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FACT:
            "IT IS ALWAYS FAR SAFER AND
             LESS COSTLY TO PREVENT AN
                 ELECTRICAL PROBLEM THAN
                                                IT IS TO REPAIR ONE!"



© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008              1
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008   2
PLANT SERVICES MAGAZINE

“Regular preventive
maintenance is the best
protection you can have
against sudden and costly
power outages.”
                   Source: Plant Services Magazine




                                                     3
Without
                                                                 preventive
                                                             maintenance, the
                                                               failure rate of
                                                             electrical system
                                                              components is
                                                                three times
                                                                   higher.
                                                                 Source: Institute of Electrical and Electronics Engineers




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                                                   4
Nearly two-thirds
          of all electrical
          distribution fire
          losses could have
          been prevented.



         Source:             Factory Mutual Insurance Company Study,
                             National Fire Protection Association, NFPA/ANSI Std. 70-B




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                               5
“Over the years, FM Global Studies
                  repeatedly have shown electricity to
                  be the leading cause of fires and
                  explosions. In a recent year, electricity
                  accounted for 35 percent of the dollar
                  loss and the number of losses in fire
                  and explosion incidents. The average
                  estimated dollar loss per fire and
                  explosion was more than US$800,000.
                  In instances where no fire
                  ensued, electrical breakdowns
                  accounted for 51 percent of the number      Source: “Maintaining Power for Productivity:
                                                                      Preventing Electrical Loss”, Page 1;
                  of losses and 47 percent of the dollar              Publication P9702, FM Global,
                                                                      Factory Mutual Insurance Company,
                                                                      Johnston, R.I., USA
                  loss. The average loss estimate for non-            FM Global is a registered trademark
                                                                      of Factory Mutual Insurance
                  fire electrical breakdown was nearly                Company, Johnston, RI, USA


                  US$300,000.”

© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                                   6
“Without an EPM
          (Electrical Preventive
          Maintenance) program,
          management assumes a
          much greater risk of
          serious electrical failure
          and its consequences.”
                                                             Source: National Fire Protection Association, NFPA-70B




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                                            7
“A well-administered
          electrical preventive
          maintenance program
          will reduce accidents,
          save lives, minimize
          costly breakdowns and
          unplanned shutdowns
          of equipment.”                                     Source: National Fire Protection Association, NFPA-70B




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                                            8
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008   9
How long has it been since your
  electrical system was visually inspected?

     • Performed by Certified Technicians
       who are also Qualified, Experienced
       ELECTRICIANS!
     • Able to identify and analyze electrical
       issues missed by non-electricians.
     • Often can fix problems "on the
       spot", saving you time and money.




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008   10
Just as Infrared Thermography
 converts colors that we can’t normally
   “see” to colors that we can see,
  Ultrasonic Testing converts sounds
    that we can’t normally “hear” to
       sounds that we can hear.
Def.   Ultrasonic: Having frequencies
       above the normal range of human
       hearing, i.e., higher than ~20kHz.




                                            11
Ultrasonic testing will find critical issues that would be
             missed with infrared testing alone, such as insulation
             deterioration inside a conduit.
          This issue was found in a 3-year old O2 plant on several
             sets of 5KV motor leads.
          Ultrasonic Testing PREVENTED the costly failure!




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008             12
“The most effective method of inspection is to
    combine Ultrasonic Testing with Infrared Thermography.”


© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008    13
Example of a high resistance electrical connection.



                     Def.         Infrared: Light waves just outside the visible spectrum, that
                                  is, waves slightly longer than those visible to the human eye.




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                                            14
Because connection temperature rises exponentially with current
  flow, subtle issues can NOT be ignored, particularly if current flow may
  increase.
  Our Certified TEGG Electricians/Technicians are trained to document issues
  even if the existing load temperature does not exceed IR Alert Criteria.
                                                             Example of a badly
                                                             deteriorated contact with
                                                             a lightly loaded circuit
                                                             breaker. A potentially
                                                             dangerous and costly
                                                             problem was avoided!




