SAIC Selected for Architectural and Engineering Design Services at Lajes Field
Date: January 25, 2012
(McLEAN, Va.) Feb. 7, 2012 – SAIC Energy, Environment & Infrastructure, LLC, a wholly owned subsidiary of Science Applications International Corporation (SAIC) [NYSE: SAI], has been selected for a five-year architectural and engineering design contract by the U.S. Air Force, 65th Air Base Wing (ABW) at Lajes Field, Terceira Island, Azores, Portugal.
The 65th ABW serves as the U.S. Air Force's pre-eminent, en-route, combat support organization supporting joint, coalition and NATO operation
s. SAIC’s services will include a broad variety of new construction projects and maintenance and repair projects. SAIC will also provide investigation and research, surveying, calculations and measurements, construction drawings, utility replacements, development and recommendation of alternatives, as well as specification and cost estimates.
“SAIC’s design, architecture, and engineering services help maximize the potential for project success in cost, schedule, and quality,” said Frank Codispoti, SAIC Facilities and DesignBuild operations manager.
About SAIC
SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy & environment, health and cybersecurity. The company's approximately 41,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of approximately $11 billion for its fiscal year ended January 31, 2011. For more information, visit saic.com. SAIC: From Science to Solutions®… more…Date: January 24, 2012
At a glance:
• Alcatel-Lucent simplifies the network management function for utilities, providing an intuitive user-friendly interface and access to informative network reports.
• New Service Portal Express for Utilities is released at DistribuTECH 2012 in San Antonio, USA, from 24-26 January.
• Solution has been developed specifically for and with utilities to respond to their most important network management requirements.
• AltaLink, Canada’s only fully independent electric tra
nsmission provider, is first to adopt Service Portal Express for Utilities.
As more utilities adopt smart grids to dynamically monitor and measure energy flow and help distribute energy more efficiently, they are finding they require increasingly fast, secure and reliable communications networks to support them. A key consideration in choosing such a communications system is how easily it can be managed. The new Alcatel-Lucent Service Portal Express for Utilities addresses this concern by greatly simplifying the management of a large communications network, enabling a smooth transition to smart grid communications and saving utilities both time and money.
Daily network management tasks, such as provisioning new network services, troubleshooting problems and creating reports, traditionally require in-depth knowledge of the network technology involved, such as Internet Protocol/Multiprotocol Label Switching (IP/MPLS). The Service Portal Express for Utilities enables staff from various operational teams to perform routine network management tasks without needing specialist network knowledge. This puts the power in the hands of those who need it, when they need it, freeing up the IP/MPLS network experts to focus on their essential tasks.
The Service Portal Express for Utilities is a communications network management tool designed for utilities, using utility-specific language and tasks. Its interface includes a predefined set of profiles, such as Supervisory Control and Data Acquisition (SCADA), teleprotection and video surveillance, with pull-down menus that simplify use and greatly reduce the possibility of user error. Security and peace of mind is provided by pre-defined routing, authorization and validation algorithms while network metrics can be easily retrieved in reports designed specifically for utilities.
Service Portal Express for Utilities complements the Alcatel-Lucent 5620 Service Aware Manager (SAM), which is used for more in-depth network management tasks. Alcatel-Lucent develops other customized Service Portals for specific industries or individual customers.
Alcatel-Lucent Service Portal Express for Utilities will be generally available in March 2012. AltaLink, Canada’s only fully independent electric transmission provider, is first to adopt Service Portal Express for Utilities to manage its IP/MPLS network, deployed by Alcatel-Lucent in 2010, that links 270 substations throughout Alberta.
Kamal Ballout, Vice President, Global Energy and Transportation Systems Integration Division, Alcatel-Lucent, said: “Having partnered with more than 80 utility companies around the world, we have seen first-hand the challenges they face in managing their networks. We have created Alcatel-Lucent Service Portal Express specifically for and with our utility customers to improve their operations and ultimately bring savings to them and their customers.”
