1. 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

2. 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

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

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

5. 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)

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

7. History
“Load Shedding
Blues”

8. 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)

9. 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.

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

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

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

13. Contract Fees

14. Net Generation

15. Plant Efficiency

16. IPP / PMC – The Experience
Eye Candy…

17. Cabras Power Plants Historical Vs. Post PMC Performance

18. Cabras Power Plants Historical Vs. Post PMC Performance

19. MEC Power Plant Performance

20. MEC 8&9 Availability

21. Tanguisson Power Plant Performance

22. Cabras Power Plants Historical Vs. Post PMC Performance

23. Cabras Power Plants Historical Vs. Post PMC Performance

24. Cabras Power Plants Historical Vs. Post PMC Performance

25. Cabras Power Plants Historical Vs. Post PMC Performance

26. 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

27. Thank You!
Questions or Comments?