Economic Life Modes

 We’ve empowered transmission and distribution utilities, hydro, thermal, and wind generators, water/wastewater utilities, and transit agencies to optimize asset interventions, saving millions while reducing risks. Our proven approach finds the ‘sweet spot’ for replacing or refurbishing assets, balancing capital savings with rising maintenance and failure risks. 

The concept is as follows. When making a decision of whether or not to replace an aging asset, you face two competing incentives. On one hand, you’d like to wait as long as possible to replace, minimizing capital expenditures by extending the service life of assets. However, the longer you wait the more risk and maintenance costs you’ll face as assets degrade with age and become more likely to fail. In general, then, there is a “sweet spot” that minimizes the total life-cycle cost of ownership. This defines the optimal life-cycle for that asset.