June 3, 2005

Transcription

1 ROBERT J. PELLATT COMMISSION SECRETARY web site: SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. CANADA V6Z 2N3 TELEPHONE: (604) BC TOLL FREE: FACSIMILE: (604) June 3, 2005 Log No BCTC 2005 TSCP Exhibit No. A-3 Mr. Marcel Reghelini Director, Regulatory Affairs British Columbia Transmission Corporation Suite 1100, Four Bentall Centre 1055 Dunsmuir Street PO Box Vancouver, BC V7X 1V5 Dear Mr. Reghelini: Re: British Columbia Transmission Corporation ( BCTC ) 2005 Transmission System Capital Plan Information Request No. 2 Please find attached Commission Information Request No. 2 to BCTC. Please provide a hard copy and an file in response. Please also include a fully functional Excel spreadsheet wherever there is a request for a numerical calculation. Pursuant to Commission Order No. G-33-05, BCTC is requested to respond by Friday, June 17, Yours truly, Original signed by: RJP/yl Enclosure cc: Registered Intervenors Robert J. Pellatt PF/BCTC05TSCP/GenCor/BCUC IR2 to BCTC

2 BRITISH COLUMBIA UTILITIES COMMISSION Commission Information Request No. 2 to British Columbia Transmission Corporation ( BCTC ) BCTC Capital Plan (TSCP) F2006 to F Reference: N/A In the Reasons for Decision attached to BCUC Order Number G , the Commission Panel provided a number of directives to BCTC For each directive that BCTC has complied with, please state the directive, state how it has been complied with, and provide relevant references to the F2006 to F2015 Capital Plan, the Asset Baseline Study, or other relevant documents For each directive that has not yet been complied with, please state the reasons why and indicate what BCTC s plans are to comply with the directive in the future Reference: BCUC IR BCTC states that, under the Sustaining Capital Portfolio, the 10-year total cost of some programs exceeds $50 million. However, approval is sought for F2006 and F2007 only, and these projects are not of the nature to trigger Criterion For each program exceeding $50 million, please state why BCTC believes it does not trigger Criterion Reference: BCUC IR Historical and forecast load data is provided Were the forecasts prepared by BC Hydro or BCTC? 86.2 Please state how the average annual growth rates in the table entitled Five Year Historical Plus Forecast Non-Coincident Station and Area MVA Peaks Loads were calculated, given that BCTC s values differ from what the Commission believes they should be. For example, the average annual growth rate at Cathedral Square is reported to be 4.0 percent for the period from 2004/05 to 2014/15, while the Commission calculates the growth rate to be g = (MW 2014/15 /MW 2004/05 ) 1/10 1 = (197.6/141.0) 1/10 1 = 3.4 percent Please clarify whether the growth rates under the Historical Data portion of the aforementioned table are four-year or five-year rates, given that only four-year rates can be calculated from the historical data provided In several cases (e.g., Maple Ridge Area) there is a substantial difference between the historical average growth rate and the forecast average growth rate. Please describe the forecasting process and the assumptions and data upon which the forecasts are based, and state the reasons for significant growth rate changes where applicable. When providing your response, please refer to the forecasting-related directives provided by the Commission Panel on page 12 of the Reasons for Decision to BCUC Order Number G

3 86.5 The table entitled 2004 Reference Peak Forecast with Power Smart gives five-, 11-, and 21-year growth rates for the Total Integrated System Peak of 0.4 percent ( ), 0.8 percent ( ), and 1.1 percent ( ). What is driving the increase in growth rates? 86.6 Note 9 to the table entitled 2004 Reference Peak Forecast with Power Smart states that adjusted 2003/04 values include adjustments for normal weather and transmission curtailment. Please explain in detail the adjustments due to transmission curtailment Reference: BCUC IR 1.22 BCTC states that it allows up to 100% loading on a facility to occur using the probable forecast before reinforcing the transmission system, and that it does not allow congestion to occur on the system for firm transmission service Please define the conditions under which a forecast will trigger a capital project to increase the capacity of a transmission path. In your response, please address the number of years in advance that the investment could be recommended, the required level of confidence in the forecast, and the extent to which the path capacity is forecast to be exceeded. For example, would a forecast that demand will exceed existing path capacity by 1 MW for a few peak hours in year 10 of a forecast period trigger an investment? 88.0 Reference: BCUC IR BCTC uses two methods to account for differences in the capacity of competing options Please provide an example showing the two methods of calculating the capacity credits and illustrating the effect thereof on the selection among alternatives Reference: BCUC IR 1.24 BCTC lists four criteria that determine whether discretionary projects are worthwhile investments, and notes that for projects driven by financial considerations, there must be a net financial benefit from implementation. Other (non-financial) project drivers include reliability improvements, congestion reductions, and reductions in the risk of future congestion Does this imply that every financially driven project with a positive NPV is proposed for construction? 89.2 Are there guidelines on the extent to which reliability must be improved, as a function of the cost and risk of the proposed investment, in order for a project to proceed? 89.3 Are there guidelines on the extent to which the risk of future congestion must be reduced, as a function of the cost and risk of the proposed investment, in order for a project to proceed? 90.0 Reference: BCUC IR BCTC states that the interpretation of the Planning Standards is black and white, meaning that they are either violated or they are not Does BCTC agree that the forecasts against which the Planning Standards are tested are not 2

