partnering for the future
DESCRIPTION
Partnering for the Future. WIEG Meeting September 16, 2010. Agenda. Key Account Program-Model/Service Review Major Results/Findings What’s New Challenges Opportunities. Key Account Program Model/Service Review. Initiative was sponsored by Senior Management - PowerPoint PPT PresentationTRANSCRIPT
Partnering for the Future
WIEG Meeting
September 16, 2010
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Agenda
Key Account Program-Model/Service Review Major Results/Findings
What’s New
Challenges
Opportunities
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Key Account ProgramModel/Service Review
Initiative was sponsored by Senior Management Used external resource with cross-industry
expertise in customer service 18 – month initiative
Process Review Best Practice Research Discussions with Top Quartile Utilities TQS Survey Results Identification of Gaps
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Key Account ProgramMajor Results/Findings
Single/Primary Point of Contact
Responsible for the entire customer relationship
Number of customers assigned to each Account Manager varied, but We Energies was too high
Utilization of Business Call Centers
Outage Reporting – provide options
Management Reporting
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What’s NewRedefined Key Accounts Program
Redefined Key Accounts Defined customer selection criteria Focus on Commercial/Industrial customers Reduced number of assigned customers Realigned support for Government accounts
Redefined Roles/Responsibilities Developed Customer Service Model for C&I –
Account Manager is Primary Point of Contact Integrates Key Account Managers, Customer
Operations and Customer Service – “Team Concept”
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What’s NewJointly Developed Customer Plans
Conduct joint planning sessions on an annual basis – implementing over an 18 month period
Results of the meeting are documented and agreed to by customer Identify key areas of focus Level and frequency of communication Method of outage notification
Periodic updates between customer and Account Manager
What’s NewExecutive Partnership Program
“To enhance our relationships with key customers through a
partnership with We Energies’ Senior Executives”
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What’s NewExecutive Partnership Program Overview
Implemented in 2009
20 customers participate in the program, approximately $250M in annual revenue
7 Executives
Evaluate and grow the program as appropriate
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What’s NewExecutive Partnership Program Objectives
Establish and foster executive level relationship
Core focus is to listen
Help manage complex/unique customer issues as needed
Enhance our understanding of the customer’s business
Ensure we are using every means at our disposal to help support their business
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What’s NewCustomer Activity Report
Weekly report from Account Management group to Executives and Sr. Management
Promotes visibility & awareness
Drives alignment throughout the company
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ChallengesEconomy improving slightly
Improved economic activity in second quarter
Continued strength in iron ore mining, specialty steel and paper production
Rising electricity use in other sectors – most notably metal fabrication, rubber and plastic products, transportation equipment and health care
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ChallengesRebound clearly underway
Electricity use by large commercial and industrial customers
2010 % DifferenceCompared to 2009
April 782 GWh +12.6%
May 832 GWh +15.5%
June 845 GWh +14.8%
Second Quarter
2,459 GWh +14.3%
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ChallengesIndustrial demand still below 2008 levels Electricity use by large commercial and industrial
customers
2010 % DifferenceCompared to 2008
April 782 GWh -12.5%
May 832 GWh -10.7%
June 845 GWh -10.1%
Second Quarter
2,459 GWh -11.1%
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ChallengesPB Credit
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ChallengesPoint Beach Credit – Key Accounts
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Electric Fuel Cost RecoveryWI Jurisdiction
Electric fuel case for 2010 was filed on Feb. 19 Interim relief on March 25 Wisconsin jurisdictional increase of $60.5 Final review expected by year end.
Limited reopening of fuel rates for 2011 filed September 3 Additional $38.4 million increase
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Monitored Fuel Costs vs. Revenue
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2006 2007 2008 2009 2010
$(00
0) Monitored Fuel CostWisconsin Jurisdiction
Wisconsin RetailSales Revenue
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OpportunitiesNew Fuel Rules
New fuel rules sent to legislature on August 30, 2010 +/-2% dead band, or +/- $16 million in 2011
Escrow costs outside the dead band
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OpportunitiesAct 141
We Energies customers contribute 1.2%, approximately $45M on an annual basis
PSC can request additional funding through the Joint Finance Committee
If Joint Committee on Finance does not request a hearing within 10 days of receipt of request (90 days to conduct hearing), increase in funding is automatically approved
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OpportunitiesSpecial Contract Overview
Statute requirements Customer must receive market benefits Customer must take market risk Utility customers that are not subject to the rate must not be
harmed Utility shareholders must not be harmed
Special Contract Design Customer pays normal tariff for “historical” load Customer pays marginal cost for incremental load
PSCW approval required Strict adherence of statute Economic Benefit
Jobs New Load
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Questions