Development of health indices for asset condition assessment

The drive to continuous improvement in transmission and distribution businesses, fueled by sectoral reform and performance based regulation, demands new and innovative approaches to asset planning decisions. Costs must be reduced, and spending needs to be optimized, without jeopardizing vital business values such as safety and reliability. Among the new and innovative approaches that have been utilized by asset owners are health indices and risk management techniques. Composite health indices represent a novel way of utilizing findings from preventive maintenance activities and asset condition assessment surveys to develop an overall picture of the health of the asset. With risk factors included in the index, a composite risk index can be developed, which provides a powerful tool in identifying requirements for changes in investment and maintenance programs, and for prioritizing identified investment and maintenance initiatives.