Clients: Investment Recovery & Critical Spares Management

Google+ CircleGoogle+ is more than a SEO tool. This is an easy way to stay in touch with our company:

NERCBeyond NERC: best practices for worst-case scenarios Plan for recovery as well as prevention

Decommissioning PlantRecovering value from a plant decommissioning? Learn more about one of the projects we carried out for one of our clients: Decommissioning can also be a rewarding process in the frame of an effective surplus asset management program.

Critical Spares Transformer 10 MVAAre you a Utility company? Leverage a pool of Critical Spares through the Power of Collaboration – Veracity Connect

Surplus Assets Did you know that 2% to 5% of a company’s entire assets are considered as idle or surplus?

UtilitiesUtilities, are you ready for the worst? Source critical spare equipment via Veracity Connect!

Rural Electric CooperativeRevolutionizing the way Rural Electric Cooperatives approach Critical Spares Management:

Transformer Failure Fire Veracity Asset Management Transformer leaking PCB for 7 yrs utilities we can help you properly dispose of idle equipment

aging infrastructure transformerAging grid assets? How to know which equipment to replace and when Get some help from Veracity Connect:

Critical Spare Parts VeracityDoes it take too long to source critical spares like transformers? We can help you – Veracity Connect

Veracity Connect Asset Management UtilitiesWe specialize in critical spares management and asset disposition. We help companies such as utilities on a daily basis to source or dispose of critical equipment.

Contact us at 866-694-1252 or We are located in Sault Ste. Marie, Ontario, with solutions available for the North American market.

Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Stay updated through our social media platforms and our website:

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Investment Recovery: the Missing Link in the Supply Chain

Investment Recovery Veracity Asset Management UtilitiesInvestment Recovery (IR), also called Surplus Asset Management, is defined as the practice of recovering the highest value of assets considered as surplus or no longer supporting the company’s operations. IR is does not appear in Michael Porter’ s Value Chain model, as this analysis focuses on one-way activities, from procurement and inbound logistics to the sales and service activities. For a reminder, Michael Porter, Harvard Business School Professor, identified in  model the activities that create value for the company. These activities are categorized in primary activities and support activities in Porter’s model:

Michael Porter Value Chain Surplus Asset Management Investment Recovery

IR professionals consider their activity as the missing link of this value chain model by recovering the value of unused assets.

Through its primary and support activities, a company will buy assets, such as industrial equipment, fleet vehicles and other materials, with the ultimate goal to maintain and/or increase its margin. The procurement manager plays a key role in acquiring these items at the best rate and quality.

At a certain time, the company will change its equipment, fleet or other critical assets. We often forget what happens to this piece equipment no longer in use. The first reflex will be to either park it in the warehouse (high holding costs!), or if it is considered as obsolete, in the laydown yard, or worse, in the landfills. The company may not be aware of the intrinsic value of these idle assets.

IR professionals aim at recovering this hidden value that these assets represent. The support activity of procurement can be actually turned into a complementary financial stream for the company. The return can be surprisingly high. The last studies from Center for Advanced Purchasing Studies or Arizona University show that $1 spent in the investment recovery process at least brings $20 back to the bottom line, in terms of cost avoidance, cost reduction, employee productivity and proceeds of sales.

Surplus Asset Managers bring to their clients transparency and legibility of surplus assets through efficient practices. After identifying and evaluating the assets, the IR professionals and the company will choose the best option for each of them, with a clear audit trail.

These options are:

  • Redeploying the asset to another branch of the company, avoiding the cost of purchasing a new unit;
  • Marketing and selling it;
  • Scrapping it;
  • Donate it;
  • And if any of these disposition methodologies cannot be applied, the asset is sent to a waste management company with the priority of preventing negative environmental impacts.

Learn more about these methodologies options: 7 Ways to Dispose of Your Surplus Equipment

A company that has a solid IR program will distinguish itself from its competitors, as the costs are better controlled, revenues from idle assets are maximized and environmental and corporate exposure risks are mitigated.

