Board Finance & Budget Planning Workshop April 16, 2012 · PDF file4/16/2012 ·...

April 16, 2012 FY 2013 Budget - DRAFT 1

Board Finance & Budget

Planning Workshop

April 16, 2012


Agenda

• Management Introduction

• Financial Highlights

• Administration Highlights

• Energy Resource Planning Highlights

• Engineering & Operations Highlights

• Customer Resource Highlights

• Workshop Recap


Management

Introduction (Girish Balachandran)

4

Adaptive and Flexible Process Purpose, Strategies and Work Plans

Purpose

Strategies

Goals, Work Plans,

Initiatives

Metrics

Metrics

Stays the same

for a long period of time

Minor changes over a multi-year

period

Dynamic as per priorities and

resources

April 16, 2012 FY 2013 Budget - DRAFT

AMP’s PURPOSE & VALUE METRICS PURPOSE: Increase value to Alameda by providing safe, reliable, cost-

effective, and environmentally responsible electricity

RATES

RELIABILITY

RESOURCES

WORKFORCE

Strate

gies Strategies

StrategiesStra

tegie

s

Metrics MetricsM

etr

ics

Me

tric

sCUSTOMER/COMMUNITY

VALUE AND SATISFACTION

5

OUR METRICS

Safety > 3 years without Lost Time Accident

Customer Satisfaction rating amongst the highest in

California

Reliability in top quartile of Western US utilities

Power resource mix has most renewable content of

any utility in California

Rates ~20% lower than PG&E --- translates into $10 million

savings/year for Alameda

Bond rating A+

Workforce of 91 that is central to achieving our purpose

April 16, 2012 FY 2013 Budget - DRAFT

PUB Prioritization to City Council

November 2011

1. Technology

2. Workforce

3. Regulation

4. Customer

Experience

5. LBNL 2nd Campus

FY 2013 Budget - DRAFT 6 April 16, 2012

November 2011 Prioritization Board made changes to Initiative 4 (changed 2013 and 2014 from Green) and Initiative 8 (changed 2014 from Orange)

FY 2013 Budget - DRAFT 7

# Initiative 2012 2013 20141 Update RPS Policy - current policy is 40% renewables including large hydro

G G G

2 Replace Morgan Stanley contract - expires in 2014 and is 15% of existing supplyG O R

3 Implement Rate Increase - PUB conceptual approval of <5%/year for 2011, 12, 13 and 14G G G

4 Update cost of service and study new rates - RFP for Rate Structures for future and cost of

service updateG o r

5 Get Audit Ready - NERC/WECC 2012 Audit; Compliance Plan by CY11G O O

6 Enhance outage restoration effectiveness - Enhance technology options and procedures;

Continue focus on 5-year O&MG O O

7 Modernize delivery system - IT Strategic Plan; Roadmap for Advanced Technology; Electric

Vehicles – Get Ready Plan and ImplementG O O

8 Business Case for Smart Grid - What makes sense for Alameda?G O r

9 Prepare for new block load - LBNL possibility; Other large customer loadO O O

10 PUB-City-Community Initiatives - Support PUB communication with Council; Cost-saving

opportunities and demonstration projects with City; Support AUSD EE effortsG G G

11 Organization Development - Learning for Board and Employees; Employee Recognition;

Workforce skills and succession planO R R

12 Enhance service delivery infrastructure - improve warehouse storage; lower building carbon

footprintO O O

13 Change Management - communication and preparationG O R

14 Update all reports (internal and external) - Improve effectiveness and insight; Update policies

and proceduresO O O

15 EE Strategic Work Plan - Implement work plan; Increase resources; Develop strategic planG O O

April 16, 2012

PUB’s 2012 focus

Workforce

APPA Hometown Connections

Organization Check-up

AMP Workforce/HR Strategic

Implementation Plan

Advanced Technology

RFP for overall business plan

Communications plan to be developed

HR plan to be developed

Change Management

Research other utilities

Develop & implement a focused

plan

8 April 16, 2012 FY 2013 Budget - DRAFT

Next Steps after this Workshop Internal

Change Management & Implementation

February onwards

Refine Work Plan and develop budget

February to June

Communicate Board priorities to staff

February to June

Evaluate PUB comments

February

External

Board review of Workshop comments

•February 27

Board Finance & Budget Workshop

•April 16

Communicate with Council

•Council update April/May

Budget Adoption

•June 25

Review progress

•Fall 2012 & Council Update November 2012



General Discussion

• Adopted Financial Policies have been incorporated.

