Blackouts: "Definitely on the rise"

The Super Bowl blackout, New York without power after Sandy, a blizzard leaves the northeastern United States in the dark. Recent headlines have highlighted the fragile nature of the country’s electricity infrastructure. Risk consultant Larry Hunter talks about the challenges and risks that power outages pose and how to meet the challenge.

 

Are blackouts on the rise in the US? And if so, why?

Larry Hunter: Blackouts are on the rise worldwide. Countries such as China are investing in more grids as they are acutely aware that taking their grid down can substantially weaken them. In the United States, most of our power grid and power plants were built in the 1950’s, so our infrastructure is aging to say the least. Power still mainly comes from old coal fire plants, and transformers are 60 years old on average. Most of them were designed to last about 20 years.

 

Is something being done?

In 2003 the large blackout in the northeast of the US, a densely populated area, raised a lot of attention to the topic. Since then there have been some initiatives on smarter grids, but generally, we are still struggling with our aging infrastructure.

 

You work mainly work with large corporate clients. How do they approach this issue?

Think of a glass or metal plant. When their raw materials such as liquid glass are heated up and a power outage occurs, the extent of the damage can be substantial. As engineers, we help our clients look at what areas of the production need to be considered what are called “critical loads”. Those aren’t always hot works. For instance, in a semi-conductor factory where cleanliness is essential, the cleaning facilities might be a “critical load”. These need to be backed up by alternative power supply like an emergency generator or the factory’s own power plant.

 

What other measures are there besides backup power?

It’s important to build in redundancy in the power supply, usually using at least two feeds. During the Super Bowl only half of the stadium went dark when the power went out. That’s because even though the stadium in New Orleans is fairly old, it was fed from two power sources. The cameras were certainly critical loads as was the emergency lighting like exit signs, which are usually powered by local batteries.

 

Do designers always consider these risks?

It varies, which is an issue because we are all dependent on electricity. Just look at New York after the storm Sandy. Only some of the elevators were put on critical load and about 95 percent of the pumping for the water supply was powered by electricity. Something people tend to forget is that even the sewage facilities depend on electrical pumps. Gas stations also use electrical pumps, and thus cease to function unless they have an emergency supply.

 

We seem to be having more and more big storms. Is that linked to more power outages?

That’s complicated by our infrastructure problem, but nonetheless the US is very susceptible to natural catastrophes. That’s why we have extensive discussions with our clients on how to secure their plants before the power goes out. When the winds hit the transmission lines, there can be power failures or surges. So a client’s machinery needs to be secured in order to avoid major losses.

Larry Hunter has worked at Allianz Risk Consulting for nine years, specializing in power generation.
Larry Hunter has worked at Allianz Risk Consulting for nine years, specializing in power generation. He has more than 30 years of experience in the industry, starting to work on power plants for the Navy, Lockheed Martin, FM Global and the US Department of Energy. Based in Houston as an account engineer, he spends a couple of month a year in Asia, training other Allianz engineers. Allianz Risk Consulting is a subsidiary of the industrial insurer Allianz Global Corporate & Specialty.
Much of the electrical infrastructure in the US was built in the 1950s

Much of the electrical infrastructure in the US was built in the 1950s

What about after a storm?

The first concern after a storm is communication. Power can be out for a few days, and then cell phone batteries and the cell phone towers will stop working. We often ask our clients: How did you communicate in the old days? Then we encourage them to keep alternative means such as radio-based communication as a back-up or to make sure they can get an internet connection.

 

So a power failure can make a bad situation worse?

Sure. For instance, fires are a lot more dangerous when there is a power outage. The fire hydrants don’t have any pressure to them because the city's electric driven supply pumps have also stopped due to the outage. The fire fighters don’t have any pressurized fire water from the hydrants to fight the fires when they open the hydrants. Again, years ago there used to be more gravity-fed water supplies which fed the hydrants even in an electrical outage; but not anymore. This may well be a good thing to keep in mind for someone concerned about risks.

 

Are there any ways consumers of electricity can mitigate their risks?

For private homes, there are small things, such as filling up your bathtub before a storm hits to make sure you have a water supply. Also, check that you have flashlights in working order and other emergency supplies in stock. If electricity is essential for your home, you might want to get a small gas-powered generator for emergencies, as usually the gas supply is independent from the power supply so your gas might still work during a power outage.

 

And what about business consumers?

On a corporate scale, we work with our clients on their business continuity plans. The plans identify their bottlenecks and provide contingency plans for instance where they could shift production should a power outage hit.

 

If you could wish for one thing to improve electricity infrastructure, what would it be?

In the United States it would be great if the government could get more involved in infrastructure issues. Keeping in mind that we have dropped from the top five countries to the twenties in terms of general infrastructure over the past decades, we should really mobilize all resources to tackle this issue.

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Heidi Polke
Allianz Global Corporate & Specialty
Phone +49.89.3800-14303
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Jacqueline Maher
Allianz Global Corporate & Specialty
Phone +1(646) 472-1479
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