RMEL Electric Energy Issue 1 2013

spotlight on critical energy issues

electric energy crystal ball ISSUE 1 / 2013 www.RMEL.org

the future of coal Industry Lessons from Hurricane Sandy Xcel Energy’s Responsible Message Customer of the Future Community Outreach Ahead of Its Time FCC Pole Attachment Update

Fossil Air Quality Control Nuclear Geothermal Biomass Solar Wind Transmission & Substations

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contents

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38 34

Features 14 Coal is the Cornerstone of Electricity

By Frank Clemente, Professor of Social Science and Energy Policy, Penn State University

24 Six Lessons Utilities Learned in Hurricane Sandy’s Wake

46 The FCC’s Pole Attachment Order is Promoting Broadband at the Expense of Electric Utilities

By Thomas B. Magee, Partner, Keller and Heckman LLP

By Jennifer Neville, Public Affairs Specialist, Western Area Power Administration

30 Xcel Energy’s Successful Tagline Wasn’t Just Luck

By Catherine Chew, Manager, Operations, Advertising & Brand Strategy, Xcel Energy

34 Customer of the Future

By Maggie Duque, Associate Director, Navigant Consulting, Inc.

38 Managing Community Issues Before They Manage You

By Gary Severson, Senior Associate, Corporate and Government Collaboration and Education Programs, JKA Group

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Departments 06 President’s Message 08 Board of Directors and Foundation Board of Directors 10 2013 Spring Management, Engineering and Operations Conference 52 RMEL Membership Listings 56 2013 Calendar of Events 58 Index to Advertisers

Power Generation Oil & Gas

Designing anD BuilDing success

Chemicals/Process

Lauren Engineers & Constructors is a Top 400 EPC Contractor serving the Heavy Industrial sector. We maintain offices across North America staffed with dedicated engineering and construction professionals who have the experience to effectively manage complex projects. From conceptual design studies to plant modifications to complete greenfield power stations, Lauren has the technical expertise, experience and resources to help our customers succeed.

laurenec.com ®

Abilene, TX • Houston, TX • Irving, TX • Knoxville, TN • Atlanta, GA • Bynum, MT • Calgary, AB • Mumbai, India

rmel information

President’s Message RMEL Members and Participants; As we roll in to 2013, it is clear from our vital issues forum that we will have just as many key issues to discuss and deliberate as we had in 2012. We are in the midst of unprecedented challenges. Who would have anticipated the amount of shale gas discovery that would drive gas prices low enough to displace coal in the dispatch order? Coal is further being displaced with expected environmental regulation. We have had no clear Energy Policy which has hobbled strategic planning and decision making. We seem to be faced year after year with increased government regulation which adds upward pressure on rates.

RMEL is here to help. RMEL provides a great networking forum where utility leaders can discuss and deliberate these key issues and map out strategies to help shape policies that benefit our industry. RMEL also offers cost effective education events on member driven topics to provide our members the resources they need to become better informed on the topics that affect them the most.

The RMEL association has grown to nearly 300 member companies. A few of our 2012 highlights are as follows:

www.RMEL.org Published Spring 2013 Published For: RMEL 6855 S. Havana St, Ste 430, Centennial, CO 80112 T: (303) 865-5544 F: (303) 865-5548 www.RMEL.org

Kathryn Hail editor (303) 865-5544 kathrynhail@rmel.org Electric Energy is the official magazine of RMEL. Published three times a year, the publication discusses critical issues in the electric energy industry. Subscribe to Electric Energy by contacting RMEL. Editorial content and feedback can also be directed to RMEL. Advertising in the magazine supports RMEL education programs and activities. For advertising opportunities, please contact Deborah Juris from HungryEye Media, LLC at (303) 883-4159.

P u b l i s h e d b y:

www.hungryeyemedia.com 800.852.0857 Brendan Harrington president Deborah Juris publisher (303) 883-4159 deborah@hungryeyemedia.com Lindsay Burke creative director / ad production

• Record breaking 2,047 participants in 25 education and networking events •G rowing Spring Management, Engineering, and Operations Conference and Fall Executive Leadership Convention

Alithea Doyle designer Susan Humphrey project manager Dave Baker copy editor

•R MEL Foundation raised record donations and promoted our industry to students by awarding 21 scholarships Our many thanks to you, our members, for your continued support of RMEL. Please continue to be involved in RMEL, shaping the topics of discussion that matter most to you. Stay involved in your association and I look forward to seeing you at an RMEL program in 2013.

Sincerely,

Andy Ramirez 2012-2013 RMEL President VP, Generation El Paso Electric Company

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elec tric energy | spring 2013

Register for the Spring Management, Engineering and Operations Conference May 19-21, 2013 Vail, COlorado

A Leader in Engineering Energy Solutions

2013 RMEL

Engineering, Surveying, and Consulting Services

Diamond Champion

When utility companies seek outside expertise to deliver the power they generate quickly and reliably, they look to us for guidance because of our wide array of service offerings, knowledgeable leadership, and extensive experience. Ulteig assists energy clients with managing and upgrading their current infrastructure as well as planning for the future. We provide consistent direction for smooth and accurate project completion.

For more information about the many services Ulteig has to offer visit our website at www.ulteig.com.

www.ulteig.com • 877-858-3449

Ulteig is proud to support future generations of engineers by providing scholarships, through the RMEL Foundation, to those pursuing careers in the electric energy industry. This is a further demonstration of our commitment to be peopledriven and our belief in the power of our commitment, compassion, and enthusiasm for one another.

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rmel information

RMEL Board of Directors

Foundation Board of Directors

Officers

Officers

President Andy Ramirez El Paso Electric Company VP, Power Generation

Vice President, Education Tony Montoya Western Area Power Administration, COO

President Elect Dan Schmidt Black & Veatch Corp.

Sr. VP, Power Generation Services

Vice President, Finance Stuart Wevik Black Hills Corporation VP, Utility Operations

Past President Kelly Harrison Westar Energy VP, Transmission Vice President, Membership Scott Fry Mycoff, Fry & Prouse LLC Managing Director

Vice President, Vital Issues Richard Peña CPS Energy Sr. VP, Energy Development Vice President, Member Services Mike McInnes Tri-State Generation and Transmission Assn.

Sr. VP, Production

Directors Doug Bennion PacifiCorp VP, Engineering Services & Capital Investment Tim Brossart Xcel Energy VP, Construction Operations & Maintenance Mike DeConcini UNS Energy Corporation Sr. VP, COO Jon Hansen Omaha Public Power District VP, Energy Production & Marketing Mike Hummel SRP Associate General Manager Tom Kent Nebraska Public Power District VP & COO

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President Cathy McCartney LEADERSHIP A Business Imperative, Inc. Owner/Consultant Vice President, Finance Rebecca Shiflea SAIC Senior Project Manager

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 Rick Putnicki RMEL Executive Director Secretary

elec tric energy | spring 2013

Chair, Fundraising James Helvig AMEC Director, Power Delivery

Board of Directors Steve Bridges Zachry Holdings, Inc. VP & General Manager, Regional Projects Group Michael A. Jones SRP Director

Tammy McLeod Arizona Public Service VP & Chief Customer Officer

Vice President Walter D. Jones Intermountain Rural Electric Assn.

Assistant General Manager, Operations & Engineering

H. Kent Cheese TestAmerica Laboratories, Inc. Director, National Accounts Mike McInnes Tri-State Generation and Transmission Assn.

Sr. VP, Production

Dennis Finn Wärtsilä North America, Inc. General Sales Manager, Mtn Region Staff Liaison Natalie Andersen RMEL Manager, Member Services Staff Liaison Rick Putnicki RMEL Executive Director

2013 Spring conference

Maximize Your Training Budget at RMEL’s Spring Conference Join 300 members of RMEL’s trusted community to learn, network and discover solutions at RMEL’s Spring Management, Engineering and Operations Conference, May 19-21, 2013 in Vail, CO.

If you are managing people or projects, engineering, planning or operating systems in the electric utility industry, this conference is for you. The Spring Management, Engineering and Operations Conference has been a tradition since RMEL’s early beginnings.

Known for providing outstanding continuing education and networking opportunities, this conference is a must attend event for engineering, operations and management personnel in the electric energy industry. With 30 presentations, this conference covers issues in generation, transmission, distribution, safety, customer service, human resources and other management topics. The timely topics and breakout structure of the conference allows attendees to customize their education experience to focus on presentations and resources that address their needs. Ample time is also provided to network with industry peers and visit with exhibitors.

The event features keynote presentations, educational breakout sessions in three tracks: generation; transmission and distribution; and management.

The slate of generation track presentations will guide attendees through topics like EPA regulations, impacts of the Colorado Clean Air Clean Jobs Act, a sustainable ROI approach to new generation decision making, scenario planning, energy storage, RTO renewable generation dispatch, cycle provisions for coal fired boilers and life cycle asset management of air pollution control equipment.

In the T&D Track, look forward to details on PV – demand side management and energy efficiency, the Midwest Transmission Project, outage management, an evaluation

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of the transmission system to eliminate potential cascading outages, measuring the value of reliability improvements, Progress Energy’s UG cable testing program, a business case for system modernizations and AMI and a roadmap for managing power transformer assets.

The third track of presentations, focused on management, covers the gamut of high-level challenges faced by managers throughout the utility industry, including communication, power marketing administrations, workforce, water and energy in Arizona, leadership, managing the cost of regulatory compliance, Hurricane Sandy and involving employees and keeping safety fresh.

This event offers something for every person in the utility industry, whether you need to make the right contacts or find the right answers. Utilities of all types of ownership participate including IOU, G&T, municipal, cooperative and others. Vendors of all types are valued participants in

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2013 Spring conference

the conference and community dialogue to improve operations and enhance customer service.

Networking Golf Outing Enjoy a golf outing at Red Sky Golf Club on May 19th. The format will be a four-person scramble and proceeds will benefit the RMEL Foundation scholarship program.

Guests and Spouses are Welcome Bring your guest to the 2013 Spring Management, Engineering and Operations Conference. If your guest registers for the full conference, they are registered for all meals and the Champions Receptions on Sunday and Monday. If they register for an individual day, they will be registered for meals and the Champions Reception for that day only. Guest registration prices simply cover the cost of meals.

All attendees will receive a continuing education certificate. The certificate provides professional development hours based on participation. For more information and to register for the Spring Management, Engineering and Operations Conference, go to www.RMEL.org or call (303) 865-5544.

