94 COMBINED CYCLE JOURNAL, Third Quarter 2007

SPECIAL ISSUE: OUTAGE HANDBOOKASSET MANAGEMENT

The investment in North Ameri-can generation assets by Direct Energy LP, Houston, a unit of UK-based Centrica plc, totals several hundred-million dollars (sidebar). Critical to the companys financial success is its ability to focus

operational goals and objectives on maximizing power production across the Direct Energy fleet while manag-ing and mitigating technical risks.

To achieve its goals, the company implemented a strategic information architecture that transforms real-

time operating data from generating units into actionable information. Management at all levels of the busi-ness, and across various depart-ments, uses this strategic information to ensure best in class availability and reliability performance relative to corporate pro forma and market expectations.

Other benefits of the companys knowledge-management initiative include its ability to (1) maintain a high state of operational readiness, (2) reduce reactionary and costly downtime, and (3) maximize parts life and repair capability for capital inventory.

Direct Energy worked cooperatively with Strategic Power Systems Inc (SPS), Charlotte, to customize and deploy its information architecture, which uses ORAP to integrate the combined-cycle fleet for effective asset management. For a backgrounder on ORAP, access www.combinedcy-clejournal.com/archives.html, click 3Q/2005, click Proactive management of GT parts life. . . on the cover.

Optimizing the flow, analysis of plant operating data for effective asset managementBy Anthony Ligato, Direct Energy LP, and Salvatore DellaVilla, Strategic Power Systems Inc

1. Bastrop Energy Center: 553-MW, 2 1 combined cycle powered by GE Energy (Atlanta) 7FA gas turbines; dry low-NOx combustion system for emis-sions control; triple-pressure heat-recovery steam generator; Toshiba Interna-tional Corp (San Francisco) steam turbine/generator

2. Frontera Energy Center: 500-MW, 2 1 7FA-powered combined cycle with DLN combustion system for emissions control; triple-pressure HRSG; Alstom (Midlothian, Va) steam turbine/generator

3. Paris Energy Center: 250-MW, 2 1 combined cycle powered by GE Energy 7EA gas turbines; steam injection for NOx control; triple-pressure HRSG; GE steam turbine/generator

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SPECIAL ISSUE: OUTAGE HANDBOOK ASSET MANAGEMENT

Information infrastructureThe foundation for the flow of infor-mation from Direct Energys three combined-cycle plants (Figs 1-3) to the operating management team is the unit-level control and DCS (dis-tributed control system). The process begins with the collection, once per second, of control data into three major production-related measures: time, capacity (or energy), and events. The data collection and transforma-tion process, based on logic developed by SPS, is implemented by a product called ORAP Link (Fig 4).

It collects and time-stamps data, taking process points from the OSI PI OPC data access server or through an OPC connection to the DCS. (Note that OSI is the short form of OSIsoft Inc, San Leandro, Calif; PI is the industrys preferred data historian; OPC is a real-time industrial data-exchange protocol and an acronym for OLEobject linking and embed-dingfor process control.)

Selected data points are used to develop the specific mission profile for each operating unitfrom start-up to shutdown. The objective is to

develop a complete operating mis-sion for each unit, each plant, and the fleet with the highest possible data fidelity, accuracy, and quality; also, to eliminate the opportunity for error associated with having human involvement in the process of manip-ulating and managing key perfor-mance information.

The ORAP Link transformation logic records or calculates the (1) actual startup times, (2) starting reli-ability, (3) running reliability, (4) fuel use and instantaneous heat rate, (5) operating hours, and (6) megawatt-hours generated. It is the basis for calculating the following metrics:n Equivalent availability and reli-

ability (adjusting for seasonal plant output rating).

n Capacity and output factors.n Lifetime measures based on the

OEMs current guidelines.Regarding the last point, as revi-

sions and modifications are made to OEM guidelines (GER 3620J in Direct Energys case), the SPS trans-formation logic is updated to ensure full compliance with them. Many other operating parameters that impact scheduled maintenancecombustion inspections (CIs), hot-

gas-path (HGP) inspections, and major overhaulsalso are captured by ORAP Link and processed during the data transformation process.

