From: Hirsch, Bruce R [mailto:Bruce.R.Hirsch@bge.com]

Sent: Monday, October 24, 2011 2:39 PM

To: 'Ryan, Paul'; Phil Hopkinson; Richard Parker; Alex Hofmann; Andrew Delaski;

Aris Marantan; Art Rosenfeld; Bob Saint; Brian Coffey; Bruce Smith; Caitlin

Johnson; Carlos Gaytan; Caskey, John; Charlie Drexler; Charlie Stevens; Chris

Bolduc; Clark Silcox; Creevy, Jim; Dan Cohen; D aniel Youn g; Eric Peterson;

Freeman, Jeremiah; Gary Fernstrom; Greg Coulter; Greg Rosenquist; James Lass;

Jennifer Tiedeman; Jerry Corkran; Jerry Hodge; Jerry Schoen; Joanna Mauer; John

Cymbalsky; John Rossetti; Katie Coughlin; Ken Winder; Mahesh P. Sampat; Matt

Miller; Matthew Nardotti; Meg Waltner; Meyers, Aaron; Michael Hyland; Michael

Rivest; Millure, Dave; Phil Harter; P olinski, R aymond; Puesh Kumar; Rick

Anderson; Rob Greeson; Robert Berman; Robert van Buskirk; Robin Roy; Scott Beck;

Simmons, Chuck; Steve Nadel; Steve Rosenstock; Tim Ballo; Tom Eckman; Wes

Patterson; Zhimei Luo; maxinesavitz@aol.com

Subject: RE: Amorphous Core Experience at BGE

Thanks,

This explains both the comments I received and the current s tatus of r ecycling

the amorphous steel.

Bruce

‐‐‐‐‐ Original Message

‐‐‐‐‐

From: Ryan, Paul [mailto:Paul.Ryan@hitmet.com]

Sent: Monday, October 24, 2011 2:34 PM

To: Hirsch, Bruce R; Phil Hopkinson; Richard Parker; Alex Hofmann; Andrew

Delaski; Aris Marantan; Art Rosenfeld; Bob Saint; Brian Coffey; Bruce Smith;

Caitlin Johnson; Carlos Gaytan; Caskey, John; Charlie Dre xler; Char lie Stevens;

Chris Bolduc; Clark Silcox; Creevy, Jim; Dan Cohen; Daniel Young; Eric Peterson;

Freeman, Jeremiah; Gary Fernstrom; Greg Coulter; Greg Rosenquist; James Lass;

Jennifer Tiedeman; Jerry Corkran; Jerry Hodge; Jerry Schoen; Joanna Mauer; John

Cymbalsky; John Rossetti; Katie Coughlin; Ken Winder; Mahesh P. Sampat; Matt

Miller; Matthew Nardotti; Meg Waltner ; M eyers, Aaron; Michael Hyland; Michael

Rivest; Millure, Dave; Phil Harter; Polinski, Raymond; Puesh Kumar; Rick

Anderson; Rob Greeson; Robert Berman; Robert van Buskirk; Robin Roy; Scott Beck;

Simmons, Chuck; Steve Nadel; Steve Rosenstock; Tim Ballo; Tom Eckman; Wes

Patterson; Zhimei Luo; maxinesavitz@aol.com

Subject: RE: Amorphous Core Experience at BGE

Dear Br uce

,

Good question. Hitachi Metals has developed a recycle program which addresses

your question along with providing environmental benefits beyond just salvage

value.

Please see the attached press release.

Sincerely,

Paul C. Ryan

paul.ryan@hitmet.comProduct Group Head

Hitachi Metals America

‐ Metglas Inc.

Tel: +760

‐ 720

‐ 0408

Mobile: +760

‐ 415

‐ 3469

Fax: +760

‐ 720

‐ 0626

‐‐‐‐‐ Original Message

‐‐‐‐‐

From: Hirsch, Bruce R [mailto:Bruce.R.Hirsch@bge.com]

Sent: Monday, October 24, 2011 8:35 AM

To: Ryan, Paul; Phil Hopkinson; Richard Parker; Alex Hofmann; Andrew Delaski;

Aris Marantan; Art Rosenfeld; Bob Sai nt; Brian Cof fey; Bruce Smith; Caitlin

Johnson; Carlos Gaytan; Caskey, John; Charlie Drexler; Charlie Stevens; Chris

Bolduc; Clark Silcox; Creevy, Jim; Dan Cohen; Daniel Young; Eric Peterson;

Freeman, Jeremiah; Gary Fernstrom; Greg Coulter; Greg Rosenquist; James Lass;