4 black and white? 90.2 In BCTC s view, are parties operating under NERC/WECC planning standards obliged to meet those standards regardless of the cost of doing so? Please explain Please state BCTC s view of how NERC/WECC planning guidelines should be interpreted in a environment in which customers make consumption decisions in real time based on the price of energy, which itself is a function of time Reference: BCUC IR BCTC cites three reliability metrics Are these metrics tracked for individual parts of the system (e.g., regions, areas, stations)? If not, how are localized reliability issues tracked? 91.2 Does the term source outages under Annual Customer Hours Lost mean generation outages? If not, please explain Reference: BCUC IR BCTC has provided a table showing the key assumptions and the effect thereof on the Capital Plan What is the likelihood of, and potential effect of, the IPP resources being different than those currently identified by BC Hydro as network resources? 92.2 BCTC notes that there may be a need to increase the ILM capacity by increasing Reliability Must Run generation requirements or by advancing the 5L83 project. When will the need become known? 93.0 Reference: BCUC IR BCTC has not investigated the purchase of VArs from third parties Has BCTC considered issuing an RFP for reactive power that may allow a prospective IPP to bid, thereby improving the economics of a potential generation investment? Please explain Reference: BCUC IR The potential for malicious damage to the Nicola station has not been reassessed in recent years. Events of malicious damage to substations over recent years have been isolated and the risks associated with these events are deemed low There was some discussion during the CPCN proceeding for BCTC s SCMP about the possibility of terrorism directed against the SCMP. Has BCTC examined the possibility of a terrorist threat to the Nicola station? If not, why not? 3

5 95.0 Reference: BCUC IR BCTC is applying for approval to undertake the Selkirk Substation 500/230 kv Transformer Addition Project Is this project driven by NITS requirements, and are the costs to be recovered in rates? 96.0 Reference: BCUC IR 1.49 BCTC proposes improving the reliability and security of Rainbow substation, though no reliability criteria are being violated How does the reliability of Rainbow compare to that of similar stations? 96.2 Would it make sense to add to BCTC s own planning standards to capture the concerns that are evident at Rainbow, or is this a one off project being driven by the 2010 Olympics? 97.0 Reference: BCUC IR The Asset Baseline Study confirmed that 62% of the in-service station SCADA RTUs are functional but obsolete Does this suggest that an appropriate strategy for SCADA RTUs is run-to-failure? If not, why not? 98.0 Reference: BCUC IR 1.71 The upgrade to the diesel back-up power supply was intended to be completed in a separate project, as BCTC is doing now Why were the back-up systems treated separately, especially in light of the response to BCUC IR ? 99.0 Reference: BCUC IR 1.78 To date, BCTC has made significant progress in fulfilling the One Asset One View vision, but work remains in improving the quality of the data that is collected from the various source systems What are the various source systems? 99.2 Are there plans to integrate the various source systems into a single system? Reference: State of Transmission System Report ( STSR ) and Asset Baseline Study ( ABS ) dated May 6, 2005 Introduction and Context for the Baseline Study ( ICBS ) On page 3 of the BCTC Introduction, BCTC states that the report was conducted to fulfill a requirement with BC Hydro under the Asset Management and Maintenance Agreement. Is the 4

6 principal role of the Baseline Study to provide the baseline for future assessments of transmission system condition? If not, what will be the main role of this State of Transmission System Reports? What will be the main role and purpose of future State of Transmission System Reports? Please provide a copy of any response to the Baseline Study that BCTC has received from BC Hydro, including with regard to the following areas: (a) the overall acceptability of the methodology used to generate the report; (b) the conclusions in the report; (c) any area where additional information or analysis, or changes to conclusions are needed before the report will be acceptable to BC Hydro, and the program for satisfying such requirements; and (d) any suggestions or requirements related to the next State of the Transmission System Report that BCTC will do in three years Page 6 of the BCTC Introduction states that the report does not provide a Health Index for four classes of assets; station insulators, access roads, rail works and wood pole structures. For each of these classes, please provide an outline of the program that BCTC intends to implement in order that health indices for these classes can be calculated in the next State of the Transmission System Report Pages 3 and 6 of the BCTC Introduction identifies the need for a repeatable process that can be used in future audits and the need for due diligence with respect to changes in the health indices. Please provide the guidelines and criteria that BCTC intends to apply in future with respect to collecting and analyzing more information, and the calculation of Health Indices, in order the usefulness of this report as a baseline study is not diminished Reference: ABS The Baseline Study at page 2 states that for most asset classes, about 50 percent of the population was sampled. Please clarify whether this refers to only the field survey of substation assets The Baseline Study at page 4 states that, where some assets within an asset class have a fatal flaw, the computed health index is divided by a factor. Please provide a summary of the classes and sub-classes where such derating factors were used, the dividing factors that were used and a brief justification for the application of each factor On pages 4 and 5 the Baseline Study refers to the 70 percent Rule, which accepts a Health Index as valid if the maximum condition score for the partial data set is not less than 70 percent of the maximum condition score for a full data set. Reference is also made to a 50 percent Rule, which provides results where an asset s calculated condition score is not less than 50 percent of the maximum condition score. Please clarify whether the underlined portions of the two rule definitions are meant to be different, and if so explain why the 50 percent Rule should not refer to 50 percent of the maximum condition score for the partial data set If the 50 percent Rule is based on the asset s calculated condition score, does this mean that any asset that was provided with a Health Index under this Rule would be rated in no worse than Fair condition? 5

