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Monitoring Organizational Performance for Utility Governing Boards
APPA National ConferenceJune 16, 2009Carl A. Mycoff
A headhunter discussing Monitoring Organizational Performance for Governing Boards?
It’s what we do.
Driving Metric: Stakeholder Value
Quantitative
Qualitative
It’s first and foremost about the money, but CEO’s can just as easily lose their jobs over tree trimming.
Quantitative: Balancing conflicting forces
PricePower SupplyFinance
ReturnCustomer relationsEconomic DevelopmentStaff Development
Price competitiveness
Regional
National
Global
Power supply: THE largest
component of price
Large and vertically integrated
Distribution/joint action agency
- All requirements
- Project
Financial condition• Debt/equity: Rating agency ratings optimized to minimize interest expense.• Life of asset• Customers deriving benefit• Debt service impact on price • Where should the equity reside? - Distribution - Joint action
ReturnCash transfer to general
fund; Payment- in-lieu of taxesShared service allocationFree servicesStreet paving
San Antonio City Public Service (CPS)
Annual electric revenue $1.2 BillionResidential Revenue $672 MillionResidential Revenue under AEP $882 MillionRevenue Saving $210 MillionTransfer to the General Fund $245 MillionFranchise Fee and Property Tax $57 Million
CPS customer residents save annually $398 Million
Tacoma Public Utilities
Annual Retail Electric Revenue $267 MillionAnnual Retail Electric Revenue Under
Puget Energy $404 Million
Retail Revenue Savings $137 Million
Gross Revenue Tax $30 Million
Support Service Allocation $6 Million
Franchise Fee and Property Tax $13 Million
Tacoma Public Utility Customers save annually $160 Million
Customer Relations
Customer satisfaction
Reliability; CAIDI/SAIDI
Power quality/price
Chip manufacturer/irrigator
Economic Development
Build load and revenue- Load factor- Incremental cost to serve.
Mitigate customer dependence
Local job creation
Tax base
Staff Development
Turnover
Successor development Internal promotions Cost/benefit
Safety OSHA Recordable Lost time
Unions Grievances Arbitrations
Quantitative and Qualitative factors
Green resources: College/capital city or coal mining town Subscription rate/premium price
Energy efficiency:
Community culture: High tech/packing house
Staff impact on community relations:
Local hires/market compensation forces:
Qualitative Factors
Relationships/Communication: NO SURPISES
Governing body
Customers
Staff
Joint venture partners
Community
Legislature, administration, and regulatory
Questions?