866.694.1252

www.veracityamg.com [email protected]

Volume 2: May 2014

Substation Decommissioning

The 7 R’s: Recondition

Resell

Recycle

2

4

6

1

3

5

7

Reuse

Return

Reclaim

Remove

Investment Recovery – What is it? Veracity will begin a series of articles about Investment Recovery, also referred to as IR, and in particular the “7 R’s” that are the foundation of the program. Investment Recovery is the practice of recovering the highest value of assets no longer needed by a company. The role of an effective IR program is to determine the most effective disposition process for surplus assets. Effective decisions about what to do with idle asset have a direct effect on their financial return. IR programs utilize “7 R’s”, Reuse, Recondition, Return, Re-sell, Reclaim, Recycle and Remove. These represent “diminishing disposal options” that maximize the return on that investment, with Reuse provides the greatest return and Removal provides the least. The goal of Reuse is to determine if an item may be utilized elsewhere within the company. This is by far the most effective means of maximizing the return on an asset. The first question that must be asked prior to purchasing a new item is: Do we currently have one in surplus? Often there is an item sitting in a warehouse that can be used. This not only saves the expense from buying, but it frees up warehouse space!

With Ontario’s aging electrical infrastructure, many utilities are replacing and or retiring distribution substations. Veracity is adding value to these projects by cataloging the assets and then selling them to qualified buyers. The buyers are responsible to disassemble and remove the equipment according to the utilities safety and contracted procedures. Veracity uses an Investment Recovery approach to decommissioning assets. This approach not only increases sales proceeds but it frees up significant resource time for the Utility. Veracity will go out to the market with a request for bids, review the offers and then summarize the offers for approval from the Utility. Veracity’s process is simple and it is proven! Call us today!

New Addition to the Veracity Team! Veracity is pleased to welcome Aurélia Pécheux to the team. Aurélia was the successful candidate for our Marketing Intern position. Watch for upcoming blog posts and tweets! FOLLOW US ON TWITTER twitter.com/veracityamg

866.694.1252

www.veracityamg.com [email protected]

What’s in a Name? Asset Management Reports Surplus Management

Critical Spares Network

Supply Chain Partners

World Class Security

File Sharing & Storage

Scrap Management Group Project Management

Unlock the POWER of Collaboration Veracity is very proud to introduce you to Veracity Connect, our collaborative service approach to Critical Spares Management. Enhancements in efficiency and greater economies of scale can be achieved in the utility industry by effective collaboration among distribution, transmission, generation, OEM’s, Resellers and Industry Partners. Veracity gives you the tools you need to achieve the benefits of collaboration and virtual horizontal integration.

It never seems to fail, whether doing a presentation or during a business meeting, the question of how the name Veracity was selected always comes up. Veracity, pronounced ve-rac-i-ty, by definition means: 1 Adherence to the truth; truthfulness. 2 Conformity to fact or truth; accuracy or precision 3 Something that is true. In the context of asset management, facts, truth and accuracy of data are fundamental in lifecycle planning. Coupled with the uniqueness of the name, it was an easy decision.

Upcoming Tradeshow!

Veracity Connect is a cloud-based service that fosters collaboration and enables members to create effective shared service model opportunities. It provides immediate access to critical spares and strategic data for all members to use. Connect members can quickly and confidentially share knowledge and expertise, enhancing efficiency and gaining economies of scale. Groups can be created to optimize buying rates, logistics services, scrap management, safety training as well as cooperative regulations management. Contact Veracity to find out how Veracity Connect can help you ensure asset reliability, mitigate risks, offset capital expenditures and work with utility industry members to continue to deliver exceptional customer service. Call us today to try Veracity Connect for free!

Meet us at the Ontario Centres of Excellence Discovery Tradeshow!

May 12-13, 2014 For more information, visit: www.ocediscovery.com