"When running an electric utility, risk manage-ment is everything,” says Don Mosier, executive vice president and chief operating officer of East Kentucky Power Cooperative (EKPC).
For EKPC, that means constantly identifying risks, potential failures and procedural flaws at its four major power plants, providing electric power to its 16 owner-members, and keeping the lights on at 530,000 homes and businesses across 87 Kentucky, USA, counties.
“We have to be very proactive in understanding what potentially could go wrong,” says EKPC Director of Risk Narmada Nanjundan.
In an industry where 70 percent of losses come from mechanical or electrical breakdown and catastrophic failures can knock a plant offline for months, being proactive is the only option. That is one of the reasons EKPC has partnered with FM Global.
FM Global insures more than 2,000 power generation plants and has more than 180 engineers who specialize or are trained in power generation. Those responsible for developing FM Global technical guidance are turbine and generator experts who’ve worked in the industry. They bring years of knowledge in analytics, research and failure analysis that allows FM Global to provide its clients with best-in-class loss prevention recommendations.
“That’s why the relationship with FM Global is so important,” explains Michael McNalley, executive vice president and chief financial officer. “Not only does it protect us if there is a big loss, but more importantly, the relationship with FM Global has allowed us to do many things in the plants that really help prevent many kinds of accidents.”