• This is the 3rd year of the 5-year rate plan.

• Rates are lower than PG&E rates.

• Approved load forecast has been incorporated.

• Purchased power is AMP‟s largest expense.

• Business issues that will be considered in FY 2013:

– Renewable Energy Sales and Reserve

– Cost of Service and Rate Planning

– Advanced Technologies and Business Processes


Financial

Highlights (Robert Orbeta)


Budget Policy Highlights

• Policy is periodically reviewed and approved by the Board

• The General Manager submits to the Board a proposed operating

budget…which includes proposed expenditures and the means of financing

them.

• Ratepayer comments are solicited during regular Board meetings

• The budget is legally enacted through passage of a resolution.

• Formal budget integration is employed as a management control device

during the year.

• Budgets are adopted on a basis consistent with generally accepted

accounting principles.

• The budget is organized by Federal Energy Regulatory Commission

(FERC) accounts.

Financial Advisor Recommendations

• Refinance the 2000 A/AT (Complete)

• Maintain 145 days operating cash on-hand (Maintained)

• Take immediate action if operating cash falls to 100 days.

• Maintain a 1.75 debt coverage ratio (Maintained)

• Take immediate action if the coverage ratio falls below 1.10.

• Consolidate the Purchased Power Balancing Account into working

capital. (New Balancing Account Policy to Board June 2012)

• Consolidate the major contingency reserve, competitive pricing reserve,

and operating contingency reserve into working capital. (June 2012)



General Budget Discussion

• The proposed rates for FY 2013 comply with the „less than 5% per year

increase‟ guideline approved in the 5-year rate adjustment plan.

• The draft budget assumes the Board will approve the 3rd year rate

adjustments prior to the start of the fiscal year.

• Purchased Power costs are identified in NCPA‟s draft FY 2013 budget.

• Staffing levels decrease by 1 position as compared to last year.

• The rolling 5-year CIP plan is incorporated into the 1 year budget request.

• The draft budget “passes” all compliance tests.


FY 2013 Financial Summary

FY 2012 Budget FY 2013 Budget

Revenue from Operations $ 52,705,400 $ 53,647,100

Non-Operating Revenue $ 307,260 $ 295,160

REC Sales Net Income $ 0 $ 4,873,500

Reserves – UUD & REC $ (1,043,400) $ (5,935,700)

Reserve Spending $ 1,548,500 $ 50,000

$ 53,517,760 $ 52,930,060

Purchased Power $ 29,421,000 $ 30,312,700

Operating Expense $ 19,351,060 $ 20,121,875

Non-operating Expense $ 5,716,540 $ 5,737,350

Non-Cash Items ($ 3,684,900) ($ 3,684,900)

Debt Principal Payments $ 1,098,000 $ 1,126,200

Capital Projects & Eqpt $ 4,604,000 $ 3,330,900

$ 56,505,700 $ 56,944,125

Net Adjustment ($ 2,987,940) ($ 4,014,065)


$53,517,760 $52,930,060

$45,087,160 $46,749,675

$11,418,540 $10,194,450

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Electric - FY2013 Budget Comparision to FY2012 Budget (Excluding Depreciation)

FY2012 FY2013

FY2012

FY2012FY2013

FY2013

Revenue Operating Expense

Non-Operating &

Other Expenses


Revenue

• Revenue is based on the approved load forecast.

• Forecasted load, with planned rate adjustments, provides an

additional $941,700 of budgeted Sales Revenue in FY 2013.

• Other Operating Revenues are expected to be consistent with

historical trends and market conditions.

• REC Sales Net Income is budgeted at $4,873,000 for FY 2013.

