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Idaho

Asset Management Framework Development
Idaho Power Company

Boise, Idaho

BACKGROUND

Idaho Power Company is a private, regulated electric utility, serving most of Idaho, including the city of Boise. They provide generation, transmission, and distribution services to nearly half a million customers.

In the past, Idaho Power has affected a de facto “run to failure” strategy for many of its assets, particularly in the transmission and distribution systems where the benefits of equipment replacement or rehabilitation are most difficult to quantify. Recently, Idaho Power has seen the need to include life-extension spending in its capital budget.

PROJECT

BIS is currently heading up a project to develop an asset management program for Idaho Power’s transmission and distribution business lines. The driver for this program is the need to justify replacement or rehabilitation of aging assets, and to prioritize this spending on equal footing with capital projects for new growth, regulatory requirements, and other drivers.

The first phase of the project was the development of an asset management framework, which serves as a template for development of tools and processes needed to develop spending projections for individual asset classes. The first phase also included a high-level review of Idaho Power’s equipment data and current planning methods, which were used in laying out a strategy for development of the asset-specific tools needed.

The second, ongoing phase is to develop working models for key asset groups, based on the framework created in the first phase. Each model uses same approach to assessing the asset populations’ condition and criticality, then quantifying the costs and benefits of replacement, included the benefit of avoided customer outages. The results of the models are short- and long-range spending plans as well as benefit/cost ratios for prioritizing spending across asset groups. Key elements of the model include the following.

RESULTS

The key result of this is that the need for spending on replacement or rehabilitation of existing assets is quantified and highlighted. Idaho Power will be able to justify either prioritizing these projects higher relative to other spending need, or increasing their total capital spending to accommodate replacement.

Date Completed: Ongoing

Services
Development of overall Asset Management process. Capital planning support based on condition and risk. Justification for replacement and rehabilitation programs during budget cycle.
Key Results
Quantification of benefits of equipment replacement. Ability to prioritize replacement against other spending needs. Consistent method of assessing condition and criticality of assets.
Reference
Monty Mericle
T&D Development Group Leader
(208) 388-6123
mmericle@idahopower.com
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