public power magazine - may/june 2016

N E X T G E N E R A T I O N

AMERICAN PUBLIC POWER ASSOCIATION • VOLUME 74/NO. 3

PUBLIC POWER

2 Public Power /May-June 2016

WE ARE TAKING ENERGY FORWARD. SOLAR IS HOW WE GET IT DONE.First Solar is the global leader in PV solar energy solutions, scaling from community solar to some of the largest PV plants today. With over 10GW installed worldwide, including more than 3.5GW in North America, we deliver solar energy that is reliable, bankable and a grid-friendly addition to your energy portfolio. By integrating state-of-the-art technologies, services, and expertise across the entire solar value chain, First Solar maximizes the value of its customers’ PV investment while minimizing their risk.

Partner with the global leader in PV energy.Visit firstsolar.com/APPA

800411_FirstSolar.indd 1 04/04/16 8:09 PM

PublicPower.org / #PublicPower 1

795397_Black.indd 1 12/02/16 11:53 pm


North America’s Most-Attended Solar EventMoscone Center, San Francisco

Register now!

Hear it here first! Be part of the first major U.S. solar event in 2016Join 18,000 peers, visit 550 exhibitors, attend 60 sessions & workshopsGain insight: PV, energy storage, smart renewable energy & solar heating/cooling

co-located with

00012_ la .indd 1 07/03/16 9:00


INQUIRIES

May-June 2016 CONTENTS#PublicPower @PublicPowerorg

Search for American Public Power and connect with us

FEATURES

8 The Power to AdaptPublic power utilities are building the next-generation workforce by embracing diversity and creating new company cultures.

17 SPONSORED CONTENTEmpowering Customers Through Knowledge and Technology

A utility customer service manager explores NISC’s integrated tools that provide customers access to their data and allow seamless communications.

18 Customer Is KingPutting the customer at the center of the utility business model is the ticket to a new era of service.

28 From New Technologies to the New FrontierFind out how utilities are merging savings and customer service with new technology to usher in a new era of energy efficiency.

42 The New Energy Efficiency: Data and EngagementLearn why energy efficiency is more important than ever with an instructor from APPA’s new Energy Efficiency Management Certificate Program.

44 Preparedness Culture in the Digital AgeUtilities are combining technology with the culture of preparedness for better disaster response.

48 Step Up to the Mic With Lt. Gen. Russel HonoréGet in front of crisis communications with APPA National Conference speaker and Hurricane Katrina disaster response leader Lt. Gen. Russel Honoré.


COLUMNS4 Public Power Lines by Sue Kelly

50 Washington ReportPublic Power’s Next-Generation Priorities

54 Going PublicMix It Up: Customers Are Channel Surfing

55 SecurityProtect Customers From Next-Generation Scams

56 Last Word

[email protected] • 202-467-2900

SUBSCRIPTIONS [email protected] • 202-467-2900

[email protected] • 352-333-3443

Advertising for APPA publications is managed by Naylor LLC. Public Power (ISSN 0033-3654) is published six times a year by the American Public Power Association, 2451 Crystal Drive, Suite 1000, Arlington, VA 22202-4804. © 2016, American Public Power Association. Opinions expressed in articles are not policies of the association. Periodical postage paid in Arlington, Va., and additional mailing offices.For permission to reprint articles, contact [email protected]. Postmaster, send all address changes to:American Public Power Association2451 Crystal Drive, Suite 1000Arlington, VA 22202


@CEOPublicPower • blog.PublicPower.org

Individuals, corporations, associations, and even governments are being asked to do more with less. More products, more services, and more programs with less money, less people, less time — you know the drill. Electric utilities — and our customers — are no exception.

In an article in Forbes magazine, leadership coach Rodger Dean Duncan points out virtually everyone, everywhere is being given the challenge to do more with less and that will be an ongoing mantra far into the future. But the good news, he says, is that the “do more with less” challenge presents a golden opportunity for smart, proactive people. It simply requires strategic sorting of priorities.

Energy efficiency is a classic example of doing more with less. As consumers, we depend on electricity more than ever before, but we want to use less of it — for a variety of reasons — and pay less for it. And today’s energy-efficient homes, appliances, devices and even communications and marketing are increasingly geared toward meeting that need. Public power utilities, beholden only to customers and community owners, have a track record of being responsive to customer needs. Customer satisfaction is our strategic priority.

Many of our utilities have offered a variety of energy efficiency programs to help customers save energy and save money. Of course, in the strategic sorting that Duncan talks about, environmental stewardship is a public power priority too. And energy efficiency is an important element of helping to reduce the carbon footprint of our utilities and our customers.

Take the utilities in this issue’s case studies, for example. Some are using one of public power’s most popular ways to reach utility customers — bill stuffers — encouraging customers to take advantage of new, smart technologies that change behaviors, aggregate data, reshape the load, and save money and kilowatt-hours.

It’s not even always new technology. Old technologies made new, like water heaters, can help reshape a community’s energy load or serve as batteries for backup power. This is the kind of

Doing More With Less: The Public Power WayBy Sue Kelly • President & CEO, American Public Power Association

P U B L I C P O W E R L I N E S

innovation that public power communities need to share with each other as we work toward a new business model.

Energy efficiency is just one piece of the puzzle. Customer preferences and technologies are changing every day.

The American Public Power Association is here to help its members prepare, participate in and weather the transition into the next generation of utility service. One way we’re doing that is through Public Power Forward, a strategic initiative that combines research, advocacy, education, and new tools and technologies to get you ready for this new era.

APPA has partnered with E Source, an energy efficiency research firm, to bring members best practices, case studies and toolkits to operate and market demand-side management programs.

We also recently revamped our Energy Efficiency Management Certificate Program, with the help of the Vermont Energy Investment Corporation, to incorporate new trends and tools that public power utilities need to know about. Read an interview with one of the program’s instructors on page 42.

Remember, APPA can advocate for you and provide an array of tools and guides to help you prepare for the future. However, YOU need to make the decisions. You need to continue to strategically sort your priorities. You need to take a look at your customer preferences, local and state laws and regulations, resources, rates, and business lines. You need to think about how best to leverage the unique advantages you have as a community-owned utility to do more with less. Together, we can move public power forward.


800069_GPS.indd 1 2016-04-14 8:46 AM


LEADERSHIP, ECONOMY, TECHNOLOGYNational Conference & Public Power Expo, June 10-15, Phoenix, ArizonaDon’t miss public power’s event of the year. Tune into the political, economic and technological trends shaping electric utilities. Connect changes in the global and national energy landscape to your public power utility and prepare for the challenges and opportunities ahead.

BUSINESS & FINANCIAL CONFERENCESept. 18-21, San Antonio, TexasA refresher for seasoned professionals and in-depth learning for those new to utility business and administration. Five key tracks – Accounting & Finance, Customer Accounting & Services, Human Resources & Training, Information Technology, and Pricing & Market Analysis.

FALL EDUCATION INSTITUTEOct. 3-7, Seattle, WashingtonIn-depth training courses for all skill levels. Focus on a single topic or spend the week in multiple classes for comprehensive training and networking with peers. Courses in accounting, cost of service and rate design, distributed generation, key accounts, 2017 NESC, and underground distribution systems.

The ONLY Source That Meets All Your Training & Workforce Development Needs

T O P - N O T C H L E A R N I N G A N D N E T W O R K I N G F O R U T I L I T Y P E R S O N N E LExecut ive leadership • Legal • Account ing & f inance • HR & t ra in ing • Engineer ing & opera t ions • C u s t o m e r s e r v i c e • K e y a c c o u n t s • E n e r g y s e r v i c e s • P R & c o m m u n i c a t i o n s • G o v e r n a n c e


PUBLIC POWER LEADERSHIP WORKSHOPOct. 5-7, Seattle, WashingtonOverview of challenges facing public power and the skills and knowledge leaders need to guide utilities through change. Ideal for seasoned, new, and aspiring general managers and CEOs. Learn where the industry is heading and how your peers are handling tough issues such as planning for strategic resources, ensuring a utility’s financial health and performance, managing change, and developing effective leadership styles for the future.

LEGAL & REGULATORY CONFERENCEOct. 16-19, Long Beach, CaliforniaDive into legal and regulatory issues affecting the electric utility industry and the practical legal issues facing public power. The premier event for attorneys, regulatory and compliance managers, and policymakers to network and keep up on hot topics affecting municipal utilities.

CUSTOMER CONNECTIONS CONFERENCENov. 6-9, Nashville, TennesseeConnect with more than 300 public utility professionals to address challenges, find new opportunities, learn about industry trends, and better position your utility and community to succeed. An essential educational and networking event for those involved in: Customer Service, Energy Services, Key Accounts and Public Communications.

WEBINARS• Industry Issues and Challenges Facing Public Power Governing Bodies / May 5• Electric Utility 101: Distribution / May 11• Federal Communications Regulatory Compliance Overview for 2016 / May 12• Regulatory Accounting — Theory and Practical Applications / May 19• Overview of Utility Financial Operations for Board/Council Members / June 2• A Guide to Federal Funding for Broadband Deployment, Adoption and Use /

June 21• Accounting Standards and Reporting Update / June 28

APPA Can Bring Courses to YOULet the best of the APPA Academy come to you. Our in-house training program can bring any of our popular courses to your facility or customize training for staff from any of your departments. We cover utility governance, engineering and operations, safety, accounting, customer service, and more.

Contact Heidi Lambert at 202-467-2921 or [email protected] to plan and book your session today!

T O P - N O T C H L E A R N I N G A N D N E T W O R K I N G F O R U T I L I T Y P E R S O N N E LExecut ive leadership • Legal • Account ing & f inance • HR & t ra in ing • Engineer ing & opera t ions • C u s t o m e r s e r v i c e • K e y a c c o u n t s • E n e r g y s e r v i c e s • P R & c o m m u n i c a t i o n s • G o v e r n a n c e

Register for all events and webinars at PublicPower.org/Events

Email: [email protected]

Phone: 202-467-2900


The Power to AdaptPublic power utilities embrace diversity as they create new company cultures to remain competitive in the changing industry landscape.By Jessica Porter, Contributing Writer


N E X T G E N E R A T I O NThe workforce in the public power industry is changing. Since 2006, the public power industry has experienced a 6 percent rise in employees under the age of 37, with the biggest increase being in employees between the ages of 28 and 32, according to the Center for Energy Workforce Development’s 2015 Gaps in the Energy Workforce Pipeline Survey.

But it’s not just an increase in young people driving changes in the public power workforce. Many companies are working on attracting more diverse employees, including women, African Americans and veterans, to better reflect the communities in which they work.

“How do you attract people to an industry that isn’t a Google or tech startup that’s viewed as a great place to work? You have to figure out how to change the company culture to be more open to diversity, from an age and thought perspective,” said Courtney Polk, corporate performance and profits engi-neer for Omaha Public Power District. “How we get people excited about coming to a utility is related to how we build a culture that people are attracted to.”

The key is in determining what makes younger or minority employees attracted to a company and then what makes them stay with that company for the long haul.

“The younger generation has less orientation toward working in one place for their whole careers. The culture of the generation is one of variety, to do lots of things — and they have interests in lots of things,” said Heidrick & Struggles partner Kay Fuhrman. “They don’t view making moves as risks but as opportunities. The past generations had more of a loyalty to work at one company.”