… more…Evluma Announces New Short 50W Clearlight Beacon: Medium, Mogul and GU-24 Base
Date: January 18, 2012
Seattle – January 12, 2012. LED lighting manufacturer Evluma announces the release of a short mogul base version of the Clearlight 50W Beacon LED retrofit for dusk-till-dawn fixtures. This shorter version of the Beacon places the light source higher up in the fixture for those customers who wish to use the refractor optics of the legacy device to modify the light distribution. The short version of the Clearlight Beacon is also available with a medium (E26) base, or a GU-24 base, opening up the C
learlight line for use in Commercial and Industrial applications, such as can lights, soffit lights and garage lights.
The short mogul Beacon is 7.67 inches long and places the LED light source about two inches up into the refractor depending on the fixture manufacturer. The original Beacon, with a length of 10.21 inches typically places the LED light source flush with the bottom of the refractor. Evluma has developed various bracket kits over the years to address customer preference regarding the positioning of the LED light source within the refractor, says the company. For some, the shorter Beacon may meet their requirements.
While Evluma anticipates there will always be a demand for customized positioning, the Short Beacon will maintain the simplicity of the Clearlight direct screw-in retrofit. Self-ballasted, no other adjustments or assembly is required, says the company. However, for added energy savings Evluma recommends wiring around the ballast, which will continue to run and drawn electricity otherwise. “Retrofit products should be robust and easy to use,” said Keith Miller, President and CEO of Evluma. “The short mogul Beacon is a continuation of that philosophy.”
Like the original Beacon and the EcoSpot, the short Beacon models are UL approved and have a 5 year warranty. The short Beacon models have also been qualified by the Lighting Design Lab in Seattle, WA. Clearlight products are manufactured in Seattle, WA from US and imported parts. Evaluation samples are currently in the field. Evluma anticipates the possibility of future adaptations to the core Clearlight design as demand arises.
About Evluma
Evluma is a division of Express Imaging Systems, LLC a small business with over 150 years of combined experience developing lighting applications for photographic equipment and the photofinishing industry. Formed in 2008, Evluma is committed to developing environmentally low impact lighting solutions that are affordable and long lasting.
… more…Date: October 06, 2011
EVERGREEN, Colo.— To enable retired professionals to fill critical gaps in technical and management skills at public power utilities on an interim basis, Hometown Connections and utility recruiting firm Mycoff, Fry & Prouse have established Strategic Power Placements (SPP) as a jointly owned entity. SPP provides contract management services for the placement of retired individuals to fulfill voids within the senior ranks of a public power organization on a temporary basis. Prior to this announce
ment of an ownership investment, Hometown Connections had been marketing the SPP service since September 2010.
Strategic Power Placements is an industry resource to public power utilities, joint action agencies, and state associations, providing experienced professionals for temporary assignment. SPP helps utilities identify their internal needs and make available interim employees to fill executive positions, lead special projects, and mentor permanent employees. In addition to its management consulting services, SPP acts as a clearinghouse for individuals seeking temporary work and public power utilities seeking shorter-term, part-time manpower resources.
“The American Public Power Association tracks closely developments in human resources at member utilities,” said Jeff Tarbert, Senior Vice President, APPA, and Board Chair, Hometown Connections. “As municipal utilities balance the demands of a tight economy with pressures to ensure reliability and energy efficiency, maintaining a professional staff with the requisite skill sets is a steep challenge. We foresee a great demand for the professional support recent retirees can bring to public power systems, and we believe the investment Hometown Connections is making with Mycoff, Fry & Prouse will better enable APPA members to position their utilities for long-term success.”
“Hometown Connections has been working for a year with Mycoff, Fry & Prouse, public power’s premier executive search firm, to help to address our industry’s ‘brain drain’ as retirement rates and hiring freezes delay the appointment of fully qualified utility directors, department heads, and project managers,” said Tim Blodgett, President & Chief Executive Officer, Hometown Connections. “This new investment with the Mycoff firm furthers our ability to place retirees able to help APPA members keep their budgets and project schedules on track, rather than lose ground during an executive search process. Our investment will also expand the ability of retirees to serve as valuable mentors to the permanent staff, sharing their considerable expertise in utility engineering, finance, operations, and management.”
