Power Production Quarterly Commission Update 7/19/19 Powering our - - PowerPoint PPT Presentation

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Power Production Quarterly Commission Update 7/19/19 Powering our - - PowerPoint PPT Presentation

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Power Production Quarterly Commission Update 7/19/19 Powering our way of life. Department Purpose and Goal Purpose: Provide safe, secure, economical, reliable and compliant power generation under the Priest Rapid Project Federal Energy

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SLIDE 1

Quarterly Commission Update 7/19/19

Powering our way of life.

Power Production

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SLIDE 2

Department Purpose and Goal

Purpose: Provide safe, secure, economical, reliable and compliant power generation under the Priest Rapid Project Federal Energy Regulatory Commission (FERC) License Project No. 2114 while supporting the Wanapum relationship. Goal: Execute the aforementioned tasks while championing a culture of safety and operational excellence with continuous focus on the guiding values of safety, innovation, service, teamwork, respect, integrity, and heritage.

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SLIDE 3

Acronym List

  • PP – Power Production
  • HPI – Human Performance Improvement
  • NFPA 70e – National Fire Protection Association
  • EAP – Emergency Action Plan
  • ERTT – Emergency Response Team Training
  • PRREIP – Priest Rapids Right Embankment Improvement

Project

  • JHA – Job Hazard Analysis
  • B2A’s – Budget to Actuals
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SLIDE 4

2019 Q2 Review

  • Safety Update
  • Employee Development
  • PP Performance
  • Budget Review
  • Maximo Update/Electronic Timekeeping
  • Schedule Adherence
  • LEAN update
  • Q3 Forecast
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SLIDE 5

Safety Update

65% 70% 75% 80% 85% 90% 95% 100%

2019 PP Safety Meeting Attendance

  • 308 hours of training just in Q2
  • Does not include normal safety

meetings

  • Trainings included EAP

functional exercise, NFPA 70e training, and ERTT training

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SLIDE 6

Safety Update

Pressurized Equipment Perform Isolation – LOTO, Pipe Blinding, etc. Depressurize, drain, purge, and vent Relieve trapped pressure Anticipate residual pressure and fluids Avoid line of fire exposure Verify Pressure is Relieved Poor Lighting/Visibility - Indoor Provide alternative lighting Flashlight Head lamp Temporary Lighting Poor Lighting/Visibility - Outdoor Provide alternative lighting Wait or defer until visibility improves. Flashlight Head lamp Temporary Lighting Confined Space (Non-Permit Required) Review Confined Space Policy Discuss confined space entry safe work practices Conduct atmospheric testing (if required) Monitor access or entry (if required) Do not locate mobile engines near confined space Provide observer (if required) I.D. Communication Radio Emergency Contact Numbers Clearance Tags/LOTO Confirm equipment energy sources are isolated Flashlight Required PPE Head Lamp Cell Phone District Phone Emergency Contact Numbers Confined Space Permit Confirm Retrieval Equipment MSDS Review (if applicable) Confined Space Hazard Assessment Form Confined Space (Hazards eliminated and atmospheric mitigated) Review Confined Space Policy MSDS Review (if applicable) Discuss confined space entry safe work practices Conduct atmospheric testing Radio Required PPE

  • Hazard and Precaution Table
  • Maximo Input ongoing
  • Work completed on over 1500 to

date

  • Conversion of existing JHA’s into

Job Plans

  • ~1600 job plans
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SLIDE 7

PP Performance

60.00% 65.00% 70.00% 75.00% 80.00% 85.00% 90.00% January February March April May June July August September October November December

2019 Availability By Month

Priest Wanapum Project Target

P03 ~73 hours unplanned outage extension (MW-hr meter, control system rework issues) P04 ~32 hours for knocking in air housing where air baffle bracket had come loose P09 excessive oil head vibrations. Out since 4/23 with exception of 4 days.