Jennifer Tiedeman; Jerry Corkran; Jerry Hodge; Jerry Schoen; Joanna Mauer; John

Cymbalsky; John Rossetti; K ati e Coughlin; Ken Winder; Mahesh P. Sampat; Matt

Miller; Matthew Nardotti; Meg Waltner; Meyers, Aaron; Michael Hyland; Michael

Rivest; Millure, Dave; Phil Harter; Polinski, Raymond; Puesh Kumar; Rick

Anderson; Rob Greeson; Robert Berman; Robert van Buskirk; Robin Roy; Scott Beck;

Simmons, Chuck; Steve Nadel; Steve Rosenstock; Tim Ballo; Tom Eckman; Wes

Patters on; Zhimei Lu o; maxinesavitz@aol.com

Subject: RE: Amorphous Core Experience at BGE

Paul,

Is there any salvage value to amorphous steel? I am being told that salvage

Companies have told some Utilities that the steel has no salvage value.

Bruce

‐‐‐‐‐ Original Message

‐‐‐‐‐

From: Ryan, Paul [mailto:Paul.Ryan@hitmet.com]

Sent: Thursday, October 20, 20 11 8:49 AM

To: Phi l Hopkinson; Hirsch, Bruce R; Richard Parker; Alex Hofmann; Andrew

Delaski; Aris Marantan; Art Rosenfeld; Bob Saint; Brian Coffey; Bruce Smith;

Caitlin Johnson; Carlos Gaytan; Caskey, John; Charlie Drexler; Charlie Stevens;

Chris Bolduc; Clark Silcox; Creevy, Jim; Dan Cohen; Daniel Young; Eric Peterson;

Freeman, Jeremiah; Gary Fer nstrom; Gr eg Coulter; Greg Rosenquist; James Lass;

Jennifer Tiedeman; Jerry Corkran; Jerry Hodge; Jerry Schoen; Joanna Mauer; John

Cymbalsky; John Rossetti; Katie Coughlin; Ken Winder; Mahesh P. Sampat; Matt

Miller; Matthew Nardotti; Meg Waltner; Meyers, Aaron; Michael Hyland; Michael

Rivest; Millure, Dave; Phil Harter; Polinski, Raymond; Puesh Kumar; Rick

Anderson; Rob Gre eson; Robe rt Berman; Robert van Buskirk; Robin Roy; Scott Beck;

Simmons, Chuck; Steve Nadel; Steve Rosenstock; Tim Ballo; Tom Eckman; Wes

Patterson; Zhimei Luo; maxinesavitz@aol.com

Subject: RE: Amorphous Core Experience at BGE

Dear all,

As the saying goes, a picture is worth a 1,000 words. I'm attaching a few slides

showing th at amor phous cores can easily be opened and closed multiple times;thereby allowing repair of a transformer by coil replacement. In other words,

epoxy does not prevent disassembly as noted below.

Additionally, considerable advances in amorphous core transformer techniques and

manufacturing practices have been implemented since the commercial launch of the

product in the 1980's. An estimated 2.3M amorphous core transformers have be en

produce d worldwide with no reported core failures.

Lastly, the wind farm incident described below was related to imported

transformers from Asia which had some manufacturing issues that have since been

reported to be corrected by the OEM.

I hope this helps.

Sincerely,

Paul C. Ryan

paul.ryan@hitmet.com

Product Group Head

Hitachi Me tals Am erica

‐ Metglas Inc.

Tel: +760

‐ 720

‐ 0408

Mobile: +760

‐ 415

‐ 3469

Fax: +760

‐ 720

‐ 0626

________________________________________ From: Phil Hopkinson [mailto:phopkinson@hvolt.com]

Sent: Friday, October 14, 2011 6:25 PM

To: Hirsch, Bruce R; 'Richard Parker'; Alex Hofmann; Andrew Delaski; Aris

Marantan; Art Rosenfeld; Bob Saint; Brian Coffey; Bruce Smith; Caitlin Johnson;

Carlos Gay tan; Ca skey, John; Charlie Drexler; Charlie Stevens; Chris Bolduc;

Clark Silcox; Creevy, Jim; Dan Cohen; Daniel Young; Eric Peterson; Freeman,

Jeremiah; Gary Fernstrom; Greg Coulter; Greg Rosenquist; James Lass; Jennifer

Tiedeman; Jerry Corkran; Jerry Hodge; Jerry Schoen; Joanna Mauer; John Cymbalsky;

John Rossetti; Katie Coughlin; Ken Winder; Mahesh P. Sampat; Matt M ill er; Matthew

Nardotti; Meg Waltner; Meyers, Aaron; Michael Hyland; Michael Rivest; Millure,

Dave; Phil Harter; Polinski, Raymond; Puesh Kumar; Rick Anderson; Rob Greeson;

