Navi Gant Maintenance Review July 2012

SRP Final Report:
High Level Benchmarking and

Maintenance Practices Review
July 2, 2012
Nav igant Reference: 157082
2012 Nav igant Consulting, Inc.

Confidential and proprietary . SRP use only .
DI S P UT E S & I NV E S T I G AT I O NS E CO NO M I CS F I NANCI AL ADV I S O RY M ANAG E M E NT CO NS ULT I NG
Disclaimer
Content of Report
This presentation was prepared by Navigant Consulting, Inc. exclusively for the benefit and internal use
of Salt River Project (SRP) and/or its affiliates or subsidiaries. No part of it may be circulated, quoted, or
reproduced for distribution outside these organization(s) without prior written approval from Navigant
Consulting, Inc. The work presented in this report represents our best efforts and judgments based on the
information available at the time this report was prepared. Navigant Consulting, Inc. is not responsible
for the readers use of, or reliance upon, the report, nor any decisions based on the report.
NAVIGANT CONSULTING, INC. MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESSED
OR IMPLIED.
Readers of the report are advised that they assume all liabilities incurred by them, or third parties, as a
result of their reliance on the report, or the data, information, findings and opinions contained in the
report.
July 2012

1
EN ER GY
List of Acronyms
Acronym
BOP
CGS
CI
CMMS
CT
EAF
EBH
EFOR
EPRI
ES
FD
FFH
FS
GKS
GT
HGP
HRSG
MI
Description
Acronym
Balance of Plant
Coronado Generating Station
Combustor Inspection
Computerized Maintenance Management System
Combustion Turbine
Equivalent Availability Factor
Equivalent Based Hours
Equivalent Forced Outage Rate
Electric Power Research Institute
Total Equivalent Starts
Forced Draft
Factor Fired Hours
Factored Starts
Generation Knowledge Service
Gas Turbine
Hot Gas Path
Heat Recovery Steam Generator
Major Inspection

MWh
NCF
NDE
NFOM
NGS
O&M
OEM
PdM
PM
POF
PRB
QA
RCA
RCM
RTF
SRP
TPC
Description
Megawatt hour
Net Capacity Factor
Non-Destructive Examination
Non-Fuel Operations and Maintenance
Navajo Generating Station
Operations and Maintenance
Original Equipment Manufacturer
Predictive Maintenance
Preventive Maintenance
Planned Outage Factor
Powder River Basin
Quality Assurance
Root Cause Analysis
Reliability Centered Maintenance
Run To Failure
Salt River Project
Total Production Cost
2
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REDACTED SRP PROPRIETARY INFORMATION
Table of Contents
Executive Summary
Project Background
Maintenance Management Practices
Cost and Performance Benchmarks
Summary of Findings and Conclusions
Recommendations

4
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Executive Summary SRP Overview

SRP Baseload plants operate at high levels of Availability and Reliability. SRPs
load following facilities perform to optimize the value of these assets in terms
of starting reliability, parts life, and cost containment. These are primarily
attributable to conforming to many of the best practices of the electric utility
industry as well as the original equipment manufacturers recommendations
for operations and maintenance techniques.
Based on SRPs reliability obligations, which requires a reduced level of risk
tolerance, the total production costs and operations and maintenance costs of
most SRP Generation facilities are notably good and as expected; however, a
couple of extraordinary events over the last ten years have driven costs higher
than would have been anticipated.
The Salt River Project Agricultural Improvement and Power District division
of SRP is a political subdivision of the state of Arizona which provides
electricity to nearly 934,000 retail customers in the Phoenix area.

5
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SRP has an obligation to serve, similar to some other types of power
companies, but different from other types of power producers such as
merchant generators.
Power companies like SRP that have an obligation to serve typically operate
with a different set of objectives than those without the obligation to serve,
including:
More conservative approaches to operations and maintenance.
Units designed with more equipment redundancy to enhance reliability.
More risk adverse.
The differences in objectives between the various types of power producers

represented in this report could be a factor which impacts some of the
benchmark metrics being evaluated.

6
EN ER GY

Navigant Consulting was asked to perform an independent high level review of
maintenance practices and a high level review of the cost and performance for the
units listed in the project background section. A high level summary of our
findings follow.
Overall the SRP fleet is operated and maintained within industry standards
and norms which have resulted in good levels of reliability. No fatal flaws in
their operating and/or maintenance efforts were uncovered in our high level
review. The company has, however, faced technical issues in regards to
specific gas fired units. These technical issues have been or are in the process
of being resolved.
SRP has invested in some leading edge performance monitoring and
predictive maintenance processes, including the Performance Diagnostic
Center, fleetwide SmartSignal and EtaPro monitoring.
It is noted that the coal units, which account for 30% of SRPs generating
capacity and 66% of their MWh production, have top quartile levels of
availability and 2nd quartile levels of NFOM and total production cost.
7
EN ER GY

For the gas steam, combined cycle and combustion turbine units their
availability levels are in the 2nd quartile range but they do have challenges in
the cost area with all units having 4th quartile levels of total production costs.
To better understand these higher levels of cost will require additional
analysis. However, as noted earlier, our experience has shown these higher
levels of costs are typically driven by several factors including a companys
tolerance for risk, response to specific market conditions/requirements, specific
component failures and their overall maintenance philosophy.

8
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Executive Summary SRP Capacity, Generation and Cost

Distribution *
SRP Capacity by Technology
SRP Electrical Production by Technology

1%
9%
10%
<1%
30%
33%
Coal
Combined Cycle
Gas Steam
Combustion Turbine
66%
51%
Coal and Combined Cycle units make up

81% of the reviewed MW capacity, 99% of
generation and 89% of NFOM cost.
Gas steam and combustion turbine units,
while fulfilling an important role in
meeting SRP s obligation to serve, make
up only 19% of the reviewed MW capacity,
1% of generation and 11% of NFOM cost.
SRP NFOM Cost by Technology

9%
2%
49%
40%
* Percentages are representative of the SRP plants (including SRPs 21.7% ownership share of Navajo
Generating Station) reviewed in this report only and not inclusive of SRPs total generation capability.
9
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Executive Summary Coal Units

Technology
Equivalent
Availability
Factor
Equivalent
Forced
Outage Rate
Net Capacity
Factor
Total
Production
Cost
Non-Fuel
O&M Cost
Coal
Coal plants are operating at a very high level of Availability and Reliability
with below median NFOM cost.
Trends in Availability, Reliability and NFOM cost are consistent with or better
than peers.
Achieving elite status (top quartile in both availability and NFOM cost)
would require reductions in NFOM cost without compromising current
availability and reliability performance.
Plant maintenance practices are above average and conform to both OEM and
industry standard guidelines.
Legend:
Top quartile
Second quartile
Third quartile
Fourth quartile
Note: Quartile rankings reflect the capacity weighted performance of all units in the group.
10
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Executive Summary Combined Cycle Units

Technology
Equivalent
Availability
Factor
Equivalent
Forced
Outage Rate
Net Capacity
Factor
Total
Production
Cost
Non-Fuel
O&M Cost
Combined Cycle
Combined cycle cost and performance varies across the units.

Starting Reliability is excellent for all units.
STAG technology NFOM cost is very competitive; F class NFOM cost tends to
be high, driven by maintenance, most likely associated with a large number of
start/stop cycles and technical issues.
Availability and reliability is generally good, with the exception of Desert
Basin, which is fourth quartile in both measures.
Plant maintenance practices conform to both OEM and industry standard
guidelines.
Legend:
Top quartile
Second quartile
Third quartile
Fourth quartile
11
EN ER GY
Executive Summary Gas Steam Units

Technology
Equivalent
Availability
Factor
Equivalent
Forced
Outage
Rate
Net Capacity
Factor
Starting
Reliability
Total
Production
Cost
Non-Fuel
O&M Cost
Gas Steam
The gas steam units operate at varied levels of performance.

