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HOW TO POSITION PQ IN UTILITY

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                HOW TO POSITION POWER QUALITY WITHIN A UTILITY
                                                                    Kay Tuttle
                                                                    Power Quality
                                                               Duke Power Company
                                                              P O Box 1006 E C W
                                                               ..
                                                             Charlotte, NC 28201-1006

           Abstract   - In order to position power quality                supply and urge suppressor manufacturers and
           effectively within a utility, you must first know your         vendors, positioned power quality in the for fee
           goals. What are you trylng to accomplish by having a           side of the business and projected significant
           power quality “offering”? Are you trying to improve.           revenue.    Most power quality departments
           customer satisfaction? Are you trying to generate
           revenue? Are you trying to create a sense of customer          positioned this way have virtually ceased to
           “loyalty’? Once you answer these questions, draft a            exist.
           power quality mission statement that aligns wt your
                                                          ih
           corporate mission statement. In order to gain support          The utility must also decide what services to
           from upper management, you must have alignment.                offer to which customer segments and which
           Other aspects that must be addressed include deciding          services are offered at no cost and which are for
           what products and services to offer, how to organize           a fee.     After all this is determined, the
           the depamnent and document your processes, and how             organizational structure must be decided. Power
           best to reach and inform customers about your                  quality efforts can be organized regionally,
           expertise. Whether starting a new power quality
           program or making major changes to an existing one,            centrally, or a combination of both.          By
           power quality efforts can be successful if well                combining the two approaches, a utility can take
           positioned within the utility.                                 advantage of the benefits of both.

                          I. INTRODUCTION                                 There are other crucial ingredients of a
                                                                          successful power quality or “quality of service”
           Utilities tend to classify a customer disruption as            offering. Mapping power quality processes is
           either “power quality” or “reliability.”                       vital for consistency, efficiency, and employee
           Depending on the initial categorization, the                   training. Utilities have realized significant
           inquiry is then routed to the power quality                    savings by mapping and employing consistent
           department or the reliability department.                      processes for handling power quality inquiries.
           Customers, however, do not separate their power                Documentation is also extremely important.
           related problems into the categories of utility-               Information such as type of industry, type of
           generated and customer-generated, and it is not a              problem found, recommended solution, solution
           good idea to require your customers to learn                   implementation and effectiveness should be
           utility jargon. The best approach is to consider               documented for each investigation. Research and
           the issue a “service quality” issue and approach               development (R&D) is also essential to keep
           it as such. This means that the problem is                     pace with the rapidly changing technology
           evaluated holistically and the optimum solution                employed in today’s microelectronic industrial
           applied.                                                       and commercial environment.                Other
                                                                          considerations such as promotional information
           Before addressing a power quality problem                      and communications are necessary to inform
           however, extensive planning must be done and                   customers of the utility’s capabilities and
           an overall strategy developed. This usually                    services and should be strategically planned and
           culminates in a power quality mission statement.               implemented.
           You also need a process champion and support
           f o all levels of management.
            rm                                                              11. POWER QULAITY AND RELIABILITY

           In the face of deregulation, utilities have been               For years utilities struggled with how to handle
           confronted with the decision to position power                 power quality. Reliability was an easier issue.
           quality either in the regulated or unregulated, for            Utilities tend to differentiate “power quality”
           profit, side of the business. Many utilities,                  from “reliability”by whether or not the electrical
           viewing the success of unintermptible power                    disturbance originates on the utility system or the
                                                                          customer’s electrical system and by the type of
           0-78C3-5499-6;OO/$lC.OG                2030ILEE
                                                                                                            - 439 -