Explore our website Veracity Surplus Asset Management and our LinkedIn page: Veracity LinkedIn

We will be glad to connect with you on Google+ and Twitter. Share your feedback and questions!

Veracity Asset Management Google plus Veracity Twitter

Value Chain Model from

Collaborative Economy & Asset Management: an Environmental and Financial Reward

In the article “Zero Marginal Cost Society: Unlocking Wealth & Cities Too, But Beware the Regulatory Wrinkles”*, April Rinne, Chief Strategy Officer at Collaborative Lab, explains what collaborative economy is, a philosophy shared by Veracity Asset Management Group.

What is “Collaborative Economy”?

Collaborative economy is clearly not just a trend. New business models “promote more efficient utilization of resources”. Reducing purchasing costs in the supply chain is what every business is looking for. Sustainability and environmental risks are becoming a key factor that influences business decisions. But how can we reconcile bottom line and reduced impact on the environment?

Surplus asset management Veracity

Among several opportunities, such as crowd-funded projects and car-sharing, managing idle assets is a rewarding way for companies and public organizations to give a new life to idle equipment and material, and turn them into a new financial stream. Cost reduction and cost avoidance become easily possible, as it costs less to buy a piece of equipment, used, but in good shape and reliable, than to buy a brand new unit for a high price.

Surplus Asset Management

This is why we can link the “collaborative economy” concept with Veracity’s business core: surplus asset management and critical spares management. A key principle of surplus asset management, or “investment recovery”, is the 7 R’s: Reuse, Recondition, Return, Re-sell, Reclaim, Recycle and Remove. The same way we go through our garage and decide to reuse, sell, give or recycle our old DVD players or skates, managing idle assets is relatively similar for a private company or a municipality.

Collaborative economy Veracity asset management group

In the frame of an Investment Recovery program, our Veracity Team can help your company successfully identify, evaluate and choose the right disposition solution for each asset. Let’s say that you have surplus equipment in your warehouse. The holding costs are high and you look for a complementary financial stream. Veracity helps connect the dots, analyze and offer the best options for each idle asset. It can be redeployed to another company branch that needs them, avoiding the cost of buying a new unit. Or it can be sold in an efficient manner to maximize your return, or recycled, avoiding ending up in the landfills.

Think about your idle assets and their hidden value. Contact us at +1-866-694-1252 or, and find out how we can help you unlock their true potential!

Also check our website for more information about our investment recovery services!


Key Points From The Latest Issue of Asset 2.0, “The Investment Recovery Business Journal”

  • Like any other business, creating an investment recovery (IR) department requires a solid business plan. Day-to-day operations may work for sometimes, but in the long-run, everything may fall apart if nothing is planned.

Asset 2.0 Investment Recovery Association Veracity Asset Management Group                “Investment Recovery professionals are trained to handle an assortment of products and look for the best method to dispose of an asset for a company. When utilized, the IR professional will ensure that a company’s return on investment and total cost/benefit are maximized by evaluating what is the best way for a company to remove an asset. Many times, however, the IR professional is bypassed and others take on the IR role who aren’t trained, oftentimes looking at retired assets as an afterthought and just something to get rid of. This duplicative effort exposes the company to unnecessary risk and loss on investment that the IR professional reduces and eliminates.”

“Look upon your IR function as a separate business. As with any business, you are much more likely to succeed if you do the following: Have a plan, work your plan, review your progress, refine your approach. Be especially honest about your situation, your capabilities and your potential for improvement with yourself and your team. And don’t ever lose sight of the critical foundation for building your successful business … long-term client trust and satisfaction.”