High NFOM cost is largely driven by high maintenance cost. The Agua Fria
plant has adjusted manpower levels and the NFOM cost trend has improved
over the last three years compared to the peer group median.
High Planned Outage Factor (POF) is due to the plants maintenance
philosophy which takes advantage of long off-peak periods and is consistent
with industry standard practice for similar operating regimes.
While Agua Fria 1 and Agua Fria 3 have outstanding reliability performance
for the ten year evaluation period, Agua Fria 2 has experienced high
unreliability in 2002, 2007, 2010 and 2011.
guidelines.
Legend:
Top quartile
Second quartile
Third quartile
Fourth quartile
12
EN ER GY
Executive Summary Combustion Turbine Units

Technology
Equivalent
Availability
Factor
Equivalent
Forced
Outage
Rate
Net Capacity
Factor
Starting
Reliability
Total
Production
Cost
Non-Fuel
O&M Cost
CT
The combustion turbines generally do not perform as good as peer units.

High NFOM cost is largely driven by high maintenance cost combined with
third quartile operations cost. For Agua Fria, this trend will likely not continue
because the plant has adjusted manpower levels and the NFOM cost trend has
improved over the last three years compared to the peer group median.
High maintenance cost was partly attributed to major overhauls associated
with many years of accumulated wear from periodic inspections.
Availability is slightly below peers, but generally within acceptable levels.
Outage performance (planned, unplanned and forced) is at varied levels of
performance, frequently driven by large events.
guidelines.
Legend:
Top quartile
Second quartile
Third quartile
Fourth quartile
13
EN ER GY
Table of Contents
Executive Summary
Project Background
Recommendations

14
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Project Background
SRP engaged Navigant in April 2012 to benchmark and review major outage
maintenance practices for six fossil generation sites:
Coronado (coal)
Navajo (coal)
Agua Fria (gas)
Desert Basin (gas)
Kyrene (gas)
Santan (gas)
Navigant conducted interviews at each site to evaluate major outage

maintenance practices*. Navigant assessed these practices in relation to
generally accepted industry best practices in North America.
Navigant developed high level benchmarks of cost and performance at each
unit for either a six or ten year period, consisting of:
Non-fuel O&M costs ($/MWh or $/kw-year as appropriate), further broken down into
operations and maintenance costs, and
Key performance measures (EAF, EFOR, NCF, starting reliability, etc.).
* Except Kyrene because management is shared between Kyrene and Santan
15
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Project Background
Scatter and trend charts were developed for the cost and performance
measures.
Scatter charts display two parameters on a single chart for comparison purposes, with
peer group median, top quartile and top decile lines for each variable.
Trend charts display a single variable plotted with annual data over the specific
evaluation period ( 10 years or 6 years), showing either group average or individual
SRP unit data along with peer group median and top quartile values.
o Individual unit trend plots often exhibit significant variability from year to year compared to
the median and top quartile trend lines which tend to be smoothed due to the larger number
of peer units being evaluated.
o This high year to year variability occurs most often when plotting NFOM cost due to the large
impact of major outages during a given year.
Relevant charts were selected for each peer group and included in the Cost and
Performance section of the report.
Notes:
1. All trend charts shown in the Cost and Performance section of the report show SRP unit data as an average
of the SRP units in the particular peer group.
2. A full set of both average and individual unit trend charts is included in the supplemental reference report.
16
EN ER GY
Project Approach
Navigants project approach included four steps.
1: Kickoff Project
Kickoff
meeting
Verify cost and

performance
information
Develop peer
group
requirements
Conduct site
interviews

3: Extract Peer
Data
2: Collect Data
Work with SRP

on cost and
performance
data collection
Verify data is
comparable to
GKS database
4: Prepare Draft and

Final Report
Finalize peer
group criteria
Finalize data
analysis
Extract peer
group data
from GKS
database
Prepare draft
report
SRP reviews
draft report
Implement
SRP comments
into final
report
17
EN ER GY
Project Approach Cost and Performance Data

All Non-Fuel Operations and Maintenance (NFOM) costs include both expense
and replacement capital costs.
Inclusion of replacement capital costs assures an equitable comparison of NFOM
costs given the diversity of capitalization policies that exist between companies.
Cost and performance data for peer units is from Navigants Generation
Knowledge Service (GKS) data base
All data is validated through a rigorous QA process.
Cost and performance data for SRP units is supplied by SRP in accordance with
Navigants GKS data input guidelines.

18
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Table of Contents
Executive Summary
Project Background
Recommendations

19
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Navigants assessment of maintenance management practices is divided into
the following categories:
Maintenance program
o General program definitions
o Awareness of the program
o Identification of high priority problems
Maintenance planning process

o Long range outage plans
o Detailed outage planning
Outage management
o Planning practices
o Outage record management
Work management process

o Implementation and use of CMMS
o Efficient scheduling of work
Conduct of maintenance
o Periodic preventive maintenance
o Condition based / predictive maintenance
o Corrective Maintenance

20
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Table of Contents
Coronado (coal)
Navajo (coal)
Agua Fria (gas)
Desert Basin (gas)

Santan and Kyrene (gas)
Review of Historical Gas Turbine Outage Intervals

21
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Coronado Plant Overview

Coronado Generating Station is located near St. Johns, AZ, owned 100% by
SRP.
Units 1-2: Two coal fired steam generation units, first fire between 1979 and
1980.
Total station generating capacity is approximately 785 MW.
Coronado provides base load and load following power and burns Powder
River Basin (PRB) coal from Wyoming.

22
EN ER GY
Coronado Maintenance Program Observations

#
Maintenance Program Best Practice
Plant maintenance is based on criticality of plant

equipment and contribution to business objectives
A list of critical equipment and Run-to-Failure (RTF)

equipment was identified as an outcome of a Reliability
Centered Maintenance (RCM) type analysis.
Corrective and preventive maintenance are

properly balanced
Plant estimates approximate ratio of PM to CM at 60/40. This

is within typical industry range.
Value of unit improvements is communicated

across plant personnel
Plant personnel have a good understanding of the importance

and value of reliability improvements.
Improvement opportunities are openly shared

with other SRP plants
Discussions with other plants occur, but process appears to

lack the structure seen at some other best performing
companies.
Consistent methodology is in place to analyze and

record equipment history
Equipment history is recorded in MAXIMO.
Formal root cause analysis is systematically

performed on high impact events
RCA process (REASON) has been in place for about 6 years.

Observations at Coronado
23
EN ER GY
Coronado Maintenance Planning Observations

#
Maintenance Planning Best Practice
Long-range outage and major maintenance plan

exists and is reviewed periodically
A 10-year outage planning schedule is used.
Durations between outages are consistent with the

business drivers and risks are appropriately
managed
Both units are on a 3 year major outage cycle (nominal 3 week

duration) and a 1 week spring tune up outage in non-major
years.
Outage intervals are well within OEM and industry standard
guidelines.
Outage planning process allows adequate

planning for projects requiring material with long
lead times
Outage planning begins at the conclusion of the previous

outage, allowing sufficient time for long lead time items.
Advanced planning is established for scheduled

and unscheduled outages
Primavera is used to generate a pre-outage milestone chart.

Plant also uses a stoplight approach to conduct four
readiness assessment meetings prior to the outage.
Outage scope is frozen 4-5 months prior to breaker open.
Outage and maintenance work scopes are clearly

defined and planned
One planner is dedicated to full time outage planning.

Outage work scopes are built within the MAXIMO
maintenance management system.
Maintenance history records and utility industry

experience are appropriately considered in
planning for maintenance
Plant uses outage lessons learned, MAXIMO work history,

OEM bulletins and attends industry forums to effectively plan
their overhaul maintenance.

