Utilities News Roundup! November – December


Southern_California_Edison_(logo) Panel hears bids for storage of nuclear waste http://ow.ly/DoyRO “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 http://ow.ly/Dqile #nucleardecommission

nuclear-power-plant End Of Life Costs For #Nuclear Power A Real Concern http://ow.ly/Et9EM 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 http://ow.ly/DpSIs #IOU #utility

Hydroone Hydro One Invests to Refurbish Ontario Michigan Interconnection Transmission Circuit http://ow.ly/Dq9Bm “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 http://ow.ly/DpWRm #Massachusetts #energy #utilities

LG&E Kentucky PPL Companies LG&E, Kentucky Utilities to add up to 737MW of gas generation http://ow.ly/Dq36g #Kentucky #gasplant

utilities2 Old Is New Again in the Utility Industry http://ow.ly/DKPto #utility #power

mega power plant Infographic: The World’s Ten Largest Power Plants http://ow.ly/DL2gx “with the top 5 located in China and South America.” #powerplant #China

NERC NERC troubled about EPA Clean Power Plan impact on grid reliability http://ow.ly/E4p0E “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 http://ow.ly/E4qTs “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 http://ow.ly/E8qyK “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 http://ow.ly/E8sQ0 “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? http://ow.ly/E8z6L #Michigan #powergeneration

BChydro BC Hydro, LNG Canada sign #power deal; project still not official http://ow.ly/ESoMa “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 http://ow.ly/ESfLD #Albertaoilsands

Federal Energy Regulator Commission FERC issues decision on Duke-Progress merger…after three years http://ow.ly/ESt1X #power

opower_s Opower, FirstFuel partnership yields ‘major expansion’ with #utility customer http://ow.ly/Et5n5 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 http://ow.ly/EtBTL “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 http://ow.ly/EtIA2 average increase of 1.9 %



Coal Plant Energy Coal gets cold shoulder from Denmark and Germany http://ow.ly/DK9kV “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 http://ow.ly/E8wVo Capacity of 215 MW, €315M

map-oman #Oman Enhances #Power Delivery http://ow.ly/ESPHZ 6 new substations will be commissioned to answer electric demand

Rosatom Dhaka, Moscow finalise action plan for Rooppur #nuclear power plant http://ow.ly/EtHlN #Russia

Radioactive California Fukushima Traces of #Fukushima Radiation Detected Off #California Coast http://ow.ly/EuqzU A priori no harm

duke-energy-co-logo Duke Energy announces plans to begin removing #coal ash from four North Carolina sites http://ow.ly/EuCoq ““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 http://ow.ly/DoLvU 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 http://ow.ly/CcjdB “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 http://ow.ly/DK3B9 “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 http://ow.ly/DKW78 “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 http://ow.ly/E8myQ “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 http://ow.ly/E8tIG 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 http://ow.ly/ERh8D 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 http://ow.ly/ERay7 Physical #security is becoming a major concern for utilities and industry partners.

storm_arthur.jpg.size.xxlarge.letterbox Storm Hardening the Grid http://ow.ly/E8jhM Are you ready for the coming #storms? We can help you with mutual aid agreements http://ow.ly/E8juF #utilities #mutualaid

604491_LIghtning-storm-in-Alberta-Canada In Orleans, no #storm but responders active http://ow.ly/ERxlS Maximize your mutual aid agreements with Veracity Connect http://ow.ly/ERxHq #mutualaid

North America Grid Weather Forecasts North America 2015 http://ow.ly/ESRxQ Temperatures above normal…which means more snow than usual! Turn your mutual aid agreement on with Veracity http://ow.ly/EucON #mutualaid

Renewables & Smart Grid

Federal Energy Regulator Commission FERC: Renewables account for 40% of capacity additions this year http://ow.ly/DtaYY “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 http://ow.ly/DpMzS “is it that simple?”

Solar panel installation Georgia is the nation’s fastest growing #solar market http://ow.ly/ERMAn “Solar-related jobs in the state grew 225% last year”

Microgrid-global-view Are #Microgrids a Myth? http://ow.ly/ESOoF Should utilities promote distributed energy resources?

wind turbine New analysis: U.S. is world’s number one #wind energy producer, leading China and Germany http://ow.ly/ExvpS “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 http://ow.ly/advanced


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: http://ow.ly/Dx7Hp +NRECA #coops #electricgrid

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

As a municipal utility or coop, become a Veracity Connect Member to source critical spares http://ow.ly/i/7nB9u http://ow.ly/DtMxC

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? http://ow.ly/xjC1d #decomissioning #powerplant #utilities #energy http://ow.ly/i/79MkB

Decommissioning Projects – Why it takes so long & costs so much: http://wp.me/p2EjZw-7I Share it & share your expertise!

Join the Investment Recovery Canada group and find opportunities for your Canadian company: http://ow.ly/zymGu http://ow.ly/i/7nCOH

Turning your surplus equipment into a financial reward: this is called investment recovery: http://ow.ly/yzrN7 http://ow.ly/i/641yF

Aging grid assets? How to know which equipment to replace and when http://ow.ly/D3B4M Get some help from Veracity Connect: http://ow.ly/D3C2m

#Asset Redeployment Checklist http://wp.me/p2EjZw-8S We assist you in choosing the best option for idle #equipment http://ow.ly/EVCgb


Renewable or not, the energy you provide requires an emergency plan if a transformer fails: http://ow.ly/BZJ7k http://ow.ly/i/7nBT6

We know what you go through as a utility company when you look for a spare transformer – Veracity Connect http://ow.ly/BZJ7k #utilities #power http://ow.ly/i/7nByl

Looking for #power transformers? Veracity Connect helps you get in touch with other #utilities, OEM & resellers http://ow.ly/DOC9S