VAIL, CO

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May 19-21, 2013

elec tric energy | spring 2013

60 Years of Excellent Utility Education

Utility Executive Course

60th Annual Utility Executive Course June 10 - 27, 2013 “The Utility Executive Course is an exceptional learning opportunity and an important tool in

A Rich Network of Utility Leaders • Proven Track Record

• World-Class Faculty

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208.885.6265 208.885.5580 uiuec@uidaho.edu www.uiuec.org

3Rd ANNUAL

JUNe 25-27, 2013

The importance of coal in the global energy mix is the highest since 1971, the first year for which IEA statistics exist. —International Energy Agency, 2011

is the

Coal Cornerstone of Electricity

By Frank Clemente, Professor of Social Science and Energy Policy, Penn State University

E

UN Human Development Index (0-1)

lectricity is the lifeblood of modern society and is essential for raising the standard of living, improving economic wellbeing and ensuring a cleaner environment (Figure 1). In societies with widespread access to electricity, people eat healthier, drink cleaner water, are more likely to survive childhood, live longer and are better educated. As the International Energy Agency (IEA) recently concluded, “Lack of access to modern energy services is a serious hindrance to economic and social development and must be overcome if the UN Millennium Development Goals are to be achieved.” Women and girls are disproportionately affected by energy deprivation—more than 70 percent of people living in poverty are female. {see Figure 1} Coal’s foundational role in enabling societal progress is well documented and reaches from the European Industrial Revolution in the 1800s to the rise of the United States during the past century to the rapid socioeconomic development of contemporary China. Indeed, as the IEA has stated: “Coal has underpinned China’s massive and unprecedented growth in output, fueling an economic miracle that has helped to improve the standard of living.” China’s success with coal has not gone unnoticed as other developing countries aspire to a better life for their citizens. In India, for example, 300 million people have no electricity. In fact, electricity poverty is a global blight; some 4 billion people, at least 55 percent of the world’s population, use fewer

States—will depend on coal for at least 40 percent of their electricity. Over the next decade alone, coal will produce more electric power than gas, nuclear, oil, wind and solar combined. Even BP’s 2013 Energy Outlook 2030 affirmed that coal will still supply a leading 39 percent of the world’s power in 2030. By then, and perhaps well before, coal will supplant oil as the overall leading source of total world energy.

Coal is the only fuel with the low cost and large scale to meet the energy needs of a growing world with rising expectations. More than 3.6 billion people are younger than 30. Yet, even now, more than 2 billion people do not have adequate access to electricity, and another 1.3 billion have none at all.

The world is turning to coal because global reserves approach 1 trillion tons, more than double the potential energy of either natural gas or oil. By 2030, coal’s contribution to electric power will

than 2,500 kilowatt hours (kWh) per year, only a third as much as a typical resident of the European Union. Coal is the cornerstone of global electricity, producing more than 8,700 terawatt hours (TWh)—about 40 percent of the world’s power. Even more important, by 2035, electricity from coal will basically double to a staggering 17,000 TWh. Coal is the world’s fastest-growing fuel for measurable reasons. Developed societies depend on coal to maintain and extend a modern quality of life.

Emerging societies are using coal to reduce energy deprivation and continue their march toward modernity. By 2035, more than 4 billion people—13 times the population of the United

Figure 1: More People Living Better, Living Longer Sources: World Bank; United Nations

1.0 Germany

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Greece

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UK

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0.6 Cambodia

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Every 10-Fold Increase in Per Capita Electricity Use Drives a 10-Year Increase in Life Expectancy

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exceed the equivalent of 2,400 nuclear power plants, or 175 Three Gorges Dams. As Maria van der Hoeven, Executive Director of the IEA, stated in January: “Coal is here to stay.”

The rationale for Coal is Clear Abundance and Accessibility: Coal is the world’s most prevalent and widely distributed fossil fuel, accounting for 64 percent of global economically recoverable fossil resources, compared to 19 percent for oil and 17 percent for natural gas. The amount of proven recoverable coal reserves is enormous and approaches 1 trillion metric tons. Coal is distributed across every continent and every region of the world. The western hemisphere itself has more than 300 billion tons of coal, Russia has 175 billion, China 130 billion, Australia 85 billion, Europe 75 billion and India 65 billion.

tribution, coupled with its relatively low and stable price pattern, set the stage for a reliable supply of energy. In many countries, coal-based generation is one of the first sources to be dispatched throughout the electric grid. Coal’s reliable characteristics make it a very attractive baseload fuel. Consistently, the amount of electricity generated from coal significantly exceeds coal’s relative capacity compared to other fuels. In 2010, for instance, coal accounted for only 32 percent of total generation capacity but actually produced 41 percent of the world’s electricity.

is especially informative and indicates that the goal is to develop an additional 1.2 billion metric tons of coal over the next decade and to use that coal in numerous conversion projects. Further, coal-to-liquids will gain increasing importance with the approach of a global peak of conventional oil production.

Clean Coal Works

% Change Since 1970

“Technologies…have helped to dramatically reduce potentially harmful emissions, even as coal use for electricity generation has risen substantially.” —U.S. Department of Energy (DOE), 2012 Clean coal technologies have steadily Affordability: China, for example, overcome environmental challenges. is projected to build nearly 1,000 GW The U.S. power industry has invested of new coal capacity over the next 25 well over $100 billion in the decades years. Based on IEA analyses of levelsince the Clean Air Act of 1970 and ized costs of electricity, supercritical cut emissions with remarkable success. coal plants are one of the most affordHuge strides have been made to signifiable sources of power generation in cantly reduce the six common regulated China, at $33 per MWh, compared to emissions (criteria pollutants)—particu$50 for hydro, $53 for nuclear and $71 late matter, sulfur dioxide (SOx), carbon Secure Energy: Coal’s wide global for wind. monoxide, lead, ozone and nitrogen distribution provides energy security oxides (NOx)—while at the same time across broad political arenas. As the Versatility: Various countries around increasing coal-based generation and IEA noted in 2007, “It is widely acthe world have been initiating an meeting the ever increasing energy knowledged that the oil and natural gas increasing number of coal projects needs of an expanding population in a markets provide risks that undermine converting coal to liquid fuel, subgrowing economy (Figure 2). Overall, security of supply.” Coal is the epitome stitute natural gas or chemicals. The America’s coal-based generating fleet is of energy security. scale of China’s coal conversion plans 77 percent cleaner than it was in 1970.

Reliability: Coal’s abundance and disAs the U.S. National Energy Technology Laboratory (2011) reFigure 2: U.S. Coal Power Increases; Emissions Decline Sources: Developed from EIA, USDA, NETL ports, “Even with coal demand steadily Since the Clean Air Act, U.S. coal power nearly triples...emissions fall 88% increasing, emissions of criteria pollutants are at their lowest levels ever.”

150% +146% n o Parallel progress has ati ener G r e been made in other key 100% ow +104% ed P s a B nations, like Australia, lCoa capita r e p P D Japan and Germany.

G 50% {see Figure 2}

0%

Emission s/kWh fr om coal plants*

-50%

-89%

-100% 1970 *NOx, SOx, PM

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Advanced supercritical and ultra-supercritical coal generation uses less fuel and produces more power with reduced emissions.

Improving efficiency levels increases the

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barrels of “stranded oil,” which could be produced assuming an $85/barrel oil price. In addition, there is emerging recognition that the Residual Oil Zone (ROZ) resources are enormous, and could yield yet another 33 billion barrels for a total of at least 100 billion barrels of oil that would otherwise remain unavailable.

in 1892 by Thomas Edison on Pearl Street in Manhattan—was fueled by coal. Since then, coal’s steady contributions have made the U.S. power system one of the most affordable and reliable in the world. {see Figure 3} The consistency of coal’s contribution reveals its importance. And the scale of production should be placed in context. In 2008, for example, coal in America produced more electricity than Germany, England, Italy and France consumed combined. Further, the coal industry itself, coupled with ancillary operations, is an important

Coal Is Irreplaceable in American Society Coal was, is and will remain the basis of our electric power supply (Figure 3). The first central power plant—built

Figure 3: The Continuing Power of Coal in the United States Source: U.S. Energy Information Administration

2,500

Billion kWh through 2035 Billion Kilowatt Hours

amount of energy that can be extracted from a single unit of coal. Such increases in the efficiency of electricity generation are essential in meeting climate change goals. A 1 percent improvement in the efficiency of a conventional pulverized coal combustion plant results in a 2–3 percent reduction in CO2 emissions. Such advanced coal plants emit almost 40 percent less CO2 than many existing plants. The average global efficiency of coal-fired plants is less than 30 percent, compared to more than 47 percent for the most advanced plants.

The gaze of the scientific and engineering community has shifted to controlling and using CO2 in processes such as Enhanced Oil Recovery (EOR)—a technology even the National Resource Defense Council has called a “win-win-win.” Now the creative gaze of the scientific and engineering communities turns to carbon capture, utilization and storage (CCUS). Private sector companies have already demonstrated that underground storage of CO2 is more than a waste-disposal business as shown by the success of EOR technology. The emergence of CO2 as a commodity enables society to fully unlock the value of advanced, low-emission coal technologies. The use of CO2 for EOR is the CCUS approach to providing the greatest potential for economic and environmental payoffs over the next several decades. U.S. Department of Energy–sponsored research found that “nextgeneration” CCUS and EOR technologies would enable the economic recovery of 67 billion

Coal

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Hyrdro 0 1990

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Energy & Resource Consulting Group, LLC EnginEEring, Financial & ManagEMEnt consultants

PersPective

i n n o vat i o n

Economic & Financial Studies Rates & Regulatory Matters Financing & Litigation Support Valuation & Appraisals Mergers & Acquisitions

r e s u lt s

Fuel Supply Planning Franchise Matters Renewable Energy Transmission Access Matters Resource Planning

8055 East Tufts Avenue, Suite 1250 : : Denver, Colorado 80237

303.843.0600 www.ergconsulting.com

Figure 4: Coal Means Lower Electric Rates

• $1,047 billion ($1.1 trillion in economic output • $362 billion in household income • 6,800,000 jobs These benefits are widely distributed and accrue to states across the nation—e.g., jobs in Western states that total 1.2 million, and in the Southeast that total 1.6 million. Finally, coalbased electricity is affordable (Figure 4).

Gas prices are volatile, and wind and solar are expensive. Nuclear has been over-regulated out of the market, and our nuclear power industry is a shadow of its former self. {see Figure 4}

EPA Push for Gas Dependence Imperils Electric Reliability Gordon van Welie, CEO of ISO-New England, has called reliance on gas the company’s single most important “strategic risk.” Indeed, reports The New York Times, Feb. 16, 2013: “Electricity prices in New England have been four to eight times higher than normal in the past few weeks, as the region’s extreme reliance on natural gas for power supplies has collided with a surge in demand for heating.”

