NO ONE COULD HAVE IMAGINED THE MAGNITUDE OF DAMAGE KATRINA WOULD WREAK on the states of Louisiana and Mississippi. This storm was so powerful and so massive that 100-mph (161-kmph) winds were recorded 100 miles (161 km) from shore. Although the United States continues to deal with the aftermath of Katrina, the power grid system has long been rebuilt. Now might be a good time to reflect on the relationships and processes in place that enabled the affected utilities to respond so quickly, along with a review of what worked and recommendations on what might be improved.

Clearly, close relationships between utilities and vendors were paramount in responding to a catastrophe of this magnitude. In a crisis, utilities know that proper planning before an event occurs along with working the plan as practiced will see you through a weather-based event. This is just what the affected utilities did as they brought power back to millions of customers in the Gulf Coast region. Utilities worked closely with contractors, wholesalers, partnering utilities and vendors to bring the necessary manpower and resources to rebuild the power-delivery system in a timely fashion. With massive assistance, the Gulf utilities rebuilt the system, replacing lines and poles, transformers, insulators and all the various components that make up our transmission and distribution lines.

RELATIONSHIPS ARE KEY

The relationships formed with vendors, during the routine course of business, were put to immediate use when the storm hit and replacement materials were needed at the front lines. Audie Foret, transmission line manager, Entergy (Baton Rouge, Louisiana), acknowledges, “It is to our benefit to have a direct line of contact with our suppliers.” Foret took up an offer by Eric Webb, account manager for the Gulf Region with Valmont-Newmark, to come to the Entergy Command Center and provide assistance. Valmont-Newmark made sure Entergy got the poles it needed to rebuild. States Foret, “We started planning with Webb on the pole heights and classes we would need, how many delivery trucks would be required and where we would stage this material as it was coming in. He was in the command center for the first three to five days, and remained local for the first couple of months following the storm. He also spent time in the field, checking with our field engineers to verify that they had what they needed and that shipments were correct.”

Webb, who was part of the extended Entergy Disaster Team, states, “Because of the mass devastation, there had to be a day or so of gathering information before Entergy could start ordering material. I was right there, so whenever they needed to order poles, I could make sure the trucks were on their way to the job site.” Entergy needed 300 concrete poles to replace wooden transmission poles that were damaged during the storm. (A program was already underway to replace 69-kV to 230-kV wood poles with concrete.)

Wes Oliphant, vice president, Valmont-Newmark Co., states, “We have strong alliances with Entergy and many other utilities built on a solid foundation of trust due to the long-term relationship we have with each. There are a lot of things that must happen following a storm and happen quickly, so much of the formality can be bypassed because this trust is already in place. You just work together to get the power restored.”

FUSING AND SWITCHGEAR

Other vendors were also busy in responding to the needs of their customers. S&C Electric Co. (Chicago, Illinois) was watching the incoming storm and was able to take action prior to receiving a call from its utility customers. Mark Stavnes, vice president of Fuse Products division, said, “We have a warehouse for our fuse items, a product that is most in demand following a storm. We also warehouse some switch items, the typical items that would be needed after a storm. In the case of Katrina, we saw the storm hitting the Entergy area. We know what products Entergy typically buys, so we started ramping up production in the days prior to the hit, especially fuses, fuse links and switch operators. We also were able to double our capacity by moving to a two-shift operation. While warehousing products is important and usually fills the need for most storms, with Katrina the warehoused products weren't sufficient to cover the need. In fact, the warehouse was emptied the first day and utilities needed a whole lot more. We worked seven days a week to produce what was needed.”

For S&C, the utility customers most affected by Hurricane Katrina were Entergy, Mississippi Power and Alabama Power. According to Stavnes, “We are Entergy's sole-source supplier for fuse links, so it was very important for us to fulfill that obligation. A couple of days before the storm hit, Jim Bishop, our sales representative from Curtis H. Stout, was in contact with us discussing how we were going to plan for this. He gave us early warning, and from that point on, we were talking to him many times a day.”