Don’t be left in the dark when a transformer failure occurs – Veracity Connect http://ow.ly/BZJ7k http://ow.ly/i/

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

Our surplus utility equipment catalogue is now available! http://ow.ly/DLcVN 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 http://ow.ly/Aua0t LinkedIn: http://ow.ly/AuacD

Transformer Fleet, Mutual Aid & Asset Disposition are components of Veracity Connect: http://ow.ly/ET0a7 http://ow.ly/i/7Invt

Are you a #utility? Have instant access to mutual aid contacts & resources with Veracity Connect http://ow.ly/ExDtr


Join us on LinkedIn page http://ow.ly/ET5kW We help #utilities source critical spares & maximize mutual aid http://ow.ly/ET5kX

Why Using Spreadsheets is a Risk for Your Supply Chain http://wp.me/p2EjZw-76 #spreadsheet #supplychain http://ow.ly/i/7jbDs

Subscribe to our Veracity’s monthly newsletter: Critical Spares Management & Investment Recovery for Utilities http://eepurl.com/LVtY1 http://ow.ly/i/73Jj2

 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!

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High-Impact, Low-Frequency Event Risk to the North American Bulk Power System

High Impact Low Frequency Event Risk North America NERC VeracityEven though the report “High-Impact, Low-Frequency Event Risk to the North American Bulk Power System” from the North American Electric Reliability Corporation (NERC) and the U.S. Department of Energy (DOE) was released in 2010, its content is still valuable in 2014 as the utility sector is well determined to strengthen its electric infrastructure against high-impact events. The NERC and DOE have given guidelines which are slowly being implemented.

All the quotes are from the report.The full report can be accessed here.

Do not miss our resources blog section to find other relevant reports from the electric utility industry: Veracity Resources Utilities ReportsDefinition

High-Impact, Low-Frequency (HILF) events are “coordinated cyber, physical […] attacks, […] nuclear weapon, and major natural disasters” such as hurricanes, earthquakes, tsunami, pandemics and geomagnetic disturbances.

Their frequency is extremely low, but they have an impact at the regional, national or international level. Power generation, transmission and distribution, as well as health, transportation and other key sectors can easily be paralyzed.

The U.S. Department of Energy and the North American Electric Reliability Corporation have made grid resiliency a priority, with a focus on large equipment, such as power transformers.

“Today, the government and industry must recommit themselves to supporting one another to enhance the protection, resiliency, and response capabilities for the North American bulk power system in the face of these rare events.”

Mitigating such risks requires balanced investments between protection of the facilities, restoration plans and resilience efforts, as well as simply raising utilities’, industry partners’ and end users’ awareness.

Common Characteristics

  • Can occur very quickly with little warning;
  • Cause widespread impact to the sector (human and/or physical);
  • Originate from external sources outside of control;
  • Limits the extent of proactive measure;
  • Operational experience is still little.


3 types of High-Impact Low-Frequency risks

  • Coordinated Attack Risk such as cyber and/or physical attack: “The specific concern with respect to these threats is the targeting of multiple key nodes on the system that, if damaged, destroyed, or interrupted in a coordinated fashion, could bring the system outside the protection provided by traditional planning and operating criteria.” Thus the NERC has developed Critical Infrastructure Protection standards.Coordinated Attack Risk Utility
  • Pandemic Risk: “The principal vulnerability with respect to a pandemic is the loss of staff critical to operating the electric power system.” The lack of qualified personnel would slow down operations and increase risks of failure. But the impact on the power supply is recognized as minor, as the resolution of this type of issues mainly relies on health authorities.
  • Geomagnetic/Electromagnetic Disturbances: caused by the solar weather, they can affect the transmission lines and large transformers. Certain areas are more affected than others. (MAP) The 1989 blackout of Hydro Québec was due to such a electromagnetic disturbance. This event led to new operational procedures for utilities whose substations are located in areas at risk.

Geomagnetic Disturbances***


The North American Electric Reliability Corporation and the U.S. Department of Energy have given guidelines to face such events:

Coordinated Attack Risk
  • Collaboration between U.S. and Canada with direct lines of communication and coordination with the electric sector.
  • Use scenario-based models for analysis, plans and procedures for restoration
  • Evaluation of the efficacy of current bulk power system planning and practices to improve the efficacy.
  • Implementation of restoration and recovery plans.
  • Increase security clearances.
  • Input from stakeholders, government and sector partners to identify areas of improvement and additional costs.
  • Improve the current spare equipment efforts for scarce/long-procurement-cycle assets, identification of inventory of critical spares.
  • Optimize the supply chain in terms of high-impact system components.
  • Develop a lexicon of cyber and physical attack risk terms to ensure clear communication
  • Encourage the development of technological and software solutions for network security tools.
Pandemic RiskPandemic Risks
  • Incorporate previous pandemic crisis (A/H1N1) into current pandemic and business continuity plans.
  • Collaboration between NERC, Federal Electric Reliability Corporation (FERC) and state regulators through the National Association of Regulatory Utility Commissioners (NARUC), and the Federal Emergency Management Agency (FEMA) and all other involved entities.
  • Improve timeliness, granularity and quality of metrics used to measure and report on the emergence and spread of pandemic vectors.
  • Give U.S. and Canada health, transportation and utility services employees from critical sectors priority to access vaccines and travel.
Geomagnetic Disturbances, High Altitude Electromagnetic Pulse Events, Intentional Electromagnetic Interference ThreatsGeomagnetic Risks
  • Assess electromagnetic threats and initiate restoration plans.
  • Support industry efforts.
  • Design a road map for long-term research.



