Invisible Risks – are you playing the odds?
Electrical Failure. The warning signs are often invisible to the untrained eye. Left unchecked, failure happens…. Suddenly. And when it does, it can be catastrophic. These are the top six risks that can be avoided by establishing a multi year preventive maintenance plan for your electrical distribution system.
1. Business interruption losses Power system failures are among the most common and costly types of equipment breakdown.
2. Increased life and safety risk The monetary cost of a single arc flash incident can exceed a million dollars per incident, including medical expenses and the cost of equipment replacement, downtime, and insurance.
Source: Ferraz Shawmut
3. Increased operating costs Lack of preventive maintenance results in an estimated 12% to 18% cost increase over that found in a proactive maintenance program.
Source: US Department of Energy
4. Excessive utility costs Voltage imbalances of as little as 5% in motor power circuits result in a 50% reduction in motor life expectancy and efficiency in 3-phase alternating current motors.
Source: Electric Power Research Institute
5. Decreased asset life expectancy A well maintained property will operate more efficiently, last longer and command a higher value than a property without the benefit of a comprehensive preventive maintenance program.
Source: Building Owners and Managers Association
6. Increased insurance premiums In 2001, more than 10% of the causes of fire in non-residential buildings in the U.S. are linked to the distribution of electricity with an economic loss of $17.5 million and 22 human lives.
Source: US Fire Association