STRATEGIC ASSET MANAGEMENT PLAN 2022

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

STRATEGIC ASSET

MANAGEMENT PLAN

2022

This Strategic Asset Management Plan documents Transmission’s

current state and maturity in asset management organization, people,

processes and systems. The SAMP recommends asset management

improvement actions to be implemented across the full asset lifecycle to

better create and deliver value for BPA’s ratepayers and stakeholders,

while also ensuring long term grid safety and reliability.

For Transmission

Category

B O N N E V I L L E   P O W E R   A D M I N I S T R A T I O N  
 

 
Table of Contents 
0  EXECUTIVE SUMMARY ..............................................................................................................................4 
0  ACKNOWLEDGEMENTS .............................................................................................................................6 
1  Senior ownership..................................................................................................................................6 
2  Strategy Development Approach.............................................................................................................7 
2.1  Key Contributors............................................................................................................................7 
2.2  Key Activities.................................................................................................................................7 
0  STRATEGIC BUSINESS CONTEXT ..................................................................................................................7 
1  Alignment of SAMP with Agency Strategic Plan .........................................................................................7 
2  Scope ..................................................................................................................................................8 
3  Asset Description and Delivered Services..................................................................................................9 
Table 3.3-1, List of Major Assets............................................................................................................................9 
4  Demand Forecast for Services............................................................................................................... 11 
5  Strategy Duration ............................................................................................................................... 13 
0  STAKEHOLDERS ...................................................................................................................................... 13 
1  Asset Owner and Operators ................................................................................................................. 13 
2  Stakeholders and Expectations ............................................................................................................. 13 
Table 4.2-1, Stakeholders ................................................................................................................................... 14 
Table 4.2-2, Customer Breakdown ....................................................................................................................... 15 
0  EXTERNAL AND INTERNAL INFLUENCES ..................................................................................................... 15 
Table 5.0-1, External Influences (Opportunities & Threats) ...................................................................................... 16 
Table 5.0-2, Internal Influences (Strengths & Weaknesses)...................................................................................... 17 
1  SWOT Analysis ................................................................................................................................... 19 
Table 5.1-1:  SWOT ........................................................................................................................................... 20 
0  ASSET MANAGEMENT CAPABILITIES AND SYSTEM....................................................................................... 21 
1  Current Maturity level ......................................................................................................................... 22 
2  Long Term Objectives .......................................................................................................................... 27 
3  Current Strategies and Initiatives .......................................................................................................... 29 
4  Resource Requirements ....................................................................................................................... 30 
0  ASSET CRITICALITY .................................................................................................................................. 30 
1  Criteria .............................................................................................................................................. 30 
2  Usage of Criticality Model .................................................................................................................... 33 
0  CURRENT STATE ..................................................................................................................................... 35 

B O N N E V I L L E   P O W E R   A D M I N I S T R A T I O N  
 

 
1  Historical Costs................................................................................................................................... 35 
2  Asset Condition and Trends .................................................................................................................. 37 
3  Asset Performance.............................................................................................................................. 40 
4  Performance and Practices Benchmarking .............................................................................................. 42 
0  RISK ASSESSMENT .................................................................................................................................. 42 
0  STRATEGY AND FUTURE STATE ................................................................................................................. 51 
1  Future State Asset Performance............................................................................................................ 52 
2  Strategy............................................................................................................................................. 52 
2.1  Sustainment Strategy ................................................................................................................... 53 
2.2  Growth (Expand) Strategy ............................................................................................................. 60 
2.3  Strategy for Managing Technological Change and Resiliency .............................................................. 62 
3  Planned Future Investments/Spend Levels ............................................................................................. 62 
Figure 10.3-1, Capital and Expense Future Spend................................................................................................... 64 
Figure 10.3-2b, Capital Future Spend – Low Range..........................................................Error! Bookmark not defined. 
Figure 10.3-3, Asset Management Expense Future Spend ....................................................................................... 65 
4  Implementation Risks .......................................................................................................................... 65 
Table 10.4-1, Implementation Risks ..................................................................................................................... 65 
5  Asset Conditions and Trends................................................................................................................. 67 
6  Performance and Risk Impact ............................................................................................................... 68 
0  Addressing Barriers to Achieving Optimal Performance................................................................................ 70 
0  DEFINITIONS.......................................................................................................................................... 72 
 
   

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

1.0 EXECUTIVE SUMMARY

Transmission’s objective is to remain the transmission service provider of choice, by assuring we maintain financial

strength, safety, reliability and competitiveness, while continuing to meet our multiple statutory responsibilities and

delivering the public benefits that are so valuable to the region. Transmission’s Strategic Asset Management Plan (SAMP)

documents the current state and describes planned asset management improvements, maturity and competencies

needed to effectively and efficiently manage the entire lifecycle of BPA assets that deliver electric transmission services.

The SAMP was developed through coordination with numerous internal stakeholders and is aligned with the Agency

strategy, Transmission Business Model, stakeholder requirements, organizational objectives and resulting asset

management objectives.

Transmission Services manages nearly $5 billion in depreciated assets for substations, transmission lines and

communication infrastructure that is critical to the Northwest economy. The system comprises about three-fourths of the

Northwest region’s high voltage transmission assets. BPA’s Transmission system spans approximately 300,000 square

miles and includes more than 15,000 circuit miles of transmission lines, 3,500 miles of fiber, over 260 substations and 732

telecommunication facilities. These assets deliver electric power, directly or indirectly, to a population of more than 12

million through four main product categories:

 Transmission service to regional utilities and merchant entities

 Generation and line & load interconnections

 Interregional transfers of capacity and energy

 Ancillary services, such as regulation and load following services

For the 2022 refresh, Transmission Services surveyed a broad cross section of internal stakeholders to assess asset

management maturity. The maturity scores ranged, on average, from 1.2 to 1.5 (out of a possible 4). In comparison, the

2020 scores averaged 1.5 to 1.9. The new maturity scores can be attributed to: more levels of the organization

represented; stakeholders more familiar with Institute of Asset Management (IAM); and a more accurate internal

capabilities rating due to increased knowledge of AM by staff. Though scores decreased slightly, continual cultural focus

at all levels of the organization has allowed for growth and continued maturation, with numerous plans for future

development over the next several years which is critical for the continued advancement of the AM Program.

Transmission was impacted by the COVID-19 pandemic, and execution rates decreased in 2020 due to pandemic impacts.

The supply of materials was challenging as well as the ability for labor to perform onsite work. Precautionary work stand-

downs also impacted project delivery in some locations during wildfire season.

Transmission continues to stay focused on strategic efforts to get more work done, get the right work done, and to do the

work at the right time. Recent accomplishments and future plans include:

SCM – Secondary Capacity Model - Get more work done

The Secondary Capacity Model, a scalable delivery model using external, contracted resources as an Owner's

Consultant and a Progressive Design Builder is now fully developed and operational. In FY22/FY23, we are

anticipating a ramp up in the amount of capital work that will get done using this new delivery model.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

CHR – Criticality, Health and Risk - Do the right work

Transmission continues to develop and mature our Criticality, Health and Risk methodologies and capabilities.

CHR has advanced in its analytics, with comprehensive health scoring and the ability to apply the Reliability and

Safety criticality dimensions at an asset level, for substation and line assets. Data is integrated into Cascade and

this capability represents an advancement in AM maturity in 2021. We are utilizing CHR data to inform our

decisions, discovering more, and continuing to add assets and aspects as appropriate for decision-making.

TPOT – Transmission Portfolio Optimization Tool - Do the work at the right time

As we look towards the future, we are developing a plan to optimize our portfolio of work. We are currently

benchmarking with other utilities to understand benefits and potential cost savings from this type of tool; and we

are preparing our business process documentation in order to get ready for determining what features are

required in an application. Though timing is uncertain based on budget and resource availability, Transmission

currently plans to begin the IT capital process in FY24 and to begin implementation of the tool.

Thereafter, Transmission’s capital program will ramp up at a progressive pace over the next few years to meet system

replacement (capital-sustain) program needs and to meet Project Funded in Advance (PFIA) (customer) program needs

(driven in part by Renewable Portfolio Standards (RPS)). Transmission system expansion will be dominated by

compliance and customer-driven interconnection requests to serve continuing growth in renewable generation and large

loads, specifically data centers. Energy storage projects are on the horizon and may require system reinforcement when

built. BPA and the region are increasingly looking to commercial and technical alternatives to meet dynamic system

demands and therefore large infrastructure builds will continue to be augmented with a scalable flexible approach until

they are ultimately required.

Transmission is continuing to mature its asset management program and capabilities and to monitor and mitigate

challenges (both internal and external) in order to respond to and adapt to an evolving industry and changing

environment.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

2.0 ACKNOWLEDGEMENTS

2.1 Senior ownership

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

2.2 Strategy Development Approach

2.2.1 Key Contributors

A review performed in Fall 2021 revealed that the primary strategic drivers articulated in the 2020 SAMP remain relevant

in our 2022 refresh. It was also clear that some changes were needed as a result of pandemic impacts, resource

availability, and other factors. Primary strategic feedback for the 2022 refresh have been provided by the Transmission

Asset Manager as well as by leaders in Transmission Engineering, Transmission Planning, Transmission Field, Supply

Chain, and Transmission Technology.

Transmission aspires to broaden the exposure of Asset Management within our workforce. Accordingly, over 40

individuals completed the Maturity Level Assessment across all areas of Transmission, and at various levels within the

organization.

While key contributors and specified owners are identified for key initiatives, programs and projects for the delivery of

Transmission’s strategy, every team member within Transmission plays a role, has responsibility and can add value to

implement the prescribed activities and methodologies to balance asset performance, identify and manage risks and

maximize Total Economic Value.

2.2.2 Key Activities

As mentioned in 2.2.1, the primary activities to prepare for the SAMP refresh were repeated strategy/dialogue

conversations with leaders, as well as the Maturity Level Assessment. Leaders and staff also provided written feedback,

and cross organizational collaboration between Transmission, Finance, and Risk also furthered the maturity of the SAMP.

The following topics helped facilitate the collaborative dialogue:

 BPA Strategic Plan

 Transmission Business Model (TBM)

 Transmission Asset Plan

 Internal and External Influences

 SWOT analysis

 Transmission Plan

3.0 STRATEGIC BUSINESS CONTEXT

3.1 Alignment of SAMP with Agency Strategic Plan

BPA’s vision is to be an engine of the Pacific Northwest’s economic prosperity and environmental sustainability through

delivering a safe grid, high reliability, low rates, responsible environmental stewardship and regional accountability. BPA

issued its 2018-2023 Strategic Plan in January 2018 and completed a reassessment and reconfirmation of its plan in 2020.

In July 2020, BPA adopted a fifth strategic goal: value people and deliver results. The five strategic goals are:

1. Strengthen financial health

2. Modernize assets and system operations

3. Provide competitive power products and services

4. Meet transmission customer needs efficiently and responsively

5. Value people and deliver results

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

As a major BPA business line, Transmission Services (Transmission) is instrumental in accomplishing BPA’s strategic

priorities, and the SAMP reflects alignment with these priorities. Transmission is focused on several business capability

initiatives in direct alignment with BPA strategic goals. A subset of these initiatives are detailed below.

BPA Strategic Goal

Transmission Asset Management Business Capability Initiative

#1 Strengthen

Financial Health

6A - Criticality, Health, and Risk (CHR) – Continue to develop asset strategies and

plans that are informed by asset condition, criticality and risk to ensure the right

investments are made.

#2 Modernize Assets

& System Operations

7A - Mission Critical IT - An ecosystem of applications and technology that align with

the core businesses of generation and transmission operations at BPA to unify and

streamline Critical Business System Ops (JC) and Transmission Technology Services

(TT) systems and processes for architecture, infrastructure and service management.

7B - Metering Review & Updates - New generation metering at multiple sites to

meet current target for BPA’s EIM (Energy Imbalance Market) participation.

#4 Meet

Transmission

Customer Needs

Efficiently and

Responsively

3A – Demand & Capacity Planning – Continue to develop tools and processes to

identify constrained resources enabling BPA to manage demand based upon

business priorities and make smart well-informed decisions. Implement a

centralized, comprehensive, and consistent demand planning and resource

management system will increase Capital work throughput.

3G - Interconnection Queue Responsiveness - Targets established; monitoring

completion time for customer studies, design, and construction; looking into new

contracting models to deliver customer projects faster.

Transmission will initiate a refresh to the Transmission Business Model in fiscal year 2022. The SAMP development will

be coordinated with pending updates to both the Transmission Business Model and BPA’s strategic plan. Maturing

Transmission’s asset management competencies in all areas will enable the modernization of assets to help BPA

maintain competitive advantage in the marketplace, enable BPA to predict and respond to industry changes and deliver

on public responsibilities; as well as strengthen financial health through the management of lifecycle costs and asset

value.

3.2 Scope

Transmission’s SAMP covers Transmission Assets as detailed in Section 3.3. It covers Transmission Asset Management

decision-making, project execution, and asset maintenance with focus from all Transmission organizations including

Planning, Engineering, Technology, Field Services, Marketing and Sales, and Operations. Transmission’s SAMP does not

include a discussion of the Facilities, Security, Environment, or Fleet programs. It does include a discussion of any

Transmission specific impacts as a result of work in those other programs. For example, Transmission equipment related

to Vancouver Control Center is included, whereas the building (and other Facilities components) is not.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

The Boardman to Hemingway project (B2H) is not included in the SAMP. BPA will engage in public processes to discuss

B2H with customers in 2022. BPA continues to evaluate the Grand Coulee Switchyard asset transfer, and specific impacts

are not yet included in this version of the SAMP. Further impacts may be identified through the BP-24 IPR process.

3.3 Asset Description and Delivered Services

Transmission manages more than 15,000 circuit miles of high voltage transmission lines, over 260 substations, 732

telecommunications sites, approximately 3,500 miles of Fiber, approximately 195,600 acres of right of way and two

control centers. See Table 3.3-1 for a summary of assets.

