In an increasingly competitive market space that has new and expanding regulatory paradigms, the need for utilities to effectively manage equipment and spare parts inventories has never been greater. To better understand the current practices within the industry, a survey of multiple utilities was conducted in order to examine failure rates, spare parts / equipment levels, and participation in inventory sharing programs. The survey focused on a representative subset of major equipment items in common use in the utility space. The survey results are combined with available information from wider industry experience regarding equipment failure rates, O&M practices, and inventory levels to form a basis for general state of the industry. The concepts of asset criticality and objective methods for the categorization of assets by criticality are explored, along with general long-term storage options for the major equipment items. The relative merits of the various types of inventory models for utility practice are also examined. The report concludes with an examination of the merits of and considerations for inventory sharing arrangements, and general recommendations regarding best practices.
Major Equipment, Inventory, Spare Parts, Failure Rates, Critical Asset, ISSESE