Growing with Technology Developing and applying new technology is becoming commonplace at CUC as it continues to grow while providing reliable electrical service and maximum customer value to Grand Cayman. Several major projects have been completed or are underway in generation, T&D and information systems, all of which promise to maintain CUC's position as among the most innovative utilities in the Caribbean. Generation The 2000 generation expansion project was completed in June with the commissioning of two 12.25 MW V4860 engines, representing Phase I of the 10-year generation strategic alliance agreement with MAN B&W Diesel AG of Germany (MAN). The units are located in a new power plant engine room at CUC's North Sound Plant and will replace older, less efficient generating units nearing the end of their economic life of approximately 20 years. The MAN project differed from previous generation expansions in its reliance upon cutting-edge technology and included the following features: The installation of the Computer Controlled Surveillance Engine Diagnosis System (COCOS). This system uses trend analysis to enable the unit operators to recognize irregularities at an early stage and take remedial action accordingly. COCOS ensures maximum operational reliability, dependability and economic efficiency by providing employees with comprehensive decision-making tools, avoiding lengthy downtimes and achieving significant cost savings; The installation of soundproofing materials in the new engine room to reduce the level of noise transmitted to other areas of the power plant; The erection of a 50-meter exhaust stack adjacent to the new engine room. The stack is 20 meters higher than CUC's other engine stacks and will drastically reduce the NOX/SOX content of emissions, thereby improving the air quality surrounding the plant. The implementation of other noise and energy reduction measures such as water-cooling equipment and radiators. Furthermore the new generating units have been tied into the computerized Integrated Control System (ICS) installed by Stork Protech of the UK. The ICS automatically monitors and controls CUC's generating plant and T&D system, provides operating staff with more accurate and timely information and creates a more consistent and efficient power supply. Several older generating units are also tied into the system, as are the West Bay and Bodden Town substations using new SCADA technology. The ICS is located in CUC's new 3.200-square foot control room building designed to withstand 200-mph winds, and final transfer of all units and T&D systems is scheduled for April 2001. Another technology-driven project on the generation side is the new Alfa Laval Oily Waste Separation System (OWS) commissioned in January 2000. The OWS separates oily waste flow from our generating units and from the cleaning of engine parts into three streams: water, sludge and dirty oil. The environmentally safe water is disposed of onsite while the sludge and dirty oil are collected in tanks for offshore transportation. T&D Systems CUC is also undertaking technology-driven capital projects on the T&D side in conjunction with its seven-year substation strategic alliance agreement with ABB T&D Power Company, Inc. of the USA. Phase I of this agreement, the rebuilding of the 69KV substation at the North Sound Plant (including the installation of three new 69KV power transformers), was completed in summer 2000. Other new T&D projects include: The recent installation of two overhead 24-fibre fibreoptic lines from CUCﾒs North Sound Plant to its existing West Bay and Bodden Town substations. The lines are used for relay protection and control of the remote substations from the North Sound Plant; The installation of two 69KV submarine cables across the North Sound as part of CUCﾒs plans to build a looped transmission system over the next seven years. These cables will be installed in an environmentally friendly manner without dredging the sound. The new transmission system, when completed, will enable CUC to handle 100% of its system load with maximum reliability; The construction of new 69KV gas-insulated substations (GIS) in South Sound, Frank Sound, East End, Seven Mile Beach and George Town over the next seven years. The GIS substations will be capable of withstanding 150-mph winds and have a 40-year life; The construction of a new 69KV transmission circuit from Bodden Town to Frank Sound, a 13 KV underbuild circuit and a fibreoptic circuit to be completed in May 2001. Knowledge Management The term Knowledge Management is becoming a popular term in the business community. Knowledge Management is the process by which an organisation identifies its knowledge resources, captures these resources, and provides open access to them in a systematic fashion. It is a logical extension of existing processes and projects at CUC, and our investments in information technology are designed to automate repetitive processes and to provide information that can be accessed quickly and productively. For example, our Intranet makes a growing wealth of information available to our employees, who can search for training materials and resources, research employment policies, review an online library of over 3,000 technical plans and drawing and keep abreast of CUC news and activities. Our website (www.cuc-cayman.com) has been revamped to provide considerable information for our customers and employees alike. Customers will soon be able to access their service history and billing information online with appropriate privacy and security. Our Integrated Voice Response System ("IVR") was launched in May 2000 and can handle 14 service calls simultaneously and promptly. It identifies each customer's service district, advises him or her if CUC is aware of an outage in his or her area and assists in locating any new outages. At the same time, our on-duty staff can deal with the technical issues of resolving the problem and still be aware of any customer messages that would have been otherwise lost in a busy signal. The system automatically returns each customer call when the outage is resolved to ensure that no residual problems exist.