• REC Sales Net Income shall be placed into a designated

reserve account per directives in Board resolution 4889.

• AMP expects to use $50,000 of UUD reserves for design.

• Revenue will not be sufficient to meet Expenses. AMP expects

to use $4,014,065 from working capital for these expenses.


Operating Expenses by FERC

$29,421,000

$3,969,860$3,912,020

$7,869,180

$30,312,700

$3,820,200 $4,324,050

$8,377,625

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Purchased Power Distribution & Maintenance Customer Accounts & Sales Administrative & General

Purchased Power & Operating Expenses Budget for FY2013 = $ 46,834,575

(excluding depreciation)

2012 2013


Operating Expenses by FERC

• Purchased Power costs increased by $891,700.

• Purchased Power costs incorporates a projected $500,000 rebate.

• “Labor” refers to AMP‟s workforce, “Service” refers to contracted

labor and contractor supplied materials, and “Material” refers to

purchased equipment, tangible goods and miscellaneous items.

• Operations and Maintenance expenses are consistent with past

expenditures.

• Customer Accounts & Sales expenses have increased as new

customer programs are included in the budget.

• Administrative & General expenses have increased as streetlight

energy has been included in the budget. Additionally, a budget for

consultants related to Advanced Technologies is incorporated.


Expenditure make-up

$30,312,700 54%

$8,623,800 15%

$8,152,175 14%

$9,680,09017%

FY2013 Budget (Draft) Expenditure = $56,768,765

Labor

Service

Material

Purchased

Power(2012 = 52%)

(2012 = 16%)

(2012 = 14%)

(2012 = 18%)


Budgeted Staffing

9597

105103

116

130

136

142 142

131

119118

91 91 9190

80

90

100

110

120

130

140

150

Staff Positions by Budget Year

Electric and Telecom Electric


Non-Operating Expense

• Interest income and miscellaneous revenues are expected to

continue at levels similar to last year.

• Debt service charges will increase slightly in FY 2013.

• PILOT/ROI payments will continue at the City ordinance level of

1% and AMP will make a prepayment of the FY 2014 amount.

• Charter compliance calculations indicate a city transfer is not

required; however, in accordance with policies established by

Board resolution 4528, a transfer to the City‟s General Fund of

$2.8 million has been included in the budget.

• Capitalized Infrastructure Projects include substantial subcontract

and special purchases.


City Related Contributions & Expenses

Budget Budget FY 13/

FY 2012 FY 2013 FY 12

General Fund Transfer $2,800,000 $2,800,000 0%

PILOT / ROI * $1,300,000 $1,285,210 99%

City cost allocation $ 785,900 $ 689,620 88%

City direct cost $ 175,000 $ 135,000 77%

Streetlight Energy $ 0 $ 380,000 New

Rent–warehouse, etc. $ 198,200 $222,450 112%

Garage fees & sewer $ 73,950 $74,300 101%

Total $5,333,050 $5,586,580 105%

AMP PERS cost $ 981,500 $ 981,500

AMP benefit cost $2,741,075 $2,767,945

Other Payments $3,722,575 $3,749,445 101%

* FY 2014 PILOT / ROI to be prepaid in FY 2013


2010 A/B Debt Service


Direct and Indirect Debt Service

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

20

31

20

32

Fiscal year

Direct and Indirect Debt Service Including NCPA & TANC Obligations

2000 AT Interest 2010 A/B Interest 2010 A/B Principal NCPA & TANC Obligation - Combined


Sources of Funds for Investment

$12,396,276

$12,043,735

$3,525,299

$1,200,000

$1,000,612

$650,000

$403,327

$196,858

$106,365

Balancing Account

Operating Funds

Underground District Reserve

Insurance Reserve

Major Contingencies Reserve

Operating Contingency Reserve

Solar PV Rebate Reserve

Competitive Pricing Reserve

Special Reserves

(To Working Capital 06/30/2012)




Administration Finance & Accounting

Utility Billing & Information Systems

Meter Reading

Support Services

(Robert Orbeta)

Administration Division Organization


Meter Reading Support

Services

Utility Billing &

Information

Systems

Finance &

Accounting

AGM

Administration

April 16, 2012 29 FY 2013 Budget - DRAFT


Finance & Accounting

Work Plan Highlights

• Provide financial analysis for contribution to 10-year pro forma and 5-year rate plan.