This report brings up the following questions:

  • How much risk is the private sector willing to accept?
  • How much risk is the public sector willing to accept?
  • How much are consumers (or society at large) willing to pay to reduce this risk?
  • Who makes the determination for society’s tolerance for risk and the cost of employing protections?
  • How should the costs of employing protections be paid for?
  • How is damage measured: cost to replace damaged equipment, number of people-hours without power, number of other critical infrastructure nodes affected?
  • Where are interdependencies most critical?


Go further

The following blog posts can help you learn more about critical equipment and grid resilience:

Equipment Criticality

Transformers: An Essential Link of the Electrical Grid

The Transformer Problem

Key points from “Economic Benefits of Increasing Electric Grid Resilience to Weather Outages”

9 Key Facts from the “Large Power Transformers and the U.S. Electric Grid” Study

Critical Spares Infographic

Your Veracity Connect Newsletter – Volume 6


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, maximize your mutual aid efforts!

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

The Canadian Digital Media Network (CDMN), a federal Centre of Excellence in Commercialization and Research, is dedicated to establishing Canada as a world leader in digital media (ICT + mobile) by creating and enabling connections and collaboration between entrepreneurs, companies, research institutes, government and intermediary organizations across the country. CDMN helps bring more digital media solutions to market to create more companies, jobs and wealth in Canada.
With a worldwide network, CDMN guide startup companies target new markets.

Veracity Asset Management Group (www.veracityamg.com) participates in the Canadian Digital Media Network’s Outbound Soft-Landing Fall 2014 Program to help forge the partnerships and connections with utilities it needs for its expansion across North America. Georgia, Alabama, Florida and North Carolina are some of the States targeted by Veracity through its Soft-Landing trip.

CDMN Press Release

Outbound Soft Landing program announces fall cohort, with new support from TD

By Emmett O’Kane on Sep 26, 2014 / Categories: CDMN News, Featured, Soft LandingFifteen Canadian companies have been selected to participate in the Canadian Digital Media Network’s outbound Soft Landing program this fall, and they’ll have a new supporter in their corner.TD Bank Group, North America’s sixth largest bank by branches, has partnered with the CDMN to help small- to medium-sized enterprises pursue growth in international markets.“‎TD is very pleased to be supporting the Canadian Digital Media Network Outbound Soft Landing program, which provides funding to promising startups selected by the CDMN, in order to promote their growth opportunities abroad,” said Jeff Martin, SVP & CIO Digital Channels Technology Solutions, TD Bank Group.Companies selected will receive up to $4,000 towards travel costs and a free working space at partnered locations abroad for up to three months, to help them expand into new markets and develop relationships with key contacts in targeted economies.The Fall 2014 companies are:

Plasticity Labs

Landing: U.S. (Las Vegas)

Plasticity is building the happiest workforces every day, through an integrated mobile and web app that changes how organizations measure, manage and stimulate positive workplace culture. Its mission is to improve the experience of life, and work, for millions of people and the organizations where they work. http://www.plasticitylabs.com/

Maerospace Corp.

Landing: India

Maerospace’s mission is to improve the world through the mastery of data. Working with some of the world’s most advanced companies and nations, Maerospace turns complex data into actionable information to make missions safer, borders more secure, environmental responses more effective and companies more profitable. http://www.maerospace.com/

Slimcut Media

Landing: U.S. (New York City)

Slimcut Media helps digital publishers increase their revenue while engaging their audiences. With offices in Toronto and Paris, their platform combines a reward program, targeted video advertising and a payment system to build a symbiotic relationship between publishers and their audiences. http://www.slimcutmedia.com/


Landing: Australia

blueRover provides a unique and advanced technology platform that offers businesses employing machine-to-machine (M2M) applications access to infinite, data-driven intelligence about their assets. With blueRover, customers can monitor, track and react to real-time data about their assets and resources from anywhere around the globe. http://www.bluerover.ca/


Landing: U.S. (Orlando; Dallas; Charlotte)

Bonfire prides itself on making the easiest, simplest and friendliest way for purchasers to accept and evaluate supplier proposals, tenders, quotes as part of RFx (request for information, proposal or quotation), bid projects and more. The Waterloo-based company is already trusted with over $1 billion in procurement projects with much more to come. http://www.gobonfire.com/

I Think Security

Landing: Hong Kong

I Think Security Ltd. is an award-winning R&D security lab that provides secure solutions for data, cloud and mobile. Supported by sophisticated analytics and control, and leveraging existing local infrastructure, I Think Security Ltd. products are backed by a team of security professionals experienced in designing and implementing the highest in advanced security. Its technologies are used in data protection to prevent cyber attacks, corporate espionage and insider threats. http://www.ithinksecurity.com/

Analyze Re Inc.

Landing: London, CTA@UK

Analyze Re provides pricing and risk management software for the reinsurance industry. Their innovative SaaS platform employs high-performance computing and big data analysis to unlock a holistic view of risk, enabling reinsurers to make smarter decisions, minimize their risk and maximize their profits in real time. http://www.analyzere.com/

REfficient Inc.

Landing: Mexico

REfficient.com is a matchmaking site connecting “who has what” and “who is looking for what.” Its online marketplace allows companies to buy quality Telecom, A/V and IT equipment at significant discounts from sustainable sources. REfficient shows customers that they can drive financial results while doing something good for the environment. http://www.refficient.com/

ProjectSpeaker Inc.

Landing: London; Munich; Venice

ProjectSpeaker turns event planners into event heroes. Their platform is a curated event planner resource of the world’s leading speakers, speakers bureaus and event suppliers that allows planners to be more efficient and successful in finding the best speakers for their events. http://www.projectspeaker.com/

MetricAid Inc.

Landing: U.S. (Philadelphia)

MetricAid provides browser-based technology, analysis and consultation services to improve hospital emergency department efficiency. Its goal is to improve the satisfaction of the patient, the experience of the physician and the effectiveness of the emergency department. http://www.metricaid.com/

District M Inc.