ORAP Links data transformations are arranged to accommodate the power producers scheduled weekly and monthly production reporting requirements. Once weekly produc-tion data are developed, time, capac-ity, and event data automatically are placed into the ORAP Data Entry Web tool.

The only additional information that may be required is relevant outage detail available through the O&M staff. It may include the rea-son for the event, actions taken, symptoms, corrective action, and root cause, etc. These inputs are human knowledge and must be entered into the Web tool to complete each operat-ing period. They are needed for cal-culating the operational availability, reliability, and maintainability of each plant.

Data processed through ORAP Link is fully compliant with Direct Energys weekly production report-ing requirements (Saturday through Friday). All process data begins Sat-urday morning at 00:00 and ends at 24:00 (midnight) on the following Friday. This ensures that a 168-hr week is capturedthat is, 168 period hours. A similar process is followed to develop the actual monthly period hours for each unit and plant.

Every start sequence, either suc-cessful or unsuccessful, is captured during the transformation process. Any failure to start, and each trip at load (data collected include power level and ambient conditions), are captured to develop static references for both starting failures and trips.

If no trips or failures to start occur, and the operating mission is success-ful and has a safe shutdown sequence, the operating or service hours, power produced (gross and net), fuel used, load swings, and other operating metrics are derived from the process data. No additional input from the O&M staff is required here. This pro-cess repeats for each operating mis-sion and for each of the weekly and monthly reporting periods.

With each economic mission cap-tured in the transformation pro-cess, Direct Energys management has an accurate understanding of the probability that each mission will be completed successfully and profitably. This provides an effec-tive operational planning and risk management tool, with responsible parties able to determine the actual performance of each unit and plant rapidly. All information is made

FronteraDCS

BastropDCS

Paris DCS

WEB-BASED DATA ENTRY TOOL

Outage-eventdetails Symptom Corrective action Root cause

ORAP LINKSERVER

ORAP LINKSERVER

ORAP LINKSERVER

ORAP Link data

transformationprocess

Includes: Start times Fuel usage Generation

CENTRAL ORAPDATABASE

Parts tracking data Repair and removal history Part location (site, unit, position, etc) Life expended Life remaining

Web-based output, including: Management reports Outage planning Parts tracking reports RAM benchmarking Production reports Status reporting E-mail notifications

PARTS TRACKING TOOL

WEB-BASED REPORTING

4. Direct Energys scalable ORAP platform enables information sharing from plant to plant and between plants and the companys executive offices. Sys-tem architecture is designed for maximum automation, minimum manual input, repeatable and timely data transformations and processing; common and under-standable performance metrics and value are tied to pro forma expectations

96 COMBINED CYCLE JOURNAL, Third Quarter 2007

SPECIAL ISSUE: OUTAGE HANDBOOKASSET MANAGEMENT

directly available for viewing and sharing by each plant management team and executive management. All reporting is delivered through an Internet-based interface and a fully secure Website. All historical data are easily retrievable for reference and comparison.

Note, too, that all performance met-rics and measures provided through the weekly and monthly reports are fully compliant with industry standardsboth ISO 3977 and IEEE 762. This ensures that Direct Energy management is able to benchmark its operating performance against inter-nal goals and objectives, as well as through relevant fleet comparisons made available through either NERC GADS, or the base ORAP system. The latter provides a more specific and timely benchmark reference for Direct Energy.

Managing maintenance, parts lifeIn todays competitive market, the ability to effectively track and man-age both lifetime and movement of turbine and other capital spares is essential. Replacement and repair costs for hot-section partsespe-cially rotating blades and stationary vanesare extremely high.

Thus an owner must optimize the operating life and repairabil-ity of such hardware to maximize its return on investment. The rotation of capital hardware through a fleet adds another operating constraint: Varying fuel conditions and operat-ing temperatures from unit to unit may negatively impact the price/per-formance of the hardware.

Additionally, managing mainte-nance intervals based on the operat-ing profile of each unit is important and must be used to effectively con-trol the lifetime of parts while mini-mizing fall-out rates. For example, if an HGP inspection is performed prematurely, available parts life will be sacrificed and this could result in

a higher life-cycle cost. Conversely, in the merchant energy market, mil-lions of dollars are placed at risk if maintenance is not performed according to the OEMs schedule and a failure results.