24
EN ER GY
Coronado Outage Management Observations

#
Outage Management Best Practice
Overall outage planning maximizes plant run

time and minimizes forced, scheduled and
maintenance outages
The combination of the 3 year outage cycle and the 3 week

outage durations has contributed to CGS achieving top
quartile industry performance in EAF during the ten year
2002 2011 evaluation year period.
Outages are effectively planned with well-defined

authorization, organization, work scope,
schedules and resources
Outage manager is assigned along with an outage

organization.
All required resources are loaded into the Primavera
schedule, including contractors being integrated into the work
schedule.
Outage scope list contains all planned tasks with

assigned work groups and resource estimates for
completing the work
Detailed job plans with assigned responsibility and resource

requirements are used.
Base overhaul activities are built into the MAXIMO work
management system.
80,000-110,000 man-hours is a typical overhaul resource
loading.
Outage inspection results are evaluated and

approved work scope changes are implemented
into the outage
The outage manager must approve all scope changes.

CGS utilizes a Change Management Tracking Form to
facilitate this process (CGS specific).
Work schedules and completion status are

reviewed on a regular basis
Daily outage meetings are conducted in the morning

(coordination) and afternoon (controls team).
Budget is updated daily during the outage.
Post-outage reviews are conducted, for both

planned and forced outages
Post outage critique meeting held with both SRP staff and
contractors.
CGS does not utilize a post-outage reliability indicator.

25
EN ER GY
Coronado Work Management Observations

#
Work Management Best Practice

All work requests are evaluated, planned and
processed using Computerized Maintenance
Management System (CMMS)
MAXIMO is used to document all work requests.
The system is utilized by all plant people

reflecting the overall business strategy
Level of utilization by plant work force is typical for the

industry.
Craft do not enter closing comments directly into MAXIMO.
Work requests are screened and approved by

knowledgeable personnel based on value and
company business goals
Corrective maintenance work order priority is reviewed by

the shift supervisor.
The Gatekeeper concept should be employed, if not
already in existence.
All work orders are tracked in MAXIMO.
Requested and approved work activities are

tracked in the CMMS until the work order is
closed
Scheduling of maintenance uses available

manpower effectively and avoids unnecessary
removal of equipment and systems
Schedule compliance is one of the work management

indicators tracked by the plant.
Maintenance history is periodically and

systematically reviewed and problems trended
Plant tracks major unreliability events.

Unclear if routine corrective maintenance items are
periodically evaluated for trends, possible inclusion in the PM
program, etc.
Identification, selection, and scheduling of work

activities incorporate applicable lessons learned
from operating experience
Operations is directly involved in providing input on

scheduling work.

26
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Coronado Maintenance Conduct Observations

#
Maintenance Conduct Best Practice
Preventive maintenance is not waived or deferred

for extended periods
PM compliance is one of the work management indicators

tracked with the goal of 100% compliance.
Preventive maintenance documentation is

appropriately maintained and easily accessible to
all people in the plant
PMs are documented in MAXIMO.
Effectiveness of preventive maintenance work is

periodically evaluated and improvements are
made
Any changes to a PM require maintenance manager and

engineering approval.
No formal structure for evaluating the effectiveness of PMs
exists.
Predictive maintenance (PdM) activities are

determined and considered for components that
affect safe and reliable plant operations
PdM program is mature and overseen by the engineering

group.
Smart Signal is being used and positive results have been
achieved (e.g.- Unit 1 FD fan)
SRP has established a Performance Diagnostic Center to
monitor Smart Signal parameters centrally as well as locally.
Condition monitoring techniques (e.g. vibration

analysis, oil analysis) are used to assess
equipment performance
The comprehensiveness of the CGS PdM program is typical

for the industry.
Corrective maintenance includes root cause

analysis, and evaluation of alternatives using the
economic worth of unit improvement
A formal root cause analysis process is used for significant

events (e.g.- safety, reliability, etc.)

27
EN ER GY
Coronado General Observations

General observations from the plant tour and interviews with plant
management are:
Plant personnel are very knowledgeable and take a lot of pride in the performance of
the CGS station.
Plant cleanliness and material condition was average for a plant of this age and
technology.
Plant has developed a number of good practices that SRP should consider for
replication at other facilities (e.g.- readiness assessment stop light process; change
management tracking form, etc.)
The maintenance management practices observed were above average and conformed
with both OEM and industry standard guidelines.

28
EN ER GY
Table of Contents
Coronado (coal)
Navajo (coal)
Agua Fria (gas)
Desert Basin (gas)


29
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Navajo Plant Overview

Navajo Generating Station is located near Page, AZ and operated by SRP, which
has a 21.7% ownership.
Units 1-3: Three coal fired steam generation units, first fire between 1974 and
1976.
Total station generating capacity is 2,250 MW.
Navajo provides base load power and receives low sulfur bituminous coal from
Peabody Western Coal Company's Kayenta Mine (78 miles to the southeast).

30
EN ER GY
Navajo Maintenance Program Observations

#

A list of critical equipment (priority equipment) was

developed about 5 years ago.

properly balanced
The reported PM to CM ratio is 65% PM to 35% CM.

CM includes emergent work which is sponsored work that
breaks the schedule.

Plant personnel have a good understanding of the importance

and value of reliability improvements.

Discussions with other plants occur, but process appears to

lack the structure seen at some other best performing
companies.

Equipment history is recorded in MAXIMO.

RCA process (Think Reliability) has been in place for about 3

years.

Observations at Navajo
31
EN ER GY
Navajo Maintenance Planning Observations

#

A long term (> 5 years) outage planning schedule is used.

managed
All three units are on an alternating 3 year major / minor

outage cycle (major every 6 years / minor every 6 years)
Outage intervals are well within OEM and industry standard
guidelines.

lead times
Outage planning begins at the conclusion of the previous

outage, allowing sufficient time for long lead time items.
NGS currently has 2 planners / schedulers dedicated to
overhaul scheduling.

Primavera is used to generate a pre-outage milestone chart.

Outage scope is frozen 3 months prior to breaker open.
A forced outage process exists which seeks to maximize the
effectiveness of work done during a forced outage.

defined and planned
Outage scope is determined by the maintenance and

engineering departments.
Outage work scopes are built within the MAXIMO
maintenance management system.

Plant uses outage lessons learned, MAXIMO work history,

OEM bulletins and attends industry forums to effectively plan
their overhaul maintenance.

32
EN ER GY
Navajo Outage Management Observations

#

maintenance outages
The combination of the 3 year alternating major / minor

outage cycle with the 8 week (major) / 4 week (minor) outage
durations has contributed to NGS achieving top quartile
industry performance in EAF during the ten year 2002 2011
evaluation year period.

Outage manager is assigned along with an outage

organization.
All required resources are loaded into the Primavera
schedule, including contractors.

completing the work
Detailed job plans with assigned responsibility and resource

requirements are used.

into the outage
Equipment inspections are scheduled in the first part of the

outage to provide maximum opportunity to react to out of
scope items needing corrective maintenance.
Scope changes between T-3 months to breaker open require
approval of the maintenance manager.

Daily outage meetings are conducted in the morning and

attended by all affected departments, including contractors.

Post outage critique meeting held with both SRP staff and
contractors.
NGS does not currently utilize a post-outage reliability
indicator (planned for current Fiscal Year) and post-outage
reliability was poor during the last three outages reviewed.

33
EN ER GY
Navajo Work Management Observations

#

MAXIMO is used to document all work requests.

Level of utilization by plant work force is typical for the

industry.

