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Guam Power Authority Presentation to the Pacific Power Association 14 th 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.
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Guam Power AuthorityPresentation to thePacific Power Association14th Annual Conference & Trade ExhibitionAugust 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- 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 • Performance Improvement Projects • Outsourcing • Contract Terms • Communication • and Reporting • Financing • Budgeting • Compensation Structure • Staffing • Training • Operations
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
IPP / PMC – The Experience Eye Candy…
Cabras Power PlantsHistorical Vs. Post PMC Performance Post PMC
Cabras Power PlantsHistorical Vs. Post PMC Performance Post PMC
PMC - Conclusions • 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?