ASSET MANAGEMENT SOLUTIONS FOR ENERGY

analyses to evaluate optimal assessment, repair,

refurbishment or replacement/decommissioning

timing.

Enabling Technology to Support Energy Utilities Best Practices. In world-class asset management organizations,

technology plays a key role in supporting the

asset information needs of the organization,

capturing and maintaining continual condition

assessment information and each asset’s life

cycle costs. The Black & Veatch approach to

technology is based on our belief that

technology should be an enabler of business

performance improvement or success.

Leveraging the depth and breadth of our best

practices and utility-specific technology

experience ensures that solutions are tailored

specifically to your utility and integrated with

your business processes and people to maximize

the value from your technology investment.

Unparalleled Depth and Breadth ofInfrastructure Management Expertise.Going beyond the asset inventory and condition

assessment requires a multi-disciplinary team of

professionals to identify the value-added

activities for your specific agency—to ensure

effective implementation with the greatest value

gained. Black & Veatch has grown with the

industry, remaining on the leading edge of

strategic and tactical-level Asset Management

program development in North America,

Europe, Asia and Australia.

© Black & Veatch Holding Company 2009. All Rights Reserved. The Black &Veatch name and logo are registered trademarks of Black & Veatch HoldingCompany. Other services marks and trademarks included herein are thetrademarks or registered trademarks of their respective companies. 6/15/09

ASSET MANAGEMENT SOLUTIONS FOR ENERGY Delivering

AssetPerformance

AssetConditioningMonitoring

PerformanceManagement

System

SystemPlanning

ModelFinance/HR

System

Asset RiskManagement

AssetLifestyle

Optimization

Materialsand InventoryManagement

Work Management

CIP andOperationalBudgeting

CapacityAnalysis

Customer Careand Billing

SCADA

OutageManagement

System

CustomerInformation

System

Meter DataManagement

Systems

GIS

EAM/CMMS

Mobile Dispatching

and Response

For more information on Asset Management, call(913) 458-3440, email [email protected] or visit uson the Web at www.bv.com/consult.

BUILDING A WORLD OF DIFFERENCE® BUILDING A WORLD OF DIFFERENCE®

One of the fundamental elements of a Utility of the Future is the ability to optimize

assets and operate efficiently. Maximizing the use and performance of infrastructure

assets, while ensuring that quality and reliability of service are not compromised, has

become increasingly critical to utilities around the globe. Critical questions to tackle

when initiating an Asset Management Program include:

�� Which Asset Groups are most critical to

delivering value to the Triple Bottom Line

(Environment/Social/Economic)?

�� What Program Elements will provide the

greatest value in the short term and in the

long run?

�� Which Asset Management Program is best

for my Organization?

�� How do we prioritize our Asset Management

investment options?

�� What are the long-term implications of

my asset investment decisions in generation

transmission and distribution?

By leveraging our decades of experience, Black & Veatch’s Asset Management

Solutions Team, provided through our Enterprise Management Solutions (EMS)

division, can help answer these and other critical questions to jump start your Asset

Management Program.

Energy utilities looking to

implement a smart grid first

need to find ways to optimize

their current expenditures,

reduce risk exposure, and build

confidence in their asset-related

decision making. Black & Veatch

Asset Management can help.

� Global Leadership in Asset Management Practices

� Value Developed Early through Practical Improvements

� Intelligent, Integrated Utility Information Technology Solutions

� Structured Enterprise Asset Management Framework and Program Development Approach

The Black & Veatch Difference:

ASSET MANAGEMENT SOLUTIONS FOR ENERGY

The selection and implementation process for youroptimum technology solution ensures the best

functional match and mitigates the risks inherent inlarge-scale implementation projects.

Asset Management involves a broad spectrum

of systems, technologiesand processes

within your utility.

BV-107 Asset Mgmt Electric.qxd 6/12/09 1:26 PM Page 1

One of the fundamental elements of a Utility of the Future is the ability to optimize

assets and operate efficiently. Maximizing the use and performance of infrastructure

assets, while ensuring that quality and reliability of service are not compromised, has

become increasingly critical to utilities around the globe. Critical questions to tackle

when initiating an Asset Management Program include:

�� Which Asset Groups are most critical to

delivering value to the Triple Bottom Line

(Environment/Social/Economic)?

�� What Program Elements will provide the

greatest value in the short term and in the

long run?