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                               15
"Infrared inspection programs
                          have proven that on average
                          for every $1 spent on infrared
                          electrical inspections, there is
                          a $4 return on investment for
                          materials and labor from
                          fixing the problems before
Maintenance Technology
Magazine, June 2001;
www.mt-online.com
                          they fail."



                                                             16
Maintenance Technology Magazine, June 2001;
                                                             Infrared Research, Inc., Rossville, GA




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                                 17
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008   18
John Fetters is the Energy User News
                                                             Fundamentals of Energy Series Editor.




               September Issue (Vol. 29, No. 9)
               www.energyusernews.com




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                           19
BUSINESS INTERRUPTION
                    “The average hourly outage
                     costs incurred for office
                     buildings are $.0681/square
                     foot.”


                    Source: Institute of Electrical and Electronics Engineers




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                      20
A Global Problem



                                Building Owners and Managers Association
                    “A preventive maintenance program can
                     ensure that a $5 fix does not become a $500
                     problem.”
                    “Moreover, preventive maintenance can
                     have a direct impact on a property's net
                     operating income (NOI) by helping owners
                     and managers control operating costs."
                                                                                                                                                                 Page 17



               BOMA.ORG THE MAGAZINE is published monthly by the Building Owners and Managers Association (BOMA) International, 1201 New York Avenue, N.W., Suite 300,
               Washington, D.C.; www.boma.org




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                                                                                                 21
NATIONAL ENERGY
                                                             MANAGEMENT INSTITUTE


                “Improperly torqued connections and
                bad contacts cause increased amperage
                draw and power loss, as well as heating
                and arcing (which is both inefficient
                and dangerous).”

     Source: National Energy Management Institute, Alexandria, VA; www.nemionline.org




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                              22
$1,000 – $4,000 In
                                   Electric Utility Waste

                                                                                      Without Preventive
                                                                                       Maintenance, The
                                                                                      Distribution System
                                                                                        Itself Can Waste
                                     Electric                                           $1,000 to $4,000
                                   Utility Costs
                                                                                       In Electric Utility
                                                                                               Cost!
               Source: from Infrared Research, Inc. Infrared Thermography Can Prevent Energy Losses, Maintenance Technology, June 2001




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                                                               23
The Importance of Safety

  Electrical Installation Standard (OSHA)
  On April 5, 2004, (69 FR 17773-17842), the Occupational Safety and
   Health Administration (OSHA), U.S. Department of Labor, issued a
   proposed rule (29 CFR, Part 1910, Subpart S) that would revise
   the general industry electrical installation standard.
  OSHA has determined that electrical hazards in the workplace
   pose a significant risk of injury or death to employees, and that
   the requirements in this proposed revised standard, which draw
   heavily from the 2000 edition of the National Fire Protection
   Association’s Electrical Safety Requirements for Employee
   Workplaces (NFPA 70E) and from the 2002 edition of the National
   Electrical Code (NEC), are reasonably necessary to provide
   protection from these hazards.




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                              24
"Periodic maintenance on
                                                             the switchboard includes
                                                             cleaning, lubrication and
                                                             exercising component
                                                             parts. The interval
                                                             between maintenance
                                                             checks can vary
                                                             depending upon the
                                                             amount of usage and
                                                             environmental conditions
                                                             of each installation. The
                                                             maximum recommended
                                                             inspection interval is one
                                                             year. This definition for
                                                             periodic maintenance
                                                             applies throughout this
                                                             manual unless otherwise
                                                             noted."



© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                25
THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE CO.