Over the past 15 years, natural gas accounted for more than 80 percent of new electric generation capacity, adding a dangerous dynamic to U.S. gas markets. Specifically, gas power plants have entered into competition with other consumers for fuel, thereby not only potentially increasing the price of gas but also

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elec tric energy | spring 2013

Source: U.S. Energy Information Administration

18

Electricity Price (cents per kWh)

component of America’s socioeconomic infrastructure. In terms of direct employment alone, almost 350,000 permanent jobs are attributed to the mining, transport or electric-power industry’s use of coal. But the impact of coal reaches far beyond direct jobs alone. Rose and Wei (2006) found that by 2015 the overall benefits of coal-based electricity in the contiguous United States would reach:

16 MA

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the cost of electricity. Families and manufacturing firms faced this reality in 2008, when the price of gas to heat homes increased 44 percent in just five years and the cost of gas to industry increased 64 percent. Energy welfare agencies such as LIHEAP were overwhelmed, and a variety of industrial businesses reduced operations, closed or left the country.

Unfortunately, because of the unrelenting assault on coal from the Environmental Protection Agency (EPA), this dash to gas for power generation is continuing. Over the next three years, gas will comprise at least 32 gigawatts of net new capacity, compared to a marked absolute decline for coal, only 2 gigawatts from nuclear uprates and none for hydro.

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Yet, even this large addition of planned gas plants pales when compared to the looming effect of the EPA’s new punitive regulations on coal power plants. The EPA has essentially crafted rules designed to make gas the “fuel of choice.” Estimates are that EPA regulations not only will dramatically raise electric rates and cost millions of jobs but will also force the closure of up to 100 gigawatts of coal plants—essentially one-third of the fleet that comprises 42 percent of our electricity. The adverse impact of these new EPA regulations on an electric power system that has brought us reliable and affordable electricity for decades will be profound.

This specter of a surge in demand for natural gas is made all the more concerning when one considers the U.S. Energy Information Administration (EIA) projection of incremental gas production over the next decade.

Shale gas output is projected to increase significantly, but this growth will largely be offset by declines in conventional wells and other traditional

sources of gas supply. In fact, all of the projected incremental gas production predicted by the EIA would be needed to replace closing coal plants, leaving no new supply for the vast infrastructure we are building, ranging from new industrial facilities to gas vehicles.

More than 65 million homes in the United States depend on gas. Construction of wind turbines and solar panels proceeds apace. And each of these intermittent sources requires natural gas backup. {see Figure 5}

30 percent of the world’s coal reserves are in the United States. Our nation stands at the threshold of a unique opportunity to deploy clean coal technologies to more fully use domestic coal resources in order to accomplish a full range of socioeconomic and environmental goals. Our leadership in deploying these technologies would benefit the global community as well. In a future world of 8.5 billion people in 2035, the EIA-projected 50 percent increase in energy consumption will require President Obama’s “all of the above” energy resources—oil, gas, renewables and Our Most Important nuclear—but coal will continue to be the Energy Resource: Coal cornerstone, providing more incremenMore than any other nation, America tal energy over the next 25 years than can control its own energy destiny. Coal any other single fuel. As MIT professor is the foundation of that control. Almost Ruben Juanes recently confirmed, “We should do many different things, but one Figure 5: Where Will We Get the Natural Gas? thing that’s not going away is coal.” Why would we bypass our most powerful energy 3,285 Bcf Thus, no new gas resource when the technology 2,700 Bcf would be available for: is there to use it productively, sustainably and cleanly?

Natural Gas 1. New manufacturing

Demand Just to Replace 75 GW of Coal by 2020

22

Incremental Gas Production by 2020

elec tric energy | spring 2013

2. Gas vehicles 3. Export 4. Wind backup 5. Home heating

Frank Clemente is a Professor of Social Science and Energy Policy, Penn State University. He can be reached at fac226@psu.edu.

Six Lessons utilities learned in hurricane

By Jennifer Neville

Public Affairs Specialist, Western Area Power Administration

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elec tric energy | spring 2013

Four months

after utilities from across the country responded to the extensive Northeast power outage in the wake of Hurricane Sandy, dozens of utility representatives gathered to discuss the lessons learned from the emergency response.

“The united industry restoration efforts in the aftermath of Super Storm Sandy were absolutely incredible. Several

RMEL member companies sent crews to the East Coast, even the utilities in Arizona,” said Richard J. Putnicki, Executive Director, RMEL. “There was no question about the need for a lessons-learned event for RMEL members,” Putnicki continued. “The event was basically planned in one month, and we had some amazing speakers from member companies, FEMA, DOE and FirstEnergy who volunteered their time and quickly compiled very enlightening presentations. I thank the RMEL members and all the participants who made this event a success—especially Western Area Power Administration’s Electric Power Training Center for providing the meeting space.”

At the event, hosted by RMEL, 60 representatives from more than 20 utilities packed the room at Western’s Electric Power Training Center (EPTC) in Golden, Colo., to dig deep into what worked well, hiccups they discovered along the way and how to be prepared for the next emergency response.

“Electricity is one of those elements that people count on to be there

sandy’s wake

»

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when they turn the switch, and during a disaster all the parties have to pull together to make it happen. It takes a coordinated effort to do it, do it safely and do it correctly,” said Steve Yexley, Western’s EPTC manager. “They are reviewing and sharing how we can do our jobs better. It was a great event to host so we all can learn how to return the power system to pre-event status, similar to some of the other things we teach here.”

The top six lessons learned covered at the event focused on what utilities can do to prepare for next time:

1 Keep lists, lists and more lists

You should have lists of all your utility’s equipment and tools, as well as a current count of your craft and dispatch staff levels on hand. When a request for assistance comes in, the lists allow you to quickly assess your current work needs and where you can spare resources to support recovery

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elec tric energy | spring 2013

efforts. FEMA Operations Officer Ricky Stephenson also recommends having lists for responders of the tools and personal items they should take with them, including employee IDs, petty cash, and even sleeping bags and snacks.

2 set up mutual aid agreements in advance

These agreements can take weeks to get in place—and in a disaster you don’t have weeks. Knowing who you can call for help when weather or other disasters arise streamlines the process for getting support. Most of the participants indicated their utilities have mutual aid agreements with neighboring utilities, but having agreements with utilities up to 1,000 miles away can be a good idea as well. “Your neighbors many times are recovering from the same storm you’re dealing with, so they are holding their resources,” said Tony Hurley, Director, Operations

Services, Toledo Edison, a FirstEnergy Company. “Having partners you can reach out to farther away helps after big storms.”

3 create a selection process

Deciding which employees should go and which should stay requires balancing many factors such as what staff do you need to keep on hand, what are the specialties needed for recovery (dispatch, electrician, lineman), experience and qualifications or certifications of responders, and if your staff will work alone or be integrated in the hosting utilities crews. After analyzing the response needed, utilities should already have a process in place for selecting who will be sent. Note that your response list may require management, administrative support and media support skills as well.

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4 travel logistics there and back

Moving utility industry equipment and staff from one side of the country to another is a large undertaking; several responders partnered with local military bases to get equipment transported, while others drove cross-country and on toll roads to get to the Northeast after Hurricane Sandy. Utilities should calculate distance and time to determine if they can respond quickly enough to the situation and figure out if they need logistical help. One participant noted how long it took

to get large equipment back after the recovery efforts in the Northeast.

“We knew we would not have our crew and equipment for the two weeks we sent them out there,” the participant said. “What we didn’t count on was the twoweek delay in getting our equipment back after our crews returned from the recovery effort. We will have to plan better to determine what we can do without for extended times like that.”

5 proper estimated time or work

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Responding utilities and the host utility need to provide proper estimates for how long the work will take and update that information frequently. In today’s energy-driven world, the media and the public want to know when to expect the power again. “Even when the power is restored several days earlier than estimated, businesses have planned for the longer outage and may be frustrated because they lost productivity for those days they could be up and running again,” explained Anthony Lucas, Program Manager, Emergency Support Function #12, Department of Energy.

6 secure a place at the fema table

When disaster strikes, FEMA’s incident command system is in charge. They balance all

booked, and the restaurants and gas stations are closed down, how are you prepared to stage, command and deploy recovery efforts for your system?

Participants left with several takeaways for both responding to an incident and preparing their local plan to improve recovery efforts before the next disaster strikes.

Jennifer Neville is a Public Affairs Specialist at Western Area Power Administration.

She can be reached at neville@wapa.gov.

the different recovery efforts.

Utilities must have staff trained and familiar with the ICS so they can participate in the conversations and provide their expertise about the power recovery efforts. Information about incident system training is available on FEMA’s website.

HUGHES

when it’s your disaster

It’s just as much about preparing at home as it is about responding to another utility’s need.

Most of the participants attending the conference sent responders to help with recovery efforts after Hurricane Sandy, but a few participants provided the perspective for what happens when it’s your area that’s in ruins. Vince Featherly, Sr. Director, Distribution Design, Construction & Maintenance, SRP, said, “It sounds to me that between the two [hosting or responding to an incident], hosting after a disaster is the harder part.”

Participants learned how important it is to prepare before the disaster is on your doorstep and how and when to send out a call for assistance. They also learned how to analyze and be specific for what is needed and consider the logistics for staging incoming equipment and staff. When all the hotels within 50 miles are

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Xcel Energy’s Successful Tagline Wasn’t Just Luck

By Catherine Chew, Manager, operations, advertising & brand strategy, xcel energy

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to be. To do that, we needed research,” said Karen Cantey, Account Group Director at VJ. The agency had conducted a message hierarchy study just months before, which was used to shape the message. But additional research was necessary to get more information about customers’ view of Xcel Energy to ensure the tagline and positioning would resonate. VJ took on the task of conducting both quantitative and qualitative research, the latter of which employed a somewhat unique methodology. “With a focus on ethnography for our qualitative research, we asked a group of customers to keep diaries about their energy use, specifically their thoughts and feelings about energy or a lack of energy. For example, when they walked in the door at night and turned on cel Energy (NYSE: XEL) is a a light, how did they feel? What about walking into major U.S. electricity and natural gas company an air-conditioned home on a hot afternoon?” Cantey with regulated operations in eight Western and explained. “We took the information they shared with Midwestern states. Xcel Energy provides a comus and analyzed it to gain an understanding of how our prehensive portfolio of energy-related products and sercustomers saw us—what their relationship was with vices to 3.4 million electricity customers and 1.9 million our company and our product,” added Ingram. natural gas customers through its regulated operating Once the research had been anacompanies. Company headquarters lyzed, creative brainstorming began. are in Minneapolis.

