Transcript Slide 1

Guam Power Authority
Presentation to the
Pacific Power Association
14th Annual Conference & Trade Exhibition
August 26, 2005
From Independent Power Producers to
Performance Management Contracts, Guam Power
Authority’s Long Road Towards Reliable Power
Team Members
Frank S. Blaz – GPA Manager of Generation
John J. Cruz, Jr., P.E. – GPA Manager, Strategic
Planning & Operations Research
Jennifer G. Sablan – GPA Asst. Manager,
Generation (Acting)
Arlene M. Aromin, P.E. – Special Projects
Engineer, GPA Executive Office
2
Overview
 Introduction
 History
 Performance Management- Concept
 Performance Management- Reality
 Performance Management- The Experience
 Conclusion
3
Introduction
 Pioneered Public-Private Partnerships on Guam
 Independent Power Producers
 Performance Management Contractors
4
History
 Challenges to address the ongoing emergency
and urgent need for adequate and reliable
power generation system in Guam




Depletion of Personnel Resources
Accelerated Load Growth beyond forecasts
Increased Forced Outage Rate
Load Shedding
 GENERATION EXPANSION PROJECTS



1993 – Fast Track Diesel (App 93 Mw)
1992 / 1994 – Dededo Combustion Turbine (App 45 Mw)
1995 / 1996 – Cabras 3 & 4 (App 79 Mw)
5
History- Privatization Phase I
 1996 - GPA began emergency procurement for
Independent Power Producers (IPP) & Performance
Management Contractors (PMC)

Marianas Energy Company (MEC)


Taiwan Electrical and Mechanical Engineering
Services (TEMES)


Piti 8&9 - 88 MW Slow Speed Diesel (1999)
Piti #7 - 40 MW Combustion Turbine (1997)
Pruvient Energy Guam Inc.

Tanguisson Power Plant - 53 MW Steam (1997)
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History- Privatization Phase I
 IPP Responsibilities:


Construction, operation and maintenance
Performance Guarantees (Heat Rate & Availability)
 PMC Responsibilities:



Rehabilitation, operation and maintenance
Management of GPA Employees
Performance Guarantees (Heat Rate, Availability,
EFOR)
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PMC Conceptualization
 Continued Improvement of GPA Operations


Lockbox Accounts
Further Privatization Efforts (PMC)
 Public Utilities Commission strongly
recommended the implementation of
permanent PMC


Cabras Steam Power Plant
Cabras Low Speed Diesels
 Development of RFP for privatization of
management of all GPA Baseload Plants.
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PMC - Reality
 Financing
 Budgeting
 Compensation
Structure
 Staffing
 Training
 Operations
 Maintenance
 Performance
Improvement
Projects
 Outsourcing
 Contract Terms
 Communication
 and Reporting
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PMC- Reality
Performance Management Contractors

2003 - Taiwan Electrical and Mechanical
Engineering Services (TEMES)
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
Cabras 1&2 – 132MW Steam
2005 - Doosan Engine

Cabras 3&4 – 88MW Slow Speed Diesel
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PMC – The Experience
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Equivalent Availability
Relative Heat Rate
Staff Optimization
Operations & Maintenance Spending
Personnel Overtime Spending
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IPP / PMC – The Experience
Eye Candy…
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Cabras Power Plants
Historical Vs. Post PMC Performance
Cabras 1&2 Equivalent Availability Factor
100.00%
87.00%
90.00%
82.32%
82.06%
80.00%
74.10%
69.80%
68.72%
70.00%
Post PMC
63.34%
67.03%
60.00%
50.00%
45.43%
44.34%
40.00%
39.24%
30.00%
20.00%
10.00%
0.00%
95
96
97
98
99
00
01
Fiscal/Contract Year
02
03
04
05
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Cabras Power Plants
Historical Vs. Post PMC Performance
Cabras 3&4 Equivalent Availability Factor
120.00%
PMC
95.59%
100.00%
89.78%
82.17%
88.58%
80.00%
69.24%
63.95%
60.00%
48.87%
40.00%
39.81%
20.00%
13.57%
0.00%
97
98
99
00
01
02
Fiscal/Contract Year
03
04
05
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MEC Power Plant Performance
MEC 8&9 Equivalent Availability Factor
96%
95.6%
95%
95.1%
94%
93%
94.0%
94.2%
92%
92.1%
91%
91.7%
90%
89%
1999
2000
2001
2002
2003
2004
Year
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Tanguisson Power Plant Performance
Tanguisson Unit 1&2 Equivalent Availability Factor
100%
95.6%
93.4%
90%
91.8%
88.7%
89.6%
86.4%
86.8%
80%
77.2%
70%
1
2
3
4
5
6
7
8
Contract Years (Sep '97 thru Jul '05)
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Cabras Power Plants
Historical Vs. Post PMC Performance
Plant Relative Heat Rate
(Based on Design)
115%
114%
113.63%
113%
112%
111%
110%
109%
108.66%
108%
107.40%
107%
Post PMC
106%
105%
104%
97/98
2004
Performance Test Year
2005
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Cabras Power Plants
Historical Vs. Post PMC Performance
Cabras 1&2 Plant Efficiency
14.10
14.00
13.92
13.99
13.90
13.83
(KWH/Gal)
13.80
Post PMC
13.70
13.60
13.50
13.47
13.40
13.30
13.20
2002
2003
Year
2004
2005
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PMC - Conclusions

Significant Plant Performance Improvements
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Staffing Optimization
Expedited completion of CIP/PIP (Procurement)
Heat Rate, efficiency gains
Reliability improvements
Skills improvement of O&M Personnel
Process efficiency enhancements
Economic Dispatching
 Results:
 $ Savings to GPA and its ratepayers
26
Thank You!
Questions or Comments?
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