Landing: U.S. (New York City; Florida)

District M is a digital technology company that specializes in unique campaign management. Its exclusive and proprietary advertising technology segments data and user profiles, giving clients the ability to reach diverse and specific audiences at the right time. http://www.districtm.ca/

Veracity Asset Management Group

Landing: U.S (Georgia; Florida; Alabama; North Carolina)

Veracity Asset Management Group works with organizations across various industries to develop policies and procedures to maximize asset utilization. Veracity provides software solutions and services that enable its customers to purchase, manage and dispose of surplus assets, allowing organizations to focus on core business issues. http://www.veracityamg.com/


Landing: U.S. (California)

LemonFree.com is a fresh and simple approach to shopping for cars online. Launched in 2007 by three Winnipeg entrepreneurs, LemonFree.com is an online automotive shopping and research marketplace with the mission to become the most trusted place to shop for a car. http://www.lemonfree.com/

INETCO Systems Ltd.

Landing: London, CTA@UK

INETCO Systems offers real-time transaction monitoring and analytics software that isolates IT performance issues affecting ATM, POS, Mobile Banking and Internet Banking transactions. In addition to software, INETCO offers consulting in APM, Business Transaction Management analytics reporting, and configuration services. http://www.inetco.com/

Energy Aware Technology Inc.

Landing: U.S. (Silicon Valley)

Founded in 2005, Energy Aware Technology is a leading developer of demand management solutions for utilities and aims to improve awareness of the ways we use energy, enabling us to reduce waste, save money and become more sustainable. By analyzing energy consumption data and displaying it in a concise, useful manner, people more fully understand their energy use and how to save money. This is how Energy Aware is creating smarter, more sustainable homes. http://www.energy-aware.com/

© 2014 CDMN. All rights reserved. Contact CDMN at info@cdmn.ca for permission to reproduce in any way.”

Learn more about our Critical Spares Management Solution for Utilities: Veracity Connect, collaborative platform

Don’t miss a chance to get in touch with us by calling us at 866-694-1252 or info@veracityamg.com. Find out how we can help your utility company source critical spares.

Visit our website veracityamg.com, our blog http://wordpress.veracityamg.com and our social media platform:

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Equipment Criticality

Equipment Criticality Utilities Asset ManagementWhat is Criticality?

Criticality is the quality or state of being of the highest importance. When it comes to industrial equipment, criticality focuses on the “business financial impact if an equipment failure was to happen”, according to Lifetime Reliability. Lifetime Reliability is an Australian consulting firm specialized in industrial business process optimization, reliability maintenance management and life cycle asset management.

The risk rating indicator can be calculated as followed:

Equipment Criticality = Failure Frequency (per year) x Cost Consequence ($) = Risk (in $ per year).

Cost Consequence usually includes the cost of lost production and what it takes to repair the equipment.

Why Determining the Criticality Level?

Heavy pieces of equipment, such as power transformers or industrial machinery, belong to the “low-risk, high-impact” category. Even though failure risks are low, the consequences on the company’s operations are significant.

Knowing when such a failure would occur and how much it would cost to fix it or replace it greatly helps planning operations.

If equipment is then known for a high-risk profile, the company can set “resources, engineering effort, operations practices, maintenance and training” to reduce the risks. The action plan should be the verso of its product sheet: you know the potential problems, you know what to do.

The criticality assessment should logically be led by an experimented team. For a further detailed assessment of the criticality level of equipment, the model Defect and Failure True (DAFT) Costs can be used. A DAFT database is developed in a spreadsheet database (if you have software better than Excel, use it!).

Assessment Team

Let’s focus on the team who will assess your equipment’s criticality. They should know:

  • the design, and how to operate and maintain the equipment;
  • the impact of equipment failure on the production;
  • the financial loss for the company due to a production interruption, and on the clients;
  • They should use all information available from the upper level and workers in order to determine an accurate and up-to-date equipment profile.
  • In the frame of implementing a risk control methodology, they should be familiar with international risk management standards, ISO 31000 being the most common.

One more time, knowledge is power. With a dedicated team and allotted time, assessing the risk profile of your heavy equipment will become a real asset, saving you costs and time in the long-run.


Risk Matrix

Lifetime Reliability has designed a series of matrices which helps determine the potential consequences, the failure frequency, the risk identification and assessment and the risk treatment schedule and action plan. Clear and easy to use, they can be the basis of risk assessment.

Business-Wide Consequence

Equipment Criticality ConsequenceThe additional factors can help determine the consequences:

  • Type of industry
  • Lack of equipment standardization
  • Service level and required time
  • Availability of spares and investment
  • Avoiding “just-in-case” model
  • Supply chain network
  • Logistics
  • Available qualified personnel
  • Holistic approach, strong communication and cooperation between operations, purchasing and executive teams.

Historical Frequency

Equipment Criticality Frequency Asset UtilitiesRisk Identification and Assessment

Equipment Criticality Risk Identification Utilities AssetRisk Treatment Schedule and Action Plan

Equipment Criticality Risk Treatment Action Plan Utilities Asset


Let’s talk about YOUR equipment. The following questions can be asked:

  1. Do you know the risk profiles?
  2. Does your equipment belong to the low-frequency/high-power category?
  3. What would happen if a failure occurs and requires the replacement of the unit?
  4. How difficult is it to source a replacement?
  5. Do you use a buddy system (numerous phone calls, emails to your colleagues or acquaintances) which proves to be not so effective?
  6. Would you accept the help from a specialized third-party like Veracity Asset Management Group?

We specialize in critical spares management and asset disposition. We help companies like utilities on a daily basis to source or dispose of critical equipment.

