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© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 1 FACT: "IT IS ALWAYS FAR SAFER AND LESS COSTLY TO PREVENT AN ELECTRICAL PROBLEM THAN IT IS TO REPAIR ONE!" 1

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Financial benefits to TEGG Electrical Preventive Maintenance Services

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Page 1: Tegg Services

© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 1

FACT:

"IT IS ALWAYS FAR

SAFER AND LESS COSTLY TO

PREVENT AN ELECTRICAL

PROBLEM THAN IT IS TO

REPAIR ONE!"

11

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© Copyright 2008, TEGG Corporation; Rev. 4, April 18, 2008 22

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PLANT SERVICES MAGAZINE

“Regular preventive

maintenance is the best

protection you can have

against sudden and costly

power outages.”Source: Plant Services Magazine

“Regular preventive

maintenance is the best

protection you can have

against sudden and costly

power outages.”Source: Plant Services Magazine

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

Without preventive

maintenance, the failure rate of

electrical system components is

three times higher.

Without preventive

maintenance, the failure rate of

electrical system components is

three times higher.

Source: Institute of Electrical and Electronics Engineers

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

Nearly two-thirds of all electrical distribution fire losses could have been prevented.

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“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 of losses and 47 percent of the dollar loss. The average loss estimate for non-fire electrical breakdown was nearly US$300,000.”

Source: “Maintaining Power for Productivity:Preventing Electrical Loss”, Page 1;Publication P9702, FM Global,Factory Mutual Insurance Company,Johnston, R.I., USA

FM Global is a registered trademark of Factory Mutual Insurance

Company, Johnston, RI, USA

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“Without an EPM (Electrical Preventive Maintenance) program, management assumes a much greater risk of serious electrical failure and its consequences.”

“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

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“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

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• 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.

How long has it been since your electrical system was visually inspected?

How long has it been since your electrical system was visually inspected?

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Def. Ultrasonic: Having frequencies above the normal range of human hearing, i.e., higher than ~20kHz.

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.

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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!

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“The most effective method of inspection is to combine Ultrasonic Testing with Infrared Thermography.”

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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.

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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!

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Maintenance Technology Magazine, June 2001; www.mt-online.com

"Infrared inspection programs have proven that on average for every $1 spent on infrared electrical inspections, there is a $4 return on investment formaterials and labor from

fixing the problems before they fail."

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

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

John Fetters is the Energy User News Fundamentals of Energy Series Editor.

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BUSINESS INTERRUPTION

“The average hourly outage costs incurred for office buildings are $.0681/square foot.”

Source: Institute of Electrical and Electronics Engineers

2020

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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

Page 17

“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."

“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."

Building Owners and Managers Association

A Global Problem

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“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

NATIONAL ENERGY MANAGEMENT INSTITUTE

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Without Preventive Maintenance, The

Distribution System Itself Can Waste

$1,000 to $4,000 In Electric Utility

Cost!Source: from Infrared Research, Inc. Infrared Thermography Can Prevent Energy Losses, Maintenance Technology, June 2001

Electric Utility Costs

$1,000 – $4,000 In Electric Utility Waste

2323

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The Importance of SafetyThe 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.

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"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."

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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.

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 refrigeration3. Boilers, pressure vessels and piping4. Machinery (all types)5. Computer equipment6. Motors (including air conditioning)7. Pumps 8. Telecommunications

What Equipment Breaks Down Most Often?

THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE CO.

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Insurance/Certifications• Many Insurance

Companies and Certifying Entities Require Proactive Electrical Preventive Maintenance.

• We Will Provide You With The Necessary Compliance Certificates.

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ASSET MANAGEMENTASSET MANAGEMENT

10 – 15% of Facility

Construction Cost!

10 – 15% of Facility

Construction Cost!

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

ASSET MANAGEMENTASSET MANAGEMENT

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“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

NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING TECHNOLOGIES

145145

“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

NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING TECHNOLOGIES

1451453131

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• 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

Financial Benefits of Electrical Preventive Maintenance:

Industrial Facilities

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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

5. Approximate Current Cost For Any Existing Electrical Testing

(e.g. Infrared Thermography)

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

5. Approximate Current Cost For Any Existing Electrical Testing

(e.g. Infrared Thermography)

Sample

TEGG PREMIUM