The Gatekeeper concept, where all work flows through a

single entity to verify priority, has been in place for 4-5 years.
This is a best practice.
Operations (gatekeeper) participates in the weekly schedule
commitment meeting to insure buy-in to the coming weeks
schedule.

closed
All work orders are tracked in MAXIMO.

Plant works off of weekly schedules that are finalized on

Thursday of the previous week.
80% or higher of available manpower is scheduled.

Plant tracks major unreliability events.

Unclear if routine corrective maintenance items are
periodically evaluated for trends, possible inclusion in the PM
program, etc.

Foreman build the schedule with operations input provided

by the Gatekeeper and Work Management Committee.
Gatekeeper routinely adds and deletes jobs from the schedule.

34
EN ER GY
Navajo Maintenance Conduct Observations

#

PM compliance is > 85%, with a goal of 100%; however all

PMs are ultimately completed even if they were not
completed in the week they were originally scheduled.
In 2011 the plant completed 11,018 PMs and cancelled 352.
The plant estimates that less than 2% of corrective work
orders written are priority 3 (high priority) work orders.
Sponsored (emergent work) is currently running at 18% and
trending down.

PMs are documented in MAXIMO.

periodically evaluated and improvements are
made
PM optimization was completed 4 years ago using the EPRI

PM basis by a cross departmental team.
No formal structure for evaluating the ongoing effectiveness
of PMs or making changes to a PM exists.

PdM program is mature and overseen by engineering.


The comprehensiveness of the NGS PdM program is typical

for the industry.

A formal root cause analysis process is used for significant

events (e.g.- safety, reliability, etc.)

35
EN ER GY
Navajo General Observations

management are:
The material condition of the assets and plant cleanliness was above average for coal
plants of similar size and technology.
The people interviewed were professional, engaged in their work and took great pride
in the accomplishments of the station.
Some areas noted by the interviewees as improvement opportunities were:
o Improve pre-outage process rigor.
o Better reporting of MAXIMO items to update Primavera during the outage.
o Improve the post-outage critique process.
o Provide additional analytical tools to monitor daily work management.

36
EN ER GY
Table of Contents
Coronado (coal)
Navajo (coal)
Agua Fria (gas)
Desert Basin (gas)


37
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Agua Fria Plant Overview

Agua Fria Generating Station is located in Peoria, AZ, owned 100% by SRP.
Units 1-3: Three steam generation units, first fire between 1958 and 1961.
Units 4-6: Three / Westinghouse W501B gas turbines in simple cycle

configuration, first fire between 1974 and 1975.
Agua Fria supplements base-load plants and adds power during peak
demands. Agua Fria can produce power within 20-30 minutes.

38
EN ER GY
Agua Fria Maintenance Program Observations

#
Observations at Agua Fria

Gas turbines are maintained to OEM recommendations.

Plant is working on definition of critical equipment to support
upcoming Maximo upgrade, to be completed in 2-3 years.

properly balanced
Current mix is about 1/3 corrective and 2/3 preventive.

Critical equipment definition will help to perform more
condition based maintenance.

Plant personnel buys into the concept that unit value

determines their future and takes pride in maintaining units.

Corporate Engineering supports plant level improvements

and promotes sharing across SRP.

Major equipment history is consistently tracked by the plant.

RCA process is established.

RCA is conducted based on plant management discretion, no
documented criteria when RCA is required.
Communication methods with equipment

vendors to identify problem areas are in place
OEM is consulted for complex problems.

Plant technology is very mature and plant personnel are
knowledgeable about equipment problems.

39
EN ER GY
Agua Fria Maintenance Planning Observations

#

Outage plan coincides with six year corporate financial plan.

Plan is further refined about 1.5 years before outage.
Plant will use 3 month off-peak period to bid out work
competitively in the future.

managed
Plant schedules outages to optimize plant availability during

peak periods within OEM guidelines for outage intervals.
Equipment is monitored using predictive maintenance.

lead times
Outage scope for long lead time items is defined ahead of

time, in conjunction with 1.5 year outage plan.
A documented process does not exist.

Unscheduled outages are reviewed with dispatch and moved

to the least disruptive times.

defined and planned
Work scopes are defined in Maximo and scheduling detail is

planned in Primavera.
Maintenance history records are maintained and

accessible
Gas turbine maintenance records are tracked by plant.

Outage reports are taken into consideration for future outage
planning.

Plant personnel keep up with the latest service bulletins for

gas turbines and have implemented all applicable bulletins.
Plant participates in gas turbine user group that also covers
BOP.

40
EN ER GY
Agua Fria Outage Management Observations

#

maintenance outages
Outage planning ensures that peek periods have high unit

availability, because plant reliability is critical then.
Impact of forced outages is mitigated by utilizing other plant
equipment or using other SRP assets identified by dispatch

Outage scope is determined jointly between Plant

Management, Planner, Foremen, Maintenance Supervisors,
Engineers and other appropriate functional groups.
Approach is to disassemble unit and bid required work out
competitively.

completing the work
The planned outage scope defines high level tasks until visual
inspection determines actual work scope, because work is bid
out based on actual wear and tear.

into the outage
Previous outage reports are used to build a high level

schedule.
For future outages, Maintenance Manager and Supervisors
will approve competitive bids that meet the plants needs.

Planner and Maintenance Manager keep track of the overall

schedule twice a week formally and daily informally.
Outage records are compiled with inspection

results, deferred work, remedial work plans, and
relevant outage correspondence
Main component outage reports are used and acted upon for
long term planning.

For some forced outages, an RCA is performed.

Post-outage performance indicators are not in place.

41
EN ER GY
Agua Fria Work Management Observations

#

Maximo is currently used; an update to a new Maximo

version is in progress, scheduled for June 2012.
All work is performed through Maximo.

Everybody inside the plant can enter work orders.

Shift Supervisors approve the work orders.
Maintenance Manager can reprioritize work orders.

Maintenance Manager reviews all work orders for importance

and value.

closed
All work orders are maintained in Maximo.

Periodic backlog review is performed.
Work orders older than 1 year are re-prioritized annually.

Future maintenance events will be bid competitively.

Internal crews will work on auxiliary equipment.
Units are disassembled and only necessary work is
performed.

All repair reports are maintained and used to plan the long
term maintenance scope.

Operating experience is considered when scheduling

maintenance work and to determine outage scope.
Further input will be critical equipment definitions once
completed in Maximo.

42
EN ER GY
Agua Fria Maintenance Conduct Observations

#

Preventive maintenance for gas turbines is performed in

accordance with OEM recommendations.
BOP follows gas turbine outage schedule and will transition
to more predictive maintenance approaches over time.

All documentation is stored and used for future outage

planning.
Maximo is the system of record.

periodically evaluated improvements are made
Preventive maintenance documentation is used to evaluate

future maintenance work scope for BOP.

After critical equipment is determined, plant will be using

more predictive maintenance approaches.
OEM recommendations are followed for gas turbines.

Plant uses oil analysis, vibration monitoring on GTs and

larger BOP equipment, thermography, motor current analysis,
and reviews of equipment temperatures.

Root cause analysis is performed as per management

discretion.
No documented requirements for when an RCA must be
initiated.

43
EN ER GY
Agua Fria General Observations

management are:
The plant is in a well maintained state, all areas are clean, no debris is accumulated.
The gas turbines are visually in good condition and have been well maintained.
The turbine compartments and other structural elements show some signs of wear
that is mostly cosmetic (for example peeling paint).
Plant management shows pride in
o Team commitment and the perception that goals are well aligned across teams
o Strong record of plant safety and availability
o Dedication and level of experience in workforce

o Availability of all tools and fixtures to perform high quality repairs in house

44
EN ER GY
Table of Contents
Coronado (coal)
Navajo (coal)
Agua Fria (gas)
Desert Basin (gas)


45
EN ER GY
Desert Basin Plant Overview

Desert Basin Generating Station is located in Casa Grande, AZ, owned 100% by
SRP.
Desert Basin consists of two Siemens W501F gas turbines in combined cycle
configuration with one steam turbine shared by the gas turbines, first fire in
2001.
SRP purchased the plant in October 2003 from Reliant Resources, Inc.
Desert Basin supports SRP's growing resource need. With its proximity to
metropolitan Phoenix, Desert Basin increases SRP's long-term reliability. SRP is
planning to install a grid tie into SRPs transmission system. So far, the unit has
used third party transmission lines for a fee.

