Management
and Competitiveness
CTEEP has achieved one of the best
indices of Non-Supplied Energy (ENS)
among Brazilian transmission companies.
The Brazilian electricity industry, a public service that is nearly universal (serving more than 98% of the population), operates under the concession, authorization or permission of the government. It is a service that is highly regulated in order to ensure reliability and quality in supply and reasonable pricing.
The industry's regulatory framework is consolidated by Law No. 9,427/1995, altered by Law No. 10,848/2004, which defines rules for functioning and the activities of generating, transmitting, distributing and selling electrical energy. Compliance with these rules is overseen by ANEEL (National Electrical Energy Agency).
In line with data from the Electrical System Monitoring Bulletin, dated January 2012 and published by the Ministry of Mines and Energy, the service of transporting large amounts of electricity over long distances is done in Brazil using the Basic Network, comprised of 103,897 kilometers of power lines. This extension includes the basic network, plant connections, international connections and 550.6 kilometers in isolated systems. Implementation of more than 21,498.6 kilometers of power lines is expected by 2014.
The National Electrical System Operator (ONS), under ANEEL regulations and oversight, is tasked with the operation and administration of the Basic Network; ONS members are the providers of generation, transmission, distribution and sales and consumers with a direct connection to the Basic Network.
The ONS manages the dispatch of electrical energy from plants in optimized conditions, involving the use of hydroelectric reservoirs and fuel from thermoelectric plants in the National Interconnection System.
The CTEEP transmission system is part of the Basic Network, with 12,993 kilometers of power lines, 18,782 kilometers of circuits, 2,488 kilometers of fiber optic cables and 106 substations with a voltage of up to 550 kV, with a total installed capacity of 45,131 MVA.
In 2011, the CTEEP electrical system transported 144,198 GWh of power. The Company's Non-Supplied Energy (Enes) indicator was 1,057 MWh, the best among all transmission companies in Brazil, considering the complexity of the CTEEP system.
Consumption of domestic electric utilities grew by 3.6% in 2011. According to the Market Summary for January 2012, published by the Energy Research Company (EPE, its acronym in Portuguese), connected to the Ministry of Mines and Energy, consumption reached 430.1 thousand gigawatt-hours (GWh) of electricity, with the commercial (which grew by 6.3% compared to 2010) and residential (4.6%) sectors being notable.
In its Projection for Electrical Energy Demand, the EPE forecasts that electricity consumption will grow around 4.5% per year in the next decade, driven by population and economic growth. Household consumption, more perspective investments in relation to the infrastructure sector, and an injection of funds from international events that will be held in Brazil, such as the World Cup and the Olympic Games, are the basis for this scenario of economic growth.
CTEEP has prepared itself for this scenario, making investments in maintenance and modernization of its assets to continually strive for operational excellence, in the development of employee competencies, and in innovative projects based on research and development.
| Length of power lines by voltage category | Kilometers |
|---|---|
| 440 kV | 6,408.63 |
| 345 kV | 725.61 |
| 230 kV | 1,409.16 |
| 138 kV | 8,855.96 |
| 88 kV | 1,381.03 |
| 69 kV | 2.03 |
Planning for System Expansion
GRI EU19
All of electricity industry ventures begin with the interaction between work groups, which rely on participation from all of the transmitters, distributors and generators by geo-electrical region in Brazil.
These work groups meet to analyze expansions and reinforcements in the electrical system and reach a solution with the least global cost. These consensual solutions are formalized in a document entitled PET (Program to Expand Transmission), with a five year horizon, gained from the studies of these work groups, which analyze the SIN (Portuguese acronym for National Interconnection System) for a ten year horizon.
At the same time and in a very similar fashion, the ONS (National System Operator) uses work groups that rely on participation from every aforementioned segment and also analyzes the national system every year for a three year horizon, with a focus on operation. From this analysis the PAR (Portuguese acronym for Plan for Expansions and Reinforcements) is created, with a three year horizon.
Using the consensual solutions in the PET and PAR, infrastructure projects are defined, which are consolidated in the "Project Consolidation" document, published by the MME (Ministry of Mines and Energy). The MME makes a distinction between the new transmission facilities (which will be bid on) and reinforcement projects in the existing transmission system (which will be authorized for the transmitter which owns the concession).
At the Environmental Licensing stage of the ventures, public hearings are held when necessary to discuss the project with society and the organizations involved.