Milton Lee, recently retired as chief executive officer for CPS Energy in San Antonio, has completed his first SPP assignment, helping the City of Boulder, Colo., explore forming a municipal electric system. “The Mycoff team knows virtually all of us who began our public power careers in the 1970s and 80s. We focused our professional lives around two primary issues: the reliability of the electric system and how our decisions would impact the costs incurred by our customers. Carl Mycoff and his colleagues know our skills, our preferences, and who would fit best within a specific utility culture. Every utility has issues ranging from A to triple Z, and the SPP service knows who to place where.”
“We have worked for many years with APPA members and understand both their common challenges and unique requirements,” said Carl A. Mycoff, Managing Director. “We are very pleased and excited to partner with Hometown Connections in the design and delivery of this innovative professional placement service which taps the pool of retired utility executives to the advantage of the public power community.
About Hometown Connections International, LLC, Evergreen, CO; and Mycoff, Fry & Prouse LLC, Conifer, CO
Hometown Connections is a utility services subsidiary of the American Public Power Association (APPA). APPA is the national service organization for the nation's more than 2,000 community- and state-owned electric utilities serving 45 million customers. Hometown Connections supports APPA members by securing national group pricing and service arrangements from leading industry suppliers. Please visit www.hometownconnections.com. Mycoff, Fry & Prouse is a recognized leader in the recruitment of executives, management personnel, and industry experts for the utility and energy industries. Visit www.mfpllc.us for more information.
… more…Date: September 13, 2011
Raleigh, NC – September 08, 2011 –Tantalus, a leading provider of Smart Grid communications, today announced the release of an enhanced functionality module for the GE Kv2c and Kv2c(+) polyphase meters for utilities’ commercial and industrial customers. The latest product release from Tantalus extends the value utilities can gain from a smart grid implementation while offering C&I customers greater visibility and control of their energy consumption and associated costs. While accounting fo
r about 20 percent of a typical utility’s customer base, C&I customers comprise 62 percent of energy billings nationwide, according to a recent Pike Research report.
This latest product release from Tantalus addresses four critical C&I areas:
• New, more extensive reporting for critical energy data including: cumulative kWh, kVAh and kVARh, instantaneous voltage and current by phase, and combined line frequency and power factor. All, or configurable subsets, of these values can be delivered on a utility-defined interval from five minutes to two hours, or requested on-demand.
• More extensive reporting for current and prior period peak data including peak kW with coincident kVA and kVAR, peak kVA with coincident kW and kVAR, and peak kVAR with coincident kW and kVA all with optional timestamps.
• A more feature rich demand reset functionality providing both scheduled and unscheduled demand reset capabilities. This will allow utilities to better respond to customer situations where demand resets are required and avoid the costs associated with visiting the meters to perform the reset. Scheduled resets can occur on a cyclical basis, daily, weekly or monthly, or on an ad-hoc basis using a utility defined calendar. The Tantalus Utility Network, TUNet®, also monitors the meter’s demand reset functionality and will report an alert to the utility should an unauthorized demand reset occur.
• An increased level of power quality monitoring, which provides more granular voltage and outage information. With voltage information returned with every interval, “per phase” outage reporting, and TRUPUSH “per phase” sag/swell alarms delivered upon occurrence, the utility is able to monitor power quality and react proactively when anomalies are detected.
TUNet’s C&I capabilities have been tested thoroughly over the last several years. For example, Missouri’s Laclede Electrical Cooperative uses TUNet to deliver precise, granular data from 160 of the largest facilities at Fort Leonard Wood, enabling the military base to be a leader in energy efficiency. In Texas, the Lamb County Electrical Cooperative uses TUNet to precisely control and monitor water pump usage, allowing it to equitably compensate cooperative members for demand response events and provide a conservation mechanism.