Contact us at 866-694-1252 or info@veracityamg.com. 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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Go further:

6 Tips to Improve Your Spare Parts Management

The Management of Critical Spares in the Electric & Gas Utility Industry

Strategic Asset Management

Veracity Connect: Critical Asset Management Solution

Equipment Criticality Tutorial, by Lifetime Reliability – Solutions

Your Veracity Connect Newsletter – Volume 6

Veracity Connect Utility Critical AssetTransformer Problem Veracity Connect WillisThe Transformer Problem

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.

Learn more at www.veracityamg.com. Contact us today at 866-694-1252 or info@veracityamg.com to become a Veracity Connect Member.

Veracity Connect Asset Management UtilitiesVeracity Connect: Your Critical Spares Management Solution

  • 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

Contact us now to become a Veracity Connect Member!

A glimpse of the assets we manage for our clients:

  • Substation transformers
  • Pad mount transformers
  • Pole mount transformers
  • Switchgear
  • 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

Vivix LED Street Lights Contact us now at 866-694-1252 or info@veracityamg.com

Veracity Asset Disposition ManagementThe 7 R’s of Investment Recovery

 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.

We’re one of the 15 Canadian companies CDMN

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: Veracity Connect, collaborative platformMake electrical equipment procurement easy and efficient. Locate a matching power transformer before a failure occurs!

Transformers: An Essential Link of the Electrical Grid

Sourcing Transformers UtilitiesLook through your office or home window. If you can see a power line, there are chances a power transformer may be in the area.

What does a transformer actually do?

These heavy pieces of equipment transform the voltage of electricity, either stepping it up for transmission lines to carry electricity from power plants over long distances; or stepping it down to carry electricity to residential and commercial areas. The large power transformers (LPTs), located in substations, can be found near power plants, transmission lines, industrial zones and residential areas. LPTs can be the size of a small house. Other transformers, on poles, are as small as a garbage bin.

Transformers are essential for utilities as they are key links of the electrical system.Electric Grid Representation VeracityBy the way, do not forget that your charging cords are also transformers!

 Capital investment

Utilities started to heavily invest in the electrical infrastructure in the 1960s and 1970s. The capital spending is now reaching is lowest point in 50 years, even though power consumption is increasing by 2% a year.

The following graph by ABB shows a decrease in investment with a reduced amount of transformers ordered every year. This first wave of capital spend ended in 1990s, and should be naturally followed by a wave of replacement. Nevertheless, utilities cannot always afford it and numerous have decided to extend their transformers’ life, with the drawback of increased outage and failure risks.

Power Transformer Investment ABB Risks of failure and outage

Every product goes through 3 main stages in its life-cycle, as shown on the “bathtub” graph:

Bathtub curve Product“Infant Mortality” highlights failures due to defects and the quality of materials used. The end-of-life stage shows the most “natural” or logical failures due to wear and tear.

The main causes of failure are:Power transformer failure causeThe following elements can help determine when and how a failure would occur:

  • Year (vintage)
  • Manufacturer
  • Operating history and Test results
  • Operating environment
  • Failure history

Utilities use asset management solutions which help them monitor conditions of their transformer fleet on a daily basis. Models based on algorithms are used to determine risks of outage or failure depending on the life-cycle stages and help make the right decision before an event occurs.

Who manufactures transformers?

Less than 15 companies manufacture LPTs in North America. For transformers of lower voltage, the choice is larger, but is still considered as capital investment for utilities, with increasing lead time.Power Transformer ManufacturerPrice and lead time

With an average life of 40-50 years, numerous transformers are reaching their end of life. With an average lead time of 750 days and a price range from several thousands to over 7 million dollars, sourcing a transformer has become a long-term issue for utilities.

The skyrocketing prices of copper and electrical steels are the main cause of increased prices for transformers. Stricter standards also require the installation of costly monitoring devices and software.

Copper Steel Price Tranformer Electrical

The following table gives a better idea of the price range depending on capability and voltage.Large Power TransformerCase study

As the CEO of a utility company, your engineer in chief has let you know that a large power transformer, purchased 35 years ago, shows increased risks of failure in the next 6 months, probably due to extreme weather conditions the year before. Its replacement by a new unit is obviously already planned, but not within two years. What happens if it fails? As a small utility, you are able to manage your electricity load via other transformers, but for a short period of time. You cannot wait for a new unit and the storms alerts urge you to quickly find a plan B.


* Life-extension: manufacturers like ABB offer specific programs to rejuvenate or refurbish transformers. Nevertheless, the transformer will eventually need to be replaced by a new unit, in order to be up to standards and grid specifications.

* Buddy system: call and email your colleagues from fellow utilities. You can be lucky and have access to a spare transformer. But it rarely happens, unless one of your colleagues works at a large utility company.

* Critical Spares, collaboration: pooling and sharing strategies are an efficient alternative in order to source transformers and other heavy equipment. Although each utility has its own territory, collaboration is essential when capital investment cannot be afforded, while maintaining a high-quality customer service.

Veracity offers a platform specifically designed for the utility sector, Veracity Connect. Through a cloud interface, utilities can get a proactive approach to critical spares management:

  • Asset Management: the utility can upload its transformer/substation data including description pictures, maintenance records and current state indicators. The search for matching spares is made easier.
  • Critical Spares Access: utilities can directly locate available matching spares from fellow utilities, equipment brokers and reconditioners, Original Equipment Manufacturers (OEM) and industry partners such as state/province associations.
  • Surplus Management: companies can offer equipment to other utilities. These are what will contribute to the pool of available spares. It is a good way to monetize idle equipment and increase the power of collaboration.