46
EN ER GY
Desert Basin Maintenance Program Observations

#
Observations at Desert Basin


Critical BOP items are closely monitored and maintained with
the gas turbines or while the plant is not dispatched.

properly balanced
Current mix is about 25% corrective and 75% preventive.

Plant uses several methods of predictive maintenance to
optimize outages for BOP equipment.

Plant personnel buys into concept that unit value determines

their future and takes pride in maintaining units.

Plants have a good working relationship and share workforce

if crews are available.
Technology sharing is limited because the gas turbine
technology at the plant is unique.

Major equipment history is consistently tracked using

condition monitoring approaches.

RCA process is established using REASON software, results

are shared with SRP corporate departments.
RCA is triggered for any events with a cost impact greater
$100k and for recurring problems.

Plant seeks OEM support to mitigate problems.

OEM customer service is not always as desired by the plant.

47
EN ER GY
Desert Basin Maintenance Planning Observations

#

Ten year outage plan maintained that synchs with six year
corporate financial plan.
Purchase Orders are placed around 2 years in advance.
Outage scope is frozen around 6 months before the outage.

managed

peak periods.
Equipment is monitored using predictive maintenance.

lead times

time, in conjunction with the long term outage plan.


to the most economical time possible.

defined and planned
Work scopes are defined in Maximo.

accessible
Outage reports are taken into consideration for future outage

planning.

Plant personnel keep up with latest service bulletins for gas

turbines and have implemented all applicable bulletins.
Plant upgraded turbine controls to increase starting reliability.

48
EN ER GY
Desert Basin Outage Management Observations

#

maintenance outages
Outage planning goal is to maximize peek period availability.

Impact of forced outages is mitigated by utilizing other plant
equipment or using other SRP assets identified by dispatch.

Outage scope is determined by all members of the plant

management team.
Day to day outage work is managed by O&M Manager and
Maintenance Supervisor.

completing the work
Plant performs outage work with a mix of internal crew and

external, competitive bids for major work.

into the outage
Previous outage reports are used to build a high level

schedule.
Emergent work scope during the outage is evaluated and
implemented if deemed necessary by plant management.

Planner (same person as Maintenance Supervisor) conducts

daily meetings during outage.
Meeting includes contractor representatives.

Main component outage reports are used and acted upon for
long term planning.

RCA is performed for outages above the RCA threshold.


49
EN ER GY
Desert Basin Work Management Observations

#




O&M Manager reviews all work orders for importance and

value.

closed

Periodic backlog review is performed.
Oldest work orders are about 2.5 years old.

Maintenance events are performed using a combination of

internal crews and contractors.
Internal manpower of 7 maintenance staff not sufficient for
larger outages, for which contractors are used.

All repair reports are maintained and used to plan long term
maintenance scope.

Operating experience is considered as one factor for

scheduling maintenance work when outage scope is
determined.
Working with EPRI to identify critical equipment.


Shift Supervisors approve the work orders.
O&M Manager can reprioritize work orders.
Work is assigned during daily morning meeting.
50
EN ER GY
Desert Basin Maintenance Conduct Observations

#


BOP is closely monitored and frequently maintained.


planning.
Maximo is the system of record.



After critical equipment is determined with EPRIs support,

plant will be using more predictive maintenance approaches.
OEM recommendations are followed for gas turbines.

Plant uses oil analysis, vibration monitoring on GTs and

larger BOP equipment, thermography for HRSG, motor
current analysis, NDE, and OEM turbine monitoring.

Root cause analysis is performed.

Plant doesnt perform a formal cost benefit analysis, but an
informal review is always undertaken.

51
EN ER GY
Desert Basin General Observations

management are:
The plant is in a well maintained state, all areas are clean
Due to major ongoing outage work on CT2, the plant floor was filled with parts, but
remained neatly organized
The plant updated the gas turbines with improved controls for better starting
capability and uprated hardware to enable longer outage intervals. Both investments
will improve plant performance in the future
o Staff empowerment and ability to make good decisions for the plant
o No barriers between departments and very good inter-departmental communication

o Availability of all tools and fixtures to perform high quality repairs in house

52
EN ER GY
Table of Contents
Coronado (coal)
Navajo (coal)
Desert Basin (gas)
Agua Fria (gas)


53
EN ER GY
Santan Plant Overview

Santan Generating Station is located in Gilbert, AZ, owned 100% by SRP.
Units 1-4: Four General Electric 7E gas turbines in combined-cycle
configuration, 1 gas turbine per steam turbine on single shaft (STAG), first fire
1974-75.
Unit 5: Two General Electric 7FA gas turbines in combined cycle configuration,
2 gas turbines per steam turbine, first fire in 2005.
Unit 6: One General Electric 7FA gas turbine in combined cycle configuration,
one gas turbine per steam turbine, first fire in 2006.
Total station generating capacity is approximately 1,193 MW.
Santan is used to supplement base-load plants. The plant is capable of
producing power within 20 to 60 minutes.

54
EN ER GY
Kyrene Plant Overview

Kyrene Generating Station is located in Tempe, AZ, owned 100% by SRP.
Units 1-3 are not included in the report because they are no longer typically
operated.
Unit 4: One Westinghouse 501B in simple cycle configuration, first fire in early
1970s.
Units 5-6: Two General Electric 7B gas turbines in simple cycle configuration,
first fire in early 1970s.
Unit 7: One General Electric 7FA gas turbine in combined cycle configuration,
one gas turbine per steam turbine, first fire in 2002.
Kyrene increases the reliability of the local electric system. Depending on the
unit, Kyrene can produce power within 10 to 30 minutes to meet peak
demands.

55
EN ER GY
Santan/Kyrene Maintenance Program Observations

#
1
Observations at Santan/Kyrene


Condition based maintenance is used for BOP equipment.
General philosophy is to maintain equipment within intervals
that ensure a safety margin.

properly balanced
Current mix is about 1/3 preventive and 1/3 predictive and 1/3
corrective maintenance.
Moving to more condition based and predictive maintenance.

Plant personnel buys into concept that unit value determines

their future and takes pride in maintaining units.

Santan and Kyrene share management and parts.

SRPs other gas plants operate different gas turbine
technologies with limited sharing opportunities.
Corporate Engineering supports plant level improvements.

Major equipment history is consistently tracked.

RCA is established, sometimes pulling in Corporate

Engineering, OEM or insurance company for additional
support.

OEM is a source of input for critical equipment problems, for

example GE will conduct an RCA for certain equipment.

56
EN ER GY
Santan/Kyrene Maintenance Planning Observations

#

Outage plan coincides with six year corporate financial plan.

Plan is further refined as outage start dates become closer.

managed

peak periods.
Equipment is frequently monitored using various predictive
maintenance approaches.

lead times

time.


to the least disruptive times.

defined and planned
Work scopes are defined in Maximo and further detail is

planned in Primavera.
Not all work scopes are planned, in particular smaller items.

accessible
Gas turbine maintenance records are centrally tracked for

Santan and Kyrene.
Every repair report is used and acted upon for long term
planning.

