RMEL Electric Energy Issue 2 2014

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SPOTLIGHT ON CRITICAL ENERGY ISSUES ISSUE 2 / 2014 www.RMEL.org AN ELECTRIC ENERGY INDUSTRY REVOLUTION 316B REGULATORY STRATEGIES CITY OF CODY’S UTILITY UPGRADE EVOLVING STAKEHOLDER ENGAGEMENT LEADERSHIP IN TODAY’S WORKFORCE PROJECTING FUTURE POWER DEMAND

description

An electric energy industry revolution -316B regulatory strategies -City of Cody's utility upgrade -Evolving stakeholder engagement -Leadership in today's workforce -Projecting future power demand

Transcript of RMEL Electric Energy Issue 2 2014

Page 1: RMEL Electric Energy Issue 2 2014

SPOTLIGHT ON CRITICAL ENERGY ISSUES

ISSUE 2 / 2014 www.RMEL.org

AN ELECTRIC ENERGY INDUSTRY REVOLUTION

316B REGULATORY STRATEGIES

CITY OF CODY’S UTILITY UPGRADE

EVOLVING STAKEHOLDER ENGAGEMENT

LEADERSHIP IN TODAY’S WORKFORCE

PROJECTING FUTURE POWER DEMAND

Page 2: RMEL Electric Energy Issue 2 2014

Nathan Bingham

Distribution Services Business Unit Director

POWER Engineers, Power Delivery

From traditional poles and wires services

to assessing, designing and installing

next generation technologies, Nathan

Bingham and his team at POWER

Engineers have the resources,

experience and expertise you need

to make all your distribution goals.

Download our Distribution Services brochure at: POWERENG.COM/DISTRIBUTION22

RECRUIT POWER FOR ALL YOUR DISTRIBUTION NEEDS.

CLICK: POWERENG.COM/DISTRIBUTION22EMAIL: Nathan Bingham at [email protected]

Page 3: RMEL Electric Energy Issue 2 2014

Nathan Bingham

Distribution Services Business Unit Director

POWER Engineers, Power Delivery

From traditional poles and wires services

to assessing, designing and installing

next generation technologies, Nathan

Bingham and his team at POWER

Engineers have the resources,

experience and expertise you need

to make all your distribution goals.

Download our Distribution Services brochure at: POWERENG.COM/DISTRIBUTION22

RECRUIT POWER FOR ALL YOUR DISTRIBUTION NEEDS.

CLICK: POWERENG.COM/DISTRIBUTION22EMAIL: Nathan Bingham at [email protected]

Page 4: RMEL Electric Energy Issue 2 2014

4 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

FEATURES 11 Emerging Power Plant

Wastewater Treatment Issues By Brad Buecker, Process Specialist, Kiewit Power Engineers

16 Utility Transformation: Utilizing Top-to-Bottom Teamwork By Bert Pond, Electrical Engineer, City of Cody

20 Building Relationships & Reputations through Robust Public Involvement and Early Stakeholder Engagement By Theresa McClure, HDR, Omaha, Strategic Communications & Public Involvement Manager; Emily Hyland, HDR, Minneapolis, Strategic Communications & Public Involvement Manager; Katie Hatfield Edstrom, Ph.D, HDR, Omaha, Strategic Communications & Public Involvement Senior Coordinator

DEPARTMENTS. 06 Board of Directors and

Foundation Board of Directors

08 2014 Fall Management, Engineering and Operations Conference

36 RMEL Membership Listings

40 2014 Calendar of Events

42 Index to Advertisers

26 Changing Leadership Styles: A Matter of Habit By Jim Walters, EDD, Owner, Power of Learning, Inc.

32 U.S. Electricity Sales: Decoupled from Growth? By Paul Narduzzo, Sr. VP Electric Distribution, CoBank and Taylor Gunn, Economist, CoBank

11

20

16cont

ents

26

Page 5: RMEL Electric Energy Issue 2 2014

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Page 6: RMEL Electric Energy Issue 2 2014

6 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

RMEL INFORMATION

RMEL Board of Directors

OFFICERS

PRESIDENT Steve Bridges Zachry Holdings, Inc. VP & Power Executive

VICE PRESIDENT Walt Jones Intermountain Rural Electric Assn. Assistant General Manager, Operations & Engineering

VICE PRESIDENT, FINANCE Rebecca Shiflea Leidos Sr. Project Manager

CHAIR, FUNDRAISING Jim Helvig AMEC Director, Power Delivery

CHAIR, MEMBER DEVELOPMENT Mike Jones SRP Director

BOARD OF DIRECTORS

Kent Cheese TestAmerica Laboratories, Inc. VP, Sales

Paul Compton Kiewit Sr. VP, Business Development

Kelly Harrison Westar Energy VP, Transmission

STAFF LIAISON Natalie Andersen RMEL Manager, Member Services & Retention

Rick Putnicki RMEL Executive Director

Foundation Board of Directors

OFFICERS

PRESIDENT Dan Schmidt Black & Veatch Corp. Sr. VP, Power Generation Services

PRESIDENT ELECT Stuart Wevik Black Hills Corporation VP, Utility Operations

PAST PRESIDENT Andy Ramirez El Paso Electric Company VP, Power Generation

VICE PRESIDENT, FINANCE Tom Kent Nebraska Public Power District VP & COO

VICE PRESIDENT, EDUCATION Tony Montoya Western Area Power Administration COO

VICE PRESIDENT, VITAL ISSUES Mike Hummel SRP Associate General Manager

VICE PRESIDENT, MEMBERSHIP Scott Fry Mycoff, Fry & Prouse LLC Managing Director

VICE PRESIDENT, MEMBER SERVICES Kelly Harrison Westar Energy VP, Transmission

DIRECTORS

Paul Barham CPS Energy Interim Sr. VP, Energy Delivery Services

Doug Bennion PacifiCorp VP, Engineering Services & Asset Management

Joel Bladow Tri State Generation and Transmission Sr. VP, Transmission Assn.

Tim Brossart Xcel Energy VP, Construction Operations & Maintenance

Jon Hansen Omaha Public Power District VP, Energy Production & Marketing

Tom McKenna UNS Energy Corporation VP, Energy Delivery

Tammy McLeod Arizona Public Service VP, Resource Management

Cheryl Mele Austin Energy COO

Mike Morris Zachry Holdings, Inc. VP, Business Development, Engineering

Jackie Sargent Platte River Power Authority General Manager

Neal Walker Texas New Mexico Power President, TNMP SECRETARY

Rick Putnicki RMEL Executive Director

Electric Energy available in digital format

– email, share, link. ACCESS FROM THE

RMEL.ORG HOME PAGE

Page 7: RMEL Electric Energy Issue 2 2014

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Learn more about what Ulteig offers you in developing your next step in power generation and delivery systems. Visit our website at www.Ulteig.com.

Ulteig is proud to support future generations of

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this way, we demonstrate our enthusiasm for and

commitment to the future of our industry, and the

engineering professionals of the future.

2014 RMEL Platinum Champion

Page 8: RMEL Electric Energy Issue 2 2014

8 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

2014 FALL CONVENTION

JO I N E L E C T R I C E N E R G Y

industry senior executives for

RMEL’s 2014 Fall Executive Lead-

ership and Management Convention

Sept. 14-16 in San Antonio, TX. The

theme of this year’s Fall Convention is

Reliability, Relevance & Reinvention:

Sustaining Our Way of Life.

The RMEL Fall Convention attracts

over 300 senior-level utility managers

and executives. Find chief executives,

company officers, vice presidents,

general managers, decision makers and

senior management of energy compa-

nies at this event. Attendees represent

the many utility ownerships including

IOU, G&T, municipalities, cooperative

and government agencies.

The keynote speaker, Michael

Morell, Former Deputy and Acting

Director, CIA, will speak about the

Golden Age of Intelligence. The intel-

ligence community has never been

more important to national security

than it is today. It is simply not pos-

sible for the president and his national

security team to understand the world

and make the decisions necessary to

protect the country without first-rate

intelligence. However, the need for this

intelligence also raises understandable

concerns about privacy and civil liber-

ties right here in the United States and

its impact on U.S. businesses selling

their products and services overseas. In

presentations, Michael Morell will share

insights on how we should think about

the intelligence community and how it

affects our lives, businesses, and jobs.

In a presentation about Google

making its way into the electric

energy industry, smart grid thought

leader Jesse Berst, Managing Direc-

tor, Global Smart Energy, will invite

attendees to consider the industry’s

past, present and future. He will

remind everyone of the important

lessons to be learned from “Electric-

ity 1.0” and our past. He will describe

the pressures and possibilities of our

present. Finally, he will explain why the

Sources: Edison Electric Institute, 2014, www.eei.org/electricity101

100% of RMEL Fall

Convention

attendees

will have a unique

opportunity to

network and learn

from electric energy

leaders from all

types of electric

utilities and service

companies.

The electric power industry is an

$860,000,000,000

industry that provides a

vital service to modern life.

Industries and resources that

run on electricity now account

for 60% of our nation’s gross

domestic product (GDP)

and these same segments now

account for 85% of GDP growth.

Electric company energy efficiency programs

saves 124 Billion kilowatt-hours

of electricity in 2012. That’s enough

electricity to power nearly 11.5 million

average U.S. homes for one year.

DEMAND FOR ELECTRICITY IS

PROJECTED TO GROW 23%

BY 2040 AS THE NUMBER

OF PRODUCTS POWERED BY

ELECTRICITY INCREASES.

23%

America’s electric company’s employ

500,000+ workers.

The 2012 National

Fuel Mix included:

37.4% coal

30.3%

natural gas

19%

nuclear

6.7% hydro

5.4%

non-hydro

renewables

.06%

fuel oil

.06% other

COALNATURAL GASNUCLEARHYDRO

NON-HYDRO RENEWABLESFUEL OILOTHER

11.5 million

SINCE 1990

79% - SO2 EMISSIONS

76% - NOx EMISSIONS

REAL GDP 69%

ELECTRICITY USE 36%

Sources: Edison Electric Institute, 2014, www.eei.org/electricity101

100% of RMEL Fall

Convention

attendees

will have a unique

opportunity to

network and learn

from electric energy

leaders from all

types of electric

utilities and service

companies.

The electric power industry is an

$860,000,000,000

industry that provides a

vital service to modern life.

Industries and resources that

run on electricity now account

for 60% of our nation’s gross

domestic product (GDP)

and these same segments now

account for 85% of GDP growth.

Electric company energy efficiency programs

saves 124 Billion kilowatt-hours

of electricity in 2012. That’s enough

electricity to power nearly 11.5 million

average U.S. homes for one year.

DEMAND FOR ELECTRICITY IS

PROJECTED TO GROW 23%

BY 2040 AS THE NUMBER

OF PRODUCTS POWERED BY

ELECTRICITY INCREASES.

23%

America’s electric company’s employ

500,000+ workers.

The 2012 National

Fuel Mix included:

37.4% coal

30.3%

natural gas

19%

nuclear

6.7% hydro

5.4%

non-hydro

renewables

.06%

fuel oil

.06% other

COALNATURAL GASNUCLEARHYDRO

NON-HYDRO RENEWABLESFUEL OILOTHER

11.5 million

SINCE 1990

79% - SO2 EMISSIONS

76% - NOx EMISSIONS

REAL GDP 69%

ELECTRICITY USE 36%

The electric power industry is an

$860,000,000,000

industry that provides a

vital service to modern life.

America’s electric company’s employ

500,000+ workers.SINCE 1990

79% - SO2 EMISSIONS

76% - NOx EMISSIONS

REAL GDP 69%

ELECTRICITY USE 36%

Sources: Edison Electric Institute, 2014, www.eei.org/electricity101

100% of RMEL Fall

Convention

attendees

will have a unique

opportunity to

network and learn

from electric energy

leaders from all

types of electric

utilities and service

companies.