7 101.5 If the 50 percent Rule applies, is the Health Index calculated in exactly the same way as it would be if the 70 percent Rule applied? If not, please explain any differences and provide an example Please explain why the 70 percent Rule and the 50 percent Rule provide reasonable threshold criteria for the calculation of Heath Indices Further to page iv of the Baseline Study, please provide Table ES.2 in a form that has been expanded to show, for each asset class, the following: the percentage of the population in each asset class that was sampled; the asset classes for which a fatal flow dividing factor was used in the calculation of the Health Index; the asset classes where a Health Index was provided on the basis of the 50 percent Rule; and if available, the capital cost and remaining book value of the assets in the class Reference: ABS, Chapter 25, HVDC Pole The Baseline Study at page 25-8 states that all the capacitors of Pole 2 contain PCB s, and that the 2007 regulatory deadline for eliminating PCB s will determine this equipment s end-of-life. Please clarify the extent to which this affected the condition assessment of particular assets, and the impact on the overall Health Index calculated for HVDC Pole If it were assumed that PCB s were not a concern (e.g. if the PCB-containing equipment were replaced), what would be the impact on the Health Index calculated for HVDC Pole 2? Further to Table of the Baseline Study showing the Health Index formulation for Thyristor Valves, please provide a form of the table that provides the assigned Condition Rating, Factor and Weighted Factor for each of the 13 categories shown on the table. If calculations were done for individual thyristor valves, please provide a similar table for each valve If the calculation was adjusted for Technological Obsolescence, as explained in the note to Table , please explain the adjustment that was made and justify the need for it Please explain how the 50 percent Rule (or the 70 percent Rule) applied for the calculation of the Health Index for Thyristor Values. If the application of the 50 percent rule affected in some way the Baseline Asset Condition determined for HVDC Pole 2, please provide the Baseline Asset Condition that would have been calculated if it had been assumed that the 70 percent rule applied for HVDC Pole Table on page shows a Health Index of Poor for the four Thyristor Values, indicating a Health Index of 30 to 50 percent. What was the calculated Health Index for Thyristor Valves? If it is not evident from the responses to previous questions, please provide a schedule showing how the number was calculated Table ES.2 on page iv of the Baseline Study shows a Baseline Asset Condition of Fair for HVDC Pole 2. Further to Table on page and the statements on page 25-37, please explain the weighting and other reasoning that resulted in an overall rating of Fair for HVDC Pole 2. 6

8 102.8 To the extent that adjustments based on judgment were made in the calculation of the Baseline Asset Condition or applied to the calculated results, please discuss how BCTC will ensure that such adjustments do not compromise the usefulness of the results as the baseline for future reports Page 3 of the Baseline Study states: Health indexing quantifies equipment conditions relative to long-term degradation factors that cumulatively lead to an asset s end-of-life. Health indexing differs from maintenance testing, which emphasizes finding defects and deficiencies that need correction or remediation to keep the asset operating during some time period. Health indexing as defined appears to assume either that such degradation is inevitable or that ongoing maintenance will not delay it beyond the currently predicted end-of-life. Please discuss whether the methodology implicitly assumes maintenance at either the current or some projected level Would it be possible to extend an asset s end-of-life by greater maintenance effort, including the replacement of critical sub-elements? If not, please explain why not. How would such an extension of the asset s end-of-life impact the Health Index that is calculated for the asset? Alternatively, considering the definition of the A to D condition states on page 3, can these ratings be viewed as the level of repairs that will be needed to keep the asset in service? The Baseline Study at page states that all four Thyristor Valve Modules are in Poor condition and are approaching end-of-life, but also that they are kept in good working order through an extraordinary operation and maintenance program. These two statements do not appear to be entirely consistent. Assuming the resources to maintain the operation and maintenance program continue to be available, please explain what, if anything, the Poor rating means in terms of long term availability of the asset Reference: STSR, p. 4 The 500 kv line from Williston west to Skeena is a single radial line that serves the North Coast area load with support from local generation. Reliability risk is mitigated to some extent by the use of single-pole clearing for line faults What is the reliability of service to North Coast customers relative to the BC average? Please provide the relevant reliability statistics for the past three years Reference: STSR, p. 6 BCTC has proposed definition work for a new series capacitor station on circuits 5L71 and 5L72 from Mica to Nicola What is the present capacity of the transmission path from Mica to Nicola? What is the path capacity with one of the two lines out? What is the effect on path capacity of the addition of the capacitor station? 7