Part of the problem is the long training period necessary for working in the public power industry. Due to the complex nature of many jobs and the high-risk work environment of others, many employ-ees go through an apprenticeship program that can take years — a time commitment many young people aren’t willing to make.



Since 2006, the public power industry has experienced a 6 percent rise in employees under the age of 37, with the biggest increase being in employees

between the ages of 28 and 32.

“The challenge becomes aligning training

approaches to the mentality of the younger generation,” Fuhrman said. “They want to see two things: that they are moving quickly and have opportunities to advance. They don’t want to wait and they don’t want to have to go through long training programs before they get to actually work on something. They want to be hands-on and have opportunities to advance so if they don’t like the job they can move on to the next thing. They are less patient in the development of their careers.”

Nurturing leadersAt Santee Cooper in Souther Carolina, the utility is proactively building its leaders of tomorrow through programs it has in place today. One of those programs is called STEP, which stands for Shaping Tomorrow’s Energy Professionals.

“About a decade ago, Santee Cooper identified a strong need to focus on training the next generation of utility leaders,” said

Laura Varn, Santee Cooper’s vice president of human resource management. “Like many in the industry, we were facing an aging workforce, and a good number of our utility managers were very close to retirement.”

The program launched in 2007, and 90 per-cent of the first graduating class was in a new leadership role in the next five years, Varn said. So far, the program has helped 126 people in the company develop as leaders and prepare for upcoming opportunities. As a result, the utility has been able to fill vacancies with new leaders who are ready for the job and can dive right in.

“The STEP program has marked leadership, career development and teamwork as top compe-tencies for advancement in the company,” Varn said. “STEP is a strong statement that we want people to grow and develop, and we will provide tools and resources for them. It really has invigo-rated our culture of leadership and growth.”

Today, every member of Santee Cooper’s management team who reports directly to exec-

utive leadership is a STEP class graduate.“Employee leadership development pro-

grams are critical in advancing a company and remaining competitive,” Varn said. “Santee Coo-per’s greatest asset is our people, and STEP has proven its value.”

Culture cultivationEncouraging people to stay with a company long term takes creating a culture better aligned with their interests. OPPD enacted a flexible workplace with flexible hours. Employees can choose to work from home a few days a week or work four 10-hour shifts, as long as they are meeting customer needs.

OPPD also established a program that allows employees to choose a mentor in the company. The employee and mentor then go through a series of classes to learn about OPPD and each other while working on projects to benefit the overall company. Continued on page 15



Putting the Success in Succession PlanningBy Jessica Porter, Contributing Writer

The Sacramento Municipal Utility District began implementing a succession plan this year to avoid major gaps in senior leadership. SMUD created a formal model for succession by conducting research with talent organizations such as Human Capital Institute and CEB Corporate Leadership Council and then developing a model that would work best for its specific needs.

“It’s allowed us to identify where we have potential shortfalls or gaps. We’ve raised awareness of where those gaps are to put plans in place to make sure we’re not waking up and realizing we have a huge gap somewhere in the organization,” said Susan Wheeler, workforce pipeline planning and education relations strategist for SMUD. “We also embarked on a pretty rigorous process of knowledge capture. When someone’s new, we want to make sure they are armed with institutional knowledge and tools to make them successful.”

SMUD gives each senior leader a toolkit that includes a detailed description and goals of his or her position. Then, each person completes an assessment to determine qualities such as overall potential, learning agility, a desire to lead and leadership competencies. Using that information, SMUD is able to evaluate each senior leader and hold career and development planning conversations to determine whether he or she is ready to advance to the next level or from one area of the company to another.

“From there, we have a calibration roundtable where we get all executives together with the assessments and have alignment conversations,” said Laurie Rodriguez, manager of talent management for SMUD. “That way, it’s an objective process versus one individual making decisions on potential and readiness.”

If a senior leader isn’t ready, SMUD enacts a plan to provide him or her with tools and knowledge to prepare for the move in the future. SMUD is working on expanding its succession planning model to include management-level employees as well.

The Grand River Dam Authority in Oklahoma put a succession plan in place that focuses on cultivating a pipeline of skilled workers using internship and apprenticeship programs.

“These two programs came about because of the difficulty we had keeping our line crews fully staffed,” said Chester Rothhammer, superintendent of the power line maintenance department for GRDA. “With these programs, we were able to provide enough trained personnel to maintain reliable electrical service to the GRDA service area.”

The internship program is held in conjunction with the Oklahoma State University Institute of Technology’s High Voltage Lineman Program. At OSU-IT, students learn about high voltage work and theory. Then, they get a more hands-on learning experience by interning for eight weeks at GRDA.

The program also benefits GRDA because the crew and superintendents can determine whether students are able to adapt to high voltage work and are a good fit for the company.


In addition, GRDA implemented an apprenticeship program about six years ago. Apprentices participate in the program for four years to learn about the specific aspects of GRDA line work. During that time, the company gets to know the apprentices to make sure they are well suited for the company.

“These programs benefit us by letting us see their work habits and letting them make sure this is the line of work for them,” Rothhammer said.

Implementing a succession plan to create a qualified workforce pipeline can help public power utilities continually provide reliable service — without having to worry about gaps in valuable trained employees or executive leadership.

789605_TEA.indd 1 11/04/16 9:08 PM


What inspired you to get into public power?I didn’t know a thing about our industry at first. But once you get in, it really grabs you. It’s become part of my DNA — I love what we do, the service we provide, the way we change people’s lives, and the way we affect the economy. Public power is truly public service. Yes, people get paid; but it’s that public service ethos that drives the commitment to the people and economy we serve.

How has being a woman in the industry affected your career?Along the way, I probably did get the benefit of the doubt a time or two for opportunities. But if you get the benefit of the doubt and the door of opportunity is opened, it’s up to you how you handle it. Once you walk through the door, are you staying in the front room, or are you intruding in the whole house? I intruded through the whole house. It’s important to take advantage of timing and opportunity.

What are some of the challenges to being a woman in the industry?The biggest challenge was not in what I said, but in how I said it. It took me a while to recog-nize what I said could be misinterpreted or not heard and that how I said it was important. Women need to be a little more conscious of what they say, how they say it, and how it’s going to be received.

I used to get mad about not being heard, so then I would talk louder. But that doesn’t get you heard; it just makes people think you’re a pain. Now, I do one-on-one follow-ups and spend a little more time articulating the points I was making. I’ve found that the next time I’m at the table and the person I followed up with is there, they seem to hear me more quickly and pay more attention.

How can companies add diversity to their workforce?If you’re in a service-oriented business, your workforce should reflect the communities you serve. Today, there are more women and diverse employees in the industry, but we still have a long way to go.

Companies need to get engaged with diverse leaders in their communities, whether it’s know-ing the businesswomen in their area, and the leadership of organizations representing people of color or simply by recruiting in more diverse communities. It’s important to build actual relationships with those pipelines.

But it’s also about word of mouth. If someone has a bad experience with a company, they will tell the very people you want to recruit. You want your workforce to say positive things about your company by supporting them, acknowledging them and giving them challenging work.

What’s the key to success for any person in the power industry?If you’re not taking initiative and doing self-development, you may not get opportunities or be ready for an opportunity if it comes along. If you’re not mobile, you also may lose opportuni-ties. It’s important to let people know what you aspire to do. A lot of the time, no one knows what people aspire to do. If you don’t tell them, you won’t have any helpers in your aspira-tions — and we all really need those mentors and helpers.

Reflecting the Community You ServeBy Jessica Porter, Contributing Writer

Anita Decker is a 36-year veteran of the

power industry and executive director of

the Northwest Public Power Association.

During those 36 years, Decker has held

a variety of positions with companies

of all shapes and sizes in the industry.

The American Public Power Association

sat down with Decker to discuss her

experience in the industry, as well as how

being a woman in a historically male-

centric environment affected her career.


“People learn a great deal about our business through the program, which makes them better and more productive employees who are thinking companywide,” said Mart Sedky, division manager of human resources for OPPD. “The projects they do often are meaningful and very beneficial to company, including creating job shadowing programs and financial learning programs.”

Many companies also create employee resource groups, known as ERGs, which bring together employees of similar backgrounds. “If you create an ERG for military veterans, for example, there’s automatically a place where they have people they feel comfortable asking questions or for help,” said Ann Randazzo, executive director of CEWD. “Having an organization you can go to and feel welcome makes a huge difference.”

OPPD has five ERGs — the Society of Engineers, Young Professionals Group, African American Network, Women’s Network and North American Young Generation of Nuclear Engineers — which help cultivate ideas from all types of employees.

“Diversity of thoughts and ideas helps us make better decisions as we move through the work we do,” Sedky said. “It gives us the opportunity to push and challenge each other to make sure we’re all doing our best thinking. We use that to drive good decision-making as an organization and it helps us provide better customer service.”

OPPD developed the ERG for young professionals in 2007 to help attract, retain and develop younger workers. Over the years, the group has evolved to establish programs and processes to make OPPD a better place to work.

“We’ve been championing in innovation. Employees — young, new and old — have ideas but it can be hard to get them up through the layers of the company,” said Polk, chair of the Young Professionals Group. “We put to-gether a team to create an innovation initiative, so employees have a voice in new ideas OPPD goes after. It’s been exciting that we’ve gone from being just a social group to also figuring out how we can be a seat at the table and have a voice.”

Early this year, OPPD launched a new ERG for African American employees to spread the importance of diversity, according to Maurice Kimsey, president of the African American Net-work. The group has hosted events at the local black history museum and celebrated Black History Month in February by featuring a dish representing African American culture in vari-ous regions of the United States.

Continued from page 11

0 32_ l .indd 1 /11/16 9:51


“Any kind of minority ERG is important to any business, for diversity of people and thought,” said Kimsey, who’s an engineer and distribution planner for OPPD. “There have been studies that show when companies em-brace diversity, they can find better solutions for the customers they serve. When we look at new technology like smart grid, expanding our minds to be receptive to new ideas and solu-tions can help us move forward as a company.”

Educate and communicate At OPPD, employee resource groups help attract new workers, as group members often act as ambassadors for the company. However, the education requirements for the average utility worker have changed over the years, making it hard for some companies to find qualified workers.

“It wasn’t that long ago when we could hire someone out of high school to go into a skilled technician position,” Randazzo says. “What we see now is the education requirements have increased.” Most job positions now require at least a certificate or associate’s degree.

In response, CEWD is pushing career awareness to target potential future employees early and make them aware of the education requirements for jobs in the industry.

“Companies are building partnerships at the elementary, middle and high school levels to make sure students get skills they need,” Randazzo says. “It’s important to build career awareness and clear communication about what requirements are needed”

Thirty states now work together in energy workforce consortia, which are programs to ed-ucate and train potential employees on various

aspects of public power. The consortia help to create a state or regional supply chain of edu-cated workers.

“It’s difficult for one company to build a pro-gram and then hire all the students, so we need to work together,” Randazzo says. “It’s about balancing the supply and demand.”

With a higher awareness about what it takes to enter the industry, as well as companies cre-ating cultures that attract, retain and develop employees from all backgrounds, the public power industry is changing to better reflect the communities in which it works.

“It’s all about ways we can improve service and understand customer needs,” Randazzo says. “It means being able to understand what’s going on in the community — and you can’t do that without a diverse workforce.”