Industries and resources that

run on electricity now account

for 60% of our nation’s gross

domestic product (GDP)

and these same segments now

account for 85% of GDP growth.

Electric company energy efficiency programs

saves 124 Billion kilowatt-hours

of electricity in 2012. That’s enough

electricity to power nearly 11.5 million

average U.S. homes for one year.

DEMAND FOR ELECTRICITY IS

PROJECTED TO GROW 23%

BY 2040 AS THE NUMBER

OF PRODUCTS POWERED BY

ELECTRICITY INCREASES.

23%

The 2012 National

Fuel Mix included:

37.4% coal

30.3%

natural gas

19%

nuclear

6.7% hydro

5.4%

non-hydro

renewables

.06%

fuel oil

.06% other

COALNATURAL GASNUCLEARHYDRO

NON-HYDRO RENEWABLESFUEL OILOTHER

11.5 million

Sources: Edison Electric Institute, 2014, www.eei.org/electricity101

100% of RMEL Fall

Convention

attendees

will have a unique

opportunity to

network and learn

from electric energy

leaders from all

types of electric

utilities and service

companies.

The electric power industry is an

$860,000,000,000

industry that provides a

vital service to modern life.

Industries and resources that

run on electricity now account

for 60% of our nation’s gross

domestic product (GDP)

and these same segments now

account for 85% of GDP growth.

Electric company energy efficiency programs

saves 124 Billion kilowatt-hours

of electricity in 2012. That’s enough

electricity to power nearly 11.5 million

average U.S. homes for one year.

DEMAND FOR ELECTRICITY IS

PROJECTED TO GROW 23%

BY 2040 AS THE NUMBER

OF PRODUCTS POWERED BY

ELECTRICITY INCREASES.

23%

America’s electric company’s employ

500,000+ workers.

The 2012 National

Fuel Mix included:

37.4% coal

30.3%

natural gas

19%

nuclear

6.7% hydro

5.4%

non-hydro

renewables

.06%

fuel oil

.06% other

COALNATURAL GASNUCLEARHYDRO

NON-HYDRO RENEWABLESFUEL OILOTHER

11.5 million

SINCE 1990

79% - SO2 EMISSIONS

76% - NOx EMISSIONS

REAL GDP 69%

ELECTRICITY USE 36%

100% of RMEL Fall

Convention

attendees

will have a unique

opportunity to

network and learn

from electric energy

leaders from all

types of electric

utilities and service

companies.

The electric power industry is an

$860,000,000,000

industry that provides a

vital service to modern life.

Industries and resources that

run on electricity now account

for 60% of our nation’s gross

domestic product (GDP)

and these same segments now

account for 85% of GDP growth.

23%

America’s electric company’s employ

500,000+ workers.

The 2012 National

Fuel Mix included:

37.4% coal

30.3%

natural gas

19%

nuclear

6.7% hydro

5.4%

non-hydro

renewables

.06%

fuel oil

.06% other

COALNATURAL GASNUCLEARHYDRO

NON-HYDRO RENEWABLESFUEL OILOTHER

SINCE 1990

79% - SO2 EMISSIONS

76% - NOx EMISSIONS

REAL GDP 69%

ELECTRICITY USE 36%

RELIABILITY,RELEVANCE &REINVENTION:SUSTAINING OUR WAY OF LIFES E P T E M B E R 1 4 - 1 6 , 2 0 1 4 | S A N A N T O N I O , T E X A S

SUSTAINING OUR INDUSTRY AT RMEL’S 111th FALL CONVENTION

Page 9: RMEL Electric Energy Issue 2 2014

W W W . R M E L . O R G 9

time is right for utilities to invent their

own future – or risk having that future

decided by outsiders.

Yolanda France, Director, Cus-

tomer Contact Operations, SRP, will

discuss SRP M-Power and explore the

benefits of prepaid electric services. To

stay relevant with evolving customer

needs, many industries are moving to-

wards “pre-paid” plans. To help rate-

payers, some utilities are now offering

free nights and weekends as well as

pre-paid cards. Does our industry

need to change the business model

for how our product is perceived and

used? Is it time to move away from

the typical rate structure?

Jim Fama, VP, Energy Delivery,

EEI, will discuss emerging physical and

cyber security threats facing the in-

dustry, including a discussion regard-

ing implementation of the new NERC

Physical Security Standard.

This year’s CEO Panel will give

attendees with a future look at the

electric utility industry. The barrage

of pending regulations, economic

uncertainty and ever-increasing

speed of communication are push-

ing electric utilities to act faster than

ever before. Doyle Beneby, President

&Chief Executive Officer, CPS Energy,

John Hewa, Chief Executive Officer,

Pedernales Electric Cooperative, Pat

Reiten, President & CEO, Pacific Pow-

er, Hunter Hunt, Chairman & Chief

Executive Officer, Sharyland Utilities

and Kenneth Zagzebski, President,

U.S. Strategic Business Unit, AES, will

share their strategies for the future

and how they’re going to get there. A

brief discussion from each CEO, fol-

lowed by an open Q&A session with

the attendees, will convey the outlook

for the different types of utilities.

Erwin Furukawa, CEO, EF Strat-

egy and Planning Group, will present

on creating a model that balances

customer, public policy and util-

ity goals. Today we are seeing major

changes evolving in our industry. New

technologies are emerging that are

becoming more viable alternatives;

new market entrants are introduc-

ing energy services as part of their

portfolio; customers are becoming

more adept and regulators are in the

pivotal position to create a new en-

ergy market place. As these changes

evolve, it is critical for utility leaders

to focus on customers and work with

policy makers in shaping a model that

meets customer, public policy and

utility goals.

Dr. Dale Klein, Associate Vice

Chancellor for Research, University of

Texas, will discuss how a nuclear plant

works and the safety systems that are

in place. The status of the United States

and worldwide use of nuclear power

plants will be described. Also included

will be a discussion of the accident at

Fukushima Daiichi.

Foreign plans for the future of

energy are moving in many direc-

tions. As Germany is in the process of

going back to coal, the UAE is building

nuclear like crazy. Can the U.S. learn

from the foreign energy market? In

order to stop “reacting”, do we need

a 10 year plan? Gary Rackliffe, VP,

Smart Grids North America, ABB, will

discuss global trends and energy plans

for the future.

Thomas Casey, Managing Princi-

pal, Discussion Partner Collaborative

LLC, will focus on the research which

led to the best-selling book Executive

800.438.0790

Transitions-Plotting the Opportunity!

The presentation will highlight first

party research with over 2,000 senior

executives, and client experience

with over 200 senior executives. The

speech will contain insights on three

aligned topics, including enterprise

succession plans, capability deficien-

cies of successors and post exit plan-

ning challenges for executives. PDFs

of the book and related blogs and

articles will be made available.

The Fall Executive Leadership and

Management Convention is a three-

day event that begins on a Sunday

with a golf outing followed by an

evening reception hosted by the RMEL

Champions. Monday is a full-day of

educational presentations ending with

an RMEL Champions reception, din-

ner and the RMEL Foundation Silent

Auction. The final day includes the

RMEL annual meeting and a half day

of presentations. A guest program,

awards presentation and plenty of

time to relax and network are also part

of the tradition. Go to www.RMEL.org

for more information and registration.

111th AnnualExecutive Leadership and Management

Page 10: RMEL Electric Energy Issue 2 2014

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TREATMENT ISSUESB Y B R A D B U E C K E R , P R O C E S S S P E C I A L I S T , K I E W I T P O W E R E N G I N E E R S

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Page 11: RMEL Electric Energy Issue 2 2014

W W W . R M E L . O R G 11

WHEN I BEGAN MY UTILITY CAREER AT CITY Water, Light & Power in 1981, National Pollutant Discharge

Elimination System (NPDES) guidelines focused upon a

small core of primary impurities in wastewater and/or

cooling water discharge streams. These included total

suspended solids (TSS), oil and grease (O&G), pH, and free

chlorine (or other oxidizing biocide). A common guideline

is shown below in abbreviated form.

At that time, many power plants utilized once-through

cooling systems, so these limits were often easy to

achieve in that stream. The majority of issues arose at

coal-fired power plants from the discharges of coal pile

runoff ponds and wet ash disposal ponds. The constitu-

ents in these streams that required the most oversight

tended to be TSS and pH, but straightforward methods

were available to control this chemistry. Per proposed

regulations and additional effluent limitations the waste

water treatment chemistry and treatment train will be-

come more complex.

New DevelopmentsDue to the relative low cost of natural gas, penetration

of renewable power, and environmental regulations, coal-

fired power is being replaced by simple- and combined-

cycle generation. Due to 316b water regulations, which

Constituent Monthly Average (Limit or Range)

Free Available Chlorine 0.2 mg/l

O&G 10 mg/l

pH (range) 6.0 – 9.0

TSS 30 mg/l

TABLE 1: AN ABBREVIATED NPDES EXAMPLE

EMERGING Power Plant Wastewater

TREATMENT ISSUESB Y B R A D B U E C K E R , P R O C E S S S P E C I A L I S T , K I E W I T P O W E R E N G I N E E R S

Page 12: RMEL Electric Energy Issue 2 2014

12 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

are designed to protect aquatic life from

destruction in cooling water intakes, all

of the many combined-cycle requests

for proposals (RFPs) received by Kiewit

in the last several years specify a cool-

ing tower, or an air-cooled condenser,

rather than once-through cooling. A

cooling tower produces the largest

liquid discharge at these plants. These

discharges are now being regulated

either prior to or after co-mingling with

other plant wastewater discharges per

current guidelines or eventually the pro-

posed Steam Electric Generating Station

Effluent Guidelines (SEGSEG). EPA

regional water programs and state water

programs are adding additional param-

eters to individual plant NPDES permits

as they come up for renewal. Some of

these additions can be attributed to

the Toxic Maximum Daily Limit (TMDL)

program within the states, but some

parameters have been unexpected.

In some cases, limits are being

placed on effluent total dissolved solids

(TDS). This has very important consequences for cooling

tower operation. An example comes from a power plant in a

southern state. Prior to 2013, the plant’s NPDES permit only

called for monitoring of TDS. The plant’s new state permit

imposes an average monthly limit of 1,200 mg/l. But, the

very nature of cooling tower operation causes an increase

in solids concentration due to evaporation of water from

the tower. Consider a makeup water that contains 400

mg/l TDS. If the wastewater guideline is 1,200 mg/L, the

tower cycles of concentration (COC) is limited to three. The

blowdown volume at low COCs can be quite significant for a

large cooling tower.

Another constituent appearing in some permits is sulfate

(SO4). Sulfuric acid feed to cooling tower makeup has been a

common method to remove bicarbonate alkalinity and thus

minimize calcium carbonate (CaCO3) scaling in the con-

denser and cooling system.

H2SO

4 + Ca(HCO

3)2 + CaSO

4 + 2H

2O + 2CO

2

Tighter regulations on sulfate in the discharge stream

may eliminate this straightforward method of scale control

at some plants. Phosphorus is also being banned in many

waste streams. Phosphorus serves as a nutrient for plant

growth, and when released to open bodies of water initiates

and propagates algae blooms. The difficulty is that a very

common cooling water treatment method relies on the use

of ortho-phosphate and organic phosphates (phosphonates)

for both corrosion and scale control.

Heavy metals are also on the list, with a primary example

being zinc. This element was once an integral part of the

phosphate/phosphonate programs mentioned above, as it

assists with corrosion protection. Zinc’s use will be curtailed

due to discharge limitations contained in the SEGSEG. The

US EPA is proposing a 1 part-per-million (ppm) limit on zinc

and 0.2 ppm limit on chromium in cooling tower discharge.

