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

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.

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

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

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

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

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

Loss Drivers: Engines Overheating Fuel Disruption Lubricant Disruption Fire Following

Loss Drivers: Engines Overheating Fuel Disruption Lubricant Disruption Fire Following

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

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

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

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.

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

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

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

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.

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

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

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

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

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

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

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

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

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

Thank You Bruce A. Tagg, ALCM Senior Engineering Exposure Analyst Mutual Boiler Re – a member of the FM Global Group Bruce.Tagg@mutualboilerre.com 1.610.407.7825