7 50 2_ an a.indd 1 11/0 /16 12:35 pm


I answer the phone with a simple question every day: “Hi, how can I help you?” The responses I receive to this question are not so simple, however, and sometimes many unique and unexpected discussions ensue. In my world as a customer service manager, knowledge is power, and given today’s technology advancements, communicating this knowledge to customers via multiple channels is not only paramount but absolutely expected. I need to quickly and accurately answer questions, but I also need to proactively notify customers of key events, account status changes, and more. Most importantly, I need integrated tools that provide customers access to their data, so they can review their account details anytime, at their convenience, and communicate with me through channels of their choice.

We use National Information Solutions Cooperative (NISC) iVUE® utility enterprise software and service solutions for customer care and billing, accounting and business, and engineering and operations. Along with these core solutions, we also use a variety of NISC’s fully integrated solutions, like SmartHub® and Messenger that offer us enhanced customer engagement functionality.

SmartHub is a customer-facing web portal that provides customers with convenient account access and two-way communications online or through mobile devices. SmartHub is a great tool. Customers can not only view their consumption and billing history, but also manage payments, notify the utility of account and service issues, and view their AMI interval or AMR usage. SmartHub provides our customers with details they need to make smart energy savings and account management decisions. For example, SmartHub graphically displays historical temperature days against historical consumption over a rolling pre-defined period of time. This type of data presentment empowers our customers and greatly reduces our call volumes while increasing our transparency.

SmartHub functionality also includes Messenger. With Messenger, NISC pairs the power of SmartHub’s data presentment with the ability to

analyze this data and proactively communicate with customers. Messenger is a cloud-based message delivery system. Through SmartHub, customers have the ability to choose from a variety of communication sources, including email, text, and push notifications, ensuring that we deliver the right messages through the right channels in a non-invasive way. As a manager, I can customize messages to target specific customer groups, as well. For example, I can send texts and/or emails to delinquent customers only, reminding them that their bill is past due, and providing details on all the methods they can pay their bill and when service will be interrupted for nonpayment. Customers can pay their bill anytime via

SmartHub and other payment channels, like Kiosks, and MoneyGram, and even take advantage of NISC’s integrated PrePaid Metering functionality. This communication and technology not only improves our customer relationships, but also greatly reduces disconnects and relative call volumes.

These are excellent tools on their own, but the true power of NISC’s iVUE solution is integration. SmartHub and Messenger are seamlessly integrated into the NISC core solutions, which means no duplicate data entry and absolute data integrity. Customers communicate with me using these technologies, and I am assured that their information is accurately captured in iVUE.

So, when I am asked, “Why is my bill so high?” I can answer the question immediately and direct that person to SmartHub for a graphical representation of their consumption history. If I am asked, “Why is my power turned off?” I can reference our utility’s multiple notification attempts via mailed notice and text/email messaging that their bill was past due. If I am asked to send a text when the bill is past due I can provide this service by helping that customer create a Messenger profile that is customized to their specific needs.

Knowledge is power, and having the right technology helps our staff and our customers grow together.

Visit www.nisc.coop for more information.

SPONSORED CONTENT

Empowering Customers Through Knowledge and Technology

“Why is my bill so high!?”

“Why was my power

turned off!?” “Why can’t

you just send me a text

when my bill is past

due!?”


Customer Is King Giving customers

next-generation service means putting them at the center of it all.

By Housley Carr, Contributing Writer


Public power utilities of all sizes are putting more effort than ever into keeping their custom-ers satisfied.

“Our customers are our owners, and if we’re not keeping them happy we’re not doing our job,” said Melissa Barnes, human resources manager at Marshfield Utilities, a 112-year-old, 13,000-customer municipal electric utility in central Wisconsin.

Barnes admitted that before she joined the utility’s staff a few years ago she was one of the many Marshfield Utilities customers who had what she called a neutral relationship with the utility. “The lights stayed on. I paid my bill. I real-ly didn’t give it much thought.”

More recently, though, Barnes has come to understand the importance of a two-way

relationship between a utility and its customers. “We need to keep our customers informed about what we offer and what we’re doing in the community, and we need to find out what they expect from us, and how good of a job we’re doing,” she said.

To assess the utility’s own job performance, Marshfield Utilities recently undertook a custom-er satisfaction survey — its first in several years, and far more comprehensive than the last one, Barnes said. The results are still being tabulated, she said, but are sure to help the utility under-stand what improvements it still needs to make.

Steve VanderMeer, senior vice president of planning and marketing at Hometown Connec-tions, APPA’s utility services subsidiary, said that customer expectations from their electric utility and other providers of essential services have

been changing rapidly. Just a few years ago, he said, almost all utility/customer interactions oc-curred during 8-to-5 office hours.

“Now, everyone expects 24/7 access” — the ability to sign up for service, pay a bill, or ask a question whenever it is most convenient for the customer. And in addition to access by telephone, many customers expect to be able to interact with their utility via computer or even smartphone. Tech-savvy customers also have growing expec-tations about being able to receive email or text notifications about the estimated duration of a power outage or about higher-than-normal power usage.

Another factor in the evolving relationship be-tween utilities and their customers, VanderMeer said, is that while utilities maintain monopoly

status, there are an increasing number of ways in which customers can take a more active role in managing their energy use — even in generating their own electricity with rooftop solar panels, diesel, or natural gas-fired microturbines.

Since early 2015, Hometown Connections has been working with GreatBlue Research to help public power utilities, joint action agencies, and other public power organizations gain a clear-er, deeper understanding of what their custom-ers want and expect from their utilities in this fast-changing environment, and also help utilities act on what they learn.

Tobias Sellier, communications director at APPA, said that a recent survey of 1,600 public power customers — half questioned online and half in personal interviews — found that the vast majority rated their utility favorably when

compared with their natural gas, telephone, cable and internet providers. Still, he said, many utilities “are not good at tooting their own horn” and as a result, about one-quarter of customers polled were not aware their utility was, in fact, publicly owned.

Acknowledge diversityGreatBlue CEO Michael Vigeant said that when assessing customer satisfaction, it is important to remember that all customers are not alike — far from it, in fact. For example, he said, residential, commercial and industrial customers have different needs and expectations from their utility, with larger customers typically requiring more regular interactions with utility staffers.

There also are major differences between

younger and older customers, Vigeant said. “Younger customers are much more likely to engage digitally” — that is, via computer or smartphone.

“You also have to remember that not all of your customers are English-speaking,” said Suzanne Hartman, communications manager at the Chelan County Public Utility District in Wenatchee, Washington. She said that about 30 percent of the population served by the 50,000-customer utility is Hispanic, and that while some of these customers are bilingual, many are not.

To make it easier for Spanish-speaking cus-tomers of the Chelan County PUD to interact with the utility — and to optimize their satisfac-tion with the utility — the utility’s recently updat-ed website is now fully bilingual.

“Now, everyone expects 24/7 access” — the ability to sign up for service, pay a bill, or ask a question whenever it is most convenient for the customer. And in addition to access by telephone, many

customers expect to be able to interact with their utility via computer or even smartphone.


How Customers Rate Their Public Power UtilitiesThe American Public Power Association conducted a national survey of 1,600 public power customers between December 2015 and January 2016. The intent was to gauge customer satisfaction levels, utility awareness, and service preferences. Meena Dayak, vice president of integrated media and communications, and Tobias Sellier, director of media relations and communications at APPA, share survey highlights.

What they think

Just over 66 percent of public power customers positively rate the quality of customer service they receive from their electric utility. Electric utilities rank just a little higher than gas, water, wastewater, and phone companies — and significantly higher than cable and Internet companies — in customer service.

There is considerable difference in customer satisfaction ratings across demographics. While nearly 78 percent of people over 55 years of age give their utility high ratings, only 54 percent of customers under 55 rate their electric utility positively.

APPA is concerned at customers’ lack of knowledge about the nature of public power itself. At least 30 percent of public power customers think their utility is driven by a profit motive. Up to 28 percent of public power customers think their utility is privately owned, and another 35 percent think it is government owned. Only 1 in 5 customers under 55 know that their utility is community-owned and is not-for-profit.

Overall, the over-55 population is a little bit better informed about the structure and unique benefits of public power. But there is a knowledge gap among all demographic groups that needs to be addressed so customers can regard their utility as trusted energy advisors and engage more.

What they expect

The APPA survey did not yield any surprises in terms of what customers expect of their utility — low rates, reliable service, and responsive customer service. Customers under 55 rank low rates higher while those over 55 place more store by reliability. Three out of four customers under 55 believe their electric utility meets these expectations most or even all of the time. Most customers think the rates they pay for electricity are reasonable.

Close to 60 percent of customers under 55 think their electric utility responds promptly to customer questions and complaints, maintains reliable infrastructure, and communicates with customers. But only half of this customer segment believes their utility helps them “use less electricity.”

Customers predominantly want information from their utility on electricity rates and how they are determined. And they want to be kept informed about outages and restoration. A little over 30 percent want to be educated on energy issues. And a far smaller number want to know more about how their utility operates and the finances, governance, etc.

Evolving preferences

Nearly 9 in 10 public power customers want their local utility to provide energy from renewable sources like sun, wind, and water.

More than half of customers surveyed want to learn more about energy-efficient appliances, energy audits, and installing solar power in their homes. There is growing interest, especially among the under-55 customers, in smart thermostats, smart meters, and other aspects of grid modernization and tailored services.

APPA is eager to translate the information gleaned from this survey into action and to help member utilities raise awareness of public power in their communities and nurture informed and engaged electricity customers.


Hartman said that the PUD also is in the midst of conducting a customer-satisfaction survey; the results will be in soon. She said that another approach the utility uses to improve customers’ satisfaction is to examine the steps customers go through in typical interactions with the utility — signing up for new service, questioning a bill, etc. — and then see if there are ways the processes can be streamlined and made easier.

“It can be a real eye-opener” when a staffer puts himself or herself in the place of a customer, Hartman said.

Kady Darwich, energy management representative at New Bern, North Carolina’s 27,000-customer municipal utility, believes education is an essential element to ensuring customers are satisfied.

Among other things, she said, the utility has a program to help customers understand the relationship between weather and electricity

use. “Most customer complaints about their bills come in the winter and summer,” Darwich said, adding that the utility’s programs help customers understand that if they make even modest temperature adjustments to their heating or air conditioning systems, they can realize substantial savings on their electric bills.

New Bern’s utility also has been focusing on students — or, as Darwich refers to them, “future customers … It’s amazing how thoughtful [the students] were” on energy conservation and other electric-related issues, she said.

Further, New Bern publishes separate newsletters for residential and commercial customers with articles aimed at educating them about rates, energy efficiency and other topics, all with the aim of improving customers’ understanding of what their utility does and what customers themselves can do

to manage their electric use. With knowledge comes understanding, Darwich said, and with understanding come higher levels of customer satisfaction.

Finally, she said, New Bern is developing a key accounts program that will pair the utility’s staffers with large commercial and industrial customers to keep them informed about rates, energy efficiency programs and other utility initiatives, and to address customer questions and concerns as quickly as possible.

Communication is keyKey account managers already are a mainstay at many larger public power entities, which view high levels of service to big commercial and industrial customers as a prerequisite to big-customer satisfaction.

