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ANTONIO R. VILLARAIGOSA
Commission
,Mayor
H. DAVID NAHAL President
EDITH RAMIREZ. Vice PreS/den!
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RONALD F. DEATON, Gerieru! M"naJ¡er
MARY D. NICHOLS
NICK PATSAOURAS
FORESCEE HOGAN-ROWLES
BARBARA E. MOSCHOS, Seaetary
June 27,2007
The Honorable City Council
Offce of the City Clerk
Room 395, City Hall
Mail Stop 160
Attention:
member Jan Perry
Chairperson, Energy and Environment Committee
Council
Honorable Members:
Subject: Council File No. 07-1850 - Mineral Seed Oil/ Cooling Transformers
This is in response to the subject referenced motion and the request that the
Los Angeles Department of Water and Power (LADWP) report back to the City Council
on the feasibility of using new alternative fluids to mineral seed oil for use in cooling
transformers.
LADWP currently uses mineral oil in all of its distribution transformers as a coolant and
an insulation medium. The use of mineral oil in transformers has been a standard
practice for over one hundred years. Manufacturers have offered various alternatives to
mineral oil over the years including R-Temp, silicone oil, and various seed oils.
In the past eight years, two transformer manufacturers have introduced seed oil
substitutes for standard mineral oiL. The most aggressive manufacturer/marketer of
seed oil based fluids, Cooper Power Systems Inc which sells FR3, has held several
educational seminars at LADWP and other Electric Utilities. LADWP's Engineering
Services Division has researched the merits of the seed oil and discussed the matter
with the following company representatives: Peter Roth (Cooper Power Systems), Jose
Fernandez (ABB), John Marlow (ABB South Boston facility) and Ed Stockman (SMUD).
Water and Power Conservation.. ,a way of life
111 North Hope Street, Los Angeles, California 90012-2607 Mailing address: Box 51 ILL, Los Angeles 9005 i -5700
Telephone: (213) 3fi7-421 i Cable address: ReLydeanmaoofrrecea..ao;e
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The Honorable City Council
Page 2
June 27, 2007
Manufacturers' claims for seed oil include biodegradable, increased KVA capacity,
extended life, non-hazardous material, and a higher flash point (fire resistance). Seed
oil has only been used in utility transformers for approximately five years. There is little
industry testing available, particularly with breakdown characteristics, by-products,
validation of increased life and temperature. There are only two companies (ASS and
Cooper Power Systems) selling this product and the overall cost premium is 15% over
the standard transformer with mineral oiL.
The seed oil has a higher viscosity than mineral oil so the fluid is not a direct
replacement for standard mineral oiL. The transformer has to be designed for it. To
implement a transformer inventory with two types of oil will require LADWP to have two
different storage and delivery systems for the two different transformer fluids (mineral oil
and FR3). The seed oil by itself is 400% more expensive than standard mineral oil and
would most likely be a sole source option for oiL.
Manufacturers also claim that seed oil transformers can run holler than mineral oil
transformers for increased capacity and longer life. This is counter to LADWP's
approach following the July 2006 Heat Storm. We are now specifying transformers that
run cooler. Generally, heat degrades the insulation, and lower temperature
transformers operate cooler, last longer, and have more overload capability. In addition,
the transformer specification changes made since the Heat Storm are features that any
vendor can supply. It is not a sole source item.
LADWP continually evaluates new technology. Two mobile substation transformers
filled with FR3 seed oil were purchased two years ago. Additionally, LADWP purchased
78 distribution transformers filled with FR3 seed oil for test and evaluation this year:
sixty overhead units(20-25 KVA, 20-37.5 KVA, 20-50 KVA)manufactured by Cooper
Power Systems Inc. and eighteen submersible units(6-25 KVA, 6-37.5 KVA, 6-50 KVA)
manufactured by Howard transformers. These units are for test and evaluation. The
seed oil transformers will be marked as experimental both on the physical units and on
the circuit map locations. After a period of five years a sampling of transformers will be
inspected, tested, dissected, and analyzed to better determine the merits of switching
from mineral oil to seed oiL.
The Honorable City Council
Page 3
June 27, 2007
If you have any questions or if further information is required, please call me at
(213) 367-1338, or have your staff contact Ms. Winifred Yancy, Governmental Affairs
Representative, at (213) 367-0025.
5i"l!.. jg~ a i;
Ronald F. Deaton
General Manager
member Eric Garcetti, Vice-Chair, Energy & Environment Committee
member Tony Cardenas, Member, Energy & Environment Committee
Council
member Wendy Greuel, Member, Energy & Environment Committee
Council
member Tom LaBonge, Member, Energy & Environment Committee
Council
Gerry F. Miller, Chief Legislative Analyst
Winifred J. Yancy
c: Council