1. Presented by: Barry Rederstorff, Staff Engineer Engineering Services APP Site Visit October 30 – November 4, 2006 Coordinated Performance Program & Corporate Culture Coordinated Performance Program & Corporate Culture

2. 2 Efficiency KEEP IT RUNNING! What is your #1 Priority in the Power Plant? Safety Legal / Environmental Compliance Capacity

3. 3 What Determines Efficiency? DesignDesign MaintenanceMaintenance OperationOperation

4. 4

5. 5 Design –Cycle –Equipment –Cooling –Emission Controls What Determines Efficiency?

6. 6 AEP Operated Coal-fired Units First & Largest Operator of Double Reheat Units (worldwide) 10 Active – 450 to 800 MW 2 Retired Largest Coal-fired Units – 6 x 1300 MW 20 supercritical units –All AEP fossil units built since 1963 were supercritical (does not include units acquired in C&SOE & CSW mergers. Gavin Unit 1 – 1300MW Cardinal Plant

7. 7 AEP Efficiency Accomplishments U. S. Firsts 1924First reheat generating unit -- Philo Plant 1941First very high pressure (2,300 psi), natural-circulation generating unit -- Twin Branch Plant 1949First high-pressure, high-temperature combination (2,000 psi & 1,050 F main steam & 1,000 F reheat) -- Twin Branch Plant 1950First heat rate below 10,000 Btu/kwh -- Philip Sporn Plant 1957First supercritical-pressure steam (4,500 psi) and super-high temperature steam (1,150 F) & double-reheat -- Philo Plant 1960First Heat Rate below 9,000 Btu/kwh -- Clinch River Plant 1966First control room simulator to train power plant operating personnel -- Cardinal Plant 1981First application of sliding-pressure technique on supercritical-pressure generating units -- Gen. James M. Gavin Plant

8. 8 Maintenance –Inspection Interval –Level of Refurbishment –Availability for outages What Determines Efficiency?

9. 9 Operation –Training –Staffing –Monitoring (availability of Data) What Determines Efficiency?

10. 10 What is Required Funding ($) Culture –Will – Dedication – Attitude Culture is a driving force –Can help offset lack of resources (both $ and staff) –The wrong culture can impair the effectiveness of adequate resources

11. 11 Corporate Culture

12. 12 Corporate Culture Accountability Organization Corporate philosophy for Performance Communication Proactive programs Efficiency Improvement for Existing Plants

13. 13 Corporate Culture Accountability Organization Corporate philosophy for Performance Communication Proactive programs Efficiency Improvement for Existing Plants Accountability

14. 14 Accountability Who Does What? What are the Incentives? –Organizational Internal Competition –Compensation Performance Based –Pride

15. 15 Organizational Accountability Engineering, Projects & Field Service Engineering Services Region Engineering Plants Fossil & Hydro Generation Generation

16. 16 Corporate Culture Accountability Organization Corporate philosophy for Performance Communication Proactive programs Efficiency Improvement for Existing Plants Organization

17. 17 Supporting Organization Structure –No Silos –All Stakeholders Must be Organizationally Integrated –Cross Organization Teams Generation Performance Team Goals Established for –Incentive Compensation –Business Plan –Management Overview Capabilities –Engineering Specialists –Experience –Thermal Performance Analysis Heat Balance Modeling (PEPSE)

18. 18 Corporate Culture Accountability Organization Corporate philosophy for Performance Communication Proactive programs Efficiency Improvement for Existing Plants Philosophy

19. 19 Corporate Philosophy for Performance “Best in Class” “Leader” IT MAKES A DIFFERENCE “Innovator” “World Class”

20. 20 Corporate Culture Accountability Organization Corporate philosophy for Performance Communication Proactive programs Efficiency Improvement for Existing Plants Communication

21. 21 Communication Information on heat rate performance is readily available: –Actual/Design/Baseline Information GADS (Generating Availability Data System Heat Rate Deviation Report (HRDR) Heat Balances Thermal Performance Kits On-line heat rate monitoring system - PI/OM Communicating/Sharing across System –Region Heat Rate Meetings –Generation Performance Team (GPT)

22. 22 AEP GADS GADSGADS ENERATING VAILABILITY ATA YSTEM AEP GADS Uses North America Electric Reliability Council Standard definitions Data is reported to NERC Additional data is added to generate custom internal reports AEP GADS Uses North America Electric Reliability Council Standard definitions Data is reported to NERC Additional data is added to generate custom internal reports EFOR AVAILABILITY SERVICE HOURS OUTAGE CAUSES HEAT RATECOSTS CAPACITY FACTOR GENERATION FUEL CONSUMPTION LOAD DISTRIBUTION BASELINE HEAT RATE HEAT RATE DEVIATION

23. 23 AEP GADS Standard Reports Consolidated Data Operating Performance Data Summary Event Data Unit Descriptive Listing of Outages & Curtailments Continuous Operation ReportUnit Performance Hours Unit Performance StatisticsCause Code Summary Performance & Cost Data Generating Plant Production Cost DataCoal & Production Expense Summary Plant Performance & Fuel ConsumptionUnit Performance & Fuel Consumption Heat Rate StatisticsHR Deviation by Series Unit Loading & Starts

24. 24 Corporate Culture Accountability Organization Corporate philosophy for Performance Communication Proactive programs Efficiency Improvement for Existing Plants Proactive Programs

25. 25 Routine Heat Rate Improvement Guidelines 1. Drain Valve Leakage 2. Steam Trap Leakage 3. Reheat Steam Attemperation 4 Sootblowing Schedules 5. On-line Monitoring of Operator Controllable Losses (PI/OM Screens) 6. Auxiliary Power 7. Condensers 8. Boiler Flue Gas Exit Losses 9. Steam Temperature Thermocouple Calibration or Replacement 10. Steam Temperature Controls Tuning 11. Feedwater Heater TTD and DCA