While VJ led the efforts, the brainstorming included teams within Creating and Xcel Energy, as well. The agency, Launching the Tagline with feedback from the advertising “In 2008, we decided that we of a team and key executives, narrowed needed a tagline to highlight our the list to several taglines. Accordenvironmental leadership as well as ing to Cantey the agency went our commitment to being responsible back in the field to test the taglines on behalf of our customers,” explains with both residential and business Stacy Ingram, Director of Advertising customers of the utility. Baseline and Brand. “We needed a tagline that Xcel Energy brings more than energy to the homes and businesses we serve. We bring resources, programs and projects that help support dynamic local economies. questions were designed to answer would showcase that vision.” Months Because in today’s world, prosperity requires energy. questions like “What can customers later, the tagline was born and “ReVisit xcelenergy.com for more information. relate to?”; “Which of these taglines sponsible By Nature” is still a part of xcelenergy.com are believable?” ; and “Which Xcel Energy today. taglines position the company in the “The tagline still supports the desired way?” company’s vision of sustainability, The 2013 advertising campaign After the testing and analysis, among other things” Ingram said. incorporates the “Responsible by there were several conversations “Our CEO, Ben Fowke, is building Nature” tagline. about what direction to take. on our leadership position in the Other taglines tested included “Connect with Life,” “A industry by ensuring that we bring value to the cusBrighter Day,” and “Live Brilliantly.” “When ‘Respontomer in all that we do,” Ingram said. “That might be sible By Nature’ was selected as the tagline, we knew by expanding clean energy choices while keeping prices it could be controversial—even within the company,” competitive or giving customers a choice in how they Ingram explained. “There was a concern about overuse our energy.” reaching: ‘How can you be anything “by nature”? We Hitting on the right combination of words to use coal to create electricity.’” And in fact, it wasn’t the express that vision was not a matter of luck or chance. highest scoring option, according to Cantey. “But we The utility’s agency, Vladimir Jones (VJ), played an indiscovered that it improved participants’ perception tegral role in the development of the tagline. “We knew of the company more than the other taglines, so we that we needed first to discover where we stood in our moved forward with it.” customers’ minds and to determine where we wanted

X

FEEL THE ENERGY

DYNAMIC ECONOMY

© 2013 Xcel Energy Inc.

00392-D XL_JUR_TX_Dynamic_5x7_FNL.indd 1

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Mindful that the tagline might be controversial, the team prepared a crisis communications plan in the event they received pushback from stakeholders or received negative media attention. They then began educating employees, customers and other stakeholders to help them connect to the tagline. Several tactics were used to engage employees, including deploying Xcel Energy’s brand champions, a team of employee volunteers who are educated about key projects so they can in turn provide information to other employees, helping build understanding and acceptance of critical initiatives within the company.

For external stakeholders, the team launched an ad campaign featuring the tagline as well as a web site: ResponsibleByNature.com.

In the year following the launch of RBN tagline and accompanying campaign, we saw positive opinion of the company increase by 20 percent. In addition, year-over-year,

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more ad-aware customers in both markets found Xcel Energy to partner to conserve, communicate valuable information, meet today’s energy needs and encourage safety.

Responsible

by Nature Part of the tagline’s success lies in the fact that the promise of the tagline is fulfilled because Xcel Energy committed itself to supporting that tagline with action, not just words. “Responsible by nature means something on many different levels,” said Cantey. “When we say that Xcel Energy is responsible by nature, we are saying that responsibility can be seen in the company’s history, in the structure, in the culture, in the decisions employees make, the priorities that are set and the way Xcel Energy goes about its business.” Ingram agrees. “Responsibility is woven into our DNA. Our company is an environmental leader in the utility industry yet we honor our commitment to the communities we serve by providing safe, reliable energy at a competitive price.

Our commitment to our customers is not just rhetorical. It is institutional and operational. It drives decisions and priorities, from lowering carbon emissions and developing renewable energy resources to offering customers more choices in how they do business with us. We believe our commitment is good business, not just good material for positive publicity. This is about delivering on a brand promise,” said Ingram

Why a Tagline?

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elec tric energy | spring 2013

An extension of a brand, a tagline serves as a statement of motivation, focus and commitment. “In our case, it’s a promise we make to our employees, customers and the communities we serve. Responsible

By Nature increases the brand’s relevance, helping to differentiate it while creating value and meaning around the brand itself. We believe our tagline refines the company’s

positioning and research shows that it resonates with our stakeholders,” Ingram explained.

“A question we often are asked in relation to the tagline in particular and advertising in general is why we need to advertise at all since we are a monopoly and customers have no choice but to buy energy from us,” Ingram said. “And that’s true, but even a monopoly has to have a positive relationship with its customers and to do that, we must have a dialogue with them.

Advertising is one channel that helps us do just that. Advertising helps us create value, improve satisfaction and helps us have more favorable relationships with our stakeholders.”

Ingram added, “Through advertising and other marketing communications channels, we show our customers that while they may not have a choice in energy providers, they do have choices in how they use energy, how they pay their bills and how they interact with us.”

According to Cantey, research is at the core of all of the communications the utility has with its customers. “In order for Xcel Energy to provide good service to them, we have to know what they care about and how they want us to talk to them. If we know what our customers understand and what they want to know about, we can help them feel empowered and very much a partner in this relationship,” Cantey explained.

The Future of the Tagline The company has changed advertising campaigns several times since the launch of the tagline, but the tagline has remained the same. “It embodies our company’s promise to our customers. We still see ‘Responsible By Nature’ as a solid tagline because we didn’t hang our hat on just the environmental interpretation of the phrase,” said Ingram. “The other factors—providing safe, reliable energy at a competitive price, being easy to do business with and making sound, responsible decisions throughout the company—are still reflected in the tagline.”

Even so, the team says they’ll never say never. “This has been a very successful tagline for the company,” explains Cantey. “But consumers’ mindsets change very quickly and new issues arise every day. We have to be ready to respond to a change in direction when it’s best for the company.”

Catherine Chew is Manager, Operations, Advertising & Brand Strategy, Xcel Energy. She can be reached at Catherine.Chew@xcelenergy.com.

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33

The

Customer of the

Future

By Maggie Duque, Associate Director, Navigant Consulting Inc. Edited by Emily Koepsell, Consultant, Navigant Consulting, Inc.

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elec tric energy | spring 2013

FINANCIAL OBJECTIVES

FIGURE 1

STRATEGIC, FOCUSED

PROCESSES MEASUREMENTS, CONTROLS

OPERATIONAL EXCELLENCE The “customer of the present” is influenced by smart grid technologies; new sources of available energy such as solar and shale gas; changes in electricity prices; and perhaps most substantially, today’s way of life. With such a fast-paced world, in many ways, the “customer of the future” is already here. The most significant difference between today’s customer and that of the future is how the influx of new advancements will broaden the impact of a person’s energy decisions. As a result of this changing environment, addressing the needs of the customer of the future must begin now.

As customers, our expectations are shaped by our rapidly changing world—how we communicate with one another, how and where we work, how we spend our leisure time and how we allocate our money. As costs of alternative energy sources continue to decline and utilities, particularly in the Northeast, are being deregulated, customers face more options.

We are constantly bombarded by new information, and with so many choices available and perceiving time and money as scarce, we become more critical in our decision-making.

Value, convenience, reliability, environmental consciousness and control are primary customer concerns. We want to make sure what we are getting is worth the price. We want our needs met in a simple and user-friendly manner. We want to minimize or eliminate the uncertainty and wasted time that are associated with an unexpected event. We want to protect our environment. And we want to make decisions that work for us as individuals.

TECHNOLOGY ENABLERS, AUTOMATION

PEOPLE SKILLS, ACCOUNTABLILITY

However, not all customers are the same. Retirees on fixed incomes will value price over reliability—providing these customers with smart meters and home display networks will help them manage their bills and ultimately their energy consumption. Young professionals may be more interested in convenience and environmentally conscious energy choices—providing them with the ability to select electricity from “cleaner” fuels will help them support their green outlook. Suburban families may be more concerned with convenience and energy savings—providing them with home area networks could help them regulate their appliances and air conditioning to maximize energy efficiency. Therefore, distinguishing customers by their wants and priorities is paramount to better serving them in the future, providing appropriate programs and choices, and enhancing loyalty.

With the variety of customer segments and the advent of new technologies that bring more options, understanding who the customers are—and building trust and loyalty with them—becomes increasingly essential. A provider’s ability to adapt

in this fluctuating environment will be a significant competitive advantage.

In order to maintain that competitive status, the provider must enhance 1) customer segmentation and 2) operational excellence. To design customized programs for each customer segment, providers must understand what different customer groups want and need.

Operational excellence, meanwhile, will allow providers to remove inefficiencies and non-value-added costs while improving program performance.

This operational excellence and providing the appropriate programs and services to specific customers requires understanding, insight and process discipline. It also necessitates tracking the relevant metrics and understanding root causes of trends at an actionable level so as to be able to influence them.

New technology and data management systems permit an electric provider to automate processes and accurately track data and outcomes in an efficient manner. Best practices to develop programs borrow from other industries where new initiatives are tested—it is almost like a laboratory in which scientists study what activities move which needles (objectives and outcomes) and w w w. r mel .o rg

35

large population of transient college students, often has to deal with their unpaid final bills. This means that the remaining customer base picks up the additional cost. Because collection processes are costly and time-consuming, the municipal management team plans to implement a pre-pay program that will eliminate deposit requirements for cash-strapped students and limit usage when not paid. This endeavor will enable the city to avoid write-offs and accounts receivables.

The program will also provide value to the rest of the customer base by maintaining low rates and eliminating long lines at the front offices the first weeks of school as new students open accounts and pay deposits.

In the summer of 2011 and 2012, Sioux Valley Energy instituted a critical peak-pricing pilot for some of its customer base. There were several groups within the pilot, including one group of customers who opted in to

of these customers, it could also affect the behavior and perception of other groups. To engage these low-income customers and serve as a bridge upon which to build a relationship of trust, the management team created partnerships with non-profit agencies in the community, that already had affiliations with these customers. After determining that face-to-face communications were optimal, it further tailored the program communications, and as a result, about 10 percent of those targeted participated in the TOU program.

Although the energy consumption did not shift significantly during peak times and there was no reduction in customer expenses, customer satisfaction ratings increased. Thus, it appears that although customers may still choose to use electricity when it is more expensive, by being more informed and empowered, they are better able to accept the outcome of higher prices.

The City of Tallahassee, with a

what critical requirements make the system work. However, understanding the customers’ needs is only part of the equation; anticipating new expectations and being able to execute new programs and adapt to new technologies requires process flexibility and a continuous improvement approach. {see figure 1} Three examples of electric providers that have been successful in engaging a segment of their customers and creating value for both the customer and the provider are Entergy New Orleans, the City of Tallahassee and Sioux Valley Energy. Entergy is participating in a consumer behavior study to determine if various devices and pricing for Time of Use (TOU) programs can drive energy consumption to off-peak hours.

Entergy management focused the study on low-income customers, a sizable segment of its customer base, with the premise that if it could shift the energy consumption and customer satisfaction FIGURE 2

OVERVIEW OF APPROACH

CENTRAL QUESTIONS

1

2

3

STRATEGY DEVELOPMENT

ASSESSMENT

“Where/Who Do We Want To Be?”

