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It has been the intention of this course to make you more familiar with the terms Passive Standby, Line
Interactive, and Double Conversion as well as the terms On-line and Off-line.

It is critical to understand these terms and how they are used in the industry, but it is equally critical to
understand that there can be differing opinions on their definitions. It is more important to focus on the
customer’s true needs and not get tied up semantics of a name.

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The 9 Basic Power Problems are defined as:

• Power Failure - A total loss of primary power.

• Voltage Sag - Short-term low voltage. This problem can stem from the startup of large loads, utility
equipment switching or failures, and power service that is too small for the demand.
• Voltage Surge - Short-term high voltage above 110% of nominal. Surges may occur due to a rapid
reduction in power loads or by utility switching.
• Undervoltage - Reduced line voltage for extended periods. Can be caused by an intentional utility
voltage reduction to conserver power during peak demand periods or heavy loads that exceed
supply capacity.
• Overvoltage - Increased line voltage for extended periods. Can be caused by a lightning strike that
sends line voltages to levels in excess of 6,000 volts.
• Line Noise - High frequency waveform interference. Can be caused by either Line RF1 or EMI
interference generated by transmitters, welding devices, SCR-driven printers and lightning.
• Frequency Variation - A change in frequency stability, resulting from generators or small co-
generation sites being loaded and unloaded.
• Switching Transient - Instantaneous undervoltage. Normal duration is shorter than a spike and
generally falls in the range of nanoseconds.
• Harmonic Distortion - Distortion of the normal waveform, caused by switch-mode power supplies,
variable speed motors and drives, copiers and fax machines and other non-linear loads

All of these power quality issues can reek havoc on sensitive equipment like manufacturing control
systems, computer systems, data storage, etc. A double conversion UPS can help eliminate or
reduce these issues.

Now that you understand the 9 basic power problems we will discuss the different technologies used by
UPS products to address these problems.

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As we look at the common components that make up a UPS we must first start with the UPS Rectifier,
also called the charger. The Rectifier (or Charger) is the device used to convert AC power to DC power
to support the DC bus used to drive the inverter and recharge the power source. There are several
different variations of the rectifier (ie. 6 pulse & 12 pulse SCR, IGBT, etc.), however they are all
performing the same basic function.

The next component to discuss is the Inverter. The Inverter converts the DC voltage from the DC bus
supplied by the rectifier or the power source into AC voltage to support the load. Again, there are
several different types of inverters each with their own benefits, but they are all performing the same
basic function.

The third main component of any UPS is the Power Source. The Power Source is the device used to
provide backup power to the DC bus in the case where the rectifier is incapable of supplying adequate
voltage or current due one of the 9 basic power problems which we will soon cover. There are several
different types of Power Sources in the market. We will not review them in this presentation, however
each have their own benefits.

These three components are the main components in every UPS.

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The next set of terms we would like to briefly review are present in most UPS and will be important to
understand as we move forward with this presentation.

The first term, Bypass, refers to the power path in most UPS which allows the input power source to
power the load while bypassing the rectifier and inverter. In short it is an alternate power path in most
UPS used during a fault or maintenance of the UPS to bypass the internal components of the UPS.

The Filter in a UPS provides for power conditioning in some UPS designs. Not all UPS use Filters for
power conditioning they are primarily used when high harmonics or voltage anomalies are present that
can not be corrected otherwise by the UPS.

The last term for this portion of the discussion is Power Conditioning. Power Conditioning is the act of
correction for some or all of the 9 basic power problems.

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The above is a typical UPS cabinet set up.

Next lets discuss the different UPS topologies to see how they compare to a
double conversion system topology.

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In the UPS industry there are several standards which provide guidance as to
the operation of the product, however there are very few that define the
topologies used to complete the operation. The predominate standard used
when defining UPS topologies is the European Committee for Electrotechnical
Standardization’s standard EN 62040-3. This standard provides for three
main UPS topologies, Passive Standby, Line Interactive, and Double
Conversion. In the industry you will hear the term On-line and Off-line UPS as
well, and we will cover those terms in the next slide, however due to the
ambiguity that has accompanied those terms we will focus on the terms laid
out in this standard first.

In trying to provide a general understanding of these three categories we are

going to focus on two features; is the backup power source in the path of
power to the load during normal operation and is the UPS providing Power
Conditioning. As we look at each of the designs further try to identify which
category they fall into.

