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)
8
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.
9
PMC - Reality
Financing
Budgeting
Compensation
Structure
Staffing
Training
Operations
Maintenance
Performance
Improvement
Projects
Outsourcing
Contract Terms
Communication
and Reporting
10
PMC- Reality
Performance Management Contractors
2003 - Taiwan Electrical and Mechanical
Engineering Services (TEMES)
Cabras 1&2 – 132MW Steam
2005 - Doosan Engine
Cabras 3&4 – 88MW Slow Speed Diesel
11
PMC – The Experience
Equivalent Availability
Relative Heat Rate
Staff Optimization
Operations & Maintenance Spending
Personnel Overtime Spending
12
IPP / PMC – The Experience
Eye Candy…
16
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
18
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
22
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
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?
27