Another metal that is now appearing on some permits is

copper, in which the discharge limit may be below 30 parts-

per-billion (ppb). At these very low limits, copper discharge

can potentially be a problem from units equipped with

copper-alloy condenser tubes. Another source of copper

is wooden cooling towers. Copper compounds were often

utilized as a wood preservative.

Control MethodsAdjusting to new NPDES guidelines is not simple or

inexpensive. Sometimes other factors compete against any

efforts. A primary example is the growing requirement to

use recycle water in place of fresh water as plant makeup.

Recycle water, such as tertiary-treated wastewater, can have

quite variable concentrations of many impurities, two of

which are phosphorous and ammonia. The latter is increas-

ingly appearing in discharge permits, as ammonia can be

lethal to aquatic creatures, and like phosphorus serves as a

nutrient for toxic algae blooms.

For plants facing tight TDS restrictions, reducing the

cooling tower COC is a method to lower the dissolved solids

Page 13: RMEL Electric Energy Issue 2 2014

W W W . R M E L . O R G 13

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content of the waste stream, but that technique in turn

increases the discharge volume. This may or may not be a

problem depending upon the environmental authorities in

charge of permitting. For new plants, this factor could be

very important with regard to plant location and the quality

of the water available for makeup.

The emerging restrictions on sulfate in the discharge

may, in some cases, eliminate makeup water acid

treatment as a scale-control mechanism. An alterna-

tive method to reduce the threat of calcium carbonate

scaling, albeit at considerable expense and increased

system complexity, is cold lime softening. This technique

will lower both the calcium and bicarbonate alkalinity

of the stream, but not without proper operator control

and monitoring of the unit. A factor that may favorably

influence softening for some applications is the ability to

also include magnesium feed for reduction of silica. Silica

chemistry is quite complex, but a general rule-of-thumb

suggests 150 ppm as the silica limit in the cooling tower

recirculating water, with possibly an upper limit of 200

ppm or so with some of the newer chemical treatment

programs. This is often not an issue with surface water

supplies, as these may contain only small silica con-

centrations. However, groundwater is a fairly common

source for cooling tower makeup, and some supplies,

particularly in the West, may contain 30 to 50 ppm of

silica. Thus, the high makeup silica will greatly limit the

cycles of concentration in the tower, unless some of it is

removed from the makeup.

If phosphorus discharge is prohibited, one possible al-

ternative for recirculating water treatment is an all-polymer

treatment program. 1A simple polymer, often a polyacrylate,

typically is included in a phosphate/phosphonate program

to act as a sequestering agent and/or crystal modifier. An

all-polymer program on the other hand relies on what are

known as co- and ter-polymers that have more than one

functional group to act as the sequestering agents/crys-

tal modifiers. If an all-polymer program is not an option,

phosphate can very readily be removed from water streams

by reaction with iron or aluminum in a clarifier. Of course,

R E F E R E N C E S1. Buecker, B., Post, R., P.E., and R. Aull, P.E., “Chemical Treatment and Fill Selection Methods to Minimize Scaling/Fouling in Cooling Towers”; from the Proceedings of the 72nd Annual International Water Conference, November 13-17, Orlando, Florida.

Page 14: RMEL Electric Energy Issue 2 2014

14 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

wastewater clarification increases the com-

plexity of the wastewater treatment process.

Given the continuing evolution of dis-

charge regulations, other impurities may

appear on future permits. Chloride and

bromide may be regulated in the future.

Other heavy metals may appear. For this

reason, some experts in the industry recom-

mend that new plant design include zero

liquid discharge (ZLD) treatment so that plant

personnel will not have to worry about future

regulations, whatever they may be. ZLD is not

an easy process and must be planned carefully. The next

section outlines an emerging technique that can play an

integral part in ZLD design.

Backend Discharge ReductionSeveral methods are possible to reduce the volume of

plant discharge, but I wish to focus on one technology, a

generic diagram of which is outlined below. Keys to the

process are:

• Micro- or ultrafiltration (UF) to remove suspended solids in

the waste stream.

• Sodium bisulfite (NaHSO3) feed to remove residual

oxidizing biocides.

• A sodium softener to remove calcium and magnesium.

• Sodium hydroxide injection to elevate the pH above 10.

(The combination of hardness removal and pH elevation

keeps silica in solution.)

• Two-pass reverse osmosis (RO) treatment to recover

90 percent of the water.

While the process appears straightforward, a number of

lessons-learned have emerged. These include:

• Some standard water treatment chemicals may foul MF or

UF membranes

- Most MF or UF membranes, and reverse osmosis mem-

branes for that matter, carry a slight negative charge.

Cationic polymers can be death to the membranes.

- The membrane manufacturer and type may greatly

influence this phenomenon

- Use of upstream multi-media filters to help remove

treatment chemicals may be completely ineffective.

• Use of poor quality backwash water for the UF mem-

branes may result in scaling of the effluent surface of

the membranes.

Even when the system outlined in Figure 1 operates

steadily, a waste stream still remains and must be disposed.

Potential solutions include:

• Deep well injection

• Evaporation pond(s)

• Thermal evaporation/crystallization

• Have the material transported off-site to a waste

disposal firm

All of these techniques require careful planning. Deep

well injection and evaporation ponds both require envi-

ronmental evaluations and the required permits before

implementation. Permission is often not granted. Deep well

injection has its own set of technical issues including the

need to pump the material at high pressure into the well(s)

and the possibility of scale formation within the well casing,

particularly as temperatures increase deeper underground.

Thermal evaporation/crystallization is a proven tech-

nology, but these systems typically require a significant

amount of energy, plus they can be labor and main-

tenance intensive. However, one design that has been

successfully applied in the salt production industry and at

other facilities employs crystallizers that operate under a

partial vacuum. The vacuum greatly lowers the distillation

temperature, thus reducing energy requirements and also

mitigating scale formation. I can provide contact details for

any interested readers.

Power plant personnel are facing tighter restrictions on waste

stream discharges and thus will have to plan accordingly.

Brad Buecker serves as a Process Specialist with Kiewit

Power Engineers in Lenexa, KS. He has over 33 years of

experience in or affiliated with the power industry, much of

it in chemistry, water treatment, air quality control, and re-

sults engineering positions with City Water, Light & Power

in Springfield, IL, and Kansas City Power & Light Com-

pany’s La Cygne, KS station. He has B.S. in chemistry from

Iowa State University, with additional course work in fluid

mechanics, material and energy balances, and advanced

inorganic chemistry. He has written many articles and

three books for PennWell Publishing on steam generation

topics. He is a member of the ACS, AIChE, ASME, CTI, and

NACE. He is also a member of the ASME Research Com-

mittee on Power Plant & Environmental Chemistry and

the program planning committee for the Electric Utility

Chemistry Workshop.

FIGURE 1: GENERIC OUTLINE OF AN EMERGING WASTEWATER TREATMENT TECHNOLOGY

CTBlowdown

UF or MF

NaHSO3

NaOH

High pHRO Unit

Reject toPond or

E/C

PermeateReturn toProcess

SodiumSoftener

Page 15: RMEL Electric Energy Issue 2 2014

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Page 16: RMEL Electric Energy Issue 2 2014

16 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

n 1993, the City of Cody’s Municipal Electric Utility stood

at a crossroads. There was

considerable public criticism,

largely justified, due to frequent

outages. The system was aging

and the leadership team did not

have a clear picture of required

improvements. There were

public calls to sell the utility to the In-

vestor Owned Utility (IOU) that served

the areas surrounding the town.

A new Mayor was elected. He lis-

tened to the citizens’ concerns, spoke

with other municipalities and deter-

mined that a complete overhaul of the

city electric department was neces-

sary. He felt that the sale of the utility

to an IOU would cost the city control

of its rates and the ability to determine

what improvements would be made

and when. He also felt that portions of

the city that were currently served by

the IOU should be served by the city.

Later that year, the mayor hired

the city’s first electrical engineer to

head up the electric department. The

engineer determined that there were

numerous technical challenges facing

the utility. Three substations served

the city: two owned by the Western

Area Power Administration (WAPA)

and one owned by the city. One of the

WAPA substations was severely dated

and had limited capacity. The other

had recently been upgraded, but there

were challenges with the upgrade that

resulted in several extended outages.

The third substation, installed by the

city, was a padmounted, self-con-

tained unit that couldn’t be serviced

without taking it offline. There were

no adequate tie lines to allow load

transfer between substations, so

maintenance on the substation was

behind and could only be completed

if the loads it served were without

power for extended periods of time.

When it could be taken offline, the

other two substations could only

accommodate a portion of the load.

Even limiting additional load to the

two remaining substations challenged

the system. Seventy percent of the

distribution system was overhead and

30 percent was underground. The un-

derground lines had been installed in

BY BERT POND, ELECTRICAL ENGINEER, CITY OF CODY

UTILITY TRANSFORMATION

UTILIZING TOP-TO-BOTTOM

TEAMWORK

Page 17: RMEL Electric Energy Issue 2 2014

W W W . R M E L . O R G 17

the very early 1970s, were direct-bur-

ied and the majority of the transform-

ers on the system were overhead units

mounted in doghouses. This required

the primary connections to be live

front design, creating dangerous

conditions for personnel accessing

the units. The overhead systems were

more than 40 years old and in need

of rebuilding. Another problem facing

the system was that almost none of

the city’s distribution transformers

had been tested for PCBs and the city

was behind in meeting EPA require-

ments for the testing and cleaning of

its transformer inventory, both on the

system and in stock.

The engineer developed a plan to

upgrade the system involving trans-

former testing, initiation of voltage

conversion, substation upgrades

and the creation of computer-based

mapping for the entire distribution

system. The mayor and council were

extremely supportive of the plan and

authorized the

expenditure of

funds to com-

plete the work.

All transform-

ers were tested

within a three-

year period. The

PCB-contami-

nated transform-

ers were removed from the system

and properly disposed of by the end

of 1996. The city initiated a voltage

conversion project starting with those

areas served by the most recently up-

graded WAPA substation. The system

voltage was raised from 4.2Y/2.4 kV

to 12.5Y/7.2 kV. This area represented

approximately one-third of the city.

Numerous step-up transformers had

to be installed on the system to create

“pinch points” that limited the amount

of capacity available during substa-

tion load transfers. The next step

considered was the upgrade of the

oldest of the WAPA substations. It was

determined to be more cost-effective

for the city to replace the old WAPA

substation with a new one, owned by

the City of Cody. The city owned land

immediately adjacent to the oldest

substation; this allowed the city to

build a parallel substation with twice

the capacity, using up-to-date regula-

tion equipment and electronically

controlled reclosers with only a brief

outage during switchover. Instead of

one circuit, the new substation was

built with three. It was also designed

with a dual voltage secondary so that

the voltage conversion could ex-

tend to an additional third of the city.

This substation came online in 1996.

While this aided the capacity short-

age for the city’s system to a degree,

its substation was still too small and

could only serve at 4.2 kV. It was also

upgraded. To alleviate the inability

to back up the other substations,

this station’s capacity was more than

tripled. Finally, a new computer-based

mapping system was completed that

allowed easy map updates as well

as provided an accessible, detailed

system database.

The mayor who initiated the trans-

formation felt that the strong mayor/

council form of government was un-

able to provide the specialized exper-

tise necessary to develop a systematic

method of approaching infrastructure

upgrades and setting long-term goals,

not only for the electric system but

also for water, sanitary sewer, road-

ways, parks and recreation, and storm

sewers as well. He felt the city would

be best served by the city administra-

tor form of government, an idea he

brought to the public, who sup-

ported it. A new charter was approved,

PENDLEY SUBSTATION

SETTING THE NEW PENDLEY SUBSTATION TRANSFORMER

Page 18: RMEL Electric Energy Issue 2 2014

18 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

adopting a city administrator

form of government in 1999. It

was through these efforts that

the city was able to purchase

and serve the remaining areas

of town still supplied by the

Investor-Owned Utility.