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SLIDE 8

PP Performance

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% January February March April May June July August September October November December

2019 PP Forced Outage Percentage

Priest Wanapum Project Target

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SLIDE 9

2019 B2A’s thru 5/31

Capital O&M

Budget $25,609,386 Directs $23,189,755 Actual $5,462,698 $7,409,709 Remain $20,146,688 $15,780,046 Budget $4,226,729 Labor $22,147,961 Actual $2,016,582 $9,187,700 Remain $2,210,147 $12,960,261 Budget $29,836,115 Total $45,337,716 Actual $7,479,280 $16,597,409 Remain

$22,356,835 $28,740,307

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SLIDE 10

2019 Budget and Actuals

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SLIDE 11

Maximo Update

  • Currently live with all hourly employees with exception of Cultural Resources department and

Operators

  • Expected any time to conclude
  • Data optimization schedule
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SLIDE 12

Schedule Adherence

  • 1007 work orders completed
  • Priorities
  • Scheduled
  • Break in work
  • Causes
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SLIDE 13

Employee Development

  • Human Performance Trainings
  • 240 hours delivered in April
  • Additional training of Power Delivery staff occurred in

June

  • 316 hours of training/conferences attributed to reliability

based maintenance, thermal imaging, and Maximo

  • 248 hours of Operator annual training for 31 operators
  • 184 hours of EA staff training in HazMat, Fisheries,

Shoreline Management conferences

  • 809 hours of maintenance craft training related to cranes,

bucket trucks, electrical testing, CDL

  • ~2105 person hours dedicated in 3 months
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SLIDE 14

LEAN Update

  • Latest workshop of work standardization
  • Improve quality of schedule
  • Improve communications and coordination
  • Minimize rework
  • Critical tie to Asset Management within

Engineering

  • Increase employee satisfaction and morale
  • Reference additional materials
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SLIDE 15

Q3 Forecast

  • Human Performance implementation efforts
  • Plant Manager onboardings/hirings
  • Plant Maintenance Supervisor hiring
  • Drill down further in maintenance optimization
  • Continued employee development/training
  • Data optimization and implementation
  • Downstream effects and evaluations
  • PRREIP – bids, job walks, contract awarding
  • Maintain focus and continuity as it relates to Strategic

Plan

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SLIDE 16

Powering our way of life.

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SLIDE 17

Grant PUD Commission Meeting – July 9, 2019

Grant PUD Lands & Recreation 2019 Q3 Business Report

Powering our way of life.

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SLIDE 18

Departmental Purpose and Goal

  • Purpose: Fulfill certain regulatory obligations under the District’s

FERC license, provide real estate support services for the District, and manage the District’s geographic information system (GIS) program.

  • Goal: Execute the aforementioned tasks and services in light of the

District’s Strategic Plan objectives related to maintaining a strong financial position, providing long‐term low rates, providing excellent customer service, and attaining environmental compliance.

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SLIDE 19

2019 Q2 review – safety & regulatory activities

  • Safety
  • Recordable incidents = 0
  • Non‐recordable incidents = 4
  • Safety meeting attendance = 100%
  • Job briefs = 60
  • Job site reviews = 6
  • Regulatory
  • Grant PUD filings = 5
  • FERC actions = 5
  • Filings by others = 1
  • Summary of major filings:
  • Shoreline Management Plan update
  • Crescent Bar as‐built drawings
  • Rattlesnake Cove Project Boundary modification
  • Denial of RRMP rehearing request
  • Motion to Intervene on SMP
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SLIDE 20
  • 2019 Shoreline Management

Plan submittal to FERC

  • Columbia Cliffs Land Use

Application and Public Recreation Development Plan

  • Crescent Bar wrap‐up projects
  • Concert crowd management

meeting

  • Special use permits
  • Sunland Community Park,

Quilomene Yacht Club permits

  • Power Delivery design‐build

project support

2019 Q2 review – activities

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SLIDE 21
  • Real estate, vegetation

management, and GIS support

  • Maximo Electronic Timekeeping
  • Data Optimization/budget entry

process

  • Cove fire cleanup
  • Crescent Bar leases
  • Crescent Bar Rec Area operations
  • Lands Specialist recruitment
  • 2020 capital project planning
  • Commission Lands & Rec tour