�� Which Asset Management Program is best

for my Organization?

�� How do we prioritize our Asset Management

investment options?

�� What are the long-term implications of

my asset investment decisions in generation

transmission and distribution?

By leveraging our decades of experience, Black & Veatch’s Asset Management

Solutions Team, provided through our Enterprise Management Solutions (EMS)

division, can help answer these and other critical questions to jump start your Asset

Management Program.

Energy utilities looking to

implement a smart grid first

need to find ways to optimize

their current expenditures,

reduce risk exposure, and build

confidence in their asset-related

decision making. Black & Veatch

Asset Management can help.

� Global Leadership in Asset Management Practices

� Value Developed Early through Practical Improvements

� Intelligent, Integrated Utility Information Technology Solutions

� Structured Enterprise Asset Management Framework and Program Development Approach

The Black & Veatch Difference:

ASSET MANAGEMENT SOLUTIONS FOR ENERGY

Asset Mgmt Electric 2009REV.qxd 6/11/09 11:05 AM Page 1

Sustaining Value through Asset Management.The level of awareness of a utility’s aging assets

and the critical need to manage them in a more

efficient and effective way has increased with

the utilities themselves, their customers and

governing bodies. Through most of the past

century, most of the focus was on making new

infrastructure investments, with little attention

being given to the impact of

environmental or political

decisions, or to the fact that

the existing infrastructure

was reaching the end of its

useful life.

Today many utilities have

embarked on the initial

“assessment” stage of Asset

Management, conducting

system-wide asset inventories and assessing of

the condition of their assets to help understand

the magnitude of the near-term capital

rehabilitation and replacement needs. Other

utilities have recognized the value gained by

developing a continuous improvement model

through their asset management program.

Enterprise Asset Management Strategic Framework.The Black & Veatch Team applies our proven

approach to developing your asset management

solution by integrating each of the

core elements of improvement:

Strategic Planning, Organizational

Development, Business Process

Improvement, Performance

Management/Monitoring,

Technology and Information. This

standard approach is tailored for

each unique project, taking into

consideration our client’s overall

objectives for the AM program

and their current business model.

Getting Started. Black & Veatch’s proven

Comprehensive Asset

Management Readiness

Assessment (CAMRA) approach,

led by our industry-experienced

asset managers, and armed with a

robust toolbox, will help you

jump start your Asset Management

Program (AMP).

Our professionals will work

closely with a cross-section of

key members of your

organization to efficiently assess the current

state of your AM set of practices. We help you

establish a vision and strategy for your

improved AMP and compare your current state

Over the next 10 years,billions of dollars will beneeded in North Americaalone to refurbish orreplace assets nearing theend of their lifecycle. Isyour organization ready to meet the challenge?

AssetLifecycle

RETIREPlan

Improve

Monitor Operate

Construct

STRATEGY

Our Asset Management approach maximizes asset value through all the lifecycle phases.

Asset Mgmt Electric 2009REV.qxd 6/11/09 11:05 AM Page 4

and desired state, using our comprehensive

Enterprise Asset Management (EAM)

Framework, to quickly understand which

improvement areas will provide the most

returned value.

No matter where you choose to start in the

development of an Asset Management Program,

the Asset Management

Solutions Team from

Enterprise Management

Solutions (EMS) puts you in

control. Early in each of our

engagements, we develop an

in-depth understanding of

your business goals and

provide the tools and expertise

to develop your agency’s

strategy and a tailored

implementation plan that

maximizes the value you

receive from the investment in

your asset management program. One of our

team’s key focuses is to identify and implement

early wins.

Early wins designed in every asset management program.Early wins are established in the development

of your Asset Management Program in a very

practical manner. These “wins” are based on our

philosophy, derived from years of experience in

the industry, that our clients will realize over

90% of their savings from their AM Program

through one of the following three areas:

1. Improvement of operations and

maintenance processes.

Black & Veatch’s Asset Management solution is a holistic program that covers Strategy, People, Process and Technology.

Build AM Plan

Determine Funding Strategy

Optimize Capital Investment

Optimize O&M Investment

Determine Business Risk (”Criticality“)

Set Target Level of Service (LOS)

Determine Lifecycle & Replacement Costs

Determine Residual Life

Assess Condition Failure Modes

Develop Asset Registry

Change Management

Strategy 5

4

3

2

1

0

Our comprehensive Asset Management Readiness Assessmentwill help you jump start your Asset Management Program.