As the storm approached, Bishop and his inside sales person evacuated the New Orleans office and Curtis H. Stout Inc. set up a storm center in its Shreveport, Louisiana, office. He said, “We were pretty sure we were going to evacuate. We wanted to be in a place where we would have complete communications so it made sense to relocate to Shreveport.” As it turned out, Bishop and his associates worked out of the Shreveport office for a period of three months before they could return to the New Orleans office.

Comparing the quantity of product needed following Hurricane Katrina with previous storms, Stavnes said, “We received orders within two days of the storm of what would normally be four months of our production. And that was about 10 times more than what would be needed for a typical storm.”

S&C responded by changing the normal flow of sales information. Mike Ross, regional vice president, Southeast Sales Region at S&C, said, “I insisted we do away with our normal communication flow, which is to our inside sales organization and let Jim Bishop, who was in the field, deal directly with the production and shipping departments.” Bishop said, “For example, it allowed me to say to Entergy directly: This is the number and type of fuse links that are coming. I had cell phone numbers of the S&C production people and could call at night after everything had been shipped. That allowed me to make accurate verification of the order.”

Mississippi Power Co. received damage every bit as severe as Entergy. In fact, the coastal communities were not only hit with hurricane-force winds in excess of 145 mph (233 kmph), they were also hit with the storm surge that in some areas exceeded 30 ft (9 m). This created destruction of historic proportions and obliterated homes and buildings along the entire Mississippi Gulf Coast and in some areas resulted in flooding miles inland. The damage was so extensive that every one of Mississippi Power's 195,000 customers was without power, according to Rufus Smith, director of Supply Chain Management and General Services for the company. Smith also relayed that, “Out of 11 major substations in the coastal area, 10 were under water as a result of the storm surge, necessitating an unprecedented restoration project.”

S&C Electric was one of the suppliers working closely with Mississippi Power on the restoration effort. States Smith, “We have no formal storm agreement with S&C, but we've done business with them for a number of years, and during that time, we have built an excellent working relationship based on a win-win operating philosophy. S&C has worked very closely with Mississippi Power Co. and the Southern Company over the years in developing and improving products, and seeking our input in ways to reduce costs. Because of that relationship, their understanding of our operating system, the assistance of Jim Bishop, their manufacturers' representative, and Mike Ross, regional vice president, we are able to call them and say: ‘Here are our issues and needs.’ S&C even anticipated our needs. For instance, while we were still assessing damage, they had already started production of switches based on their knowledge of what Mississippi Power uses and their knowledge of our operating system.”

CIRCUIT BREAKERS AND VOLTAGE REGULATORS

Siemens, another major supplier to the utility industry, was active in responding to customers' needs. States Marcus Horn, vice president of Siemens Transmission & Distribution, “We have a disaster plan that covers all aspects of our business, including completely destructive events. And we have training for how to use the plan. When a severe storm approaches, we will close down the factory and send our people home, depending on the weather.”

Horn reports that calls from utility customers generally come into the Siemens service organization. He said, “With Katrina there was a lot more repair work than replacement work. Although Entergy had some substations that were totally flooded and damaged by debris, we replaced a number of circuit breakers for them on an emergency basis. We have a fair amount of product and components that comes through the port of New Orleans, so we tried to divert those shipments to Houston or other ports if possible. We temporarily lost three container loads of components from Germany in New Orleans, which were already unloaded but not yet transferred to trucks. So we air freighted in a replacement container load from Berlin. Horn reported, Entergy and Mississippi Power both placed emergency orders with us. Most requested were our high-voltage circuit breakers. Voltage regulators were also in demand.”