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The first category we are going to talk about is a Passive Standby UPS which
is primarily used in the single phase market where short interruptions (>4ms)
can be acceptable. A Passive Standby UPS will provide two paths for power
to the load. The normal path, which is used when an input power is available,
provides power directly from the input to the load. There is little or no filtering
or protection provide in most these systems. The second path is a backup
path, which is switched to when there is no input power available. The backup
path provides power to the load through the use of stored energy (typically
batteries) until the normal path returns or the backup power runs out of energy.
The Passive Standby UPS is typically more efficient than a Double Conversion
UPS and provides less disturbance to other equipment in the backup power
systems. However, the Passive Standby UPS will cut power to the load for a
short duration (normally >4ms however in some cases up to 25ms).

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The second design for a UPS system is a Line Interactive UPS which also is
primarily found in the single phase market but is gaining acceptance in the 3-
phase market. A Line Interactive UPS tries to take advantage of the benefits
found in both a Passive Standby and Double Conversion UPS. In the Line
Interactive design the input power to the UPS is filtered and conditioned to
provide a “clean” output wave form, but the sine wave is not 100% recreated
like it is in a Double Conversion UPS. This means in normal operation the
power that comes into the UPS is the same that is going out and the UPS can
only “clean” the power it cannot “control” the power. When the input power
goes away the Line-interactive UPS will draw power from the stored energy
device which is connected to the main power path through a second leg.
There is no switching required and no loss of power to the load with the Line-
interactive system. A Line-interactive UPS is typically highly efficient, causes
little to no disturbances to the rest of the backup power system, and is highly
reliable to provide continuous clean power to the load. The most challenging
feature of the Line-interactive UPS is that the UPS cannot control the power it
is outputting. This makes it difficult to fit into every possible system design
because if two different UPS units are receiving input power from two different
sources that are out of phase the UPS outputs will be out of phase.

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The third design for a UPS system is the one most widely accepted in the 3-
phase UPS market, a Double Conversion UPS. A Double Conversion UPS is
any UPS where the backup power source is always connected to the load and
is actively conditioning the load through a recreation of the reference sine
wave. With a Double Conversion UPS the power from the input is converted
from AC to DC then back from DC to AC to provide power to the load. During
the conversion process the power is filtered and corrections are made to the
sine wave so that the sine wave that is created during the final DC to AC
conversion provides a “clean” wave form. Most Double Conversion UPS have
lower efficiencies and can cause difficulties with the backup power systems
generator sets if not properly sized. However, they are reliable for providing a
clean output power to the load for as long as backup power is available.

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With the double conversion UPS we are now in the prime power business.
Customer expectations and tolerance for down time change becoming more
demanding on our organizations. For many customers the loss of power
means a loss of job… specifically in the data center field. With a standby
generator set the unit can be non functioning and the customer can still
operate. With the UPS off line the customers load is exposed to potential load
shut down or damage to there sensitive control systems.

A supplier only gets one chance to get this support correct…

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These list of market expectations is just the basics and are already being met
by the competition. None of these items will give us a competitive advantage
but not meeting them will insure we are not competitive. These are basic
entry level service for support UPS systems. Our ability to execute the UPS
service model will determine if we and your dealership will not only be in the
UPS service business but the UPS sales as well. We all must get this right to
excite our EP Systems Strategy.

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Caterpillar has implemented the following elements to support the dealer
network. I will be the first to say we are still experiencing growing pain in the
UPS support business but we are taking the steps to provide benchmarked
industry support services.

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As we looked to get into the UPS business we also did a world wide study of
dealers who have been in the industry. We interviewed many aspects of their
business and put together this list of service best practices. This list is a list of
common themes in UPS dealer service departments.

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All of this does not go without reward. As we look at the financial model a
dealership who ingages in the support business will be more profitable over
the long run. Our model, backed by industry benchmarks, suggest a dealer
who goes after the UPS CSA business will earn more service profit by year 4
than sales profit. This is no surprise in our other Cat business but a significant
difference the the standby power market… or the prime power market.

The assumption of this model is that 100% of units soled receive a service
contract. This may sound high but it is not that far off of industry standards of
approximately 85% of the larger kVA units sold are sold with a service
contract.

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One of the reasons for this profitability is how the industry has set up the
service model. UPS technicians earn more money than diesel techs. The also
do more work on off hours. They are also industry standards for minimum
charge outs as well expediting fees being common.

In addition we have seen many competitors able to charge an up-rate on the

CSA to guaranteed technician response time above 24 hours. Typically we
see guarantees of 2, 4 and 8 hour response time each with an increased CSA
price above the 24 hour response rate.

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There are a number of service that can be provided by a dealership to support the
UPS market. One of the keys to providing services in the UPS market is delivering
them in a manor accustomed to the industry. Most UPS customers are not expecting
a dirty mechanic that has just changed the oil in a genset to be performing there UPS
maintenance. Most UPS technicians are akin to a photo copier repairman, polo shirt,
kaki paints with small tool case. They are not expecting a F550 with crane to show up
on site but more like a panel van that has components and tools to support UPS
business. This could also be said for some switchgear repair as well.