Veracity Connect, collaborative platform

Continue reading

The Transformer Problem

Transformer Problem Veracity Connect WillisThe consequences of any transformer failure are important, from a 20-minute outage, to a black-out of several days, resulting in hundreds or thousands of customers in the dark and significant loss revenue.

Transformers are the essential links between power generation, transmission and distribution systems.

Electric Grid Power Texas Alliance EnergyElectric Grid Representation by Texas Alliance of Energy Producers

According to Willis North America, “transformers have for decades been ranked in the top five by equipment insurers in terms of claims”. The U.S. Department of Energy states that “the average age of installed Large Power Transformers (LPTs) in the U.S. is approximately 38 to 40 years”.

Power Transformer Failure CGRE Veracity ConnectUtilities have to deal with high pressure. Deregulation, increasing demand for electricity and shortage of skilled workers have prevented utilities to invest in capital infrastructure.

Prices of the main materials, copper and steel, have skyrocketed. The price of transformers has doubled. “A large transformer that cost $500,000 in 1960, now has a replacement cost of about $4,000,000.” “Projections of capital required to maintain reliable service across the system are simply beyond the financial capacity of many of the relatively new transmission and distribution (T&D) companies.” (Willis North America). Also, the average lead time for a new unit is …750 days.

This is why Veracity Asset Management Group has designed Veracity Connect, a critical spares management solution. Veracity Connect connects utilities, cooperatives, OEMs and leading transformer brokers, to leverage a pool of available critical spares. Utilities can quickly locate matching spare transformers and capital equipment across North America and take advantage of economies of scale.

Veracity Connect, collaborative platformLearn more at www.veracityamg.com. Contact us today at 866-694-1252 or info@veracityamg.com to become a Veracity Connect member.

The Trade Show Season Is Open

The trade show season is about to start again! You will find below a list of the most pertinent events in the procurement & supply chain field and the energy sector in North America.

Trade Show Veracity Utilities Procurement Supply Chain

Power Grid Resilience SummitPower Grid Resilience Veracity Connect

September 8 – 11, 2014, Hyatt Regency, San Francisco, California, U.S.

Back in April of 2013 there were two physical attacks on the grid. The first targeted PG&E’s Metcalf power substation in San Jose, the second was at TVA Watts Bar Nuclear Plant in Spring City, Tennessee.  In the first instance PG&E lost functionality on 17 transformers, recovering operations in less than 4 weeks. Four weeks is actually remarkably quick…critical components such as transformers can take 3 months to 2 years to be manufactured and shipped, depending on the size and requirements.

Couple these challenges with new risks of unprecedented catastrophe from long-duration electric grid disruption… and the need for crafting and implementing practical, coherent, no-nonsense, nuts-and bolts disaster prevention, response and recovery plans also becomes a compelling priority.

IQPC’s Power Grid Resilience Summit for the first time, brings together top utility executives to share best practices with respect to immediate implementation of near-term and relatively low-cost steps to make our grid significantly more resilient.

This summit delivers “here’s how-to-do-it” methodologies to help you implement, manage and lead disaster prevention/recovery efforts in your utility.

Program: http://ow.ly/ydOIX



83rd Annual Utility Purchasing Management Group Conference

Utility Purchasing Management Group Conference Veracity

September 21-23, 2014, Orlando, Florida, U.S.

Over the years, Institute of Supply Management’s Utility Purchasing Management Group (UPMG) has grown significantly and its annual conference continues to be recognized as of the premier educational events within the utility supply chain industry. The event is hosted by Duke Energy.

  • Key Industry Topic Discussions from Duke Energy Senior Executives
  • Chief Procurement Office and Chief Financial Officer Panel Discussion
  • Change Management Techniques: Supply Chain Focus
  • Best Practices in Utility Supply Chain Focus
  • Best Practice in Utility Supply Chain Organizations
  • Talent Management
  • Futurist General Session
  • Buy America General Session
  • Disney Executive Addresses Attendees


Contact: Marlon Merritt at Marlon.Merrit@duke-energy.com


International Council on Large Electric Systems (CIGRE) Canada Conference

International Council on Large Electric Systems CIGRE Canada Veracity Sourcing Transformers

September 22-24, 2014, Toronto, International Center, Canada

Electric utilities with transmission and distribution systems face tough challenges: planning, connecting and operating systems with radically different generation, including large solar and wind generation, and more power electronics-controlled loads. Concurrently, utilities must ensure reliability and adequate power quality, reduce carbon emissions, minimize visibility of new builds, improve customer service, moderate electricity rates, manage aging infrastructure, and address climate changes and extreme weather concerns.

At this conference, deepen your understanding of these utility issues, the solutions, approaches, methods, and tools which have worked successfully, and seek answers to specific emerging issues at your utility.


Contact: Conference.2014CIGRE@HydroOne.com


Smartgrid Canada Conference Montreal 2014SmartGrid Canada 2014 Veracity Asset Management Utilities

October 1-3, 2014, Westin Hotel, Montreal, Québec, Canada

For its fourth annual conference, SmartGrid Canada has partnered with the Smart Grid RoadShow to create the single leading event for the electricity industry. Between October 1-3 at the Westin Hotel in Montreal, utility representatives, industry members, policy makers and regulators will come together to discuss the challenges and opportunities in modernizing Canada’s electricity infrastructure.

The conference will explore the leading topics of the day, focusing on grid resiliency, the active customer and how smart grid technologies enable them. Extreme weather and other natural disasters can threaten lives, disable communities, and devastate electric utilities’ operations. With greater reliability demanded by the general public, utilities must respond with new strategies, resources and adaptation techniques to strengthen the electric grid.