• Assist Auditor during interim and final audit.

• Implement accounting actions as recommended by Financial Advisor.

• Develop and Issue an RFP for Banking Services (Under consideration)

• Continue business-wide work processes reviews

• Training @ 40 hours / person.

• Policy and procedure reviews.


Utility Information Systems


• Develop and issue an RFP for Advanced Technology.

• Continue computer workstation and software upgrades.

• Perform server virtualization.

• Develop disaster recovery plan and implementation.

• Internet service redundancy and load balancing.

• Customer Information System business process review.

• Solar / Net Metering modifications to Customer

Information System.

• Network security assessment.

• Training @ 40 hours /person.



Meter Reading


• Review meter reading and service order

technologies.

• Perform succession planning.

• Route review, analysis, and modifications.

• Training @ 40 hours /person.



Support Services


• Improve the interior of the Service Center

• Service Center lobby renovations.

• Replace the furniture in conference room A/B.

• Replace the roof on the warehouse overhang.

• Replace one fork truck.

• Training @ 40 hours / person.



Energy Resource

Planning

(Janet Oppio)

Energy Resources Organization


Load

Forecasting

Rate

Design &

Analysis

Resource

Management

AGM

Energy Resource

Planning

ERP Focus

• Power and resource planning and procurement

• Contract administration including billing

verification

• Rate design and analysis

• Annual Load Forecast

• Manage NCPA costs

• Monitor industry legislative and regulatory

changes


April 16, 2012 38

Energy Resource Planning Division:

FY 2013 Goals

Strengthen the Foundation by:

• Utilizing 10 year financial pro forma model to evaluate alterative cost and revenue scenarios.

• Continuing implementation of 5-year rate adjustment plan.

• Develop a new rate adjustment plan recommendation going forward.

• Incorporating the results of the detailed cost of service analysis (COSA) into the design of AMP‟s rates going forward

• Developing and implementing an Electric Vehicle policy and rate.

• Evaluating commercial Time of Use (TOU) metering and rate design.

• Executing sales of Renewable Power in compliance with AMP‟s renewable portfolio standard (RPS)

FY 2013 Budget - DRAFT

April 16, 2012 39

Energy Resource Planning Division:

FY 2013 Goals…

Strengthen the Foundation by:

• Initiating a study to identify and evaluate ways to reduce GHG emissions in support of the city of Alameda‟s Local Action Plan for Climate Protection.

• Evaluating Community Solar for Alameda

• Developing AMP‟s GHG Cap and Trade compliance strategy

• Continuing to enhance AMP‟s risk management procedures and practices.

• Developing ERPs workforce through 40 hours of training/conference opportunity

• Digitizing ERP‟s files and background materials to enhance the effectiveness of ERP‟s library resources.

• Enhancing division efficiency and effectiveness through better tools and work practices.


April 16, 2012

Purchased Power makes up over half the expected

increase in costs (which are projected to increase

by $6.9 million by FY 2022).


$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Reve

nu

e R

eq

uir

em

en

t ($

00

0)

Revenue Requirement ($000)

Undergrounding & Other

Capital & Equipment

Material and Services

Labor

Contribution to City

Debt Service

Transmission

Power Costs

40


Transmission costs are projected to increase from 21%

of power costs in FY 2013 ($6.2 million) to 22% by FY

2017 ($7.3 million), continuing to rise through FY 2022.