“We have 10 account executives that serve 220 key accounts,” said Jim Krist, manager of key account sales and service at the Omaha

793120_EDF.indd 1 2016-04-12 11:59 AM


Understanding the Customer of the Future

Like the American Public Power Association, the Edison Electric Institute has been working to help its member utilities improve their customer service, reliability, rate offerings and, with all that, customer satisfaction. To learn more about what EEI has been doing on the customer satisfaction front, we talked to Stephanie Voyda, EEI’s executive director of communications.

How has EEI been helping its members address the issue of customer satisfaction?

Today our industry is in the midst of a profound transformation, which is being driven in large part by new technologies, shifts in public policy at both the federal and state levels, and changing customer and market expectations. EEI’s member companies are adapting to and leading enormous change right now, while maximizing the value they provide customers.

With the approval of our board of directors, EEI launched a broad, national education and advocacy initiative in January to tell our story — the story of how our industry is creating and delivering the energy future customers want and expect.

This initiative is focused on the work companies are doing to make the power grid more dynamic and more secure, provide clean energy, and create the innovative energy solutions that customers want. These three areas are at the center of our vision for the future, and EEI’s members are laser-focused on customers and the benefits they will derive from the changes underway.

Has EEI conducted a recent survey of customer satisfaction?

While EEI’s member companies do their own customer satisfaction research, we commissioned a national benchmarking survey of 3,000 U.S. residential customers (18+) that was conducted in September 2015. Our goal through the research was to measure residential customer attitudes toward our industry as a whole (not specific companies) and to identify potential future focus and action that offer the greatest potential for customer acceptance and satisfaction. We segmented the data into four regions, and the study was fielded by mirroring census data on age, gender and regional characteristics of the U.S. population.

Has the issue of customer satisfaction taken on increased significance in recent years as customers (in some places) have been given the right to select their electricity suppliers, and as customers have an increasing number of options for generating electricity (rooftop solar) and managing their electric use?

What our research reinforces is that the way customers engage with electricity is changing. And, when we compare customers’ present expectations with future expectations, the picture becomes very different. When we asked customers who was most likely to deliver the next “big idea” in energy — or the energy future they want — three out of four customers clearly and singularly picked electric power companies. This finding goes back to our core strength and value: We are relied on to deliver. That is what people believe about us. Today we are focused on leading the change that customers want and becoming the industry that consumers rely on.

What are the most important things utilities can do to increase their customer satisfaction levels?

Customers see that energy is changing, and, as an industry, we need to continue to demonstrate that we are leading that change and delivering greater value. It’s also important that we tell our industry story in a way that focuses on the benefits that customers are getting from the changes we are making.


Public Power District, a large Nebraska utility.Krist said the account executives are so

hands-on that their annual energy reviews of key accounts are actually conducted every six months or so, all with the aim of ensuring that the customers under their care are operating as efficiently as possible and are on the most appropriate rate.

OPPD’s account executives meet with key account customers “based upon the customers’ schedules and needs,” not the other way around, said Krist. He said this personal attention has resulted in customer satisfaction levels approaching 100 percent, despite the rate increases that OPPD — like many other utilities — has had to implement in recent years due to tightening environmental regulations.

The effort of Krist’s key-accounts team

helped give OPPD the top spot among mid-sized Midwest utilities in J.D. Power & Associates’ 2016 Electric Utility Business Customer Satisfaction Survey, which measures satisfaction among business customers of U.S. utilities serving more than 25,000 commercial and industrial customers.

Jeff Conklin, senior director in J.D. Power’s energy utilities and smart energy practices department, said that overall customer satisfaction is considered across six factors: power quality and reliability, corporate citizenship, price, billing and payment, communications, and customer service.

“In our surveys, we take customers through the experience with the service provider, in this case an electric utility,” Conklin said. “We ask about things like service interruption — how

long did the interruption last, were they kept informed through the restoration process.”

All of the questions, he said, are aimed at determining whether the customer believes he is valued by the utility in question. “Communication is key … The best utilities have become much more proactive with alerts and notifications, both in the billing category and the outage category.”

For example, Conklin said, a customer may opt to receive reminders that a bill is nearly due, or that the customer’s monthly electric use is close to reaching a usage or spending threshold. “Utilities also have been doing a much better job keeping their customers informed about what they’re doing, and what programs and services they have available.”

79311 _ n n .indd 1 3/27/16 12:31 7 703 _ n .indd 1 2/13/16 1:31


Keeping Customers Happy 7 EASY STEPSGood customer service means different things to different people, but there’s a quality baseline that guarantees your utility will be successful.


1 2 3

7

4 5 6

ResponsivenessStrong, effective response to a poor customer service experience is one of the greatest factors in customer loyalty. When things go wrong, it is critical you respond effectively.

ChoiceYour customers have multifaceted needs and expectations — understand those needs and provide options. Different customers may need different rates, bill pay methods, or channels of interaction.

Ease of UseThose choices don’t mean much if it’s not clear how to take advantage of them. Information and materials for customers must be clear and communications channels must be easy to use.

AccessWhether it’s through an app or on the phone, customers expect to be able to reach you 24/7.

TransparencyLike in any relationship, open and honest communication fosters trust and commitment. Many public power utilities publish their rates online, and some go further to compare rates with neighboring utilities.

Empathy and RespectThe customers you see the most are likely those who have a need or problem. You can’t be expected to always make concessions for customers, but neither should you be anything less than respectful.

Empowerment Frontline problem-solvers need the right skills and the ability to act on them. Empower tem to take ownership and resolve issues.

Learn more about good customer service in APPA’s handbook, Customer Service: Building a Strong Infrastructure for Your Utility, available from PublicPower.org under Store.


Concrete Solutions from the StressCrete Group

784403_TheStresscrete.indd 1 4/12/16 1:10 AM

806337_Hendrix.indd 1 4/12/16 12:46 AM

The Value of

EXPERIENCEEXPERIENCEWe have been building long-term

[email protected]

throughout North America. Founded in 1923,

infrastructure needs of today. We have been recognized with E. I. DuPont Safety Excellence Award and are a founding member of the

injuries, and illnesses in the electric line

Throughout our long-standing history, our

you to learn more about how our safety,

793122_ nk l .indd 1 /12/16 :51


The Value of

EXPERIENCEEXPERIENCEWe have been building long-term

[email protected]

throughout North America. Founded in 1923,

infrastructure needs of today. We have been recognized with E. I. DuPont Safety Excellence Award and are a founding member of the

injuries, and illnesses in the electric line

Throughout our long-standing history, our

you to learn more about how our safety,

793122_ nk l .indd 1 /12/16 :51


Energy efficiency, for customer and utility, means saving energy and money. But many customers may think they’re already participating to the fullest, while some customers may think their utility doesn’t have options for them. The next era of energy efficiency programs is bringing it all together.

By Elisa Wood, Contributing Writer

From New Technologies to the New Frontier


As technology improves, customers and utilities alike can save energy in ever more sophisticated ways. It’s more than just swapping incandescent bulbs for CFLs for LEDs. Add lighting controls and utilities can pinpoint when, where and how the lights are used to avoid waste.

But the new frontier in energy efficiency isn’t just about replacing old technology with new, said Tim Stout, a senior fellow at E Source, an energy research and advisory firm. It’s about reaching customers who haven’t participated in the past.

Public power has a distinct advantage here. Not remote corporations but often inte-gral parts of the community, public power utilities know their customers well. Smaller businesses represent a key segment that has been harder to reach, Stout said.

“Small to medium businesses haven’t got the attention that large businesses have,” he says. “They have to be treated more like residential customers. In mom-and-pop stores that don’t have the ability or resources to really focus on energy efficiency. It’s helpful to have a soup to nuts arrangement where utilities make recommendations and do the retrofit so customers don’t have to find a contractor.”

It’s easier to reach these customers in states that brand their energy efficiency pro-grams, Stout said. Customers feel comfortable about participating in programs that sound familiar — and about recommending the service to friends and neighbors.

“Branding is the biggest step forward in terms of innovative marketing,” he says. “A brand like Energize Connecticut sticks in one’s mind.”

Several public power utilities are at the forefront of the new trend. Here’s how they are aggressively marketing their energy efficiency and renewable energy programs.


CASE STUDY

Friends Can Get You in the DoorBURLINGTON ELECTRIC DEPARTMENT, VERMONT

It’s not easy convincing those who live in small apartments to pursue energy efficiency. This is especially true when they use so little electricity that their cell phone bill is usually higher than their electric bill.

But the Burlington Electric Department is figuring out how to get in the door to talk to these hard-to-reach customers thanks to a friendship with the local gas utility, Vermont Gas Systems.

The two companies decided to team up to offer a total program for owners of multi-unit residential rental units. Called Energy Champ, it is affectionately named after Lake Champlain’s version of Nessie, the Loch Ness Monster.

Burlington is a college town and 60 percent of BED’s residential customers live in rental housing. About a third of the units change renters annually, giving renters little incentive to make energy-efficient improvements. Building owners, too, have little incentive since the meters are installed at the apartment and not the building level. This leaves the renter, not the owner, responsible for energy bills.

The program offers a 75 percent incentive for thermal upgrades. Customers take notice of the incentive because most heat with natural gas. So their heating bills — unlike their electric bills — tend to be high.

When Vermont Gas Systems visits the customer, BED tags along if it appears the building is using more electricity than is normal. BED then checks for inefficiencies and offers advice and fixes, such as LED screw-in bulbs, appliance power strips, and $200 rebates toward an Energy Star refrigerator to replace an old model.

Begun in June 2015, the program was an overnight success, according to Chris Burns, BED’s director of

energy services. The companies had hoped to attract 50 customers, but almost immediately received applications for 100 audits. As of early March, they had weatherized 25 buildings and were in the process of completing another 20.

Stats

• Goal: Total savings of 34,276 CCF of natural gas, across 100 buildings.

• Budget: $475,000.

• BED is not anticipating a great deal of kWh savings at this point, as the average monthly usage per apartment is only about 300 kWh. However, BED is offering LED screw-in bulbs and appliance power strips where appropriate. They are also identifying old refrigerators and offering the property owner a $200 rebate to replace with an Energy Star unit. If there is a common area electric meter, BED offers the owner incentives for common area lighting, laundry equipment, etc., as appropriate.


CASE STUDY

Shedding Load, Three WaysROCKWOOD ELECTRIC UTILITY, TENNESSEE

Rockwood Electric Utility in Tennessee uses three programs to shed its load and reduce its monthly peaks — distributed voltage reduction, direct load control for residential customers, and a large-customer load reduction in partnership with EnerNOC.

Bill Musrock, a system engineer with Rockwood, said the utility has been using its residential program for about three years and has about 300 of its more than 11,000 customers participating.

The utility got the most participation in the program by employing bill stuffers, Musrock said. Rockwood first advertised the residential load shedding program in the local newspaper, but growth was slow. Interest picked up a little by word of mouth, he said, but the biggest boost came when the utility put information in its customers’ bills.

Customers must meet certain criteria to participate — they must use at least 1,000 kilowatt-hours in three out of the four summer months, Musrock said. Participants will see a reduction in their bill, while the utility gets the option to turn off hot water heaters during peak demand.