Robert Berman; Robert van Buskirk; Robin Roy; Ryan, Paul; Scott Beck; Simmons,

Chuck; Steve Nadel; Steve Rosenstock; Tim Ballo; Tom Eckman; Wes Patterson;

Zhimei Luo

Subject: RE : Amor phous Core Experience at BGE

Hi all:

I have had considerable experience with amorphous cores and they can be made to

work. However, the process is not forgiving because the material is britle after

anneal and flakes off and breaks into tiny shards that remain loose and

undisciplined in the laced up core. Som e manuf acturers have learned to contain

the shards. It is relatively easy in small single phase transformers. It is

more difficult in three phase cores. It is extremely difficult for large three

phase cores that require two or more cores wide to be packaged together. This

leaves bli nd loca tions where containment is not very easy. Some have tried

sealing with epoxy but this prevents disassembly if a winding failure occurs.

Some have tried pressboard boxes with cotton tape wrappers. However, the coreshave greater magnetostriction than silicon iron and vibrate with greater

amplitude, and if not well contained may pump the shards of metal out of the

containment and into the windings where catastrophic failures have occurred. I

investigated a wind farm in 2008

‐ 9 where all 200 transformers had to be removed

from se rvi ce, scrapped and rebuilt with silicon iron. Not all manufacturers have

had such negative experience, but a few incidents can destroy a business.

This experience suggests that limitations should be anticipated in the use of

amorphous. I certainly salute all who are successful because it can be made to

work. I c ontinue to believ e that amorphous should not be the basis of a minimum

national standard for energy efficiency. It is something that I recommend is

for applications where customers have needs for extremely low core loss and where

the manufacturers have a proven track record of design and application.

All the be st,

Phil

Philip J H opkinson, PE

President & CEO HVOLT Inc.

3704 High Ridge Rd.

Charlotte, NC 28270

phopkinson@hvolt.com

Ph 704

‐ 846

‐ 3290

Fx 704

‐ 845

‐ 2520

Cell 704

‐ 236

‐ 3320

www.hvolt.com

From: Hirsch, Bruce R [mailto:Bruce.R.Hirsch@bge.com]

Sent: Friday, October 14, 2011 12:16 PM

To: 'Richard Parker'; Alex Hof mann; A ndrew Delaski; Aris Marantan; Art Rosenfeld;

Bob Saint; Brian Coffey; Bruce Smith; Caitlin Johnson; Carlos Gaytan; Caskey,

John; Charlie Drexler; Charlie Stevens; Chris Bolduc; Clark Silcox; Creevy, Jim;

Dan Cohen; Daniel Young; Eric Peterson; Freeman, Jeremiah; Gary Fernstrom; Greg

Coulter; Greg Rosenquist; James Lass; Jennifer Tiedeman; Jerry Corkran; Jerry

Hodge; Jer ry Scho en; Joanna Mauer; John Cymbalsky; John Rossetti; Katie Coughlin;

Ken Winder; Mahesh P. Sampat; Matt Miller; Matthew Nardotti; Meg Waltner; Meyers,

Aaron; Michael Hyland; Michael Rivest; Millure, Dave; Phil Harter; Phil

Hopkinson; Polinski, Raymond; Puesh Kumar; Rick Anderson; Rob Greeson; Robert

Berman; Robert van Buskirk; Robin Roy; Ryan, Pa ul; Scott Bec k; Simmons, Chuck;

Steve Nadel; Steve Rosenstock; Tim Ballo; Tom Eckman; Wes Patterson; Zhimei Luo

Cc: Hirsch, Bruce R

Subject: RE:Amorphous Core Experience at BGE

Importance: High

This is just a single Company's experience with amorphous core transformers.

Please note that based on this data we have NOT ruled out us ing amo rphous steel

in our transformers, however, the numbers are troubling.

BGE owns 2,770 transformers with amorphous steel cores. Most are three phase

units purchased in the mid to late 80's.Of that number, 201 have failed in service. The cause of failure is not known but

to be considered a failure the probability is that either the core or coil

failed. This represents an 7% failure rate.

The average age of the failed amorphous core transformers is 10.97 years.

The average age of f ailed t ransformers for BGE's entire fleet is 29.4 years.

BGE has over 216,000 transformers in the fleet, thus the quantity of amorphous

core transformers represents 1.4% of the total.

While we could debate the cause of failure for any particular class or design of

transformer, the average age to failu re date is a good ap ples to apples

comparison of the performance of the transformers since the exact same criteria

was used across the board.

Hope this information, along with other user responses is helpful in the decision

making process.

Bruce

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