Strategy
GRI EU14
The CTEEP business strategy
is based on sustainable growth
with a focus on the longevity
of the business and continual
creation of value. With these
objectives, CTEEP invests in
optimizing existing assets through
reinforcements and new connections,
constantly assessing acquisition
opportunities and participating in bids for
transmission assets.
This strategy supports the Company's Vision
of becoming the most important non-government
owned company in the Energy Transmission industry
in Brazil in 2016, with revenues equaling BRL3.5 billion,
25% of which will come from operations outside of the State of São Paulo.
The sustainability of the business is also supported by investment in
system efficiency and on projects to develop new technologies for the transmission industry.
Methodology BSC
The Company has adopted an integrated strategic management model based on the Balanced Scorecard (BSC) methodology and is continually seeking to improve translation of its strategy. As a result, CTEEP revised its strategic map in 2011, defining three market drivers – business sustainability, transmission technology, and reliability of service – in order to guarantee longevity with continual addition of value for shareholders.
In an effort to maintain the pace of growth, the Company will maintain active participation in ANEEL calls for bid in 2012. CTEEP also considers maintaining its revenues to be relevant to its competitive strategy, which is why it maintains systematic participation in forums that are important to discussing matters such as Rate Revision and Renewal of Concessions.
The Company will also work on two fronts to guarantee qualified labor, especially in the technical and transmission areas. One of these fronts is a Young Professionals development program, geared towards attracting and retaining professionals in critical business areas. The other measure is investment in training technical labor for CTEEP and for the electrical industry.
Striving towards innovation and conscious of market trends, the Company mobilized a team with a high technical profile to develop a pilot project to assess the impacts of smart grid technology on transmission.
In an effort to continually improve and gain operational excellence, the Company will implement a behavior management program in 2012 to encourage its employees to adopt a safe attitude in their activities, therefore reducing the risk of accidents. With a focus on making services more reliable, CTEEP will also invest in adapting the RCM (Reliability Centered Maintenance) philosophy, considering the diversity of currently operating assets.
Risk Management
The Integral Risk Management Policy is currently a part of all Company information and allows for mapping, monitoring and forecasting for managing risks that may interfere in reaching strategic planning goals, which impact business results or place CTEEP's operational efficiency at risk.
With the aid of Integral Risk Management (IRM) tools, based on the Enterprise Risk Management (ERM) model, the Company identifies risks and proposes initiatives to manage them in every process.
CTEEP has currently mapped 38 risk scenarios that are monitored by Company executives. Monitoring consists of quarterly feedback of information on each risk scenario and includes an analysis of causes, probabilities, impacts and the status of the administrative measures for each scenario.
The dynamic behavior of these risk scenarios along with the quarterly revisions have resulted in advancements in creating and implementing administrative measures aimed at mitigating risks and reducing the degree of vulnerability in each scenario, based on the precautionary principle.
The IRM covers topics such as:
- Participation in transmission bids;
- Corporate governance;
- Relationship with subsidiaries.
By associating Integral Risk Management with Internal Controls, the Company has strengthened monitoring of administrative measures and expanded risk assessment to the level of its respective processes. It is therefore able to prematurely identify any failures prior to materialization of the risk and enhance its Risk Map.
CTEEP also relies on a manual of specific guidelines for dealing with financial risks and has adopted swap derivatives (exchange rate hedge) financial instruments in order to neutralize exchange rate risk arising from loans taken out in foreign currency.
Concession Agreement 059/01
Among the aspects monitored by Integral Risk Management is renewal of Concession Agreement 059/01, which allows the Company to operate certain energy transmission assets up to July 2015. On December 31, 2010, the agreement accounted for 86.9% of CTEEP's Allowed Annual Revenue (consolidated). According to stipulations of the concession agreement, the Company is preparing to express its interest in remaining the concessionaire for the current assets pending acceptance of the concession renewal conditions.
Emergency Service Plan
CTEEP has an Emergency Service
Plan for power lines (PLs) in the
event of metallic structures falling
and of the electrical system losing
availability. The plan contains logistical
information and resources for recovery of
PLs aimed at causing the least impact to the
electrical system, as well as ensuring the health
and safety of employees.
The Company holds periodic training of
maintenance teams to refresh, update and discuss
the Emergency Service Plan, involving measure related
to the community, authorities and industrial clients so as
to advise them and prevent any risk to people or facilities or
industrial client equipment.
