Man, my head is spinning. Just as we all think we’ve figured out how to read an MSDS (Material Safety Data Sheet), the game is about to change.
In 1983, the Occupational Safety and Health Administration (OSHA) released its Hazard Communication (HazCom) regulation, which required an MSDS for every potentially hazardous material. It is now a generally accepted practice that MSDSs are reviewed and on-site as a part of every job. And we in the coatings industry and many other industries are better for it. Continue reading Safety Documentation Goes Global→
As an executive in a small business, I certainly don’t claim to have all the answers on how to “keep employees happy.” However, when I think about it, I think I know someone who does – Ric Michaels, my first grade teacher.
Now, I’m not comparing Induron’s (or your!) employees to first graders. But I am saying that keeping employees – or any other group of people – happy and productive requires the things we all learned, or should have learned, very early in life from a good role model. Continue reading How to Keep Employees Happy→
As local and national environmental regulations changed, particularly in the 1990s, Induron and companies like ours needed to document compliance with the new rules. Regulatory agencies were (and are) taking a much firmer stance on emissions, and it was clear changes were going to have to be made.
The rewards for lowering emissions are substantial – demonstrating lowered emissions means eligibility for a Synthetic Minor permit, which shows the community in general and the industry in particular that your company is committed to environmentally-responsible manufacturing; thus making you much more attractive to customers looking for like-minded suppliers.
Join Induron Coatings in New Orleans at WEFTEC this fall, and save $170 off the registration price when you register by this Friday, July 13!
It might seem a little “spooky” to register for an October event on Friday the 13th – but we know you won’t be frightened away from a good deal!
Use the money you’ll save on your registration fees to enjoy one of New Orleans’ most unique experiences – a cemetery tour! It’s one of Davies’ personal favorite New Orleans activities – find out more here.
One of the most widely-used standards in the coatings industry is getting a facelift. SSPC, the Society for Protective Coatings, announced recently that it had made technical revisions and editorial clarifications to its coating application standard, SSPC-PA 2, Procedure for Determining Conformance to Dry Coating Thickness Requirements. SSPC’s PA 2 is one of the most widely-referenced standards in the protective coatings industry. PA 2 first hit the industry in 1973, and has been refreshed several times since. These latest updates were effective May 2, 2012. Continue reading The Times – and the Standards – are A-changin’→
Not all epoxy coatings are created equal. I have read dozens of specifications that call for using a polyamidoamine epoxy coating in immersion and corrosive environments. Other than being hard to spell and pronounce, polyamidoamine epoxies are highly cross-linked, chemical- and abrasion-resistant protective coatings. However, that is where the similarities apparently end.
Bazan Painting Company has been in business since 1977, and as an industrial painting company, has worked with all the major and many of the smaller manufacturers of coatings. They typically paint 30 to 40 swimming pools every year. That’s a lot of responsibility for summer fun, and Bazan Painting has earned an excellent reputation. In addition to being a demanding task, it is a very short painting season – from the end of winter in the mid-West until pools open on Memorial Day. The protective coating has to be tinted correctly and delivered on time. Eric Hellwig, Bazan’s Purchasing Agent, says that Induron’s customer service is the best.
Walt Bazan, Jr., the owner, had been using a well-known polyamidoamine epoxy for years. It seemed to be working O.K., but he noticed that some customers were complaining that it just wasn’t holding up very well.
This is a NEW ADDITION providing SIGNIFICANT IMPACT on the tower to ENHANCE SERVICE LIFE.
While fixing foundations maintains what’s already there, applying Induraguard 9200 is like adding a fresh layer. It’s a new addition. The process needs to be done on a larger scale, so it’s important enough to be closely looked at by the Public Utilities Commission (PUC). With the huge U.S. electrical grid that can rust over time, the importance is clear. When this helps a structure stay useful for much longer and costs much less than getting a new one, it’s a real benefit for ratepayers.
WHY are you hearing this now?
The recent FERC ruling outlined the specific requirements for obtaining CapEx treatment when revitalizing towers.
FERC (Federal Energy Regulatory Commission) Update Enables Capitalization of T&D Coatings Initiatives
Formerly, utility companies could include replacement costs for transmission towers and poles in their capitalization, but corrosion control for these assets was excluded. A groundbreaking shift introduced by the Federal Energy Regulatory Commission now allows utility providers to categorize corrosion control programs (coating programs) for transmission structures as a “significant addition,” thereby enabling them to capitalize these expenses for accounting purposes. This alteration is poised to significantly impact the condition of the nation’s aging electric utility infrastructure.