9 104.4 Please provide duration curves for path flows for each of the past three years Reference: STSR, p. 6 BCTC notes that the transmission system from Selkirk to Nicola is limited to approximately 1700 MW, and that the existing surplus generation in the Selkirk area, plus imports from the US or Alberta, can at times exceed this level. To increase path capacity, BCTC has applied for approval of several projects: Additional capacitor banks at Ashton Creek (TSCP, p. 58); Series compensation and circuit breakers on 5L91, 5L96, and 5L98 (TSCP, p. 54); A new 230/500 kv transformer at Selkirk (TSCP, p. 56); Reconfiguration of the Nicola station (TSCP, p. 51) Please provide a map showing a cut plane that separates Selkirk from Nicola and list the bulksystem transmission lines that cross that plane Please provide duration curves for the power flow across that cut plane for each of the past three years Please provide BCTC s forecast duration curve for cut-plane flows for the first year and the fifth year in which the path capacity is at its new value of 2300 MW. Please indicate the level of uncertainty in the forecasts What are the market conditions in Alberta and in the Pacific Northwest that are necessary to drive an increase in path flows of 600 MW? Please confirm that the total capital cost of the projects listed above is approximately $114 million. If not confirmed, please provide an itemized cost estimate of the projects required to increase the Selkirk-Nicola path capacity What implications would a path capacity increase to 2300 MW have on other bulk system paths, such as the Interior to Lower Mainland path? Does the increase in the path capacity include the MW increase in transfer capability due to the new 500 kv loop on 5L98 that connects the transmission system with FortisBC s Vaseaux Lake Substation (see p. 10)? Does BCTC anticipate filing a CPCN application for the proposed upgrades to the Selkirk-Nicola path? If so, when? Reference: STSR, p. 7 BCTC notes that the difference between the Interior to Lower Mainland transfer capability and the transfer requirement is met using 1100 MW of BC Hydro s reliability must-run generation. It also notes that until transmission system reinforcements can be made, increases in coastal load will have to be met with corresponding increases in coastal generation or additional imports from the United States. Alternatively, new generation resources could be developed close to the load centres Please provide a map showing the cut plane that separates the Lower Mainland from other parts of the transmission system Please provide a duration curve for the flow across the cut plane for each of the last three years. 8

10 106.3 Please provide duration curves for Lower Mainland RMR generation for the last three years What is the annual cost of the RMR generation? How much generation (both capacity and energy) would be required in the Lower Mainland (or elsewhere, if applicable) to: (a) defer the need for the transmission reinforcement for five years beyond the current target date; (b) defer the need for the reinforcement for ten years beyond the current target date? Please include the relevant load forecasts in the response What would be the effect of a transmission reinforcement deferral on future Southern Interior generation projects? Does BCTC have a view on the relative economics of: (a) generation in the interior plus the necessary transmission to the Lower Mainland; and (b) generation in the Lower Mainland? Please provide any relevant analyses Reference: STSR, pp A study is currently underway to identify the best option to address load growth and seismic issues in the Mt. Pleasant area of metro Vancouver. Supply to this area is currently provided from Murrin, Mainwaring, and Sperling substations. In metro Vancouver, several 230 kv cables that have been in service for more than 40 years are deteriorating. One component of the initiative to address this issue is a second 230 kv cable from Sperling to Cathedral Square substations. A CPCN application will be submitted for this project Does BCTC anticipate submitting a CPCN application for the Mt. Pleasant project? Please explain Are the two metro Vancouver projects sufficiently linked that it would make sense for the Commission to consider them in a single application? Please explain Reference: STSR, pp BCTC identifies both seismic activity and ice storms as possible threats to the transmission system. It anticipates having a seismic risk program fully established by March 15, 2006, and is in the definition stage of a project to reinforce portions of the 230 kv and 500 kv lines in the Howe Sound/Pemberton and Fraser Valley regions Did any of the projects in the current TSCP arise from the work of either the seismic task force or the ice storm risk assessments? If so, which ones? Did the seismic task force prepare a report or establish standards that will form the basis for the seismic program? If so, please provide a copy of the relevant materials BCTC states that the ice-storm-related reinforcements have been identified as priorities based on the probable magnitude of ice, the probability of structure failure, the consequence of failure, the cost to reinforce, and the best benefit/cost ratios. Please provide the relevant reports or studies Reference: STSR, Appendix 3 BCTC has provided maps showing major reinforcements under the Growth Capital Plan with 9

