Although I worked for a small, very regional, paint manufacturing company, Pennsbury Coatings, it was decided that I should participate in that meeting. Continue reading 30 Years of AWWA ACE Conventions→
By Barry Peters, Shipping Supervisor/Customer Service
Try saying that blog post title five times fast!
In the industrial coatings industry, we are consumed daily with protection, durability, longevity and all the performance characteristics associated with coatings in situations that are less than ideal.
But every once in a while, a situation comes along that causes us to say, “Wow, that’s a good looking coating.” This project reflects just such an instance. Continue reading A Humble Abode for Bug’s Bass Boat→
We’ve talked before about the meaning of value and what that looks like to us at Induron. But I really think it’s a topic worth revisiting, especially since we want to be the best value provider for coatings in our market.
Today, everybody seems to want to do more with less. We have the ability to communicate almost instantaneously. So is it realistic for us to call on design professionals we want to work with and provide each one with valuable information? Continue reading Be a Resource, not a Peddler to Add Value→
On Thursday May 2, 2013, Induron hosted our Second Annual Family Night at the Ballpark. This is a social event where all employees are invited to bring their spouses, kids and grandkids to the local ballpark. We eat hot dogs, burgers and Cracker-Jacks and really get to know co-workers in a relaxed atmosphere. Continue reading It’s Not about Baseball!→
Most of us, thankfully, don’t have an aged-galvanized electrical transmission tower in our backyards. What we DO have, more often than not, is an old shed that’s probably seen better days.
That was the situation at the Smith residence recently. My trusty old backyard shed was in dire need of some TLC. If I’m perfectly honest, the rotting wooden shed needed to be torn down and taken out of its misery, but in a last-ditch effort to save myself the expense and time of building a new one, I slapped some Induraguard 9200 on it. Continue reading Shedding a Little Light on Induraguard→
Back in the 1990s, I taught a Junior Achievement class to eighth graders at Tarrant Middle School, here in the Birmingham area. This was not the “project” many people associate with Junior Achievement, but an actual 50-minute class once a week for an entire semester with curricula offered by Junior Achievement. The regular Social Studies teacher remained in the classroom to help, but it was truly a “teaching experience” for me.
Tarrant is a “working class,” mixed-race suburb of Birmingham, and my classes consisted of boys, girls, black, white, motivated, not-motivated kids, just as you would expect. Some were from single-parent homes and some were from homes with both mom and dad. But many of them hadn’t had the advantages that other kids their age have had.
I started teaching this class not knowing what to expect, but soon found that most of these kids were bright, inquisitive and really interested in economics and “home business” (how I described balancing a checkbook, creating and sticking to a budget, paying taxes and getting and keeping a job). Continue reading The Learning Curve→
Did you ever notice that when the future is portrayed in movies (especially in dystopian sci-fi movies), nothing gets properly maintained? There are no corrosion consultants specifying abrasive blasting, containments, chloride removal, 3-coat coating systems, spray application, etc?
Perhaps in the future there will be limited budgets for all the elements of a successful coatings job that people have come to believe are necessary. However, those elements are not always needed for a great coatings project.
I’ve always enjoyed the challenge of selling and feel that every job has some sales aspect – even if it’s just selling yourself to your boss. A teacher is selling education, a minister is selling religion, a politician is selling… well, you get my point.
I started out my sales career thinking all it took to be a good salesman was to treat your customer like you would like to be treated – the “Golden Rule” of sales. Then one day, it dawned on me that Customer Service was a big part of selling. So I started putting more emphasis on Customer Service.
Recently, I talked to a potential new customer about how great Induron’s customer service was. I felt I had made a strong presentation, but it didn’t convince the customer to switch.
Shortly after that I read an article from Alister & Paine entitled, “Do You Need a Customer Service “Spring Cleaning?” It came as a big surprise when I realized that I had at least three of the five bad customer service habits described in the article. It was a good reminder that even people who have been in this business a long time can always make improvements.
For example, probably my greatest fault during my years in sales has been that I worry too much. I worry about not getting orders shipped on time or my customer blaming our products for a failure that wasn’t our fault. This article made me realize that spending more time solving a customer’s problems – rather than worrying about things I can’t control – will make me more productive.
At Induron, our Customer Service department is a key component in ensuring our customers get the products and information they need. Ricky Germany is the newest member of our Customer Service department, and we’re glad to have him on board!
Ricky has been with Induron since October, and in the few months he’s been here, has really become the “voice of Induron.” When customers call us, he’s usually the first person they talk to, whether they need to place an order, get a product recommendation or ask a question.
Learn a little more about Ricky:
If you were any animal, what would you be and why?
The animal that I would most like to be is a Fossa. It is highly intelligent and adaptive, lives in a tropical environment and has no natural predators.
What is your biggest professional mistake and success?
I cannot think of a professional mistake worth mentioning – either I have not had one or have selective memory suppression (I vote for the latter). As far as success, the following of clientele I achieved during my retail career – having people drive out of their way to come and deal with me exclusively – was very satisfying. Continue reading Induron Family Q&A: Ricky Germany→
As a general rule, I’m opposed to PACs (Political Action Committees) because of the “secrecy” of their membership and undue influence in our nation’s political process.
However, I am also opposed to a lot of the everyday activities that I regularly participate in. What do I mean? I’m opposed to paying unfair sales taxes on groceries and medicine. I’m opposed to participating in the “free-rider” aspect of volunteer organizations. And I’m very much opposed to the game I grew up playing – football – being deteriorated by the NFL on a year-by-year or even week-by-week basis. But I digress.
But a recent article from PaintSquare has me cheering for (or at least, considering cheering for) the success of the new NACE PAC in Washington.
Look at the numbers: 3.1 percent of our nation’s GDP is spent on corrosion repair and prevention. And it is estimated that up to 30 percent of that cost could be eliminated with proper design and maintenance.
That’s about 1 percent of our GDP, or, in layman’s terms, $120 billion.
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.