monitoring organizational performance for utility governing boards appa national conference june 16,...
TRANSCRIPT
![Page 1: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/1.jpg)
Monitoring Organizational Performance for Utility Governing Boards
APPA National ConferenceJune 16, 2009Carl A. Mycoff
![Page 2: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/2.jpg)
A headhunter discussing Monitoring Organizational Performance for Governing Boards?
It’s what we do.
![Page 3: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/3.jpg)
Driving Metric: Stakeholder Value
Quantitative
Qualitative
It’s first and foremost about the money, but CEO’s can just as easily lose their jobs over tree trimming.
![Page 4: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/4.jpg)
Quantitative: Balancing conflicting forces
PricePower SupplyFinance
ReturnCustomer relationsEconomic DevelopmentStaff Development
![Page 5: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/5.jpg)
Price competitiveness
Regional
National
Global
![Page 6: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/6.jpg)
Power supply: THE largest
component of price
Large and vertically integrated
Distribution/joint action agency
- All requirements
- Project
![Page 7: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/7.jpg)
Financial condition• Debt/equity: Rating agency ratings optimized to minimize interest expense.• Life of asset• Customers deriving benefit• Debt service impact on price • Where should the equity reside? - Distribution - Joint action
![Page 8: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/8.jpg)
ReturnCash transfer to general
fund; Payment- in-lieu of taxesShared service allocationFree servicesStreet paving
![Page 9: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/9.jpg)
San Antonio City Public Service (CPS)
Annual electric revenue $1.2 BillionResidential Revenue $672 MillionResidential Revenue under AEP $882 MillionRevenue Saving $210 MillionTransfer to the General Fund $245 MillionFranchise Fee and Property Tax $57 Million
CPS customer residents save annually $398 Million
![Page 10: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/10.jpg)
Tacoma Public Utilities
Annual Retail Electric Revenue $267 MillionAnnual Retail Electric Revenue Under
Puget Energy $404 Million
Retail Revenue Savings $137 Million
Gross Revenue Tax $30 Million
Support Service Allocation $6 Million
Franchise Fee and Property Tax $13 Million
Tacoma Public Utility Customers save annually $160 Million
![Page 11: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/11.jpg)
Customer Relations
Customer satisfaction
Reliability; CAIDI/SAIDI
Power quality/price
Chip manufacturer/irrigator
![Page 12: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/12.jpg)
Economic Development
Build load and revenue- Load factor- Incremental cost to serve.
Mitigate customer dependence
Local job creation
Tax base
![Page 13: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/13.jpg)
Staff Development
Turnover
Successor development Internal promotions Cost/benefit
Safety OSHA Recordable Lost time
Unions Grievances Arbitrations
![Page 14: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/14.jpg)
Quantitative and Qualitative factors
Green resources: College/capital city or coal mining town Subscription rate/premium price
Energy efficiency:
Community culture: High tech/packing house
Staff impact on community relations:
Local hires/market compensation forces:
![Page 15: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/15.jpg)
Qualitative Factors
Relationships/Communication: NO SURPISES
Governing body
Customers
Staff
Joint venture partners
Community
Legislature, administration, and regulatory
![Page 16: Monitoring Organizational Performance for Utility Governing Boards APPA National Conference June 16, 2009 Carl A. Mycoff](https://reader035.vdocuments.net/reader035/viewer/2022062423/56649cc45503460f9498cca5/html5/thumbnails/16.jpg)
Questions?