19%

20%

21%

22%

23%

2013 2014 2015 2016 2017

Transmission Costs as Percent of Power Costs

0

5

10

15

20

25

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

$/M

Wh

Projected Transmission Costs per MWh

April 16, 2012 42

FY 2013 power cost budget is $30.3 M

compared to FY 2012 budget of $29.4 M


-500

-1,372

180

349

953

1,154

1,497

1,672

2,326

5,031

5,726

5,971

7,327

-2,000 -1,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

Prior Year True-up Rebate

Market Transactions

Graegle

CT1

Western

NCPA Services

CT2

Wind

Morgan Stanley

Calaveras

Landfill Gas

Geo

Transmission

FY13

FY12

ERP Power Budget Increases

• Butte LFGE project coming online in July

• Increase in transmission costs due to

higher GMC, TAC and lower value of

COTP

• Calaveras: Evaluating Beaver Creek

Project

• CT1 and CT2 maintenance projects


ERP Power Budget Reductions

• Projects at Geo 1, Geo 2 and Steam Field

pulled from NCPA budget for possible

NCPA financing.

• NCPA service costs lower due to cost

sharing with LEC.

• Net Renewable Power sales revenues

estimated at $4.9 M



NCPA Forecast of PG&E Rates 2-17-2012


AMP rates will remain 17% below PG&E on average.

Third Year of Five Year Rate Adjustment Plan

Recommended Rate Increase of 3.25%

Rate

Schedule

Current

Average

AMP Rate

($/kWh)

Proposed

Average

AMP Rate

($/kWh)

Change in

Average

Rate (%)

Current

PG&E Rate

($/kWh)

AMP Proposed

Compared to

PG&E (%

Difference)

Residential D-1 0.13463 0.14056 4.40% 0.17684 -23.87%

D-2 0.13604 0.14320 5.00% 0.19006 - 28.42%

Commercial A-1 0.15317 0.15614 1.94% 0.18169 -15.70%

A-2 0.12990 0.13457 3.60% 0.14462 -10.18%

A-3 0.12678 0.12777 0.78% 0.13841 -8.40%

CT 0.14007 0.14363 2.54% 0.20352 -31.18%

OL 0.58437 0.55833 -4.46% 1.28333 -54.46%

Municipal MU-1 0.13816 0.14107 2.11% 0.17666 -21.79%

MU-2 0.15038 0.15313 1.83% 0.20083 -25.12%

MU-3 0.13919 0.14158 1.72% 0.17217 -19.16%

System Average 0.13513 0.13952 3.25% 0.16288 -17.04%


Rate Schedule Avg. # Customers

2012 2011

D1 30,108 30,030

D2 146 155

A-1 3,401 3,333

A-2 261 265

A-3 13 14

OL 10 11

CT 2 2

MU-1 311 311

MU-2 14 14

MU-3 15 15

Total Customers 34,281 34,150

Customer Count by Rate Class

As of (Feb, 2012)

April 16, 2012 49

2013 AMP average commercial rates are projected to be more than

15% lower than PG&E.


0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Cen

ts/k

Wh

Historical AMP A1 vs. PG&E A1

Small Commercial Rates

AMP Small Commercial PG&E Small Commercial


0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Cen

ts/k

Wh

AMP Residential PG&E Residential

2013 AMP average residential rates are projected to be about 24%

lower than PG&E.

Historical AMP vs. PG&E Residential Rates


Engineering & Operations Line Operations

Electrical Maintenance

Engineering

Dispatch

Compliance & Safety

(Douglas Draeger)

Engineering & Operations Division

Organization


Engineering Dispatch

Electrical

Maintenance/

Substations

Line Operations

AGM

Engineering &

Operations

Compliance &

Safety

November 2011 Prioritization

FY 2013 Budget - DRAFT 54 April 16, 2012

# Initiative 2012 2013 2014 1 Update RPS Policy - current policy is 40% renewables including large hydro

G G G

2 Replace Morgan Stanley contract - expires in 2014 and is 15% of existing supply G O R

3 Implement Rate Increase - PUB conceptual approval of <5%/year for 2011, 12, 13 and 14 G G G


service update G o r

5 Get Audit Ready - NERC/WECC 2012 Audit; Compliance Plan by CY11 G O O


Continue focus on 5-year O&M G O O


Vehicles – Get Ready Plan and Implement G O O

8 Business Case for Smart Grid - What makes sense for Alameda? G O r

9 Prepare for new block load - LBNL possibility; Other large customer load O O O


opportunities and demonstration projects with City; Support AUSD EE efforts G G G