Rockwood has implemented load shedding programs in collaboration with its wholesale power provider,

the Tennessee Valley Authority. TVA sends the utility a monthly bill, and Musrock tracks how much load the utility has been able to reduce through its load shedding programs.

Distributed voltage reduction, also called conservative voltage reduction, has been the workhorse, saving Rockwood kilowatts frequently. “We can run it anytime, and the customers don’t notice,” Musrock said. “It’s like a virtual power plant in a way, because we can reduce the load on our lines, and we’ll do that four or five times a week, depending on what the weather is doing.”

In the last four years, Rockwood has saved close to $1 million from its three-pronged load shedding approach. While the residential program makes less of a dent in the utility’s total savings, Musrock said every little bit helps.

Stats

• 2012 Year-end Savings: $125,000.





CASE STUDY

Sealing in the SavingsAMERICAN MUNICIPAL POWER, COLUMBUS, OHIO

Meteor Sealing Systems of Canton, Ohio, designs, develops, and produces highly engineered sealing systems for domestic and foreign automobile manufacturers.

Car manufacturers use a variety of mechanical seals that must withstand high and low temperatures, and extreme pressures. Seals must also tolerate exposure to a variety of strong chemicals and lubricants but also perform under poor lubrication.

So it is no surprise to see a company such as MSS place major emphasis on continuous process improvement to ensure that its products exceed their requirements.

MSS demonstrated this so well it won an award from Efficiency Smart, an American Municipal Power program, for its energy savings. The project included installation of a new chiller and dry cooler, a new

efficient air compressor system, and compressed air motor upgrades.

An Efficiency Smart energy consultant worked with MSS to review the project design and validate energy savings. The company has achieved the energy savings it anticipated, and its compressed air system is operating optimally.

Stats:

• Expected Savings: 627,500 kWh of energy annually; $53,800 annually; $1,043,300 lifetime.

• MSS is currently undergoing its next energy efficiency project with Efficiency Smart: a large LED lighting upgrade throughout its facility.

“We’re powered by new challenges. Our experience has made us experts at providing total security solutions.”

PHIL BARRETT8 years • Power/Utility Business Development

AMERISTARSECURITY.COM | 888-333-3422

Our high standards help you meet yours. Providing superior perimeter security solutions is not just our mission. It’s personal. And that mission never stops.

807494_Ameristar.indd 1 15/04/16 12:26 am


362 OId Durham RoadRoxboro, NC 27573336-599-9441www.mastec.com

7931 7_ a c.indd 1 /5/16 12:39


DIAMOND Rochester Public Utilities, Minn. Fayetteville Public Works Commission, N.C. Marshfield Utilities, Wis. Austin Energy, Texas Owatonna Public Utilities, Minn. Huntsville Utilities, Ala. Vernon Gas & Electric, Calif. Ripley Power and Light Company, Tenn.

PLATINUM Tacoma Power, Wash. Georgetown Utility System, Texas Moorhead Public Service, Minn. City of Newton Falls Light & Power, Ohio Bryan Municipal Utilities, Ohio Manitowoc Public Utilities, Wis. Zeeland Board of Public Works, Mich. City of Lexington, N.C. CPS Energy, Texas

GOLD Cedarburg Light and Water Commission, Wis. Logan City Light and Power, Utah Lawrenceburg Municipal Utilities, Ind. City of Wadsworth Electric and Communications, Ohio Rolla Municipal Utilities, Mo. Garland Power & Light, Texas Town of Berlin, Md. Lebanon Utilities, Ind. Anchorage Municipal Light and Power, Alaska City of Chanute, Kan. Hurricane City Power, Utah City of Saint Peter, Minn.

Special thanks to the RP3 Industry Support Council members for their support of this program

R

CONGRATULATIONS Reliable Public Power Provider (RP3) program designees. APPA salutes your commitment to operating at the highest levels of reliability, safety, workforce development and system improvement.


056 5_ la .indd 1 06/0 /16 12:10 am


Managing Energy Demand for Smart Savings and Happy CustomersBy Adam Maxwell, Director, Strategy & New Products, E Source


TRY IT NOW!Ready to get started on your energy efficiency and demand response program design, technology, and marketing? Learn from research and case studies and get tips and tools — subscribe to the DSM Research HQ through the APPA Product Store. The guide is a joint offering between APPA and E Source that takes you through making the right choices in your efficiency efforts. Visit PublicPower.org and look under Store. Questions? Email us at [email protected]

Over the past year and a half, E Source has seen an increased interest from electric utilities in demand-side management programs that educate and engage customers while providing them with more choice and control.Three programs particularly embody this industry shift — smart thermostats, prepay, and behavioral programs.

Smart Thermostats Enable SavingsE Source research shows that more than 20 utilities offer smart thermostat programs following various models. For example, Austin Energy, a public power utility in Texas, runs an increasingly popular Power Partner Thermostat program that follows the BYOT (bring-your-own-thermostat) model. In this model, a utility pays incentives to customers to purchase approved thermostats. These customers can then participate in the utility’s smart thermostat program. I’m a big fan of the BYOT model because it encourages customers to purchase a product they want, while providing benefits to the utility.

Another public power utility in Tex-as, CPS Energy, offers a Rush Hour Rewards program that is built around the bonus incentive model, where util-ities pay an additional incentive to customers who use an enabling technology such as a smart thermostat to automatically respond to peak-pricing signals.

Smart thermostats are becoming popular because they overcome the historical challenge with programmable thermostats — people just don’t know how to use them, so set schedules are rarely optimized to save energy. Lead-ing smart thermostats’ built-in energy-saving strategies (such as learning occupant behavior patterns and tracking smartphone location to

turn off HVAC systems) overcome the all-too-human inability to properly program a thermo-stat. Many smart thermostats have sophisticat-ed features that provide more reliable demand reduction capabilities. Additionally, smart thermostats offer customers energy usage tips, comparisons to previous usage patterns, online portals and mobile apps to view energy con-sumption, and other features to educate and engage.

Prepay for Energy EfficiencyWe’ve seen increasing interest from utilities in using prepay programs for energy efficiency. The prepay concept was initially developed to protect utilities against losses when customers don’t pay their utility bills or pay late. But prepay programs generally have not been set up or used as energy-efficiency programs, despite

evidence that they result in energy savings across all utility types.

Cooperative utili-ties have been leading the charge with prepay programs for years, predominantly for al-ternative payment pur-poses and, to a lesser degree, energy savings. The Northwest Energy Efficiency Alliance Pre-

pay Energy Conservation Impact Study shows that prepay programs at two electric coopera-tive utilities, Glacier Electric Cooperative in Montana and Peninsula Light Co. in Washing-ton, demonstrated energy reductions of 14 and 5.5 percent, respectively. The study also shows that participants have a 92 percent satisfaction rate with the program.

Salt River Project, a public power utility in Arizona, has been running its M-Power prepay program for many years now, and evaluation reports show energy reductions of roughly 12 percent for participants. Customers love it, too; SRP’s Save Energy. Save Money. Save with SRP

Cooperative utilities have been leading the charge with prepay programs

for years, predominantly for alternative payment purposes and, to a lesser degree, energy savings.


Reliaguard’s GreyEEL™ Conductor Cover prevents bird and animal contacts by eliminating gaps in coverage. GreyEEL’s protection is achieved with an overlapped seam and material memory technology that supports exceptional closure performance.

Use the EEL Slider™ tool to apply GreyEEL™ The EEL Slider™ is a dielectric tool for use with rubber glove work method or for de-energized installation. Ergonomically designed, the EEL Slider™ optimizes safety, dexterity and the speed of applying GreyEEL™.

www.reliaguard.com949.305.3311

Made in the USA

SLIPSLIDEDONE

Better Solutions for Powerline Protection

7 6707_ an a.indd 1 09/02/16 7:16 pm

report indicates that in 2014, 92 percent of the 146,000 participants reported that they were satisfied or very satisfied with the program.

Recently, Arizona Public Service, an inves-tor-owned utility in Arizona, filed a request with the Arizona Corporation Commission to include a Residential Prepaid Energy Conser-vation Program in its demand side manage-ment portfolio after results showed 7.5 percent energy savings from the utility’s prepaid pilot program.

Prepay programs yield strong energy sav-ings, high customer satisfaction rates, and more customer control.

Behavioral Programs to Educate and EngageHome energy reports are the most common type of behavioral program for residential electricity

customers. They come in many forms and are helpful for educating and engaging customers on energy use. Originally, utilities sent HERs as direct mail reports to customers to compare their energy usage to their neighbors’. These programs have evolved and now many, such as Southern Maryland Electric Cooperative’s HER program, provide both a direct mail piece and access to an online portal for customers to make comparisons, obtain energy-saving tips, and set savings goals. Other utilities provide optional HER delivery via email, target high-use customers, or couple HERs with other efficiency programs.

Choosing how to structure your utility’s HER program depends on your goals. Are you looking to teach customers about ener-gy and get them involved in their own usage?

You should consider direct mail and an online portal. Are you looking to drive awareness of all your programs? Then think about using HERs as a marketing channel for your other programs. Aligning your program design with your goals ensures you’re setting up your pro-gram for success.

These are only a few of the new programs utilities are rolling out to educate and engage customers while giving them more choice and control. Utilities that offer value-added ener-gy efficiency and demand response programs have a better chance of building relationships and trust with their customers, increasing the likelihood that customers will turn to their util-ities for their energy-related needs.


www.tallmanequipment.comPHONE: 877-860-5666 | INTERNATIONAL: 630-860-5666 | ESPAÑOL: 630-694-5853

1000 lb. RATEDHANDLINE HOOKS

HEAVY DUTYACSR CUTTERS

REDUCE THE RISK OF INJURY WHILE INCREASING PRODUCTIVITY DDIN TOOLS ARE ENGINEERED FOR TOUGH WORKLOADS

AND TO OUTLAST THE COMPETITION

NOW AVAILABLE AT TALLMAN EQUIPMENT THE EXCLUSIVE WORLDWIDE DISTRIBUTOR OF DDIN PRODUCTS

HEX TO SQUAREIMPACT ADAPTERS

TRANSMISSION & DISTRIBUTION EQUIPMENT

05265_ allman.indd 1 0 /0 /16 10:29 pm


Everything you

need to know

about making

Demand-Side

Management

work for you

Reshaping

the Load

Whatis it?

Demand-side management means reducing or shifting energy use through programs that incorporate new technology and creative business mechanisms to provide the lowest-cost option for customers.

Why

should my

utility use it?

In the next generation of electricity, your utility likely focuses on reading market signals and paying for new supplies only as needed.

Demand-side management can help you use less power more effectively and efficiently.

Howcan my utility

implement it?

Follow these implementation tips for a successful demand-side management program that provides year-after-year savings.

■ Establish a single point of contact for customers.

■ Partner with nearby utilities and joint action agencies.

■ Create strong relationships with trade allies.

■ Develop a realistic budget.

■ Start off with programs that guarantee short-term payback.

When should

my utility use

a demand-side

management

program?

Who

participates

in a utility’s

demand-side

management

program?

The purpose of any demand-side management program is to reshape the load. A utility can reshape its load to reduce costs, lower rates, and bring in more revenue.

■ Peak shaving: using DSM during the peak time of day or season when demand is highest.

■ Load shifting: move energy use from the peak time to the off-peak time.

■ Conservation: improving customers’ abilities to conserve at all times.

