Major petroleum refinery and electric utility collaborate to increase value to each organization

Severe pressure to reduce costs, improve reliability, and generate higher shareholder value have helped to promote a successful change in the relationship between a major petroleum refinery and a large electric utility. The relationship has evolved from a traditional customer/supplier relationship to a new business approach based on collaboration. New ideas have created win-win situations for both organizations. The new business approach has produced: improvements in electrical power supply reliability better equipment reliability; reductions in operating and maintenance costs through maintenance effectiveness and improved safety; and sharing of technical expertise and data. In addition, this new business approach has led to fresh ideas in: business practices; maintenance practices; energy efficiency; electrical power monitoring; application of advanced relaying technology; and the setting of performance targets. This paper covers specific applications of a successful utility/industry collaboration. The paper deals with the evolution in the business relationship, describes the practical application of new ideas, details the technical and business benefits captured, outlines the technology transferred, and predicts the expected future developments