Equipment Life Optimization Program (ELOP) Doug Hilleman February 10, 2011

Introduction Managing (generation) assets in today’s volatile (electricity) markets and regulatory environment is a challenge to all power plant owners.

TubeMod™ Asset Integrity Evaluation Asset Valuation Condition Assessment Problem Solving and Failure Analysis Heat Rate Improvement Performance and Reliability Piping Integrity Tube Analysis ELOP Flow Accelerated Corrosion Probabilistic Analyses Remaining Useful Life Cost of Cycling Analysis Cycling  Advisor™ COSTCOM® Specialized NDE TubeAlert - RUL Pulsed Eddy Current T-Fish Waterwall Deposit Testing (NDE) Power Group Business Unit - Fossil Products and Services Typical Services

Typical Services Steam Generator Damage Management Fracture Mechanics/JCOs Piping Analysis Risk Informed Inspection - BOP Erosion/Corrosion Life Extension Risk Assessment Root Cause Failure Analysis OPCON 3.0 FACEUP License Renewal Turbine Performance & Reliability Power Group Business Unit - Nuclear Products and Services

“ELOP” Helping Companies Compete By Maximizing Maintenance Efficiencies (low cost providers) Helping Companies Compete By Maximizing Maintenance Efficiencies (low cost providers)

What is ELOP? Asset management tool (or do the right stuff just in time) Plant maintenance planning and prioritizing tool Justification for future maintenance costs Living document Asset management tool (or do the right stuff just in time) Plant maintenance planning and prioritizing tool Justification for future maintenance costs Living document

Initial Assessment Inspection Plan and Implementation Condition Assessment On-Going Outage and Problem Solving Support Plan and Budget Report Economic Decision Analysis Condition and Operations Database The ELOP Process (PDCA)

Focus on the goals Be effective by being flexible, adaptable to changing markets, management and operations Develop a long-term (ten-year) coordinated program with plant staff Be easy to use and inexpensive What is the Purpose of ELOP? ELOP helps companies compete by being a low cost provider. How?

Organizing and maintaining key inspection and overhaul reports from past years Developing inspection and real-time data acquisition plans needed to assess equipment health, run, repair, or replace Developing a database structure to organize the vast data in a way that is easily retrieved and disseminated. = Tracking and justification ELOP Objectives

What Kind of Knowledge is Needed? Theme of ELOP What equipment is critical for reliable and safe operations? What is the health of the equipment? What are methods for treatment? Which treatment option is most economically sound? What equipment is critical for reliable and safe operations? What is the health of the equipment? What are methods for treatment? Which treatment option is most economically sound?

Economics What are the costs of equipment failures?  Market costs  Safety What are the benefits and costs of each treatment option? What is the best timing for treatment? What are the costs of equipment failures?  Market costs  Safety What are the benefits and costs of each treatment option? What is the best timing for treatment?

What Does It Do? Provides a systematic approach to condition based maintenance and budgets Provides a concise written history Provides a resource database for past examinations and repairs Provides a path for meeting plant goals and expectations

10-Year Plan (Example)

Benefits  Tool to keep plant staff focused on the goals  Improve and maintain cost-effective reliability on critical components  10-year plan to show corporate/owners and regulators you have a detailed plan to meet the goals (you have your act together)  Living document to provide timely and comprehensive information  Tool to keep plant staff focused on the goals  Improve and maintain cost-effective reliability on critical components  10-year plan to show corporate/owners and regulators you have a detailed plan to meet the goals (you have your act together)  Living document to provide timely and comprehensive information

Conclusion Thank You for Your Time Any Questions?

ELOP: Back Up Slides

What Has Been Done? Written concise history and e-file document storage in ELOP database Annual next year inspection and major maintenance recommendations 10-year inspection, major maintenance, and capital plan and budget (annual update) Inspection methodology and interval summary in ELOP database

Objectives to ELOP – Cont. Carrying out or analyses needed to interpret that data in terms of plant equipment health and life expectancies Providing input to plant staff for use in planning and contracting for inspections and/or analyses Assisting, as-needed, in recommendations of major asset management decisions (e.g., large capital expenditure to replace ailing equipment)

Critical Equipment Work with plant on selection of critical equipment based on:  Safety  Reliability  Outage time for repair  Forced outages  Etc.

Methods for Treatment Methods to slow damage progression, including operational procedures Repair methods Replacements/redesigns Improved data acquisition

Why Do It? Failure prevention Downsizing of plant and corporate staff Lack of central information location Need for inspection and maintenance efficiency and cost reduction Organized documentation for regulators and upper management

Health of the Equipment Is there any damage? What are the damage mechanisms? How fast is the damage progressing? When will the damage cause failures? Are there any low probability but high impact risks?

Inspection Recommendations for Fall 2002 Outage (Example)

Inspection Methods and Interval (Example)

Lessons Learned Immediate Response to Prioritized Problems Results in Improved Reliability Predictions for Risk Management at lowest cost Low Cost Strategies Are Often Best  Hydrogen Damage in Waterwalls  Main Steam Cracking Focused Inspections Can Reduce Overall Inspection Costs (with trends) ELOP Process Facilitates Budget Process ELOP Database Makes Regulatory and Insurance Reporting Easy

ELOP Phases of Work Phase 1 – Overall conceptual design of management team and database Phase 2 – Development of long-term plan Phase 3 – Development of baseline inspection and real- time data plan Phase 4 – Outage inspections and repairs Phase 5 – Database development and analysis Phase 6 – On-going review and updates