Development of a Tribal Development of a Tribal UtilityUtility

• Why is the Development of a Why is the Development of a Tribally Tribally

Owned Utility aOwned Utility a

““Good Thing”Good Thing”

• WHAT CONDITION EXISTS ON MOST WHAT CONDITION EXISTS ON MOST TRIBAL LANDS?TRIBAL LANDS?

• THE LACK OF LONG TERM THE LACK OF LONG TERM EMPLOYMENTEMPLOYMENT

STATIC BUSINESS STATIC BUSINESS ENVIRONMENTENVIRONMENT

HOUSING No Large ProjectsHOUSING No Large Projects

BUSINESS DEVELOPMENT ???????BUSINESS DEVELOPMENT ???????

INDUSTRY ?????? INDUSTRY ??????

COMPETITION FOR COMPETITION FOR DECLINING DOLLARSDECLINING DOLLARS

• The AdvantageThe Advantage

• Provides a Tribe the opportunity to Provides a Tribe the opportunity to create a sustainable enterprise that create a sustainable enterprise that promotes economic development, promotes economic development, employment, self-determination with employment, self-determination with a minimal amount of risk. a minimal amount of risk.

Promote Economic Promote Economic DevelopmentDevelopment• Participate in Participate in

community community planningplanning

• Commercial Commercial developmentdevelopment

• Expanding our Expanding our market sharemarket share

• Deals with a sustainable commodityDeals with a sustainable commodity

• Normally has an established, sustainable Normally has an established, sustainable and protected marketand protected market

• Keeps revenues generated on tribal landsKeeps revenues generated on tribal lands

• Promotes sustainable employmentPromotes sustainable employment

• Allows environmental safeguardsAllows environmental safeguards

• Can minimize government involvementCan minimize government involvement

• Promotes self-determinationPromotes self-determination

• Organizational StructureOrganizational Structure

• Private Enterprise, privately owned and usually for profitPrivate Enterprise, privately owned and usually for profit• Tribal departmentTribal department• Answers to councilAnswers to council• Subject to political influences Subject to political influences • Political SubdivisionPolitical Subdivision• Does not answer to councilDoes not answer to council• Controlled by elected officialsControlled by elected officials• Tribal Instrumentality Tribal Instrumentality • Independent Board or Council Independent Board or Council • Limited political involvementLimited political involvement• May be a volunteer organization May be a volunteer organization • •

• In 1971 PTUA was developed as a Tribal In 1971 PTUA was developed as a Tribal Instrumentality to provide electric and water service Instrumentality to provide electric and water service for the reservation.for the reservation.

• $100,000.00$100,000.00 loan from the Tribe, six employees and loan from the Tribe, six employees and borrowed office space. borrowed office space.

• Today TOUA has a combined plant value of Today TOUA has a combined plant value of approximately $109 million.approximately $109 million.

• Provides electric, water / wastewater, telephone, Provides electric, water / wastewater, telephone, cellular, internet and propane services for the entire cellular, internet and propane services for the entire Tohono O’odham Nation.Tohono O’odham Nation.

• Employees approximately 108 permanent qualified Employees approximately 108 permanent qualified individuals, and a staff of specific project workers.individuals, and a staff of specific project workers.

• IN 2009 THE ANNUAL COMBINED IN 2009 THE ANNUAL COMBINED BUDGETS TOTALED $117,400,000BUDGETS TOTALED $117,400,000

• THE ESTIMATED TOTAL REVENUES:THE ESTIMATED TOTAL REVENUES:

• $117,400,000$117,400,000

• THE TOTAL PAYROLL FOR 2009:THE TOTAL PAYROLL FOR 2009:

• $4,800,000$4,800,000

Indian Health Service FundingIndian Health Service Funding

• Probably the most common funding source Probably the most common funding source for infrastructure developmentfor infrastructure development

• Normally done through the M.O. A. Normally done through the M.O. A. process. process.

• If handled properly, can result in a well If handled properly, can result in a well built user friendly utility system.built user friendly utility system.

• Provides funding for many ancillary Provides funding for many ancillary services i.e. training, equipment, facilities services i.e. training, equipment, facilities etc. etc.

FUNDINGFUNDING

• USDA / RDUSDA / RD

• EPAEPA

• RUSRUS

• IHSIHS

• BIABIA

• INTERNALLY GENERATED INTERNALLY GENERATED

• PRIVATE INVESTMENTPRIVATE INVESTMENT

EDUCATIONEDUCATION

• Stay abreast of the Stay abreast of the changing changing regulatory regulatory environmentenvironment

• Professional Professional Development for Development for our staff. our staff.

• Maintaining Maintaining adequate staffing.adequate staffing.

COMMUNICATIONCOMMUNICATION

• Make everyone Make everyone aware of the changes aware of the changes in the industryin the industry

• Customer Customer (consumer) (consumer) educationeducation

Public Meetings Public Meetings

Consumer Confidence ReportingConsumer Confidence Reporting School ProgramsSchool Programs Open Houses Open Houses

What Have We Been DoingWhat Have We Been Doing

• BuildingBuilding

• RegionalizingRegionalizing

• Automating Automating

Continue To Look ahead Continue To Look ahead

WithForce Account, Tribal Procurement WithForce Account, Tribal Procurement & 638 Construction we improve and & 638 Construction we improve and expand.expand.

Electric DepartmentElectric Department

Plant Expansion and ReplacementPlant Expansion and Replacement

High Cost Grant Electrifying Remote High Cost Grant Electrifying Remote AreasAreas

Exploring Renewable Energy Exploring Renewable Energy AlternativesAlternatives

Doing this work with internal Doing this work with internal workforce. workforce.

Telephone DepartmentTelephone Department

Installation of Fiber Optics To Every Installation of Fiber Optics To Every Community Community

Expanding Hi-Speed Internet and Expanding Hi-Speed Internet and Exploring Wi-FiExploring Wi-Fi

Expanding the Cellular OperationExpanding the Cellular Operation

Investigating Digital Television Service Investigating Digital Television Service

Doing the work with internal workforce and special projects Doing the work with internal workforce and special projects workersworkers..

Propane DepartmentPropane Department

Residential Delivery Residential Delivery

Expanding Commercial Expanding Commercial BusinessBusiness

. .

Residential DeliveryResidential Delivery

WHY WE DO ITWHY WE DO IT

Why We Do ItWhy We Do It

What the Future Has In What the Future Has In StoreStore

Look Toward the FutureLook Toward the Future

• Keep working toward Keep working toward financial viabilityfinancial viability

• Stay current with Stay current with human resource human resource issuesissues

• Continue to monitor Continue to monitor and adjust rates as and adjust rates as needed.needed.

• Plan responsiblyPlan responsibly• Be proactiveBe proactive

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

• Maximize Federal Maximize Federal FundingFunding

• GrantsGrants

• Loans Loans

• Consolidated Consolidated funding from funding from various sourcesvarious sources

Thank YouThank You