All customers can help their utilities reshape their loads. Some utilities offer custom programs to catch all potential opportunities to reshape the load. Here are some examples:

■ Rebates and bill credits: Cash back or monthly credits are easy ways to encourage and track your program.

■ Low-interest loans: Guarantee the financing for projects that save energy to engage more customers.

■ On-bill financing: Balance payments for energy efficiency loans with savings from the project by combining a typical bill with the invoice for an energy efficiency loan.

Check out APPA’s energy efficiency database and research and development resources at publicpower.org/EERC and publicpower.org/DEED

Where can I find out more information

About implementing a demand-side

management program?

29 DSM Infographic-May-June 2016 Final.pdf 1 4/15/16 2:15 PM


APPA’s new Energy Efficiency Management Certificate Program talks about the new trends in energy efficiency — What is the hottest trend in energy efficiency right now that utilities need to know about?There are a couple interrelated trends. There’s an explosion of customer engagement in en-ergy efficiency and devices to manage energy efficiency — like smart thermostats and home energy management devices. So people’s expectations of their utility are changing in that model. They expect to be much more engaged with their utility. The sort of back side of that is data. With all those new devices, there’s been this explosion with data — from advanced metering infrastructure, smart meters. There is both a much richer access to data, and a lot more data. Both of those trends — customer empowerment and data — can really be har-nessed for energy efficiency, and I think it is an exciting area for utilities to be aware of and expand their offerings in that direction.

Many utilities already have energy efficiency programs and many have had them for decades — Why should they revisit them? What’s out there that they might be missing?One is that we’re in a new generation of energy efficiency programs. A lot of utilities have a standard rebate program, you buy an energy efficiency refrigerator and we give you $50, or something like that. And that type of program is pretty common but a little basic. There are many more opportunities for innovative approaches that utilities can be aware of, and we’ll be touching on in the course. We call them market transformation approaches, ways you can run energy efficiency programs that help transform the market for energy efficiency. Wheth-er that’s applying incentives directly with retailers and distributors to change their stocking practices and availability of products, or something around emerging technologies.

Something else utilities need to be looking at is that technologies have changed a lot and there are many new energy efficiency products. For example, there are some federal [light-ing standards] that are rapidly transforming. And there are a lot of new technologies around LEDs, heat pump dryers, smart thermostats and connected devices that utilities should be aware of and probably need to be planning for.

Who at a utility should be doing this planning and what kind of training do they need?We’ve tried to design the courses in a way that would relate to a lot of different people. We’ve tried to develop it so that it could apply to someone that is new to energy efficiency or trying to start a program from scratch to someone who may have been involved with an ener-gy efficiency program for many years. There are a variety of program types and approaches we’re going to be looking at, but we’ve tried to take a very systematic approach and share strategic planning techniques.

We’re involved with four days of the course — Days Two through Five — and Day Two is an introduction to energy efficiency technologies and programs, sort of the basics. And then Days Three, Four and Five are the core where we apply the strategic planning approach. Day Three involves planning at the portfolio level — what are your utility goals, how does energy efficiency fit into that, how can energy efficiency create benefits or contribute to the utility’s goals. Day Four is program design and implementation. We’re taking that planning approach and boiling it down to a specific market and a specific program and taking a step-by-step ap-

The utility industry knows energy

efficiency is more important than ever.

But why is that? Emily Levin, manager

for program strategies at the Vermont

Energy Investment Corp., answered

those questions and more in a recent

interview with Public Power magazine.

The American Public Power Association is

partnering with VEIC to update its Energy

Efficiency Management Certificate

Program. Levin, who designs and reviews

energy efficiency programs for public and

private players, is an instructor for the

program.

Data and Engagement: Next-Generation Energy EfficiencyBy Laura D’Alessandro, Integrated Media Editor, APPA


proach to understand the market and know what the barriers are that customers face. Then we’ll design a program very thoughtfully for customers to overcome those barriers. Day Five is focused on measurement and verification — the evaluation at the end. You’ve implement-ed, now how do you tell what the results were? Did it work? How do you benchmark against other programs? It’s sort of the nitty gritty on those pieces.

And the reason why utilities should care about that is, its important to treat energy efficiency as a resource. Just like your utility is supplying power, you can actually use energy efficiency as one of those sources.

What is the value proposition with energy efficiency today and how is it different than it used to be?There are a number of value propositions for energy efficiency — I’ll mention just the top three. So first, treating it as a resource. If you’re doing integrated resource planning and looking at where you’re actually going to supply your electricity, source your energy, you can treat energy efficiency as a resource to provide a component of your portfolio. Energy effi-ciency is participating as a resource for capacity markets. Currently, VEIC participates on behalf of the energy efficiency utilities we operate. It’s really significant, it’s the lowest cost resource in a lot of cases. If people aren’t looking at energy efficiency in that way, like it’s just a side project, they might be missing out on a potentially very low-cost, reliable, low-risk component of their supply portfolio.

Another one is economic development. This is one we found resonates especially with munic-ipal utilities that are part of a city government in many cases that care a lot about economic development. Energy efficiency can help local businesses reduce operating costs and improve their bottom lines.

And then the third reason has to do with customer satisfaction and customer engagement. With customers’ access to social media, instant information, their expectations for their util-ity have changed. They expect to have a certain level of service, and energy efficiency can be a really positive way to engage customers with their utility. It can be a value the utility brings that customers are really grateful for and view positively.

Aside from that value, it seems like energy efficiency is an imperative these days — Why is that? What’s changed?I don’t know that things have changed so much as that energy efficiency, at this point, really has a proven track record. People have been doing it in some cases since the 1980s and 1990s, or with the current approach since 2000 or so. [The programs] have grown in size, they’ve grown in scale, and they’ve also been driven in some cases by regulations. That really has created a long track record of energy efficiency programs that are successful.

ENROLL in the APPA Academy Energy Efficiency Management Certificate Program by visiting PublicPower.org>Programs>APPA Academy.


PREPAREDNESS CULTURE IN THE DIGITAL AGE


It’s been more than five years since Superstorm Sandy knocked out power in the mid-Atlantic and Northeast in an extended outage that taught

everyone in the utility industry a lesson: be prepared. Through new exercises and programs, utilities are combining new technology with the culture of

preparedness for better disaster response.By Ethan Howland, Contributing Writer


When Superstorm Sandy slammed into the Northeast in October 2012, it knocked out power to about 8.5 million homes and businesses and set off a massive restoration effort that ultimately changed the way utilities prepare for extreme weather and extended outages.

The Rockville Centre electric department is one public power utility that revamped its emergen-cy plan after Superstorm Sandy, which interrupted three transmission lines that supply electricity to the village on Long Island, New York.

When Sandy hit, the village of about 24,000 had a single emergency plan that included the utility and other village departments, said Philip Andreas, superintendent of the Rockville Centre electric department.

Under Andreas’ direction, the utility developed its own storm preparation plan that is structured as a checklist so that activities aren’t missed and key information is documented and tracked. The plan has four main sections dealing with steps that must be taken each year, two to three days in advance of a storm, during a storm, and after a storm, including a critique of how the storm was handled and how to get information for federal reimbursement, Andreas said.

Each section of the plan is organized by responsibilities for various utility employees, such as the utility’s power plant supervisor, engineer and the meter readers, Andreas said. The plan identifies steps to take in emergencies.

Norwich Public Utilities in Connecticut was also hit by Sandy and looked at how it could im-prove its response to storms, said John Bilda, the utility’s general manager.

NPU more clearly defined the assignments and expectations for its employees in its emergency operations center, Bilda said. Also, the critical positions in the operations center — incident com-mand, operations, finance and planning — have received cross-functional training so that at least three colleagues can perform in each role.

Bilda said that NPU has increased its use of a geographical information system, or GIS, to track its personnel and equipment in an effort to increase accountability and safety. The utility has also improved its GIS and outage management capabilities by upgrading its technology and increasing training, he said.

NPU developed memoranda of understandings with its three labor unions to streamline the administrative functions related to storm response, according to Bilda.

Since Sandy, the APPA

staff and scores of

members have participated

in multiple storm response

exercises held at the local,

regional, and national level.

The exercises are one sign

of how much has changed

in the way utilities are

preparing for emergencies.


Weaknesses, exposedAlmost every utility in the United States was affected by Sandy, either directly or through mutual aid, leading to significant changes in storm preparation across the country, said Jeff Lewis, an energy and utilities expert with PA Consulting Group. “It definitely impacted everybody,” he said.

The storm exposed weaknesses in the way the government, utilities and other organiza-tions respond to storms, said Mike Hyland, American Public Power Association senior vice president of engineering services.

Working out of the Federal Emergency Management Agency’s national response center along with David Owens, the Edison Electric Institute’s executive vice president for business operations group and regulatory affairs, Hyland had a front row seat in how the response to Sandy was managed. He was receiving text messages from utilities that were slammed by the storm as well as from utilities that wanted to help out. “I’m thinking to myself, there’s got to be a better way,” Hyland recalled.

About 1,500 crews from around the country were sent to hard hit states such as Connecti-cut, Maryland, New Jersey, New York, Ohio and Pennsylvania. More than 80 percent of the public power crews were coordinated through APPA, Hyland said.

One of the things APPA and others noticed during the storm response was that they didn’t know exactly who was on the ground, Hyland said. Sometimes crews were sent outside of the national effort. And during the restoration

work, finding accommodations and food for crews was sometimes a haphazard process.

Communications, improvedAfter Sandy, the Department of Energy (DOE) led a “hotwash” event to assess what could have gone better during the storm response, Hyland said. Problems included difficulties in getting fuel and convoys of crews racing up from southern states getting delayed at tollbooths on the New Jersey turnpike.

What did the DOE find? Communication needed to improve between the federal government, states and utilities during a major storm as well as between the utilities themselves.

In response, inves-tor-owned utilities re-duced their mutual aid groups while municipal utilities got better orga-nized, partly so they could improve communications with the IOUs, Hyland said.

Public power established the Mutual Aid Working Group, which formalized a mutual aid plan and developed a playbook for what to do during a disaster. There are 10 regions within the public power mutual aid plan.

Public power, cooperative and inves-tor-owned utilities have been practicing storm

response through a series of exercises led by the DOE. “We need to practice what we’re try-ing to create,” Hyland said.

Since Sandy, the APPA staff and scores of members have participated in multiple storm response exercises held at the local, regional, and national level. APPA held its first exercise for public power utilities at its 2015 National Conference. APPA plans to host another exer-cise in June 2016 for its members. APPA will also host a national storm response exercise

in October as part of a cooperative agreement with the DOE.

The exercises are one sign of how much has changed in the way utilities are preparing for emergencies since Sandy, Hyland said.

Resilience, amplifiedThere have been other significant changes in the way utilities prepare for storms

since Sandy, especially in four key areas: technology, process, organization and people, said PA Consulting’s Lewis.

“The utility industry stood up and took notice of Sandy and has captured a lot of the lessons from Sandy,” Lewis said. “We’re better prepared for storms and have a more resilient grid.”Continued on page 50

Public power, cooperative and investor-owned

utilities have been practicing storm

response through a series of exercises

led by the DOE.