About a third of all maintenance is condition based with the

goal to increase this ratio over time.
Plant participates in gas turbine user group that also covers
BOP, but tends to be more conservative for outage intervals.

57
EN ER GY
Santan/Kyrene Outage Management Observations

#

maintenance outages
Outage planning goal is to maximize peek period availability.

Off peek periods are used for maintenance.

Outage scope is determined jointly between Plant

Management and Supervisors of all departments.
BOP outages are scheduled around the GT outages.

completing the work
The outage scope is defined with tasks to be completed, in

house crews and contractors assigned.
Scope is frozen 6 months prior to outage.

into the outage
Planner keeps track of the overall schedule and the plant

management determines if emergent work can be
implemented in the current outage or is postponed.

Milestone meetings are held with shortened intervals as the

outage gets closer.
During the outage, plant management performs a daily scope
review.

Every repair report is used and acted upon for long term
planning.

For forced outages, an RCA is performed.


58
EN ER GY
Santan/Kyrene Work Management Observations

#



Planner reviews all work orders for importance and value.


closed

Quarterly backlog review is performed.
Obsolete work orders are deleted annually.

Planner optimizes work orders so that when a system is

maintained associated work orders are performed
concurrently.

All repair reports are maintained and used for long term
maintenance.

Predictive and condition based maintenance experience is

build into the work schedules.
Exception are gas turbines where maintenance is performed
to OEM specifications.


Planner prioritizes work orders.
Plant management has ability to override.
Operations Supervisor determines daily work.
59
EN ER GY
Santan/Kyrene Maintenance Conduct Observations

#


BOP is in the process of transition to more predictive
maintenance approaches.


planning.



Plant is planning to transition more to predictive maintenance

approaches, with the exception of gas turbines where OEM
recommendations are followed.

Plant uses oil sampling (mainly transformers and rotating

equipment) (EtaPro), vibration monitoring on GTs and larger
BOP equipment, thermography, motor current analysis and
Combustion Dynamics Monitoring (CDM).
Smart Signal is used to monitor key equipment of the
combined cycle trains.

Root cause analysis is performed for all incidents determined

critical by Plant Management.

60
EN ER GY
Santan/Kyrene General Observations

General observations from the plant tour at Santan and interviews with plant
management are:
The Santan plant is in a well maintained state, all areas are clean without any debris
The Santan gas turbines are visually in good condition and have been well maintained
Plant Management is very engaged in the maintenance program
o Breadth and depth of workforce talent, which provides the plant with many in-house
capabilities
o Excellent collaboration between operations, maintenance and engineering
Note that Navigant did not tour the Kyrene plant due to scheduling conflicts.

61
EN ER GY
Table of Contents
Coronado (coal)
Navajo (coal)
Desert Basin (gas)
Agua Fria (gas)


62
EN ER GY
OEM Recommended Outage Intervals by Technology

General Electric
Publication GER-3620L.1 (10/10)
Siemens / Westinghouse
Service Bulletin 36803 Rev. 10
7241 FA+e
Santan (SA) 5a, 5b and 6 - Kyrene 7
W501F
Desert Basin CT 1 and CT2
Combustion
Inspection
(CI)
Hot Gas Path

Inspection
(HGP)
Major
Inspection
(MI)
Factored
Starts
(FS)
450
900
2,400
Total
Equivalent
Starts (ES)
Factored
Fired Hours
(FFH)
12,000
24,000
48,000
Equivalent
Base Hours
(EBH)
7 E/EA
Santan (SA) 1, 2, 3, 4 - Kyrene 5, 6
Hot Gas Path

Inspection
(HGP)
Major
Inspection
(MI)
400 /
900 (with
uprate)
800 /
900 (with
uprate)
1,600 /
1,800 (with
uprate)
8,000 /
12,500 (with
uprate)
24,000 /
25,000 (with
uprate)
48,000 /
50,000 (with
uprate)
W501B
Agua Fria Unit 4, 5 and 6 Kyrene 4
Combustion
Inspection
(CI)
Hot Gas Path

Inspection
(HGP)
Major
Inspection
(MI)
Factored
Fired Hours
(FFH)
450
1,200
2,400
Factored
Starts
(FS)
12,000
24,000
48,000

Combustion
Inspection
Major (CI)*
Combustion
Inspection
Major (CI)*
Hot Gas Path

Inspection
(HGP)
Major
Inspection
(MI)
Total
Equivalent
Starts (ES)
400
800
1,600
Equivalent
Base Hours
(EBH)
8,000
16,000
32,000
* No minor combustion inspections are

required when operating on natural gas
63
EN ER GY
Historical Outage Intervals for 7FA Gas Turbines

Santan (SA) 5a, 5b and 6 - Kyrene K7
Unit
SA5a
SA5b
SA6
K7
CI
HGP (incl. CI)
CI
Current Data
Comment
Date
Total FS
Incremental FS
Total FFH
Incremental FFH
12/12/2006
511
511
11,017
11,017
4/18/2008
929
418
19,048
8,031
1/3/2011
1,379
450
31,300
12,252
5/1/2012
1,609
230
35,657
4,357
Outage taken within prudent industry practices (7F user group)
Date
Total FS
Incremental FS
Total FFH
Incremental FFH
12/20/2006
521
521
9,468
9,468
4/18/2008
837
316
17,178
7,710
5/2/2010
1,159
322
29,248
12,070
5/1/2012
1,540
381
35,620
6,372
Date
Total FS
Incremental FS
Total FFH
Incremental FFH
9/30/2007
476
476
9,634
9,634
10/27/2009
844
368
23,357
13,723
1/3/2012
1,267
423
30,231
6,874
5/1/2012
1,315
48
32,155
1,924
Outage taken within customary 10% range of OEM interval
Date
Total FS
Incremental FS
Total FFH
Incremental FFH
No
Previous
History
11/10/2007
1572
Unknown
25,000
Unknown
3/1/2009
1,946
374
30,724
5,724
5/1/2012
2,368
422
40,233
9,509
Hours timer reset after control change
The gas turbines have historically been maintained in accordance with manufacturer recommended
intervals and appropriate prudent industry practices.
Yellow highlighted cells show variances from manufacturer recommended intervals. All of these are
within prudent industry practices.

64
EN ER GY
Historical Outage Intervals for 7E/EA Gas Turbines

Santan (SA) 1, 2 and 3
Unit
SA1
SA2
SA3
Outage Sequence
Current Data
Comment
Outage Event
Date
Total FS
Incremental FS
Total FFH
Incremental FFH
CI
3/31/2008
254
Not available
2,069
Not available
CI
2/2/2011
4,024
437
81,213
3,499
5/1/2012
4,178
154
82,532
1,319
Controls upgrade in April 2010 with hours/starts counter update
Outage Event
Date
Total FS
Incremental FS
Total FFH
Incremental FFH
CI
12/5/2008
1,636
364
17,531
3,034
HGP
11/1/2011
3,803
315
90,778
2,589
5/1/2012
3,846
43
91,144
366
Outage Event
Date
Total FS
Incremental FS
Total FFH
Incremental FFH
CI
12/1/2007
1,286
Not available
14,144
Not available
CI
11/30/2010
3,701
480
82,914
3,808
5/1/2012
3,881
180
84,469
1,555
Yellow highlighted cells show variances from manufacturer recommended intervals. All of these are
within prudent industry practices.

65
EN ER GY
Historical Outage Intervals

Santan (SA) 4 - Kyrene K4, K5 and K6
Unit
Outage Sequence
SA4
Outage Event
Date
Total FS
Incremental FS
Total FFH
Incremental FFH
K4, K5
K6
CI
2/11/2008
818
Not available
7,376
Not available
CI
4/1/2011
3,885
449
90,615
3,502
Current Data
MI
4/3/2012
4,023
138
91,829
1,214
Comment
5/1/2012
4,036
13
91,945
116
Outage Event
Date
Total FS
Incremental FS
Total FFH
Incremental FFH
No outages have been performed since 2001.