With support from the ad-

ministration and city council,

the electric division reversed

the mix of overhead versus

underground distribution so

that it now consists of 70

percent underground and

30 percent overhead facili-

ties. In addition, 60 percent

of the remaining overhead

lines were rebuilt and an aggressive

cable upgrade program is replacing

old underground lines with new lines

installed in conduit.

The fourth stage of the transforma-

tion was probably the most important:

the employment and use of well-qual-

ified lineworkers and their inclusion

in the early stages of new projects.

Rather than the engineer producing a

project design and passing it to opera-

tions to install, the engineer drafts ini-

tial plans and estimates for a project,

and then has operations review those

plans and suggest changes. This input

improves the installation phase as well

as addresses maintenance concerns

more easily recognized by people

in the field. Suggestions made by

operations personnel reduces outage

times when they occur, improves the

system’s reliability and dramatically

improves the public’s perception of

the city’s electric system.

The teamwork of the city’s govern-

ment, the administration, the engi-

neering and the operations branches

have led to a long list of changes and

improvements in the electric system.

These include:

1 The electric system is PCB-free.

2 The conversion of the distribu-

tion system from 4.2 kV to 12.5 kV

operation is nearly complete.

3 Ninety percent of the distribution

system is loop-fed.

4 Seventy percent of the system is

underground and thirty percent is

overhead.

5 Seventy percent of the city system

has been upgraded within the last

20 years.

6 All areas within the city limits are

served by the City of Cody Electric

System.

7 All substations can be tied to-

gether with load transfers, allowing

scheduled maintenance of the

substations.

8 To increase the lifespan of new

underground lines, the use of 25

kV cable placed in conduit for all

new additions and cable replace-

ment projects is required.

9 The city’s mapping system is Au-

toCAD-based and uses AutoDesk

Utility Design Software.

10 Nearly 95 percent of all distri-

bution transformers have been

replaced in the last 20 years,

partially by design but mainly as a

requirement of the system voltage

conversion.

11 System reliability for all causes

(scheduled and unscheduled out-

ages) has average 99.979 percent

over the last six years.

12 The city performs 98 percent of all

engineering and installation using

its own personnel.

13 The city’s streetlights (1,145 lights)

have been converted to LED, lead-

ing to a 60 percent reduction in

streetlight energy usage and a 70

percent reduction in streetlight

maintenance costs.

14 System upgrades are now well

planned and scheduled to fit

within the city’s budget.

15 The electric system is 100 percent

debt-free.

In summary, the entire city organi-

zation—the city government, the city

administration, engineering and op-

erations—has worked as a team, mak-

ing this city’s system work efficiently

and reliably. Without any one of these

team members, very little of the prog-

ress would have been possible.

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Page 19: RMEL Electric Energy Issue 2 2014

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Page 20: RMEL Electric Energy Issue 2 2014

20 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

NEW ROADWAYS, WIND FARMS, HIGH-VOLTAGE transmission and pipeline projects are all facing development

challenges at the federal, state and local levels. The hurdles

electric utilities face are parallel to those across energy indus-

tries. As projects continue to encounter these hurdles, social

approval of these projects is quickly becoming a deal-breaker.

Several industries are responding to this level of public par-

ticipation by setting new industry standards for communicat-

ing with stakeholders, landowners, communities, officials and

agencies. To meet this demand, smart industry leaders rely on

standardized public engagement approaches as critical to suc-

cess, not just of individual projects, but of the overall company

reputation and industry image.

INDUSTRY EVOLUTION. The National Environmental Policy Act (NEPA) established a

federal process for environmental review of development proj-

ects, including public comment periods so the community could

have a voice. Comments are collected, reviewed, considered,

and sometimes included in revisions of the environmental review

documents. NEPA was the flagship of public engagement.

Fifty years ago, people had fewer opportunities to engage

in projects outside of attending public hearings and read-

ing mailed information. As our society has evolved to a wired

or now wireless community, technology has provided new

sources for information gathering and participation.

Electric utilities and the energy industry must reach beyond

simply meeting requirements and evolve to relate to stakehold-

ers of today’s society. Successful public engagement has the

ability to strengthen community relationships and reputations

for your project and company. However, if success is to be real-

ized, evolution must occur as an industry and not on individual

projects and stand alone companies. Now is the time for leaders

to develop best practices, review success stories from other

projects and develop a new standard for outreach industry wide.

COMMUNITY UNDERSTANDING. What is your reputation in the community? Have you had

a recent project stopped by public controversy? What do you

risk if you open up your process to public opinion? What do

you gain?

Stakeholders, from the boardroom to the union, are differ-

ent for every organization, in every region. Each stakeholder

group will have local and regional differences that make it

LEFT ENGAGING IMPACTED STAKEHOLDERS TO EDUCATE AND INFORM RIGHT PROVIDING FORUMS FOR MEANINGFUL PUBLIC DIALOGUE

Through Robust Public Involvement and Early Stakeholder Engagement

Building Relationships & Reputations

by Theresa McClure, HDR, Omaha, Strategic Communications & Public Involvement Manager; Emily Hyland, HDR, Minneapolis, Strategic Communications & Public Involvement Manager; Katie Hatfield Edstrom, Ph.D, HDR, Omaha, Strategic Communications & Public Involvement Senior Coordinator

Page 21: RMEL Electric Energy Issue 2 2014

W W W . R M E L . O R G 21

nearly impossible to apply a standardized outreach approach

for public engagement. Yet, certain processes apply, coast

to coast, industry to industry. It is imperative to define what

“stakeholder” means for your organization or project. Most

importantly, consider all of the people who may experience

quality of life changes in their community as a result of your

initiative. Understanding where your stakeholders are coming

from, and what might be important to them, will help frame

your project’s purpose and need and better position it for

public acceptance. Stakeholder analysis is the first step toward

determining the range of public engagement necessary to

encourage meaningful participation.

Beyond understanding the needs of the community, a

thorough issues analysis will help to uncover unknown or

unforeseen constraints, and often opportunities, that would

either explode or calm the public and political process on

your project. In the realm of infrastructure development,

stakeholders are bombarded with project after project, creat-

ing corridor and public meeting fatigue, and eliminating the

ability to get critical grassroots input.

While understanding com-

munity needs and issues is the

first step in a standard approach

for public engagement, it is all for

naught if a transparent process

is not in place to collect, discern

and incorporate meaningful infor-

mation into the decision-making

process. Today’s public demands

clarity, brevity and a voice. Most

importantly, in the age of the 24-

hour news cycle and the demand

to have current and accurate

information readily available on

the web, projects are inevitably

prone to public scrutiny. While

this might draw concern, opening your process to the public

can be an opportunity for community confidence building.

Every piece of information that can be made public should be

to clearly articulate, enforce and communicate back to your

stakeholders in an open and reciprocal process.

OUTREACH STRATEGY. A well-coordinated, inclusive and robust stakeholder en-

gagement process will help develop a project that is sustainable

and provides a framework for relationship building in any region.

Each project or organizational initiative will require a custom-

ized approach that best serves specific project and stakeholder

needs. Each strategy should be designed to carefully select

appropriate tools to collect, understand and incorporate stake-

holder input. The process starts with planning an effective out-

reach program that will help facilitate broad public involvement.

Understanding what makes each company and community

tick is the essence of developing an achievable approach that

allows active participation from all levels of the company and

community. Regardless of the region or community your proj-

ect will impact, a suite of print and web-based channels will

be needed to reach all stakeholders. This includes developing

unique and sometimes bold strategies that leverage standard

media outreach, social media and interactive web-based tools,

allowing the audience to view content at their convenience. It

is important to determine the right media and delivery chan-

nels to support communication goals.

Providing an opportunity for one-on-one interaction is also

important. While this type of interaction might be faced with

some trepidation, this intimate engagement can be accom-

plished by attending large public meetings or small grassroots

events and everything in between. Throughout the project

development process, you should be working to develop

relationships with your stakeholders in a way that proactively

advances public opinion toward consent, project support and

acceptance. Consider how you can include those who might

oppose your project and involve them in ways that educate

and potentially sway their views. Invitational dialogue can go

a long way to show commitment to

all stakeholders. It is the old art of

compromise. In the end, the project

will benefit from decisions that reflect

not only the sound technical require-

ments of the job, but also a partner-

ship with the community.

SUPPORT. An outreach strategy is only as

good as the team executing the plan.

Support from all levels of leadership

within your company and the project

team are required for the outreach

vision to be successful. Working

through internal speed bumps may

slow the full strategy integration program, however, even if

you allow time for several levels of company leadership to

approve the outreach strategy process, it will streamline the

outreach process when you are in the thick of the project.

MESSAGING, MONITORING. AND ADAPTING.

Ongoing and consistent messaging from the conception

of a project to the day the ribbon is cut brings added value to

a project. If every project team member is provided with key

messages and major project themes, they can accurately talk

to anyone about the project being proposed or constructed.

One of the top ways to lose trust with members of the

public is inconsistent messages and responses. For example,

if a landowner attends a public open house meeting and asks

a project representative about right of way easements and is

provided one answer and then asks another project represen-

tative about right of way easements and is given a different

INNOVATIVE USE OF MOBILE TECHNOLOGY TO INSPIRE PUBLIC PARTICIPATION

Page 22: RMEL Electric Energy Issue 2 2014

22 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

answer, the landowner will be skeptical of all of the information provided at the open

house meetings. To help mitigate the problem of inconsistent messaging, media and

public meeting training is essential. The more comfortable project team members are

with their messages and talking points, the more likely their answers will be delivered.

Listening is even more important than messaging. You can be sure that with pages

of messaging developed for a project, there are bound to be questions or issues

that arise during the life of a project. A project team must employ avenues to listen,

track and respond to the conversation. Each stakeholder may not be involved in the

outreach process from start to finish and additional stakeholders may weave in and

out throughout the process. Tracking stakeholders’ participation, understanding their

issues and location within the project

area allows the project team to review

the outreach strategy and develop

messaging that addresses the stake-

holder’s concerns. Reviewing messag-

ing should be an ongoing component

of successful communication.

SOCIAL AND INTERACTIVE. MEDIA.

The free social tools available today

surpass anything companies were

using 10 or 15 years ago. Consider

how many times a day you search for

information on the internet. Do you

have a personal Twitter account? Are

you frequently on Facebook? If you are

using these tools to gather information,

don’t you think a stakeholder would be

interested in using these same tools to

hear about your company or upcom-

ing projects? A tweet about an upcom-

ing open house meeting is a quick and

easy communication avenue.

Social media should be used as a

form of two-way communication. If

the tools are only being used to push

information out, the social and com-

munity aspect are lost. Use social me-

dia such as Twitter, Facebook and You-

Tube, as a critical listening tool, where

you can manage, monitor and adapt

your message. If you aren’t listening,

you may miss a post from a project

supporter or be disengaged when an

opposition group forms against your

project. Listen and engage! It’s the

most valuable aspect of social media.

RETURN ON INVESTMENT. (ROI).

Understanding the true cost of an

open house meeting, newsletter mail-

ings and tweets can assist in select-

ing the most appropriate methods

of communication. Just as a project

tracks and adapts messages, a project

team must also understand the costs

associated with the outreach strategy

and modify tools and techniques if the

return is lower than expected. If the

data shows your tool has a low return,

go back to the drawing board, identify

a new approach and try it.