From Hurricane Katrina to Superstorm Sandy – How have you seen our nation’s disaster preparedness effort evolve? How have electric utilities played a role in that?I think people have come to realize that man can be destroyed by Mother Nature. In a real disaster, it’s probably going to be if not hours, days without power. It reminds us how much we rely on and how much we have learned to live with the power that we have today. When we lose power, it can set back the way we live by over 100 years because so much of our infrastructure is dependent on power.

I have had the good fortune to speak in front of utility companies throughout the country. They want to try to get the left side of the disaster, meaning that in every disaster — like a Sandy or a Katrina — you’re going to have a lot of damage from wind, flood and trees. And when it comes to trees, you’ll see any utility reminding people to do tree maintenance. Certainly that has a big impact if trees aren’t maintained.

I’ve also seen a lot of leaning forward by a lot of the industry to have agreements with companies outside the immediate area where you live. I think we’ve gotten even better and better at doing that, and hats off to the industry. I’ve also seen the industry encourage critical infrastructure to invest in backup power, knowing that that critical infrastructure, if the power goes out, is still going to take time to get back up.

After your experience with Hurricanes Katrina and Rita, you’re devoting your life to creating a culture of preparedness in America. How do you define a culture of preparedness?I define it as identifying the most probable and possible risk that you live with. If you’re out on the West Coast, that’s probably going to be earthquakes and fires. If you’re down in the South in the Gulf, it’s going to be storms and floods. And as you take that into perspective, how do you prepare, as we say, for the most likely. If you live in a flood zone, you have to be prepared. You may have to move when it starts raining; you don’t wait until it gets surrounded. The idea is trying to get people to in essence be their own first responders, to be prepared and then to be able to take care of not only themselves but also their neighbors. That’s what we’re talking about with a culture of preparedness and it becomes a part of our lives and our routine. We’re not surprised by the obvious is a better way to put it. If somebody tells you a blizzard is coming you don’t wake up and say, “Oh, a blizzard came.” You stay informed.

How can public power leaders create a culture of preparedness in their workplaces?I think it comes down to being resilient and having that response force. Today we talk a lot about resilient leadership, calculating what are the most probable things that can happen. During hurricane season and on the eastern seaboard, those teams are constantly coming out of one cycle of repairing damage and preparing for the next one. And they capture lessons learned. I’ve seen it time and again with our utilities down here, watching them in the hurricane season. You can see the lessons have been learned in the way they shelter their crews and have backup equipment. I think with the evolution of data and the use of computers those crews can come in with some pretty good estimates once they see that block that’s out of power, what the wind was, and have estimates of what they’ll need to get the job done. And that’s optimizing technology and I think that’s a big part of the future.

Lt. Gen. Russel Honoré was an integral

leader during the aftermath of Hurricane

Katrina. He was known in the media as

the Category 5 General. Now, after more

than 37 years of service in the U.S. Army,

Honoré said he’s spending the second half

of his life committed to a new mission:

creating a culture of preparedness. Honoré

talked with Public Power magazine about

how utility leaders can apply what he

learned.

Step Up to the Mic and LeadGetting in front of the crisis with the Category 5 GeneralBy Laura D’Alessandro, Integrated Media Editor, APPA


Speaking of the future, as we build the workforce of the future, what are the qualities future leaders need to succeed in today’s world and in this culture of preparedness?I think we want people that are not afraid to lead; we need leaders. The role of the leader is to get people to accomplish a task or mission regardless of the conditions. It has to be done and it has to be done safely. So I think when you get into that space of human capital, of selecting people, you’ve got a choice to raise them internally in your organization and then pick the ones who demonstrated they are naturals or like to lead, and then you have to develop it. You have to send people to get further education and further training if you want them to be successful, which means we’ve got to invest in our future leaders. If you don’t invest in them, it won’t happen by chance or by luck. People make the best decisions when they’re educated and know what they’re doing.

What should leaders do in a crisis, such as widespread power outages?Spend time using those public forums to communicate with the people themselves. A lot of CEO leaders will push that task strictly to the public affairs person and media relations people. But when you’re in a crisis, people want to talk to the leader, and they want to make sure that the person who is leading that utility is someone they’ve got confidence in. They don’t want to hear it from somebody else. So I would encourage our utility leaders when there’s a disaster to step up to the mic. In the army, when times get tough, you can get things done when the leaders move to the front of the formation, to be the face of the disaster and not hide from it.

GET MORE! Hear Lt. Gen. Russel Honoré speak at APPA’s National Conference in Phoenix in June. Find out more at PublicPower.org under Events.

777897_Spie.indd 1 4/12/16 1:28 AM


The changes have helped slash restoration times from what a decade ago may have taken six days to about three days, Lewis said.

There have been major changes in the way technology is used to handle major storms, according to Lewis. For example, utilities are increasingly using mobile devices for damage assessments, he said. Damage assessments used to be a time-consuming paper process, with inspectors going out into the field to record the damage and returning at the end of the day to put work orders together. Now, the process is online, with pictures taken in the field and sent instantly to a control center for response. What was a 10- to 12-hour process is now almost instantaneous.

The growing number of smart meters helps on the tail end of restoration efforts when mainly individual outages remain, Lewis said. A utility can ping customer meters and, if need-

ed, send crews to make repairs in a process that is more efficient than in the past.

Utility communications have improved, according to Lewis. For example, utilities have gotten better at nailing down the estimated time of restoration, or ETR, which helps an organization understand what its goals are, Lewis said. Accurate ETRs can also lead to improved customer satisfaction.

Some utilities have also improved their organization by adopting an incident command system, which creates a common structure to help different organizations, such as police, fire departments and county emergency management, handle emergencies, Lewis said.

Continued from page 47

Learn more about preparedness through APPA’s Mutual Aid Working Group.

Visit PublicPower.org/MutualAid.

Utility workers are also better trained since Sandy, according to Lewis. For example, storm drills may be based on scenarios where outages reach 90 percent, when in the past the scenario may have called for outage levels at 20 percent.

Further, the power grid is more resilient than it was before Sandy, with utilities raising substations to prevent damage from flooding and hardening key circuits. “Day-to-day outag-es have declined,” he said.

After Sandy, most utilities reviewed and refined their emergency response plans for dealing with major events such as storms, Lewis said. “We’ve gotten much better on logistics.”

24/7here for you

Being available for your customersround-the-clock has never been easier. Forover 20 years, utilities have partnered with

CRC to turn call handling and crew dispatchchallenges into seamless solutions.

365

contact-dispatch center | alarm monitoring

787052_CRC.indd 1 12/04/16 12:08 AM

PublicPower.org / #PublicPower 51806544_Finley.indd 1 4/12/16 3:09 AM

805762_Professional.indd 1 09/04/16 5:23 PM


Attending National Conference & Public Power Expo? Visit us at booth #601

Serving the industry since 1974.

PSE is driven to be your trusted advisor for all of your consulting and engineering needs, including:

Communications, IT, and Smart Grid Automation

Economics, Rates, and Business Planning

Electrical Engineering

Planning and Design

Procurement, Contracts, and Deployment

FULL-SERVICECONSULTANTS

www.powersystem.org866-825-8895

053 0_ .indd 1 /11/16 :50

Off ering a breadth of experience in the law of energy, utilities and environmental work, including power supply, fuel transmission negotiations, processes and contracts, power plant and transmission development and permitting, CATV,

internet and communication transactions, and legal opinions on municipal light plant operations.

Christopher J. PollartJohn A. DeTore

William B. McDiarmidRobert D. Shapiro

Kenneth M. Barna Karla J. Doukas

Christine N. Parise

Bernice (Bicky) CormanDavid C. Fixler

Keren S. Schlomy

50 Rowes Wharf, Boston, MA 02110 and Yarmouthport, MA • Washington, DCwww.rubinrudman.com

SERVING THE MEMBERSOF THE APPA

802831_Rubin.indd 1 4/12/16 12:23 AM


We’ve got the lock on affordable security.

Security SystemsA Division Of Engineering Unlimited

Sterling

(800) 515-4040 | www.sterlingpadlocks.com

Sterling Padlock Sterling DL-2S-3

777107_ lin .indd 1 11/6/15 5:05

Call now 573-796-3812 | Fax 573-796-3770www.tanawiremarker.com

TANA WIRE MARKERSP.O. Box 370, California, MO 65018

FAA z

v b wy

v

p

v and

790023_Tana.indd 1 1/21/16 11:56 AM

SSSSSSSSSSS nnnnnnnnnnnnnnnnnnnnnngggggggggggggggg nnnnnnnnnnnnnnnnniii ggggggggggggggggggggggggg qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq ppppppppppppppppppppp ooooooooooSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrriiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitrittttttt iiiiiit innnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggngiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnniniiiiii gggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggg g EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqquuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiipppppppppppppppppppppppppppppppppppppppppppppppppppppppppppmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttt ffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrroooooooooooooooooooooooooooooooooooooooooooommmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmfrom

www.ConduxTesmecTT .com1-888-980-1209

URW24 Uniivers lllal RRRRR leeleel WWWWiinder AFB50606066 22220000,0000000000000000 llllbbbbb. PuPPuPuPuu lllellellellerrrr-TTTT- ense ionerTTTAFS404AFS404 1100,000 l000 lbb. PullerPuller--TT-- ensionerensiionerTTTT

With a small footprint and tthee mmost advanced ffeaatuturreses,, puller-tennsisionononerree ss fromCondux TesmecTT bring high-level productiviityty and safettyy to every jobb ssis ttteeee.. PPlusu , duduualaacapability puller-tensioners help utilities and ccononttrracacttorors s maximimize asseseseseseet utututttilii izatitiononnn...Paired with a Condux TTesesmec UTTT RWW224 4 rreeeell wwinder,r and now you havve e ththee momomomom sssstttt

Foror ttheheFF wwororldld’ss momo’ sstt adadvvananvv ceded sstrtriingiing equipmentt,,ttt cconontatact Condux Tesmec c TT tttododaadd y!y!y!aa

effeffecectitiveve sstrtriningiging equipment configuration in the indusstry!y!

806546_Condux.indd 1 4/12/16 2:52 AM


While legacy priorities — such as addressing capacity markets and reducing the permitting time for new hydropower projects — remain important to the American Public Power Association in 2016, members are also pursuing new goals and strategies, including adequate federal funding to attract the next-generation workforce.

APPA’s Legislative and Resolutions Committee gathered in Washington in March to solidify the association’s policy goals for the year and fight for public power on Capitol Hill. The committee approved eight resolutions that tie into the association’s 2016 priorities. Members can vote on these priorities at the National Conference in June in Phoenix.

The association’s work in 2016 is also guided by its strategic plan, which was released last year and includes strategies such as preparing for the utility of the future, providing members with new and better resourc-es, and helping members build the future workforce.

The eight resolutions covered building the next-generation workforce, supporting the proper allocation of funding to federal power customers in California’s Central Valley, addressing capacity markets, expediting hydro-power licensing, addressing technical flaws in metrics related to energy-ef-ficient appliances, supporting the second installment of the Quadrennial Energy Review, increasing federal funding to reduce the size and impact of wildfires, and promoting better vegetation management on federal land surrounding transmission and distribution assets.

While addressing capacity markets has also been a longtime priority for APPA, the issue’s complexity could be what has kept it around so long.