11 expenditures in F Please provide, in either map form or text form, a list of all bulk system Growth Capital Plan projects included in the current Transmission System Capital Plan. All bulk system projects should be included, whether or not expenditures will be incurred in F2006. Projects should be listed according to the transmission path (e.g., Selkirk-Nicola) or paths that will be affected by the projects For each path, please state the expected change in path capacity (if any), the timing of the expected change, and the total estimated cost For each path for which there is to be an increase in capacity, please list any other paths whose capacity must be increased as a consequence Reference: ICBS, p. 3 One of the key objectives for the Asset Baseline Study was to use the Asset Health Indices as inputs to planning and decision-making for present and future capital replacement and expensed maintenance requirements Overall, how does BCTC believe the study will affect its asset maintenance and replacement programs? In answering, please describe the three or four most significant changes that will result from the study, and indicate the effects (if any) on BCTC s RCM programs Reference: ICBS, p. 4 BCTC noted that there were constraints on the study that prevented: (a) the testing or invasive inspection of equipment to capture new condition data; (b) the transformation of paper records in the field to electronic form; or (c) the modification of technology infrastructure to enable the systematic capture of data used to calculate the health indices What plans does BCTC have to address such constraints for the next baseline study? Reference: ICBS, pp. 7-8 BCTC states that it will look for an economic balance between maintenance and replacement to pursue the lowest lifecycle cost for the function without impacting the required level of performance. BCTC also states that it will include a rigorous financial analysis that will include calculation of NPV and benefit/cost ratio How is the required level of performance of the system as a whole established, and where are those requirements set out? Is a required level of performance set out for each asset class? If so, where are those requirements set out? Please provide an example of the rigorous financial analysis associated with an asset management program. 10

12 113.0 Reference: ICBS, various pages Several assets classes have ongoing Sustaining Capital programs or related OMA initiatives For each asset class that has one or more ongoing Sustaining Capital programs, please provide a brief update on the status of the programs that includes program descriptions, start and end dates, initial approved costs, expenditures to date, completion percentages, expected times to completion, and expected total costs at completion Reference: ICBS, pp. 8 & 9 BCTC will continue to employ Reliability Centred Maintenance (RCM) philosophies in maintaining the assets Please describe the RCM philosophies used at BCTC How have those philosophies affected asset replacement and maintenance programs and lifecycle costs? Please provide any data supporting the assessment How does the fact that BCTC views RCM as a maintenance philosophy, not as an asset management strategy, affect the use of RCM at BCTC? Reference: ICBS, p. 10 BCTC states that the key indicator for reliability is SAIDI What other reliability indicators does BCTC use? Are these indicators disaggregated? If so please explain how and provide examples Please provide 5 years of historical data for all reliability indexes used by BCTC Why does BCTC consider SAIDI to be the key reliability indicator? Reference: ICBS, p. 10 Investments that are based on mitigation of safety hazards to the public, third parties, employees or contractors are considered to be mandatory. All safety related investments automatically pre-qualify for inclusion in the annual capital plan Do all of the situations identified as safety hazards result in the same level of risk? If not, how are they ranked? Have all of the situations identified as safety hazards arisen (or become known) in the recent past (e.g., since BCTC took over management of the transmission system)? If not, is there a specific reason or set of reasons why they were not addressed earlier? Reference: ICBS, p. 12 A Quality Assurance audit program has been initiated to spot check the performance of field services for preventive maintenance (PM) type activities. Most audits performed to date indicate adherence to the 11

13 maintenance practices specified in the maintenance standard Who is conducting the audit? Please describe the audit process Is the audit a one-time process, or is it ongoing? Reference: ICBS, p. 12 Replacement of 500 kv GE type AT circuit breakers will reduce risk due to earthquakes as they are in a seismic zone but are not able to withstand a significant seismic event What seismic standards is BCTC using for future equipment purchases Is the seismic risk the primary driver of replacements for this or any other asset class? Please explain Reference: ICBS, p. 13 Units to be replaced are prioritized based on Efficient construction costs for mobilization and demobilization Please explain mobilization and demobilization in this context Reference: ICBS, p. 13 BCTC continues its OMA program of PM, rebuild and overhaul of circuit breakers. The 500 kv BBC air blast circuit breaker rebuild program has been successful and is on track Please describe the differences between traditional preventive maintenance programs and such programs under RCM How is the success of the 500 kv BBC circuit breaker rebuild program measured, and what are the results to date? 12