Ask stakeholders how they prefer

to be contacted. Review the analytics

Corporate Office 562.220.1450 www.total-western.comContact Ezra Jenkison or Ron Matson

Page 23: RMEL Electric Energy Issue 2 2014

For ore information about the pr ogram:John Pierce, [email protected]

800-933-7223 ext. 8394. If you are interested in hiring graduates:

Shelly Tolle, [email protected] ext. 8242

www.southeast.edu/EnergyGenerationOperations

What employers say about SCC’s program: “LES appreciates the foresight at SCC that drove investing the time and resources to bring the Energy Generation Operations program online. Having a local program that Nebraska utilities can help mold to fit their specific needs is a valuable resource that LES is proud to be a part of. The desire to source locally-educated and skilled operations staff for our generation facilities has been met by SCC with this program."

Brian McReynoldsGeneration OperationsLincoln Electric System

Southeast Community College in Nebraska offers an associate degree program designed to satisfy the need for entry-level operators at utility power plants, ethanol production facilities, wind farms, and other process-related industrial sites. The Energy Generation Operations program is taught face-to-face on SCC’s Milford, Neb., Campus. Some courses also are offered online.This program is intended to train workers to be operators at nuclear, fossil fuel, biofuels, wind, solar, and other types of energy generating facilities, including electrical and fluid fuel systems. SCC designed the program based on common core skills and competencies required by operators at all types of energy production facilities. The program enhances SCC’s Electronic Systems Technology (I&C) and Electrical & Electromechanical Technology programs, which have been supplying highly-qualified technicians and electricians to the utility industry for decades.

The program consists of five quarters of instruction in core competencies common to all types of energy generation operations. The final sixth quarter is our focus quarter in which students choose from Nuclear, Fossil Fuels, or Process Operations focuses. Because SCC works on the quarter system, students can achieve their two-year degree in 18 months. SCC collaborated with various service providers in developing the program, including the Nebraska Public Power District, Omaha Public Power District, Black Hills Energy, Lincoln Electric System, the Nebraska Ethanol Board, American Wind Energy Association, and the Nebraska Wind Working Group.

Energy Generation Operations program trains entry-level operators

Page 24: RMEL Electric Energy Issue 2 2014

24 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

of how they currently receive project information to understand the effectiveness and

efficiency of your communication tools. Stakeholders may prefer electronic forms of

communication instead of hard copy mail. People have busy lives and may not make it a

priority to attend a public meeting. Using online tools or social media forums to create a

community conversation may create a better venue for project discussion.

MOVING FORWARD. While the practice of involving the public and other interested groups in a proj-

ect’s early stages is nothing new, the level of stakeholder influence and engagement

has never been higher. This trend will continue upward as infrastructure budgets

shrink and the problems we, as

industry leaders, work to solve

become more and more complex.

Additionally, regulatory require-

ments will continue to impact

our projects. As a result, leaders

in the electric energy industry

must move beyond the require-

ments set by federal, state and

local standards. They must look

for ways to engage a community

in an authentic way. Industry lead-

ers must set new standards for

engagement to blaze a path for

productive project implementation

and industry progress.

Recently Minnesota’s Great

Northern Transmission Line project

was lauded by the Obama adminis-

tration as a “leading example in 21st

century infrastructure” projects.

The project engaged stakehold-

ers over the course of two years

at more than 75 public meetings,

utilized online engagement tools,

and found ways to meaningfully

engage landowners, tribes, agen-

cies, politicians, and other inter-

ested stakeholder groups.

This trend of robust engage-

ment is on the rise. Various

electric utilities are investing in

communities by giving staff op-

portunities to step outside the

office and build real relationships

with the surrounding communi-

ties. Think about the opportuni-

ties available for your company

to make a difference in the lives

of the people in the commu-

nity in which you work and live.

What small or large changes can

your company or project team

make that may create a lasting

impression of your company on

a particular community? The first

step is to create opportunities for

people to have their voices heard.

If your engagement program suc-

cessfully gives your stakeholders

a voice, be sure to listen. And be

true to your engagement pro-

gram, as it will allow you to adapt

and build relationships.

Page 25: RMEL Electric Energy Issue 2 2014

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Page 26: RMEL Electric Energy Issue 2 2014

26 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

BY JIM WALTERS, EdD, OWNER, POWER OF LEARNING, INC.

A MATTEROF HABIT

Changing Leadership Styles:

Page 27: RMEL Electric Energy Issue 2 2014

W W W . R M E L . O R G 27

Last summer’s edition included my article, “Leading for Safer and More Civil Environments,”

which generated interest in how to change leader-

ship style, and specifically how to change from a

leadership style that relies primarily on positional

power to a style that embraces trust and relationship as a

means of influence. This article is devoted to helping those

interested in changing their leadership style to more ef-

fectively lead today’s more knowledgeable, demanding and

empowered workforce.

Leadership is about the ability to influence others. During

the Industrial Revolution, leaders influenced subordinates

in the same way they managed machines: with basic care.

They made sure that gears were well oiled so machines

would work at the push of a button; workers were provided

paychecks so operations would run just as smoothly when

bosses told them what to do.

A shift from the boss-centered leadership style began as

far back as the ’70s with the realization that leading people

was far different from managing machines. As workforces

became more informed and better educated, treating them

like machines didn’t work; a subordinate-centered leader-

ship style was soon ushered in. Indeed, humans are not

machines; they are living systems with feelings, goals and,

perhaps most importantly, a fundamental desire to choose.

This means that leading in the 21st century requires leaders

who demonstrate respect for workers by nudging more than

pushing behavioral change.

Effective leaders in the 21st century understand the dif-

ference between managing and leading and the need for

adopting a more humanist approach in their leadership prac-

tice. As shown in Table 1—Industrial/Information Age Leader-

ship, boss-centered leadership style fuels us/them interac-

tions and virtually eliminates opportunities for trust-building.

Without the opportunity to build trust, leaders’ ability to

influence is significantly eroded. Contrarily, subordinate-

centered leadership is founded on relationships that include

workers as much as possible in decisions that affect them—

subordinates are nudged rather than pushed.

You should be concerned about developing your leader-

ship practice for several reasons, not the least of which is

worker incivility and its impact

on safety. Statistics from the

May 2013 Security Director’s

Report from the Institute of

Finance and Management,

How Will You Stem the Tide

of Workplace Incivility (and

Worse)?, incivility has increased

by 33 percent for utilities and

the construction and mining

industries as a group. These,

and other related statistics,

underscore the need for continued

development to change leadership

style to a more people-centered

leadership practice.

Subordinate-centered leadership

shifts power from the traditional “by

position,” where, like the military,

as one ascends the hierarchy, more

information is entrusted to him/

her. Yet positional power today is

less effective since information is

ubiquitous. These two forces alone

beg the question:

How do I lead an informed and

more intelligent workforce?

Before delving into this question, it is important to un-

derstand I am not suggesting a subordinate-centered style

in all situations—nothing in life is absolute. I am suggesting

leaders learn subordinate-centered leadership and practice

nudging first and pushing second.

Observing those by whom we are led typically forms

leadership habits. To be sure, leadership style has deep roots

and is difficult to change. The difficulty lies in the lack of

personal preparation for changing habits. With the help of

author Charles Duhigg (The Power of Habit), here are some

strategies for personal preparation toward changing leader-

ship habits/style and the process of changing habits.

STRENGTHEN EMOTIONAL INTELLIGENCEChanging a habit requires willpower and strengthening

one’s emotional intelligence can help. Emotional intelligence

(EQ) relates to how leaders manage their behavior and rela-

tionships with others. In EQ parlance, the former is referred to

as personal competencies (e.g., self-awareness), and the latter

as social competencies (e.g., ability to empathize). As shown

in Figure 1, body behaviors are motivated by signals from the

external environment and body sensory sources. The signals

travel cell to cell on their way to the neocortex, which is the

home of logical thinking. This means we experience emo-

tions first and thinking second and further explains without

management of emotions, we are prone to primal outbursts,

Management connotes control; manager refers to a position in an organization, controls what subordinates do.

Leadership connotes influ-ence; leader refers to influenc-ing others, not position; ability influence (lead) is associated with potentially any worker.

TABLE 1: INDUSTRIAL/INFORMATION AGE LEADERSHIP

Industrial Age—20th Century Boss-centered—Push

Information Age—21st Century Subordinate-centered—Nudge

Information = Power = I have it Information = Power = Everybody has it

Feelings are not important Humans have an innate sense of justice

Centralized control Autonomy with accountability

Adversarial relationships Cooperative relationships

Autocratic decision-making Shared decision-making

CEO or boss is “king” Customer* is “king”

* Remember internal customers.

Changing Leadership Styles:

Page 28: RMEL Electric Energy Issue 2 2014

28 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

demonstrating poor so-

cial skills and an inability

to empathize and accept

criticism. How, then, can

habits change if we are

not aware of our

true selves?

From a leadership per-

spective, knowing yourself

spurs authentic relation-

ships and confidence, that

are vital tenets of effective

leadership.

What is more, self-

awareness transcends

organizational position, e.g., Director, because people at all

levels of the organization have an innate ability to influence

others. You may be wondering how can someone who does

not know what upper management knows influence others

so effectively? Here’s a hint—you can be gifted with ability to

think logically and the capacity for abstract thought, (IQ),

but are of little use if you cannot relate what you think and

know to others effectively (EQ).

Researchers like Daniel Goleman, author of Working

with Emotional Intelligence, and Daniel Goleman, Richard

Boyatzis and Annie McKee, co-authors of Primal Leadership:

Learning to Lead with Emotional Intelligence, have dem-

onstrated repeatedly that people with high IQ, often do not

outperform colleagues with lower IQ. Indeed, as IQ rises, the

ability to relate to others’ emotions (EQ) declines, resulting

in decreased leadership effectiveness. Leading in the power

industry is as much about technical ability (IQ)—demonstrat-

ing the ability to build a power line—as it is about behavioral

ability (EQ)—the ability to build trust with crew members. It is

a human performance issue that requires emotionally intel-

ligent leaders.

Bottom line: Read how others perceive you by honing

your personal and social competencies in order to close

the gap between who you are publically and who you are

privately. Closing this gap removes or least diminishes the

communication noise that disrupts sense making. If success-

ful, others will more accurately perceive you as an authentic

person, which is another key trait of effective leadership.

TOWARD-SUCCESS AND AWAY-FROM-FAILURE THINKING

What is it that enables some people to achieve so much?

It is due in part to their tendency to think toward success in-

stead of away from failure. Toward-success thinkers are the

same people who are highly satisfied with life and motivated

to achieve. Those who think towards success understand the

power of the unconscious mind. The power rests in the fact

that the subconscious cannot differentiate between what is

imagined and what is real.

What we tell our mind has

a very powerful effect on

behavior, i.e., our ability to

change habits.

The subconscious is also

unable to recognize a nega-

tive. Consider this request:

Do not think about kanga-

roos. I know—you instantly

thought of a kangaroo.

Maybe you visualized a

kangaroo’s unique eyes, or

maybe you thought about a

Kangaroo’s cousin the Wal-

laby. But I asked you to NOT think about a kangaroo.

Towards success thinking and not recognizing a negative

be used to help us manage our thinking and reward us with

an enriched life.

With reference to Figure 2, trying to lose weight by think-

ing about foods to avoid, e.g., ice cream, deep-fried chicken,

etc. programs the mind to get what it has been programmed

to do—seek fatty foods. In like fashion, thinking about bossy

and self-centeredness actually programs one’s behavior to

be bossy and self-centered.

