Up Time Magazine- April/May 2008 - (Page 9) Plotting A New Course for Improved Performance at BELCO T here is an abundance of data supporting the effectiveness of RCM in a broad range of industries. However, when staff at the Bermuda Electric Light Co. Ltd researched RCM, precious little data was found regarding its application to primarily large diesel driven power utilities. The company subsequently decided upon a Planned Maintenance Optimization (PMO) based approach with aggressive targets and timelines, including a 20% increase in productivity, cutting downtime in half and delivering on the initial phase targets within 1 year. All of this would take place in unproven territory. This article will review the challenges encountered in delivering on the promises of RCM and how they were overcome. What did we overcome? The list includes: working in an antagonistic unionized environment, performing difficult software system integration, securing the appropriate data to keep the program alive, achieving results in a plant that was already being short staffed, transitioning staff toward total responsibility and persuading individuals who had already experienced “change fatigue”. The Bermuda Electric Light Company is the sole provider of electricity for the country of Bermuda, supporting a population of 66,000 residents along with numerous business and tourist visitors. With a 100 year history in this role, BELCO continues to improve its performance for both shareholders and customers through initiatives designed to deliver reliable, cost effective electricity and shareholder value. We provide service to approximately 30,000 metered connections with half of the demand for electricity coming from a pool of less than 200 large customers. What makes Bermuda’s power provider distinct from typical power utilities in the US is that it derives the bulk of its energy production from diesel engines. The US as a whole generates only 3% of its electricity use from oil while we use virtually 100% oil. (There is a government owned and operated incinerator that generates less than 2% of the annual kWh production). BELCO does employ gas turbines but even these are configured to run on a medium grade of diesel fuel. In 2005, we decided to pursue a Reliability Centered Maintenance (RCM) Program. We will discuss our progress, the obstacles overcome, those still to be overcome and the results we have achieved to date. As the sole supplier of electricity in a high cost of living jurisdiction, BELCO is no stranger to controversy either. Record oil prices for a country entirely reliant on oil have driven retail costs to over 35 cents/kWh. As a monopoly, the magnifying glass is perpetually on the company, and at any misstep there are those detractors ready to take aim. However, the company has been able to maintain a positive image in the community over the years, due in part, to being a great supporter of community based initiatives and events. Bermuda’s forefathers had the foresight to construct very strong homes, ready for hurricane force winds. There are no shortage of vintage homes on the island, some over 250 years old complete with their original roofs, chimneys and walls. The power system cannot claim such immunity from hurricane strikes, and during their occasional visit – perhaps once in 7 years or so – there is massive community support for the workers who work night and day to restore power as quickly as possible. This is somewhat of a testament to BELCO’s relationship to the community. The last major storm – Hurricane Fabian - was in 2003 and left many without power for several days, more than a week in a few cases. Yet, this was a rallying point for BELCO. Events like these can tip the scales at any time, especially with talk of regulation being floated around occasionally. No event caused more of such talk than a July 14, 2005 fire. In the early hours of the morning, High Voltage switchgear installed in the 1960s faulted, caught fire and cascaded to each successive switch and onto an adjacent High Voltage board. These events led to an island wide blackout and a significant environmental situation. Ironically, residents were back on power within a day, while it just so happened that the city power – the economic engine of the country - could not be restored for several days. With virtually an entire underground network of power distribution, there was little incentive for commercial buildings to have emergency generators given hurricane threat to their power supply was extremely low. Yet once again, BELCO bounced back from this disaster. With that said, it is events such as these that provide the external impetus that keeps management on their toes, anticipating the need to adapt, and, whenever possible, putting programs in place to increase efficiency before any external pressures to do so are exerted. www.uptimemagazine.com 9 http://www.uptimemagazine.com
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