U TILITIES WITH MULTI-STATE SERVICE TERRITORIES
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UTILITIES WITH MULTI-STATE SERVICE TERRITORIES LIHEAP PERFORMANCE MEASURES - A MODEL FOR SUCCESS HHS REGIONAL GRANTEE TRAINING MEETING TUESDAY, APRIL 8, 2014 NEW YORK, NY Presenter: Akm M. Rahman Senior Program Coordinator (LIHEAP - Massachusetts)
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U TILITIES WITH MULTI-STATE SERVICE TERRITORIES. LIHEAP PERFORMANCE MEASURES - A MODEL FOR SUCCESS HHS REGIONAL GRANTEE TRAINING MEETING TUESDAY, APRIL 8, 2014 NEW YORK, NY Presenter: Akm M. Rahman Senior Program Coordinator (LIHEAP - Massachusetts). - PowerPoint PPT Presentation
Transcript of U TILITIES WITH MULTI-STATE SERVICE TERRITORIES
UTILITIES WITH MULTI-STATE SERVICE TERRITORIES
LIHEAP PERFORMANCE MEASURES - A MODEL FOR SUCCESS
HHS REGIONAL GRANTEE TRAINING MEETING
TUESDAY, APRIL 8, 2014NEW YORK, NY
Presenter: Akm M. RahmanSenior Program Coordinator (LIHEAP - Massachusetts)
WHY UTILITY COMPANIES USE KEY PERFORMANCE INDICATORS (KPI)?
TO MAINTAIN STAKEHOLDER ACCOUNTIBILITY
Return-On-Investment (investor-owned)
Profit Redistribution (MUNIS)
Profit Redistribution (co-ops)
Reliability Statistics
Power Restoration
Rate Case Settlements
Employee Satisfaction
SHARE HOLDERS
EMPLOYEES
CUSTOMERS
COMMUNITY
Source: ESRI White Paper, June 2007 Akm Rahman, [email protected]
THE UTILITY LANDSCAPE and LIHEAP• These are multi-billion dollar companies.
• They are buying and being bought out.
• LIHEAP is NOT in their mind all the time.
• COMPLIANCE, MANDATE, etc., may NOT be the right vocabulary.
• How can we walk the walk and talk the talk?
Natural Gas (revenue in 2012)
Electric(Market share)
Southern California Gas $2.5B Duke Energy > $49.3B
Pacific Gas $2.1B Southern Company > $39.6B
ATMOS Energy Corporation $2.1B Dominion Company > $32.7B
Source: American Gas Association, Statista (March 27, 2014), NiSource, and Northern Utilities, Akm Rahman, [email protected]
Examples - Multi-State Utilities in Region I, II, and III
States Served
NiSource (aka Columbia Gas/Electric) - > 3.8M customers
Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana and Massachusetts – 60,000 miles ~
Northeast Utilities (NU) – > 3.6M Natural Gas & Electric customers.
Connecticut, Massachusetts, New Hampshire – 70,000 miles ~
Case Study - National Grid (NGRID) Gas and Electric
KEY INFORMATION
• Reported over $3.76B in net profit (60/40 between UK & U.S.)
• Operates 9,000 miles of transmission lines in U.S.
• Serves 3.4M gas and 3.3M electric customers
• HQ in MA – serves NY, RI, and MA
• Serves over 160 and 130 cities and towns in MA
• Serves over 80 communities in RI
• Offers utility discounts and arrearage management programs for low income customers
• Invests in Energy Efficiency and Renewable Energy
NGRID’s Mergers & Acquisitions
Mass.
Electric/ NSTAR
N.E Power
Nantucke
tElectric
Boston
Gas
Source: Wikipedia, Annual Report, NGRID provided information, and Moody’s. Akm Rahman, [email protected]
Who Can be the Partners?• Federal and State LIHEAP Offices• Local Agencies• Trade Associations, e.g., AGA, EPSA, NAESCO• Work Groups (National, Regional and Local)• Multi-state Utility Companies (e.g., NGRID, NiSource, NU, First Energy)• Public Utility Commissions (MA DPU, NY Public Service, PA Public Utility
Commission, etc.)