“Where Are We Now?”

4 PLANNING/ ANALYSIS

“Where Can We Go?”

5 EXECUTION/ ACTION PLAN

“How Do We Get There?”

CONTINUOUS IMPROVEMENT

“How Do We Stay There, and Further Improve?”

Each of the above phases must address the following organizational elements in some form • Policy Deployment, Leadership Communications, values, culture, performance management, targets, key output indicators tracked • Customers expectations Wants, needs, convenience, satisfaction, value, knowledge

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elec tric energy | spring 2013

• employees Skills, engagement, productive, alignment, motivated • Processes/policy Capability, standardization, gaps, leading indicators, risks, informal processes, effectiveness • Technology Automation, interface, maximizes efficiency/effectiveness, controls risks, data accuracy

• Value/cost Effectiveness Efficiency, reliability, effectiveness — what am I getting for the price?

• Organizational Structure Alignment to goals, strategy, skills, accountability

live agent text

social media Walk-in office

self service field work

IVB

web

chat

utility bill

FIGURE 3

the program and another with customers automatically enrolled and given the choice to opt out. A day ahead of a critical peak event to notify the customers of the change in electricity price, the utility sent out messages using a variety of communication modes. In addition to the pricing pilot, the utility has started the Empower Program so that customers can monitor their hourly usage on a day-later basis. Sioux Valley Energy reports that its customers have been very positive about the initiatives because they are now in more control of their electricity bills. It also says some customers have lowered their demand to help the Cooperative, and therefore all the other members.

This increased interaction with the customers and ability for customers to more closely manage their electricity usage has achieved significant demand reduction in the pilot program.

While understanding customers’ needs and striving for operational excellence can provide significant enhancements, it is not always enough.

Electric providers also need to clearly and effectively communicate to customers what they are doing and how they are adding value, as customers are frequently too busy to notice and are constantly processing different information from a variety of sources.

Customers establish perceptions of value and quality of service based on experiences such as interactions with field personnel during outages, impressions formed when calling the provider and comments posted by friends on social media. {see figure 2} Providers must appropriately manage these complex communications and monitor the trends so that they may take proactive actions.

The customer of the future will be less patient than today’s customer or the customer of 20 years ago. There are more choices and more demands on our leisure time and our financial resources. Every minute and every penny seems to be committed. Providers that focus on operational excellence and understand their opportunities

and competitive advantages will be ahead of the game in adapting to new technology and providing costeffective programs. They will know how their operations, policies and processes drive their key metrics, such as cost per kWh, reliability indexes and customer satisfaction. They will also know how each activity contributes to the overall outcome. Becoming intimate with their customers’ needs and wants and learning how to anticipate their changing preferences will be a competitive advantage.

While cooperatives and municipalities have closer relationships with their customers, larger IOUs are more organized and efficient. However, each type can build on its strengths to meet the needs of the customer of the future. {see figure 3} Maggie Duque is the Associate Director, in the Energy Practice focusing on process improvement at Navigant Consulting, Inc. She can be reached at maggie.duque@navigant.com. w w w. r mel .o rg

37

Managing

Community Issues

{ Before They Manage You }

By Gary Severson, Senior Associate, Corporate and Government Collaboration and Education Programs, JKA Group

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elec tric energy | spring 2013

The JKA Group is comprised of three companies focused on creating sustainable futures for communities, corporations, and governments. JKA has created a unique pre-crisis issue management approach used by many companies and agencies to effectively understand how communities function and how to align project activities to benefit the community and thereby benefit the company.

For more information about JKA Group services go to www.jkagroup.com

AL IC CH

NO

AL

SC

LO G

FI

AL

DECISION SPACE YS IC

AL

IC

PH

LIT

All project managers and corporate and regulatory agency executives are well aware of the decision space associated with developing regulated projects and the parameters that affect the options for decisions. The project decision space is constrained by at least six dynamic parameters consisting of legal, fiscal, technological, physical, political and social/cultural.

The parameters of the decision space are in a state of dynamic flux with one another. As one parameter expands or contracts, the other parameters are directly affected. For example, if citizen opposition to a proposed project intensifies significantly constricting the social and cultural parameter, the political parameter begins to contract as the support of elected officials evaporates in the hot winds of controversy. As a result, the

LEGAL

PO

The Decision Space

DEFINING THE DECISION SPACE

TE

T

hose who are responsible for siting and permitting site specific or linear facilities are well aware that in today’s environment of regulatory requirements, polarized politics, and litigation, citizen opposition to proposed projects can be daunting. Determined citizens have successful track records of delaying projects, driving up project costs, and blocking projects that are technically sound and necessary. To relegate the causes of citizen opposition to a few selfish people who do not want the project in their backyards (NIMBY), is to miss the crux of grassroots citizen activism.

SOCIAL/CULTURAL

Legal and Fiscal parameters are negatively impacted. Eventually, through regulation, legislation or litigation the technological and physical parameters may collapse reducing the decision space to costly untenable options.

Community Issues and Project Costs There is a direct correlation between the intensity of community issues and the financial, human, and reputation costs associated with proposed natural gas and electricity projects. Community issues do not begin their lives as uncontrollable events that will stop projects. Instead, community issues begin as legitimate questions that citizens have regarding proposed projects. At

this stage of an emerging issue, opinions are rarely formed, rather, people are seeking answers to questions like: » What will this project do to my property values? » Will the project increase traffic? » Will the project diminish air and water quality? » How many people will be required to build and operate the project and how many of them will be hired locally? » Will the project enhance the development of local businesses? » Will the company proposing the project develop community based training programs to prepare our citizens for employment and advancement?

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39

Y T I N U COMM ISSUES

As community issues increase in intensity from emerging, through existing to disruptive, the range of options for issue resolution diminishes.

Unfortunately, the least costly options are the first casualties, and the ones that remain to the last are the ones so expensive that they may be impossible to implement, as shown above.

Managing Community Issues

If the questions are not answered in a timely fashion with credible information through believable sources, community issues will likely move into the existing issue stage. This is the stage where opinions are being formed. Community dialogue changes from seeking information to positions being stated such as: » This project will ruin our property values. » The traffic and noise from this project will be unbearable. » Children and seniors with asthma will suffer, and the incidence of cancer will increase. » They will not be contracting or hiring locally. » Local businesses will not benefit from this project and may actually lose revenue.

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elec tric energy | spring 2013

» The skills necessary for employment are beyond most of our citizens’ abilities. » The company just wants to exploit our community for its profits.

If the community issues remain unresolved, the community opposition is often joined by opportunistic outside ideological groups, essentially taking over from the locals and polarizing the project. When polarization occurs, the proposed project will move into the disruptive issue stage. At this point the project proponent has virtually lost the ability to satisfactorily respond to and resolve the individual and community issues. Instead, the decision process will fall under the authority of regulatory, judicial and/or legislative entities.

Managing community issues that have the potential to delay or block proposed projects falls into two categories: issues prevention and issues intervention. Both categories require that project managers have crucial social and cultural knowledge about the citizens and communities likely to be impacted by the proposed project.

Issues Prevention It has been our experience that many issues associated with proposed projects can be prevented and need not occur. All communities are different because they have unique histories, are geographically defined and are populated by diverse individuals. Therefore, each community has a unique set of social and cultural dynamics that are different, requiring that each community be addressed in a custom designed fashion. By taking upfront time to understand the social and cultural dynamics of communities and the issues within those communities, project managers can design projects that are sensitive to the traditions, beliefs and culture of the geographic area of impact. Projects designed with social and cultural knowledge will be more congruent with the deep values of communities and their unique traits. This will help to avoid the creation of fears in citizens by recognizing the issues that exist in the community and new issues that the project will likely create.

Issues Intervention When legitimate citizen issues arise or if outside groups insert ideological

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UNDERSTANDING THE COMMUNITY

Project managers who are in alignment with the community’s beliefs and traditions and how they influence community reaction to outside forces, can be better equipped to respond with effective issue resolution actions.

Those actions will be focused on the root causes and grounded in the values and language of the community.

Understanding the Social/Cultural Parameter— Social Ecology How do project managers trained in the technologies of natural gas or electricity begin to understand the social/cultural parameter of the project decision space? The first step is to realize that traditional community relations, public information and governmental affairs approaches are, by their nature, employed too late in the process. Those traditional public disciplines overly rely on formal processes like public meetings, printed materials and media releases, which reach only a small fraction of a community and are often not considered

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elec tric energy | spring 2013

SE C

SENSE OF WELL-BEING

CE

» Early detection » Knowing and addressing the root causes, not the rhetoric » Working with those carrying the issue to identify solutions, preventing the continued appropriation of issues by organized groups » Formulating responses in the language of the community » Verifying response actions with the issue owners prior to implementation

• Safety • Acceptable Risk • Wholeness

OI CH

threats into the siting and permitting process, project managers can effectively intervene in those issues by asserting wisdom based on social and cultural knowledge. Issues in their emerging and existing stages can be effectively addressed through:

UR ITY

THE SOCIAL & CULTURAL DECISION PARAMETER

• Control • Fairness • Hope

PREDICTABILITY • Continuity • Stability • Sustainability to be sources of credible information.

Therefore, they do not provide project managers with relevant knowledge of a community; nor do they provide community access that will assist in maintaining a viable social/cultural parameter in the project decision space.

It is necessary to understand that communities are living organisms made up of component parts. Understanding how the components work together to shape and influence the entire community is called social ecology. There are several social and cultural components of a community that company employees can be trained to observe and integrate into the decision process. » Settlement Patterns: Why do people live here? Why do they stay? Why do they leave? » Work Routines: What do people do to enable them to stay? What would have to happen to make them leave? » Community Caretaking: How do people take care of each other, helping each other survive? » Leisure Activities: In what

pursuits do people spend their non-working time? » Community Issues: How do people link themselves together?

What are the concerns and issues prevalent within the various informal social networks? How do people organize to address their concerns and issues? » Informal Communication Networks: How does credible information flow within the community? How are opinions formed within the community?

Where do people gather?

Who influences whom? » Community Boundaries: What are the natural or human built features that people use to designate and define their community? How do people relate to their natural environment? What are the ways people define “home”?

Employees can be trained to methodically observe, record and pro-actively act upon their observations and findings. To

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understand the social ecology of information gathered in each of the components, it is necessary to begin identifying the patterns of similarities, overlaps and influences that each component has on the others. Understanding the ecology of the community can only be done by working with members of the community through the process. Understanding cannot be achieved in isolation.

The objective of the social ecology of a community regarding the proposed project is to develop a thorough understanding of how a community informally defines its sense of wellbeing prior to projects being proposed in formal regulatory processes.