Program: http://smartgridcanadaconf.ca/2014/programme/


Steven Desrochers | steven@smartgridroadshow.com
Sponsorships & Exhibition
1-(888) 332-3749 (x222)

Anne-Marie Enns | anne-marie.enns@sgcanada.org
1-(604) 313-3831


Canadian Energy Supply Chain Summit VeracityOctober 28-30, 2014 – Calgary, Alberta, Canada

Produced in partnership with the Supply Chain Management Association of Alberta, Canadian Manufacturers & Exporters and the Government of Alberta, the Canadian Energy Supply Chain Forum is a two and a half day conference and trade show focused on helping and enabling Canadian energy companies build a world-class supply chain.

This event will provide a number of world-class examples of supply chain management excellence and deliver guidance on how to think, interact and approach your daily work in new and innovative ways. The CESCF will provide insights on how Canadian energy companies can achieve supply chain excellence by re-evaluating communication practices, scope preparation, contract negotiation, risk management, integrated project delivery and more.



Federation of Alberta Gas-Co-ops Ltd. Annual General Meeting & Trade FairFederation Alberta Gas Co-op Veracity

November 24-27, 2014, Delta Edmonton South Hotel/Radisson Edmonton South Hotel, Alberta, Canada

For 50 years, the Federation of Alberta Gas Co-ops Ltd. and its 81 Member Utilities have been proud to have helped build Rural Alberta. The supply of natural gas to remote areas of our province has been essential to the development of Alberta, and has ensured all Albertans have access to a great quality of life no matter where they are. From a small collection of farmers to now the world’s largest rural gas distribution system, we are proud of our story and will celebrate it at our Annual General Meeting and Trade Fair this November.

Program: http://www.fedgas.com/public/data/documents/01TradeFairBrochure14pdf.pdf


For more information, contact Dawn Dietz at the Federation Office
(780) 416-6543 or ddietz@fedgas.com


NET 2015 – Touchstone Energy Annual New and Emerging TechnologiesTouchstone Energy Veracity Connect

January 26-29, 2015, Tucson, Arizona, U.S.

NET 2015 is Touchstone Energy’s premiere B2B conference connecting national energy managers and key account personnel from around the nation. Hear and see what new technologies and topics are shaping our industry from national speakers and experts. View new products and services from our valued sponsors and exhibitors and network with beautiful Tucson as your backdrop.

Contact: Kathryn Momot, Program Manager, Kathryn.Momot@nreca.coop, (703) 907-5707



TechAdvantage Expo

Tech Advantage 2014 Veracity Connect

February 23-26, 2015, Orlando, Florida, U.S.

TechAdvantage is at the forefront of innovation, delivering critical technologies that are transforming the world of engineering, information technology, energy services, operations, supply management and business. Join everyone for four days of leading-edge strategies and best practices created to share and demonstrate advantages in science, technology and other industry areas that will benefit Co-op Nation well into the 21st century.

Who comes to TechAdvantage?

  • Engineers eager to leverage new applications and existing technologies to do their jobs well and do their jobs right
  • Sharp operations professionals wanting to keep pace with new technologies who are ready to execute results and fire on all cylinders
  • IT professionals targeting new skills and analyzing practical information to manage infrastructure, security and strategy
  • Frontline supply managers attentive to new ideas and innovative products that they can maneuver and apply at their co-ops
  • National co-op leaders wanting to hear from technology experts about what they see coming to determine how their co-ops will meet new challenges
  • Smart co-op insiders, hungry for what comes next and re-energized by new ideas that will elevate their efforts to new levels

Eric Commodore, NRECA
Telephone: 703.907.5577, Fax: 703.907.5521, eric.commodore@nreca.coop

Mary Novack, Kenworthy Management, Inc., NRECA Show Management
Telephone: 718.578.4658, Fax: 718.848.5095mary@kenworthymanagement.com



Supply Chain Management Association National Conference

Supply Chain Management Association Veracity Asset Management GroupJune 10 to 12, 2015, Halifax, Nova Scotia

Canada’s premier event for supply chain management professionals is also its largest. Each year, 500 top procurement and supply chain decision-makers from across Canada come together at the SCMA National Conference to discover the latest developments and best practices in the profession.


Email: info@scmanational.ca


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Key points from “Economic Benefits of Increasing Electric Grid Resilience to Weather Outages”

Grid Resilience Veracity Asset Management GroupThe report “Economic Benefits of Increasing Electric Grid Resilience to Weather Outages” from the Executive Office of the U.S. President, released in August 2013, is worth being looked at again as the grid and utility companies have to cope with new challenges. Our critical spares management solution Veracity Connect answers some of these challenges met by utilities, as described at the end of the article.

  • The U.S. grid connects 5,800 power plants and delivers electricity to over 144 million customers via 450,000 miles of high voltage lines.

U.S. Grid Infrastructure Veracity Asset Management Group

  • The grid is aging and needs to be modernized: “Seventy percent of the grid’s transmission lines and power transformers are now over 25 years old and the average age of power plants is over 30 years (Campbell 2012).”

U.S. Billion-dollar weather outages Veracity Asset Management Group

  • Due to its aging infrastructure, the grid is exposed to increased risks due to extreme weather conditions (storms, thunderstorms, floods). The U.S. Department of Energy (DOE) reports more than 670 power outages between 2003 and 2012 each affecting more than 50,000 customers. “The U.S. energy sector in general, and the grid in particular, is vulnerable to the increasingly severe weather expected as the climate changes (DOE 2013).”The damages caused by the 144 main weather disasters since 1980 have totaled more than $1 trillion.

