Eugene Water & Electric Board. Frank Lawson CEO/General Manager
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1 Eugene Water & Electric Board Frank Lawson CEO/General Manager
2 EWEB Baseline Facts Type Public Customers 200,000 Services (Electric) 90,000 Services (Water) 65,000 Employees 510 E-Consumption W-Consumption E-Consumption E-Consumption (Peak) W-Consumption (Winter) W-Consumption (Peak) Service Territory Power Lines Water Pipes 2.4B kwh/year 7.5B Gallons 275 MWa 600 Mwa 16 MGD 55 MGD 236 Sq. Miles 1,300 Miles 800 Miles Hayden Bridge Treatment Plant (Capacity 80 MGD)
3 Financial Picture Challenging but Stable Power prices stay at historic lows Consumption Stable/Declining Good news on bond refinancing (water & electric) Cost-Containment Zero rate change in 2017 (residential) 2018 Absorb BPA Increase 2018 Customer Dividend/Rebate 2018 Water Reduction On-going Challenges Surplus power & low market prices Infrastructure investments (Carmen Smith, reliability)
4 Service Territory
5 Power Portfolio Portfolio Carbon Intensity (MMTCO2/ MWh) EWEB, PNW, 0.24 Remaining US, 0.51
6 Strategic Objectives 1. Provide link between Mission and operating plans (tactics) 2. Inspire/Align organization toward actions and results 3. Basis for making decisions/ guiding policies Strategic Plan (Approved August 1, 2017)
7 Most Impactful Decisions 1. Emergency Preparedness & Disaster Recovery 2. Electric Supply Resources
8 Electric Resources Generating Resources
9 Foster Customer Confidence 1. Consistent Performance (Safe & Reliable) 2. Cost Improvement 3. Service/Responsiveness 4. Open and Transparent Communications
10 Reliable electricity and water and disaster preparedness is a clear and distinct top priority This is their mandate Infrastructure investment is just prudent management Qualitative Feedback Quasi-Governmental EWEB is seen as bureaucracy that is fluffy or bloated. EWEB has organizational policies/processes that create an attitude of inflexibility and disregard for commercial customers needs. Conservation is viewed as win-win-win: lowering costs for rate payers, deferring need for new infrastructure, and mitigating climate change It is not EWEB s role to lead social need support for low-income residents, many hold EWEB accountable for keeping rates as low as possible and prefer a structure that minimizes hurt to people on lower end of the economic scale. Also mixed views on EWEB s role in economic development.
11 Strategic Summary 10-Year Strategic Priorities 1. Emergency Preparedness & Disaster Recovery 2. Electric Resource Choices III. Resilient Delivery Integration Synchronizing I. Foster Customer Confidence Methods to Enhance Customer II. Create Consumption Flexibility Confidence: Consistent Performance (Safe & Reliable) 2. Cost Improvement 3. Service/Responsiveness 4. Open and Transparent Communications Niche/Segment-Specific Products; Consumption & Infrastructure Flexibility Integrate Sources with Flexible Delivery; Resilient Grid & Water System
12 Investment Impact 1. Capital Infrastructure (Resiliency & Emergency) Responsiveness Workforce Reliability & Quality Affordable Rates Risk Profile Customer Service Greenness Flexibility & Adaptability Simplicity Focus/Alignment Efficiency Improvements
13 Strategic Implementation Compulsory Essential Functions Regulatory (financial, NERC, FERC, PUC, DEQ ) Continuance of Operations (reliable delivery of drinking water and electricity) Obligation to Serve (Customer Service, New Connections, etc.) Strategic Choices 1. Infrastructure Replenishment & Replacement (Capital) - Water & Electric 2. Power/Energy Resource Planning (beyond supply chain management) 3. Community Leadership and Responsibility (conservation, efficiency, education) 4. Modernization (technology, Customer Information System, AMI) A. MAINTAIN our safety, reliability, and delivery performance B. MAINTAIN our regulatory compliance and legality C. IMPROVE our storm and disruptive event response D. IMPROVE our responsiveness to customers; become simpler and easier to transact with E. EMPHASIZE Cyber and Physical Security times annualized depreciation Emphasize emergency preparedness & disaster recovery Combine & Model Resource/Market/Consumption Maximize the broadest benefits for all customers. Emphasize support vulnerable members of our community. Strategic Sequencing
14 Questions & Answers McKenzie River, Oregon (541) Safe Reliable Responsible Community Leaburg Powerhouse
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