An example of prompt repair service by Siemens was reported by Jim Bradshaw, who at the time was customer service manager for the Jackson, Mississippi, manufacturing facility. Bradshaw received a call from Mississippi Power Co. on Friday, Sept. 2, 2005. A CPV circuit switcher at the Hurricane Creek Substation could not be closed. Bradshaw said, “The utility was ready to turn the power back on to three Mississippi coastal towns — Wiggins, Lumberton and Poplarville — but the circuit switcher controlling the circuit could not be operated. They called to ask if we could solve the problem. One indicator showed that the device was in the open position and another indicator said it was closed. Through a series of questions, such as what operations had been performed and the positions, I determined that a vertical operating rod had broken.” Bradshaw offered to drive the 100 miles or so to the substation with the part, but Mississippi Power instead said they would pick him up in their helicopter at the Jackson airport. He said, “I met the helicopter at about 4:45 p.m. on Friday, and we flew to just west of the town of Wiggins. I replaced the part and departed from there at about 7:30 p.m. They switched the power on after I left, restoring lights to the three towns.”

LOOKING AHEAD

With procedures in place and mutual relationships, the process of restoring power is much improved. Nonetheless, after a storm of this magnitude, both suppliers and utilities have been reviewing their processes, considering what improvements could be made.

Commenting for S&C, Ross said, “Personally, I think communication is key; having people on the ground right there is extremely important. So many times we were working with very little information as to which products we should make. I think that some more brainstorming prior to these storms is essential.”

Referring to this same issue, S&C's Stavnes said, “We're trying to work closely with the distributors, sales people and customers in the area to make sure that our plan for the storm season meshes with theirs. We want to be sure that there is a plan for the entire supply chain and that no one is an individual island.”

Webb of Valmont-Newmark said, “Many of our Gulf Coast utility customers are considering having us build standard design poles with standard drilling, or building up a supply of structures in case of a storm. I do think having a group of structures on hand that we could load up and send on short notice would help in restoration.”

Speaking for Siemens, Horn said, “This event was a good test of the procedures we had in place. We did well, so we don't anticipate making any changes. As to lessons learned, we had set up an 800 number for employees to call to learn when the plant power would be back on and other information they might need. But we did not have backup power for the phone system, so we were unable to respond. Now, we are getting backup power for that 800 phone system to make sure employees get the information they need.”

In the aftermath of Hurricane Katrina, the supplier-utility relationship was certainly a key factor for effective reconstruction. Utilities and suppliers continue to develop more efficient systems to enable them to respond quickly to natural disasters. At the same time, they continue to strengthen their relationships. An exemplary supplier-utility relationship pays dividends not only to the supplier and the utility, but also to the consumers of electric power.

BAY MINETTE PLANT SPINS OUT CONCRETE POLES

The Valmont-Newmark Alabama Concrete Power Operation serves two major utilities in its region: Entergy and the Southern Company (which includes Mississippi Power Co.).

Alan Taylor, general manager of the Valmont-Newmark Concrete Pole Operation in Bay Minette, Alabama, said, “We had to start preparing our own facility for the oncoming hurricane. Bay Minette is located about 50 miles (80 km) from the Gulf Coast near Mobile. We tied everything down and crossed our fingers. Fortunately, we lost power for only a short time. Once Katrina passed, we moved our people right back in and were ready to roll.”

Taylor said, “We have alliances with these companies as their concrete pole supplier. When a storm is approaching, we are in contact and set a preparedness plan in motion. One of the first things we do is take a physical inventory of all the poles we have in our yard and each of our other 10 plant locations, producing concrete or steel poles, and give a list of our inventory to the affected utilities so they will know what poles are available. All the poles we produce are built to order, so we call other customers to ask if their poles in our yards can be supplied to the affected utilities. Most of the time they are very gracious and able to help.” As part of the alliance with Entergy, Valmont-Newmark also supplies hardware such as bolts, I-plates and arms with the poles, simplifying the purchasing and procurement process for the utility. As Taylor explained, “They have everything they need to frame the pole and set it.”