Building the business case for condition-based maintenance

In the current deregulated, competitive environment, utilities are continually seeking ways to reduce their O&M costs while still providing their customers with high reliability and quality of service. Since the maintenance of the electric power delivery system has always represented a significant portion of the electric utility's operating budget, utilities have been searching for ways to reduce maintenance costs while still maintaining high reliable service. At the same time vendors have been developing increasingly powerful health monitoring systems for substation equipment. However, the capital and manpower resource commitments needed to implement a condition-based maintenance program dictate that a comprehensive business case be developed to define the expected goals of this new program as well as assure that the investment is worthwhile. The program benefits that are estimated should include reduced maintenance activity, avoided catastrophic losses, and extended equipment service life. Well defined goals and a cost-effective investment strategy are essential to designing and implementing a successful condition-based maintenance program.