RECAP TO ANNUAL STRATEGIC PLANNING WORKSHOP Strengthening Our Foundation

Transcription

1 City of Alameda Public Utilities Board RECAP TO ANNUAL STRATEGIC PLANNING WORKSHOP Strengthening Our Foundation February 22,

2 Essence of the January Presentation 1. Strengthening the Foundation 2. Plan for future needs Rates 3. Remaining telecom issue - Litigation Theme Telecom Focus 2009 Theme Transition the Business 2010 Theme Strengthening the Foundation 2

3 Summary: Rapid Evolutionary Change/Pressure 1. Climate Regulation 2. Technology breakthroughs 3. Customer expectations 4. Skilled workforce 5. Surrounding utilities 3

4 How do we prepare to address Critical Issues, Threats and Opportunities? 1.Build on the positive work of the past several years 2. Continue strengthening the foundation 4

5 RATES Employee Participation 5

6 Employee Participation Upwardly directed input, feedback, data, contributions of details and specifics to what was general 6

7 RATES 34 PUB Comments Summarized in 6 areas 7

8 Customer and Community Value Customer and Community Value PUB Detailed Comments Critical Issues Risks/Impacts/ Threats Opportunities PH Alameda Point development is also an opportunity. $ contributions to City are a priority and, if not increased, properly managed PH or addressed, could also become a future threat/risk. Perhaps an AMP/City collaboration or joint management on a cost-saving activity for the City? PH Reliable power is a primary objective. GH Low rates are important. Local (Alameda) threats to Board governance (Charter change initiatives, AM etc. PH Rapid rate increases are absolutely to be avoided. GH If Critical Issues are not addressed, rapidly increasing rates may result. Effective management will suffer if there isn't focused control on doable GH priorities. Energy information is a broader category than Technology Road Map and AM Developing Pilot Programs. Embrace (carefully) technology, best practices, social media, etc. Second-mover theme is important. Total Overhaul of EE programs learn from best practices and pursue joint AM action to lower cost. Heed new branding, etc. PH Participation in AB 811 program is a must. PH Redesign of economic development is critical. GH Enhance Alameda s image. We should set some stretch goals to move as many customers as possible to direct debit/easy pay. For us it is a reduced processing, account handling, JM and cash flow issue. 50% should be the starting point, and 75% of all new connects. 8

9 Resources PUB Detailed Comments (contd.) Resources Critical Issues Risks/Impacts/ Threats AM PH GH PH Opportunities GH With respect to high renewable power cost and expectations of further increases, revise renewables policies, especially with regard to selling RECs, etc. Transmission availability and cost is critical. Prepare for intermittency of demand. Need to prepare and monitor legislation to maintain our local flexibility. With respect to balancing renewables and rates, note that we have rising costs. 9

10 Reliability PUB Detailed Comments (contd.) Reliability Critical Issues Risks/Impacts/ Threats Opportunities PH With respect to Aging Infrastructure that needs to be replaced, plan for infrastructure replacement in concert with monitoring technology. GH Build out for Alameda Point may impact overall reliability PH 10-year pro forma is needed GH Increase distribution efficiency (lower losses). GH Improve asset management. 10

11 Rates-Financial PUB Detailed Comments (contd.) Critical Issues PH AM Bond coverage/rating is critical. Review rate design more tiers, encourage efficiency, socially fair and equitable. Rates- Financial Opportunities PH JM Breakout rates to show metrics (commercial, residential); utilization and revenue before contemplating exact rate increase. If we begin to consider each rate class as a product, we can begin to apply classic product management thinking and best practices as we start to examine rates in the short and long term. 11

12 Workforce PUB Detailed Comments (contd.) Workforce Critical Issues Risks/Impacts/ Threats Opportunities AM With respect to Performance Management, Performancebased compensation is also an issue PH With respect to the skilled workforce problem, Recruitment Process is an issue PH Review salaries. GH Important to note that if we don t take proper actions we may not be able to meet increased expectations of customers AM To replace aging workforce as a result of retirements, acquire staff with the required skills to ensure flexible and efficient workforce GH Take actions to increase trust and flexibility 12

13 RATES 34 PUB Comments Summarized in 6 areas 13

14 Parking Lot Items 1. Average national age (GH) A. How does the AMP workforce age distribution compare with other utilities? 2. Further breakdown of age component (PH) A. Analysis of the impacts of acquiring and maintaining skill sets may be warranted. 3. Overlap strategy sharing knowledge (JM) A. Should consideration be given to an employment overlap, perhaps of a month, of a departing employee and an incoming replacement? 14

15 2010 Strengthening the Foundation - Sample 1. Develop Goals, Tactics and Measurements 2. Policy and procedures review 3. Performance Management introduction 4. Develop stable rate proposals 5. Plan for litigation outcomes 6. Debt review and alternatives year integrated financial model introduction (incorporates resources, CIP, reserves, rates, uncertainty and scenario planning) 8. 5-year CIP Planning introduction 9. Re-alignment to increase efficiency 10. Increase communication with key stakeholders 15

16 What does strengthening the foundation look like? And result in? 1. Plan & Prioritize to Utilize limited resources A. A focused and in-sync organization B. A learning organization making high-quality decisions C. Right sizing work to resources 2. Measure to Adapt A. Meaningful measurements that allows for adaptation 3. Invest to Leverage A. Right workforce, properly trained and having industry standard tools/technology/equipment B. Prepare right skills and diverse skills C. Prepared for the future 16

17 RATES Next Steps Internal External 17