Guam Power Authority Presentation to the Pacific Power Association 14th Annual Conference & Trade Exhibition August 26, 2005 From Independent Power Producers.

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Presentation transcript:

Guam Power Authority Presentation to the Pacific Power Association 14th Annual Conference & Trade Exhibition August 26, 2005 From Independent Power Producers to Performance Management Contracts, Guam Power Authority’s Long Road Towards Reliable Power

Team Members Frank S. Blaz – GPA Manager of Generation John J. Cruz, Jr., P.E. – GPA Manager, Strategic Planning & Operations Research Jennifer G. Sablan – GPA Asst. Manager, Generation (Acting) Arlene M. Aromin, P.E. – Special Projects Engineer, GPA Executive Office

Overview Introduction History Performance Management- Concept Performance Management- Reality Performance Management- The Experience Conclusion

Introduction Pioneered Public-Private Partnerships on Guam Independent Power Producers Performance Management Contractors

History Challenges to address the ongoing emergency and urgent need for adequate and reliable power generation system in Guam Depletion of Personnel Resources Accelerated Load Growth beyond forecasts Increased Forced Outage Rate Load Shedding GENERATION EXPANSION PROJECTS 1993 – Fast Track Diesel (App 93 Mw) 1992 / 1994 – Dededo Combustion Turbine (App 45 Mw) 1995 / 1996 – Cabras 3 & 4 (App 79 Mw)

History- Privatization Phase I 1996 - GPA began emergency procurement for Independent Power Producers (IPP) & Performance Management Contractors (PMC) Marianas Energy Company (MEC) Piti 8&9 - 88 MW Slow Speed Diesel (1999) Taiwan Electrical and Mechanical Engineering Services (TEMES) Piti #7 - 40 MW Combustion Turbine (1997) Pruvient Energy Guam Inc. Tanguisson Power Plant - 53 MW Steam (1997)

History “Load Shedding Blues”

History- Privatization Phase I IPP Responsibilities: Construction, operation and maintenance Performance Guarantees (Heat Rate & Availability) PMC Responsibilities: Rehabilitation, operation and maintenance Management of GPA Employees Performance Guarantees (Heat Rate, Availability, EFOR)

PMC Conceptualization Continued Improvement of GPA Operations Lockbox Accounts Further Privatization Efforts (PMC) Public Utilities Commission strongly recommended the implementation of permanent PMC Cabras Steam Power Plant Cabras Low Speed Diesels Development of RFP for privatization of management of all GPA Baseload Plants.

PMC - Reality Maintenance Financing Budgeting Performance Compensation Structure Staffing Training Operations Maintenance Performance Improvement Projects Outsourcing Contract Terms Communication and Reporting

PMC- Reality Performance Management Contractors 2003 - Taiwan Electrical and Mechanical Engineering Services (TEMES) Cabras 1&2 – 132MW Steam 2005 - Doosan Engine Cabras 3&4 – 88MW Slow Speed Diesel

PMC – The Experience Equivalent Availability Relative Heat Rate Staff Optimization Operations & Maintenance Spending Personnel Overtime Spending

Contract Fees

Net Generation

Plant Efficiency

IPP / PMC – The Experience Eye Candy…

Cabras Power Plants Historical Vs. Post PMC Performance

Cabras Power Plants Historical Vs. Post PMC Performance

MEC Power Plant Performance

MEC 8&9 Availability

Tanguisson Power Plant Performance

Cabras Power Plants Historical Vs. Post PMC Performance

Cabras Power Plants Historical Vs. Post PMC Performance

Cabras Power Plants Historical Vs. Post PMC Performance

Cabras Power Plants Historical Vs. Post PMC Performance

PMC - Conclusions Results: Staffing Optimization Significant Plant Performance Improvements Staffing Optimization Expedited completion of CIP/PIP (Procurement) Heat Rate, efficiency gains Reliability improvements Skills improvement of O&M Personnel Process efficiency enhancements Economic Dispatching Results: $ Savings to GPA and its ratepayers

Thank You! Questions or Comments?