Thus tracking of parts life was anoth-er major requirement of Direct Energys asset management process. This was accomplished by integrat-ing the SPS ORAP Parts Tracking tool into the information flow. It requires that for every hardware ele-ment to be tracked at the parts level

(for example, combustor, transition pieces, individual blades and vanes, etc) a serial number must be entered manually into the database. And any serialized part that is either in stores or at a refurbishment shop is tracked in a similar manner.

This initializing process is the basis that provides Direct Energy the ability to manage its fleet down to the serialized-parts level. Tracking and managing parts from that point forward can be performed by the piece or set. Condition-based main-

Direct Energy, a multi-faceted company

Direct Energy LP supplies gas, electricity, and related ser-vices to more than five million business and residential customers in North America. The companys vision is to create value by being the leading integrated supplier of energy and related services in the geo-graphic markets servedincluding many of Canadas southern prov-inces, Texas, Illinois, and most states east and north of Indiana.

Energy market conditions in North America are continually changing because of (1) volatile commodity prices and fierce competition, and (2) an evolving and constraining regula-tory climate. The companys growth strategy is driven by how cost-effec-tively it can build an asset base with optimized performance and maxi-mum return on investment. Typical of todays merchant energy market, Direct Energys plants cycle daily.

A major aspect of the companys strategy is to produce a significant percentage of the gas and electricity needed to satisfy customer demand. In Alberta, for example, Direct Ener-gys natural-gas production assets provide 17% of customer demand; its three operating combined-cycle plants in Texas provide 31% of peak customer demand.

To reliably and economically

meet customer energy needs, Direct Energy is focused on achieving and delivering measurable best in class performance across the operating fleet. Additionally, expan-sion of Direct Energys operating portfolio requires the extension of a corporate culture that expects and rewards strong performance. This means value-driven execution based on monitoring, measuring, and managing performance to well-defined corporate benchmarks and expectations. ORAP provides a scalable common platform for infor-mation sharing, from plant to plant; extending this process to newly acquired operating assets is simply procedural.

Thats the rationale behind Direct Energys development of an infor-mation architecture to effectively manage assets across its fleet and to provide timely and uniform feed-back for plant managers, executive management, and other business units. An important additional benefit for Direct Energy is its ability to fulfill the specific requirements of various external stakeholdersincluding insurance companies, project devel-opers, and business assurance audi-tors. Stakeholders, both internal and external, now have access to single-source performance data.

Table 1: Yearly projections for major maintenance

COMBINED CYCLE JOURNAL, Third Quarter 2007 97

tenance of parts that have a high capital costsuch as a boiler feed pumpcan be tracked similarly.

The key controlling variables associ-ated with parts condition and lifesuch as ambient and operating tem-peratures and load swingscaptured by ORAP Link are the basis for cal-culating factored hours and starts for each unit. As noted earlier, in Direct Energys case these lifetime mea-sures are developed by implementing GEs GER 3620J methodology within ORAP Link.

ORAP Links calculation of fac-tored hours and factored starts are applied to each part identified as being in the current configuration of each operating unit. Once a part is removed from an operating unit and is sent to a shop for repair and/or restoration, or is scrapped, the ser-vice time (factored hours and starts) stops being applied to that serialized part. Thus this process affords Direct Energy the opportunity to manage its capital inventory requirements, max-imize the use and repair of critical parts, and maintain optimized stores for full depreciation value.

Further, based on the operating profile of each unit, Direct Energy is able to effectively project and plan for CI, HGP, and major inspections/overhauls more effectively. ORAP Link provides a yearly projection for inspections/overhauls that can be used as a planning and schedul-ing tool (Table 1). By combining the

GT trips from loadNo. of tripsGT factored starts (CI)GT factored starts (HGPI/MOH)Gross capacity factor, %Net capacity factor, %Service factor, %Starting reliability, %Service hours per startEquivalent availability factor, %Equivalent forced-outage factor, %Equivalent maintenance-outage factor, %Equivalent planned-outage factor, % Equivalent forced-outage rate, %Availability, %Forced-outage factor, %Maintenance-outage factor, %Planned-outage factor, %