CTEEP keeps government authorities and regulatory agencies aware of the details of occurrences, as well as of the recovery timelines, so that these parties may approve and monitor the progress of preventive or corrective plans of action. Information is disclosed by the CTEEP Press Agent through several communication channels, as well as on the Company's website.
CTEEP has a system for registering all emergencies of an environmental nature. In this process, a system is not established for identifying the volume spilled or for assessing the environmental impacts arising from these spills. When the event is significant, CTEEP hires a company specializing in recovery of the affected area, in correct final disposal of waste generated and in other actions needed for emergency service.
In 2011, 17 occurrences of small oil leaks at some substations were registered in the EMS (Environmental Management System). All of these occurrences were analyzed and treated pursuant to what is set forth in the EMS, which are detailed in the critical analyses from local committees in this system.
Quality Management
In 2011, CTEEP finalized mapping of 100% of its processes and activities. Mapping began in 2007 with the goal of ensuring continued improvement and increased productivity of the entire operation, reaching a high level of detail that allowed for appropriate sizing of work teams and the competencies needed for each process, among other benefits.
In 2011, the Company restarted the ISO 9001:2008 recertification process in the Operation, Maintenance and Projects areas.
The Company's Quality Management System follows the guidelines of the ISO 9001:2000 standard. CTEEP holds training geared towards the subject of Processes, in which 68 employees took part, including employees in leadership positions; this training provided information on how the new CTEEP Process Governance Model works and its benefits.
Management of Intangible Assets
GRI EU14
For CTEEP, the creation and dissemination of knowledge and the strengthening of energy transmission business technologies are essential to reaching its strategic goals.
Innovation and Knowledge Management at CTEEP contributes to making the environment of innovation part of the day to day for each employee and it encourages sharing of knowledge and the search for innovative solutions. This sharing can result in increased efficiency, lower costs, higher productivity and improved quality of service provided.
The "Strategic Modeling of Knowledge Management at Transmission Companies" project mapped critical knowledge areas that are relevant to CTEEP's business, identifying key workers and defining tools and methods for facilitating the capture, sharing and dissemination of knowledge.
In 2011, CTEEP launched the idea channel, a tool aimed at promoting continual improvement and innovative solutions; in its first year, 321 ideas were suggested.
Quality Management
In 2011, CTEEP finalized mapping of 100% of its processes and activities. Mapping began in 2007 with the goal of ensuring continued improvement and increased productivity of the entire operation, reaching a high level of detail that allowed for appropriate sizing of work teams and the competencies needed for each process, among other benefits.
In 2011, the Company restarted the ISO 9001:2008 recertification process in the Operation, Maintenance and Projects areas.
The Company's Quality Management System follows the guidelines of the ISO 9001:2000 standard. CTEEP holds training geared towards the subject of Processes, in which 68 employees took part, including employees in leadership positions; this training provided information on how the new CTEEP Process Governance Model works and its benefits.
Management of Intangible Assets
GRI EU14
For CTEEP, the creation and dissemination of knowledge and the strengthening of energy transmission business technologies are essential to reaching its strategic goals.
Innovation and Knowledge Management at CTEEP contributes to making the environment of innovation part of the day to day for each employee and it encourages sharing of knowledge and the search for innovative solutions. This sharing can result in increased efficiency, lower costs, higher productivity and improved quality of service provided.
The "Strategic Modeling of Knowledge Management at Transmission Companies" project mapped critical knowledge areas that are relevant to CTEEP's business, identifying key workers and defining tools and methods for facilitating the capture, sharing and dissemination of knowledge.
In 2011, CTEEP launched the idea channel, a tool aimed at promoting continual improvement and innovative solutions; in its first year, 321 ideas were suggested.
Technology Prospection
The Company holds training
courses and encourages its
employees to take part in programs
such as the Research & Development
program, workshops, congresses and
other technology events in the electrical
industry and, more specifically, in the
transmission market.
In 2011, CTEEP sought to internalize
the results of the technology prospection
map, which was the result of a workshop
held in 2010, which discussed industry trends
and advanced technologies, such as WAMS
integrated monitoring systems and integrated and
real-time WACS coordinated control systems, smart
grids and FACTS (automated methodologies and technologie
s for improving transmission system control and data monitoring) and
HVDC technology, which allows for better electrical system performance by carrying out transmission of large blocks of energy over large distances using continual current at high voltages.