Table 3.3-1, List of Major Assets

Asset

Description

Alternating Current

Substations (AC Subs)

Over 260 substations with more than 32,000 major equipment items

including high value, critical items such as transformers, reactors and

circuit breakers.

High Voltage DC / Flexible

AC Transmission Systems

(HVDC/FACTS)

Specialized conversion and control equipment located at Celilo

Converter Station, Maple Valley, Keeler and Rogue Static VAR

Compensation sites, and numerous series capacitor installations on the

high voltage alternating current intertie transmission lines.

Control Centers

Two redundant and geographically distributed control centers

monitoring and controlling the grid and data systems. Over 85

automation systems.

Power System Control (PSC)

and System Telecomm

732 sites and ~ 11,000 pieces of equipment, 3,500 miles of fiber optic

cable, all vital to BPA’s ability to control and monitor the grid.

System Protection and

Control (SPC)

956 locations, approximately 28,000 major units of 33 equipment types,

all critically important to protect the grid for reliability and safety.

Access Roads

11,860 miles of access roads with bridges, culverts and gates

Land Rights

Approximately 80,000 tracts of easement plus fee-owned properties

Wood Lines

Approximately 4,800 miles total in 336 separate transmission lines with

73,500 wood poles.

Steel Lines

10,300 circuit miles with 43,500 lattice steel and engineered steel pole

transmission lines and all associated towers, hardware and components.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 3.3-2, Asset Locations

Transmission manages over 200,000 major unit assets, 732 telecommunication sites, and two control centers.

Depreciated (book) value is approximately $5 billion dollars. Maintenance activities are prioritized based on compliance

drivers and time. Corrective work is prioritized based on impact to system reliability and safety. All emergency and

compliance work are given highest priority.

Transmission assets deliver the following products and services:

 Ancillary Services and Control Area Services (ACS):

This product supports the reliable transmission of energy from resource to load, by providing capacity flexibility

within BPA’s Balancing Authority Area to support customers’ generation interconnection, load-service, and

marketing, and by responding to Contingencies and generation/load deviations from schedules. Under the pro

forma tariff, the transmission provider is required to provide, and transmission customers are required to

purchase, certain Ancillary Services. The transmission provider is also required to offer other Ancillary Services

that the transmission customer must either purchase or self-supply through a customer’s own resources or

purchases from a third-party.

 Generator Interconnection/Integration (GI):

GI projects are customer requests to interconnect/integrate to the BPA system, resulting in potential network

additions and/or interconnection facilities. A key objective of the Transmission Services product management

strategy is to interconnect customer projects as efficiently as possible, ultimately meeting customer timelines. In

doing so, BPA continues to fulfill its commitment to the region to provide an adequate, efficient, economical and

reliable power supply.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

 Network Transmission (NT):

The NT Service product is intended for, and available only to, load serving entities requesting use of BPA’s

transmission system for delivery of generation to serve their loads. NT customers provide 10-year load and

resource forecasts so that BPA can fulfill its obligation to plan its system to serve NT customer load.

 Point-to-Point (PTP):

Point to Point transmission is a transmission service that allows a customer to schedule energy from point A to

point B. PTP is highly valuable because of its unique flexibility. It can be used to market power to third parties as

well as to serve load. It can be resold, redirected to other firm or non-firm products, including different paths. It

can also be used for dynamic transfers both on the network and on interties.

Refer to the Open Access Transmission Tariff (OATT) for additional information pertaining to Transmission products and

services. Transmission also offers products and services not required by the OATT, such as BPA’s dark fiber lease program.

3.4 Demand Forecast for Services

Currently, over 90% of total transmission sales comes from rate segments that include Network, Intertie, and Ancillary

Services. Long-term (5 year and 10 year) forecasts project this same demand based on either Network loads or Point-to-

Point reserved transmission demands.

The Transmission Plan is a document developed by the Transmission Planning (TPP) organization, in which recommended

alternatives for transmission reinforcements are studied and documented. The plan is the output of an annual planning

process with a ten-year outlook. The recommended alternatives include transmission needs identified from the annual

reliability system assessment, transmission service requests, new generation and line & load interconnection

requests. Acknowledging the many uncertainties that exist in the evolving energy industry, the Transmission Plan is a

robust, yet flexible forecast of Transmission needs.

Transmission system expansion will be dominated by compliance and customer-driven interconnection requests to serve

continuing growth in renewable generation and large loads, specifically data centers. Energy storage projects are on the

horizon and may require system reinforcement when built. BPA and the region are increasingly looking to commercial

and technical alternatives to meet dynamic system demands and therefore very large infrastructure builds will become

less likely in the next decade.

Within Section 12 of the Transmission Plan a narrative description is provided of the transmission needs identified

through the transmission planning process. This includes the preferred alternative, an estimated cost, and estimated

schedule for completion of the preferred alternative. Reinforcement projects for the transmission system are identified

and described, along with proposed projects identified to meet the forecast requirements of BPA and other customers

over the ten-year planning horizon. This section provides the proposed new facilities organized by type of project. The

types of projects include the following:

 Projects required to provide load service and meet Planning Reliability Standards

 Projects to improve operational or maintenance flexibility

 Projects required to meet requests for transmission service

 Projects required to meet requests for Generator Interconnection/integration service

 Projects required to meet requests for Line and Load Interconnection service

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Refer to the Transmission Plan for detailed information regarding required products and services, as well as, market

factors that may affect delivery of service.

The current long range sales forecast is based on sales and revenues from the BP-22 Transmission Rate Case, with the

out-years adjusted for identified factors, particularly Network load and Network contract demand. Network transmission

service includes products used to either serve load to customers, or move transmission from a Point-of-Receipt to Point-

of-Delivery for load service and marketing usage. Network Integration (NT) sales serve load to customers and are based

on metered customer loads at the peak hour of the Transmission load in the month. The load forecast is based on

forecast developed by Agency Load Forecast, with an annual load growth applied to out-years. Point-to-Point service

(PTP) moves energy over transmission paths in the Network based on reserved demand (firm and non-firm). Long-term

service includes service for one year or more with the demand amount specified to move transmission from Point-Of-

Receipt (POR) to Point of Delivery (POD) over specified time duration. Short-term service includes service less than one

year and is market driven by hydro and pricing conditions.

Intertie sales (IS) likewise are based on demand and capacity. Long-term sales for IS include sales durations of one year

or longer and are based on confirmed reserved capacities and deferrals. The long-term capacity on the Southern Intertie

is almost fully subscribed from north-to-south with high rates of renewals (95%), so added sales are limited. Short-term

IS sales include demand for near-term service with regional price spreads as the primary inputs for customer behavior.

Another sales category includes required Ancillary Services. As described in Section 3 of the OATT, customers that

purchase Network and Intertie transmission are required to acquire Scheduling, Control, and Dispatch service

(SCD). Other Ancillary Services include products that apply to certain customers only.

Additionally, BPA has recognized an increasingly dynamic, uncertain and changing environment. We've seen changes in

traditional operational, marketing and planning practices including oversupply of energy, negative market prices, a

movement towards smart-grids, and an evolving regulatory environment responding to retail customer self-supply and

distributed energy. Across the Northwest, states are committing to carbon-free power. Washington, Oregon, Idaho and

California have pledged and adopted legislation to move to clean energy. To meet landmark clean energy goals, coal

plants will need to be retired and our Transmission system will need to adapt in order to supply clean, reliable, and

controllable resources that can meet energy demands across all hours. Energy storage projects could be on the horizon

and may require system reinforcement when built. BPA and the region are increasingly looking to non-wire (commercial

and technical alternatives) to meet dynamic system demands and therefore very large infrastructure builds might

become less likely in the next decade, while system adaptations may be required in new ways not yet determined. Due

to declining costs of renewable energy, Transmission needs to prepare to respond to potential variable energy

resources. Our Transmission assets may also need the ability to realize the value of sub-hourly dispatch with flexible and

low carbon hydro resources. Transmission is also seeing changes in use and system operations. With the emergence and

growth of the energy imbalance markets, the region needs a well-designed electricity market built on a foundation of

resource adequacy, intra-hour energy balancing, and the ability to compensate explicitly for capacity resources that

provide system reliability and flexibility. Our Transmission assets and systems will need to be modernized to

accommodate these shifts in the industry and in demand.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

3.5 Strategy Duration

Transmission’s SAMP duration is 10 years, with a refresh every 2 years. It provides a long-term view that takes into

consideration organizational needs, external expectations, current state of existing assets, and the agency’s asset

management capabilities. It is reviewed annually as part of Asset Plan development work.

4.0 STAKEHOLDERS

4.1 Asset Owner and Operators

Transmission provides services for generation and load interconnection to the Federal Columbia River Transmission

System. BPA interconnection procedures adhere to the requirements of its Open Access Transmission Tariff (OATT).

BPA also manages and responds to long-term firm transmission service requests (TSR) on the BPA network through the

Transmission Service Request (TSR) Study and Expansion Process (TSEP). Transmission also operates and manages

network assets owned by other entities. Management of those assets is handled through a rate case process with

segmentation and inter-business line budgeting. Customer service agreements with the asset owner(s)/operator(s) are

other tools used when work/coordination is required on assets that BPA does not own.

Transmission supports real-time dispatch of the system as well as coordinates with internal groups, western utilities and

groups needed for reliability (including the Reliability Coordinator), and complex outages. In addition, Transmission

develops systems for the control centers such as automatic generation control, load shedding, reactive switching and

remedial action schemes, standards and agreements to support interconnected operations, and manage data generated

in real-time.

Transmission coordinates system operation and planning issues with groups such as the Western Electricity Coordinating

Council (WECC), Institute of Electrical and Electronics Engineers, Inc. (IEEE), North American Electric Reliability Council

(NERC), Electric Power Research Institute (EPRI) and NorthernGrid (NG).

Transmission also works closely with the other BPA asset categories:, Facilities, Environment, Security, Fleet, and IT. For

example, the Facilities Asset Management program manages certain elements of the control house (the building, HVAC

systems, etc), whereas Transmission manages equipment replacement within the control house. The Environment and

Security capital programs manage improvements to Transmission assets, such as addressing oil containment concerns or

enhancing security fencing. The Fleet program procures vehicles used throughout the Transmission system.

4.2 Stakeholders and Expectations

BPA’s ratepayers and stakeholders expect reliable service at the lowest transmission rates consistent with a sustainable

business model. Internal to BPA, Finance and Risk expect prioritization of Transmission investments based on a net

economic benefit ratio (NEBR) while Transmission manages programmatic and execution risks. To deliver on these

requirements, Transmission must have effective methodologies for investment evaluation and decisions. Total Economic

Cost (TEC) modeling tools are used to inform investment levels by asset type. Transmission is investigating reliability

engineering and portfolio optimization methods and tools to improve decision making over the full asset lifecycle.

Transmission is also continuing to mature its Criticality, Health and Risk (CHR) capability. To meet internal and external

stakeholder expectations, Transmission must continue to implement improvements and achieve efficiencies.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Table 4.2-1, Stakeholders

Stakeholders

Expectations

Current Data Sources

Measures

Customers (see

4.2-2)

Control Costs

Long Term Rates Forecasts,

Integrated Program Review (IPR)

Rate Forecast from Long Term

Planning / Marketing

Reliability

Reliability database, SCADA, OARS

System Average Interruption

Duration Index (SAIDI),

System Average Interruption

Frequency Index (SAIDI)

Transmission

Service and

Interconnection

Availability

Transmission Service Request queue,

Interconnection queue

Transmission Service Requests

granted vs. denied, queue

waiting time.

Request to Energization

duration for new

interconnections.

Government

Agencies (USFS,

USACE, FAA,

Reclamation,

USFWS)

Communication

Public Comment Records, Forums

including telephone meetings

Customer Satisfaction Surveys

Compliance with

Regulations

Public Comment Records,

Agreements, Documented Policies

NEPA Permitting duration

Joint Funding for

Shared Investments

Agreements

Request to Signed Agreement

duration for new

interconnections.

FERC

Open Access to

BPA’s Transmission

System

Proper Asset

Accounting

BPA’s Open Access Transmission

Tariff

Plant Accounting Policy and

Procedures

Transmission Service Request

Mgmt.

Interconnection Request Mgmt.

Timely Unitization

Environmental

Interests Parties

Compliance with

Regulations

Industry regulations and standards

(NEPA)

NEPA Permitting

Minimized Impacts

Environmental Assessment

Documents

Net Carbon Footprint, Visual

Rendering

Fish and Wildlife

Advocates

Transmission

operations help

support fish

passage

Outage and Remedial Action Scheme

records

Generating Unit forced outage

rate, RAS availability

Commercial

Energy Market

Entrants

Enable distributed

generation and

energy storage

Interconnection queue

Request to Energization

duration for new

interconnections and/or

metering and telemetering.

NERC/WECC

Compliance with

Regulations

Resolver

Internal/External Auditing, RSIPP

Decision Documentation, Self-

Reports

Staff

Job Security and

Satisfaction

Administrative database

Federal Employee survey

results, turnover figures

Safety database

Incident statistics

Health and Safety

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Stakeholders

Expectations

Current Data Sources

Measures

Training

Administrative database

Agreed professional

development

Safety

Industry regulations and standards

Safety Metrics (Lost Time

Accident Rates, Days Away

Restricted or Transferred, Total

Case Incident Rate)

Public

Safety

Public safety management system

Non-conformance records

Public

Communication

Public Comment Records, Forums

including telephone meetings

Tribal Satisfaction Surveys

Cultural Interests

Compliance with

Regulations

Public Comment Records,

Agreements, Documented Policies

Number of cultural resource

disturbances

Number of realty actions on

Tribal land

Table 4.2-2, Customer Breakdown

Customer

Breakdown

Top Priorities

Preference

Customers

Load service responsibilities

Responsiveness to utilities’ end-use customers, their utility boards and political pressure

Keep the lights on – provide reliable service to their customers

Independent

Power Producers

Identify economical interconnections for their generation projects, including wind, solar and

battery storage

Develop generation projects in a timeframe that meet their customer’s needs and power

purchase agreements

Transmit generation output to their customers

Investor Owned

Utilities

Reliably serve customer loads at rates acceptable to Regulators

Effectively and efficiently utilize existing BPA transmission rights to access regional low cost

generation resources to deliver to IOU load

Optimize IOU marketing transactions to increase IOU revenue to offset operational costs that

impact IOU ratepayers and stockholders

BPA Power

Services

Utilize the BPA grid to market the output of the 31 federal hydro generation plants, the Columbia

Generation Station nuclear plant, and other resources to power purchasers throughout the west.

