There is a serious problem in the electric power utility industry that is getting worse every day. Almost half of the installed infrastructure has reached the end of its original design life. Because the assessment and replacement of these components is expensive and difficult, and because it is very challenging for new installations to keep up with new demand, there are many that fail in-service causing power outages and other consequences. But if mitigation steps are not taken, or repairs are not performed, the potential liability when components fail is huge. A ClampStar® applied to a deteriorating fitting is not only the most economical means of preventing a premature and unexpected failure but also prevents potential injury to the public and avoids the extraordinary costs associated with the liability issues.
Because they are nearing or past the end of their life or have been affected by corrosion, there are potentially 3.2 million installed electrical splices that may fail each year in the foreseeable future. With an estimated average cost of $600 to repair each failing distribution splice, the potential annual total cost could reach a staggering $1.9 billion and that figure dramatically increases when transmission connectors are included.
The U.S. economy is dependent upon a reliable and increasing supply of electric power. The Federal Energy Regulatory Commission, pursuant to the Energy Policy Act of 2005, recently finalized landmark, new rules on the certification of an Electric Reliability Organization and the procedures for the establishment, approval and enforcement of mandatory electric reliability standards.
The total U.S. supply of electric power in 2005 was 4,062 billion kilowatt-hours and is forecast to increase by 2% per year over the next 20 years. While there is an increasing demand for new electric power capacity, routes to deliver that power to the market are also needed. From 2009-2015 the 283,000 transmission miles are projected to grow 2.5%-3% annually resulting in yearly transmission spending of $10 billion-$12 billion in real 2006 dollars. Another $3 billion-$6 billion will be spent adding power distribution lines. CLASSIC CONNECTORS INC. is here to help meet this need.
There is also an increased need to repair and replace large portions of our existing power grid. 30%-50% of the transmission and distribution network is 40-50 years old which is well beyond the original design life of many of its components. A 2005 study for the Department of Energy estimated that power outages cost the U.S. economy roughly $80 billion annually. Many of these outages are due to premature product failures and replacement of components that are nearing or have reached the end of their normal life.
The Clamp Star® line of connector correctors will extend the life of the connections on these networks and prevent the end-of-life failures from becoming unexpected outages with all their related consequences.