14 121.0 Reference: ICBS, p. 13 An assessment of risk and reliability issues to prioritize the replacement of circuit breakers identified as class failures is in progress. This assessment will address circuit breakers in the worst condition and recommend a prioritized replacement or refurbishment program How is the replacement/refurbishment program discussed here (under the heading Related OMA Initiatives ) different from the work described under the heading Sustaining Capital Programs? Reference: ICBS, p. 15 No major changes are contemplated with respect to circuit-switcher maintenance; however, the eventual replacement of switchers with circuit breakers is a new practice. The program for replacing 500 kv S&C shunt reactor circuit switchers in poor condition with circuit breakers will be completed in Did BCTC conduct a rigorous financial analysis, as described in Section 3.1 beginning on page 7, of the 500 kv circuit switcher replacement program? If so, please provide a copy of that analysis. If not, why not? What is the reference maintenance program against which no major changes are contemplated? Does that reference program pre-date the implementation of RCM? Reference: ICBS, p. 20 BCTC has initiated a program to inventory shunt capacitor spares and to assess spares adequacy to establish both short- and long-term spare stocking levels Is the spares study to encompass all transmission assets? If not, which assets are to be included? What is the status of the study, and when does BCTC anticipate that it will be completed? Reference: ICBS, p. 22 When a cable failure occurs, BCTC replaces all cables in the run to protect the replacement cable from subsequent failures of surrounding cables By what mechanism(s) would the failure of a cable damage the replacement cable? What is the (typical) incremental cost of replacing all of the cables in a run instead of just the failed cable? Is any assessment made of the health of the other cables in the run prior to replacement? Reference: ICBS, p. 23 As part of its asset management strategy, BCTC pays specific attention to more effective use of standards, and will focus on process improvement efforts such as better work planning and coordination, maintenance project prioritization, quality work improvements and a strategic focus on subsystems. 13

15 125.1 Please indicate whether the above quotation is applicable to assets other than synchronous condensers Please elaborate on the statement that BCTC pays specific attention to more effective use of standards, and provide a relevant example What specific actions are proposed in connection with BCTC s focus on process improvement efforts? Have the problematic brush systems and 12 kv breakers resulted in significant reliability problems for synchronous condensers? If so, what are the relevant reliability statistics? Reference: ICBS, p. 28 BCTC will continue to impose reliable and effective controls around the best practices of P&C philosophy, application, design, configuration, installation and testing. Also, BCTC expects to see a reduction in OMA costs as a result of the P&C capital investments in digital, microprocessor-based technology What reliable and effective controls are imposed? Please describe the best practices of P&C philosophy, application, design, configuration, installation, and testing Has BCTC quantified the expected savings in OMA from the capital investments? If yes, please provide the details What is the reliability of the digital, microprocessor-based technology relative to the equipment it is replacing? Is the reliability history sufficient to provide confidence that a massive replacement program will not be required at some future time? Reference: ICBS, p. 41 BCTC asset management strategy pays specific attention to OMA costs. These costs have been trending down due to the process improvement efforts BCTC will continue these efforts and explore other value engineering approaches so as to better meet the required system reliability Please provide the OMA data that support the downward trend in costs Please describe some of the other value engineering approaches that BCTC could employ to better meet required system reliability. What is the status of BCTC s investigation of these approaches? Does the above quotation apply to assets other than series capacitors? Please elaborate Reference: ICBS, p. 42; HVDC Report, p. 7 BCTC notes, The strategy for HVDC is to continue to extend the life of the asset through selected strategic capital investments and ongoing maintenance in order [to] preserve reliability, and maintain 90% availability until at least On page 7 of Evaluation of HVDC Light TM as an Alternative for the Vancouver Island Transmission Reinforcement (VITR) Project (the HVDC Report), it states, BCTC considers that the end of life for the HVDC system is in the year

16 128.1 If the end of the HVDC assets life is 2007, why will it be kept operational through at least 2013? Reference: ICBS, pp. 7-8, High Level Asset Management Principles An evergreen process for asset replacement is discussed. Beyond obsolescence and unavailability of spare parts, environmental issues and reduction of overhaul costs, and performance issues, what other factors go into determining when it makes sense to replace an individual asset? Under the evergreen process, individual assets are replaced when it makes sense to do so, rather than waiting for the whole class or generation to degrade. Conversely, will individual assets be retained when it makes sense to do so when a particular class or generation of assets is being replaced? For instance, for the pin and cap insulator replacement program and the SiC lightning arrestor replacement program, have instances where the installations are acceptable been identified? Reference: ICBS, p. 12 BCTC noted a recent string of explosive failures on 500 kv Delle type PK8 air blast circuit breakers Please describe when and where these explosive failures took place, the impact on surrounding equipment, the time taken to repair and/or replace the failed equipment, and the contribution of the event to SAIDI and SAIFI Reference: ICBS, p. 15, Asset Management Strategy Please provide a comparison of the installed cost and life cycle maintenance cost for a circuit switcher versus a circuit breaker What contribution to SAIDI and SAIFI performance have circuit switchers made in each of the last five years? Does the use of a circuit breaker in an application previously served by a circuit switcher suggest an increase in the expected level of reliability from that system? If so, please describe why that increase is required, and if not, why not? Reference: ICBS, p What specific bushing failures have been detected and prevented by the bushing oil-sampling program? What percentage of the oil-filled bushing population is being sampled, and what are the criteria for a bushing to be included in the sampled population? 15