Keep transmission rates low to help Power Services remain competitive in the energy

marketplace.

5.0 EXTERNAL AND INTERNAL INFLUENCES

Transmission operates within complex external and internal environments. Table 5.0-1 details the primary External

Influences (Opportunities and Threats) as well as the affects to Transmission and actions we are taking. Table 5.0-2

details the primary Internal Influences (Strengths and Weaknesses) and also lists affects and actions. The SWOT

(Strengths, Weaknesses, Opportunities, Threats) Table 5.1-1 concisely presents these factors organized by internal

Strengths and Weaknesses and external Opportunities and Threats in a simple matrix. Some topics are considered both

opportunities and threats, and that has been depicted as well.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Table 5.0-1, External Influences (Opportunities & Threats)

External Influences

Affects and Actions

Opportunities

Changing generation

mix and distributed

energy resources.

Affects: Generation production in the Pacific Northwest (and across WECC) are

changing from traditional and dependable coal and hydro methods to also include more

renewable sources such as wind and solar which can be somewhat less predictable. The

ongoing market advancement of distributed energy resources (DERs) is challenging

BPA’s ability to interconnect new systems in a timely, cost effective manner; however,

these DERs also offer BPA an opportunity to leverage voluntary non-BPA investments to

help address bulk grid problems.

Actions: The new mix of generation sources may require future investments in

transmission reinforcements for reliable load service. Transmission continues to

perform long term planning assessments to remain well connected to regional

developments.

Timely response to

customer

Interconnections for

new generation and

major load additions

Affects: Exemplified by new photovoltaic solar generation and data center loads, BPA’s

stakeholders demand ever-faster and cheaper interconnections to the grid. New Power

Contracts will be shaped, in part, by customer perceptions of the value of BPA’s

products and services, the availability of competitive market substitutions, and

challenges associated with long-term planning amidst the considerable and ongoing

transformation of the electric power industry landscape.

Actions: Transmission has implemented improvements to study, plan and execute

these interconnections in a much shorter timeframe, and will continue to do so on an

on-going basis. This work must be coordinated with Power Contract developments and

connected to customer needs.

Rapid technology

changes and new

potential guiding

legislation

Affects: Technological change is more substantial than previous decades and is

occurring at an accelerated pace. We have the opportunity to modernize our grid. New

guiding legislation for BPA is probable in this period of transformation.

Actions: Technological obsolescence will require Transmission to replace equipment

and systems in shorter cycles, likely increasing the cost of its communication and

control systems. Transmission is anticipating these changes and is planning sustain

program needs around technological obsolescence as one factor.

Power/Energy Industry

Analytical Tools

Affects: Increase of organizations focusing on Asset Management and lifecycle costing.

Actions: BPA has more opportunities to learn about (benchmark) or acquire tools to

help with identifying and implementing innovative, lower lifecycle cost alternatives to

provide better business value to the region. Transmission meets with other utilities

regularly for ongoing benchmarking and improvements.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

External Influences

Affects and Actions

Threats

Regularly reoccurring

natural catastrophe

events, such as fires,

earthquakes and grid

attacks

Affects: Load pattern changes due to temperature changes in SW and NW. Timing of

precipitation (earlier freshet/ perhaps bimodal freshets) and therefore generation

patterns for Federal Columbia River Power System (FCRPS) in the Northwest will affect

transmission bulk power flow.

Increased wildfire risk may affect transmission lines and other assets in the field, and

could influence public perception of BPA.

Actions: Transmission is currently maturing processes, tools, methodologies, and plans

to help prepare for weather-related events, including wildfire risk.

Pandemic supply chain

interruption and cost

escalation

Affects: Due to global supply chain factors, material pricing has been higher with

elongated schedules for delivery. Market conditions for human resources are also

constrained.

Actions: Continue to mature risk-based decision-making to ensure we are choosing the

best options for maintaining our assets.

Long-term (regional)

resource adequacy

Affects: Renewables and battery storage (along with some new transmission) are

expected to serve as substitutions for retiring fossil-fueled thermal generation serving

the Northwest and American West, exacerbating concerns over long-term (regional)

resource adequacy and transmission availability and reliability.

Actions: Continue to maintain close connection with resource adequacy efforts in the

region.

Evolving cyber security

threats

Affects: An emerging external influence is the threat of cyber-attacks from outside our

organization including hackers, cybercriminals, and other malicious persons who are

trying to do harm. Energy organizations are a prime target of growing and evolving

cybersecurity threats given the criticality of their infrastructure to our nation. Current

and future state architecture must evolve to account for these increased risks.

Actions: Continued Cyber Security diligence is required in order to protect networks,

devices, and data from unauthorized access or criminal use and ensure confidentiality

(limiting data access), integrity (ensuring your data is accurate), and availability (making

sure it is accessible to those who need it).

Table 5.0-2, Internal Influences (Strengths & Weaknesses)

Internal Influences

Affects and Actions

Strengths

Reliable Transmission Grid

Affects: Transmission demonstrates a long history of safe and reliable grid

operations, which satisfies customers in the region.

Actions: Continue to dedicate resources to maintaining system reliability and

compliance with NERC and WECC mandatory reliability standards.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Internal Influences

Affects and Actions

Resiliency

Affects: Cultural response to unplanned outages has a time proven commitment to

rapid restoration for an event.

Actions: Continue to respond to unplanned outages for service restoration.

Low Cost Sources of Capital

Affects: BPA, as a public sector utility, is a nonprofit provider of transmission

services and has access to lower costs of capital than IOUs or other transmission

providers.

Actions: Utilize public sector status to employ the lowest cost of funding method

available to us. Continue to earn high credit scores.

Safety

Affects: Agency-wide commitment to safety-centric culture; where public service is a

daily driver for decision-making.

Actions: Carry-on safety-centric culture.

Weaknesses

Attraction/retention of

workforce, and high

number of experienced

workers eligible for

retirement.

Affects: High retirement rates and other attrition are contributing to Transmission

workforce being a top enterprise risk. Transmission’s workforce is highly

specialized, limiting opportunities to address workload peaks and adding cost to

scoping and preliminary engineering activities.

Actions: BPA must provide greater opportunities and competitive pay to keep and

attract a qualified workforce. Greater innovation and use of best industry practices

will not only help with retention but will also reduce project cost and duration.

Transmission will need to create sustainable organizational structures and develop

greater personnel competencies.

Lack of integrated asset

data repositories and

systems

Affects: With approximately 40 systems containing asset information, Transmission

is awash in data and the inability to integrate information systems automatically has

challenged employees to examine ways to integrate the information and

document/develop proposals for improvements.

Actions: Transmission is working on a holistic architecture for systems and data,

such as an Enterprise Architecture across BPA, which clearly defines asset

information and data strategy, governance, and systems.

Department alignment on

objectives and prioritization

factors throughout

execution

Affects: With numerous organizations working to support Transmission Asset

Management, alignment can be challenging and can result in a slower pace of

improvements, due to several priorities moving forward simultaneously.

Actions: Transmission has established cross-functional teams and communication

frameworks to continue to improve alignment for optimum use of constrained

resources. Efforts underway to improve processes and data will also support

departmental alignment.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Internal Influences

Affects and Actions

Aging infrastructure

Affects: Transmission’s physical assets are aging, leading to high capital needs for

replacements. Telecom systems are End of Life/End of Service.

Actions: Continue to mature asset management capabilities to focus limited

resources on most critical replacements. Evaluate opportunities to change practices

to maximize limited resources.

IAM cultural awareness

Affects: Silos in organizations can create sub cultures where different organizations

work towards different, even opposing end states, which could lead to poor cross-

departmental interactions and sub-optimal performance.

Actions: Everyone has an impact to asset management and needs to be aware of

their role. Develop Asset Management discipline and increase knowledge base for all

Transmission organizations involved in the acquisition, operation and care of physical

assets for the benefit of Transmission, BPA, our customers and the general public.

5.1 SWOT Analysis

Transmission has been impacted by many global factors in the recent past, ranging from the COVID-19

pandemic, supply chain impacts, wildfire events and increased fire risks, to challenges with hiring/retention, as

well as high numbers of experienced workers eligible for retirement. Transmission’s SWOT analysis, below,

summarizes specific Strengths, Weaknesses, Opportunities, and Threats. The specific affects/actions are

explained in the preceding section (5.0-1 and 5.0-2).

Transmission is responding to and mitigating impacts of global factors, such as by ordering more equipment to

have in stock (to mitigate material delays). Transmission is also hiring additional employees in constrained

areas (such as in the field and in cyber security related areas).

Transmission’s continued work to mature Asset Management, such as by improving asset management data

and alignment (through Enterprise Architecture partnership, asset hierarchy maturation, and Criticality, Health

and Risk maturation, will continue to benefit Transmission as it works to manage these complexities.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Table 5.1-1: SWOT

Favorable

Unfavorable

Strengths

Weaknesses

 Reliable Transmission Grid: Long-term history of a

reliable system of uptime performance.

 Resiliency: Cultural response to unplanned

outages has a time proven commitment to rapid

restoration for an event.

 Low Cost Sources of Capital: BPA has access to

lower costs of capital than IOUs or other

transmission providers

 Safety: Agency-wide commitment to safety-centric

culture; where public service is a daily driver for

decision-making.

 Attraction/Retention of high quality talent, high

numbers of experienced employees eligible for

retirement- BPA is impacted by the tight labor

market, reinforcing the need to continue to enhance

work place culture and respond to employee

suggestions for improvement.

 Lack of integrated asset data repositories and

systems- impacts decision support and employee

experience

 Department alignment on objectives and

prioritization factors throughout execution-

Continuous improvement especially important due

to resource constraints.

 Aging Infrastructure: Transmission’s physical assets

and telecom systems are aging and replacement

needs will be high over the coming decade

 IAM Cultural Awareness: Everyone has an impact to

asset management and needs to be aware of their

role

Opportunities

Threats

 Changing generation mix and distributed energy

resources: could lead to opportunities to reinforce

the system

 Timely customer interconnections: opportunity to

meet customer needs quickly and responsively

 Rapid technology changes and new potential

guiding legislation: opportunity to modernize

Transmission system and partner in the region

 Power/Energy Industry Analytical Tools: BPA may

have more opportunities to learn about or acquire

tools to advance asset management

 Regularly reoccurring natural catastrophe events;

potential fires, earthquakes and grid attacks: High

impact challenges ranging from grid operations to

wildfire season planning and response

 Pandemic supply chain interruptions and cost

escalation: Impact BPAs ability to deliver work within

planned funding levels to achieve results.

 Long-term (regional) resource adequacy: Potentially

affected by weather patterns and other system

changes and needs.

 Evolving cybersecurity threats: An emerging external

influence is the threat of cyber-attacks from outside

our organization

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

6.0 ASSET MANAGEMENT CAPABILITIES AND SYSTEM

On the five-point Institute of Asset Management maturity scale, Transmission’s current asset management practices

range from 1.2 to 1.5, on a scale of 0 to 4. The visuals provided below are shown on a 3 scale to make variations of

scoring more visible. The organization has identified its asset management needs and has demonstrated progress by

committing to ongoing efforts that will continue to mature asset management capabilities.

Figure 6.0-1, Asset Management Maturity Radar Chart

While asset management responsibility resides throughout Transmission Services, accountability is placed with the BPA’s

Chief Engineer, the Vice President of Transmission Planning & Asset Management. Asset management delegation of

authority flows through TP’s Internal Operations Manager to the Strategy, Asset & Program Management (TPO) Manager,

who also serves as Transmission’s Asset Manager.

Transmission’s Asset Management Executive Council (TAMEC) is a strong supporter of asset management. The TAMEC

reviews and approves Transmission capital funding recommendations prior to submittal to the Agency Capital Project

Review Team (ACPRT) and the Finance Committee (FC). Through a charter, the TAMEC has authorized the Portfolio

Management Team (PfMT) to make the daily portfolio management decisions. In recognition of the importance and

value of full lifecycle asset management, the Asset Management Governance Team (AMGT) represents organizations

from the entire asset management lifecycle. Efforts and maturity initiatives are developed cross functionally to continue

to mature in Asset Management initiatives.

Transmission recognizes there is great opportunity in effectiveness and cost savings through integrated replacement and

maintenance decisions. Asset information is not fully integrated into Transmission’s capital process, and improving this

will improve visibility and alignment with other processes.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

6.1 Current Maturity level

The Asset Management Maturity Assessment was refreshed in October 2021. Forty+ people participated in giving their

feedback of the maturity level for all 39 Institute of Asset Management (IAM) Subjects and identified strengths and

weaknesses for the requirements they were knowledgeable of.

The results of the most recent Asset Management Maturity Assessment clearly indicate Transmission is well on our way

with our Asset Management journey. Transmission is aware of and acknowledges critical short-comings that need to be

addressed in each of the IAM Groups. Top priorities and dependencies have been identified and sequencing is occurring

to ensure coordinated plans for making improvements to the most important and foundational work.

Many of the initial Asset Management improvements are operational and teams are now working to ensure proper

documentation and incorporation between organizations. In the coming years, Transmission will continue the long-term

focus and continue the incremental improvements along our Asset Management journey to start realizing benefits and

then optimizing to obtain the greatest value from our assets.

