METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...

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Follow-up Finding and Conclusion No. VI-2 – The FE-PA Companies provided anannual list of each deficiency and major deficiency as a supplement to their 2007Annual Report of Compliance, but discontinued reporting this informationthereafter; moreover a small portion of the deficiencies are not being correctedwithin a reasonable time frame.The total number of substations in the FE-PA Companies’ service territories andthe number that were scanned from 2006 to 2009 are summarized on Exhibit VI-4. In2007, five Met-Ed substations and two Penn Power substations were energizedresulting in preventative maintenance work not scheduled for completion until 2008. In2009, Met-Ed shifted its focus to the replacement of deteriorated/aging equipment; as aresult the remaining 91 (i.e., 217-126) substations were scanned in the first quarter of2010.YearExhibit VI-4FirstEnergy <strong>Pennsylvania</strong> CompaniesNumber of Substations Scanned2006-2009Met-Ed Penelec Penn PowerSubstations Scanned Substations Scanned Substations Scanned2006 212 212 408 408 76 762007 217 212 408 408 78 762008 217 217 408 408 78 782009 217 126 408 408 78 78Source: Data Request ER-43The FE-PA Companies were also required to take corrective measures on majordeficiencies 5 within one week and within 30 days for deficiencies 6 . The number ofdeficiencies and major deficiencies from 2008 through 2010 that were not fixed in theappropriate time frame (i.e., 30 days and 7 days, respectively) are provided by FE-PACompany in Exhibit VI-5. The FE-PA Companies filed the 2007 Annual Report ofCompliance with the Commission on March 17, 2008. This report stated that each FE-PA Company completed its annual infrared scan of all 767 substations in 2007. Inaddition, a list of each deficiency and major deficiency discovered during the annualinfrared scans and the time to correct each major deficiency were provided as anAppendix to the 2007 report. However, the FE-PA Companies did not divulge anydetails about such deficiencies in their 2008 or 2009 regular annual reliability reports.According to the FE-PA Companies, the 2007 Annual Report of Compliance was thelast reporting required under the previous reliability settlement, and therefore, theFE-PA Companies discontinued this reporting. This change in reporting occurreddespite BWG’s 2007 management audit recommendation that the FE-PA Companies5 A major deficiency exists when the temperature differential between the equipment and ambient air isequal to or greater than 100 degrees centigrade.6 A deficiency exists when the temperature differential between the equipment and ambient air is between50 and 99 degrees centigrade.- 38 -
provide additional details to the Commission in the annual reliability report regardingeach deficiency and major deficiency and provide their reasons that each majordeficiency is not repaired within seven days.Exhibit VI-5FirstEnergy <strong>Pennsylvania</strong> CompaniesNumber of Deficiencies and Major DeficienciesFound and Not Fixed in a Timely Manner2008-2010Met-Ed Penelec Penn PowerFoundNotNotNotFoundFoundFixedFixedFixedMajor Deficiency 3 3 5 5 0 0Deficiency 19 11 36 22 7 4Source: Data Request ER-33The infrared scan information is of particular significance because temperature isamong the first indicators for determining the condition of equipment. Thermalirregularities occur when there’s a temperature differential between the equipment andambient air. Infrared thermography is an integral part of predictive and preventivemaintenance programs and is by far the most efficient and effective technologyavailable for locating thermal anomalies. FirstEnergy management indicated that thetime delay between the detection of a hot spot and when the schedule corrective actionis taken depends on the type and criticality of the equipment and the magnitude of themeasured temperature rise.Some of the reasons provided by the FE-PA Companies for not fixing thedeficiencies in a timely manner include unavailability of parts needed for repairs,inability to get the line out of service during summer peak conditions and inability to getoutage authorization from the PJM Interconnection (PJM). FirstEnergy managementindicated that it is not an easy task to take the problem equipment out of serviceimmediately because other parties involved, such as PJM, large industrial customersetc., will not let the EDCs take the devices out of service to get fixed during certaintimes of the year.The average cost of downtime across all industries associated with a failedsubstation could be as high as $950,000 per hour. 7 For utilities, the hourly downtimecost was approximately $650,000. Hence, in order to avoid drastic financial andoperational losses, the FE-PA Companies should strive to fix identified thermalanomalies within a reasonable time frame. The FE-PA Companies should considerperforming thermal scans of substations during the winter and early spring monthsrather than during the summer when loading is the highest. This would enable them to7According to the Information Technology (IT) Performance Engineering and Measurement Strategies:Quantifying Performance and Loss, Meta Group, October 2000 found athttp://www.acp-wa-state.org/resourcedoc/Downtime_Costs.pdf- 39 -
Page 5: METROPOLITAN EDISON COMPANYPENNSYLV
Page 8 and 9: • Support Services• Human Resou
Page 10 and 11: • Developed and implemented forma
Page 12 and 13: FIRSTENERGY PENNSYLVANIA COMPANIESM
Page 24 and 25: III. AFFILIATE INTERESTSBackground
Page 26 and 27: In addition, subsidiary or related
Page 28 and 29: BWG recommended that a detailed, wr
Page 30 and 31: management. Other potential uses of
Page 32 and 33: IV. CORPORATE GOVERNANCEBackground
Page 34 and 35: V. FINANCIAL MANAGEMENTBackground -
Page 36 and 37: the internal audit was to determine
Page 38 and 39: Committee citing the internal contr
Page 40 and 41: VI. ELECTRIC RELIABILITYBackground
Page 42: Exhibit VI-1Metropolitan Edison Com
Page 47 and 48: Exhibit VI-6FirstEnergy Pennsylvani
Page 49 and 50: All three FE-PA Companies have had
Page 51 and 52: FirstEnergy is following the right
Page 53 and 54: Company, and The Toledo Edison Comp
Page 55 and 56: technicians. These strategies are u
Page 57 and 58: VIII. EMERGENCY PREPAREDNESSBackgro
Page 59 and 60: Routine periodic updating of the em
Page 61 and 62: Follow-up Finding and Conclusion No
Page 63 and 64: old excess inventory. Spare invento
Page 65 and 66: controls were automated. Moreover,
Page 67 and 68: Exhibit IX-6FE-PA CompaniesPercenta
Page 69 and 70: FE-PA Companies were unable to iden
Page 71 and 72: Staff’s Follow-up Recommendation
Page 73 and 74: Exhibit X-6Metropolitan Edison Comp
Page 75 and 76: Prior Recommendation - Develop a co
Page 77 and 78: Therefore, BWG suggested that First
Page 79 and 80: XI. CUSTOMER SERVICEBackground - Th
Page 81 and 82: Exhibit XI-2FE-PA CompaniesPercenta
Page 83 and 84: Exhibit XI-5FE-PA Companies Compare
Page 85 and 86: Exhibit XI-7FE-PA Companies Compare
Page 87 and 88: Follow-up Finding and Conclusion No
Page 89 and 90: uilding, in an effort to protect re
Page 91 and 92: Companies would submit a supplement
Page 93 and 94:
3. The "four-fifths" rule (underuti
Page 95 and 96:
Met-Ed has female underutilization
Page 97 and 98:
Exhibit XII-4Page 1 of 2FirstEnergy
Page 99 and 100:
The number of years that FirstEnerg
Page 101 and 102:
FE-PA Companies do track purchases
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