Roger Kline

Report
Eugene Water & Electric Board
2014 Annual Conference
Making Risk-based Decisions for
Hydro Infrastructure
February 19, 2014
Roger M. Kline – Generation Manager
Eugene Water & Electric Board
Eugene, Oregon
Setting the Stage
• Financial climate
– Challenging wholesale market
– O&M budgets shrinking (rate driven)
– Competing demands for capital resources
• Organizational Values
– Status quo no longer ok
– Divesture of hydro now a reality
• Strategy
– Identify/understand/talk “risk”
– Use risk data to make decisions
Strategy
• Risk Identification
– Capital investment decisions lacked criteria
– O&M program not aligned with org objectives
– Key performance indicators (KPI’s) lacking
– No standardized tools
• Risk Mitigation
– Formal condition assessment
– Re-plan and align
– Benchmarking
– Asset management tools
Condition Assessment
• Ascertain asset “health” for
– Capital investment
• Condition indicators
–
–
–
–
Operational Performance
Maintenance History
Physical Inspection
Age
• Criticality Weighting
– Outage duration
– Ease of repair
– Availability of spares
Condition Assessment
• Ascertain asset “health” for
– O&M priorities
• Identification of single point
failures or gaps in
protection under
assessment methodologies
• Valuation of processes
Alignment With Organization
• Triple Bottom Line
– Social
– Environmental
– Economic
• Day to day decisions
– Risk based
– Culture of compliance
– Utilize lessons learned
Benchmarking
The HPC Database Cost Structure
Operations
Maintenance
Environment
and Regulatory
O1:
M1:
ER1:
Facilities Operations
Powerhouse
Fish and Wildlife
O2:
M2:
ER2:
Gen Planning and Integration
Non-Powerhouse
Recreation
Land and
Water Rental Fees
LW1:
Land Rentals/Fees
LW2:
Water Rentals/Fees
Administration
OM Investments
Capital Investments
A1:
I1:
I2:
Direct
Non-Recurring Expenses
Sustaining Capital
Powerhouse
Powerhouse
Dam/Reservoir/General
Dam/Reservoir/General
Environment/Regulatory
Environment/Regulatory
A2:
I3
Indirect
Improvements & Additions
Powerhouse
O3:
ER3:
Dam/Reservoir/General
Miscellaneous
Cultural and Historical
Environment/Regulatory
ER4:
Other
Benchmarking
Asset Management Tools
• Work Asset Management
(WAM)
• Generator Availability Data
System (GADS)
• Partnerships & Associations
•
•
•
•
NWHA
CEATI
NW Hydro Ops
EUCG (HPC)
Summary & Next Steps
• “To be an outstanding
provider of energy and water
products that meet customer
needs and benefit the
citizens of Eugene.”
• Enterprise Risk Management
• New initiative / soft start
• ISO 55000?
Questions?
Roger M. Kline
Generation Manger
Eugene Water & Electric Board
(541) 685-7484 direct
(541) 731-7710 mobile
[email protected]
LinkedIn – Roger Kline

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