2019 Q2 review – activities

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SLIDE 22

2019 Q3 forecast – safety & regulatory

  • Safety Goals
  • Non‐recordable incidents = 0
  • Recordable incidents = 0
  • Safety meeting attendance = 100%
  • Job site reviews
  • Regulatory Outlook
  • Anticipated FERC filings = 2
  • Anticipated FERC approvals = 0
  • Any regulatory threats or risks =

none known/anticipated

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SLIDE 23

2019 Q3 Forecast ‐ projects

  • Projects & Work Activities
  • Manage and monitor summer recreation crowds
  • 2020 budget development and project planning
  • Crescent Bar office building, maintenance building safety upgrades
  • Complete Columbia Cliffs PRDP, encroachment removal plan,

temporary land‐use authorization

  • Continued encroachment removal and restoration Project‐wide
  • Continued real estate, vegetation management, and GIS support
  • Continue recruitment of Lands Specialist position
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SLIDE 24

YTD budget‐to‐actuals (through May 31)

2019 Budget Actuals as of 5/31/2019 Budget Remaining % of Budget Spent Q4 YEP % Budget to YEP CAP $37,500 $437,171 ($399,671) 1165.79% $747,573 1993.53% O&M $1,321,606 $184,548 $1,137,058 13.96% $1,244,828 94.19% Labor $1,136,018 $438,731 $697,287 38.62% $1,136,109 100.01% TOTAL $2,495,124 $1,060,450 $1,434,674 42.50% $3,128,510 125.38%

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SLIDE 25

Questions?

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SLIDE 26

GCPUD Enterprise Risk

Q3 2019 Update

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SLIDE 27

Agenda

  • Current Business
  • Strategic Market Risk
  • Middle Office Framework
  • Work plan
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SLIDE 28

GCPUD ERM: Current Business

KEY DETAILS The Risk Department budget is dominated by insurance premiums. Out of a nearly $2.5MM budget, we have nearly $1.5MM remaining for the year and do not anticipate any overage at this time.

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SLIDE 29

GCPUD ERM: Current Business

  • AEGIS Policyholders’ Conference
  • Explore coverage strategies
  • Cost reductions
  • Active Loss Control
  • Relationship Extension
  • Project Support
  • Plan 5/6
  • Organizational Development
  • Middle Office Design

KEY DETAILS Risk Effort dominated by broker ‘onboarding’, middle office planning and project support.

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SLIDE 30

Strategic Market Risk

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SLIDE 31

Retail Competition: Wholesale Dynamics

KEY DETAILS 2005 data. Graph reflects “classic” peak hours congestion in PEPCO. Graph source: https://www.e-education.psu.edu/ebf483/sites/www.e-education.psu.edu.ebf483/files/Lesson_07/fig_7.04.png.

  • Power has long

had interesting real time dynamics driven by fundamentals

  • Years ago

congestion was noted for signaling high power prices.

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SLIDE 32

Retail Competition: Power Congestion

KEY DETAILS SPP is managing resources along a congestion plane, reflecting an inability to import excess power into a load zone, and

  • ffering to pay generators outside the zone to decrement production to relieve congestion.
  • By and large, SPP

is paying generators less than $20/MWh according to this map (at this time).

  • Large scale

renewable development is realized as lower wholesale pricing in real time markets.

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SLIDE 33

Retail Competition: Power Congestion

KEY DETAILS Large open spaces of land in the Midwest have been filled with wind generators. Similarly, the mountains of Wyoming, Colorado, and other accessible places have, too…

  • By and large,

MISO is paying generators less than $25/MWh according to this map (at this time).

