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Project: T174700 #50/143
 

Utilities are under more pressure than ever to maximize the efficiency of their planned spending. In recent years, electric utility asset investment planning has undergone a reform. The industry is moving from traditional run-to-failure or fixed-cycle replacement, to a more probabilistic planning approach. The fundamental building block of these probabilistic approaches has been the age-based hazard rate, or probability of failure (PoF). Utilities are recognizing that numerous factors can affect an asset’s PoF, and are interested in understanding how asset condition can augment the probabilistic planning framework. This report presents research on the correlation of asset conditions, as expressed through the asset health index (AHI), and the PoF. A structured approach using statistical methods, which can be used to develop a condition-based failure curve, is presented in this investigation. This methodology can be used by utilities to further improvement their advanced planning practices.

Keywords:

Asset management, Probability of failure, Asset health index