Allowing one’s subconscious to continually think in terms

of avoiding problems can produce three unhealthy outcomes:

1. When the problem goes away, one is left with no goal.

For example, I don’t want to live in a mobile home. Once I

can afford a stick-built home, I am left with no goal and am

unmotivated until I am left with no home again.

2. Thinking away from failure is automatic for humans

and easily becomes habitual, and works to keep us in a cycle

of fearing the future and thinking of past negative memories.

3. Away-from-failure thinking is akin to eliminating prob-

lems in one’s life in hopes of finding what is wanted. The

problem is, if success were available, the mind would not

sense it because it has been programmed to see failure.

LET TOWARD-SUCCESS DOMINATE YOUR THINKING, ESPECIALLY REGARDING LIFE GOALS

Toward-success thinking is powerful, but not mysterious.

I can’t believe it: Ever since I bought this Volkswagen

Jetta, I see them all over the road!

The brain is very good at pattern-matching, even to a

fault. In 1942, soldiers stationed on the beaches around Los

Angeles fired antiaircraft guns because they thought they

saw enemy planes. Knowing the country was at war, the

mind was alert to war and the soldiers saw Japanese fighter

planes in the sky that did not exist. In the same way, buying

the Volkswagen Jetta alerted the mind to a new pattern—

Volkswagen Jettas. So why not use this power for aligning

one’s life to what is wanted? Doing so programs the mind

LimbicSystem

Neocortex

Brainstem

Spinal Cord

Home ofReasoning

Home ofFeelings

Signalsenter here

FIGURE 1: BODY SIGNALS

Page 29: RMEL Electric Energy Issue 2 2014

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Page 30: RMEL Electric Energy Issue 2 2014

30 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

to think as if you already have

it, thus providing the motivation

to change your habits. Again,

with reference to Figure 2, a

toward-success statement such

as “I can’t wait for the feeling I

am going to get when others

comment about my leadership”

programs the mind to achieve

what it is programmed to do—

receive comments regarding

your newfound leadership style.

Bottom line: Program your

mind to change a habit by

writing a toward-success statement on a piece of paper

that describes your future state. Make it powerful by using

verbs—and keep it short.

VISUALIZATION FOR CRUCIAL CONVERSATIONS

Changing habits inevitably involves having crucial con-

versations. Imagine subordinates trying to make sense of

changes in your leadership style; some will embrace the

change while others will resist. One of the most power-

ful ways to manage these types of situations was taught to

me by Dr. Charles Reinert at Southwest Minnesota State

University in 1986. As a journeyman lineman working on my

bachelor degree, I found myself lying on the floor with other

students with lights out and Kitaro music playing softly, all

this while Dr. Reinert taught biology by having us visualize

key topics of the class. I became a believer and have since

used visualization, also referred to as “image streaming,”

in anticipation of having crucial conversations. Try it for

yourself: Find a quiet room, play some Kitaro (if you are not

familiar with Kitaro, you will thank me for the introduction)

and visualize yourself engaging with the other person: what

you say, his/her reactions and how the meeting ends.

Bottom line: My Leading with Both Brains for Safety’s

Sake workshop introduces the concept of performing a pre-

mortem analysis as a means to proactively unearth potential

incidents. In the same sense, think of the crucial conversa-

tions you will have and prepare yourself for them by visual-

izing how they actually play out.

EMBRACE FOLLOWERSHIPImplicit in Ralph Nader’s quote, “The function of leader-

ship is to produce more leaders, not more followers,” is a

focus on worker development more than seeing workers

strictly as entities who work. Followers are no longer passive

entities; they are complex and intelligent beings that have

a high-level need for acceptance. Attempting to change a

professional habit without a solid understanding of why or

whom the change will affect is

a recipe for failure.

Authors James Kouzes and

Barry Posner in Credibility: How

Leaders Gain and Lose It, Why

People Demand It underscore

the importance of subordinate-

centered leadership. The

authors’ research listed honesty,

forward-looking, inspiring and

competency as the top four

things workers wanted from

their leaders. Most important to

our discussion of subordinate-

centered leadership style were the things the workers cited

least often: unyielding ambition and fierce independence.

The top and bottom of the list are polar opposites and speak

loudly. If a leader is too ambitious, he/she may run over fol-

lowers and, contrarily, if a leader is too independent, he/she

may not care to connect with followers.

Bottom line: Think process over product. Make sure to

understand what drives your followers, how they react, how

they can help you and how you can help them.

LEARN TO CHANGE HABITSPreparing one’s mind by enacting all or at least some

of the preparation strategies described will provide a solid

foundation for embarking on habit change. In my consult-

ing work, I am always surprised to find leaders who attempt

to change habits associated with customer service attitudes

or lineman attention to safety with one-day workshops on

attitudes of outstanding customer service representatives or

how to work safely as a lineman. These approaches are inef-

fective because they address a human performance issue, a

habit, with a stepwise technical solution.

Habits are behaviors that are repeated and ultimately

become part of the subconscious; the behavior is hardwired

into the brain. Hardwiring is the mind’s way of budgeting the

conscious mind by placing repeated behaviors in long-term

memory. Since hardwiring exists for any given behavior, it

doesn’t take much mind-energy to do it.

When behaviors are hardwired, it takes significant cogni-

tive effort to break the cycle. Author Charles Duhigg (The

Power of Habit) provides a wonderful model that determines

the motivator for the habit (Cue), the behavior(s) engaged in

(Routine) and the benefit received (Reward). Once the com-

ponents of the habit loop are identified, one can work sys-

tematically to change the habit. For example, John wants to

know why he gets a knot in his stomach often when meeting

with his team. After all, on several occasions, he saves the

day by making the decision for the team. Cues could be

team members’ body language conveying distrust, meetings

FIGURE 2: TOWARD AND AWAY THINKING

TOWARD:SUCCESS

“I am going to look great after I change my diet

and exercise more.”

“I can’t wait for the feeling I am

going to get when others comment

about my leadership.”

AWAY:FAILURE

“I need to avoid these foods

in order to be slimmer.”

“I need to be less directive, bossy,

and self-centered in order to gain the respect of

others”

Page 31: RMEL Electric Energy Issue 2 2014

W W W . R M E L . O R G 31

that are held on Fridays at 3pm that impinge on week-

end time and/or John’s suffering emotional state due

to recent problems at home. Routines could include

John going to the cafeteria and getting a large soda

often, which has resulted in weight gain. The Reward

could include John deriving the pleasure of a sugary

drink. With this information, John can narrow down the

reward that is responsible for his habit loop. Maybe it’s

the energy rush from the soda; maybe it’s the solitude

associated with the walk to the cafeteria, etc. As you

test various rewards, jot down the first three things

that come to mind when you get back to your office.

They can be emotions, random thoughts or anything

that comes to mind.

Then, set an alarm for

15 minutes; when the

alarm sounds, deter-

mine if the urge to go

to the cafeteria still

exists. If so, the habit is

not motivated by the soda

(Duhigg, p. 279). Once the reward

is linked to the routine and the cues are understood,

it is a matter of changing the reward. In John’s case,

it was the conversations he had with colleagues while

walking to the soda machine that he craved. Armed

with this information, he changed his habit from drink-

ing soda to taking social breaks with colleagues.

The challenge of changing leadership style is difficult

because behaviors associated with habits are deeply

ingrained. Overcoming the inertia of ingrained think-

ing requires high-level thinking, an important first step

in changing habits. Tactics such as visualization and

toward-success versus away-from-failure thinking were

presented as effective means to position the mind to

more readily determine and accept change. A well-pre-

pared mind more readily identifies the Cues/Routines/

Rewards of habit loops to confidently take action and

change leadership style.

Jim Walters, EdD, is a former electric lineman and

current owner of Power of Learning, Inc. He provides

employee development services in the areas of safety,

customer service and interpersonal communication,

especially for utilities. More than 1,000 people have

attended his workshops “Get to Know Your Brain for

Safety’s Sake” and “Leading with Both Brains for Safety’s

Sake.” He received an MBA from the University of

Dubuque and graduated from Saint Mary’s University of

Minnesota with a Doctorate of Education in leadership.

Reach him at [email protected] or http://pow-

eroflearning.org or 507-990-8110.

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Page 32: RMEL Electric Energy Issue 2 2014

32 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

Not long ago, managers of our nation’s electric utilities had a pretty reliable indicator at their disposal whenever they needed to project future demand for power in their service territories. All they had to do was look at economic growth. Traditionally, growth in total electricity sales and real GDP were highly corre-lated, expanding and contracting in similar fashion.

In recent years, however, that longtime rule of thumb has not applied. Sometime around 2010, U.S. electricity consump-tion “decoupled” from the pace of overall economic activity, falling almost 1 percent, even despite average GDP growth of 2.2 percent over the same period. It’s not certain whether this break represents a transitory or a permanent shift. However, the evidence suggests that decoupling may well prove to be per-manent due to changing customer preferences, rapid advance-ments in energy efficiency and distributed generation technology.

The implications for power provid-

ers, including rural electric coop-

eratives, are significant. Utility-style

business models built around steady,

predictable growth will need to evolve

if we really are moving into a new

era of static, or even falling, electric-

ity demand. Regulatory frameworks

will also have to adjust. Fortunately,

RECs continue to enjoy many inherent

advantages that should help them

adapt effectively to the challenges of

the future.

ELECTRICITY DEMAND: BY THE NUMBERS

The downtrend in total electric-

ity sales that began in 2008 has been

driven by a significant decline in sales

to the industrial sector, combined

with flat sales to commercial and

residential customers. The only year

with positive growth across all three

sectors was 2010, when the economy

began to emerge from the Great Re-

cession. (See Exhibit 1.)

In the industrial sector, which

includes the manufacturing, agricul-

ture, forestry, fishing, construction

and mining industries, share of total

electricity consumption fell from 35

percent in 1990 to 26 percent in 2013.

Industrial electricity sales shed 10

percent during the sharp economic

downturn in 2008-09 and still con-

tinue to languish. In 2013, sales stood

6 percent below the cyclical peak

reached in 2007.

The residential sector accounted

for about 37 percent of total electric-

ity sales in 2013, the same percentage

accounted for in 2007. Housing square

footage is the main driver of long-term

electricity demand across the sector,

with space cooling being the single

largest end use for electricity.

The U.S. commercial building

sector accounted for approximately

36 percent of total electricity sales in

2013, a slight increase from 35 percent

in 2007. Commercial buildings include

stores, offices, schools, warehouses,

factories, restaurants, churches, gym-

nasiums, libraries, museums, hospitals,

U.S. ELECTRICITYSALES:

DECOUPLEDFROM GROWTH?By Paul Narduzzo, Sr. VP Electric Distribution, CoBank and Taylor Gunn, Economist, CoBank

Page 33: RMEL Electric Energy Issue 2 2014

W W W . R M E L . O R G 33

clinics and jails. The vast majority of

electricity consumed by the commer-

cial sector is used for lighting, space

cooling and ventilation.

Going forward, the U.S. industrial

sector may be poised for a strong

comeback while the residential and

commercial sectors face continued

stagnation or possible net reductions

in energy usage, generally as a result

of increased efficiencies. Recent stud-

ies suggest that the fastest-growing

industrial segments in the United

States over the next few years will be

those that are energy-intensive and

heavily dependent on natural gas.

However, whether or not the prospec-

tive growth in these energy-intensive

industries will be sufficient to put the

total industrial sector’s consumption

of electricity on an upward trajectory

remains to be seen.

CHANGING CORRELATION WITH GDP

Based on historic data spanning

1990 to 2010, the year-over-year

growth rates in real GDP and electricity

sales generally moved in tandem. More

precisely, the correlation coefficient

between the two series measured plus

0.65. (See Exhibit 2.) This all changed

after 2010. Since that year, real GDP

has grown about 2 percent a year,

while total U.S. electricity sales have re-

mained weak. From 2011 through 2013,

the correlation coefficient between

these two series was minus 0.99.

