SCHEME OF THE NATIONAL TRANSMISSION CORPORATION

PERFORMANCE INDICATORS USED IN THE PERFORMANCE INCENTIVE

SCHEME OF THE NATIONAL TRANSMISSION CORPORATION

PAULA MICHELLE R. ARAGON

2004-39960

SUBMITTED TO THE FACULTY OF THE

COLLEGE OF ENGINEERING AND AGRO-INDUSTRIAL TECHNOLOGY, UNIVERSITY OF THE PHILIPPINES LOS BAÑOS,

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

BACHELOR OF SCIENCE IN ELECTRICAL ENGINEERING

MARCH 2009

TABLE OF CONTENTS

Biographical Sketch iii

Acknowledgement iv

Table of Contents vi

List of Figures ix

List of Tables x

I. Introduction 1

A. Description of the Study 2

B. Significance of the Study 2

C. Objectives 3

D. Scope and Limitations 3

E. Date and Place of Study 4

F. Company Profile 4

G. Training Activities 7

II. Review of Literature 8

A. Reliability 9

A.1. Definition 9

A.2. Reliability Indicators 9

A.2.1. System Average Interruption Frequency Index 9 A.2.2. System Average Interruption Duration Index 9 A.2.3. Customer Average Interruption Duration Index 10 A.2.4. Momentary Average Interruption Frequency Index 10

B. Power Quality 10

C. Classification of Outages 11

C.1. Forced Outage 11

C.1.1. Momentary Fault 11

C.1.2. Oversized Fuse Cut-out Along the Line 12

C.1.3. Vegetation 12

C.1.4. Sagging 12

C.1.5. Substation Equipment Trouble 12

C.1.6. Human Error 13

C.1.7. Broken Cross Arm 13

C.1.8. Cut Conductor 13

C.1.9. Insulation Failure 13

C.1.10. Damaged Pole/Tower 13

C.1.11. Defective Connectors 14

C.1.12. Cut Guy Wire 14

C.1.13. Fire 14

C.1.14. Sustained Fault 14

C.1.15. Cut Overhead Ground Wires 15

C.1.16. Delayed Completion of Maintenance Activity 15

C.1.17. Sustained Fault 15

C.1.18. Customer Caused Outage Protection Coordination

Without Validation 15

C.1.19. Delayed Switching/Normalization of Load 16

C.2. Planned Outage 16

C.2.1. Planned/Scheduled Maintenance Outage 16

C.2.2. Corrective Maintenance Outage 16

C.3. Other Outages 16

C.3.1. Forced Majeure 16

C.3.2. Manual Load Dropping Due to Generation Deficiency 17

C.3.3. Design/Construction Deficiency 17

C.3.4. Automatic Load Dropping Due to Plant Outage 17

C.3.5. System Planning Deficiency 17

C.3.6. Delayed Project Completion 18

C.3.7. Customer Caused Outage 18

C.3.8. Switching 18

C.3.9. Tariff Metering 18

C.1.10. Accidents/Intrusion/Incursion of Foreign Objects 19

C.3.11. Uncooperative Land Owner 19

C.3.12. War, Rebellion, Vandalism, Pilferage and Criminal 19 C.3.13. Fault Clearance Failure/Misoperations 19 C.3.14. Planned Required by Projects and Other Groups 19

C.3.15. Human Error of Other Groups 20

C.3.16. Management 20

C.3.17. General Contingency Plan 20

C.3.18. Communication Problems 20

D. Monitoring, Recording and Processing of Data 20

D.1. System Performance Monitoring 21

D.2. Power Quality Monitoring 22

D.2.1. Supervisory Control and Data Acquisition 22

D.2.1.1. Human Machine Interface 22

D.2.1.2. Remote Terminal Units 23

D.2.1.3. Supervisory Station 23

D.2.2. TransCo Communications and Remote SCADA Systems 23

III. Study Methodology 25

IV. Discussion and Analysis 27

A. Performance Based Regulation 28

B. TransCo’s Performance Incentive Scheme 29

B.1. Performance Indicators 29

B.1.1. System Interruption Severity Index (SISI) 29 B.1.2. Frequency of Tripping per 100ckt-km (FOT) 30

B.1.3. System Availability (SA) 31

B.1.4. Frequency Limit Compliance (FLC) 32

B.1.5. Voltage Limit Compliance (VLC) 33

B.2. Performance Targets 35

B.3. Weightings of Performance Indicators 38 B.4. Computation of the Performance Indicators 38

B.4.1. Calculation of SISI 39

B.4.2. Calculation of FOT 41

B.4.3. Calculation of SA 42

B.4.4. Calculation of FLC 43

B.4.5. Calculation of VLC 46

B.5. Performance Evaluation 49

B.6. Computation of Reward or Penalty 50

B.6.1. Incentive/Penalty Multiplier 52

B.6.2. Calculation of Net Reward 53

V. Observations 57

VI. Conclusion 59

VII. Recommendations 61

Literature Cited 63

Appendices 65

LIST OF FIGURES

Figure 1. Performance vs. Reward/Penalty for a Negative Measure 37 Figure 2. Performance vs. Reward/Penalty for a Positive Measure 37

LIST OF TABLES

Table 1. Activities held at the Performance Assessment Division of the Power

Network Planning of the National Transmission Corporation. 7 Table 2. Control Centers of the National Transmission Corporation 22 Table 3. List of Interruption Events Excluded from the Calculation of Reliability

Indices SISI & FOT 30

Table 4. Frequency Monitoring Points 33

Table 5. Nominal Voltages per Grid that are Monitored for VLC 33

Table 6. Voltage Monitoring Points 34

Table 7. Five (5) Year Average of TransCo’s Historical Data from 2000 to 2004 35 Table 8. Bandwidth for the Performance Indicators for each Grid 36 Table 9. Weightings of the Performance Indices by Grid 38 Table 10. SISI Sample Data of Luzon Grid from August 26, 2007- August 25,

2008 39

Table 11. SISI Sample Data of Visayas Grid from August 26, 2007- August 25,

2008 40

Table 12. SISI Sample Data of Mindanao Grid from August 26, 2007- August 25,

2008 40

Table 13. FOT Sample Data of Luzon Grid from August 26, 2007- August 25,

2008 41

Table 14. FOT Sample Data of Visayas Grid from August 26, 2007- August 25,

2008 42

Table 15. FOT Sample Data of Mindanao Grid from August 26, 2007- August 25,

2008 42

Table 16. SA Sample Data of the Grids from August 26, 2007- August 25, 2008 43 Table 17. FLC Sample Data of Luzon Grid from August 26, 2007- August 25,

2008 44

Table 18. FLC Sample Data of Visayas Grid from August 26, 2007- August 25,

2008 45

Table 19. FLC Sample Data of Mindanao Grid from August 26, 2007 - August 25,

2008 46

Table 20. VLC Sample Data of Luzon Grid from August 26, 2007- August 25,

2008 47

Table 21. FLC Sample Data of Visayas Grid from August 26, 2007- August 25,

2008 48

Table 22. FLC Sample Data of Mindanao Grid from August 26, 2007- August 25,

2008 49

Table 23. Evaluation of TransCo’s Performance for the Year 2008 50 Table 24. Breakdown of Allocated Incentives and Allowable Reward and Penalty 51

Table 25. Incentive/ (Penalty) Multiplier 53

Table 26. Calculation of the Net Reward 55