“Our customer utilities’ C&I users demand the highest performance and cutting edge functionality,” said Tantalus president and CEO Eric Murray. “As broader opportunities to monetize effective energy use present themselves to end user customers, we will continue to develop and deliver leading edge commercial and industrial electric metering solutions.”… more…Date: February 03, 2012
Regulatory accounting and GASB 62 applications
(with specific example for contributions in aid of construction)
Russell Hissom, CPA, Partner
January 2012
With the issuance of Government Accounting Standards Board (GASB) Statement 62, utilities required to follow governmental accounting standards will no longer be allowed to follow any Financial Accounting Standards Board (FASB) guidance, including that for regulatory accounting (FAS 71/ASC 980). GASB 62 Codification of Accounting
and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements is effective for financial statements for periods beginning after December 15, 2011.
This article explores the answers to some of the allowable uses of regulatory accounting under GASB 62.
FAS 71/ASC 980 lives on in GASB 62
FAS 71/ASC 980—Accounting for the Effects of Certain Types of Regulation
ASC 980 is the accounting tool used by public utilities where strictly following GASB does not necessarily meet their business model and the intent of certain accounting transactions that will benefit future periods or be charged against future periods. This is also the manner in which public utilities recover their costs through rates charged to their ratepayers, make their operating benchmarks comparable to their investor-owned peer utilities, and also match their accounting to utility industry standards.
GASB 62 has codified ASC 980 in a form that will allow public utilities a seamless transition without change to their current application of regulatory accounting under ASC 980. GASB 62 discusses using these regulated accounting rules in paragraphs 476–500 of the standard.
Regulated accounting under GASB 62
GASB 62 uses the term “Regulated Operations,” and discusses regulated accounting rules under paragraphs 476–500 of the standard.
Regulated accounting defined
The standard states that regulated accounting rules … “may be applied to business type activities that have regulated operations that meet all of the following criteria:
1. The regulated business-type activity’s rates for regulated services provided to its customers are established by, or are subject to approval by, an independent, third-party regulator or by its own governing board empowered by statute or contract to establish rates that bind customers;
2. The regulated rates are designed to recover the specific regulated business-type activity’s costs of providing the regulated services, and;
3. In view of the demand for the regulated services or products and the level of competition, direct and indirect, it is reasonable to assume that rates set at levels that will recover the regulated business-type activity’s costs can be charged to and collected from customers. This criterion requires consideration of anticipated changes in levels of demand or competition during the recovery period for any capitalized costs.”
These are substantially the current rules followed under ASC 980.
Application of ASC 980 rules under GASB 62
GASB 62 goes on to discuss how regulators may adjust rates for cost or revenue deferrals and the related accounting considerations that will be in play, depending on those regulator actions. Remember, for most public utilities the regulator is the city council or utility governing board.
The standard states that, “Rate actions of a regulator can provide a business-type activity with reasonable assurance of the existence of an asset. A regulated business-type activity should capitalize all or part of an incurred cost (that otherwise would be charged to expense) if both of the following criteria are met:
a. It is probable that future revenue in an amount at least equal to the capitalized cost will result from inclusion of that cost in allowable costs for rate-making purposes, and;
b. Based on available evidence, the future revenue will be provided to permit recovery of the previously incurred cost rather than to provide for expected levels of similar future costs. If the revenue will be provided through an automatic rate-adjustment clause, this criterion requires that the regulator’s intent clearly be to permit recovery of the previously incurred cost.”
Finally, the standard provides for return of revenues to customers, stating that, “A regulator can require that a gain or other reduction of net allowable costs be given to customers over future periods. That would be accomplished, for rate-making purposes, by amortizing the gain or other reduction of net allowable costs over those future periods and reducing rates to reduce revenues in approximately the amount of the amortization. If a gain or other reduction of net allowable costs is to be amortized over future periods for rate-making purposes, the regulated business-type activity should not recognize that gain or other reduction of net allowable costs in the current period. Instead, it should be deferred for future reductions of charges to customers that are expected to result.”