Table 6.1-1 Maturity Level

Subject

Area

Maturity Level

Strategy &

Planning

Strategy & Planning Strengths

The AM Policy, the Strategic Asset Management Plan, and the Transmission Asset Plan have

been coordinated with multiple organizations and authorized by leadership.

Strategy & Planning Weaknesses

Strategic alignment between plan and communications of plan could still use improvement.

Quantitative demand analysis tools and techniques are not effectively utilized for forecasting

demand and demand analysis is not incorporated when developing alternative planning

scenarios.

Strategy & Planning Actions

Asset Management Initiatives are launching and underway to address alignment of plans and

to develop demand analysis capabilities.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Strategy & Planning Subject Maturity Scores

Decision

Making

Decision Making Strengths

Capital Investment Acquisition (CIA) processes for capital investment decision-making are

operational. Decision records are maintained. Shutdown and outage strategy are in line with

the organization’s criteria for asset management decision-making.

Decision Making Weaknesses

The methods, processes, and criteria (including risk) for life cycle value realization are not

consistently available, aligned, documented or utilized. Records are not always available to

demonstrate conformance. Resources and a resourcing strategy to source the required

resources are not optimal.

Decision Making Actions

Groups working on improving Asset Management Decision Making are included in

requirements-gathering for Asset Information Initiatives and efforts (such as Asset Hierarchy),

to facilitate data-driven decisions. An effort is underway to create a cross organizational

resource strategy and proposed plan to improve visibility and the management of resources.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Decision Making Subject Maturity Scores

Life Cycle

Delivery

Life Cycle Delivery Strengths

Capital Investment Acquisition (CIA) processes for asset create/acquisition is operational.

Documentation and systematic processes and/or plans are in place for managing unplanned

events.

Life Cycle Delivery Weaknesses

Life cycle costing in the acquisition and creation of assets is not available. Project management

controls to ensure the timely and cost efficient delivery of the asset management plan(s) are

not optimal.

Life Cycle Delivery Actions

Development of the life cycle costing capability will greatly benefit from the creation of the

Asset Hierarchy and structuring financial, non-financial, and technical information in a usable

structure and system. Improvements to MS Project will allow for better controls. The cross

organizational resource strategy will enable better resource management.

Life Cycle Delivery Subject Maturity Scores

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Asset

Information

Asset Information Strengths

The organization has consistently identified the need for data, information and systems

improvements across many organizations.

Asset Information Weaknesses

Transmission has not fully integrated BPA’s Asset Information Policies into its processes and

tools. Some programs lack a defined Asset Hierarchy. Due to the number of systems, the

complexity of data, and the manual entry required, we are unable to consistently bring

together financial, non-financial, and technical asset information.

Asset Information Actions

Cross-organizational Initiatives are planned to address Enterprise Architecture, Asset

Information Strategy, Asset Information Systems, and data, including an Asset Hierarchy.

Asset Information Subject Maturity Scores

Organizatio

n & People

Organization & People Strengths

The organization identifies Asset Management activities that are appropriate for outsourcing

and those which should remain in-house. Top management promotes cross-functional working

and supports leadership in Asset Management.

Organization & People Weaknesses

Resource demand is unknown and unavailable to support all aspects of our Asset Management

System as it continues to mature. Roles and responsibilities aren't sufficiently understood in all

cases. Our organizational structure isn’t resourced consistent with roles, responsibilities, and

workload to enable effective delivery.

Organization & People Actions

Continue IAM training. Increase communications and awareness. Develop Asset Management

System framework and incorporate Enterprise Architecture and define roles. Continue hiring

staff as identified for successful Asset Management implementation.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Organization & People Subject Maturity Scores

Risk &

Review

Risk & Review Strengths

Transmission has identified what is to be monitored and measured for asset performance and

health monitoring. Transmission has identified the people and organizations that can have an

impact on or experience the consequences of the asset management program.

Risk & Review Weaknesses

The organization hasn't fully determined methods or criteria for asset performance and health

monitoring. Risk tolerance in regards to asset performance is not well defined, therefore, risk

mitigation plans and internal controls are not yet developed. Asset cost assessments are

locally managed and not a cross-functional activity.

Risk & Review Actions

The Criticality, Health, and Risk Initiative remains top priority and will begin to incorporate

more organizations, systems, documentation, and communication. Asset Performance Metrics

are in various stages of operations and development.

Risk & Review Subject Maturity Scores

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

6.2 Long Term Objectives

In the 2020 SAMP, Transmission identified two primary long-term objectives. These continue to be primary objectives,

and together, they relate to all six IAM subject groups.

1. Risk based Planning & Prioritization (Group 1- Strategy and Planning, Group 2- Asset Management Decision

Making, Group 4- Asset Information, Group 6- Risk & Review)

2. Financial Effectiveness (Group 2- Asset Management Decision Making, Group 3- Life Cycle Delivery, Group 4-

Asset Information, Group 5- Organization & People, Group 6- Risk & Review)

Objective 1: Risk based Planning & Prioritization

Transmission continues to support the agency strategic plan, number 2a (Administer an industry leading asset

management program). Understanding and applying asset Criticality, Health & Risk (CHR) is the widely accepted best

practice for capital planning and prioritizing investments including maintenance. Transmission has continued to mature

this capability and a roadmap is presented in Figure 6.2-1). At its current maturity level, CHR is primarily applied in

decision making around a subset of sustain assets. The subset is based on assets currently in Cascade with the most

mature data. Ultimately, CHR will be an additional support tool to be used in prioritization decisions across expand and

sustain. This includes robust implementation of each of the three components: Criticality, Health, and Risk for each

program area (with any exceptions documented).

 Specific: Transmission will quantify asset criticality, health & risk.

 Measurable: Transmission will complete remaining logic sheets across identified impact dimensions, and will

complete scoring specific assets in Cascade based on these logic sheets.

 Achievable: Transmission has dedicated resources assigned to this priority.

 Relevant: Institute of Asset Management recognizes that understanding cost, performance and risk are the

fundamentals for effective business model and decision making. CHR is the adoption the IAM model and ISO-

31000 framework.

 Time bound: Transmission will complete the scoring by FY24.

Figure 6.2-1 CHR Roadmap

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Objective 2: Financial Effectiveness

Managing the lifecycle costs of federal assets is in direct alignment with the Agency strategic goals 1 & 2 (strengthening

financial health and modernizing assets and system operations). This is central to maintaining the long-term value and

reliability of the power and transmission systems. Transmission is continuing to expand its execution capability through

the Secondary Capacity Model (SCM) in order to support replacement of aging assets. Transmission is also embarking on

efforts to align asset information throughout the information lifecycle, so that decisions are based on current and

complete asset information data. This alignment would also allow Transmission to perform lifecycle costing. Figure 6.2-2

provides additional detail.

 Specific: Transmission is documenting/defining an asset hierarchy for all managed assets. The existing

processes/systems will be mapped, resulting in improvement recommendations toward asset information

alignment and lifecycle costing. Transmission will partner with Enterprise Architecture for these maturity efforts.

 Measurable: The asset hierarchy will be documented, and at least one identified gap toward lifecycle costing will

be addressed by the end of FY23. The remaining gaps will also be prioritized and scheduled and incorporated

into a maturity roadmap.

 Achievable: Transmission’s cross-functional Asset Management Governance Team (AMGT) is actively prioritizing

and resourcing these initiatives.

 Relevant: The IAM anatomy emphasizes the importance of asset data management in building an organization’s

asset management capability.

 Time bound: This will be complete by the end of FY23.

Figure 6.2-2 Asset Information Roadmap

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

6.3 Current Strategies and Initiatives

Transmission is currently implementing several current initiatives, across all IAM subject areas. The three featured below

are of primary importance and align with all of the IAM subject areas.

1. Criticality Health & Risk (Objective 1: Risk based Planning & Prioritization)

2. Secondary Capacity Model (Objective 2: Financial Effectiveness)

3. Asset Hierarchy (Objective 2: Financial Effectiveness)

Initiative 1: Criticality, Health & Risk (CHR)

BPA continues to develop capabilities to understand asset criticality, health and risks. Defensible and proven

methodologies and analytical methods will be developed, tested and adopted to inform prioritization of capital

investments. CHR can be applied to specific maintenance decisions as needed, but is not applied

comprehensively at this time. Maintenance prioritization is primarily based on compliance, safety, and customer

service factors, as well as manufacturer recommendations and time. CHR analytics can be included as a factor in

the decision making, but specific timelines will be evaluated as part of coordination work in developing the

roadmap details. Transparent, objective CHR information and risk quantification will enable Transmission

decision makers to optimize the utilization of financial and human resources to deliver best value for BPA and the

region. Transmission’s objective is for each asset program to have robust implementation of Criticality, Health,

and Risk at the asset level. Transmission recognizes the complexity of this and maturation will continue over

many years.

1. Continue towards completing all criticality dimension logic sheets and scoring

2. Continue asset information collection

3. Continue to develop the Asset Management metrics for consistent reporting to customers

Initiative 2: Secondary Capacity Model (Portfolio Delivery)

Transmission’s backlog of assets needing replacement is increasing. Specific amounts of backlog varies by program, but

for example, in the Subs AC program, it increased by over 3000 units in 2019, compared to a total asset population of

around 32,000. Clear visibility of asset information will support this capability development. Increasing execution

throughput requires a systematic approach that addresses multiple constraint dimensions impacting the asset lifecycle.

Currently Transmission is striving to an ultimate goal of creating available and flexible resource capacity to meet the

demand delivered from asset management lifecycle planning, system expansion planning, and customer system needs.

1. Continue to operationalize the Secondary Capacity Model to augment the Primary Capacity Model (current

model) that offers flexibility as demand fluctuates and as other capacity models expand and contract.

2. Continue to mature the Demand Planning and Work Scheduling capability to enable centralized resource

assignments and task tracking across the Transmission portfolio of projects. The aggregation of the information

from the Work Scheduling service will produce information for strategic resource planning.

The combination of these efforts are expected to drive efficiencies in current processes and practices in the Portfolio

Delivery Model while simultaneously seeking out additional resourcing options in order to deliver on the demands

provided by Portfolio Planning.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Initiative 3: Asset Hierarchy

Transmission is working to define an asset hierarchy for all managed programs. Certain Transmission programs have an

asset hierarchy defined but not documented, whereas other programs do not have a hierarchy defined at all. The Asset

Hierarchy effort will identify/document asset hierarchies specific to each program. Unique identifiers will also be

identified when possible. The asset hierarchy effort is currently being scoped but significant progress is expected in FY22.

Certain questions still being considered include whether to stage the effort, and to focus on certain assets before other

assets, or whether to structure the hierarchy to fit existing systems, or to be more general at this point in development.

The Asset Hierarchy is a foundational effort that will support future asset management systems and process

development. Ultimately, specific steps will include (as detailed in Figure 6.2-2):

1. Asset Hierarchy across all asset types

2. Asset Data and information; identify and define the technical, financial and other asset data required by the organization for

lifecycle costing

3. Asset information systems

4. Lifecycle costing

5. Asset Management decision making and value realization through implementation of the Transmission Portfolio

Optimization Tool (as described in more detail in section 10).

6.4 Resource Requirements

Transmission has leveraged additional contract options and resources to support the Portfolio Delivery Model, as part of

SCM (Secondary Capacity Model). Transmission has also recently stood up a standalone organization and hired additional

new resources to support Criticality, Health & Risk. Additional staff will continue to be required as part of continued

asset management maturity, for example, as part of standing up the Transmission Portfolio Optimization Tool. Financial

resource requirements are discussed in more detail in Sections 8 and 10.

7.0 ASSET CRITICALITY

7.1 Criteria

Transmission has adopted the ISO-31000 approach to managing risk. This incorporates the quantified health of an asset

and quantified impact to the business across five risk dimensions: Compliance, Environmental, Financial, Reliability, &

Safety. These five risk dimensions currently have equal weighting to one another. Transmission recognizes that part of

criticality is to be able to differentiate and prioritize investments based on an understanding of what is more critical or

less critical. Transmission will continue to mature the application of Criticality along with the maturation of other aspects

of CHR.

This is visualized by a 5x7 illustration of the aforementioned risk dimensions and the corresponding consequence impacts

on a scale of 1-7; where 1 = negligible and 7 = catastrophic. The scale applied to each consequence impact is the

criticality. The following figure provides the criteria for determining criticality based on these dimensions.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 7.1-1 Impact/Consequence Scale

The Impact/Consequence scale has been applied to specific dimensions of risk, to create logic sheets. These logic sheets

offer more detail on what would cause an asset/site to move between impact dimensions.

The following logic sheets have been completed, through partnership with the SME organizations responsible for each

risk dimensions:

 Compliance

 Environmental (Natural Resources/Pollution and Abatement)

 Reliability

 Safety

The following logic sheets remain to be completed:

 Environmental (Cultural)

 Financial

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 7.1-2 Asset Risk Dimensions

When logic sheets are completed, the assets are then scored based on the criteria depicted in the logic sheets. While the

compliance logic sheet has been completed, assets have not yet been scored for that dimension. Heat maps in section 9

are derived from the impact dimensions that have been scored.

In addition to the impact dimensions above, Criticality also is determined as it applies to specific program areas. For

example, individual asset managers may rank assets by criticality as it relates to objectives specified in their strategies.

This is documented extensively in Transmission’s 2017 strategy documentation, but some examples are included below.

Though these definitions can’t be easily aggregated and compared between programs, they do provide a very extensive

understanding of criticality and prioritization factors within program areas.

For System Protection Control (SPC), an example is below:

Figure 7.1-3 SPC Criticality

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Another example, for control center assets, follows.

Criticality

Low

Moderate

High

n/a

After-the-fact analysis systems

Systems that offer real-time grid visibility and control

Systems that exchange data with other

entities

Systems that enable cross-CC and/or utility

communications and data exchange

Lightning monitoring and Fault location

systems

Data Center infrastructure, like networks,

environment management and monitoring.