Historical data is available from 2008 onwards only.
Due to low run times for K4, K5 and K6 no planned gas turbine outages have been performed since
2001.

66
EN ER GY
Historical Outage Intervals for 501F Gas Turbines

Desert Basin CT1 and CT2
Unit
CT1
CT2
Outage Sequence
Current
Data
Event
Date
Total ES
Incremental ES
Total EBH
Incremental EBH
CI
1/14/02
CI
6/13/02
CI
1/24/03
HGP
1/25/04
HGP
4/23/04
CI
4/2/05
MI
10/15/06
398
398
124
124
465
67
250
127
637
172
459
209
806
169
713
254
855
49
760
47
1,069
214
986
226
1,487
418
1,299
312
CI
3/8/08
1,917
430
1,504
205
Event
Date
Total ES
Incremental ES
Total EBH
Incremental EBH
CI
3/1/02
CI
1/25/03
HGP
1/8/04
CI
4/8/05
MI
3/4/06
CI
4/6/07
HGP
10/2/08
306
306
155
155
506
200
432
277
708
202
651
219
1,135
427
950
298
1,457
322
1,111
162
1,791
334
1,220
109
2,262
471
1,482
262
CI
11/5/09
HGP
5/1/09
2,161
244
1,656
152
Upgrade
HGP
2/5/11
HGP
7/2/11
2/28/12
2,484
222
1,602
120
2,668
184
1,710
108
2,690
22
1,723
13
2,750
60
1,765
43
2/3/12
2,610
449
1,957
301
Notes for CT1:

The outages on 10/15/2006 and 3/8/2008 were taken within customary 10% range of OEM interval
Unit uprated to Siemens Service Bulletin SB4-11-0018 on 5/1/2009, allowing for extended outage intervals (see slide OEM Recommended
Outage Intervals by Technology)
Notes for CT2:
The outage on 4/8/05 was taken within customary 10% range of OEM interval. The outage on 10/2/2008 was taken based on business need
and in accordance with prudent practices shared with other industry operators.
Unit is in forced outage as of 2/28/2012 due to thru bolt failure.

67
EN ER GY
Historical Outage Intervals for W501B

Agua Fria Units 4, 5 and 6 / Kyrene 4
Historical outage data is not available.
According to interviews with plant personnel, intervals have been maintained
based on OEM recommendations and sometimes more conservatively.
In some cases, the units have been maintained at intervals more stringent than
OEM recommendations due to expected reliability needs in summer peaks.
For example, an outage may have been taken in the spring (earlier than OEM
recommendations require) to ensure that the unit can run without interruption
all summer and not exceed OEM recommendations.

68
EN ER GY
Table of Contents
Executive Summary
Project Background
Recommendations

133
EN ER GY
Coronado Summarized Findings

EAF
EFOR
NFOM
($/MWh)
Unit
Technology
Comment
Coal
91.6%
3.5%
$8.84
Operations cost is top quartile while maintenance cost is

second quartile. NCF is top quartile.
Coal
91.1%
4.4%
$8.62

second quartile. NCF is top quartile.
Plant Level Summary Findings

Plant is performing at a very high level in all three areas of availability, reliability and NFOM cost.
To reach elite status (i.e.- top quartile in both NFOM cost and availability), reductions in NFOM cost
would need to be achieved while maintaining current levels of availability and reliability.
No alarming trends in availability, reliability or NFOM cost.
Plant maintenance practices are above average and consistent with both OEM and industry
standards.
Legend:
Top quartile
Second quartile
Third quartile
Fourth quartile
EAF: Equivalent Availability Factor, EFOR: Equivalent Forced Outage Rate, NFOM: Non-Fuel Operations and Maintenance

134
EN ER GY
Navajo Summarized Findings

EAF
EFOR
NFOM
($/MWh)
Unit
Technology
Comment
Coal
90.3%
3.1%
$7.66

third quartile. NCF is top quartile.
Coal
89.8%
4.6%
$7.62

Coal
90.2%
4.3%
$7.40


Plant is performing at a very high level in all three areas of availability, reliability and NFOM cost.
Maintenance cost is the only area with worse than median performance.
To reach elite status (i.e.- top quartile in both NFOM cost and availability), reductions in NFOM cost
would need to be achieved while maintaining current levels of availability and reliability.
No alarming trends in availability, reliability or NFOM cost.
Plant maintenance practices are above average and consistent with both OEM and industry
standards.
Legend:
Top quartile
Second quartile
Third quartile
Fourth quartile
EAF: Equivalent Availability Factor, EFOR: Equivalent Forced Outage Rate, NFOM: Non-Fuel Operations and Maintenance

135
EN ER GY
Agua Fria Summarized Findings

Unit
Technology
SR
EFORd
NFOM ($/kW)
Comment
Gas Steam
100%
1.01%
$32.01
NFOM close to fourth quartile border
Gas Steam
100%
7.04%
$33.92
Gas Steam
100%
1.86%
$34.03
CT
99%
9.71%
$12.93
NFOM approaching worst decile
CT
99%
6.30%
$12.56
CT
100%
6.79%
$11.74

Agua Fria shows an overall very high starting reliability, consistent with SRPs unit objectives.
Equivalent forced outage rate demand varies by unit; with AF4 being impacted by events in 2005 and
2011.
The cost position ranks worse than industry peers, however this historical cost position is not
reflective of future performance because personnel changes occurred and work will be bid out
competitively in the future.
Plant management demonstrated a well established maintenance program during interviews.
Legend:
Top quartile
Second quartile
Third quartile
Fourth quartile
SR: Starting Reliability, EFORd: Equivalent Forced Outage Rate demand, NFOM: Non-Fuel Operations and Maintenance
Note that SRP counts a start as successful once a unit is ready for dispatch. This is considered more stringent than other industry measures.
136
EN ER GY
Desert Basin Summarized Findings

Unit
Technology
DB
Combined
Cycle
SR
97%
EFOR
NFOM
($/kW)
20.49%
Comment
$32.26
NFOM close to fourth quartile. Cost driven by

maintenance rather than operations.

Desert Basins equivalent forced outage rate is higher than the worst decile, partly driven by events in
2006 and 2009.
Review of Desert Basin outage history highlights frequent unplanned outages, which contributed to
Desert Basins high cost position in comparison to industry peers.
The plant has invested towards improved future performance. These improvements include
hardware for extended outage intervals and turbine control upgrades.
Legend:
Top quartile
Second quartile
Third quartile
Fourth quartile
SR: Starting Reliability, EFOR: Equivalent Forced Outage Rate, NFOM: Non-Fuel Operations and Maintenance
Peer statistics for combined cycle starting reliability are unavailable.
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Santan Summarized Findings

SR
EFOR
NFOM
($/kW)
Unit
Technology
Comment
Combined
Cycle
95%
7.30%
$28.32
NFOM close to the border of top quartile
Combined
Cycle
92%
11.94%
$27.84
NFOM close to the border of top quartile
Combined
Cycle
96%
2.85%
$18.75
NFOM is better than top decile
Combined
Cycle
97%
10.38%
$25.02
NFOM close to the border of top decile
Combined
Cycle
98%
6.46%
$30.24
NFOM slightly elevated cost due to maintenance. NCF

slightly above 50%, about average for peer group.
Combined
Cycle
98%
8.12%
$22.55
Solid second quartile performance

Total plant equivalent forced outage rate is mixed, with high impact events for S5 in 2006 and 2011.
Non fuel O&M cost is generally first to second quartile.
Parts sharing between Santan and Kyrene enables efficiencies in parts cost and scheduling.
Legend:
Top quartile
Second quartile
Third quartile
Fourth quartile
SR: Starting Reliability, EFOR: Equivalent Forced Outage Rate, NFOM: Non-Fuel Operations and Maintenance
Peer statistics for combined cycle starting reliability are unavailable .
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Kyrene Summarized Findings

SR
EFORd
NFOM
($/kW)
Unit
Technology
Comment
CT
91%
27.51%
$6.74
Operations and maintenance contribute equally to NFOM

position. NCF below peer median.
CT
97%
10.12%
$9.35

CT
97%
12.94%
$7.35

Combined
Cycle
99%
14.24%
(EFOR)
$33.60
NFOM is close to fourth quartile border. NCF above peer

median.

