1. 2017 Fall Educational Forum Bruce A. Tagg, ALCM
Sr. Engineering Exposure Analyst

2. Underwriting and Managing the Risks of Municipal Utilities
Session Synopsis: There are unique risks associated with insuring municipal utilities. This session will provide an overview of municipal utilities and key considerations for determining the risks and writing coverage. Explore: Key loss drivers and loss prevention efforts that can help minimize potential risks and losses from municipal utilities. Focus Risk: Smaller plants utilizing Internal Combustion Engines will be used to illustrate loss mitigation principals.

3. 4 Primary Areas within Plant
Prime Mover
Generator
Electrical Distribution
Fuel Storage

4. 4 Primary Areas within Plant
Prime Mover
Generator
Electrical Distribution
Fuel Storage

5. 4 Primary Areas within Plant
Prime Mover
Generator
Electrical Distribution
Fuel Storage

6. 4 Primary Areas within Plant
Prime Mover
Generator
Electrical Distribution
Fuel Storage

7. Loss Drivers: Engines Overheating Fuel Disruption Lubricant Disruption
Fire Following
a slipping fan clutch, a broken cooling fan and a collapsed radiator hose the coolant, a cooling liquid, must always be kept in circulation. The coolant must get rid of this heat as it passes through the block and head, which requires a functioning radiator

8. Loss Drivers: Engines Overheating Fuel Disruption Lubricant Disruption
Fire Following

9. Loss Drivers: Engines Overheating Fuel Disruption Lubricant Disruption
Fire Following

10. Loss Drivers: Engines Overheating Fuel Disruption Lubricant Disruption
Fire Following
Fire separation / prevention / detection / extinguishing

11. Loss Drivers: Mechanical Breakdown
Loss of Lubricant
Vibration
Overspeed
Lack of Inspection / Maintenance

12. Loss Drivers: Mechanical Breakdown
Loss of Lubricant
Vibration
Overspeed
Lack of Inspection / Maintenance

13. Loss Drivers: Mechanical Breakdown
Loss of Lubricant
Vibration
Overspeed
Lack of Inspection / Maintenance
Diesel engines don't overspeed unless something is wrong, that is why governors are installed.  You could have a governor problem, an internal fuel injection pump problem, or an external issue, such as a combustible mixture like natural gas or hydrocarbon vapors being pulled in with the intake air.
The failure of auxiliary supply or failure of driving motor can also cause the loss of excitation in a generator. Failure of excitation that is failure of field system in the generator makes the generator run at a speed above the synchronous speed. In that situation the generator or alternator becomes an induction generator which draws magnetizing current from the system. Although this situation does not create any problem in the system immediately but over loading of the stator and overheating of the rotor
Loss Of excitation (LOE) is a very common fault in synchronous machine operating
and can be caused by short circuit of the field winding, unexpected field breaker open
or LOE relay mal-operation.

14. Loss Drivers: Mechanical Breakdown
Loss of Lubricant
Vibration
Overspeed
Lack of Inspection / Maintenance

15. Loss Drivers: Electrical
Arcing Event
Contact
Creep
Mechanical
Insulation
Heat
Transformer related
Improper Installation

16. Loss Drivers: Electrical
Arcing Event
Contact
Creep
Mechanical
Insulation
Heat
Transformer related
Improper Installation
Contact faults at the screw-type or clamp connections
of contactors, switches and other components
(e. g. due to material fatigue, metal flow at
pressure points, faulty or soiled clamp connections)
–– Creeping current due to humidity, dust, oil and
coalification (creeping distances, arcing spots)
–– Mechanical damage due to shocks, vibration
stress and rodent attack
–– Insulation faults due to ageing (brittleness), introduction
of foreign matter, weather and other
external influences

17. Loss Drivers: Electrical
Arcing Event
Contact
Creep
Mechanical
Insulation
Heat
Transformer related
Improper Installation
Core iron isn't the only source of harmonics. Generators themselves produce some 5th harmonic voltages due to magnetic flux distortions that occur near the stator slots and nonsinusoidal flux distribution across the air gap. Other producers of harmonics include nonlinear loads like rectifiers, inverters, adjustable-speed motor drives, welders, arc furnaces, voltage controllers, and frequency converters.

18. Loss Drivers: Electrical
Arcing Event
Contact
Creep
Mechanical
Insulation
Heat
Transformer related
Improper Installation

19. Loss Prevention Construction & Separation
Predictive Maintenance Thermographic Testing
Fire Detection / Alarms
Fire Suppression
Transformer Testing
Circuit Breaker Testing
System Reliability Program

20. Loss Prevention Construction & Separation
Predictive Maintenance Thermographic Testing
Fire Detection / Alarms
Fire Suppression
Transformer Testing
Circuit Breaker Testing
System Reliability Program

21. Loss Prevention Construction & Separation
Predictive Maintenance Thermographic Testing
Fire Detection / Alarms
Fire Suppression
Transformer Testing
Circuit Breaker Testing
System Reliability Program

22. Loss Prevention Construction & Separation
Predictive Maintenance Thermographic Testing
Fire Detection / Alarms
Fire Suppression
Transformer Testing
Circuit Breaker Testing
System Reliability Program

23. Loss Prevention Construction & Separation
Predictive Maintenance Thermographic Testing
Fire Detection / Alarms
Fire Suppression
Transformer Testing
Circuit Breaker Testing
System Reliability Program

24. Loss Prevention Construction & Separation
Predictive Maintenance Thermographic Testing
Fire Detection / Alarms
Fire Suppression
Transformer Testing
Circuit Breaker Testing
System Reliability Program

25. Loss Prevention Construction & Separation
Predictive Maintenance Thermographic Testing
Fire Detection / Alarms
Fire Suppression
Transformer Testing
Circuit Breaker Testing
System Reliability Program

26. What’s The Take Away?
Lack of effective Preventative Maintenance Program
Lack of effective separation / construction
Lack of Suppression System
Lack of Electrical system testing i.e. transformers, CB, etc.
Age of system components /buildings
Contingency Planning

27. Thank You Bruce A. Tagg, ALCM Senior Engineering Exposure Analyst
Mutual Boiler Re – a member of the FM Global Group