Training systems

Figure 7.1-4 Control Center Criticality

7.2 Usage of Criticality Model

In general, the Criticality score is incorporated into risk formula for final risk score:

    



 



RS = Risk Score of a risk statement

TEF = Triggered Event Frequency – Number of times a risk event occurs per year

= Conditional Probability that an outcome occurs given the risk event has occurred

CI = Consequence/Impact – Expected severity of impact for risk statement

Transmission continues to mature in applying criticality data in asset decision making. A dashboard was created in order

to support use of this data, and a screen shot is represented in figure 7.2-1. As it exists today, this is one input in

prioritization decisions for the assets included in Cascade. However, the capability will continue to mature so that more

risk dimensions are included, data is available for more assets, and data/report updates are more automated as part of

the implementation of the Transmission Portfolio Management Tool.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 7.2-1 Reliability Risk Heat Map

Figure 7.2-1 demonstrates the reliability criticality on the X axis and the Probability of failure (based on health

scores) on the Y axis. The circles on the graph represent planned bundles, with more bundles/more assets

being represented by larger bubbles. Smaller bubbles represent fewer numbers of assets and/or fewer

planned bundles.

Transmission is currently working on a comprehensive roadmap for the CHR capability, including criticality. At a high

level, this will include evaluating specific applicability by program, and documenting exceptions. CHR analytics support

asset replacement decision making by Transmission Asset Managers. While the capability is available today, it continues

to mature and be refined over time. Some of this refinement will relate to specific criticality scoring, such as to identify

primary impact dimensions that relate to the calculation of a risk score for a certain type of asset. CHR is not applied to

process development but those opportunities could be evaluated and incorporated in the future.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

8.0 CURRENT STATE

8.1 Historical Costs

Transmission’s historical costs along with the current approved rate case costs are depicted in the table below.

Table 8.1-1 Historical Spend

The below figures provide historical spend variations by program, between the years of 2019 and 2021. They also include

FY22 SOY and FY23 rate case projections. The primary variation in execution rates between expand, sustain, and PFIA

programs was that the volume of PFIA projects varied by year. Capital expenditures were lower in FY20, primarily due to

pandemic impacts, and increased again in FY21. Rate case projections for FY23 are included here for perspective of the

anticipated future ramp up over the next year.

The Other Expense asset sub-category covers support provided to facilitate the output of capital and maintenance

programs under the Transmission asset management asset category. This includes aircraft services, logistics services,

NERC/WECC compliance, environmental planning, enterprise services and other non-capitalizable business support

functions. The Transmission Other Expense asset sub-category does not include Non-Transmission asset categories that

are in other SAMPs such as Fleet, and Security.

Figure 8.1-2 Historical Expenditures: Capital and Expense

SOY Rate Case

FY17 FY18 FY19 FY20 FY21 FY22 FY23

Sustain 200,521$ 159,682$ 139,552$ 145,053$ 158,605$ 180,200$ 212,000$

Expand 70,149$ 71,595$ 84,617$ 61,684$ 100,116$ 81,900$ 115,000$

PFIA 5,197$ 32,907$ 57,201$ 15,626$ 10,916$ 15,000$ 50,000$

Total Capital 275,867$ 264,184$ 281,370$ 222,363$ 269,638$ 277,100$ 377,000$

Maintenance 133,121$ 132,140$ 136,732$ 131,733$ 138,263$ 142,073$ 144,084$

Other 88,425$ 84,705$ 85,927$ 94,389$ 105,300$ 107,167$ 108,248$

Total Expense 221,547$ 216,845$ 222,659$ 226,121$ 243,563$ 249,239$ 252,333$

Total

Transmission

497,414$ 481,029$ 504,029$ 448,485$ 513,202$ 526,339$ 629,333$

Capital & Expense

Sub-Categories

Historical Actual Spend

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 8.1-3 Historical Expenditures: Capital

Figure 8.1-4 Historical Expenditures, Asset Management Expense

Asset Management program spending has been relatively consistent over the past five years, including the proportion

spent on maintenance.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

8.2 Asset Condition and Trends

During the first quarter of FY19, Transmission published its first Health Policy that sets out a common methodology for

assessing the health of BPA’s Transmission assets by quantifying the overall process for assessing condition-based health.

It specifies the parameters, values and conditions to be used. This information enables long-term planning in replacement

and maintenance activities to obtain asset management maturity in alignment with the Institute of Asset Management

(IAM) framework, allowing optimized life-cycle decisions and risk to be quantified.

The Current Health Score for an individual asset is stored in Cascade and is most mature for substation assets. It is

derived from information relating to:

 The age of the asset;

 The Normal Expected Life for an asset of its type;

 Factors relating to aspects of the environment in which the asset is installed that may impact its Expected Life

(Location Factors);

 Factors relating to the usage of the asset at its specific location that may impact its Expected Life (Duty Factors);

 Factors relating to the observed condition of the asset (Observed Condition Inputs);

 Factors relating to the condition/health of the asset determined by measurements, tests or functional checks

(Measured Condition Inputs); and

 A factor relating to generic reliability issues associated with the individual make and type of an asset (Reliability

Modifier).

The calculation of Current Health Score is performed in two main steps:

 Calculation of an initial age-based Health Score (the Initial Health Score) using an age-based degradation model;

then

 Modification of the Initial Health Score using known condition information for the asset and a Reliability Modifier,

if appropriate.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 8.2-1, Asset Health

Figure 8.2-2 below is a snap shot of Transmission’s health scores for assets within the substation and steel structures &

wood poles for line assets. The decision was made to display asset health at the program level because this provides an

overview of Transmission assets and gives the reader a more holistic perspective regarding the number of assets being

managed, and the distribution of health scores. The health scores range between one and ten. Assets with a health

score closer to one indicates the assets are in good condition, whereas, assets nearing a score of ten may have a higher

likelihood of failing.

As mentioned above, the health score calculation includes age as a factor, but age is not the only factor. Figure 8.2-2

displays assets at the program level and provides an overview of the distribution of asset health by program. In the past,

age has been used as a proxy for health, but now age is considered as a factor within the methodology. This

methodology is still new for BPA and only applies to certain assets. Some assets such as strain-bus and pedestals do not

reside in structured asset information systems, this creates challenges in assessing asset condition due to the lack of

structured data.

As mentioned previously, this data is most mature for substation assets. The algorithms still require refinement for SPC,

PSC, and line assets and health scores may change as the capability continues to mature.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 8.2-2, Asset Condition by Health

Figure 8.2-2, Percent of Health by Program

Health is also discussed in Transmission’s 2017 strategy documentation and individual program understandings of health

is leveraged in program planning for all asset types. For example, in SPC, health is based on maintainability and

operability, and varies by asset type.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 8.2-3, SPC Health Demographics (subset of assets represented)

Though these type of demographics vary by program (and therefore can’t easily be aggregated to compare across

programs), they are highly useful in individual program decision making. Most programs use CHR data in combination

with other data specific to their program. For example, in the lines program, the initial CHR health score could be very

good, because today, the score is based primarily on the heath of the pole. However, the asset manager, based on their

expertise and other program data, also takes into account the health of the conductor and hardware, in order to

understand the health of the asset more comprehensively. Because Transmission’s system is so complex, typically one

substation or line contains assets of varying health scores. The asset managers include these factors in their decision

making and use the best analytics available to support their decisions.

8.3 Asset Performance

Asset health performance does exist for some assets but the granularity varies by asset type. The alternating current

Substation (Subs AC) program has the most granular level of performance data. However, for other assets (including

Subs AC), data exists in approximately 40 systems. Depending on the source system Transmission has limited usable

information. While standing up CHR as a cross-functional output for decision making, the agency is working towards best

practices for the management of asset information. By improving asset information governance, stewardship, and

system architecture, along with the initial operating capability for CHR, the corresponding outputs will be used in asset

analytics.

Currently, Transmission is developing several AM metrics and they are listed in section 10.1, Future Asset Performance as

well as below, in Table 8.3-1.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Table 8.3-1, Asset Management Metrics

Objective

Description

Portfolio risk score

(Reliability Score)

The Risk Score, based on the reliability impact dimension and calculated using the formula in

section 9. The Risk Score will be calculated by bundle and summed at the portfolio level.

High risk assets

replaced

(completed/planned)

A metric demonstrating the number of high risk assets replaced. The risk threshold would be

defined as to what constitutes ‘high risk’ and the metric would be available based on defined

impact dimensions.

Portfolio risk spend

efficiency

(completed/planned)

A calculation based on a bundle’s risk score and actual (or planned) execution cost, used to

demonstrate how much it is costing to reduce risk on the system.

Portfolio risk

reduction

(completed/planned)

A calculation based on the entire portfolio of work, and how much risk is being reduced as a

result of executing projects (based on the comparison of risk scores before the bundles are

complete).

Program risk

reduction

(completed/planned)

Similar to the ‘portfolio risk reduction’ except calculated on a program by program level.

Health score from 1

to 10, focus on assets

above an 8 lowered

(completed/planned)

Health scoring, as presented in figure 8.2-2

Transmission Services establishes and updates performance standards on an annual basis and reports trends through

informal dashboards distributed to all personnel and formal reports prepared for executive leadership. Transmission

currently tracks safety and outage metrics which can be found in the Transmission Quarterly Report. The following is a

summary of the measures tracked:

 Safety: Transmission tracks Recordable Injuries and reports on cause, Incident Frequency Rate (IFR) and Days

Away, Restrictions, and Transfers (DART)

 Financials: Rate Case revenues and expenses are compared to start of year, FY-to-date and end-of-year

forecast

 Reliability: Counts of unplanned outages by week and cumulative to date are trended against previous

performance and pre-defined warning limits

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

System Automatic Interruption Duration Index (SAIDI) / System Automatic Interruption Frequency Index

(SAIFI) Asset Investments: Transmission System Infrastructure key performance indicator (KPI) tracks and

projects capital spending on a single fiscal year basis

 Asset Replacements: Both the Transmission System Infrastructure Key Performance Indicator and the

programmatic Sustain business case tracks asset replacements in each sustain program.

 Compliance:

o Regulatory (FERC, NERC, WECC)

o Legal/financial

o Partnerships and New Technology

o Technology Innovation projects

o Commercial and other generation dispatch and load management arrangements

8.4 Performance and Practices Benchmarking

Transmission participates with a variety of peer utilities and organizations, in order to share knowledge, data, and

process development information. In the Asset Management space, benchmarking is informal and flexible based

on the specific issue. For example, Transmission might meet with a group of partner utilities to ask them about

what their processes or tools look like, in order to support addressing specific gaps or investment decisions.

Transmission is a member of several organizations that support information sharing, including:

 Electric Power Research Institute (EPRI)

 Centre for Energy Advancement through Technological Innovation (CEATI)

 North American Transmission Forum (NATF)

 International Wildfire Risk Mitigation Consortium (IWRMC)

Transmission has participated in member surveys on topics ranging from estimating to asset management

systems, to questions more specific to particular equipment. Results are confidential with controlled distribution,

and not available to be included in the SAMP.

9.0 RISK ASSESSMENT

BPA’s Transmission system includes many aging assets, and a key focus for BPA is to manage the associated asset risks.

With regard to asset condition and risk, Transmission evaluates the risk of asset failure and the associated reliability

impacts along with the replacement cost.

Transmission is also pursuing strategies to:

 Expand the use of condition based risk management across key asset categories

 Continue to develop and implement processes for capturing, registering, assessing and tracking asset related

risks

 Make risk informed investment and prioritization decisions across the asset lifecycle.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Transmission is working to mature the risk methodology and is developing a roadmap for the capability. The goal of the

methodology is to identify and reduce the likelihood or impact of failures to minimize disruption to customers and

maintain reliability. This roadmap will include developing all of the necessary terms and calculations, as well as any

system, process or tool enhancements that are needed. Transmission’s capability is based on Southern Cal Edison’s work,

and Transmission will be operationalizing the following equation:

    



 



RS = Risk Score of a risk statement

TEF = Triggered Event Frequency – Number of times a risk event occurs per year

= Conditional Probability that an outcome occurs given the risk event has occurred

CI = Consequence/Impact – Expected severity of impact for risk statement

Impact dimensions are applied to specific assets in Cascade for a subset of equipment types. Impact dimensions are

currently available in the system for:

Safety

Reliability

Environment (Natural Resources)

Environment (Pollution and Abatement)

In a mature future state, Transmission will represent heat mapping based on data, at the program level, so that

Transmission’s asset risk profile is presented at a high level by each impact dimension. In the current state, Transmission

leverages the Total Economic Cost (TEC) models to allocate funds between programs based on total economic cost.

Transmission will incorporate the TEC analytics into future AM systems and plans to ultimately retire the TEC models as

the Portfolio Optimization Tool is implemented. This transition is described in more detail in section 10.1.

Total economic cost is depicted in the figure below, and demonstrates what type of information is included in the

measure. Risk is primarily based on the Reliability and Financial perspectives in this framework, though other factors are

included in varying degrees as components of the cost data. For example, environmental impacts may be included in

‘emergency replacement cost’ impacts. Total economic cost modeling data does not support heat mapping, but it does

present various scenarios of funding levels by program and at the overall Transmission level. These scenarios are

evaluated and additional factors (for example, execution pace, other major projects/risks, etc) are incorporated into final

program distributions set as part of budget setting processes.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 9.1-1, Total Economic Cost Framework

Figure 9.1-2, SAMP Risk Assessment Considerations

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Transmission is developing the capability to assess risk across five impact dimensions: Reliability, Safety, Environment,

Compliance, and Reliability.

Reliability:

The Reliability dimension is understood in relation to outages resulting in customer interruption, load loss, and

curtailment of firm service. The substation assets are plotted in this dimension in Figure 9.1-3, and replacement

decisions are guided by reliability risk.

Figure 9.1-3, Substation Assets, Reliability Impact Dimension

Figure 9.1-3 plots substation assets and their health scores (Y axis) and Reliability impact dimension score (X

axis). Program decisions are made based on this data, and projects have been planned to address the 234

assets with health scores of 10 (worst condition) and Severe Impact.