“Capacity markets are complicated,” said David White, executive di-rector of the Northeast Public Power Association, at the L&R Committee meeting. “In fact, I get an ice cream headache just thinking about them. What I do know is the impact mandatory capacity markets are having in the Northeast.”

White said power prices in the Northeast are 40 percent higher than other markets and the real impact of the capacity market issue is on communities and consumers. And while public power has been pursuing fixing these markets for a long time, incremental progress has been made.

“We see some signs that some of our concerns are resonating,” said Joe Nipper, senior vice president of regulatory affairs and communications at APPA. “The rationale du jour seems to change frequently, but at the same time, one part of that is there are more stakeholders and more interests saying that capacity markets are problematic — although not always for the same reasons that we see. I think you have to look closely for those slightly more encouraging signs, but they’re there.”

You can view APPA’s 2016 resolutions at PublicPower.org under Policy>Legislation>Resolutions. Use the infographics on the next three pages to help explain public power’s 2016 priorities to your customers, your board and your elected representatives.

Public Power’s Next-Generation Priorities Desmarie Waterhouse, Senior Government Relations Director and Counsel, APPA

W A S H I N G T O N R E P O R T

Vote! Attend the association business meeting on June 14 at 4:15 in Phoenix, Arizona, to vote on the 2016 resolutions. To register for the conference, visit PublicPower.org/ NationalConference.

Access forward thinking.

Transcend commodity engineering. For decades, the experts at Leidos Engineering have helped utilities optimize operations and prepare for what’s next. Our solutions in system planning, grid engineering, and Smart Grid as a Service transform your utility, with the future always in mind.

leidos.com/power-gridActivate Tomorrow, Today.

Luis TomiokaProtection and Control Engineer


Take Thoughtful Action to

ADDRESS CLIMATE CHANGE

The plan tries to do

TOO MUCH, TOO FAST

The Clean Power Plan aims to slash CO2 emissions

We need to address climate change, but not through the Clean Air Act

32 percent by 2030

APPA has challenged the rule and supports the Ratepayer Protection Act and the Affordable, Reliable Electricity Now Act

BUILD WITH BONDS

Preserve public power’s ability to

Municipal bonds help public power create new infrastructure at the

rate of $11 billion annually

Tax exemption for bonds is under attack by opponents who aim to cap or eliminate it

Congress should prevent further cuts to Build America Bonds and protect bonds from sequestration


SECURE THE GRID

Facilitate collaboration to

Many public power utilities buy wholesale electricity to supply their customers

Protect our ability to

SELF SUPPLY

Public power utilities should be allowed to own generation or buy power through direct contracts

Mandatory capacity markets are raising prices for customers, and profit only merchant generators

Bills enacted in 2015 for information sharing and liability protection need to be implemented properly

As the grid evolves, so do threats

Together with industry-government partners, we can preparefor and respond to cyber attacks

$


Solar and other distributed generation play an important role

Public power customers can participate in solar through rebates, rooftop installations, or community solar

Congress should keep participation in net metering voluntary for public power. Utilities work with their customers to make policies

fair and transparent.

SOLAR INNOVATION

Pave the way for

Share this infographic! To request a PDF, email [email protected].


WASHINGTON REPORT

A couple of weeks ago, I was chatting with Rich, the Home Energy HERO. He completed a home energy audit in our house a couple of months ago and recommended that we insulate our house and take advantage of the 50 percent rebate our electric utility was offering.

When Rich learned that I worked for the American Public Power Association and represented electric utilities, he immediately asked, “So tell me, do utilities think energy auditors like us are the bad guys?” I was surprised he’d even think that, given that he was certified by two electric utilities and depended on them for his business. “But the utilities don’t tell people about folks like us. How will customers know?”

Well, my utility does talk about a home energy audit and even lists Home Energy HERO as a participating contractor — as I found out after chatting with Rich. My utility may even have sent me something in the mail about the benefits of such an audit, but I probably threw it away without a second look. Maybe I’d have paid more attention to an email?

I found Rich by asking for recommendations on my community list-serv. Our house was old, and cold, and we knew we needed to insulate. So when we were ready, we asked the neighbors — who have houses just like ours and whose word we trust. But some neighbor probably found him on the utility’s website, or by reading a mailer, in the first place, right?

I reassured Rich that utilities — especially if they are public power — love contractors like him because they do want to help customers save energy and money. We agreed that the problem is how to get customers’ attention — and break through the noise that surrounds us. I promised to tell more neighbors and friends about his wonderful service. And perhaps even share on Facebook that we loved our newly insulated home. I mean, it’s not like posting a picture of your flowering rhododendrons or rating the new restaurant in town, but still…

In my profession, we spend considerable time evaluating the effective-ness of various channels. But what’s important to remember is that not all customers are like you and me. Public power utilities serve an increasingly diverse mix of customers, and it takes a combination of channels to reach them. Our communication platforms must be as varied as our generation mix.

In a recent national survey of public power customers conducted by APPA (read more on page 20), we asked how people would like to get information from their utility. Here’s what we learned.

Over half the customers surveyed had visited their utility’s website, and nearly half of customers said they’d like to communicate with their utility through social media. Web and social media were flagged as pre-ferred channels for learning about rates; outages and restoration; energy issues like solar panels, thermostats, batteries, generators, energy saving measures, energy apps; as well as special events, products, and programs.

I was especially surprised by the growing preference for email as a

Mix It Up: Customers Are Channel SurfingBy Meena Dayak, Vice President, Integrated Media and Communications, APPA

G O I N G P U B L I C

channel, and the fact that good old-fashioned bill stuffers and direct mail still have considerable value in customers’ eyes.

Here are three ways you can turn what we’ve learned so far into action-able steps.

1. Mix it up: Ensure your utility’s presence on traditional as well as new social media channels. Spread out your resources and get some help nurturing multiple channels.

2. Figure out what goes where: Customers may be willing to read a page of information on your website or in a mailer, but you might need visual communication with short messages to draw them in on email and social media.

3. Let others talk for you: Nothing wrong with tooting your own horn, but it’s even better when others do it. Get your customers, employ-ees, and policymakers to share about their experiences with your utility’s services.

What have you learned about the best ways to communicate with customers? Would you like to see the complete findings of the APPA customer survey? What channels can APPA help you with and how? Send me an email at [email protected] and let’s chat.

Currently receive utility info

Channel Customers Customers under 55 over 55Bill inserts .........................................42% ........................ 60%Direct mail ........................................ 31% ........................ 41%Web ...................................................43% ........................ 22%TV news ............................................ 16% ........................ 13%Email ................................................15% ......................... 8%Friends, neighbors, co-workers ...........9% .......................... 3%Social media ....................................... 4% .................. Less than 1%

Prefer to receive utility info

Channel Customers Customers under 55 over 55Bill inserts ......................................... 33% ........................ 52%Direct mail ........................................ 33% ........................ 42%Web ...................................................38% ........................ 20%TV news .............................................9% ......................... 10%Email ................................................ 31% ........................ 18%Friends, neighbors, co-workers ........... 4% .......................... 2%Social media ....................................... 6% .......................... 1%


With fast-evolving technology, protecting customers from scams can be a moving target. Customers in Arizona and Missouri were recently targeted by scammers who contacted them by phone, impersonating the utility’s phone messaging system. Here are three tips to help keep your customers safe.

1) CommunicateWarn customers about scam tactics early and often. As soon as a threat is known, it should be shared. Also, safety strategies can be shared proac-tively. Make sure your customers know what a scam looks and sounds like — and that the utility will never ask them for certain information over the phone or through email.

Protect Customers From Next-Generation ScamsBy Delia Patterson, General Counsel and VP of Human Resources & Administration, APPA

S E C U R I T Y

2) SupportLet your customers know they can always contact you if they’re uncertain about any communication that seems to be coming from their utility. Encourage them to do so.

3) Get HelpMake sure your customers know where to turn to file complaints about scams and fraud. The Federal Trade Commission is the nation’s consumer protection agency. Help is also available at the state and local level.

783148_ATS.indd 1 04/02/16 7:18 pm

A Verisk Analytics Business

ake control of your driver-related risk

ii river onitoring and Background creening roducts

olutions to help you reduce your liability DriverSafe® Plus make smart decisions across your entir t with our real-time, web-based analytics platform.

DriverAdvisor® Monitoring easily track changes in yourdrivers motor vehicle records from month to month.

ii also offers an e tensive selection of employee background searches, including criminal history, re- mployment creening rogram records, C searches, and more.

For more information visit www.iix.com/appa

© 2016 ISO Claims Services, Inc. Verisk Analytics is a registered trademark and Verisk is a trademark of Insurance Services Office, Inc. Insurance Information Exchange, and the iiX logo are trademarks of ISO Claims Services, Inc. All other product or corporate names are trademarks or registered trademarks of their respective companies.

Driving decisions for your business

791168_iiX.indd 1 4/8/16 12:51 AM


Smooth TransitionWho: Decosta JenkinsWhat: President and CEOWhere: Nashville Electric Service

As a certified public accountant with years in the private sector un-der his belt, Decosta Jenkins doesn’t leave much to chance. When he came to Nashville Electric Service from Deloitte in 1991, he worked hard and took the helm 13 years later as president and CEO. One of the first things he noticed about the culture in the private sector compared to public power? He saw a gap in knowledge transfer. At NES, Jenkins has made it his mission to document policies and procedures so that the next generation can smoothly transition into taking over for the outgoing one.

“We’ve tried to put in place systematic training for our supervisors and managers,” Jenkins said. “All the supervisors go through the same module, all the managers go through the same module. Everybody stair steps up the ladder being exposed to the same knowledge.”

NES also implemented annual testing on its safety manual. Jenkins said the training and testing have been warmly welcomed, especially by employees who work in the field and appreciate attention to safe proce-dures. As a result, Jenkins said, the utility’s safety stats are improving.

“As the workforce makes this transition from the baby boomers to the millennials, I wondered how I could best protect the public and my other employees,” Jenkins said. “The best way to do that is to put in place programs which are documented and structured. And then those procedures are more easily passed along — as opposed to knowledge transfer from one generation to another by word of mouth or on-the-job training. And now we see increased efficiency, higher levels of safety and higher levels of employee satisfaction. People seem to like when they know what’s expected of them.”

LAST WORD

05 91_ c .indd 1 06/0 /16 10:37 pm


ExExpepeperience matters. Especially when it comes to electric power transmission. At American Transmission Co., our sole

focus is power transmission – and we have a track record to prove it. Since our inception in 2001, we have successfully

permitted more than 70 major projects – long and short lines, urban and rural construction, and projects that cross state

lines. We are an experienced builder, consistently achieving cost estimate accuracy within 5 percent of the estimate, better

than the industry standard. With ATC on your team, you gain the knowledge and experience of the nation’s first multi-

state, transmission-only utility – an expert in planning, building, owning, operating and managing complex transmission

assets. We can handle the diverse challenges of transmission, and are a trusted coach you can rely on.

It helps to partner with a pro.

Helping to keep the lights on, businesses running and communities strong®

atcllc.com

800258_American.indd 1 05/04/16 12:40 pm


KANSAS CITY CHICAGOAUSTIN

Theof

© 2

015

Grid

Lian

ce. A

ll rig

hts r

eser

ved.

784106_Grid.indd 1 17/02/16 8:44 AM

public power magazine - may/june 2016

Recruiting & HR