Community Sense of Well-Being Every individual, as well as every community possesses a self-defined sense of well-being, knowing when they are comfortable and at ease and when comfortable and at ease and when

they are not. Fear and anger, which are usually the causes of community issues, arise when there are perceived threats to the sense of well-being. There are at least three elements on which residents base their sense of well-being: security, choice and predictability.

Security Is the proposed project safe? Will the proposed project ask the community to accept risks that are beyond their self-defined limits? Will the proposed project cause divisions in the wholeness and integrity of the community?

Choice How much control will the community have in the key decisions regarding the proposed project? Is there equity in risk and benefit between the project proponents and the community? Does the proposed project optimize the social, economic and ecological benefits to community residents?

Have residents participated in identifying and developing such benefits?

Predictability Will the proposed project insert unknowns into the life of the community beyond their ability to cope? Is the proposed project of a scale compatible with the values and trends currently affecting the community? Will the proposed project enhance the shared understanding of community sustainability?

Every community will define their sense of well-being differently based on their social ecology. For example, one community may have a high tolerance for risk based on their history and traditions, while another community may have a low threshold for risk based on their past failures concerning previously proposed ventures. When emerging and existing issues are detected, it is crucial to know which individuals and informal social networks are carrying those issues. Then, by working directly with those individuals and informal social networks, the root causes of these issues can be identified. Often, identifying the root causes of the issues is similar to peeling skin off an onion, because the issue owners may have difficulty articulating the perceived threat to their sense of well-being. A knowledge of the social ecology of the community coupled with gentleness and patience will go a long way to identifying the root causes of the issues and thereby identifying potential actions for satisfactory resolution.

Effectively Utilizing Social Ecology in Project Development Just as there are methods, processes, and science associated with the legal, fiscal, technological, physical and political parameters of the project decision space, so it is with the social/cultural parameter. The knowledge gained by project managers regarding the social ecology of communities likely to be impacted by proposed projects can be used in the following project stages: Project Proposal Âť Definition of purpose and need as it relates to the impacted communities

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elec tric energy | spring 2013

» Community-sensitive project design » Project consistency with community values, vision and plans

Project Actions » Identification of community issues » Development of opportunities to address issues » Assessment of social and economic impacts » Public information content, language and methodologies » Meaningful and collaborative citizen engagement » Effective grounded response to issues

Project Implementation » Acceptable monitoring protocols and procedures » Acceptable evaluation of project milestones » Ongoing communication during fits and starts in implementation

Social ecology is a learned skill, and it is the new kid on the block that can become a valuable discipline used by project managers responsible for managing interdisciplinary teams of professionals. There are two important keys to making social ecology work effectively: 1) It must be used at the very beginning of projects; and, 2) It must have parity with the other disciplines in tactical and strategic project decision making.

Conclusion Project managers and regulators are well aware of the effects of community issues on project schedules, costs and eventual success or failure. Traditional public relations efforts employed by project proponents and citizen participation requirements of regulatory agencies are often interpreted by communities as what the proponent is planning to “do to us.” There is a better way. Social ecology includes the impacted communities into the project so that citizens interpret proposed actions as what the proponent is trying to “do with us” to improve quality of life.

Yes, this approach takes more time on the front end of projects, but the tradeoff is that it reduces the time and cost of responding to community driven disruptive issues that need not have occurred in the first place.

And, it reduces the costly ineffectiveness of responding to the rhetoric of issues rather than positively addressing the root causes of issues. Social ecology, when employed correctly, assists in maintaining a viable and open social/ cultural parameter in the project decision space.

Gary Severson is a Senior Associate, Corporate and Government Collaboration and Education Programs, at the JKA Group. James Kent is the President and Social Ecologist at the JKA Group.

He can be reached at jimkentjka@gmail.com.

A version of this article was published in the Natural Gas & Electricity Journal, December 2012.

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The FCC’s Pole Attachment Order is Promoting Broadband at the Expense of Electric Utilities

By Thomas B. Magee, Partner, Keller and Heckman LLP

46

elec tric energy | spring 2013

F

ollowing several years

of study and comments, the Federal Communications Commission (“FCC” or “Commission”) in April 2011 released a Report and Order on Reconsideration (“FCC Pole Attachment Order”) that comprehensively changed the manner in which the FCC regulates pole attachments subject to its jurisdiction. The Commission’s objectives were to promote broadband, reduce barriers to broadband deployment and lower the cost of broadband deployment. The rate portions of that decision were recently affirmed on February 26, 2013 by the U.S. Court of Appeals for the D.C. Circuit and reconsideration of the operational rulings are still pending at the Commission.

Unfortunately, in reaching its decision, the FCC expressed no serious concern for the impact of its new pole attachment regulations on electric utilities and their ratepayers, and paid little attention to the operational and financial concerns raised by the utilities. As a result, the Order employs questionable reasoning to support its conclusions, reflects an unfortunate misunderstanding of electric utility operations, and is proving very costly to electric utilities.

From the electric utility perspective, the FCC’s decision is onerous, disruptive and very expensive. It raises significant safety and operating concerns and is beginning to create a radically different pole attachment world going forward. Make-ready deadlines, drastically reduced attachment revenue, the regulation of joint use relationships between electric utilities and Incumbent Local Exchange Carriers (ILECs) like Verizon and AT&T, and the promotion of wireless antenna attachments in the electric space are already causing anxiety among utilities and having a profound effect. These rules, unless reconsidered by the FCC, unfortunately will be with us for a long time.

Regulatory Background The FCC has jurisdiction over attachments to investor-owned utility poles, not w w w. r mel .o rg

47

those of rural electric cooperatives and municipally-owned utilities. It also lacks jurisdiction over investor-owned utility poles in 20 states and the District of Columbia, which have opted to regulate pole attachments themselves. Nevertheless, citing the FCC Pole Attachment Order, attachers have (mistakenly) been arguing that cooperatives and munis must follow FCC rules, and many of the 20 state public service

commissions that regulate attachments to IOU poles look to FCC pole attachment rulings for guidance.

In 1978, Congress added Section 224 to the Communications Act of 1934, as amended, and directed the FCC to ensure that rates, terms and conditions for pole attachments by cable television systems were “just and reasonable.” A formula for calculating attachment rates for cable systems providing cable service was included in the statute.

In 1996, Congress expanded the definition of pole attachments to include not only cable attachments, but also attachments by “providers of telecommunications services,” and established a formula for calculating attachment rates for telecom providers (known as Competitive Local Exchange Carriers, or CLECs).

In 2007, the Commission issued a Notice of Proposed Rulemaking seeking comment on proposals by cable companies, CLECs and for the first time ILECs, for more favorable terms of attachment.

The FCC Pole Attachment Order In General Motivated by a desire to promote broadband deployment, the FCC Pole Attachment Order adopted multiple new rules designed to make the attachment process as quick, easy and cheap as possible for attachers. It is fair to say that in large part, many of the serious concerns expressed by utilities during the course of the proceedings were discarded or ignored by the Commission. The FCC’s much-touted National Broadband Plan, for example, approves FCC staff’s recommendations with citations to 38 filings on behalf of attachers while citing only two (2) filings of electric utilities among the volumes we submitted.

Among other things, the Commission established (for the first time) a specific, expedited timetable for utilities to grant access to attachers. The Commission also “redefined” several statutory terms so that the telecom attachment rate would be drastically reduced to approximate the already low cable rate.

Additionally, and perhaps most importantly, the Commission “reinterpreted” its previous decisions and several statutory provisions to allow ILECs sharing joint use of poles for the first time to request the lower, regulated telecom rate for their attachments.

48

elec tric energy | spring 2013

In reaching these decisions, the Commission’s announced goal was to provide a single, unified rate for all attachers (cable, CLEC, ILEC), approximating the existing low cable rate, while requiring utilities to act within a relatively short deadline on all applications for attachment. In the Commission’s view, quicker, easier and cheaper access to utility poles will promote broadband deployment, especially in rural areas.

For electric utility pole owners, the Order creates significantly more work providing notices and otherwise administering communications attachments. Utility operations can be significantly disrupted in order to accommodate attachers and a number of disputes with attaching entities already have surfaced.

Attachment agreements with cable operators and CLECs are being renegotiated, and many attachers have been busy recalculating the rates you can charge for attachments. Some ILECs have started demanding more favorable rates and terms, threatening FCC complaints against utilities to improve their existing joint use relationships with utilities.

The Commission created a new, four-stage makeready timetable in the FCC Pole Attachment Order, which requires IOU and ILEC pole owners to process most pole attachment requests (wireline and wireless) in the communications space within a total of 148 days: Stage 1/Survey (45 days): The pole owner conducts an engineering survey to determine whether and where attachment is feasible and what make-ready is required; Stage 2/Estimate (14 days): The pole owner provides an estimate of the make-ready charges to the attacher; Stage 3/Acceptance (14 days): The attacher accepts the estimate and provides payment; and Stage 4/Make-Ready (60 days): The pole owner notifies in writing all known attachers already on the pole, specifying where and what make-ready will be performed, setting a date for completion, allowing modifications of existing attachments within that period, and completing all necessary make-ready. During the make-ready period, a pole owner may notify the attacher that it will perform the make-ready work itself and take an additional 15 days (148 days total).

Wireless: Finding that a wireless carrier’s right to attach to pole tops is the same as it is to attach to any other part of a pole, the Commission determined to allow an extra 30 days for make-ready regarding wireless attachments above the communications space (i.e., a total of 178 days).

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49

larger requests: For requests to attach to more than 300 poles or 0.5% of a utility’s total poles within a state (whichever is less), an additional 15 days is allowed for the survey and 45 days for make-ready. For requests to attach to more than 3000 poles (or 5% of a utility’s poles state-wide), the timeline is negotiated. failure to comply: If a utility does not comply with the survey or make-ready deadlines, attachers are free to engage a utility-approved contractor to perform necessary work in the communications space. If the make-ready deadline is missed for wireless attachments above the communications space, the sole remedy is for the attacher to file a complaint at the FCC. The make-ready deadlines are but one example of where the FCC ignored electric utility concerns. The electric utility industry gathered en masse at the FCC on two occasions to explain to Commission staff and legal advisors why the FCC’s proposal to establish make-ready deadlines will not work in the real world of electric utilities. The first meeting included 49 people from the electric utility industry. The second included about 35 utility representatives. I moderated lengthy panel discussions at both meetings, explaining our concerns. Most of these concerns were ignored in the Commission’s Order.

Reduction in the Telecom Attachment Rate With respect to rates, the Commission’s goal was to reduce them to a level “as low and as close to uniform as possible.” What that means to the FCC is a level sufficient so that no one can complain that it’s an unconstitutional taking of electric utility property without just compensation. To do that, the FCC came up with a scheme to “reinterpret” the Pole Attachment Act so that the existing telecom rate can be reduced to a level that will approximate the existing cable rate. This statutory interpretation and new rate calculations that ensued are about as logical as something you would hear in Alice in Wonderland.