The Reliability impact dimension is most mature in the sense that a prototype heat map was created in the

summer of 2021 that would apply to all programs. This heat map was first presented in section 7 and is also

provided in Figure 9.1-4 below. This heat map was a manual solution and was used to guide decision making

in the summer of 2021. The line in the upper right hand corner was the ‘risk tolerance’ and any projects that

fell above that line (based on the risk scoring methodology) would be prioritized for scoping. The dashboard is

currently being revisited in order to build a firm foundation for continued growth over the coming two years.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 9.1-4, Reliability Risk Heat Map

Figure 9.1-4 demonstrates the reliability criticality on the X axis and the Probability of failure (based on health

scores) on the Y axis. The circles on the graph represent planned bundles, with more bundles/more assets

being represented by larger bubbles. Smaller bubbles represent fewer numbers of assets and/or fewer

planned bundles.

Transmission programs have undergone significant risk assessment activities over the past 10 years. For

example, Figure 9.1-5 below demonstrates the current state (in 2013) as well as the Future State with/without

Program (2023). Risk in this figure is not specific to Reliability, but Reliability plays a large part in understanding

risk (in particular, outages resulting from asset failures).

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 9.1-5, Steel Program Risk Mapping (2013)

Figure 9.1-5 represents the assets/components shown in the legend, and what the effect of the program

execution would be on these populations of assets. Larger bubbles represent more assets, and the visuals

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

show the expected risk mitigation as a result of executing the steel line program, seen at the granular

asset/component level.

Safety:

Transmission understands Safety based on several factors: for example, asset proximity to navigable rivers

and/or highways, recreational facilities, and other location-based factors. Other considerations include failure

modes, such as asset explosions or fire risk. Safety impacts from outages are also considered- for example,

outages in wintery conditions. There is some inter-relatedness between the Reliability impact dimension and

the Safety impact dimension.

In the Steel program (represented in Figure 9.1-5 above), an example of a safety consideration would be

evaluating the risk of a component failure that leads to dropping the line. Safety is a primary consideration in

the Wildfire Mitigation Plan, which is described in depth in a separate external document. Transmission

commonly addresses Safety concerns as emergency projects, especially when the concern is discovered as part

of inspection/maintenance work.

Substation assets are represented in Figure 9.1-6 based on Cascade Health Data as well as Safety impact

dimension scoring.

Figure 9.1-6, Substation Assets, Safety Impact Dimension

Figure 9.1-6 represents substation assets, plotted against health score (Y axis) and Safety Impact Dimension

score. There are no assets with a Catastrophic Safety Risk, and the assets with ‘Severe’ impact are made visible

and incorporated into substation program planning.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Many assets across Transmission have clear links to Safety. For example, as part of the

PSC/Telecommunications Program, telephone systems are replaced. Telephone System replacements (Figure

9.1-7) are related to safety because they are critical to daily operation and maintenance activities, and to the

ability to communicate across the system even when cell phone service is not available.

Figure 9.1-7, Telephone Systems

Environment:

Environmental factors are represented for substation assets in the below figures (9.1-8 and 9.1-9, specific to

the natural resources dimension and to the pollution and abatement dimension. Examples of factors

considered in the natural resources dimension include proximity to wetlands, the impact size of the site,

impacts to fish, wildlife, and plants, and wildfire risk. For pollution and abatement, considerations include oil

spills, proximity to water, lead cables, toxic waste, and PCBs. Examples of projects driven by this dimension

would be replacing breakers with PCBs, or adding oil containment around certain substation equipment.

Figure 9.1-8, Substation Assets, Natural Resources Dimension

Figure 9.1-8 represents substation assets, plotted against health score (Y axis) and Natural Resources Impact

Dimension score. There are no assets with a Catastrophic Natural Resources Risk, and the assets with ‘Severe’

impact are made visible and incorporated into substation program planning.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 9.1-9, Substation Assets, Pollution and Abatement Dimension

Figure 9.1-9 represents substation assets, plotted against health score (Y axis) and Pollution and Abatement

Impact Dimension score. There are no assets with a Catastrophic Pollution and Abatement Risk, and the assets

with ‘Severe’ impact are made visible and incorporated into program planning.

Compliance:

A logic sheet has been developed for Compliance, but impact dimensions have not yet been applied to individual

equipment in Cascade.

In the Compliance impact dimension, Transmission considers the following primary NERC/WECC compliance standards

and qualitatively evaluates projects by standard, listed below:

o Remedial Action Directive- risk that asset failure would result in a Remedial Asset Directive, or would be

associated with a previously issued Remedial Action Directive

o FAC-501-WECC-1- Asset failure is on a WECC path

o PRC-005- Asset failure from PRC-005 asset type list

o FAC-003- Asset failure would result in impairment to FAC-003 Clearance Requirements

o CIP-06/14- Asset failure was a result from failure to properly meet physical security physical security

requirements

o TPL-001- Establish Transmission system planning performance requirements within the planning horizon

to develop a Bulk Electric System (BES) that will operate reliably over a broad spectrum of System

conditions and following a wide range of probable Contingencies. Asset failure is a result of equipment

not properly applied within its capabilities or ratings.

o EOP-008- Asset failure is a result of lack of redundancy from system controllers

o FAC-008- Asset failure is a result of improper rating methodology inducing over capacity failure mode.

This may result in a curtailment and/or de-rate.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Financial:

The financial impact logic sheet has not yet been completed.

Because the Financial logic sheet has not yet been developed, the qualitative discussion of the Financial impact

dimension will evolve over time. However, in the current state, Transmission considers the following when evaluating a

proposed project from the Financial Impact Dimension:

*Whether the investment is likely to result in additional revenues

*Whether the investment has an effect on maintenance or future replacement costs

*Whether the investment minimizes the risk of an outage that would impact service to customers or cause a

system de-rate

Transmission also incorporates the Financial impact into portfolio planning, such as by ramping up the sustain program

over time to mitigate future rate impacts due to high rates of asset failures or other impacts.

10.0 STRATEGY AND FUTURE STATE

Transmission Asset Management continues to mature and is currently working to define detailed roadmaps for this next

phase of maturity. At a high level, the strategic direction entails continuing to mature the CHR capability, improving data

integration throughout the asset lifecycle, and being able to use this data to optimize the portfolio of work. Transmission

also continues to work toward replacing the highest risk assets on the system, as measured with CHR, Total Economic

Cost (TEC), and other methodologies specific to a given asset program. Figure 10.0-1 demonstrates this over time. The

Transmission Portfolio Optimization tool (TPOT) is planned to begin in 2024 and be implemented in 2027, though that

timeline is heavily dependent on available IT resources and budget. The tool will incorporate Transmission’s existing

analytical capabilities, allow Transmission to create and evaluate various portfolio alternatives, streamline several asset

inform systems, and optimized base on different constraints, risks, and benefits. Transmission’s CHR and TEC capabilities

will continue to be matured and leveraged as part of decision making in the meantime, and will both be integrated as

needed into requirements for TPOT.

Figure 10.0-1: Asset Management Investment Decision Making Criteria and Tools

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

10.1 Future State Asset Performance

In the 2020 SAMP, Transmission proposed the concept of Asset Management metrics related to Reliability Strength. In

the years since, Transmission has continued to develop potential metrics and is working toward reporting and tracking six

scores over the coming years. At this time, the AM metrics are in development and, as a result, Transmission has not

applied this to the portfolio. The metrics in development are included in Table 10.1-1 and leverage Transmission’s CHR

capability. The metrics will mature along with CHR over the coming years and become automated for more consistent

and reliability reporting for future customer meetings.

Table 10.1-1, Future Asset Management Metrics

Objective

Description

Portfolio risk score

(Reliability Score)

The Risk Score, based on the reliability impact dimension and calculated using the formula in

section 9. The Risk Score will be calculated by bundle and summed at the portfolio level.

High risk assets

replaced

(completed/planned)

A metric demonstrating the number of high risk assets replaced. The risk threshold would be

defined as to what constitutes ‘high risk’ and the metric would be available based on defined

impact dimensions.

Portfolio risk spend

efficiency

(completed/planned)

A calculation based on a bundle’s risk score and actual (or planned) execution cost, used to

demonstrate how much it is costing to reduce risk on the system.

Portfolio risk

reduction

(completed/planned)

A calculation based on the entire portfolio of work, and how much risk is being reduced as a

result of executing projects (based on the comparison of risk scores before the bundles are

complete).

Program risk

reduction

(completed/planned)

Similar to the ‘portfolio risk reduction’ except calculated on a program by program level.

Health score from 1

to 10, focus on assets

above an 8 lowered

(completed/planned)

Health scoring, as presented in figure 8.2-2

Transmission continues to report on asset performance as it relates to SAIDI/SAIFI while also managing a comprehensive

preventative maintenance program. Asset performance decisions will be based upon Health Scoring and SME feedback

for individual projects, as well as other related data and reporting information. As Transmission matures, asset

management metrics will be set reflecting that maturity.

10.2 Strategy

The Transmission Asset Strategy Integration (TASI) initiative completed in FY2016 after six years of development resulted

in a cohesive asset strategy that is risk informed and focuses on reducing total economic cost across the BPA

Transmission sustain asset program areas.

These strategies comprise the foundation of the sustain asset management program and focus on optimizing

replacement plans, but also include, high value efficiency improvements to fully realize and create value for Transmission

and its customers over the long-term.

The sustain strategies further support the replacement plan modelling capabilities (ie. The TEC models) as well as

Criticality, Health and Risk analytics.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

10.2.1 Sustainment Strategy

Over the past few years, Transmission Services has been maturing its asset management program with a goal of

sustaining its existing assets to meet reliability and availability targets at optimal lifecycle costs. Long-term asset

strategies and asset plans have been developed for:



 Alternating and direct current substations

 Control centers

 Power system control/telecommunications

 System protection and control

 Rights-of-way

 Wood lines

 Steel lines

Sustainment planning is asset driven and considers the condition of the assets and the demands placed upon them. Each

of the program strategies contains a representation of asset health and risk of failure to the system along with a strategy

for mitigating any associated risks. The strategies provide the direction for addressing the most critical assets first while a

corresponding plan has been developed to implement risks mitigation, slow down or eliminate capital replacement

backlogs, and reach optimal lifecycle management.

AC Substations

The AC Substations program has developed a risk-informed asset management strategic approach where

substation assets are planned for replacement based on reducing total economic cost. This strategy includes a

quantification of not only risks to BPA, but to BPA’s customers as well. Currently, the ‘steady state’ replacement

pace has not yet been reached, hence the ramp up in capital dollars depicted in table 10.3.

Key risks to be addressed

 Risks to system reliability

 Increasing equipment failure rates due to aged equipment

 Functional obsolescence - Equipment impacted by system expansion and load growth

 Technology obsolescence – Equipment no longer available, spare parts, long lead time and/or cost,

vendor product support

Strategy Elements

Modeling and analyzing equipment replacement on a total economic cost basis revealed there is a large backlog

of equipment beyond its economic lifecycle. By strategically addressing the backlog, it will require the

implementation of the following:

 Replacement plans that address backlog based on economic lifecycle and effective age

 Using readily available data to assist in repair/replace decisions

 Process improvements aimed to better coordinate replacements between programs to gain efficiencies

and reduce outages

 Develop and implement predictive analysis to identify trouble equipment using readily available

information.

 Improve work related processes and coordination

 Strategic placement of on-site spares for transformers and reactors

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

HVDC and FACTS

Replace and upgrade components and systems as required for High Voltage Current (HVDC). Flexible Alternating

Current Transmission (FACTS) assets at the highest risk of failure or obsolescence.

Key risk to be addressed

 Risks to system reliability

 Cyber Security Compliance

 Inadequate vendor support

 Spare parts availability, long lead times and/or cost

 Obsolete systems

 Work force availability

Strategy Elements

 Continue to replace and upgrade unserviceable and obsolete systems and components within BPA's fleet of

Series Capacitors, Static VAR Compensators and the Celilo HVDC Converter Station.

 Special emphasis on adjusting Subs DC Program goals with consideration to NERC-CIP requirements and the

rapidly changing environment of high speed, microprocessor-based control systems

Control centers

The strategies to improve control center asset performance are focused on addressing critical asset risks first, as

well as high risk asset issues before they reach critical stage.

Key risk to be addressed

 Risks to system reliability and flexibility

 Wide range of evolving operational, regional market, industry, regulatory, and security related

requirements

Strategy Elements

 Complete Asset Service Lifecycle Plans for every system and update them at least annually. Ensure

integration of the Program Asset Plan priorities management and Project Portfolio Management

processes.

 Server and workstation lifecycle standards support determining system upgrade planning and risk

methods. Other CC equipment lifecycle standards will be developed and incorporated into systems

lifecycle planning.

 Complete Windows Migrations efforts for remaining OpenVMS systems

 Develop and support a CC Data Management Program and Strategy

 Develop business architecture and strategic “line of sight” to CC assets

 Develop visibility, tools, and processes to support more complete and proactive Demand & Capacity

Management in the CC

 Strategically plan for CC asset information management improvements

 Establish plans for appropriately dedicating CC technology and architecture planning functions or roles

 Develop a cyber-security and risk management strategy towards evolving the current practices for system

visibility, risk assessment, decision making and compliance response

In the long run, this strategy will help:

 Ensure replacement or maintenance actions result in no assets assessed as Critical Risk Level of failure,

obsolescence, or noncompliance

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

 Critical systems meet their respective availability targets.

 Provide redundancy and deployment of the most important systems in a geographically diverse manner

to help ensure continuity of operations in the event of loss of a control center.

Power System Control/Telecommunications

The Power System Control (PSC) assets are critical control components for the transmission system. The

program is highly driven by emerging technologies and regulatory compliance and must be positioned to

respond to changes. Much of the equipment has a short lifecycle due to its technology type and external

forces often drive the availability of spare parts and continued support from the manufacturer.

