Mid-West Electric Consumers Association

Board Meeting

Mark A. GabrielAdministrator

Thank you, Tom

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State of Western’s Assets

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Operational Focus

• Western operates and manages on a distributed basis

• First pathway in the roadmap focuses on business, technology and organizational excellence

• Provide staffing and support where it is most logical and cost effective

• Streamline where possible to keep costs low

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Functions and Locations

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Roadmap 2024

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Strategic Targets

Power and Transmission-related ServicesEnergy InfrastructurePartnership and InnovationAsset Management

Safety and SecurityCommunication

Human Capital Management8

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Asset Management

• Comprehensive, data-driven program• Knowing the health and condition of our

assets contributes to the safety of our employees who maintain that equipment.

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Human Capital Management

• Aging workforce, rapidly changing industry• Shortage of mission-critical craft workers• Focus on effective workforce planning and

succession planning• Ensure the right people, properly trained, in

the right places

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Enterprise Risk Management

Roll up of 10-year Capital Investment Plans

Washington Updates

• Western is staying actively engaged in DC– Detailed staff to support QER– Cycling staff through WLO as part of our leadership development

• Seat at the table on the ESCC– Participating in playbook, transformer initiative, GridEx, public

affairs outreach

• Responding to amortization and related requests from BOR and COE

• Regular meetings and engagement with DOE and Congressionals

Presidential Expectations

• Presidential call for efficiency and effectiveness reforms across government

• Sec. Moniz committed to improving DOE management functions (Western’s HR authority is delegated from DOE).

• DOE Human Capital strategic plan, provided to President, includes reduction of per-employee cost 50% DOE-wide, including all of the PMAs.

• DOE Chief HCM Officer conducted 120-day study, recommended hybrid Shared Service Center (SSC) approach to Secretary.

• Secretary accepted recommendation.

Washington Update: Human Resources Study• HR Authority Delegated from the Department of Energy • Western among the Best in Government Class:

– High service ratio (1:54)– Lowest cost ($2,042/employee/year)– Effective HR management

• Verified/measured by OPM/IG audits– 24 staff members located in Lakewood supporting all of Western with:

• Position management• Recruitment, hiring, onboarding• Labor relations• Disciplinary actions

– 1 Staff member in each Western region to assist with labor relations and related

SSCs – Shared Service Centers

• Current: DOE HR authority is highly delegated to 17 sites = Risk, cost, and inefficiency for DOE.

• To be: Hybrid approach - Shared Service Centers (SSCs) across DOE

• SSCs will be aligned by similar business lines.

• There will be a PMA-specific Shared Service Center.– HR operations will report to DOE HR.

– SSCs will manage the transactional aspects of HR.

– HR experts will be/remain on-site at each PMA to give daily support.

• Location of PMA SSC is to be determined.

• DOE preparing evaluation criteria to select location

• 4 SSCs – PMA would likely be last formed, est. mid-late 2016

Western is competing to have the SSC

• We are committed to ensuring lower cost and higher service ratios for Western, regardless of location of SSC.

• We are actively participating wherever we can, and in helping create the evaluation criteria for selection of location.

• We are actively working to keep a local presence focusing on PMA-specific needs.

• We are making it clear that we are 91% customer funded.• Savings will come back to Western.

Our Commitments