Workforce skills and succession plan O R R


footprint O O O

13 Change Management - communication and preparation G O R


and procedures O O O

15 EE Strategic Work Plan - Implement work plan; Increase resources; Develop strategic plan G O O


• Substation – Protective Relay Replacement

– SCADA Fiber Trunk configuration

– 12kV Breaker replacement

– Change management

– Upgrade Subs 12 & 14

• Reliability – Asset Management System

– Coast Guard Crossing

– Enhance outage restoration effectiveness

• Distribution/Engineering – Geospatial Identification

System

– Automated Switches

– LED Street lights

– Extension of fiber

1. Technology

2. Workforce

3. Regulation

4. Customer Experience

Initiatives: 6, 7, 8, 9


Comparison of ’11 & ’12 Labor Hours by MWC

2011 Actual 2012 Planned

April 16, 2012 56


E&O Division: Work Priority Highlights

• Internal Safety and Compliance Program

– In-house development and delivery of effective training programs

– Design, Operating and Work Procedures developed or revised

– Injury & Illness Prevention Program manual revision

– Continue building Robust Compliance program

• Reliable Distribution

– 5-year cycle of Distribution detailed and visual inspection

– Condition & inspection based Asset Maintenance Program

– Annual cycle of Transmission Inspection & Maintenance

• System Enhancement

– Increase Distribution Automation

– Harnessing underground Fault Indicators with fiber

• New Business

– Responsive service to residents and developers


Capital Infrastructure Program

• 20 Year Plan

• 5 Year Summary

• FY 2013

20 Year Plan


• Transmission Expansion

• Dispatch Center

• Substation Replacement

• Electric Vehicles

• System Capacity

• Transmission Enhancement

• Smart Grid/ AMI

5 Year Capital Infrastructure Plan


Expand Fiber to Automate Substation & Distribution

Reliability tie to Coast Guard Station

Dispatch Center Upgrades

Substation Breaker Replacement

Electric Vehicles

Historic Streetlight Replacement & Maintenance

Program

LED Streetlight Program

5 Year Plan Highlights


2012-13 2013-14 2014-15 2015-16 2016-17 Total

Programs – Utility Systems $2,489,500 $4,310,000 $4,025,000 $3,695,000 $4,073,800 $18,593,300

Programs - Blanket Work Orders $ 283,400 $ 315,000 $ 355,000 $ 415,000 $ 496,600 $ 1,865,000

Programs - Information Systems $ 130,000 $ 140,000 $ 201,000 $ 75,000 $ 000 $ 546,000

Programs - Support Services $ 428,000 $ 000 $ 80,000 $ 70,000 $ 000 $ 578,000

TOTAL - 5-YEAR CIP $3,330,900 $4,765,000 $4,661,000 $4,255,000 $4,570,400 $21,582,300


FY 2013 CIP Highlights

• Utility System programs will continue with a budget ~ $ 3.0 million.

• Blanket work orders will continue to meet system reliability goals

and address new customer needs with a budget ~ $ 283,000.

• Electronic hardware and software enhancements will continue

with a budget ~ $130,000.

• The lobby and main conference room improvements have a

budget ~ $75,000.

• AMP will continue to support developers through outside billing

activities as needed.


QUESTIONS?


CUSTOMER RESOURCES Customer Service

Customer Resource

Communication

Energy Efficiency

(Sherri Hong)

Customer Resource Division

Organization


Communication Energy

Efficiency

Customer

Resources

Customer

Services

AGM

Customer

Resources

Customer Resource

Division Objectives

The Customer Resource Division strives to fulfill the needs and expectations of our customers by providing responsive, quality service.

We are the customers advocate and will provide a positive experience for our customers – bringing programs and services which are convenient, easy, and saves customers time and money through the integration of technology.

We are part of and outreach to the community providing information, resources, and educational materials. A high satisfaction level is our goal and strive to achieve service excellence.


