Historically, electric utilities have stored and transported power cables on large wooden reels to facilitate cable handling and prevent damage. In 2000, Duke Power, in an alliance with Southwire, their cable supplier, launched an innovative initiative to reduce supply chain costs and waste through the use of reel-less cable packaging for underground service cables. Elimination of reels turned out to be a technical and logistical challenge, but an innovative reel-less packaging approach was devised that resulted in immediate annual savings of over $650,000 in purchased materials and expenses, as well as additional savings through transportation efficiency. Southwire invested in the new plant equipment necessary to manufacture the cable, and Duke Power agreed to share cost savings with Southwire up to a specified amount. In addition, the reduced demand for wood effectively preserves 135 acres of forest per year.

The investigation of reel-less packaging was initiated by a team of personnel from Southwire and Duke Power purchasing, engineering, and EHS. They undertook a series of field trials to test and refine the new processes and equipment, and to verify that no cable damage would occur. During these field trials, the team overcame numerous technical obstacles, including the following achievements:

• A technology had to be developed to hold coils of cable and facilitate handling without damaging the cable. The Duke Power/Southwire alliance team decided to utilize tubular steel stems and selected a manufacturer of industrial equipment to produce the units. Initially, the team thought that stems would be required for storage of coils. However, during field trials it was determined that coils could be stored and handled without damage, so that stems were only needed for coils placed onto construction vehicles. This was made possible through the use of discarded coal conveyor belts from generating plants, which provide a smooth surface to store coils of cable without damage.
• Payoff equipment for line construction vehicles had to be developed. After evaluating several designs, the team selected a specially designed industrial version of a common lazy-susan that included a brake, truck mounting provisions, and a cable payoff arm. It was originally thought that every construction vehicle would need up to three payoff devices. However, the field trials revealed that any vehicle with lifting equipment, such as a trencher or a trackhoe, could lift the stems containing coils of cable with a swivel in order to pay-off the cable. That reduced the required number of lazy-susans from more than 400 to less than 10, avoiding an expenditure of over $320,000.
• A new packaging system for coils had to be developed. Initially, coils were wrapped with cardboard on both the outer and inner surfaces, and the entire outside of the coil was then covered with many layers of shrink-wrap. This approach was later replaced with a single wrap of heavy plastic that is recyclable but sturdy enough to be re-used repeatedly in a closed-loop fashion. Thus, the discarded plastic wrap is returned to Southwire and placed on new coils that will be delivered to Duke Power.
• Cable handling techniques had to be developed to prevent damage to the cable. This involved shipping, storing, mounting coils on stems, field construction site delivery, and picking up fallen coils. Supply chain personnel at Duke Power developed a cable handling training program and presented it to warehouse personnel, contractors, and trucking companies.

As the field trials were gradually expanded to fully test all aspects of the project, numerous improvements were made to the equipment and the processes. The trials were judged to be successful, and in mid-2002, reel-less cable packaging for underground service cables was fully adopted.

Business case summary

Cost savings:

• Annualized savings due to the elimination of wood reels on the Duke Power system are estimated at $500,000 per year.
• Easier handling of short cable lengths results in reduced cable waste, totaling over $140,000 per year.
• Tipping charges for wood disposal at landfills are reduced by $10,000 per year. Also, labor to dispose of the unusable reels has been eliminated.
• Shipping charges are reduced because an additional 9,000 pounds of cable can now be placed on a delivery truck - this was the weight of the wooden reels.
• Field trials show that no additional labor was required to handle and store reel-less packages.

Environmental benefits:

• Reduced demand for wood is equivalent to 135 acres of forest per year.
• Wood waste delivered to landfills is reduced by 660 tons per year.
• Protective wrap over the cable is recycled and re-used.
• Worn conveyor belt material that would normally be landfilled is used for storing coils.

In summary, the reel-less packaging project has met or exceeded the requirements of the customer, industry, shareholder, regulator, public, and landowner. This was accomplished through significant cost reductions and significant reductions in waste without sacrificing reliability, safety, productivity, or efficiency. Until now, most utilities did not believe that reel-less cable could be used without incurring excessive cable damage, but by working together, Duke Power and Southwire proved that damage could be prevented. Innovative thinking enabled them to move beyond existing standards and develop an environmentally benign technology that many other utilities are likely to adopt in the future.