Case Study

Reliability Drives Prioritization for Suite of Program Support Services

When facing aging infrastructure and increasing urgency to modernize its grid, Public Service Co. of New Mexico needed a comprehensive review of its assets and a plan of action for replacements and upgrades. The resulting 10-year investment program has led to a strong relationship that has fostered support for additional initiatives within the electric utility.


Challenge

Public Service Co. of New Mexico (PNM) is the largest provider of power in its state. In a state not prone to many major natural disasters, many of the utility’s electrical grid assets are reaching advanced age. As such, the need to evaluate and plan for large-scale replacements had become a priority. During infrastructure evaluations, the magnitude of the required work drove the need for increased staffing to accomplish this undertaking.

Along with large-scale infrastructure replacements, PNM also faced a boom in customer applications due to economic growth in New Mexico. With the prosperity have come home builders, developers and new businesses, bringing solar and electric vehicle expansion, creating additional demand for power.

On top of these challenges, the utility is dealing with many of the same resource constraints found across much of the utility sector. These constraints include competition with other utilities and industries, a highly competitive compensation market, and an aging workforce nearing retirement. The utility decided in early 2022 that it needed help to coordinate and manage its extensive project work.

10

YEARS IN INFRASTRUCTURE INVESTMENT PROGRAM

~150

FULL-TIME EQUIVALENTS SUPPORTING PNM

60%+

REDUCTION IN NEW SERVICE DELIVERY BACKLOG

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Solution

Establishing a plan for asset replacements first required performing a complete system audit. To achieve this, PNM selected Burns & McDonnell in 2021 to establish an asset management plan that would prioritize investments within its system. The portfolio management phase was an effort to prioritize investments that would improve service reliability, system resilience, physical security, cybersecurity, and preparedness for carbon-free operations.

The study was performed by 1898 & Co., a part of Burns & McDonnell, and it set the stage for a 10-year program of capital expenditures and project execution — known as the PNM Infrastructure Investment Program (PIIP). With a plan in hand, the identified projects are being executed year by year, including detailed project scoping, project management, scheduling, cost estimating, engineering design, procurement, project execution and closeout.

 

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Solution

Establishing a plan for asset replacements first required performing a complete system audit. To achieve this, PNM selected Burns & McDonnell in 2021 to establish an asset management plan that would prioritize investments within its system. The portfolio management phase was an effort to prioritize investments that would improve service reliability, system resilience, physical security, cybersecurity, and preparedness for carbon-free operations.

The study was performed by 1898 & Co., a part of Burns & McDonnell, and it set the stage for a 10-year program of capital expenditures and project execution — known as the PNM Infrastructure Investment Program (PIIP). With a plan in hand, the identified projects are being executed year by year, including detailed project scoping, project management, scheduling, cost estimating, engineering design, procurement, project execution and closeout.

The projects under the PIIP umbrella are largely prioritized to tackle the worst-performing and least-reliable assets first. Replacing those assets will help the utility attain better reliability metrics and greater customer satisfaction. These projects include transmission lines, substations, distribution lines, underground lines, and protection and control infrastructure.

The program includes projects ranging from 345-kV down to 4-kV. Substations, 115-kV transmission lines and 12-kV distribution feeders comprise a majority of the assets being addressed.

Additional Programs and Support

While the PIIP was underway, and as the utility was becoming familiar with Burns & McDonnell capabilities, PNM’s department for new service delivery was experiencing — and continues to experience — an extremely high volume of new service applications. Recognizing that this volume of new service applications and the ability to process them in a timely manner would affect overall program success, we engaged and partnered with the PNM’s new service delivery team to support and integrate efforts into the overall program.

Over the course of 2022, a separate Burns & McDonnell team reduced the backlog by 60%. This effort involved contacting customers to review their applications, effectively acting as an owner’s representative for PNM, designing the connections and executing the customer projects. Tackling the backlog applications required applying best practices and techniques to leverage efficiencies.

Further resourcing constraints created another significant need at the utility. PNM needed additional project management staff and other key personnel for ongoing and future project execution. PNM requested that Burns & McDonnell design and implement a project management office (PMO), including governance and processes, as well as provide immediate project management. We are currently implementing this PMO, managing ongoing projects and training incoming replacements for the utility.

On the strength of the growing relationship, we have also provided a wide range of services, including T&D planning studies, transmission connection studies, protection studies, system load flow studies and modeling, routing studies, outage planning services, environmental justice, environmental field and study services, permitting, field quality management, regulatory support, ad hoc engineering services, physical security assessments, NERC compliance, and telecommunications engineering.

Comprehensive Services

Our support for PNM includes project management, project controls, engineering, distribution modernization, protection and controls, telecommunications, field services, quality control, estimation, organizational change management, training, and environmental scientists. All told, Burns & McDonnell has about 150 full-time resources supporting various aspects of PNM’s program needs as of mid-2023. These personnel are spread across four countries and five time zones, providing continuous support.

“The collaboration between PNM and Burns & McDonnell has made it possible for us to take on unprecedented levels of new projects, initiatives and changes for the better.”

Michael Moyer

Manager, Grid Modernization, PNM

Results

For this ongoing series of programs, one of the earliest returns has been building a strong trust-based relationship that has seen the utility and Burns & McDonnell operate as effectively one team. Many local team members are collocated in a single shared office space.

Execution of the PIIP is tackling 500 miles of transmission lines, 3,500 miles of distribution lines and more than 55 substations, with a backlog of projects far surpassing this initial project load. The program will continue to upgrade and replace hundreds more miles of transmission and thousands of miles of distribution over the coming years. Project prioritization is guiding initiatives that will make the biggest impact on reliability as early as feasible.

Support for the new service delivery department has reduced PNM’s backlog in applications by more than 60%, and it is continuing to reduce the backlog further.


Project Stats


Client

Public Service Co. of New Mexico

Location

New Mexico