The result is presented in a technical report that contains detailed recommendations for further study or action, along with chronological priorities. Who determines the rate at which a power plant, substation or other asset. Unless noted basketball courts 15 25 built improvements playgroundssite furniture 20 20 catch basin 40 40 cold water and sewer lines 40 40 compactors 15 15 dhwsupplyreturn 30 30 dumpsters 10 10 dumpster enclosures 10. Assets acquired through bulk or aggregate purchases may be grouped into one or more property record units in accordance with the guidance in section 2k of this. Distribution substations of the total replacement value of the asset base andmake up 12% contribute to around % of the total operating expenditure. However, for optimal processing performance and greater table efficiency, you can specify a fixed number of years for which depreciation is. Cash is not exchanged and the value received equals the asset book value.
Depreciation is computed at the end of an accounting period usually a year and the method bestfitting the usage profile of the asset is chosen. Depreciation rules books oracle assets help oracle docs. Yet there still can be confusion surrounding the accounting for fixed assets. Airinsulated, gasinsulated and mixed technology switchgear substations together with the essential secondary systems. Oracle assets takes the extra depreciation in the last period of the assets life. Supporting documentation is needed to book the asset in the balance sheet in order for it to be amortized later for example, the purchase. This allows the asset owner to enjoy a lower tax burden earlier in the assets life. The primary focus of this asset management plan is to manage the substation power transformers in the asset operation and end of life stages of the asset lifecycle. There are no set limits per standards of the life of an equipment. For example, most businesses use five years as the useful life for automobiles.
Substation asset management pilot design projects burns. Properly practiced, it involves all parts of the organization and entails a living set of asset performance goals to implement asset management. This handbook offers the whole knowledge of high voltage substations from their design and construction to the maintenance and the ongoing management, the entire asset life cycle. They capture the loss in economic value due to physical deterioration, functional and technological. Transformer services power transformers are critical for ensuring a sustainable supply of power to prevent outages. Recent technological developments have had a tremendous impact on all aspects of substation design and operation. Asset management for power transformer in high voltage substation. Under accelerated depreciation systems, a larger proportion of the asset s book value is allowed to be depreciated in the earlier years of its use, with smaller proportions depreciated in later years of use.
Asset management plans deliver on the transmission asset management strategy through an optimized funding and resourcing plan. In 2001, the utilitys electric delivery asset strategy department launched a project to create a computerized maintenance management system cmms that would use a proactive, conditionbased maintenance cbm approach to help predict equipment failures. Unauthorized use of this website is strictly prohibited and punishable by law. Spare parts classification pareto diagram 12 is a general method to classify spare parts or item listed in the inventory into a, b, c classes according to the cost of items and amount of usage. Review of data, performance history reliability, failures, costs, corrective work, preventive planned. Devices cannot be integrated into a complete substation automation solution. The pages in the asset book definition component enable you to enter book information. Asset books edu34bby effective mmddyy page 6 of 38 rev 1 asset books positioning asset books positioning define asset books to store financial information for a group of assets. If a switch cabinet is purchased with a current transformer included as an integral part of the cabinet, the entire cost of the switch shall be charged to account 371. Fixed assets useful life under gaap is based on a reasonable estimate and therefore requires some judgment. Assetbook portfolio management and reporting software. The substation 6 project consists of the assets placed in service to fulfill six separate work orders. Typically replaced shortly after economic life or using other rule of thumb.
Chapter 10, accounting for property, plant and equipment. Electric power substations engineering 3rd edition john d. Load service obligations and customer service request projects meet standards and tariff requirements. Projects are completed within scope, on schedule and within budget. Asset management for power transformer in high voltage. If we were to assume a 10% removal cost for an asset for which no salvage proceeds are expected to be received, the depreciation over the life of the asset would be 110% of the cost of the asset. Best practices and life extension guidelines for substations. Valuing these assets is different from valuing other types of assets, such as real estate and intangibles, because the values can. Db pct, percent, low limit, and depr pass life depreciate past life. Allocation of tangible assets to tax depreciation lives and rates.
It is important that issues identified in any of the lifecycle stages are fed back into the other stages. The table specifies asset lives for property subject to depreciation under the general depreciation system provided in section 168a of the irc or the alternative. The aim is to maintain substations in optimum performance and avoid costly failures so that our customers continue to enjoy safe, reliable, efficient and profitable performance from their assets, large or small, during their lifetime. The table specifies asset lives for property subject to depreciation under the general depreciation system provided in section 168a of the irc or the alternative depreciation system provided in section 168g. It included defining a pilot substation asset management program that will assess and demonstrate changes to asset management processes, data management and tools to transition to conditionbased maintenance and improve asset. A depreciation schedule lists the percentage of the original socalled book value. Download it once and read it on your kindle device, pc, phones or tablets.
Asset management is a set of procedures to manage assets through their life cycles, based on principles of life cycle costing. Finally, for evaluation of the total life cycle costs the different cost shares are accumulated, at which a period of consideration of 40 years and 50 years respectively is regarded. We transform your data into useful information and build automation that makes. The expense related to an asset is recognized ratably over the assets life rather than completely. Increased alignment of the asset management needs with customer and regulator expectations identification of critical assets and programmatic approaches that focus on the renewal of transmission, substation and distribution infrastructure standardization of asset management strategies across all jurisdictions. Main database for all substation equipment information. Asset management, asset simulation, life cycle cost calculation, capex, opex.