  • Is video a good way to advertise the surplus assets you are trying to sell? The answer is yes. Using pictures is a must when you want to reach potential clients. But Youtube videos are more and more used and well appreciated by companies, as they are not expensive, efficient and help customers have a better idea of the conditions the assets are in and may answer many of their questions. The video can be linked to the auction catalog and boosts its reach.
  • How does your investment recovery department align? Survey results carried out by the Investment Recovery Association bring 3 statements. It is common for IR departments to handle fleet transactions. IR departments tend to manage “all” IR functions: large equipment, smaller items, scrap and other salvage projects, sometimes with the help of a third party. The IR departments often get involved in decommissioning and demolitions for their business. “Unless you’re an IR professional, the IR work is a process considered more a secondary task to your core duties and many times results in poor business decisions being made on IR activities.” This is why numerous companies choose to work with an external IR partner, such as our company Veracity.
  • “Data is King when Selling Fleet Vehicles”. Data is key when you want to sell fleet vehicles. Information needs to be accurate and offered along with pictures. “When we as buyers have two identical units to choose from, we are always going to pay more for the unit that has the best description and photos, just like any buyer in the market for a used car would.” The more information the customer has, the better he/she is ready to make a decision in your favour. We can mention for example make, model, age, condition, mileage, condition, additional equipment and location. Vehicles tend to be sold online, more than at traditional auctions, as customers have a better access to uniform information.
  • What do companies do with extra “Maintenance, Repair and Operating Parts” (MRO)? These parts help the facility running, such as light bulbs, bolts and motors. Managing inventory helps provide the right parts at the right time, and with a minimal cost. But, “of the $100 billion worth of parts purchased in 2012, approximately 15% of that inventory will remain on the shelves and potentially never get used.” The following questions need then to be asked: “Are we sure we cannot use it here?”, “Can any of our other sites use this material?” and “Can I sell it back to the Original Equipment Manufacturer that I bought these from?”. There are several options that can be chosen to recover value from these items, such as redeploying them, returning them or reselling them. Learn more about the whole range of investment recovery solutions through this blog post:

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Explore the Investment Recovery Canada LinkedIn Group and share your thoughtsInvestment Recovery Canada Veracity Asset Management Group

Learn more about our investment recovery services and surplus asset disposition solutions:Veracity Asset Management Group

Or contact us at 1-866-694-1252 or! We will be glad to answer all your questions and see how your company can get the most of its surplus.

June Digest – Time to Catch Up!

Summer is here, but it does not mean that the energy sector is on holidays!

Catch up on what happened with our June Digest.June Digest Veracity Asset Management GroupUtilities Standards Forum Veracity Asset Management GroupVeracity Asset Management Group introduced Veracity Connect to the Utilities Standards Forum Members.

 ISO14001 Veracity Asset ManagementThe new standard ISO14001 is to be drafted this year and released in 2015. What will be the impact on companies, their supply chain and their sustainability practices?

Veracity Asset Disposition ManagementFind out how the 7 ways to dispose of your surplus equipment can help your company maximize the value of these assets:

Veracity Connect Critical SparesCritical spares in the utility industry? Get a better idea with this infographic:

Veracity Newsletter Investment Recovery Critical SparesIn your mail box: Veracity Connect June newsletter. Reconditioning as an investment recovery method, our clients’ feedback and corporate sustainability are on the menu.

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Large Power Transformers and The U.S. Electric Grid Veracity Critical SparesThe “Large Power Transformers and the U.S. Electric Grid” report was released last April. Here are the 9 key facts which explain why large power transformers are critical to the US energy sector.

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In Your Mail Box: Veracity Connect June Newsletter

Veracity Connect Newsletter Investment Recovery

Our June Newsletter is out! This month, we zoom on:

  • The 7 R’s of Investment Recovery – “Recondition”
  • Veracity Connect presented to the Utilities Standards Forum Members
  • Your Feedback about our services!
  • Investment Recovery & Corporate Sustainability
  • The Value of Critical Spares
  • Veracity at the EDA Commercial Steering Committee

Click here or on the mail to see the full newsletter:

Veracity Newsletter Investment Recovery Critical Spares

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