Cogeneration, Electrocution, and Urbanization

As noted earlier, HA arranges coverage for a variety of power facilities, each of which presents its own set of exposures. “Generation facilities can be large or small,” Hurtado says. “They generate power from coal, natural gas, or other fuels; and that is what puts power into the grid. They sell their power to distribution facilities, which generally have multiple contracts to sell power to the end user, which is an individual or business.

“Cogeneration,” Hurtado continues, “is the simultaneous production of electricity and heat using a single fuel such as natural gas, although a variety of fuels can be used. The heat produced from the electricity generating process (for example, from the exhaust systems of a gas turbine) is captured and used to produce high- and low-level steam. The steam can be used as a heat source for both industrial and domestic purposes and can be used in steam turbines to generate additional electricity. Cogeneration technology provides greater conversion efficiencies than traditional generation methods as it harnesses heat that would otherwise be wasted,” Hurtado explains.“We generally inspect a generation or cogeneration facility before we offer a quote because we want to make sure that it’s operating according to the standards established for that particular piece of equipment,” he says.

Generation and cogeneration facilities have a public liability exposure, Hurtado says, “but it’s not as great as that for a distribution facility, because they are a step removed from the general public.”

Power distribution facilities include electric cooperatives, municipal facilities, and public utility districts. “The distributor is an intermediary between the generation or cogeneration facility and the end users, who are residential, commercial, or industrial consumers,” Hurtado says. “While there are a variety of incidents that can cause a loss in the utility industry, our primary concern is contact cases, when an individual comes in contact with a live power line.”

“Electrocutions happen for a number of reasons,” Hurtado notes, and these run the gamut from bad judgment to bad luck. Electrocution,” he explains, “not only can cause death but also can result in severe burns, loss of limbs, or quadriplegia.

“If a person touches a power line when he is grounded, the electricity enters the body and leaves with such tremendous force that there is little chance of a complete recovery.”

Urbanization factor

The incidence of electrocutions and touch incidents has increased,” Hurtado observes, “because of what I like to call the urbanization of rural America.

“Over the last 40 years, we have witnessed many people moving into rural areas for a variety of reasons. Because of the advent of air conditioning,” he adds, “many rural areas of the South have become major metropolises. Forty years ago, Orlando was just a small town in central Florida—but look at it now.

“Atlanta and Tampa are other examples of how air conditioning has been a factor in making these warm temperate and subtropical areas much more attractive as permanent places to live, raise families, and retire,” Hurtado continues. “This migration has transformed many areas that not too long ago were considered rural into large cities and towns. Larger populations not only put more stress on power distribution facilities; they also bring more people into contact with power lines.

“Windstorms are caused by a variety of atmospheric conditions and can easily bring down or cause power lines to sag,” he explains. “For some reason, some people don’t seem to realize the danger involved in touching or attempting to move a downed or sagging power line. The fact that a line is down or sagging doesn’t mean it no longer has power running through it,” Hurtado observes. “The best course is always to assume that the line is energized and let the professionals from the power company make an assessment and take the appropriate actions. Over the years we have experienced a variety of electrocution claims. It’s likely that most could have been avoided by the exercise of appropriate caution and respect for the power source at hand.”

In addition to claims from the general public, Hurtado says, “we have experienced a variety of claims brought by general contractors or subcontractors who were injured while working near power lines. Again, using appropriate equipment that is non-power conductive, maintaining an adequate distance from live lines, working closely with the power company to make sure lines are discharged before work on or near them takes place, and a healthy respect for the danger at hand are keys to preventing a tragic injury,” Hurtado declares.