We were asked by an independent adjusting firm and Insurers to review the economic damages claimed in relation to a transformer trip at a hydroelectricity power plant in Turkey.
The power plant is an embankment dam with three turbines in the main power house and two turbines serviced by a divisional tunnel, powered through environmental release water from the dam. The transformer serviced the two environmental release turbines, and one of the main power house turbines. As a result of the incident the three turbines could not generate. However, the insured was able to mitigate part of the loss by running more water through the other two main power house turbines.
Our role was to review the financial impact of the power generation loss and the water and operational statistics to determine the appropriate valuation for the mitigated loss.