disturbance. Reliability measures such as SAID1        IV.POWER QUALITY PROGRAMS THAT
(system average intemption duration index),                               WORK
SAIFI (system average interruption fiequency
index), and CAIDI (customer average                   The fust attribute is a clear, attainable, and
interruption duration index) are meticulously         measurable goal or mission. Without such, the
monitored and trended. Power quality measures         program will lack focus, flounder, and eventually
however are usually neither monitored nor             cease to be. The goal should reflect what the
trended. Reliability measures focus primarily on      utility wants to accomplish by having a power
interruptions, both sustained and momentary.          quality program Many successful programs
Power quality measures focus on disturbances          have several clear objectives such as increasing
such as sags, transients, and harmonics. IEEE         customer       loyalty,   improving     customer
519 offers guidelines on acceptable harmonics         satisfaction, or supplementing company revenue.
levels, but no such guidelines exist for sags and     One example of a power quality group’s mission
transients.    Customers are at the mercy of          statement is Duke Power Company’s: “We will
equipment manufacturers and utilities with            partner with our customers by offering
regards to power quality.                             economical, effective, power quality solutions
                                                      for our customers’ ever increasing electrical
              111. BACKGROUND                         needs.” Duke Power Company has customer
                                                      loyalty, customer satisfaction, and increased
As sensitive electronic equipment became more         revenue as part of the company’s overall goals.
and more prevalent, customers began to                The power quality goals align with the
experience “mysterious events” ranging from           company’s goals and are also measurable. The
process disruption to equipment damage. In an         group tracks customer inquiries, problems found,
effort to get help, customers called the              solutions implemented, effectiveness of the
equipment manufacturers and the utilities.            solutions, and revenue. The group, of course,
Utilities responded by designating personnel to       charges for implementing solutions thereby
handle these complaints and developing                adding to revenue.
positions on the extent to which the utility would
venture to address these problems. The “point of      Whether your utility is starting a new power
common coupling”, the utility-customer interface      quality program or making changes to an
usually considered the utility meter, was an          existing one, a “process champion” is an asset.
obvious line between the utility and the customer     A process champion is a person in upper
and utilities had to decide whether or not to cross   management who is highly supportive of the
that line. Many did cross the line and formed         power quality goals and mission. This person
power quality departments to deal with customer       will help resolve any conflict at the upper
inquiries. Over the years the level of power          management level and support the effort from a
quality experience and expertise increased and        budgetary standpoint as well. A power quality
utilities faced the question of who should pay for    program can be initiated without a process
this highly skilled workforce. Many utilities         champion but it requires much more effort and
decided not only to have their customers pay for      time to do so.
the resources, but also to make a profit. In the
face of deregulation, many utilities moved their      While utilities find it convenient to differentiate
power quality departments into the unregulated        between power quality and reliability, customers
business and set goals related to the quantity of     certainly do not. A power quality or reliability
profit that should be generated. These efforts        problem often manifests itself as a “mysterious
failed quickly if the utility’s only goal was         event.” For example several, but not all, process
related to profit.                                    lines stopping for no apparent reason or a
                                                      programmable       logic    controller    “getting
So how do you position a power quality program        confused.” Customers might not initially even
to be successful? Let’s look at common                correlate the event to a disturbance on the
attributes of the utilities that have not only        electrical system. Studies at EPRI PEAC have
succeeded, but also thrived over the years.           shown that drives, even those made by the s m  ae
                                                      manufacturer, behave quit differently when
                                                      subjected to the same power disturbance. This
                                                      adds to the confusion and complexity
                                                      surrounding power quality events. Often by the
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          time the customer contacts the utility for              utility side solutions and the customer only
          assistance, the problem has been occurring over         focuses on customer side solutions, more often
          a period of time and the customer is desperate for      than not, the most effective and economical
          help. At this point, the utility has the chance to      solution is not implemented.
          assist the customer and establish a long-term
          partnership or “stop at the meter” and establish a             V. POWER QUALITY SERVICES
          long-term adversarial relationship.         Smart
          utilities seize the opportunity.                        Power quality services range from reactive
                                                                  diagnostic investigations to proactive facility
          As deregulation of the industry unfolded,               design reviews. A diagnostic power quality
          portions of the utility remained regulated while        investigation is of course essential but there are
          other parts became unregulated.            Utilities    other optional services, such as implementation
          struggled with the decision to position power           and verification of power quality solutions, long-
          quality as part of the regulated business or part of    term monitoring, facility design reviews, and
          the unregulated business. Many chose the                process ride-through evaluation, offered by
          unregulated business and positioned the entire          innovative power quality programs. Usually the
          power quality group as a stand-alone, make              initiaI phase of a diagnostic investigation is a
          money or cease to exist entity. Most of those set       base service, at no charge. Once the utility
          up as stand-alone now indeed cease to exist. In         determines that the cause of the problem is
          many of these failed business a t t e q t s utilities   internal to the customer facility or due to a
          brought a few resources/personnel back into the         normal utility system operation, the utility then
          regulated business to form a power quality              charges for the power quality engineer’s time.
          program that was a much scaled-down version of          Other services such as installing and verifylng
          the original. It s e e m that while power quality       solutions are also for a fee. Solutions range from
          revenue can help a utility capture some of the          those installed inside the customer’s facility such
          expense of having the resources, power quality is       as unintermptible power supplies, constant
          not a stand-alone business. The revenue is              voltage transformers, and surge protectors to
          indeed small when compared to the revenue               those installed on the utility system such as
          generated from the sale of electricity. But on the      dynamic voltage restorers, static transfer
          positive side, since the revenue is such a small        switches, and static var compensators. Solutions
          percentage of overall revenue, utilities can            applied on the utility side are more costly and
          usually position power quality groups within the        compensation to the utility varies widely but
          regulated business without being questioned by          often takes the form of an “extra facility” charge
          regulators. Power quality, just as reliability, is in   to the customer. Many power quality programs
          part a cost of doing business and in part a value-      include customer education and training.
          added service. Often when a customer calls it is        Customers can be educated one at a time as a
          not clear whether the issue is related to power         problem arises or more effectively in large
          quality or reliability and the utility must             groups. Classes such as Wiring And Grounding
          investigate to at least determine where the             For Perfrmance of Sensitive Equipment,
          problem originates.                                     Keeping Processes Running, Power Quality
                                                                  Solutions, Power Qual@ For Electrical
          When a process or a piece of equipment                  Contractors, Power Quality For Architects and
          malfunctions due to an electrical occurrence, the       Engineers, and Specifiting Equipment For Ride-
          customer sees the end result. It is a “quality of        Through are samples of a few classes offered by
          service” problem. The term “power quality”              utilities. Power quality trade fairs and other
          should refer to the overall quality of the power        power quality utility sponsored events also help
          including the utility electrical system and the         spread the message.
          customer’s electrical system, but power quality
          has been defined and generally accepted such            Utilities vary in the services provided to different
          that it doesn’t include reliability. “Quality of        customer segments. Providing power quality
          service” is a more recent way of referring to both      services to large industrial customers requires
          power quality and reliability.       Only when          very experienced and highly skilled power
          addressed holistically as a “quality of service”        quality engineers. Providing power quality
          issue can the most effective and economical             services to residential customers requires a
          resolution to the problem be identified and             different skill set and is usually done by different
          implemented. If the utility only focuses on             personnel at a lower cost per job. Some utilities
                                                                                                                   -441   -