New Regulation of ILEC Joint Use Attachments For more than 100 years, the relationship between pole owners (electric utilities and telephone companies) was governed by mutually agreeable, private contracts (joint use agreements) and not by the rules and regulations of the FCC or any other federal government agency. It was widely recognized that ILECs had no statutory right of access to utility poles, and that they were not entitled to regulated rates, terms or conditions for their attachments. Instead, the joint use arrangement was mutually negotiated by the parties at arms’ length, since each needed access to the other’s poles. That longstanding arrangement, at least for ILEC attachments on regulated IOU poles, has now been upended by the Pole Attachment Order.

50

elec tric energy | spring 2013

While recognizing that ILECs have no statutory right to demand access to utility poles, the FCC has now ruled for the first time that ILECs are nonetheless entitled to file pole attachment complaints at the Commission seeking to receive regulated rates, terms and conditions for their attachments similar to those currently granted to CLEC and cable operators. In response, some IOUs may be forced to reduce the ILEC attachment rates specified in their joint use contracts (and the resulting revenues) by more than 80 percent (e.g., from 45 percent of annual costs to as low as 7.4 percent). The impact on electric utility access to ILEC poles was almost completely ignored by the Commission.

This FCC ruling on ILEC jurisdiction alone, which has now been upheld by the courts, is designed to require electric utility ratepayers to subsidize ILECs with hundreds of millions of dollars of additional revenues each year. Utility ratepayers, however, were forgotten completely in the FCC’s Pole Attachment Order. Instead, the Order acted as if this additional ILEC revenue was simply lying on the street waiting for the FCC to pick it up.

Amazingly, the FCC bought into the ILEC arguments that

companies and their trade associations intervened in support of the FCC’s new rules. A different group of IOUs (the Coalition of Concerned Utilities) filed as interveners in support of the other utilities’ appeal of the rules, and the Edison Electric Institute (EEI) filed as an amicus curiae (“friend of the court”).

The D.C. Circuit heard oral argument on January 23, 2013 and ruled February 26, 2013 to affirm the FCC’s rules. reconsideration at fcc: On June 8, 2011, the Coalition of Concerned Utilities that filed as Intervenors in support of the appeal also requested reconsideration by the FCC of certain aspects of the decision. The utilities asked the FCC, among other things: (1) to reconsider the makeready deadlines and address certain attacher rearrangement issues; (2) to allow pole owners to impose penalties for safety violations; (3) to disallow pole top antenna attachments in certain circumstances; and (4) to prohibit retroactive refunds earlier than the effective date of the FCC Pole Attachment Order. Certain cable and telephone interests, on the other hand, asked the FCC to lower the telecom rate even further on reconsideration.

The FCC has waited for the D.C. Circuit to rule on appeal before addressing these reconsideration issues, and the Commission’s decision could be released any day now.

Conclusion

ILECs have lost their bargaining power in joint-use relationships because they now own fewer poles than the electric utilities and as a result electric utilities are taking advantage of them. This fabricated claim does not reflect the experience of any electric utility I know. The nationwide experience instead is that ILECs have been shirking their joint-use responsibilities for years and not installing the number of poles they should be installing to keep up pole ownership parity levels.

Their claim of being taken advantage of thus reminds me of the criminal defendant who murdered his parents yet then asks the court for mercy because he’s an orphan.

Appeal Proceedings court appeal. On May 18, 2011, a group of investorowned electric utilities filed an appeal of the FCC Pole Attachment Order in the U.S. Court of Appeals for the District of Columbia Circuit. The utilities challenged three of the FCC’s new rules: (1) the rule allowing ILECs to file pole attachment complaints; (2) the lower telecom rate formula; and (3) the rule establishing a refund period dating back to the applicable statute of limitations. A host of cable companies, telephone

This is a very complex and far-reaching decision. It includes a lot of ambiguities and misunderstandings, and begs for further explanation from the FCC. Many issues need to be clarified which the FCC at this point does not seem to understand. For the time being, however, the FCC Pole Attachment Order stands as a ruling by a broadband-obsessed Commission that shows a stunning disregard for electric utility concerns. And now that the D.C. Circuit has affirmed the Commission’s rate rulings, we can all expect ILECs and other entities to seek lower attachment rates.

Tom Magee advises electric utility and other infrastructure clients on a variety of telecommunications matters before the Federal Communications Commission, federal and state courts, and state and local regulatory authorities. His primary focus is on pole attachment and joint use regulation, and the FCC’s licensing of private wireless telecommunications services. Mr. Magee has been privileged in this proceeding to represent, along with his partner Jack Richards of Keller and Heckman, LLP, the Coalition of Concerned Utilities, composed at various times from a group of more than a dozen investor-owned utilities (Allegheny Power, Baltimore Gas and Electric, Consumers Energy, Dayton Power and Light, Detroit Edison, FirstEnergy Corp., Hawaiian Electric Co., National Grid, NSTAR, Pepco Holdings, PPL Electric Utilities, South Dakota Electric Utilities, Wisconsin Public Service Company, and Xcel Energy). He can be reached at (202) 434-4128; magee@khlaw.com. w w w. r mel .o rg

51

member listings

RMEL Member Companies

52

1

ABB, Inc.

50 City of Yuma

98 Harris Group, Inc.

2

ABCO Industrial Sales, Inc.

51 Co-Mo Electric Cooperative

99 Hartigan Power Equipment Company

3

ADA-ES, Inc.

52 CoBank

100 Hawkeye Helicopter LLC

4

Alexander Publications

53 Colorado Energy Management, LLC

101 HDR, Inc.

5

Alstom Power

54 Colorado Powerline, Inc.

102 High Energy-Inc. (HEI)

6

Altec Industries, Inc.

55 Colorado Public Utilities Commission

103 High Plains Power, Inc.

7

AMEC

56 Colorado Rural Electric Association

104 Highline Electric Assn.

8

American Coal Council

57 Colorado Springs Utilities

105 Hitachi Power Systems America, Ltd

9

AREVA Solar Inc.

58 Colorado State University

106 Holy Cross Energy

10 A rizona Electric Power Cooperative, Inc.

59 Commonwealth Associates, Inc.

107 Homer Electric Association, Inc.

60 ComRent

108 Howard Electric Cooperative

11 Arizona Public Service

61 Continental Divide Electric Cooperative

109 Hubbell Power Systems

12 Arkansas River Power Authority

62 Cooling Tower Depot

110 Hughes Brothers, Inc.

13 Asplundh Tree Expert Co.

63 Corporate Risk Solutions, Inc.

111 IBEW, Local Union 111

14 Associated Electric Cooperative, Inc.

112 IMCORP

15 ATCO Emissions Management

64 C ounty of Los Alamos Dept. of Public Utilities

16 Austin Energy

65 CPS Energy

114 Intercounty Electric Coop Association

17 AZCO INC.

66 Delta Montrose Electric Assn.

115 Intermountain Rural Electric Assn.

18 Babcock & Wilcox Company

67 DIS-TRAN Packaged Substations, LLC

116 Irby

19 Babcock Power, Inc.

68 Dowdy Recruiting LLC

20 Basin Electric Power Cooperative

69 E & T Equipment, LLC

117 I rwin Industries, Inc.- Power Plant Services

21 Beta Engineering

70 E3 Consulting

118 J.L. Hermon & Associates, Inc.

22 Black & Veatch Corp.

71 El Paso Electric Company

119 Kahuna Ventures, LLC

23 Black Hills Corporation

72 Electrical Consultants, Inc.

120 Kansas City Board of Public Utilities

24 Black Hills Electric Cooperative

73 Emerson Process Management

121 KD Johnson, Inc.

25 BMT Acquisition, LLC

74 The Empire District Electric Company

122 Kiewit

26 Boilermakers Local #101

75 Empire Electric Association, Inc.

123 Kit Carson Electric Cooperative

27 Boone Electric Cooperative

76 Encompass Energy Services LLC

124 Kleinfelder

28 Border States Electric

77 Energy & Resource Consulting Group, LLC

125 Klondyke Construction LLC

29 Bowman Consulting Group

78 Energy Reps

126 La Junta Municipal Utilities

30 Brand Energy & Infrastructure Services

79 Equal Electric, Inc.

127 La Plata Electric Association, Inc.

31 Brooks Manufacturing Company

80 ESC | engineering

128 Lake Region Electric Coop Inc.

32 Burns & McDonnell

81 Estes Park Light & Power Dept.

129 Lamar Utilities Board

33 Butler Public Power District

82 Exponential Engineering Company

130 Laminated Wood Systems, Inc.

34 C.I.Agent Solutions

83 Finley Engineering Company, Inc.

131 Lane-Scott Electric Cooperative, Inc.

35 Carbon Power & Light, Inc.

84 Foothills Energy Services Inc.

132 Lauren Engineers & Constructors

36 Casey Industrial, Inc.

85 Fort Collins Utilities

133 LEADERSHIP A Business Imperative, Inc.

37 CB&I

86 Foster Wheeler

134 Lewis Associates, Inc.

38 CBS Arc Safe

87 Fuel Tech, Inc.

135 Lincoln Electric System

39 Center Electric Light & Power System

88 Garden City Municipal Utilities

136 Llewellyn Consulting

40 CH2M HILL

89 GE Power & Water

137 Longmont Power and Communications

41 Chimney Rock Public Power District

90 Genscape, Inc.

138 The Louis Berger Group

42 City of Alliance Electric Department

91 Golder Associates, Inc.

139 Loup River Public Power District

43 City of Aztec Electric Department

92 Grand Island Utilities

140 Loveland Water & Power

44 City of Cody

93 Grand Valley Rural Power Lines, Inc.

141 Luminate, LLC

45 City of Farmington

94 Great Southwestern Construction, Inc.

142 Marsulex Environmental Technologies

46 City of Fountain

143 Merrick & Company

47 City of Gillette

95 G unnison County Electric Association, Inc.

48 City of Glenwood Springs

96 Hamilton Associates, Inc.

145 Mitsubishi Power Systems Americas, Inc.

49 City of Imperial

97 Hamon Research - Cottrell

146 Morgan County Rural Electric Assn.

elec tric energy | spring 2013

113 Independence Power & Light

144 Missouri River Energy Services

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53

member listings

147 Mountain Parks Electric, Inc.

199 SAIC

148 Mountain States Utility Sales

200 San Isabel Electric Assn.

149 Mountain View Electric Assn.

248 Trimble

150 Mycoff, Fry & Prouse LLC

201 San Luis Valley Rural Electric Cooperative

151 NAES Corp.

202 San Marcos Electric Utility

250 U.S. Water Services

152 Navigant

203 San Miguel Power Assn.

251 UC Synergetic

153 Navopache Electric Cooperative, Inc.

204 Sangre De Cristo Electric Assn.

252 Ulteig Engineers, Inc.

154 Nebraska Public Power District

205 Sargent & Lundy

253 United Power, Inc.

155 NEI Electric Power Engineering, Inc.

206 Savage Services Corporation

254 Universal Field Services Inc.

156 New Mexico State University

207 Scientech

255 University of Colorado

157 Nol-Tec Systems, Inc.

208 Sega Inc.

158 Nooter/Eriksen, Inc.

209 Siemens Energy Inc.

159 Norris Public Power District

210 Sierra Electric Cooperative, Inc.

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

160 North Platte Light & Power

211 S ierra Southwest Cooperative Services, Inc.

161 Northeast Community College 162 Northwest Rural Public Power District 163 Novinda Corporation 164 NV Energy 165 O I C Outage 166 Omaha Public Power District 167 Omnicon Technical Sales 168 On-Ramp Wireless 169 Osmose Utilities Services, Inc. 170 Otero County Electric Cooperative 171 PacifiCorp 172 P anhandle Rural Electric Membership Assn.