  • Note the

location of the lowest prices.

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SLIDE 34

Retail Competition: Power Congestion

KEY DETAILS Texas, also, has experienced significant renewable development. Add that to CAISO’s development we discussed last quarter, there are a lot of places with negative wholesale pricing for an industrial shopper.

  • By and large, ERCOT is

paying generators $18- 19/MWh according to this map (at this time).

  • The blue zones in the

south reflect -$32. This is not uncommon in south or west Texas.

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SLIDE 35

California Congestion: California Imports

KEY DETAILS 2010 data, in millions of MWH. California imported a quarter of its needs at publication. Graph source: https://www.realclearenergy.org/charticles/2012/01/30/california_must_import_one-quarter_of_its_electricity.html

  • Recalling this slide

from last quarter:

  • Power generally flows

north to south, east to west

  • Does Grant County sit

inside or outside the premium congestion zone?

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SLIDE 36

Wholesale Dynamics: How can they afford it?

KEY DETAILS What sort of industrial customers could be located outside congestion zones and “soak up” power produced by renewable plants of these sort?

  • Simple – we are paying

them.

  • The Federal Production

Tax Credit is currently $24/MWh.

  • Large corporations with

tax appetite either buy the credits, or partnerships,

  • r the plants outright.
  • Tax credits are granted
  • nly for energy

generated.

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SLIDE 37

Wholesale Dynamics: How can they afford it?

KEY DETAILS Graph Source: https://cleantechnica.com/2018/05/04/us-wind-development-surges-as-pipeline-exceeds-30-gigawatts/

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SLIDE 38

Wholesale Dynamics: Retail Rate Conversion

KEY DETAILS An industrial customer able to locate in areas surrounded by renewable power is likely to have many options presented to them by the open market. Graph from EIA 2019 Energy Outlook.

  • Consider a real common

5-cent industrial rate costs.

  • The Federal Production

Tax Credit is $24/MWh, or 2.4 cents.

  • An entity able to operate

in a market is left with 2.6 cents to cover, plus profit, if the generation is “free”.

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SLIDE 39

Middle Office Framework

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SLIDE 40

What is a “Middle Office”?

TRADING IS BIG BUSINESS Many large concerns have come to similar solutions for similar concerns described similar ways.

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SLIDE 41

What is a “Middle Office”?

Front and Mid-Office

  • Distinctly Different but cooperative functions

ASSURANCE The Middle Office reviews, supports, and reports Front Office activity.

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SLIDE 42

Current State vs. Typical

ASSURANCE GCPUD has compressed these functions generally into the Front Office.

Current Typical

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SLIDE 43

Current State vs. Typical

ASSURANCE GCPUD has compressed these functions generally into the Front Office.

Current Typical

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SLIDE 44

Work Plans

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SLIDE 45

Work Plan

PROGRESS Demonstrate measurable accomplishment of goals with demonstrable value to the District.

  • By end of 2019:Q1
  • 2018 Major risk analysis
  • By end of 2019:Q2
  • Risk - Middle Office functional framework
  • By end of 2019:Q3
  • Task-based ERM Platform
  • By end of 2019
  • Integration report – Audit, Capital activity
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SLIDE 46

Thank you.

Devon Williams Risk Manager Dwilliams@gcpud.org 509.754.6604

grantpud.org

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SLIDE 47

Reliability Compliance Program July 9th Update

2019 – 2020 Gene Austin Compliance Manager July 09, 2019

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SLIDE 48

Overview

  • Recap – April Program Update
  • Program Improvement Initiatives
  • Foundational Program elements

Reliability Organizational Structure Hierarchy of Governing Documents

  • Reliability Program Calendar
  • Potential Non-Compliances (PNCs)
  • Budget to Actual

July 09, 2019

Reliability Compliance Program

2

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SLIDE 49

Recap – Ap April Program Up Update

Reliability Compliance Program

July 09, 2019

− Reliability Compliance Program Assessment − How we Manage Risk Today − Risk-Based Reliability Initiative − How we Manage Risk Tomorrow