Starting reliability for Kyrene is worse than most peers. Note that Navigant did not calculate starting
reliability benchmarks for K7.
Equivalent forced outage rate demand is worse than most peers. Note that benchmark for K7 is
EFOR, not EFORd.
Non-fuel O&M cost is worse than most peers.
Kyrene has a worse than average position in all performance measures despite the absence of
planned gas turbine outages (no outages since 2001) and shared management with Santan.
Legend:
Top quartile
Second quartile
Third quartile
Fourth quartile
SR: Starting Reliability, EFOR: Equivalent Forced Outage Rate demand, NFOM: Non-Fuel Operations and Maintenance
139
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Table of Contents
Executive Summary
Project Background
Recommendations

140
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Coal Plant Recommendations

Recommended Improvement Areas for SRPs Coal Plants
1.
2.
3.
SRP should consider the potential benefit of standardizing critical processes between the two coal
plants, such as the pre-outage planning process, post-outage critique process, etc. Other best
performing companies have realized the benefit of leveraging best practices across their fleet,
especially when it comes to critical processes.
Continual (dynamic) optimization of a PM program is a hallmark of an outstanding maintenance
program, along with strong craft involvement and ownership. SRP should consider implementing a
PM specific craft feedback process to encourage both continual optimization of the PM program and
craft ownership. See the next slide titled Example PM Craft Feedback Form.
SRP should consider implementing a post-outage reliability indicator as another means to assess the
effectiveness of a planned outage. Typical characteristics of these indicators are:
A. They measure reliability (i.e. EFOR, EUOF, etc.) for some period after breaker closed and the
outage is officially declared over. Usually this period is anywhere from one to three months.
B. Targets are established.
C. Events resulting in reliability loss during the evaluation period are evaluated in the context of
1. Was this an item worked on during the outage? If so, does this represent a quality of
work issue?
2. If this item was not worked on during the outage, does this represent a failure of our
condition assessment or outage planning process?
3. Etc.

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Coal Plant Recommendations Example PM Craft Feedback

Form
Overview:
The craft feedback grading categories are designed to utilize the professional opinion of the
crafts to validate the existing PM for accuracy, thoroughness of the work scope, and
appropriateness of the periodicity, or to justify other changes to the PM as applicable.
Category Grade
5
Good: The PM condition is comparable to the same condition as if the PM

was just worked. Like new condition. Evaluate increasing the periodicity.
Above Average: The PM condition is between good(5) and average (3). There
is very minor degradation.
Average: The PM condition is adequate and degradation is normal and as

expected. PM periodicity is correct.
Below Average: PM condition is between poor (1) and average (3). More
degradation than expected.
Poor: Immediate attention is required. It is at a point where the function of

the component has significantly deteriorated. Evaluate reducing the
periodicity.
Source: Reliability Centered Maintenance, Neil B. Bloom

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Gas Plant Recommendations

Recommended Improvement Areas for SRPs Gas Plants
1.
2.
3.
4.
5.
6.
7.
SRP should perform an in depth review of maintenance cost drivers for its gas plants. While all plants
interviewed demonstrated a well established maintenance program, maintenance costs are generally
higher than peers. Navigant recommends a detailed cost review to identify causes and devise suitable
next steps to improve the cost position.
Recommend implementation of post-outage reliability performance success measure as another
means to determine outage effectiveness.
The maintenance process should be documented and readily available for personnel, despite the deep
experience of the existing (graying) workforce.
Outage scope planning appeared lax at most locations, especially for long lead time items.
Recommend to evaluate benefits of structured outage scope planning approaches.
Outage cost tracking appears slow. Recommend to review the outage cost tracking process and
determine if faster cost tracking during outages would identify trends earlier and mitigate potential
cost overruns.
The sites did not follow a formal cost / benefit analysis process for planned upgrades. Recommend to
evaluate the benefit of formal cost / benefit analysis.
All sites should follow a documented set of criteria that determines when a RCA is conducted.

143
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Key
C ON TACTS
EN ER GY
Dale Probasco| Managing Director

dprobasco@navigant.com
612.868.5955 direct
EN ER GY
Robert Ruhlman| Associate Director

rruhlman@navigant.com
706.754.0957direct
EN ER GY
Mark Scherluebbe| Associate Director

mark.scherluebbe@navigant.com
404.602.3496 direct

2012
Do not
distribute
Confidential and proprietary . SRP
use
only . or copy .
144
EN ER GY

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SRP Final Report:

High Level Benchmarking and

2012 Nav igant Consulting, Inc.

DI S P UT E S & I NV E S T I G AT I O NS E CO NO M I CS F I NANCI AL ADV I S O RY M ANAG E M E NT CO NS ULT I NG

2012 Nav igant Consulting, Inc.

2012 Nav igant Consulting, Inc.

REDACTED SRP PROPRIETARY INFORMATION

2012 Nav igant Consulting, Inc.

Executive Summary SRP Overview

2012 Nav igant Consulting, Inc.

Executive Summary SRP Overview

The differences in objectives between the various types of power producers

2012 Nav igant Consulting, Inc.

Executive Summary SRP Overview

Executive Summary SRP Overview

2012 Nav igant Consulting, Inc.

Executive Summary SRP Capacity, Generation and Cost

SRP Electrical Production by Technology

Coal and Combined Cycle units make up

SRP NFOM Cost by Technology

Executive Summary Coal Units

Executive Summary Combined Cycle Units

Combined cycle cost and performance varies across the units.

Executive Summary Gas Steam Units

The gas steam units operate at varied levels of performance.

Executive Summary Combustion Turbine Units

The combustion turbines generally do not perform as good as peer units.

2012 Nav igant Consulting, Inc.

Navigant conducted interviews at each site to evaluate major outage

Verify cost and

2012 Nav igant Consulting, Inc.

Work with SRP

4: Prepare Draft and

Project Approach Cost and Performance Data

2012 Nav igant Consulting, Inc.

2012 Nav igant Consulting, Inc.

Maintenance Management Practices

Maintenance planning process

Work management process

2012 Nav igant Consulting, Inc.

Desert Basin (gas)

2012 Nav igant Consulting, Inc.

Coronado Plant Overview

2012 Nav igant Consulting, Inc.

Coronado Maintenance Program Observations

Maintenance Program Best Practice

Plant maintenance is based on criticality of plant

A list of critical equipment and Run-to-Failure (RTF)

Corrective and preventive maintenance are

Plant estimates approximate ratio of PM to CM at 60/40. This

Value of unit improvements is communicated

Plant personnel have a good understanding of the importance

Improvement opportunities are openly shared

Discussions with other plants occur, but process appears to

Consistent methodology is in place to analyze and

Equipment history is recorded in MAXIMO.

Formal root cause analysis is systematically

RCA process (REASON) has been in place for about 6 years.

2012 Nav igant Consulting, Inc.

Coronado Maintenance Planning Observations

Maintenance Planning Best Practice

Long-range outage and major maintenance plan

A 10-year outage planning schedule is used.

Durations between outages are consistent with the