Standard uses of regulatory accounting
Again, “intent” is the key element in the use of regulatory deferrals (i.e., how will we recover these costs from our ratepayers or defer revenue recognition to future periods to mitigate rate impacts). Typical uses of regulatory assets and liabilities include:
Regulatory assets
Extraordinary maintenance costs such as planned unit outages, weather damage, or other unforeseen events
Premature losses on asset retirements
Decommissioning of generating units
Future recoverable costs (i.e., the difference between depreciation and debt service on bond financed plant) used to smooth the earnings impact
Long-term deferred receivables
Deferred power costs to be recovered in the future
Mark-to-market derivative and investment losses
Advanced debt refunding losses
Regulatory liabilities
Rate stabilization (funded or unfunded)—the difference of earnings over bond coverage to be used in future periods to offset anticipated increases in power costs and other expenses
Deferred costs collected in rates now that will be expended in future periods—such as those for future maintenance projects or decommissioning expenses
Contributions in aid of construction
Use of regulatory accounting and contributions in aid of construction
The use of regulatory accounting is well suited for deferring recognition of contributions in aid of construction for utility plant additions.
Under GASB 33—Accounting and Reporting for Non-Exchange Transactions, utility plant received from customers or developers is required to be recognized as revenue in the period of the transaction. Under the utility business model this does not necessarily make sense, as the utility will record depreciation on these contributed assets in future periods, while recognizing the full revenue of the contribution in a single period.
The application of regulatory accounting in this instance allows the income impact of the transaction to be matched over the depreciable life of the contributed assets, resulting in an income impact of zero.
For example, let’s assume these events:
1. A subdivision developer constructs $1 million of utility infrastructure (services, mains, etc.) and turns this infrastructure over to the utility per the utility’s service territory rules. This infrastructure will be maintained and eventually replaced by the utility.
2.The useful life of this infrastructure is thirty years
The entries under two scenarios to record these events are as follows:
GASB 33 required method
1.Receipt of utility infrastructure—
Debit Utility Plant in Service $1,000,000
Credit Revenues $1,000,000
2. Record annual depreciation expense over thirty years
Debit Depreciation Expense $33,333
Credit Accumulated Depreciation $33,333
Using this method results in revenue recognition of $1 million in the year of the transaction, but recognition of the related expense over thirty years—violating the common accounting principle of matching.
Using regulatory accounting to reflect the impact of the transaction on utility income and rates
The impact above can be mitigated through the use of regulatory accounting, as follows:
1. Receipt of utility infrastructure—
Debit Utility Plant in Service $1,000,000
Credit Deferred Regulatory Liability $1,000,000
The regulatory liability is a balance sheet account
2. Record annual depreciation expense over thirty years
Debit Depreciation Expense $33,333
Credit Accumulated Depreciation $33,333
3. Record recognition of deferred revenue over thirty years
Debit Deferred Regulatory Liability $33,333
Credit Depreciation Expense $33,333
Using this method makes the annual impact to utility income zero—reflecting that the utility must recognize depreciation expense for a utility plant that it did not finance and which is offset by the contribution for
that infrastructure.
Replacement financing of that plant after thirty years when it is fully depreciated is a separate question from this accounting approach.
Other thoughts
As with ASC 980, Baker Tilly recommends that utilities document their cost or revenues for deferral and seek governing board approval for such items either through a blanket resolution for routine items, or through board action, passing resolutions for specific material items. Documentation should reflect the cost or revenues to be deferred, pertinent details of the transaction, and the intended rate recovery or revenue return period. Changes in any circumstances should be reflected in future accounting from the point of the change in circumstances.
Summary
GASB 62 Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements appears to have addressed any concerns public utilities may have about their use of FASB pronouncements, especially ASC 980 for regulated accounting. While there will be a note needed in your utility’s financial statements about implementing GASB 62 (effective for periods beginning after December 15, 2011), there should be no change in your financial statements if you’re currently using ASC 980.
As always, we seek your input into practical application of the new statement. If you have comments or ideas, please respond to russ.hissom@bakertilly.com, or post your comments to our Utility Accounting Issues Forum on LinkedIn. For a link to the page, visit www. bakertilly.com/powerup.… more…A Rapid Response to the NERC Facilty Rating Methodology Alert
Date: December 28, 2010
Burns & McDonnell has written a new whitepaper entitled A Rapid Response to the NERC Facility Rating Methodology Alert. This paper will help you learn more about required responses to NERC in the coming months as part of your overall compliance plan.