The partial decoupling of growth

in electricity sales from GDP growth

coincides with accelerated adoption

rates of energy efficiency across all

end-use sectors. Ratepayer-funded

energy-efficiency programs in the

United States have expanded, and

the number of states with energy-

resource standards rose from eight in

2006 to 24 in 2012.

Energy efficiency will likely continue

to erode the relationship between

growth in electricity sales and GDP

growth. Furthermore, technology that

enables customers to control how they

consume and generate their energy is

quickly evolving. Distributed generation

(DG) stole the show across the entire

electric utility industry in 2013, and

many industry analysts feel that last

year was merely the opening act.

EMERGING TRENDSFueled by federal and state incen-

tives and declining costs, DG will

continue to gain market share. Solar

is the leading DG technology today,

but natural gas has the potential to

become another primary fuel for DG.

There are 37 million homes in the

United States served by individual

natural gas lines. Greater expansion

of distributed micro-turbines, fuel

cells, reciprocating engines and other

devices will use natural gas at the local

level to provide multiple services.

Rooftop solar technology has

emerged as one of the leading threats

to the central generating station busi-

ness model. With each passing year,

this technology becomes increasingly

affordable and economically attrac-

tive. According to Bloomberg’s New

Energy Finance, solar panel prices

have dropped 77 percent since 2008

and currently cost $0.86 per watt.

The steep decline in solar panel

prices has been driven by the plunge

in the price of polysilicon, and by

Chinese manufacturers’ dumping of

cheap panels all over the world. The

U.S. federal government is consider-

ing trade measures against China

that could result in a 20 percent rise

in the cost of solar panels, by some

estimates. However, over the long run,

solar panel prices are likely to remain

very competitive due to a globally

competitive solar market and rapidly

improving manufacturing processes

for solar panels, particularly among

Chinese manufacturers.

Falling solar panel prices are one of

the main drivers of growth in DG, which

represents about 40 percent of the total

solar market and is the fastest-growing

segment of the market. The Solar En-

ergy Industries Association (SEIA) fore-

casts DG solar capacity to reach 5,000

MW in 2016, surpassing that of utility-

scale solar capacity. Moreover, recent

breakthroughs in battery-storage tech-

nology promise to greatly improve the

economics of DG for users. A number

of companies are reportedly on the

verge of commercializing some very

cost-effective battery technologies that

could revolutionize the use of DG. The

cost of battery storage has come down

much faster than industry analysts had

projected, suggesting that battery stor-

age could compete with natural gas,

even in a low gas price environment, as

early as mid-2015.

EXHIBIT 1: ELECTRICITY SALES BY END-USE SECTORSource: U.S. Energy Information Administration

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

GIG

AW

AT

T-H

OU

RS

Residential Commercial Industrial

COMPOUNDED ANNUAL GROWTH RATES

1990-2000 2000-2011 2011-2013Residential 2.43% 1.76% -1.12%Commercial 3.41% 2.16% -0.66%Industrial 1.21% 0.39% -1.86%

Total Sales 2.28% 0.89% -0.78%

Page 34: RMEL Electric Energy Issue 2 2014

34 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

BUSINESS MODEL IMPLICATIONS

Flat load growth, greater energy

efficiency and advances in DG tech-

nology are propelling the evolution of

the traditional utility business model.

Electric utilities will probably see more

change over the next 10 years than they

did over the previous 100 years. This is

certainly not about the end of utilities,

but rather a tough transition with many

uncertainties. Regulators will continue

to play a major role during this transition

to ensure that the nation’s electric sys-

tem is maintained in a reliable, efficient

and cost-effective way.

Market participants must adapt to

the current low-growth environment.

Over the short term, they will likely do

so by increasing the deal flow involv-

ing unregulated assets that generate

strong yields along with mergers and

acquisitions on the regulated side.

Through the end of this decade, utili-

ties will also be forced to make lasting

changes to their business models as

average electricity demand growth

remains below historic norms and

customers exploit technologies that

afford them more control over their

energy use. Utilities’ mission will likely

broaden from selling electricity to de-

livering a number of energy services.

Many of these energy services will

be tied to technological advance-

ments, which will offer customers

greater control over the generation

and use of their energy. Over the next

three to five years, electric utilities will

have fewer captive customers, so their

business models will need to evolve

and become more customer-centric.

As the utility-customer relationship

becomes more dynamic, utilities

can leverage their position to own

and operate DG systems, manage a

smart grid or offer in-home energy

management tools. These services go

beyond simply delivering electricity,

and provide customers greater control

over their energy use without having

to shoulder any of the burdens.

To aid in this transition, regulators

must allow utilities to compete with the

entrepreneurs and various providers of

disruptive technologies that are being

sold to consumers. Utilities and regula-

tors will have to work together to rethink

how utilities’ costs can be recovered

to make them financially whole while

maximizing the benefits consumers

receive from using new technologies.

At the same time, technology could

possibly create new opportunities for

increased electricity demand among

each end-use sector. For example,

expansion of the U.S. manufactur-

ing base holds significant potential to

transform the industrial sector’s elec-

tricity consumption habits. Increased

proliferation of small electrical devices

coupled with the transmission of mas-

sive amounts of data could provide

a jolt to residential and commercial

electricity sales. Accelerated adoption

rates of electric cars could drastically

shift energy consumption within the

transportation sector away from fossil

fuels and toward electricity. So while

we appear from today’s vantage point

to be entering a prolonged period of

static power demand, the future may

well surprise us.

MEETING THE CHALLENGE AND THE COOPERATIVE ADVANTAGE

The transition of the electric utility

industry over the next few years will

be rocky as both providers and regula-

tors try to keep pace with market

changes. However, the nation’s rural

electric cooperatives will also have a

number of significant advantages to

draw on that will be invaluable as their

boards and management teams work

together to meet these challenges.

One will be the cooperative model

itself, which creates strong, enduring

alignment between the cooperative

and the needs of its membership. An-

other will be the committed financial

support of lenders like CoBank, whose

mission is to serve the rural electric

industry and other vital sectors of the

rural economy. Yet another will be the

credible voice that electric coopera-

tives have developed in Washington

and in state capitals through the ef-

fective work of NRECA and statewide

organizations like Colorado Rural

Electric Association.

All of these factors will serve as

stabilizing forces for RECs in a future

of increased uncertainty. And they will

help ensure that cooperatives adapt

effectively, remain operationally and

financially sound, and continue to fulfill

the needs of the members and com-

munities they serve in years ahead.

EXHIBIT 2: YOY % GROWTH IN REAL GDP AND ELECTRICITY SALESSource: U.S. Bureau of Economic Analysis and U.S. Energy Information Administration

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

2007 2008 2009 2010 2011 2012 2013

YoY% Growth Total Electricity Sales YoY% Growth Real GDP

From 1990 to 2011, YoY growth in real GDP

and electricity sales were positively

correlated by +0.65.

From 2011 to 2013, YoY growth in real GDP

and electricity sales were negatively

correlated by -0.99.

+ –

Page 35: RMEL Electric Energy Issue 2 2014

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Page 36: RMEL Electric Energy Issue 2 2014

36 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

MEMBER LISTINGS

1 ABB, Inc.

2 ABCO Industrial Sales, Inc.

3 ADA-ES, Inc.

4 Advanced Motor Controls

5 Alexander Publications

6 Altec Industries, Inc.

7 AMEC

8 American Coal Council

9 American Trainco Inc.

10 Arizona Electric Power Cooperative, Inc.

11 Arizona Public Service

12 Arkansas River Power Authority

13 Asplundh Tree Expert Co.

14 Associated Electric Cooperative, Inc.

15 ATCO Emissions Management

16 Austin Energy

17 AZCO INC.

18 Babcock & Wilcox Company

19 Babcock Power, Inc.

20 Basin Electric Power Cooperative

21 Beckwith Electric

22 Beta Engineering

23 Black & Veatch Corp.

24 Black Hills Corporation

25 Black Hills Electric Cooperative

26 Boilermakers Local #101

27 Boone Electric Cooperative

28 Border States Electric

29 Bowman Consulting Group

30 Brooks Manufacturing Company

31 Burns & McDonnell

32 Butler Public Power District

33 C.I.Agent Solutions

34 Carbon Power & Light, Inc.

35 Casey Industrial, Inc.

36 CB&I

37 CBS Arc Safe

38 CDG Engineers, Inc.

39 Center Electric Light & Power System

40 CH2M HILL

41 Chimney Rock Public Power District

42 City of Alliance Electric Department

43 City of Aztec Electric Department

44 City of Cody

45 City of Farmington

46 City of Fountain

47 City of Gillette

48 City of Glenwood Springs

49 City of Imperial

50 City of Yuma

51 Co-Mo Electric Cooperative

52 CoBank

53 Colorado Energy Management, LLC

54 Colorado Highlands Wind LLC

55 Colorado Powerline, Inc.

56 Colorado Rural Electric Association

57 Colorado School of Mines

58 Colorado Springs Utilities

59 Colorado State University

60 Commonwealth Associates, Inc.

61 ComRent

62 The Confluence Group Inc.

63 Continental Divide Electric Cooperative

64 Cooling Tower Depot

65 Corporate Risk Solutions, Inc.

66 CPS Energy

67 D.C. Langley Energy Consulting, LLC

68 Delta Montrose Electric Assn.

69 DIS-TRAN Packaged Substations, LLC

70 Dowdy Recruiting LLC

71 E & T Equipment, LLC

72 E3 Consulting

73 El Paso Electric Company

74 Electrical Consultants, Inc.

75 Electrical Reliability Services

76 Emerson Process Management

77 The Empire District Electric Company

78 Empire Electric Association, Inc.

79 Encompass Energy Services LLC

80 Energy & Resource Consulting Group, LLC

81 Energy Reps

82 Enovation Partners

83 Equal Electric, Inc.

84 ESC engineering

85 Estes Park Light & Power Dept.

86 Exponential Engineering Company

87 Finley Engineering Company, Inc.

88 Foothills Energy Services Inc.

89 Fort Collins Utilities

90 Foster Wheeler

91 Fuel Tech, Inc.

92 Gallup Joint Utilities

93 GE Power & Water

94 Golder Associates, Inc.

95 Grand Island Utilities

96 Grand Valley Rural Power Lines, Inc.

97 Great Southwestern Construction, Inc.

98 Greer CPW

99 Gunnison County Electric Association, Inc.

100 Hamilton Associates, Inc.

101 Hamon Research - Cottrell

102 Harris Group, Inc.

103 Hartigan Power Equipment Company

104 HDR, Inc.

105 High Energy Inc. (HEI)

106 Highline Electric Assn.

107 Holy Cross Energy

108 Howard Electric Cooperative

109 Hubbell Power Systems

110 Hughes Brothers, Inc.

111 IBEW, Local Union 111

112 IEC Rocky Mountain

113 IMCORP

114 Incorporated County of Los Alamos Department of Public Utilities

115 Independence Power & Light

116 Integrity Consulting Services

117 Intercounty Electric Coop Association

118 Intermountain Rural Electric Assn.

119 Irby

120 Irwin Industries, Inc.- Power Plant Services

121 J.L. Hermon & Associates, Inc.

122 Johnson Matthey Stationary Emission Control

123 Kansas City Board of Public Utilities

124 Kansas City Power & Light

125 KBR

126 KD Johnson, Inc.

127 Kiewit

128 Kirk Erectors, Inc.

129 Kit Carson Electric Cooperative

130 Kleinfelder

131 Klondyke Construction LLC

132 La Junta Municipal Utilities

133 La Plata Electric Association, Inc.

134 Lake Region Electric Coop Inc.

135 Lamar Utilities Board

136 Laminated Wood Systems, Inc.

137 Las Animas Municipal Light & Power

138 Lauren Engineers & Constructors

139 Leidos

140 Lewis Associates, Inc.

141 Lincoln Electric System

142 Llewellyn Consulting

143 Longmont Power and Communications

144 The Louis Berger Group

RMEL Member Companies

Page 37: RMEL Electric Energy Issue 2 2014
Page 38: RMEL Electric Energy Issue 2 2014