3

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SLIDE 50

Reliability P Program Initiatives

Initiatives underway:

− Maintaining Day-to-Day Compliance Posture − Compliance Assessment, Continuous

− 2 new PNCs; 2 additional under evaluation

− District Reliability Structure defined − Reliability Council and User groups − Compliance Tools continue to be improved

− Doc Minder; SharePoint − Evidence Folder Structure simplified − Single Source of Truth framework

− Compliance staff development and training − Hierarchy of Reliability Compliance documentation − CIP Procedure Rewrite underway

Reliability Compliance Program

July 09, 2019

4

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SLIDE 51

District Reliability Organization

  • NERC Required Staffing

− Chief Compliance Officer − CIP Sr. Manager − Primary Compliance Contact − Alternate Compliance Contact

  • Reliability Council (new)

− Chief Compliance Officer/ CFO − CIP Sr. Manager/ COO − Power Production, Managing Director − Power Delivery, Managing Director − Chief Technology Officer − CIP Program Lead − Primary Compliance Contacts (Chair) − Alternate Compliance Contacts

  • CIP User Group (new)

− CIP Program Lead (Chair) − CIP System Owners, SAs and SMEs

− EMS, GMS, EACMS, PACS, WSY

− Primary Compliance Contact − Alternate Compliance Contact

  • Operations & Planning User Group (new)

− Reliability Standard Owners, Process Owners, and SMEs − Managers, and Supervisors − Primary Compliance Contact (Chair) − Alternate Compliance Contact

Reliability Compliance Program

July 09, 2019

5

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SLIDE 52

Hierarchy of Reliability Documentation

Internal Compliance Policy Resolution No. 8674

− CIP Sr. Manager (CIP-003-6 R3) − Reliability Compliance Program Plan − Cyber Security Policy (CIP-003-6 R1) − Physical Security Plan (CIP-006-6 R1) − Implementing Documents (all Standards)

− Procedu dures, Pl , Plans ns, , work pr process do documents − Gap A p Ana nalysis f for ne new o

  • r revis

ised d Standa dards ds − Training ining a and nd record keepi ping − Evidence ce o

  • f Com
  • mpliance

ce

− Audit E Eviden ence (all Standards)

− Reliabil bilit ity S Standard d Audi udit Worksheet eet

Internal Compliance Policy

  • Res. #8674

CIP Sr. Manager CIP-003-6 R3 Reliability Compliance Program Document Cyber Security Policy CIP-003-6 R1 Physical Security Plan CIP-006-6 R1 Work-Level Implementing Documents Audit Evidence RSAW

July 09, 2019

6

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SLIDE 53

Compliance C ce Calen endar 2019

2019-2020 2020

  • Compliance Program initiatives

Now thru Q1-2020

  • CIP Procedure re-write

Commencing

  • NERC Self-Certification Process

Q1-2020

  • Audit District Readiness

Q1 thru Q3 2020

  • Audit Notification WECC

Q2-2020

  • Audit, On-site

Q3-2020

Reliability Compliance Program

July 09, 2019

7

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SLIDE 54

Poten ential N Non-Compliances

Reliability Compliance Program

July 09, 2019

  • The District has 5 Potential Non-Compliances (PNC) at various

stages of review with the Regulator, WECC:

− Two PNCs identified during 2017 On-site Audit − One Self-reported PNC in October 2018 − Two new PNCs identified in Q1-2019

  • Plus

− Two additional PNCs in Q2-2019 under review − Additional PNCs may be identified as program enhancements continue

8

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SLIDE 55

2019 Budget and Actual 6/25/2019

$998,314 $550,448 $83,600 $333,766 $30,500 $182,733 $0 $4,752 $176,247 $1,734 Total CAP O&M Labor Travel and Training

July 09, 2019

Reliability Compliance Program

6