Over the next few slide we will investigate the Preventative Maintenance and On-Site
Services.

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There are noumerous dealer service that can be offered for customers a UPS
system. List here are the major service offered.

Annuals Services
Regular Inspections
Diagnose, Test and Repair
Battery Maintenance which we will discuss in a few slides.

For now lets focus on the services we will offer on the UPS cabinet itself.

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CSA are a critical component to the UPS business. Customers have come to
expect participation from the manufacture and their distributors to offer
maintenance solutions for UPS systems. UPS systems are highly technical as
well as the loads they support. Many customers have chosen to focus their
expertise on their loads while outsourcing the technical expertise on back up
systems to the suppliers of that equipment.

The follow are some of the significant reasons for offering UPS CSAs.

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One interesting aspect of CSA in the UPS market place is they the suppliers
provide a differentiated level of service to those customer willing to sign a
support contract with them. Some of the service levels are described here….

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The fallowing chart describes the typical scope of work for an annual service.
We will discuss the quoting of these services in the section on the CSA
quoting tool. But the following are main service performed during and annual
PM service.

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The following is the scope of work for most diagnose, repair and test calls.

<Review Slide>

Quoting this activity is relatively easy as industry has settled in on TRGs

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Most all call outs to diagnose, test and repair are for 4 hours of labor. This can
help significantly and can be negotiated into a CSA agreement. I.e. all call out
to diagnose, test and repair will be 4 hours. If it turns out to not to be an issue
when the tech arrives, i.e. push a reset button, a minimum call out charge of
$200 is industry standard. In addition in most quotes parts required to repair
the product are quoted separately from the call out charge.

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Sample of roommate service offerings.

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The basic component that differentiates an UPS system from a power conditioner is
the battery.
If the batteries fail before the backup generators come on line, the critical power goes
down.
Improperly installed, poorly maintained, and inadequately tested batteries are
common
happenings. Only the fact that the backup generators are highly reliable and come on
line in a
few seconds prevents many UPS battery banks from failing long before their rated
design life.
Maintenance costs and maintenance access generally are the greatest contributing
factors to
poorly maintained battery systems.

Inspections
Record the overall float voltage at the battery terminals
Measure the pilot cell voltage
Make a visual cell and rack to check appearance, cleanliness, cracks in cells,
electrolyte leakage, or evidence of corrosion.

Preventative Maintenance
Institute of Electrical and Electronics Engineers (IEEE) 450 and

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 IEEE 1106 recommend monthly, quarterly, and yearly inspections. Some
manufacturers
recommend weekly inspections. The National Electrical Code (NEC) requires
periodic testing on
a schedule acceptable to the authority having jurisdiction. Periodic maintenance is
required and
written records of tests and maintenance must be kept.

Testing
Do not overtest. Frequent testing will shorten the service life. IEEE 450 and
IEEE 1106 require a performance test (a current capacity test which discharges a
battery to a
designated terminal voltage to detect any change in the capacity determined by
the initial test)
within the first 2 years of service and then recommends performance tests at 5-
year intervals until
the battery shows signs of degradation or has reached 85 percent of the service
life expected.
Degradation of lead-acid batteries is indicated when the battery capacity drops
more than 10
percent of rated capacity from its capacity on a previous performance test or is
below 90 percent
of the manufacturer's rating. Degradation of nickel-cadmium (ni-cad) batteries or
extensive
capacity loss is indicated when the battery capacity drops more than an average of
1.5 percent per
year of rated capacity from its previous performance test capacity. Then annual
performance
tests must be provided. Perform tests in accordance with IEEE 450 or IEEE 1106
requirements.

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The table show the basic scope of work for a batter UPS.

This list forms the basic elements of a CSA offering on batteries for a UPS
system. While supporting the UPS cabinet of a 3rd party can be challenging
from a diagnostic, test and repair standpoint due to proprietary systems the
annual maintenance and battery maintenance is much the same for all
manufactures and provides an excellent service opportunity for most dealers.
It is also a platform to discuss the opportunity to sell a Cat UPS system when
the customer is in the market to upgrade or purchases a new UPS system.

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When writing a battery CSA there are some criteria that need to be taken into
account and communicated to the customer. Here is a list of items you
should take into consideration when approaching writing a CSA for batteries.

One key point when building a battery maintenance CSA is the batteries are
not included in the cost. The CSA is only for inspecting and maintaining the
system. Parts are quoted as required. This is due to the warranty options for
batteries which we will discuss in a couple slides.

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You should also make clear in the CSA contract with customers that your
dealership expects the following information and access.

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When writing a Battery maintenance CSA you must take into account the
prorated battery warranty. This has cost implications as time

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