chose to offer different services to each customer           utility through the customer perspective it gains
segment while others chose to offer similar                  and value to the customer through education and
services provided by a different workforce.                  utility power quality information regarding
                                                             solutions and new technologies. This alliance
Innovative utilities also sponsor power quality              also tours member facilities and tests new
research and development. New power quality                  technologies.
solutions are installed in customers’ facilities,
tested, and verified. Processes specific to a                 VI. ORGANIZATION & DOCUMENTATION
particular business or industry are tested for
sensitivity and solutions are evaluated for                   Power quality groups are organized in various
performance and cost effectiveness.         This              ways. Some are regional, some are centralized,
information is then shared to better serve                    and some are a combination of the two.
customers with similar processes. Initiatives                 Regional groups have the advantage of being in
such as these have been performed in healthcare,              close proximity to the customers while
polymers processing, metal fabrication, and                   centralized groups have the advantage of being
textiles just to name a few. Customer equipment               close to other power quality expertise. A
such as drives and programmable logic                         combination of regional and centralized, like that
controllers are tested in the laboratory to                   shown in Figure 1, combines the best of both and
determine their susceptibility to events such as              works well for large utilities. Regional power
sags and transients. This information is shared               quality engineers are close to the customers they
with equipment manufacturers so that they can                 serve and also have a centralized and specialized
improve the ride-through of their equipment.                  group to help address more complex issues. A
Progressive utilities also work with standards                centralized group usually has engineers who
organizations to formulate standards addressing               specialize in harmonics modeling, process ride-
equipment performance with regards to power                   through evaluation, training and education,
quality disturbances.                                         power quality monitoring, power quality
                                                              measures and tracking, the company’s power
Another successful endeavor by Duke Power                     quality process, and solutions such as surge
Company’s Power Quality Department is an                      protectors and unintermptible power supplies.
active utility-customer alliance. This alliance or
group meets regularly providing value to the