Use features like bookmarks, note taking and highlighting while reading the asset a pete maddox thriller book 1. These assets deliver electric power, directly or indirectly, to a population of more than 12 million through four product categories. Unless noted basketball courts 15 25 built improvements playgroundssite furniture 20 20 catch basin 40 40 cold water and sewer lines 40 40 compactors 15 15 dhwsupplyreturn 30 30 dumpsters 10 10 dumpster enclosures 10 10 fence only. This allows the asset owner to enjoy a lower tax burden earlier in the asset s life. Pdf trends in riskbased substation asset management. Remember, the depreciable life is the term that the asset is used by the owner, but if the asset is not worthless at the end of that life, estimated salvage value should be considered. Financial reporting in the power and utilities industry pwc.
A basic step in this direction is to select an appropriate mathematical model that can be used for this purpose. With the loss of insulation being irrecoverable, transformer failure risk can be minimized only if oil quality is maintained, moisture is controlled, temperatures are managed, incipient faults are detected and corrected, and an. Asset management for power transformer in high voltage substation 11 3. Useful life of fixed assets for tax and reporting purposes. Our support team is there when you need it at no additional cost. Under costofservice ratemaking, depreciation expense is recovered from customers over the life of the asset providing the utility with the. Survey of existing multicriteria substation equipment asset management methods project. Transmission asset management strategy b o n n e v i l l e p o w e r a d m i n i s t r a t i o n 2. The macrs asset life table is derived from revenue procedure 8756 19872 cb 674. The word fixed indicates that these assets will not be used up, consumed, or sold in the current accounting year. Distribution substations healthcriticality matrix qty by 202324, with no investment. The installation of pole top service disconnect switches, where title is retained by the utility, shall be capitalized in account 371, installations on customers premises. Asset valuation equipment knowing how much the machinery and equipment are worth will determine the amount of goodwill that you are paying for as part of the overall purchase price.
Asset management calculates and stores depreciation until the end of the assets life. Identify the asset s books and some of the information needed for calculating depreciation. Electric power substations engineering 3rd edition. Asset valuation equipment 199 1 extremely limited markets 2 specialized or unique use 3 proprietary equipment 4 environment 5 fluctuating markets there are some types of equipment that just tend to posses a volatile nature such as computers, telephone systems, pa int lines, or proprietary and special use. Pdf application of an asset health management system for. With 80% of its chapters completely revised and two brandnew chapters on energy storage and smart grids, electric power substations engineering, third edition provides an extensive updated overview of substations, serving as a. Optimizes cost and risk use asset condition to inform asset decisions likely will use all three options for specific equipment types. Electric utility plant depreciation tables introduction bcris electric utility depreciation tables are specifically designed to capture the depreciation characteristics of electric utility transmission and distribution plant. Depreciation of dams, power plants and substations regulation.
Typical electrical equipment life expectancies 7 24 march 2016 reference ieee gold book recommended practice for the design of reliable industrial and commercial power systems equipment expected useful life, years capacitors 17 lv molded case circuit breakers 20 lv power circuit breakers 1520 mv power circuit breakers 1520. Network operatorsowners are seeing more opportunities for monitoring and management of substation asset data as part of their overall asset management and optimization strategies. The components, like a circuit breaker have a limited performance 10,000 mechanical operations, 10,000 load current and 50 maximum short circuit operations. It included defining a pilot substation asset management program that will assess and demonstrate changes to asset management processes, data management and tools to transition to conditionbased maintenance and improve asset performance to achieve quantifiable benefits. The asset a pete maddox thriller book 1 kindle edition by. An asset has useful life for as long as it has economic utility to the owner. A fixed asset just doesnt fall apart into a pile of useless components when it reaches the end of its useful life. This handbook offers the whole knowledge of high voltage substations from their design and construction to the maintenance and the ongoing management, the entire asset lifecycle. Under accelerated depreciation systems, a larger proportion of the assets book value is allowed to be depreciated in the earlier years of its use, with smaller proportions depreciated in later years of use. The content of the book covers a range of substation topologies. Substation services assessment services support for. Asset management guidance for wastewater and stormwater.
Oracle assets defaults financial information from the asset category, book, and. In 2001, the utilitys electric delivery asset strategy department launched a project to create a computerized maintenance management system cmms that would use a proactive, conditionbased maintenance cbm approach to help. We provided consulting services for enmax power corp. Thus, spare parts of high voltage equipment in power system can be. Audience, application, and value the teal book is intended for use by any utility personnel involved in substation equipment maintenance, repair, or replacement.
Deliver real value to your clients and save your team time with assetbooks easytouse portfolio management software and elite customer service. Corporate a book that you use to track financial information for your balance sheet. Where implemented, new training regimes are leading to a significant reduction in user g performance, at the lowest total cost of ownership, while also. The guidelines are a living knowledge asset that is regularly updated to keep utilities abreast of advances in technology and substation maintenance practices. Assessment services support for effective asset management substation services for effective asset management and wellfounded investment. This program helps substation owners enhance safety, reliability, equipment life, and performance, as well as prioritize their asset investments and allocations of limited resources. Airinsulated, gasinsulated and mixed technology switchgear substations together with the essential. These procedures, to be effective, must be implemented in a programmatic way. For the distribution substation assets, a reduced risk is reflected in a 100% reduction in the number of poor health assets in the h3, and 37% reduction in the number of medium health assets in h2. The asset a pete maddox thriller book 1 kindle edition by petersen, alan. If the current transformer is installed outside of. Abb offers a comprehensive service that supports critical transmission and distribution substation assets throughout their life. Outsourcing of maintenance in view of market liberalization jan 2002.
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