Outages US Utility Veracity Asset Management Group

  • Through the “Recovery Act” in 2009, the U.S. Department of Energy has been allocated $4.5 billion to modernize the grid’s resilience toward severe weather.” A more resilient grid is one that is better able to sustain and recover from adverse events like severe weather – a more reliable grid is one with fewer and shorter power interruptions. Methods for improving the resilience and reliability of the grid include both high and low-tech solutions.”
  • The U.S. Government sees an industry-wide program as one of the strategies to increase the grid resilience. “Grid resilience strategies require a partnership across all levels of government and the private sector to promote a regional and cross-jurisdictional approach.”

Availability of Critical Components and Software Systems” is one of the priorities of the U.S. government to improve the grid’s resilience. “utilities can employ asset management strategies that lead to greater availability of critical components”, such as large power transformers. Our cloud-based platform Veracity Connect intends to answer this priority by offering utilities a clear view of available critical equipment through a cloud platform, by putting them in direct contact with other utilities, OEMs, brokers and industry partners.

Some of the benefits are:

  • Mitigate risks by adopting a proactive approach to potential failures.
  • Locate out of stock or hard to replace equipment.
  • Offset capital expenditures by sourcing and comparing available assets. No comparable solution offers to put you in direct contact with other utility members.
  • Network with industry partners and get updated on critical spares market trends.
  • Store key data (e.g. asset specifications, pictures) and get reports on matching assets.
  • Liquid surplus or idle items and maximize their value.
  • Ongoing assistance from Veracity’s Team.

Veracity Connect, collaborative platformFull report “Economic Benefits of Increasing Electric Grid Resilience to Weather Outages”

Go further with:

North American Reliability Corporationhttp://www.nerc.com

The North American Electric Reliability Corporation (NERC) is a not-for-profit international regulatory authority whose mission is to ensure the reliability of the bulk power system in North America. NERC develops and enforces Reliability Standards; annually assesses seasonal and long‐term reliability; monitors the bulk power system through system awareness; and educates, trains, and certifies industry personnel. NERC’s area of responsibility spans the continental United States, Canada, and the northern portion of Baja California, Mexico.

Federal Energy Regulatory Commissionhttp://www.ferc.gov

The Federal Energy Regulatory Commission, or FERC, is an independent agency that regulates the interstate transmission of electricity, natural gas, and oil. FERC also reviews proposals to build liquefied natural gas (LNG) terminals and interstate natural gas pipelines as well as licensing hydropower projects.

The Independent Statistics & Analysis U.S. Energy Information Administration recently released maps of energy facilities and risk areas, especially the “flood vulnerability assessment map” you can find here: http://www.eia.gov/special/floodhazard/).

9 Key Facts from the “Large Power Transformers and the U.S. Electric Grid” Study: http://wp.me/p2EjZw-3S

Why Do Transformers Fail: http://wp.me/p2EjZw-4W

Why Do Transformers Fail?

With an aging infrastructure and extreme weather conditions, transformers may sometimes fail due to various reasons. Are the causes the same for all incidents?Transformer Failure Fire Veracity Asset Management In “An Analysis of Transformer Failures”, William H. Bartley, P.E., from Hartford Steam Boiler Inspection and Insurance, points out key elements regarding transformer failures.

The average age at failure is 18 years. Most of the transformers installed in the 1950s to 1980s have entered the aging part of their life cycles. “Power consumption continues to increase at a rate of about 2 percent per year, even though installation of new transformers is declining.” (William H. Bartley).

 Overview of the main causes of failure: Power Transformer Failure Veracity Asset Management Group

Preventing transformer explosions, leakage and other damages is not always possible. Factors like a proper installation and operation, oil test and thorough maintenance can help decrease failures. Nevertheless, even with the best efforts, no one can prevent a lightning to strike a transformer or other electrical equipment.

The bathtub curve

The following graph describes the relative failure rate of a whole group of similar products. During their life cycle, products will go through three different periods of failure rates, which explains the “bathtub” shape.

Bathtub Curve Failure Rate Veracity Asset

Let’s describe them:

  • Infant Mortality: failures are the least expected. Design, manufacturing or material defects are common causes and requires from the manufacturer a deep analysis of the incidents.
  • Normal Life, also called Useful Life: random failures occur. This is the lowest constant failure rate.
  • End of Life Wear-Out: wear and tear make products fail more often, and signal the end of their life cycle.

As mentioned by William H. Bartley, a large population of transformers is now reaching the end of life wear-out stage. This is a challenge for companies to anticipate upcoming failure, as the lead time for new transformers is from 6 months on to a couple of years, and the extreme weather is also increasing risks.

How then can we improve our answer to such issues?

Transformers are considered as critical spares. The lack of back-up slows down utility companies’ actions when a failure happens. Sourcing the right equipment with the right timing is a challenge that companies in the energy sector have to take up. One of the most relevant solutions is a collaborative platform specifically designed for the utility industry.

This is why Veracity Asset Management Group has developed Veracity Connect, a cloud-based platform designed to foster collaboration among utility industry members, suppliers and resellers. Connecting the right people, sharing knowledge and expertise allow the utilities to have immediate access to critical spares data and strategic management.

Veracity Connect, collaborative platform

When a transformer shows risks of failure – or age – the company can adopt a proactive approach to critical spares management and quickly locate a replacement. It cannot prevent the failures, but it helps utilities avoid lengthy negative situations and keep delivering quality customer service.

Contact us at 1-866-694-1252 or info@veracityamg.com. We will be glad to answer your questions and bring you the best of our services.

Transformers Asset Management Cloud Veracity ConnectOur website: http://www.veracityamg.com

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Sources :

“An Analysis of Transformer Failures”, William H. Bartley, P.E., Hartford Steam Boiler – http://ow.ly/AciXd

The Transformer & Electrical Co Ltd – General Causes of Transformer Failure in the Field – http://www.teccoltd.com/failure.html

The Bathtub Curve and Product Failure Behavior – http://www.weibull.com/hotwire/issue21/hottopics21.htm