17 132.3 Did the bushing Doble test reveal any concerns for the bushings where the oil-sampling program detected and prevented failures? Reference: ICBS, p Please provide a life-cycle cost comparison for oil-filled versus SF6 instrument transformers for voltage classes lower than 230 kv In the context of other oil volumes in substations (eg. transformers, breakers, etc.) please describe the environmental and social impacts associated with the volumes of oil in oil-filled instrument transformers Reference: ICBS, p Please provide the scope, schedule and budget of the mobile partial discharge testing initiative, and the preliminary results if available Reference: ICBS, p. 29, Sustaining Capital Programs Please describe the insecurity associated with sudden-pressure gas relays, and provide their contribution to SAIDI and SAIFI over the last five years The sudden-pressure gas relays are described as standby protection. For the 56 pre-selected power transformers that will have complete P&C replacements, please describe the currently installed primary and secondary protection systems. If the currently installed systems are unreliable, please quantify their contribution to SAIDI and SAIFI Reference: ICBS, p Please provide details regarding the 2004 benchmarking of vegetation management, including a report, if available Reference: ABS, p. iv In Table ES.2, the condition of certain asset classes is not rated because there is insufficient data available for analysis. In the key conclusions on the following page, it is stated (for certain other asset classes) that, Because of a lack of condition data, most of the result is based on equipment age, though the condition distribution for such asset classes is reported in Table ES.2. (See, for example, conductor systems and metal support structures.) Please provide a detailed explanation of how the two cases (the insufficient data case and the lack of condition data case) were distinguished based on the available data. 16

18 138.0 Reference: ABS, p. 2 Because sampling was used instead of an assessment of the entire population, the distributions of Health Index across each asset class are estimates of the actual distributions. In general, the samples were chosen to produce an interval of ±5% at 90% confidence Please provide an analysis for at least one asset class that shows the derivation of the error band and the confidence interval for the Health Index distribution, along with the required sample size. Please state any assumptions made Reference: ABS, p. 4 Within a given asset class some individual assets may suffer from a fatal flaw that would not be immediately obvious from the computation of the Health Index based on the end-of-life criteria established. The example of an ATB-80 air blast circuit breaker that achieves a perfect score on the Health Index is used Might the fact that a piece of equipment could have a fatal flaw but achieve a perfect score based on end-of-life criteria indicate that the criteria themselves may be flawed? Please explain Alternatively, could a high score based on the end-of-life criteria indicate that a particular member of an asset class is significantly more reliable or in better condition than its peers, and therefore perhaps not in need of immediate replacement? What is the theoretical or empirical basis for dividing the HI by a factor, and how are the individual factors derived? Please list, by asset class, all other fatal flaws that result in adjustments to computed HI values, and state what those HI adjustments are Did the extrapolation of sample-based condition ratings to condition ratings for asset populations incorporate class members whose scores were adjusted because of fatal flaws? If yes, please comment on the effect of including fatally flawed asset members on the distribution of condition ratings for the asset population Did the extrapolation of sample-based condition ratings to condition ratings for asset populations incorporate class members for which there was insufficient data available for analysis or for which there was a lack of condition data? Please explain Please provide updated Summaries of Condition Assessment Results (as shown, for example, in Figure on page 1-40) for each asset class, adding the categories Not Rated and Fatally Flawed to those already used. The updated charts (or tables, if preferred) should reflect the segregation of unrated and fatally flawed class members into their own categories, which implies that the counts in the other categories will decrease in some cases Please explain in detail how the population statistics presented in response to the previous question were derived from the sample statistics. Please make sure to specifically address the treatment of Not Rated and Fatally Flawed class members. 17