Key risks to be addressed

 Unplanned equipment replacements due to failures

 Outage risks and high economic costs due to equipment failure

 Technology interoperability issues

 Technology obsolescence and evolution

 Lack of manufacturer support

 Changing power system operations needs and evolving regulatory requirements

Strategy Elements

By using the total economic cost analytical approach, this strategy reflects the identification of a replacement

plan that provides the greatest opportunity to reduce risks and therefore cost to BPA and its customers. This

drives the development of a strategy that includes:

 Focus on replacing critical, at-risk equipment first

 Less critical and risky equipment is allowed to run to failure

 Accumulated backlog of replacements is planned based on economic lifecycle

 Preparation for future technology

 Work process improvements

o More robust testing

o Documentation clean up and management

o Enhanced training

o Coordination with SPC program for replacements

Rights-of-Way (Access Roads, Vegetation Management, Land Rights)

Key risks to be addressed

 Wildfire risk due to vegetation, rights of way widths, and access roads.

 Safe access for operation, maintenance, and capital work.

 Safe and adequate access for heavy equipment required for maintenance and capital build activities.

 Manage vegetation to maintain needed clearance for lines.

 Safe access for emergency work.

Strategy Elements

 Integrated vegetative management approach- a system of managing plant communities whereby

managers set objectives, identify compatible and incompatible vegetation, consider action

thresholds, and evaluate, select, and implement the most appropriate control methods to

achieve set objectives.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

 The Access Road program is working on a maintenance program to look at the road system

holistically to help save money and provide a safer road system. Currently, maintaining roads

(expense) is about one-third the cost compared to rebuilding roads (capital). Transitioning

from capital to expense will take several years and require an initial increase in capital

expenditures to bring the roads up to current standards, after which the capital budget will

decrease. The maintenance program budget will need to increase over time as the program

shifts from rebuilding to maintaining the roads.

 Ensure right- of-ways are safely and legally accessible to transmission paths and remote sites, and

meet environmental regulations.

 Ensure BPA is compliant with all regulatory authorities.

 Ensures/supports BPA’s relationship with landowners and other agencies through pro-active

engagement and partnership.

System Protection and Control

Replace specific populations of equipment groups that are at highest risk of failure or technological

obsolescence.

Key risks to be addressed

 Lack of Original Equipment Manufacturer (OEM) support for most SPC equipment due to advanced

age

 Risks associated with poor health condition of older SPC equipment

 Decreasing skill set to maintain older equipment as SPC employees retire

 Increased corrective maintenance workload to maintain older equipment in poor health

 Increase in higher cost emergency repairs

Strategy Elements

The SPC strategy and implementation plan were developed using a risk-informed evaluation of strategic

alternatives with a goal towards reducing total economic costs. This strategy includes:

 Targeting replacement of high-risk high-economic-cost protective relays

 Replace older DFRs then subsequently managing units on a 15-18 year lifecycle

 Actively coordinate with PSC program to replace all Beta SERs with SER/SCADA standard

 Replace majority of at-risk revenue and interchange meters over the next 10 years

 Control & Indication - develop a lower cost mini console replacement and begin replacing old units

Steel Lines

The strategy includes an initiative-taking plan to replace vital overhead system components nearing end-of-

life. It sets standard metrics for collecting and retaining asset condition data with enough granularity to

identify condition trends, target, and pace replacement efforts, manage components over time and better

predict remaining service life.

Key risks to be addressed

 Condition of transmission line equipment

o Component criticality to line performance

o Aging related characteristics

o Concerns for obsolescence

o Sub-component connectivity

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

o Load impacted/load loss

o Wildfire mitigation

Strategy Elements

 Spacer dampers replaced 2008-2015

 Insulator replacements planned through FY26

 2.5” re-conductor projects planned through FY31

Additions to the plan are spurred by:

 TLM reports via Cascade or Foreman determination of new or worsening problem conditions often

lead to high-priority work. Primary examples are:

o Tower damage

o Insulator pin corrosion

o Failing compression fittings

o Failed marker balls

 Equipment Age and Obsolescence

o Much of the program is driven by active-component age. We have 80-year-old equipment

still in service.

o Copper conductor is still in service and is replaced at opportune times. While it can still be

serviceable, because it’s obsolete, fittings aren’t available and emergency restoration

requires either a re-conductor or a non-standard repair.

 Standards drive additional scope - When we’re working on a line, we may add scope to standardize

equipment

 Compliance – Impairment mitigation is additional unplanned work that adds into the schedule and

cost on most steel sustain projects. Impairment discovery has become the norm, and will be added

to the plan and budget for future work.

o Prioritization:

 SME concerns – SMEs inform the prioritization of all equipment replacement, impairment mitigation

 CHR is fed by TLM and Cascade, Age, Obsolescence, Standards and SME concerns

 WMP adds information about ignition probability and fuel load. In problem areas this will heighten

the priority of work that might wait otherwise.

Wood Lines

The strategy focuses on shifting from individual components of the line, such as wood poles, to an asset life

cycle strategy that combines life extension replacement of all the aged components on the structure and

systematic replacement of aged, poorly performing wood pole lines.

Key risks to be addressed

 Condition of transmission line equipment

o Component criticality to line performance

o Aging related characteristics

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

o Concerns for obsolescence

o Sub-component connectivity

o Load impacted/load loss

 Wildfire mitigation

 Impairment mitigation

Strategy Elements

 Transmission Line Rebuild

 Copper conductor replacement

 Yearly Priority Pole replacement

 Impairment mitigation

The Wood Lines Sustain Program uses a combination of SME input, data driven reporting, and CHR analysis to

prioritize how to address the most important maintenance and replacement work with the limited resources

available to the program. Regular collaboration between engineering and transmission line maintenance

subject matter experts informs initial decision making on how to focus efforts and begin prioritizing

work. Working prioritization lists are developed with both groups of SMEs covering perceived performance,

future concerns, and design functionality. Future prioritized work from this process includes obsolete

conductor designs, identified line impairments, and maximizing wood line rebuild performance versus a

yearly wood pole inspection replacement program.

Data reporting further refines prioritization work within the Wood Lines Sustain Program. Historical outage

reporting helps identify the worst performing wood pole lines and the Total Economic Cost models forecast

helps direct the most efficient rate of expense. The Total Economic Cost models primarily consist of

information gathered from separate databases such as TLDD and Cascade. Total Economic Cost outage risk

over time on equipment is based on age and specific equipment failure curves. Examples of future work

prioritized with this information includes line rebuilds, re-conductors, and priority pole replacements.

Finally, CHR data and analysis is utilized with careful consideration of all other available information such as

SME input and data reporting. CHR data and analysis is a powerful evaluation tool with several key data

factors available for raw evaluation, but prioritization methods must consider a thorough understanding of

the maturity of the calculated data. Much of the component health information for the wood lines

transmission system is not yet implemented into the CHR database leading to unreliable health information

for complete assemblies. Also, complete CHR analysis of value provided by unique line projects is not yet an

automated process and consumes a large amount of man-hours with each request. Wildfire mitigation has

developed into a primary focus for the Wood Lines Sustain Program due to the utilization of CHR information

As asset management matures using CHR and, a portfolio optimization tool, the various programs

methodologies for assessing asset health and risk will all follow the same architecture. Thus, allowing for a

systematic approach, using best practices, to compare the assets and programs.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Line Ratings - Impairments to Wood and Steel Lines

With the improving accuracy and density of Lidar data for transmission lines, we are finding many

conductor clearance impairments across the system on both Wood and Steel lines. These impairments present a

safety risk to the public and a reliability risk to the transmission system. A dedicated Line Ratings group examines

each line involved in a Sustain Project to identify any impairment mitigation that should be included in the

project scope. Line ratings are addressed separately from the Wood and Steel programs to maintain visibility and

ensure that budget is available both for Line Ratings and for Steel and Wood lines.

Aircraft

BPA’s aircraft fleet are used to transport equipment, inspect asset conditions, support vegetation

management and wildfire mitigation efforts, enable/support project work, and support BES and communications

system restoration. Aircraft are strategically located throughout the system with service focused on ensuring

system reliability and resiliency.

The Aircraft program works BPA Aircraft Services, GSA, and DOE OAM to provide optimized fleet configuration

and recaptilization, in support of the Aircraft Services mission.

Tools and Test Equipment Acquisition Process (TEAP)

TEAP Tool program is responsible to ensure BPA keeps up to date with the latest tools, instruments, and

test equipment for mainly transmission and supply chain organizations. Many times test equipment is only

supported by the manufacturer for certain period and causes BPA to keep updating. The majority of this

equipment is used to gather readings and run test on the transmission system ensuring reliability and keeping

BPA in compliance. This equipment is not managed by one organization similar to other programs, but is

managed and operated by the end user. Request for replacement come in to the TEAP tool program on a as

needed basis. A majority this equipment is “off the shelf” item resulting in a high degree of certainty on project

completion dates.

Operations & Maintenance Strategy

Transmission continues to align its replacement and maintenance work streams by utilizing processes and

analytics to converge an integrated best value strategy at all levels of the organization. Independent of resource

constraints, some investment activities that would mitigate risk and realize significant value for Transmission

because of pursuing the activity, could be halted, or postponed due to the required financial treatment of the

activity. Sometimes this is a result of it being an unanticipated expenditure or the available budget has already

been consumed and/or committed. It is important to ensure financial mechanisms such as IPR align to business

strategies that incorporate cost, performance, and risk for all Transmission assets.

Current state is interval-based maintenance with correctives initiated by internal standards and guides to drive a

maintenance action. The future vision is based on more efficient gathering and use of maintenance data and

equipment reliability estimations to inform risk based planning processes.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

10.2.2 Growth (Expand) Strategy

BPA develops long-term system expansion and reinforcement plans for the transmission system. These plans are based

on a comprehensive system assessment, examination of current transmission service and interconnection requests. The

plans are updated each calendar year based on the latest assessment of system needs.

For the latest System Assessment, BPA’s transmission system was divided into twenty-seven load service areas. Each area

is assessed under the limiting system conditions for that area. Each area is then analyzed in order to identify any potential

performance deficiencies and determine possible corrective action plans or confirm existing corrective action plans and

timing to meet applicable standards and criteria and ensure system reliability and cost-effectiveness. BPA also assesses

the performance of the fourteen paths (Figure 10.2.2-1) and four interties (Figure 10.2.2-2) over the Planning Horizon.

This includes an evaluation of the total transfer capability (TTC) of the path or intertie. The evaluation confirms that the

TTC is sufficient to meet existing obligations over the Planning Horizon or identifies any potential corrective action plans

necessary to meet the applicable standards and criteria to ensure system reliability.

Figure 10.2.2-1, Transmission Paths

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 10.2.2-2, Transmission Interties

The studies conducted for each load area and path includes steady state, voltage stability, and transient stability studies.

Short circuit analysis is also conducted annually as part of BPA’s Switchgear Replacement Program. Transmission also

includes analysis of potential non-wires alternative solutions for areas where potential projects are identified.

The BPA transmission system is planned to meet applicable NERC Transmission System Planning Performance

Requirements in Standard TPL-001-4. System tests and the required performance for those tests are established in the

TPL-001-4 Standard.

The planning process, methodology and results are available in the Transmission Plan, published in December 2021 and

located on BPA website at Transmission Plan.

Recently, Transmission has seen a significant jump in generation interconnection requests. This increase is driven largely

by states’ renewable portfolios which have progressively required more carbon-free, renewable generation like solar and

wind. For example, the state of Washington’s renewable portfolio standard (RPS) required 25% of its power generation

be from renewable sources by 2020, and to be 100% carbon neutral by 2030. Similarly, Oregon’s RPS for 2020 was set to

20% of all generation, increasing to 27% by 2025. The state recently passed a requirement for 100% renewable resources

by 2040. These increasing renewable requirements are creating a high demand for new renewable generating resources

which will need transmission service. Developers are putting more and more projects in BPA’s interconnection and

transmission queues in anticipation of getting a power purchase agreement from an IOU or a public utility to help meet

the increase in renewable requirements. Although some projects will be able to use existing, or redirected transmission

rights, others will need new transmission rights. Transmission’s PFIA program is expected to increase in order to support

these projects, and that increase is reflected in section 10.3.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

10.2.3 Strategy for Managing Technological Change and Resiliency

Resiliency

Transmission continues to integrate resiliency into the AM strategy and program. One example of this significant work is

the Wildfire Mitigation Program and Plan. Transmission is working to mature its capability through acquisition of

modeling tool(s) and fire scientist resources. This resiliency work directly supports the capital projects planned as well as

potential responses to and preparation for fire season.

In addition, Transmission is developing a proposal for a dedicated access road maintenance program that looks at the

road system holistically to provide timely access to the system, protect the environment and provide safer conditions for

everyone on the road system.

Transmission continues to prepare for a potential seismic event by integrating seismic considerations into existing design

processes and capital projects.

Cyber Security

Cyber security is included in the framework for managing current and future state models for Transmission Information

and Operational technology systems and related assets. This maximizes the value throughout the stages of its lifecycle

and aligns with the organization’s strategic direction.

Federal Information Security Management Act (FISMA) and North American Electric Reliability Corporation (NERC) Critical

Infrastructure Protection (CIP) regulations provide a framework for cyber security and resiliency through adherence to

policies and internal controls, and provide assignment of responsibility. This framework and supporting management

structure and processes provide assurance that cybersecurity strategies align and support business objectives.

These frameworks provide standardized controls and common processes, principles, and management tools that assist in

the implementation of security solutions which align with the organization’s strategic direction

This implementation, with oversight and review by BPA Office of Cyber Security (OCS) and CIP compliance Reliability

Standard Owners (RSO), is vital to identify, protect, detect, respond, and recover from threats and current and emerging

cyber security risks such as network intrusion, ransomware attacks, malware exploits, and advanced persistent threat

(APT), etc.

10.3 Planned Future Investments/Spend Levels

Transmission’s future spending needs are represented in Table 10.3-1 for expand, sustain, PFIA and O&M. The level of

granularity supports identifying trends in the different program areas at a strategic level. The table represents a ramp up

to support the sustain program and PFIA (Projects Funded in Advance) program demands and requirements.