Asset Mgmt Electric 2009REV.qxd 6/11/09 11:05 AM Page 5

2. Establishing asset lifecycle

optimization processes.

3. Knowledge Management.

Business Process Improvements to Achieve Maximum Value.Black & Veatch’s electric industry asset

management practitioners are experienced in

reviewing business processes and

facilitating improvements resulting in more

effective inter-departmental communication

consistent application of critical asset

management work processes, and quality

information-based decision making.

Condition Assessment is a Continual Process.Effective asset management involves the

continual collection and recording of asset

condition over time as part of normal business

processes and incorporating this information

with the risk and impact of failure to dynamically

plan for replacement on a just-in-time basis.

Risk-Based Maintenance Strategies Optimize Capital and O&M Dollars and Increase Reliability.Black & Veatch’s process for condition

assessment integrates risk analyses to optimize

the condition assessment program. Through this

process, your utility gains a clear understanding

of the following critical questions through a

Failure Modes and Effects Analysis (FMEA)

that will drive the development of an optimal

condition assessment program:

� What is causing the high frequency failures?

� Which failures pose the biggest risk?

� How do I assess, predict and eliminate these

high-risk failures before they happen?

� What is the optimal replacement timing of

my assets considering budget constraints and

minimizing risk to my utility?

Black & Veatch’s Approach to Risk-Based Infrastructure Planning.Black & Veatch’s Asset Management solutions

team gives our clients high-value assessment

through risk-based planning that integrates risk

ConditionMonitoringApproachfor RULPrediction

DiscreteConditionAssessment

Phys

ical

Con

ditio

n G

rade

Potential DifferenceBetween Discrete

Assessment & Monitoring

RUL PredictionRUL

Asset Age (Yrs)20

VeryGood

Good

Moderate

Poor

VeryPoor

40 60 80 100

Effective asset management involves thecontinual collection and recording of asset

condition over time.

Our integrated approach quantifies and incorporates risk into Capital and O&M project optimization.

Asset Mgmt Electric 2009REV.qxd 6/11/09 11:05 AM Page 6

analyses to evaluate optimal assessment, repair,

refurbishment or replacement/decommissioning

timing.

Enabling Technology to Support Energy Utilities Best Practices. In world-class asset management organizations,

technology plays a key role in supporting the

asset information needs of the organization,

capturing and maintaining continual condition

assessment information and each asset’s life

cycle costs. The Black & Veatch approach to

technology is based on our belief that

technology should be an enabler of business

performance improvement or success.

Leveraging the depth and breadth of our best

practices and utility-specific technology

experience ensures that solutions are tailored

specifically to your utility and integrated with

your business processes and people to maximize

the value from your technology investment.

Unparalleled Depth and Breadth ofInfrastructure Management Expertise.Going beyond the asset inventory and condition

assessment requires a multi-disciplinary team of

professionals to identify the value-added

activities for your specific agency—to ensure

effective implementation with the greatest value

gained. Black & Veatch has grown with the

industry, remaining on the leading edge of

strategic and tactical-level Asset Management

program development in North America,

Europe, Asia and Australia.

© Black & Veatch Holding Company 2009. All Rights Reserved. The Black &Veatch name and logo are registered trademarks of Black & Veatch HoldingCompany. Other services marks and trademarks included herein are thetrademarks or registered trademarks of their respective companies. 6/15/09

Delivering Asset

Performance

AssetConditioningMonitoring

PerformanceManagement

System

SystemPlanning

ModelFinance/HR

System

Asset RiskManagement

AssetLifestyle

Optimization

Materialsand InventoryManagement

Work Management

CIP andOperationalBudgeting

CapacityAnalysis

Customer Careand Billing

SCADA

OutageManagement

System

CustomerInformation

System

Meter DataManagement

Systems

GIS

EAM/CMMS

Mobile Dispatching

and Response

For more information on Asset Management, call(913) 458-3440, email [email protected] or visit uson the Web at www.bv.com/consult.

BUILDING A WORLD OF DIFFERENCE®

The selection and implementation process for youroptimum technology solution ensures the best

functional match and mitigates the risks inherent inlarge-scale implementation projects.

Asset Management involves a broad spectrum

of systems, technologiesand processes

within your utility.

Asset Mgmt Electric 2009REV.qxd 6/11/09 11:05 AM Page 2