                                         1 Power Quality
                                           l i
                                          FF
                                        Fig. 1 . Power Quality Organization



Process documentation is critical for consistency,             only be done at a high level since each group
training, and tracking effectiveness. Without a                will have its own unique process. Once the
documented power quality process, it is lefi to                process is documented, the best way of
chance how the different power quality tasks are               performing each task can be captured and all
performed, and each regional team will develop                 groups can be trained in that method. The
its own way of doing things. Efficiency gains                  process can be tracked and efficiency gains
will be lost or never realized since everyone will             realized. One example of a high-level power
not adopt the optimum approach. Training can                   quality process is illustrated in Figure 2.
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                                                                                             GATHER
                                                                                         UTILITY SYSTEM
                                                                                          INFORMATION




                                                                      MEETING
                    INSPECTION               INSPECTION                                                       OUT




                                                                                            SOLUTION
                                                                                          EFFECTIVENESS

                                                     Fig. 2. Power Quality Process


          Measures & tracking should be included in every               as case studies, technical briefs, products and
          process. Without measures the group will never                services brochures, and course brochures should
          know how it is performing. Measures might                     be professionally designed. Web sites should
          include customer satisfaction. A survey or other              also have a professional look and should align
          method of obtaining customer feedback should                  with collateral. Face-to-face discussions with
          accompany all or at least random power quality                customers about power quality should be well
          inquiries.     Each power quality investigation               planned and implemented. Mailing lists must be
          should be tracked and documented. This                        developed and maintained. All this is best
          information should include the type of inquiry,               accomplished by developing a thorough
          the problem found, the cost of the problem, the               communications plan and having one person
          cause of the problem, the recommendation,                     responsible for ensuring its timely execution.
          whether or not the recommendation was
          implemented, the cost of the recommendation,                               W I . CONCLUSION
          and the results. This information can later be
          analyzed to determine the types of businesses                 So, how do you position power quality within a
          and industries experiencing power quality                     utility? First, decide what your utility wants to
          problems, common solutions to those problems,                 accomplish by having a power quality program:
          the cost of the solutions, and the effectiveness of           what are the goals? Then write a clear,
          the solutions.                                                measurable mission statement. Next, find a
                                                                        process champion within the utility. Position
                     VII. COMMUNICATIONS                                power quality in the regulated business.
                                                                        Determine the organizational structure: regional,
          Having a power quality program with innovative                centralized, or both. Decide the products and
          services positioned correctly within the utility is           services offered to each customer segment.
          great, but the customers need to know what the                Communicate those to the customers. Document
          utility has to offer in order to take advantage of            the power quality process including measures
          it. There are many ways to communicate with                   and tracking. Support power quality research
          customers today: Internet, mail, face-to-face.                and development. Follow these steps and watch
          Each interface needs to be well planned and                   the power quality effort flourish.
          executed. Printed power quality collateral such
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BIOGRAPHY: Kay Tuttle is a member of the Power Quality
Group in Retail Services at Duke Power. She is project
manager for various Duke Power and EPRl projects and is in
charge of power quality customer education.

Before receiving her power quality assignment, Ms. Tuttle
worked in Duke Power’s Electric Distribution customer
engineering, five-year planning and special projects. She was
later responsible for the training of Duke Power’s
Distribution Engineering Associates and served on a team
that reengineered Duke Power Company’s distribution work
processes. She is chairman of the Sales and Services Safety
Steering Team and Secretary of the Power Quality Issues
Forum. Ms.Tuttle worked on a special assignment with
EPRl Power ElectronicsApplications Center in Knoxville,
TN in 1997 providing customer and utility power quality
training. She has been a Duke Power employee for 13 years.

Ms. Tuttle received a B.S. degree in Electrical Engineering
from the University of North Carolina at Charlotte in 1989
and a B.A. in English from Elon College in 1977.

				
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