              What Equipment Breaks Down Most Often?
                                                                          The following equipment is ranked by frequency
                                                                          of loss claims, accounts for the most common
                                                                          equipment breakdowns and includes exposures
                                                                          found in every business and organization.
                                                                          1. ELECTRICAL EQUIPMENT (ALL TYPES)
                                                                          2. Air conditioning and refrigeration
                                                                          3. Boilers, pressure vessels and piping
                                                                          4. Machinery (all types)
                                                                          5. Computer equipment
                                                                          6. Motors (including air conditioning)
                                                                          7. Pumps
                                                                          8. Telecommunications
          Whistle Stop Newsletter, Published by the Hartford Steam Boiler Inspection and Insurance Co., Hartford, CT, June 2003; HSB Is a leading global equipment breakdown insurer and reinsurer.




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                                                                                                                            26
Insurance/Certifications
       • Many Insurance
         Companies and
         Certifying Entities
         Require Proactive
         Electrical Preventive
         Maintenance.
       • We Will Provide You
         With The Necessary
         Compliance Certificates.



© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008   27
ASSET MANAGEMENT


    10 – 15%
   of Facility
Construction Cost!

                     28
ASSET MANAGEMENT




                                         Proactive Care Extends The Life
                                          Of The Equipment And Delays
                                          Costly Capital Expenditures!

© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                 29
© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008   30
NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING TECHNOLOGIES


                    “About one-third of all equipment losses are electrical
                     in nature. About one-fourth of these losses are
                     caused by loose connections. About eight electrical
                     hot spots are detected per each IR survey. Of these,
                     four are minor or intermediate in severity, and four are
                     serious or critical. Each minor/intermediate problem
                     detected results in an average potential savings of
                     $500. For the serious and critical problems, this
                     number is $3,000 - $5,000. Based on savings
                     averages of these eight hot spots, the total
                     potential savings are $14,000 - $22,000.”
                         Source:           National Center For Energy Management and Building Technologies:
                                           Energy Reduction Through Practical Scheduled Maintenance (Report NCEMBT-061102,
                                           Prepared for the U.S. Department of Energy, November, 2006); Page 128.
                                           http://www.ncembt.org/downloads/NCEMBT-061102.pdf




© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                                                                    31
                                                                                                                             145
                                                                                                                             145
Industrial Facilities
     Financial Benefits of Electrical
     Preventive Maintenance:
• Predictable budget
• Reduced risk of unexpected
  outages
• Lower repair costs
• Reduce risk of business
  interruptions
• Extend the EDS useful life/lower
  replacement costs
• Lower replacement costs
• Reduce life safety risks
• Reduce risk from electrical fires
• Computerized documentation for
  your electrical distribution system

© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008                           32
Information Needed
               To Prepare Your
               Cost Benefit Analysis:
               1. Preliminary System
                  Evaluation
               2. Estimated Business
                  Interruption Cost
               3. Facility Square Footage
               4. Electrical Distribution
                  System Age
TEGG PREMIUM
               5. Approximate Current
                  Cost For Any Existing
                  Electrical Testing
                  (e.g. Infrared
                  Thermography)