Click here to read more:
http://www.burnsmcd.com/tdThe Challenges Faced When Converting Solid Heavy Fuel Oil Fired Boilers To Bioma
Date: November 05, 2010
By: Thomas Stringfellow
Senior Consulting Engineer at Halcrow, Inc.
Introduction
In today’s world, biomass has become the golden word for Utilities, Municipalities and other industries that are examining ways to become carbon neutral or meeting Renewable Portfolio Standards (RPS) mandated by their State. However, converting existing boilers to biomass is not as simple as switching the fuel being burned in the boiler. There are impacts that need to be considered and addr
essed during the decision making process. These impacts will determine whether or not a boiler owner can convert their boiler to biomass and the following discussion provides some guidance in the decision making process.
Impacts
Firing biomass in boilers that were originally designed for coal and heavy fuel oil will have challenges for the boiler owner. First biomass usually contains higher moisture content than the other two fuels, second the ash chemistry of biomass is vastly different than the chemistry of coal and heavy oil ash. These differences alone will impact the boiler’s performance and overall operation of the boiler, if modifications are not performed.
Although the boiler is the main focus of this discussion, there will be other impacts to consider. These impacts will be on the fuel and ash handling systems, which may or may not require modification or replacement.
Halcrow analyzed the firing of biomass in the same size boilers designed to fire a sub-bituminous, a bituminous and a lignite coal. This analysis was also performed on a heavy oil or No. 6 oil fired boiler. In order to keep an apples to apples comparison all boiler conditions (steaming rate, steam temperature and pressure) were identical for each case.
Analytical Results
The results from the analyses show that firing biomass in an existing coal or heavy oil fired boiler will cause the boiler owner to make modifications to their boilers, or de-rate the boiler to lower steaming rates and or/conditions. The other option would be to dry the biomass to a 10% or less level. The table below shows the numeric results of our analyses.
Fuel Sub-Bituminous Bituminous Lignite Heavy Oil Biomass
MMBtu Output 500 500 500 500 500
MMBtu Input 588.5 565.3 601.7 572.2 623.9
Air Flow lb/hr 530,150 509,010 539,930 494,150 540,010
Flue Gas Flow lb/hr 596,140 549,610 617,950 525,700 630,480
Ash Flow lb/hr 3,140 4,560 8,000 300 8,060
Boiler Efficiency % 85.07 88.51 83.12 87.43 80.20
As expected, biomass and lignite performance are similar, yet the fouling and slagging indices for the biomass is higher than the lignite due to the amount of sodium and potassium in the biomass ash. In all cases, with the increased flue gas weight, the velocity will be higher in the convection pass if these boilers were converted to 100% biomass, without modifications.
So does this mean that boiler owners should not convert their boilers to burn biomass? Halcrow believes that the answer to that question is NO! Even though converting to biomass brings challenges and changes to the boiler, there are economic and environmental reasons and incentives to proceed with the fuel switching conversion.
The next questions are what do we do and how do we do it? The answer to these two questions and the possible solutions are discussed below.
First, if full load steaming conditions are not required the only change may be changing to a burner designed for biomass, adding strategically placed ash removal equipment (soot blowers) and operate the boiler with lower steaming conditions (de-rate). Second, if full load steaming conditions are required it may be necessary to add larger air and flue gas equipment (fans), opening the convection pass clear side tube spacing, replacing the burners and adding strategically placed ash removal equipment. Third, change the way the boiler is operated by installing overfire air and monitor the combustion process to mitigate the fouling and slagging conditions.
Conclusion
Every boiler is different and its design may hold potential for conversion. Boiler owners should employ qualified people to investigate converting to biomass and to provide them with an analysis that one, they can understand, two that they can use to make the optimum decision and finally put into their future planning for conversion. We believe this type of analysis is critical in the initial planning stages of any process of converting existing boilers to biomass.
… more…