Table 2: Direct Energys key performance indicatorsGross generation, MWhNet generation, MWhDuct burner fired hoursDuct-burner gas fuel consumption, million BtuGT fired hoursGT peak fired hoursGT gas fuel consumption, million BtuAverage heat rate, Btu/kWhService hoursGT factored hours (CI)GT factored hours (HGPI/MOH)Reserve shutdown hoursForced-outage hoursMaintenance-outage hoursPlanned-outage hoursSuccessful startsTest starts/restartsRevenue starts

Table 3: Daily operating report

98 COMBINED CYCLE JOURNAL, Third Quarter 2007

parts-tracking and maintenance- planning capabilities through ORAP, Direct Energy has an effective asset management/optimization tool.

Corporate management reportingThe value and importance of tracking and monitoring key performance met-rics is clearly understood as a major part of Direct Energys corporate cul-ture. The belief is that improvements cannot be made, or acceptable and profitable performance sustained, without access to valid, uniform, and

meaningful metrics. If strong com-munication is a key aspect of any suc-cessful organization, Direct Energys management reporting process is the foundation.

To effectively manage across a growing fleet of operating assets, Direct Energys management reports provide a strong basis for effective decision-making. Some of the key performance indicators required and available in the various reports are identified in Table 2.

Management has access to all per-formance data through a user inter-face to the Web called ORAP Inter-

active. It allows users to select various reporting periods and review key performance indicators at any time. This process provides a uniform approach to communicating effective-ly and with no variability as to the meaning of acceptable performance across the operating fleet.

The bottom line: Direct Energy executives can view the performance of their entire portfolio in a single consolidated report at the same time that information is available to plant-level personnel. This once manual and error-prone process is now fully automated.

ORAP Interactive also provides access to the ORAP Parts Tracking reports and supplemental data views available through ORAP Link, pro-viding direct access to the process data transformations (Table 3). Cou-pled with base ORAPs benchmark-ing reports for fleet performance com-parisons, and with parts tracking for effective capital spares management, ORAP Interactive unifies the data and reporting requirements across Direct Energys fleet for effective asset management.

Engineering review of the ORAP Link data is conducted periodically by both Direct Energy and SPS project engineers to validate the fidelity of the data. Supplemental data and transformed business information also are available for review and use. Included are the following major reporting features: daily production reports (hour by hour); each operating mission pro-file (start-up to shutdown); current factored hours and starts (cumula-tive); and maintenance projections (20-yr projection if desired). These ORAP Link data views are also supplemented by active messaging to operating management handheld devices (PDAs) on a near-real-time basis. This notification capability provides access to unit starts, load, trips, and other relevant current performance data.

The value proposition to Direct Energy for establishing shared and automated information architecture across its operating fleet is improved overall performance, shared operat-ing values and practices, and a better understanding of what is required to achieve best in class perfor-mance. With a strong infrastructure established, Direct Energy executes oversight and control through timely access to their operating information over the Internet. Further, the key performance indicators of success are well defined and directly coupled with the pro forma expectations for profitable performance. ccj

501F Users Group 2008 Conference

January 14-17, 2008Contemporary Resort at Walt Disney World, Orlando

Discussion topics include 501F compressor, combustor, and hot-gas-path issues,

TXP obsolescence and upgrades, personnel safety initiatives

Meeting participation is limited to members of the 501F Users Group and all meeting information and registration information is sent directly from our web-site.

Participation in the users group is limited to compa-nies who either have an equity interest in, are cur-rently operating, have under construction, or have a valid contract for delivery of future 501F units manu-factured by Siemens or Mitsubishi. Within the com-panies that meet these criteria, group participation is limited to individuals who are directly involved in the operation, maintenance, or construction of the unit.

All information is broadcast to users through the groups website. Users interested in joining the 501F Users Group should open http://501F.Users-Groups.com and navigate to the "Membership" menu option.

Exhibitors: Contact Caren Genovese, meeting coordinator, at carengenovese@charter.net

Note: The 501F and 501G Users Groups are co-locating their conferences again this year and will have some joint sessions.