                                            33

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Tegg Services

  • 1. FACT: "IT IS ALWAYS FAR SAFER AND LESS COSTLY TO PREVENT AN ELECTRICAL PROBLEM THAN IT IS TO REPAIR ONE!" © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 1
  • 2. © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 2
  • 3. PLANT SERVICES MAGAZINE “Regular preventive maintenance is the best protection you can have against sudden and costly power outages.” Source: Plant Services Magazine 3
  • 4. Without preventive maintenance, the failure rate of electrical system components is three times higher. Source: Institute of Electrical and Electronics Engineers © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 4
  • 5. Nearly two-thirds of all electrical distribution fire losses could have been prevented. Source: Factory Mutual Insurance Company Study, National Fire Protection Association, NFPA/ANSI Std. 70-B © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 5
  • 6. “Over the years, FM Global Studies repeatedly have shown electricity to be the leading cause of fires and explosions. In a recent year, electricity accounted for 35 percent of the dollar loss and the number of losses in fire and explosion incidents. The average estimated dollar loss per fire and explosion was more than US$800,000. In instances where no fire ensued, electrical breakdowns accounted for 51 percent of the number Source: “Maintaining Power for Productivity: Preventing Electrical Loss”, Page 1; of losses and 47 percent of the dollar Publication P9702, FM Global, Factory Mutual Insurance Company, Johnston, R.I., USA loss. The average loss estimate for non- FM Global is a registered trademark of Factory Mutual Insurance fire electrical breakdown was nearly Company, Johnston, RI, USA US$300,000.” © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 6
  • 7. “Without an EPM (Electrical Preventive Maintenance) program, management assumes a much greater risk of serious electrical failure and its consequences.” Source: National Fire Protection Association, NFPA-70B © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 7
  • 8. “A well-administered electrical preventive maintenance program will reduce accidents, save lives, minimize costly breakdowns and unplanned shutdowns of equipment.” Source: National Fire Protection Association, NFPA-70B © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 8
  • 9. © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 9
  • 10. How long has it been since your electrical system was visually inspected? • Performed by Certified Technicians who are also Qualified, Experienced ELECTRICIANS! • Able to identify and analyze electrical issues missed by non-electricians. • Often can fix problems "on the spot", saving you time and money. © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 10
  • 11. Just as Infrared Thermography converts colors that we can’t normally “see” to colors that we can see, Ultrasonic Testing converts sounds that we can’t normally “hear” to sounds that we can hear. Def. Ultrasonic: Having frequencies above the normal range of human hearing, i.e., higher than ~20kHz. 11
  • 12. Ultrasonic testing will find critical issues that would be missed with infrared testing alone, such as insulation deterioration inside a conduit. This issue was found in a 3-year old O2 plant on several sets of 5KV motor leads. Ultrasonic Testing PREVENTED the costly failure! © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 12
  • 13. “The most effective method of inspection is to combine Ultrasonic Testing with Infrared Thermography.” © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 13
  • 14. Example of a high resistance electrical connection. Def. Infrared: Light waves just outside the visible spectrum, that is, waves slightly longer than those visible to the human eye. © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 14
  • 15. Because connection temperature rises exponentially with current flow, subtle issues can NOT be ignored, particularly if current flow may increase. Our Certified TEGG Electricians/Technicians are trained to document issues even if the existing load temperature does not exceed IR Alert Criteria. Example of a badly deteriorated contact with a lightly loaded circuit breaker. A potentially dangerous and costly problem was avoided! © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 15
  • 16. "Infrared inspection programs have proven that on average for every $1 spent on infrared electrical inspections, there is a $4 return on investment for materials and labor from fixing the problems before Maintenance Technology Magazine, June 2001; www.mt-online.com they fail." 16
  • 17. Maintenance Technology Magazine, June 2001; Infrared Research, Inc., Rossville, GA © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 17
  • 18. © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 18
  • 19. John Fetters is the Energy User News Fundamentals of Energy Series Editor. September Issue (Vol. 29, No. 9) www.energyusernews.com © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 19
  • 20. BUSINESS INTERRUPTION “The average hourly outage costs incurred for office buildings are $.0681/square foot.” Source: Institute of Electrical and Electronics Engineers © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 20