173 PAR Electrical Contractors, Inc. 174 PCS Mobile 175 Peterson Co. 176 Pike Electric, LLC 177 Pine Valley Power, Inc. 178 Pioneer Electric Cooperative, Inc. 179 Pipefitters Local Union #208 180 Platte River Power Authority 181 PNM Resources 182 Poudre Valley Rural Electric Assn.

183 POWER Engineers, Inc.

249 Trinidad Municipal Light & Power

257 UNS Energy Corporation 258 URS Energy & Construction Inc.

212 SNC-Lavalin Constructors Inc.

259 Utility Ethernet Forum

213 Solomon Associates

260 Utility Telecom Consulting Group, Inc.

214 South Central PPD

261 Victaulic

215 Southeast Colorado Power Assn.

262 W채rtsil채 North America, Inc.

216 Southeast Community College

263 Wazee Companies LLC

217 Southern Pioneer Electric Company

264 WESCO

218 Southwest Generation

265 West Plains Engineering, Inc.

219 S outhwest Transmission Cooperative, Inc.

266 Westar Energy

220 Southwestern Power Administration

268 Western Cultural Resource Management, Inc. (WCRM, Inc.)

221 Southwire Company 222 SPIDAWeb LLC 223 Springfield Municipal Light & Power 224 SPX Cooling Technologies 225 SPX Transformer Solutions, Inc. 226 SRP 227 Stanley Consultants, Inc. 228 STEAG Energy Services LLC 229 Storm Technologies Inc. 230 STRUCTURAL 231 Sturgeon Electric Co., Inc. 232 Sulphur Springs Valley Electric Cooperative

267 Western Area Power Administration

269 Western Line Constructors Chapter, Inc. NECA 270 Western Nebraska Community College 271 Western United Electric Supply 272 Westinghouse Electric Company 273 Westwood Professional Services 274 Wheat Belt Public Power District 275 Wheatland Electric Cooperative 276 Wheatland Rural Electric Assn.

277 White River Electric Assn., Inc. 278 White River Valley Electric Cooperative 279 William W. Rutherford & Associates

233 Sundt Construction

280 WorleyParsons Group, Inc.

234 Sunflower Electric Power Corporation

281 Wyrulec Company

235 T & R Electric Supply Co., Inc.

282 Xcel Energy

236 Technically Speaking, Inc.

283 Y-W Electric Association, Inc.

237 TestAmerica Laboratories, Inc.

284 Yampa Valley Electric Association, Inc.

238 Thomas & Betts Steel Structures Division

285 Zachry Holdings, Inc.

189 Provo City Power 190 Quanta Services

239 TIC - The Industrial Company

Total Number of Members: 285

191 Raton Public Service

240 Total-Western, Inc.

192 REC Associates

241 Towill, Inc.

193 Reliability Management Group (RMG)

242 Trachte, Inc. Buildings & Shelters

194 Reliable Power Consultants, Inc.

243 Trans American Power Products, Inc.

195 Rkneal, Inc. 196 Rossi Group, LLC

244 Transmission & Distribution Services, LLC

197 Sabre Tubular Structures

245 TRC Engineers, Inc.

198 Safety One Inc.

246 Trees Inc

184 Power Equipment Specialists, Inc. 185 Power Pole Inspections 186 Power Product Services 187 PowerQuip Corporation 188 Precision Resource Company

54

247 T ri-State Generation and Transmission Assn.

elec tric energy | spring 2013

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55

rmel 2013 calendar

2013 Calendar of Events January 17, 2013

March 28, 2013

July 9, 2013

Introduction to the Electric Utility Workshop Denver, CO

Electric Utility Workforce Management Roundtable Denver, CO

RMEL Golf Tournament Westminster, CO

January 29, 2013

April 4-5, 2013

Utility Financing for Non-Financial Personnel Workshop Denver, CO

Arc Flash Low Voltage and High Voltage Workshop Denver, CO

February 7-8, 2013

Safety Roundtable - August 2013 Fort Collins, CO

September 8-10, 2013 Fall Executive Leadership and Management Convention Marana, AZ

Distribution Engineers Workshop Denver, CO

Distribution Overhead and Underground Design and Staking Workshop Tempe, AZ

February 22, 2013

April 23-24, 2013

Safety Roundtable - February 2013 Denver, CO

Health and Safety Conference Denver, CO

2014 Spring Management, Engineering and Operations Conference Planning Session Denver, CO

April 24, 2013

October 3, 2013

Safety Roundtable - April 2013 Denver, CO

Distribution Automation Conference Denver, CO

March 7-8, 2013 Power Supply Planning and Projects Conference Denver, CO

March 8, 2013 Generation Vital Issues Roundtable Denver, CO

March 12-13, 2013 Transmission Planning and Operations Conference Denver, CO

May 19-21, 2013 Spring Management, Engineering and Operations Conference Vail, CO

Renewable Planning and Operations Conference Denver, CO

June 14, 2013 June 27, 2013

Distribution Vital Issues Roundtable Denver, CO

elec tric energy | spring 2013

OSHA Reporting, Workforce Regulations, FMLA Seminar Denver, CO

October 17, 2013

Transmission Vital Issues Roundtable Denver, CO

March 15, 2013

October 10, 2013

Plant Management Conference Golden, CO

Plant Management Roundtable Golden, CO

Distribution Overhead and Underground Operations and Maintenance Conference Denver, CO

September 26, 2013

June 13-14, 2013

March 13, 2013 March 14-15, 2013

56

April 10-12, 2013

August 30, 2013

November 15, 2013 Safety Roundtable November 2013 Westminster, CO

Transmission Operations and Maintenance Conference Denver, CO

continuing education certificates Continuing 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.

Reliable

Proven

Solutions from a provider you can trust.

Our brand is about relationships and providing reliable energy solutions — working collaboratively with clients to earn repeat business and delivering the level of quality expected from Black & Veatch. From concept to completion, fresh insight and endless global expertise are delivered on time and on budget for power generation, power delivery and telecommunications solutions you can count on.

We’re building a world of difference. Together.

Consulting

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Engineering

•

Construction

•

Operation

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advertiser index

AMEC

www.amec.com

(770) 810-9698

Black & Veatch Corp.

57

www.bv.com

(913) 458-2000

Border States Electric

28

www.borderstateselectric.com

(701) 293-5834

California Turbo, Inc.

55

www.californiaturbo.com

(800) 448-1446

CoBank

21

www.cobank.com

(800) 542-8072

Colorado Powerline, Inc.

33

(303) 660-3784

DIS-TRAN Packaged Substations, LLC

53

www.distran.com

(318) 448-0274

ERG Consulting

19

www.ERGconsulting.com

(203) 843-0600

Fuel Tech

17

www.ftek.com

(630) 845-4500

Great Southwestern Construction, Inc.

32

www.gswc.us

(303) 688-5816

HDR, Inc.

27

www.hdrinc.com

(402) 399-1000

Harris Group, Inc.

44

www.harrisgroup.com

(303) 291-0355

Hitachi Power Systems America, Ltd.

41

www.hitachipowersystems.us

(908) 605-2800

Hughes Brothers

29

www.hughesbros.com

(402) 643-2991

www.kiewit.com

(913) 928-7000

Kiewit

58

Inside Front Cover

Back Cover

KVA/WESCO

11

www.KVAsupply.com

(303) 217-7500

Laminated Wood Systems, Inc.

45

www.lwsinc.com

(402) 643-4708

Lauren

3

www.laurenec.com

(325) 670-9660

Merrick & Company

32

www.merrick.com

(303) 751-0741

Nebraska Public Power District

53

www.nppd.com

(402) 564-8561

OiC Group

23

www.oicoutage.com

(978) 281-1991

Pioneer Electric Cooperative, Inc.

8

www.pioneerelectric.coop

(620) 356-4111

POWER Engineers

3

www.powereng.com

(208) 788-3456

Sabre Tubular Structures

49

www.SabreTubularStructures.com

(817) 852-1700

Siemens

Inside Back Cover

www.siemens.com

(303) 696-8446

Sega, Inc.

49

www.segainc.com

(913) 681-2881

Stanley Consultants, Inc.

55

www.stanleygroup.com

(303) 799-6806

Sturgeon Electric Co. Inc.

55

www.myrgroup.com

(303) 286-8000

T & R Electric Supply Co., Inc.

12

www.tr.com

(800) 843-7994

Trees Inc.

45

www.treesinc.com

(866) 865-9617

Ulteig Engineers, Inc.

7

www.ulteig.com

(877) 858-3449

University of Idaho Summit

13

www.uiueg.org

(208) 885-6265

Young & Franklin

9

www.yf.com

(315) 457-3110

Zachry Holdings, Inc.

43

www.zhi.com

(210) 588-5000

elec tric energy | spring 2013

© Siemens AG, 2011. All Rights Reserved.

Fifty states, fifty states of energy.

The nation’s need for energy needs answers for all types of energy.

In the Northeast, storms threaten the reliability of power.

In the Southwest, heat waves tax the grid. Big cities dot the Atlantic seaboard. While out West, towns are separated by hundreds of miles of wilderness. It‘s a massive country, with energy needs that can differ massively depending on where you are. That’s why a single answer is not enough.

Siemens has a wide range of lasting energy answers to help the utilities that power the country meet their unique requirements. We provide our customers with efficient

energy solutions fitted to their diverse local, ecological and economic needs.

And, as we tackle environmental challenges, we keep finding ways to make conventional fuels cleaner than ever before.

We help customers integrate renewable power, and we remain committed to using our nation’s resources responsibly.

The journey to a new kind of energy system needs all types of answers. Answers today, and answers that last.

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