Transmission has identified the need to ramp up the sustain program to mitigate risks to the system posed by an aging

asset population. The SAMP excludes impacts to specific programs; however, the Asset Plan will supply more detail.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Table 10.3-1 Future Expenditures (in thousands)

Table 10.3-2 Midpoint for Future Capital Expenditures used in BP-24 IPR and rate case processes (in thousands)

This SAMP is based on Transmission’s future spending needs as shown in Table 10.3-1 above and Figure 10.3-2a below

represents the current need for future Capital expenditures and our goal for execution. To accommodate for risks and

uncertainties around execution, BPA used a midpoint for projected future Capital Expenditures shown in Table 10.3-2

above for BP-24 IPR and rate case processes only. Transmission faces uncertainty in critical areas of resourcing, material

availability, and supply chain factors that may affect execution. Transmission is developing and has mitigations in place

for several identified industry risks at this time.

Figure 10.3-1 below represents the current need for asset management capital (blue- includes sustain, expand, PFIA) and

expense (orange). Figure 10.3-2a represents the current need for asset management capital. Figure 10.3-3 O&M Expense

dollars match the BP-22 IPR process for FY24 to FY31. An increase for FY32 and FY33 O&M Expense was extrapolated

based on the data from FY24 through FY31, (1.8% and 1.7%, respectively). The Other Expense asset sub-category covers

support provided to facilitate the output of capital and maintenance programs under the Transmission asset

management asset category. This includes aircraft services, logistics services, NERC/WECC compliance, environmental

planning, enterprise services and other non-capitalizable business support functions. The Transmission Other Expense

asset sub-category does not include Non-Transmission asset categories that are in other SAMPs such as Fleet, and

Security.

$ in Thousands

Capital

Sub-Categories FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033

Sustain 243,900 245,700 254,700 259,200 263,588 254,700 260,100 258,975 261,900 267,300

Expand 100,800 100,800 100,800 100,800 99,788 98,775 96,750 94,725 92,700 88,407

PFIA 37,800 45,000 45,000 45,000 45,000 45,000 45,000 31,275 29,700 28,215

Transmission Total 382,500 391,500 400,500 405,000 408,375 398,475 401,850 384,975 384,300 383,922

Transmission Midpoint for IPR/BP-24

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Expense and capital future expenditures will be refined as part of the BP-24 process.

Figure 10.3-1, Capital and Expense Future Spend

Figure 10.3-2a, Capital Future Spend

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 10.3-3, Asset Management Expense Future Spend

At a high level, the following trends can be seen:

 Ramping up the sustain program, including supporting the Vancouver Control Center as part of the PSC program

spending, demonstrates Transmission’s emphasis on managing aging assets.

 Increased PFIA program spending demonstrates support of state Renewables Portfolio Standards and

responsiveness to customer interconnection requests.

 Expense spending (Figure 10.3-3) based on funding levels prepared in the previous IPR cycle and will be revisited

in the upcoming FY24/25 IPR cycle.

10.4 Implementation Risks

Transmission has identified the following implementation risks for executing on the SAMP/AP, from the following

perspectives: investment strategies and maturity initiatives.

Table 10.4-1, Implementation Risks

Risk

Impact

Mitigation Plan

Constraints

Retirements, labor

shortages, and other

staffing changes

Additional time may be

needed to execute aspects of

strategies/maturity initiatives

as new employees are trained

Transmission identifies priority positions that must

be backfilled, and works to cross train existing

employees so that expertise is held more broadly

when possible.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Constrained labor and

material execution

resources, and global

supply chain impacts

Cost escalations. Delayed and

deferred projects impact

system risk and impact

strategic planning when

replacement pace is not clear

The Secondary Capacity delivery program has been

implemented, to provide additional capacity within

execution. The Supply Chain organization is

working to mitigate material impacts by procuring

additional materials and keeping them in

inventory. Develop contracting strategies that

allow earlier material procurement efforts for long-

lead time items. The Asset Management program is

currently working on foundational maturity efforts

that will also improve line of sight in the coming

years.

Constrained outages,

constrained budgets,

and inflation rates.

Constrained outages and

budgets lead to reduced

program execution levels, or

to delays in execution.

Transmission leads detailed outage planning and

budget planning activities. Transmission is an active

participant in internal and external efforts related

to managing outage and budget constraints. Stage

gates process supports cost escalation transparency

and adjustments to overall portfolio.

Complexity

Program complexity

leads to delays or

confusion in strategy

direction and

implementation

Delays or confusion result in

slower progress in executing

the asset management

program improvements and

strategy work

Transmission has assigned dedicated resources to

strategy development work, and has implemented

cross functional leadership teams to ensure all

requirements are captured, and that complexity is

managed. Develop contracting strategies for

specific needs such as environmental and cultural

work. Develop more contracting options.

Unknowns

Unknown regional or

global impacts

Transmission has been

strengthening its resiliency so

that it can adapt in case of

unknowns

Transmission builds resiliency into its system and

programming decisions, but certain unknowns are

unanticipated. In the case of weather events and

pandemic impacts, Transmission teams are

responding in a coordinated and collaborative way.

Wildfire risk

Transmission is impacted by

more frequent/severe

wildfires in the region

Transmission continues to actively mature its

Wildfire Mitigation Plan, including supporting

processes, tools, and expertise.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

10.5 Asset Conditions and Trends

Future projections of average asset age in time is not yet understood due to the volatility of capital replacement pacing

and understanding maintenance refurbishment and how that influences the effective age and health in the future.

Premature projections of average asset condition in time have the potential for unsubstantiated focus on the lowest

sensitivity indicator for understanding asset performance (age). Transmission continues to refine asset health to a

maturity where observed and measured condition project into futuristic probabilistic risk profiles that has direct ties back

to the asset register and maintenance management system to track how those maintenance refurbishments influence

the health.

The operations and maintenance strategy described in 10.2 will remain unchanged in the next IPR cycle where status quo

criteria for prioritization of maintenance and accumulation of net backlog rate will be the only indicators of the future. As

previously mentioned, Transmission will continue to evaluate and mature capabilities related to maintenance

optimization. CHR is leveraged in these analytics on an as needed basis but not holistically incorporated at this time.

Though Transmission has not implemented the capability to progress the health of a given asset based on all the

components of the asset health value, Transmission does incorporate age-based information to understand asset

population trends. Figure 10.5-1 represents current Transmission substation assets and provides a view of the current

replacement backlog based on Normal Expected Life. The Normal Expected Life defined as: The time (in years) in an

assets life when it would be expected to first observe significant deterioration (Health Score 5.5) based on consideration

of the asset type alone.

Figure 10.5-1 Normal Expected Life, Substation Assets

Transmission’s Total Economic Cost capability does incorporate asset population age as part of the scenario planning for

replacement pacing. This along with more specific data by program, incorporated into the sustain ramp up projections

presented in section 10.3.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

10.6 Performance and Risk Impact

As mentioned in earlier sections, Transmission does incorporate age, specific program impact, and total economic cost

modeling results in projecting future risk based on investment level. However, Transmission is working on developing

future health scoring algorithms.

For example, in previous strategy efforts, the SPC program developed two risk maps to represent current and future state

risk, based on implementation of a ramped up SPC replacement program. To date, the SPC program is not ramped up to

required levels, but the projected financial values in 10.3 do represent increased budget levels to support future SPC

ramp up efforts.

Figure 10.6-1 SPC Current State Risk Map

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Figure 10.6-2 SPC Future State Risk Map (represents 15 years of ramped up replacement pacing)

The Total Economic Cost methodology provides further support to understanding anticipated impacts of a given

replacement pace. The TEC approach to forecasting risk over time is by incorporating outage trends, specific equipment

failure trends, and equipment age. Transmission’s assets are aging, and outage risk is modeled to increase based on this

understanding. However, the outage risk impacts can be mitigated by focusing replacement decisions on the equipment

or equipment components that pose the highest system risk. This analysis is part of the work that individual asset

managers do to assess criticality within their programs as they plan new work to initiate. However, even with focused

replacements, the Transmission sustain program must ramp up (as demonstrated in section 10.3). This ramp up is

necessary due to both aging infrastructure as well as to recent technology with (in some cases) shorter expected life.

Figure 10.6-3 - Total Outage Cost over time by Asset Type - Base Plan

As Transmission continues to mature its asset management capabilities, data will be refined and capital programming

levels, risks, and benefits may shift accordingly. Transmission continues to study and evaluate equipment and perform

maintenance to get comprehensive understandings of how best to program asset actions to mitigate risk on the system.

One example of where new data has shifted Transmission’s approach is in the fiber program. Previously, the

understanding was that fiber replacements should be performed based on age, leading to a high volume of backlogged

replacements. However, additional data from fiber that has been removed and sent to the manufacturer for analysis has

found that fiber has been in good condition when there is no visible external damage. This has allowed a refinement in

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

the fiber program where shorter sections of more critical fiber with external damage targeted to mitigate risk on the

system efficiently.

Though specific heat maps by risk dimension are not available to demonstrate future risk profiles due to the

implementation of the capital program, Transmission asset managers do incorporate these dimensions in their planning

of their individual programs. Examples include:

Reliability: Prioritizing replacement of equipment with demonstrated outage performance concerns, or radial feeds to

customers; prioritizing new expand projects based on reliability impacts

Compliance: Incorporating compliance requirements in all program areas, including reprioritizing work based on

compliance dates when necessary.

Environment: Incorporating environmental requirements across all Transmission projects, ranging from oil spill

containment in substations to comprehensive studies/analysis to identify and mitigate impacts of line work.

Safety: Incorporating safety requirements across all Transmission projects, for example, by incorporating fall protection in

line projects.

Financial: Taking action to ramp up the sustain program over time to avoid potential rate impacts from multiple and

concurrent asset failures that could result if sustain replacements were not prioritized.

11.0 Addressing Barriers to Achieving Optimal Performance

Transmission has identified disparate asset data/asset management systems as a major barrier to achieving optimal

performance. As a result, Transmission will be collaborating with Enterprise Architecture (EA) and IT on the Enterprise

Asset Management Maturity initiative

Current barriers:

 Approaching problems in silos rather than integrated across departments and different layers (business,

data, technology)

o Actions: The Enterprise Asset Management Maturity Initiative is being stood up

 Difficulties building sustainable and reusable solutions without a common cross-agency target state

architecture for Asset Management (principles, guiding blueprint, incorporating business and IT

drivers/strategy)

o Actions: EA has delivered an initial version to leverage

 Lack of a complete/enterprise understanding of the current state to properly prioritize and scope

o Actions: EA framework and current state landscape provide a cross-agency method to

consistently do this

 IT and business partnership

o –Actions: the programmatic approach and strengthening business readiness and data/process

management will reduce costs and increase success rate of projects and programs

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

As the effort launches, priorities include:

 Identify key success factors/impediments for the AM maturation activities (application consolidation, data

services, integration services, etc.)

 Identify business constraints (based on or derived from SAMP sections with SWOT, Implementation risks,

current initiatives)

 Identify “foundational” business requirements such as Asset Hierarchy, Asset Registry, etc.

 Validate & sequence interdependencies within maturation activities/projects

 Training and communication for impacted stakeholders

As a result of this integration and maturity work, Transmission anticipates being able to run dynamic portfolio

optimization scenarios, evaluate risk and benefits of various portfolio alternatives, understand impacts of

changes in execution rates, and be able to link data across the asset management lifecycle for more integrated

decision making.

Transmission has also undertaken several actions to address capability gaps including:

 Receiving allocations to hire additional personal in critical areas, for example, in cyber security and wildfire

 Secondary Capacity Program to support increased delivery of the capital program

 Mitigating contracting and material impacts based on regional and global factors by evaluating contracting

strategies and inventory levels

 Project Portfolio Management Modernization effort to improve visibility to potential project impacts, integrating

contingency planning into the portfolio, and maintain response flexibility as project needs shift.

Figure 11.1-1 – Addressing Barriers

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

12.0 DEFINITIONS

Financial Terms:

Indirect Costs: Any costs incurred for common objectives that cannot be directly charged to any single point of cost

application. Indirect costs as a class have the character of `joint' or `common' costs and, as a group, are usually referred

to as `burden' or as `overhead'. Indirect costs are often allocated to various categories of work in proportion to the

benefit to each category.

Investment Classifications:

Compliance: Must be an executive order/directive requiring the specific investment must be made and that the project

as proposed includes only the minimum required to comply with the directive. For example Cyber Security, Highway

Relocations, BiOp.

Replacements: In kind replacement of equipment and components. For example, wood poles, transformers, batteries,

existing buildings, breakers, reactors, and conductor.

Upgrades/Additions: Replacement of existing assets that provide addition capacity and/or capability. Examples include

breakers, transformers, lines, etc. that after replacement have higher ratings to transfer power. Replacement of

applications that provide new capability

Expansion: Adding new assets to the system that did not exist before providing new capability. Examples include: new IT

applications, new buildings, and new units at existing power generation sites, new line and substations.

ISO 55000:

Management System: Set of interrelated or interacting elements of an organization to establish policies and objectives

and processes to achieve those objectives

 A management system can address a single discipline or several disciplines.

 The system elements include the organization’s structure, roles and responsibilities, planning, operation, etc.

 The scope of a management system may include the whole of the organization, specific and identified functions

of the organization, specific and identified sections of the organization, or one or more functions across a group

of organizations.

Asset Management System: Management system for asset management whose function is to establish the asset

management policy and asset management objectives

 The asset management system is a subset of asset management.

Asset management plan: Documented information that specifies the activities, resources, and timescales required for an

individual asset or a grouping of assets, to achieve the organization’s asset management objectives

 The grouping of assets may be by asset type, asset class, asset system or asset portfolio

 An asset management plan is derived from the strategic asset management plan

 An asset management plan may be contained in, or may be a subsidiary plan of, the strategic asset management

plan.