- F/S Offices: Sets goals to implement LIHEAP Performance Measures- Local Agencies: Implement State Policies, review results, make
decisions- Work Groups: Develop business rules- Utility Companies: Provide the data, review results, etc., receive
feedback- Public Utility Commissions: Can offer assistance, if needed- Client: Provides Authorization, Waivers, etc.
Akm Rahman, [email protected]
What Strategies Worked In MA?(A Task-Based Approach)• Formed a local work group to define
business rules.
• Conducted extensive outreach to Utility companies, LIHEAP sub-grantees, and regional/national networks.
• Updated Standardized Forms and Released Data Formats/Standards.
• Held several meetings and conference calls with utility company managers and their software partners.
• Used existing reporting structure to build upon past successes.
Working with
Multi-State Utility
Companies
Akm Rahman, [email protected]
Evidence – (NGRID vs. Non-NGRID Groups)
NGRID GAS NGRID ELECTRIC OTHER IOU MUNIS$0
$500
$1,000
$1,500
$2,000
$2,500
$895
$1,088 $1,022
$2,078
$465 $465 $465 $485
772
400 554 564
Average BilledAverage BenefitAverage Consumptions (in Therms)
Note: For illustration purposes only. IOUs in MA offer discounts and arrearage management programs. No statistically significant differences between NGRID and other IOUs. There are significant differences between municipal gas and electric costs and when those are compared with all IOUs. Akm Rahman, [email protected]
NGRID & other Utility Company Provided Information > Performance Measures > Evidence-based Decisions
Heating Costs
Consumption
Disconnection Notices
Service Interruptions
LIHEAP Payment
Arrearage
Participating in Arrearage
Management (AMP)
Completing Arrearage
Management (AMP)Akm Rahman, [email protected]
Replicable Tools (Tangible)
• Standard data collection forms and formats
• Mandatory and optional Performance Measures
• Software Commonality• Software Incompatibility (new vs.,
legacy systems)• New IT technology
Akm Rahman, [email protected]
Replicable Tools (Intangible)
• Best practice states• Regional approach• Knowledge of mergers and acquisitions• Networking support• Project Management (PM) experience• Involvement of Public Utility Commissions• Involvement of Utility company
executives
Akm Rahman, [email protected]
Lessons Learned (WD - 40 and Duct Tape analogy)
• Start NOW• Show stakeholder benefits• Develop business rules• Form partnership with multi-state utilities• Standardize the Tools• Involve your State (going up to the
highest possible level)• MA may need a demonstration grant to
validate/replicate its strategies in multi-state territories
Akm Rahman, [email protected]
Sources and ReferencesNational Grid: https://www1.nationalgridus.com/CorporateHub
LIHEAP Performance Measures Website: https://liheappm.ncat.org/
MA LIHEAP Annual Report: http://www.mass.gov/hed/docs/dhcd/cd/liheap/fy-2012-liheap-annual-report.pdf
MA Data Collection Form: http://www.mass.gov/hed/docs/dhcd/cd/liheap/fy2013consumptiondatarequestformat.xls
LIHEAP Application: http://www.mass.gov/hed/docs/dhcd/cd/liheap/fy14liheap-standardizedapp.pdf
2013 NEAUC, LIHEAP Performance Measures: The Importance of Utility/Vendor Participation http://www.neuac.org/3C_Boland_Edwards_Mueller_Rahman.pdf
http://www.esri.com/
Statista: http://www.statista.com
http://www.acf.hhs.gov/nhsia-definition
www.bestenergynews.com/solar/utility_co/utility_companies.php
Image credits Bing and GoogleAkm Rahman, [email protected]
Questions & Answers
Contact Information
Akm M. RahmanSenior Program CoordinatorMassachusetts Department of Housing & Community Development
100 Cambridge Street, Suite 300, Boston, MA 02114(617) 573 – 1413 (phone)[email protected]/dhcd