19 140.0 Reference: ABS, pp. 4-5 The report states that one need not have complete information about an asset class to compute its Health Index ( HI ). The 70% Rule states that it is possible to calculate a valid HI if the maximum condition score for the partial data set is greater than or equal to 70% of the maximum possible condition score for a full data set. The 50% Rule states that if an asset s calculated condition score was greater than or equal to 50% of the maximum possible condition score, an index was computed and presented in the results. Application of the 50% rule does not impact the statistical confidence of the results of the HI calculation for classes where a sample population was assessed because the data used to calculate the HI for a given asset are not a sample Please confirm that the 70% rule and the 50% rule apply to the calculation of health indices for individual assets (members of an asset class), and not to the class as a whole. If not confirmed, please explain Does having complete information for an asset mean that a score can be assigned to every endof-life criterion for the corresponding asset class? (For oil circuit breakers, for example, this means data is available to assign a score to every criterion listed in Tables through ) What is the theoretical or empirical basis for the values of 70% and 50%? Please provide a complete example of HI calculations for an asset class that has: (a) at least one member for which there is complete information; (b) at least one member to which the 70% rule applies; (c) at least one member to which the 50% rule applies; and (d) at least one member for which there was insufficient data for the 50% rule For each asset class, please indicate the fraction of class members examined that fell into the groups labeled (a), (b), (c), and (d) in the previous question How does application of the 50% rule affect the statistical confidence in the results of the HI calculation for classes where the entire population was not assessed? In the explanation, compare results for two asset classes, each with N members, one of which had complete information for the entire sample (of size n), and one of which had complete information for half the sample and required the 50% rule for the other half of the sample Given incomplete information in BCTC s maintenance management systems, along with statistical results that indicate that a certain percentage of assets are in very poor condition and in need of immediate attention, what will be BCTC s approach to finding and addressing the assets in very poor condition? Reference: ABS, p. 1-3 BCTC has noted that early 500 kv ABCBs installed on the BCHydro system may be susceptible to major damage during seismic events. ABCBs also have large masses supported on long vertical porcelain insulators, making stability a concern in seismically active areas Are the other types of breakers as susceptible as the ABCBs to seismic damage? 18

20 141.2 How many breakers does BCTC consider to be both susceptible to damage and located in areas with significant seismic risk? Reference: ABS, pp & 1-12; ICBS, p. 10 Some utilities have implemented rehabilitation programs that include replacement of critical components, other than breaker tanks. After these rehabilitation activities, utilities generally give as good as new age classifications to the remanufactured units Is BCTC s strategy of refurbishing circuit breakers equivalent to the rehabilitation activities described here? If so, does BCTC alter the age of the breaker for demographic purposes? Please provide data on the number of breakers rehabilitated under BCTC s program Is BCTC s breaker maintenance program based on time, the number of breaker operations, or some other factor? If the response varies by breaker type, please explain Reference: ABS, p Computing the Health Index for BCTC-managed transmission circuit breakers first required developing end-of-life criteria for various components of this asset class. Each criterion represents a factor critical in determining the component s condition relative to potential failure. The condition assessment and rating process included visual inspections and detailed reviews of maintenance records and diagnostic test reports from BCTC s asset management system databases In BCTC s view, would it make sense to adjust the weightings of certain end-of-life criteria by asset location? For example, is it the case that cracks in concrete foundations may be of greater consequence in seismically active areas? How were the asset condition ratings (i.e., the definitions for ratings A, B, C, D, and E) developed for each end-of-life criterion? Reference: ABS, p For each asset class member the components and tests shown in the tables above were weighted based on their importance in determining the class member s end-of-life Please describe the process by which the criteria weights were derived Reference: ABS, p. 2-2, and ICBS, p. 14 The ABS states that BCTC conducts major inspections and overhauls of disconnect switches, and performs contact resistance tests and blade angular motion checks, at 8-year intervals. In addition, BCTC conducts Thermograph tests on a six-month basis For transmission assets in general (rather than for disconnect switches specifically), how does BCTC set the inspection, maintenance, and overhaul intervals? 19

21 145.2 Is there a process in place to periodically review and adjust those intervals based on results? If so, what is that process? What other equipment inspections would typically be carried out at the time thermographic inspections are being carried out on disconnect switches? The ICBS notes that time-based maintenance on disconnect switches at 25 kv has been discontinued. Does this fact mean that the ABS statement noted above should be changed? Reference: ABS, p. 2-3 Environmental factors, along with operating conditions, vintage, design, and configuration all contribute to switch (and more generally, asset) degradation. Application criticality also plays a role in determining end-of-life for disconnect switches Does BCTC have a mechanism for assessing and recording the characteristics of the environment in which its assets operate? If not, why not? If the answer to the previous question is yes, how is this information used in establishing maintenance practices? How is an asset s application criticality recorded in BCTC s asset management databases? Reference: ABS, p. 3-3 Similarly, owners of SF 6 equipment have taken responsibility to minimize SF 6 emissions Please describe BCTC s SF 6 emissions program, if any Reference: ABS, pp & 3-11 A note to Table states, If number of operations today is 3250 or greater the HI is divided by 4 (based on reaching 4000 operation[s] within next 5 years) Does this action imply that the number of switching operations per unit of time is the same for all circuit switchers, and is that in fact the case? Does reaching 4000 operations guarantee that an asset is in Very Poor condition, and therefore in need of a rebuild or replacement? Does the fact that a 3250-operation breaker receives a score only one quarter that of an identical 3249-operation breaker distort the results? Would a graduated reduction make more sense? 20