26. 26 Infrared Thermography Heat Rate Improvements at Kanawha River Plant Unit 1

27. 27 Before 2004 GBIR Managers used the vent stack to determine if the unit was on-line Average 15,000 #/hr make up to the boiler

28. 28 Find the Leaks Steam Cycle places to look –Problem valves –High value valves –Blow down tank –Miscellanous Drain Tank –Condenser Drip Leg Scans required about 24 hours total (field and reporting). After 2004 GBIR, Average 6,000 #/hr make up to the boiler

29. 29 Identify Benefits Make-up Water $ Savings Fuel $ Savings Reduced Maintenance $ –Fewer Pulverizers needed for Full Load –Boiler less stressed Reduced Emissions $ Culture –Increased Support for the PdM program –Morale Improvements

30. 30 Drain Valve Leakage Penalty Estimator – Subcritical Unit a

31. 31 On-Line Monitoring Sample PI OM Screens

32. 32 PI/OM Screens (Partial Listing) Heat Rate Controllable Cost –Main Steam Pressure Penalty –MS Temperature Penalty –RH Temperature Penalty –Attemperation Penalty –Excess Air Penalty –Auxiliary Power Penalty Turbine/Condenser Screen –Turbine Eff. & Penalty –Condenser Penalty –Waterbox Differentials –Condenser Air Leakage –Air Heater Schematic –Dry gas loss penalty –SCAH penalty Feedwater Heaters Screen –HP Heater TTD –HP Heater DCA –LP Heater TTD –LP Heater DCA Boiler Screen –Tube Temperature Data –Sootblower Optimization Environmental Screen –Opacity –NOx –SO2 Business Summary Screen –Dispatch Accuracy –Heat Rate –Commercial Availability Miscellaneous –Water Loss Trends

33. 33 Business Summary Screen

34. 34 Feedwater Heaters Help Screen

35. 35

36. 36 GPT Mission Develop an integrated performance monitoring program for the entire Fossil & Hydro Generation fleet in order to provide a disciplined approach to monitoring and tracking of performance to support the improvement of System Heat Rate Deliver a program that includes accountability, data collection, analysis, and retention, an educational program, and a reporting/ distribution/ communication system

37. 37 Components of an Integrated Program Centralized Accountability and Coordination Education Program Monitoring System Test Program Data Evaluation and Test Trends Maintenance of Records Management and Engineering Reports Audit for Quality and Compliance Benchmark other Utilities

38. 38 F&H Mgt Sponsor F&H Mgt Sponsor Engineering Services Engineering Services Plants Region Engineering Region Engineering Generation Performance Team Generation Performance Team GPT Make-up

39. 39 Team Organization Generation Performance Team Region HR Champions Plant HR Champions

40. 40 Roles and Responsibilities Generation Performance Team Establish and coordinate the overall program Engineering Services Provide a system heat rate overview and Expertise Region Engineering ( Region Heat Rate Champions ) Support Plant Heat Rate Champions and plants Plant Heat Rate Champions Support heat rate monitoring and improvement activities at their plant

41. 41 Education Program Audience –Test/Analysis Personnel –Equipment/System Engineers –Operators –Management Subject Matter –Modeling Software –Test Instruments –Test Procedures –Test Analysis –Power System Concepts –Data Relevance –Optimization Providers –Simulator Learning Center –Generation Performance Team –Engineering Services T

42. 42 Formal Testing Program 1960s –Extensive Program –Faded away by 1970s due to focus on capacity 1988 –New Test Program Defined in response to Regulatory Interest –Backed by inclusion in the Incentive Compensation Plan 1990s –Scope Reduced to Mostly Voluntary due to Staffing and Organization Issues Resulting from Restructuring for Competition 2005 –Revised Voluntary Program to align with Instrumentation and Data Collection Improvements Future –Full Automation of Collection & Calculation with Station Instrumentation

43. 43 Formal Testing Requirements –Corporate Guideline identifies tests and frequency Instructions for Performing Tests & Calculating Results –In-house developed Performance Test Manual Type of Instrumentation –Dedicated Test Instrumentation –Installed Plant Instrumentation –PI Data Collection System –Combination of the above

44. 44 Components of an Integrated Program Data Evaluation and Test Trends – Automate to the extent possible –Look at trends, do not just accumulate and file Management and Engineering Reports –Formatting Important Good Summary Graphs of trends Maintenance of Records –Retrievability –Completeness –For Tests, Design Basis, Computer Models, etc.

45. 45

46. 46 Heat Rate Deviation Report (HRDR) The Heat Rate Deviation is the difference between the Actual Heat Rate and Baseline Heat Rate. This tool is designed to breakdown the unit deviation into individual equipment and operational components.

47. 47 HRDR Benefits –Replaces time consuming, manual to semi- automated data collection and calculations requiring a high level of expertise with limited availability of results to others outside of the plant –Engineering or management tool, unlike real time displays that are more of an operations tool –Provides consistent results across the system for easy unit to unit comparison –Widespread data availability

48. 48 HRDR Summary Screen

49. 49 HRDR Summary Screen (Lower Portion)

50. 50 HRDR Detail Screen

51. 51 Questions?

52. 52 Come Join Us Performance Focus Session

53. 53 Performance Focus Session Generation Performance Team –Charlie Powell –Kim Stalnaker –Dan Keck –Warren Ashton Engineering Services –Tom McCartney –Bill Reinhart –Bal Sood Barry Rederstorff, Engineering Services –Generation Performance Team Lead