© ABB Inc.April 20, 2011 | Slide 1

WPO–106–1Cost Benefit Analysis - Upgrades to Existing Distribution Equipment

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

© ABB Inc. April 20, 2011 | Slide 2

WPO–106–1 Cost Benefit Analysis Upgrades to Existing Distribution Equipment

Rick Gardner

Sales & Marketing Manager

ABB

Florence SC

Issues of Aging Switchgear

Switchgear and Breakers are beyond a reasonably expected life

Existing breaker technology is old and unreliable

Replacements parts are difficult or impossible to locate - costly

Arc Chutes may contain Asbestos and can not be safely maintained

Mechanisms are complicated and difficult to lubricate effectively without a comprehensive overhaul

Operator safety is in question – arc flash hazards

Customer is facing forced outages poor equipment reliability

Maintenance support – a risk due to workforce attrition

Training for vintage equipment is not well documented and repeatable.

Challenges

What are the most cost effective options for improving reliability while extending the life of our installed distribution equipment?

How can we improve the safety and reduce the PPE requirements?

Do we have any exposure to financial or legal liability if we do not make any improvements?

Life extension goal – is it short term or long term?

Long term cost of the decisions – the cumulative cost over the targeted life extension will guide you to the right decision assuming other expectations are met.

Litigation exposure – the arc flash studies are done. You know your incident energy levels and PPE requirement. Can you afford to do nothing?

Budgets – cost will drive the decision as much as the other needs

Outage durations or unplanned outages – what has the financial impact been due to unplanned outages, around the clock maintenance, expediting charges & losts production.

Evaluation Steps

Determine objectives – safety upgrades, life

extensions etc

Understand budget and time constraints

Understand what your current O&M cost are

Establish current health and immediate needs of

the installed gear – internal evaluation or third

party equipment assessment.

Enter customer inputs into the cost – analysis

tool to determine full cost over targeted life

extension.

Evaluate the results and make the decision that

supports budget and life extension goals.

Asset Assessment

Objectives

System Reliability and Availability

Safety of Personnel and Property

Maintenance cost

Develop risk profile of asset base

Provide a risk mitigation plan with priorities for action

Execute action plan

Perform periodic re-assessments to monitor reduction in risk profile

resulting from executing actions

Asset AssessmentCase Study Example

7.4 As Found/As Left Comparison Chart

211

214

8

14

15

14

14

6

0 50 100 150 200 250

# Units

1

2

3

4

Risk Category

As Found & Left Comparison

As Found

As Left

Cost – Benefit Analysis Tool

Compares

Breaker refurbishment with upgrades

Breaker retrofit with upgrades

Switchgear change out

Interactive

Customer inputs their variables

Address all the major components of the gear

Cafeteria selection of upgrades

Factors in maintenance requirements

Adjust cycle times with newer technology

Calculates the cycle times by decision

Outputs compare the options & cost

Financial comparisons of different approaches

Cost Comparison

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

Arc Resistant

Gear

Conventional

Gear

Factory

Refurbhisment

In House

Refurbhisment

Roll in

Replacement

Breakers

Service

To

tal C

os

t

Approach - Decision Factors

Life extension goal

Maintenance cost

Safety upgrade requirements

Arc flash concerns

In house talent – maintenance

Budgets

Long term cost of all decisions

Down time

Outage durations

Engineering impacts

Training

Parts

Breaker Refurbishments - Advantages

Factory Advantages

Factory expertise

Plating

Painting

Latest drawings

Upgrades

Engineering support

Warranty – as new

In-House Advantages

Scheduling

Reduced cost

No shipping expense

Develop expertise

Replacement Breakers – Magnetic ActuatorAdvantages

Amvac

Latest technology

Reduced parts

Reduced maintenance

Reduced training

Longer life cycle

Longer warranty period

Modular units – simple repairs

Switchgear Replacement - Advantages

Arc Resistant

Wholesale change out

Arc resistant protection

Latest technology

Engineering upgrades

incorporated.

Reduced maintenance

Updated training

Meets latest standards

Conventional

Wholesale change out

Latest technology

Engineering upgrades

incorporated.

Reduced maintenance

Updated training

Meets latest standards

Demo Time

Financial Results

Cost Comparison

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

Arc Resistant

Gear

Conventional

Gear

Factory

Refurbhisment

In House

Refurbhisment

Roll in

Replacement

Breakers

Service

To

tal C

os

t

Cycle Time Impacts

Cycle Time Comparison

0

2

4

6

8

10

12

Safegear

Removal and

Installation

Advance

Removal and

Installation

Factory

Refurbhisment

In House

Refurbhisment

Roll in

Replacement

Breakers

Service

Cy

cle

Tim

e

Cumulative Cash – All options

0

100000

200000

300000

400000

500000

600000

700000

800000

0 5 10 15 20 25 30

Year

Cu

mu

lati

ve

Ca

sh

Safegear

Advance

Factory Refurb

Customer Refurb

Replacement Breakers

Conclusion

Replacement Switchgear

Provides arc-flash protection

Renews total system for long term life

Improves technology and protection systems

Refreshes training programs

Reduces O&M cost

Longer cycle time for change out

Most expensive option - both up-front and over 30 years

Conclusion

Refurbishment & Upgrades

Proper refurbishment can extend breaker life for 30 years but the maintenance of keeping older technology could be challenged.

Continued issues with training and parts inventory

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

Overall cost will be influenced by upgrades selected –cafeteria selections

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

Conclusion

Replacement Breakers & Upgrades

Higher reliablity

Improves safety

Updates training and parts inventory

Overall cost will be influenced by upgrades selected –cafeteria selections

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

Best value for a long term solution

© ABB Inc.April 20, 2011 | Slide 20

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© ABB Group April 20, 2011 | Slide 21