38 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

MEMBER LISTINGS

145 Loup River Public Power District

146 Loveland Water & Power

147 Luminate, LLC

148 Magna IV Engineering Inc.

149 Marsulex Environmental Technologies

150 Missouri River Energy Services

151 Mitsubishi Hitachi Power Systems Americas, Inc.

152 Morgan County Rural Electric Assn.

153 Mountain Parks Electric, Inc.

154 Mountain States Utility Sales

155 Mountain View Electric Assn.

156 Mycoff, Fry & Prouse LLC

157 NAES Corp.

158 Navopache Electric Cooperative, Inc.

159 Nebraska Public Power District

160 NEI Electric Power Engineering, Inc.

161 New Mexico State University

162 Nol-Tec Systems, Inc.

163 Nooter/Eriksen, Inc.

164 Norris Public Power District

165 Northeast Community College

166 Northwest Rural Public Power District

167 Novinda Corporation

168 NRG Reliability Solutions LLC

169 NV Energy

170 Omaha Public Power District

171 Omnicon Technical Sales

172 Osmose Utilities Services, Inc.

173 Otero County Electric Cooperative

174 PacifiCorp

175 Panhandle Rural Electric Membership Assn.

176 PAR Electrical Contractors, Inc.

177 Peterson Co.

178 Pike Electric, LLC

179 Pine Valley Power, Inc.

180 Pioneer Electric Cooperative, Inc.

181 Pipefitters Local Union #208

182 Platte River Power Authority

183 PNM Resources

184 Poudre Valley Rural Electric Assn.

185 Powder River Energy Corp.

186 Power & Industrial Services Corp

187 POWER Engineers, Inc.

188 Power Equipment Specialists, Inc.

189 Power Pole Inspections

190 Power Product Services

191 PowerQuip Corporation

192 Precision Resource Company

193 Provo City Power

194 Quanta Services

195 REC Associates

196 Reliability Management Group (RMG)

197 Reliable Power Consultants, Inc.

198 Rkneal, Inc.

199 Sabre Tubular Structures

200 Safety One Inc.

201 San Isabel Electric Assn.

202 San Marcos Electric Utility

203 San Miguel Power Assn.

204 Sangre De Cristo Electric Assn.

205 Sargent & Lundy

206 Savage Services Corporation

207 Sega Inc.

208 Siemens Energy Inc.

209 Sierra Electric Cooperative, Inc.

210 Solomon Associates

211 South Central PPD

212 Southeast Colorado Power Assn.

213 Southeast Community College

214 Southern Pioneer Electric Company

215 Southwest Energy Systems LLC

216 Southwest Generation

217 Southwest Public Power District

218 Southwest Transmission Cooperative, Inc.

219 Southwire Company

220 Springfield Municipal Light & Power

221 SPX Cooling Technologies

222 SPX Transformer Solutions, Inc.

223 SRP

224 St. George Energy Services Department

225 Stanley Consultants, Inc.

226 Stantec Consulting

227 STEAG Energy Services LLC

228 Storm Technologies Inc.

229 Sturgeon Electric Co., Inc.

230 Sulphur Springs Valley Electric Cooperative

231 Sundt Construction

232 Sunflower Electric Power Corporation

233 Surveying And Mapping, Inc.

234 Switchgear Solutions, Inc.

235 T & R Electric Supply Co., Inc.

236 T&D PowerSkills, LLC

237 Technically Speaking, Inc.

238 TestAmerica Laboratories, Inc.

239 Tetra Tech

240 Thomas & Betts Steel Structures Division

241 Thomas & Betts, Utility

242 Timken Motor & Crane Services, dba Wazee a Timken Brand

243 Total-Western, Inc.

244 Towill, Inc.

245 Trachte, Inc. Buildings & Shelters

246 Trans American Power Products, Inc.

247 TRC Engineers, Inc.

248 Trees Inc

249 Tri-State Generation and Transmission Assn.

250 Trinidad Municipal Light & Power

251 U.S. Water Services

252 UC Synergetic

253 Ulteig Engineers, Inc.

254 United Power, Inc.

255 Universal Field Services, Inc.

256 University of Colorado

257 University of Idaho Utility Executive Course College of Business and Economics

258 UNS Energy Corporation

259 URS Energy & Construction Inc.

260 Utility Telecom Consulting Group, Inc.

261 Valmont Newmark, Valmont Industries, Inc.

262 Vickrey & Associates

263 Victaulic

264 Wärtsilä North America, Inc.

265 Wave Engineering, Inc.

266 WESCO

267 Westar Energy

268 Western Area Power Administration

269 Western Electrical Services

270 Western Line Constructors Chapter, Inc. NECA

271 Western Nebraska Community College

272 Western United Electric Supply

273 Westmark Partners LLC

274 Westwood Professional Services

275 Wheat Belt Public Power District

276 Wheatland Electric Cooperative

277 Wheatland Rural Electric Assn.

278 White River Electric Assn., Inc.

279 White River Valley Electric Cooperative

280 WHPacific, Inc.

281 Willbros Engineers

282 William W. Rutherford & Associates

283 Wyoming Municipal Power Agency

284 Xcel Energy

285 Y-W Electric Association, Inc.

286 Yampa Valley Electric Association, Inc.

287 Zachry Holdings, Inc.

TOTAL NUMBER OF MEMBERS: 287

Page 39: RMEL Electric Energy Issue 2 2014

W W W . R M E L . O R G 39

Engineering, Architecture, Construction, Environmental and Consulting Solutions

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Page 40: RMEL Electric Energy Issue 2 2014

40 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

RMEL 2014 CALENDAR

January 14, 2014San Antonio Introduction to the Electric Utility WorkshopSan Antonio, Texas

January 15, 2014Austin Introduction to the Electric Utility WorkshopAustin, Texas

January 21-22, 2014Utility Financing for Non-Financial Personnel WorkshopLone Tree, CO

February 13-14, 2014Distribution Engineers WorkshopLone Tree, CO

February 21, 2014Safety Roundtable - February 2014 Westminster, CO

March 6-7, 2014Power Supply Planning and Projects ConferenceLone Tree, CO

March 7, 2014Generation Vital Issues RoundtableLone Tree, CO

March 11-12, 2014Transmission Planning and Operations ConferenceLone Tree, CO

March 12, 2014Transmission Vital Issues RoundtableLone Tree, CO

March 13-14, 2014Distribution Overhead and Underground Operations and Maintenance ConferenceLone Tree, CO

March 14, 2014Distribution Vital Issues RoundtableLone Tree, CO

March 27, 2014Electric Utility Workforce Management Conference and Roundtable Lone Tree, CO

April 10-11, 2014Advanced Substation Design WorkshopLone Tree, CO

April 23-25, 2014Health, Safety and Training ConferenceLone Tree, CO

April 25, 2014Safety Roundtable - April 2014Lone Tree, CO

May 18-20, 2014Spring Management, Engineering and Operations ConferenceAustin, TX

June 12, 2014NERC Training Conference and RoundtableLone Tree, CO

June 26, 2014Transmission Operations and Maintenance Conference Omaha, NE

July 29-30, 2014Plant Management, Engineering and Operations Conference Salt Lake City, UT

July 30, 2014Generation Vital Issues RoundtableSalt Lake City, UT

August 2014Safety Roundtable - August 2014Kansas City, MO

September 14-16, 2014Fall Executive Leadership and Management ConventionSan Antonio, TX

September 25, 20142015 Spring Management, Engineering and Operations Conference Planning SessionLone Tree, CO

October 9, 2014Asset Management Conference Lone Tree, CO

October 16, 2014Renewable Planning and Operations ConferenceLone Tree, CO

November 6, 2014Review of Industry Standards for Distribution Workshop Lone Tree, CO

November 14, 2014Safety Roundtable - November 2014 Fort Collins, CO

2014 Calendar of Events

CONTINUING EDUCATION CERTIFICATESContinuing education certificates awarding Professional Development

Hours are provided to attendees at all RMEL education events. Check the

event brochure for details on the number of hours offered at each event.

Page 41: RMEL Electric Energy Issue 2 2014

W W W . R M E L . O R G 41

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Page 42: RMEL Electric Energy Issue 2 2014

42 E L E C T R I C E N E R G Y | S U M M E R 2 0 1 4

ADVERTISER INDEX

Advanced Motor Controls 13 www.advancedmotorcontrols.com (972) 579-1460

AMEC Inside Front Cover www.amec.com (770) 810-9698

Border States Electric 31 www.borderstateselectric.com (701) 293-5834

Burns & McDonnell 15 & 39 www.burnsmcd.com (303) 474-2261

CoBank 29 www.cobank.com (800) 542-8072

DIS-TRAN Packaged Substations, LLC 39 www.distran.com (318) 448-0274

Fuel Tech 10 www.ftek.com (630) 845-4500

Great Southwestern Construction, Inc. 9 www.gswc.us (303) 688-5816

HDR, Inc. 25 www.hdrinc.com (402) 399-1000

Kiewit Back Cover www.kiewit.com (913) 928-7000

Laminated Wood Systems, Inc. 41 www.lwsinc.com (402) 643-4708

Lauren Solar 5 www.laurenec.com (325) 670-9660

Mitsubishi Hitachi Power Systems 19 www.psa.mhps.com (908) 605-2800

Nebraska Public Power District 24 www.nppd.com (402) 564-8561

POWER Engineers 3 www.powereng.com (208) 788-3456

Sabre Tubular Structures 41 www.SabreTubularStructures.com (817) 852-1700

Sega, Inc. 39 www.segainc.com (913) 681-2881

Siemens Inside Back Cover www.siemens.com (303) 696-8446

Southeastern Community College 23 www.southeast.edu (402) 761-8394

Stanley Consultants, Inc. 41 www.stanleygroup.com (303) 799-6806

Sturgeon Electric Co. Inc. 41 www.myrgroup.com (303) 286-8000

T & R Electric Supply Co., Inc. 42 www.t-r.com (800) 843-7994

Total-Western, Inc. 22 www.totalwestern.com (562) 220-1450

Trees Inc. 31 www.treesinc.com (866) 865-9617

Ulteig Engineers, Inc. 7 www.ulteig.com (877) 858-3449

Young & Franklin 37 www.yf.com (315) 457-3110

Zachry Holdings, Inc. 35 www.zhi.com (210) 588-5000

Page 43: RMEL Electric Energy Issue 2 2014

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Page 44: RMEL Electric Energy Issue 2 2014

Powering the Future.

An industry innovator,

Kiewit Power has extensive

experience in the gas-fired,

air quality control systems,

power delivery, renewable

and nuclear markets. Kiewit

serves the power industry

through a number of its

subsidiaries, such as Kiewit

Power Constructors Co.,

Kiewit Power Engineers

Co. and TIC-The Industrial

Company (TIC).

As a full EPC provider, our

in-depth market knowledge

and industry-leading

projects show how Kiewit is

committed to clients and to

remaining a power pioneer.

Kiewit Power Group Inc.9401 Renner BoulevardLenexa, KS 66219(913) 928-7000

Leader in EPC installations for

TODAY’S ADVANCED

GENERATION TECHNOLOGIES