  • 21. A Global Problem Building Owners and Managers Association “A preventive maintenance program can ensure that a $5 fix does not become a $500 problem.” “Moreover, preventive maintenance can have a direct impact on a property's net operating income (NOI) by helping owners and managers control operating costs." Page 17 BOMA.ORG THE MAGAZINE is published monthly by the Building Owners and Managers Association (BOMA) International, 1201 New York Avenue, N.W., Suite 300, Washington, D.C.; www.boma.org © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 21
  • 22. NATIONAL ENERGY MANAGEMENT INSTITUTE “Improperly torqued connections and bad contacts cause increased amperage draw and power loss, as well as heating and arcing (which is both inefficient and dangerous).” Source: National Energy Management Institute, Alexandria, VA; www.nemionline.org © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 22
  • 23. $1,000 – $4,000 In Electric Utility Waste Without Preventive Maintenance, The Distribution System Itself Can Waste Electric $1,000 to $4,000 Utility Costs In Electric Utility Cost! Source: from Infrared Research, Inc. Infrared Thermography Can Prevent Energy Losses, Maintenance Technology, June 2001 © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 23
  • 24. The Importance of Safety Electrical Installation Standard (OSHA) On April 5, 2004, (69 FR 17773-17842), the Occupational Safety and Health Administration (OSHA), U.S. Department of Labor, issued a proposed rule (29 CFR, Part 1910, Subpart S) that would revise the general industry electrical installation standard. OSHA has determined that electrical hazards in the workplace pose a significant risk of injury or death to employees, and that the requirements in this proposed revised standard, which draw heavily from the 2000 edition of the National Fire Protection Association’s Electrical Safety Requirements for Employee Workplaces (NFPA 70E) and from the 2002 edition of the National Electrical Code (NEC), are reasonably necessary to provide protection from these hazards. © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 24
  • 25. "Periodic maintenance on the switchboard includes cleaning, lubrication and exercising component parts. The interval between maintenance checks can vary depending upon the amount of usage and environmental conditions of each installation. The maximum recommended inspection interval is one year. This definition for periodic maintenance applies throughout this manual unless otherwise noted." © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 25
  • 26. THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE CO. What Equipment Breaks Down Most Often? The following equipment is ranked by frequency of loss claims, accounts for the most common equipment breakdowns and includes exposures found in every business and organization. 1. ELECTRICAL EQUIPMENT (ALL TYPES) 2. Air conditioning and refrigeration 3. Boilers, pressure vessels and piping 4. Machinery (all types) 5. Computer equipment 6. Motors (including air conditioning) 7. Pumps 8. Telecommunications Whistle Stop Newsletter, Published by the Hartford Steam Boiler Inspection and Insurance Co., Hartford, CT, June 2003; HSB Is a leading global equipment breakdown insurer and reinsurer. © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 26
  • 27. Insurance/Certifications • Many Insurance Companies and Certifying Entities Require Proactive Electrical Preventive Maintenance. • We Will Provide You With The Necessary Compliance Certificates. © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 27
  • 28. ASSET MANAGEMENT 10 – 15% of Facility Construction Cost! 28
  • 29. ASSET MANAGEMENT Proactive Care Extends The Life Of The Equipment And Delays Costly Capital Expenditures! © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 29
  • 30. © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 30
  • 31. NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING TECHNOLOGIES “About one-third of all equipment losses are electrical in nature. About one-fourth of these losses are caused by loose connections. About eight electrical hot spots are detected per each IR survey. Of these, four are minor or intermediate in severity, and four are serious or critical. Each minor/intermediate problem detected results in an average potential savings of $500. For the serious and critical problems, this number is $3,000 - $5,000. Based on savings averages of these eight hot spots, the total potential savings are $14,000 - $22,000.” Source: National Center For Energy Management and Building Technologies: Energy Reduction Through Practical Scheduled Maintenance (Report NCEMBT-061102, Prepared for the U.S. Department of Energy, November, 2006); Page 128. http://www.ncembt.org/downloads/NCEMBT-061102.pdf © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 31 145 145
  • 32. Industrial Facilities Financial Benefits of Electrical Preventive Maintenance: • Predictable budget • Reduced risk of unexpected outages • Lower repair costs • Reduce risk of business interruptions • Extend the EDS useful life/lower replacement costs • Lower replacement costs • Reduce life safety risks • Reduce risk from electrical fires • Computerized documentation for your electrical distribution system © Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 32
  • 33. Information Needed To Prepare Your Cost Benefit Analysis: 1. Preliminary System Evaluation 2. Estimated Business Interruption Cost 3. Facility Square Footage 4. Electrical Distribution System Age TEGG PREMIUM 5. Approximate Current Cost For Any Existing Electrical Testing (e.g. Infrared Thermography) 33