Customer Service


• Implement advanced online self-service

applications

• Research and identify advanced technology

requirements

• Implement Voluntary Renewable Program

• Conduct customer satisfaction survey

• Continue organizational service

excellence

• Succession planning and training


Customer Resources


• Promote education in new technology

• Enhance key accounts and commercial outreach

• Provide UUD outreach/communication

• Provide Operations communication support

• Improve solar rebate application processes

• Enhance website applications and security

• Develop and conduct educational

workshops, community events


Communication/Public Relations


• Implement Phase 2 outage communication

• Conduct 125th Birthday recognition

• Pilot a residential customer engagement platform

• Enhance external and internal communications

• Support PUB/Council communication

• Conduct quarterly employee events


Energy Efficiency


• Implement Energy Efficiency Work Plan Initiatives

• Develop the Energy Orbit tracking and reporting system for energy efficiency programs

• Implement an online rebate process

• Develop new AB2021 target & achieve savings

• Pilot Tier 3 Program for Energy Efficiency

• Research/implement new technology & programs.

• Implement City Commissioning project

• Continue to partner with various key

customers/stakeholders in EE efforts

(i.e. AUSD, MARAD, City, other agencies)



PROFESSIONAL DEVELOPMENT &

TRAINING

» Industry

» Networking

Opportunities

» Technology

» Service Excellence

» Personal development

» Project Management

GENERAL

PROFESSIONAL


Workshop Recap (Girish Balachandran)

November 2011 Prioritization Board made changes to Initiative 4 (changed 2013 and 2014 from Green) and Initiative 8 (changed 2014 from Orange)

FY 2013 Budget - DRAFT 74

# Initiative 2012 2013 20141 Update RPS Policy - current policy is 40% renewables including large hydro

G G G

2 Replace Morgan Stanley contract - expires in 2014 and is 15% of existing supplyG O R

3 Implement Rate Increase - PUB conceptual approval of <5%/year for 2011, 12, 13 and 14G G G


service updateG o r

5 Get Audit Ready - NERC/WECC 2012 Audit; Compliance Plan by CY11G O O


Continue focus on 5-year O&MG O O


Vehicles – Get Ready Plan and ImplementG O O

8 Business Case for Smart Grid - What makes sense for Alameda?G O r

9 Prepare for new block load - LBNL possibility; Other large customer loadO O O


opportunities and demonstration projects with City; Support AUSD EE effortsG G G


Workforce skills and succession planO R R


footprintO O O

13 Change Management - communication and preparationG O R


and proceduresO O O

15 EE Strategic Work Plan - Implement work plan; Increase resources; Develop strategic planG O O

April 16, 2012

Next Steps after this Workshop Internal

Change Management & Implementation

February onwards

Refine Work Plan and develop budget

February to June

Communicate Board priorities to staff

February to June

Evaluate PUB comments

February

External

Board review of Workshop comments

•February 27

Board Finance & Budget Workshop

•April 16

Communicate with Council

•Council update April/May

Budget Adoption

•June 25

Review progress

•Fall 2012 & Council Update November 2012



General Discussion

• Adopted Financial Policies have been incorporated.

• This is the 3rd year of the 5-year rate plan.

• Rates are lower than PG&E rates.

• Approved load forecast has been incorporated.

• Purchased power is AMP‟s largest expense.

• Business issues that will be considered in FY 2013:

– Renewable Energy Sales and Reserve

– Cost of Service and Rate Planning

– Advanced Technologies and Business Processes


Budget Schedule

• Annual Planning Workshop (Completed January 30, 2012)

• 10-year Pro Forma and update on rate projections planned for regular

meeting of the Public Utilities Board (Completed March 19, 2011)

• Staff will present rate recommendations & the Board will consider at the

regular meeting of the Public Utilities Board on April 16

• Board provides final comments on draft budget by May 4

• Staff will present the budget & the Board will consider adoption at the

regular meeting of the Public Utilities Board on June 25

• Staff will implement the approved rate schedules and FY 2013 budget

beginning July 1

Board Finance & Budget Planning Workshop April 16, 2012 · PDF file4/16/2012 ·...

Documents

Transcript of Board Finance & Budget Planning Workshop April 16, 2012 · PDF file4/16/2012 ·...