On February 22, 2022, the Federal Energy Regulatory Commission (FERC) approved a utility company’s proposal to classify their tower coating programs as “substantial additions.” The order (1) clarifies, “The Commission has previously permitted utilities to consider the addition of minor property items that were previously absent as substantial additions and to capitalize the related costs when such costs extend the useful life, operational capacity, or efficiency of the associated retirement units.” Utility companies are now authorized to capitalize on the costs linked with corrosion control. This change aligns with generally accepted accounting principles (GAAP) and offers various financial advantages, including a more balanced assets-to-liabilities ratio and reduced income fluctuations.
In numerous instances, corrosion control solutions such as coatings have been repeatedly applied to structures, demonstrating anticipated performance and proven outcomes. Corrosion control coating programs, such as Induraguard 9200, possess the capacity to effectively prolong the service life of structures indefinitely.
HOW is this possible?
PG&E successfully presented a rate case supporting their proposal, citing examples of Southern Company and other utilities employing similar CapEx treatment. The PUC specified certain documentation requirements, but in the end, they granted the CapEx treatment as long as those requirements were met.
“Why should the ratepayer or the environment be asked to bear the cost of a new tower when coatings can be used to keep the one we already have operating indefinitely at a much lower cost?”
In PG&E’s success rate case proposal, FERC highlighted that comparable accommodations have been extended to prominent utilities such as Georgia Power and Southern California Edison. This ruling established a much-needed precedent and framework for other utilities to make the case that they have a responsible coatings program. Such programs can significantly enhance existing structures and potentially extend their operational lifespan by two decades or beyond.
The Tower Is Revitalized
Once the integrity of the galvanizing is compromised, the tower’s initial environmental protection is ineffective. However, the structural integrity remains intact. Implementing a new protective measure will ensure its preservation.
The application of Induraguard 9200 involves installing it on energized towers, typically at a rate of 1-2 towers per day for standard sizes.
Results In Monetary and Environmental Savings
Using Induraguard 9200 to restore a tower costs much less than replacing the whole tower – less than a tenth of the cost. It achieves the same goal while significantly reducing the need for procurement, engineering, and other human resources.
The environmental impact of mining, fabricating, shipping, and installing a new tower is drastically more detrimental compared to the environmental impact of prolonging the use of existing infrastructure.
Achieves An Indefinite Service Life
These structures, composed of steel and reinforced concrete, possess an indefinite design life if we manage environmental deterioration. This means there is no predetermined limit on the amount of value and serviceability after the initial installation at the ratepayer’s expense.
By implementing future applications of Induraguard 9200, the potential utilization timeframe for the structure becomes limitless. This becomes especially significant due to the existing strain on constructing new power infrastructure. It underscores the fact that we cannot simultaneously construct all the required new facilities and overhaul the current grid.
Revitalization Is Now A Capital Expense
The utilization of Induron’s Induraguard 9200 as a protective coating has gained recognition as a Capital Expense by both FERC and Public Utilities Commissions across the United States. This acknowledgment enables the potential cost of installing a replacement tower to come off of ratepayers while permitting the utilization of CapEx funds for this undertaking.
The Replacement Tower Is Now A Capital Expense
Once the existing tower has reached the end of its serviceable lifespan, the cycle starts over — thorough planning, procurement efforts, and assessment for a rate case to install a new replacement tower that is incredibly expensive and potentially disruptive to critical power transmission. This will be classified as a Capital Expense, thereby falling within the responsibility of the ratepayers again.
The Tower Corrodes And Needs Replacement
As the galvanizing layer diminishes, corrosion sets in, initiating the deterioration of the asset itself. This progression leads to visible corrosion and a reduction in structural integrity, ultimately necessitating the replacement of the entire structure.
Maintenance is classified as an O&M expense
Maintenance activities for the tower are categorized under Operations & Maintenance expenditures. Given that the asset was acquired using CapEx funds from ratepayers, the mentality of operation-to-failure takes hold. The objective then shifts to maximizing the asset’s operational lifespan before allocating further CapEx funds for its replacement.
The Tower Needs Maintenance
Over the tower’s lifespan, regular maintenance tasks are performed. Bolts are periodically replaced, foundations undergo repairs, and in some instances, structural elements are swapped out. However, it’s important to note that these routine maintenance activities do not mitigate the gradual degradation of the galvanizing layer, which ultimately leads to corrosion and, ultimately, the failure of the entire structure over time.
The Tower Is Built
The need for a new power transmission line is assessed, followed by meticulous planning, procurement of materials, and installation. The newly constructed tower is fortified with a protective layer of zinc, commonly referred to as galvanizing, which can have a lifespan of 20 to 50 years, contingent upon its quality, quantity, and service environment. This is financed through Capital Expenditure (Capex) funding, thereby distributing the financial responsibility to ratepayers through their imposed rates.