R&D
For CTEEP, investment in Research
and Development (R&D) transcends
regulatory requirements: it is one of
the mechanisms for creating, experimenting,
expanding and managing corporate and
industry know-how, aimed at significant
results for the sustainability of its business.
From a strategic perspective, CTEEP made
substantial advancements in 2011 by structuring
an environment that fosters innovation. Within this
environment, the R&D program is a relevant part of the
technological planning process, creating opportunities to
monitor new technologies, to educate, to train and to integrate
all
of the links in the innovation chain.
Joint efforts by CTEEP employees and the country's top university researchers, research centers and manufacturers have garnered quite satisfactory results for the Company. By the end of 2011, 77 projects had been finalized, with four patent requests already registered, in addition to significant scientific production that contributed to the electrical industry.
In 2011, BRL8.8 million were invested in R&D for 21 on-going Company projects and two projects classified as strategic, since they are on topics proposed by ANEEL. These 23 projects are set to result in 42 academic titles and development of research by more than 60 CTEEP employees.
Furthermore in 2011, CTEEP held its fourth R&D Program results presentation workshop. The workshop gathered employees, researchers and representatives from various electrical industry organizations who bore witness to the Company's willingness to spread the knowledge it had acquired, sharing the benefits achieved with R&D products with the electrical industry.
More than working on developing innovative research, the Company is focused on applying the results of this research.
CTEEP's goal is to create new software registrations and patents, new technologies, methodologies and processes that leverage the quality and reliability of transmission services and contribute to greater efficiency and greater productivity. The table below shows some of the R&D projects developed in 2011:
| Project | Project Goal | Amount Invested (BRL) |
|---|---|---|
| Development of a real time System to Analyze and Monitor the Dynamic of the Electrical Network, applying Synchronized Phasor Measurement, to enhance Supervisory, Control and Protection Processes | To develop and implement a system to monitor and analyze the dynamic performance of the electrical system, based on synchronized phasor measurements, in the CTEEP transmission network. | 1,515,234.86 |
| Development of a Sliding Suspension clamp to prevent cascading of Transmission Towers | To develop suspension clamps with self-sliding features, for electricity transmission line cables, which allow for controlled sliding of the cables, in order to prevent tower rupture collapse caused by the falling of an adjacent tower. | 675,829.60 |
| Identification of Potential Green Shield Areas, as an alternative to mowing areas not suitable for agriculture and Permanent Preservation Areas (PPA) under the PLs | To develop a technique that allows for occupation of PPAs with small native species that reduces or minimize maintenance done by trimming or mowing and cuts expenditures on human resources used for monitoring. | 1,019,850.20 |
| Use of new methodologies to locate oil leaks in OF type cables | To develop a local technology, based on the use of perfluorocarbon (PFT) gas traits to carry out localization of oil leaks in OF cables, in the fastest possible time, without the need to shut down the line. | 783,950.75 |
| Development of Computer Methodology and Tools for Automatic Event Analysis | To develop computer models, methods and tools aimed at automating the process of analyzing events in the electrical power transmission system, based on the use of computer intelligence techniques. | 688,423.00 |
| Allocation of FACTS Technologies in Transmission Systems to benefit Network Operation | This project is aimed at assessing the chance to install FACTS equipment in the transmission network, particularly in the Brazilian electrical industry's Basic Network. | 1,484,649.42 |
| Real Time Adaptive Islanding System based on Monitoring the stability of the Transmission Network | Construction of an online real-time computer system based on algorithms to detect risk situations in the CTEEP transmission system. When the National Interconnected System is wholly or partly found to have a point of operation that is capable of affecting the supply of part or all of the State of São Paulo, the system determines and automatically executes actions aimed at maintaining supply of part of the load that would have been affected, using separation of transmission stretches in order to isolate this load causing the disturbance and form stable islands. | 1,814,605.96 |
| Construction of an integrated meteorological lightning, rain, temperature and wind sensor, which transmits data in real time for insertion on a WEBGIS platform with a severe weather alert system | To develop equipment to measure lightning, rain, temperature and wind. Ten sensors will be developed. Real time insertion of data on a GIS platform associated with short-term weather forecasting and issuance of meteorological warnings. Definition of criteria for issuing alerts. |
2,646,151.24 |