Administrative Docket PC16 Baltimore Gas and Electric Company Supplier Diversity Annual Plan for 2013

Transcription

1 Kimberly A. Curry Assistant General Cunsel 2 Center Plaza 110 W. Fayette Street Baltimre, Maryland Fax kimberly.a.curry@cnstellatin.cm Via Electrnic Filing February 15, 2013 David J. Cllins, Executive Secretary Maryland Public Service Cmmissin William Dnald Schaefer Twer 6 St. Paul Street, 16 th Flr Baltimre, MD Re: Administrative Dcket PC16 Baltimre Gas and Electric Cmpany Supplier Diversity Annual Plan fr 2013 Dear Mr. Cllins: Enclsed please find Baltimre Gas and Electric Cmpany s (BGE) 2013 Annual Plan fr ur Supplier Diversity Prgram, which was electrnically filed this date. BGE will hand deliver an riginal and 17 cpies by nn n the next business day in accrdance with Cmmissin guidelines fr electrnic filing. The Maillg number assigned t this filing will be indicated abve fr yur reference. KAC:jdb Enclsures Respectfully submitted, /s/ Kimberly A. Curry Kimberly A. Curry

2 SUPPLIER DIVERSITY PROGRAM 2013 ANNUAL PLAN SUBMITTED TO: Mr. David Cllins Executive Secretary Maryland Public Service Cmmissin 6 St. Paul Street, 16 th Flr Baltimre, Maryland SUBMITTED BY: Frank Kelly Manager, Diversity Empwerment Baltimre Gas & Electric 2900 Lrd Baltimre Drive Baltimre, Maryland (410) ffice frank.kelly@cnstellatin.cm DATE: February 15, 2013

3 Supplier Diversity Prgram 2013 Supplier Diversity Prgram Annual Plan 2013 February 15,

4 Supplier Diversity Prgram 2013 Table f Cntents Table f Cntents OVERVIEW SHORT, MID, AND LONG TERM GOALS Shrt-Term Plans Mid and Lng Term Plans PLANNED PROGRAM ACTIVITIES Internal Activities External Activities PLANS FOR IDENTIFYING AND DEVELOPING DIVERSE SUPPLIERS IN CATEGORIES WHERE USE HAS BEEN LOW OR WHERE DIVERSE SUPPLIERS ARE UNAVAILABLE PLANS FOR SUBCONTRACTING PLANS FOR COMPLYING WITH DIVERSE SUPPLIER PROGRAM GUIDELINES

5 Supplier Diversity Prgram OVERVIEW On March 12, 2012, Exeln Crpratin and Cnstellatin annunced a merger, which created the leading U.S. cmpetitive energy prvider with ne f the industry s cleanest and lwest-cst pwer generatin fleets. Additinally, Exeln nw manages ne f the largest retail custmer bases in the natin. The new ecnmies f scale result in greater ecnmic pprtunities, an enhanced cmpetitive psitin fr Exeln and its diverse suppliers, and the increased ptential fr mutual benefit. The fcus n supplier diversity remains a crprate pririty. Subsequent t the merger, the Exeln Diverse Empwerment prcess (EDBE) remains ne designed t identify high ptential minrity businesses and assist in grwing these cmpanies t reginally and natinally cmpetitive psitins. Exeln has already seen psitive effects t the EDBE prcess directly related t the merger. Exeln s diverse suppliers have an expanded market place t prvide gds and services t Exeln s utilities, which are headquartered in three f the natin s largest and mst ethnically diverse cities (Baltimre, Chicag and Philadelphia), and retail peratins thrughut the cuntry. This cmbinatin f ecnmies f scale and gegraphic expansin has created significant financial pprtunities fr ur diverse suppliers. Fllwing the merger, Baltimre Gas and Electric Cmpany (BGE) intends t build n its 2012 effrts. Cnsiderable effrt was made during the mst recent gal setting cycle t build pst-merger synergy acrss the business, gaining greater understanding f spend and ensuring wnership and accuntability fr supplier diversity that extends beynd the Supply Chain rganizatin. This prcess is designed t establish and maintain wrld-class supplier diversity initiatives and results. On an annual basis, BGE uses histrical infrmatin, as well as input frm Finance regarding prjected spend t reassess cmpany gals. Every effrt is made t ensure that diverse suppliers have the maximum pprtunity t cnduct business with BGE; and as a result, BGE has develped reasnable yet challenging supplier diversity gals. 4

6 Supplier Diversity Prgram SHORT, MID, AND LONG TERM GOALS The gal f BGE s supplier diversity prcess is t ensure that varius diverse suppliers are included in the BGE prcurement prcess. We seek t: 1. Prvide purchasing pprtunities fr diverse suppliers; 2. Identify qualified diverse suppliers that ffer high-quality, cst-cmpetitive gds and services, and matching them with the needs f the cmpany; 3. Ensure that all qualified diverse suppliers have an pprtunity t cnduct business with BGE; 4. Sustain supplier diversity mmentum; and 5. Becme a recgnized industry leader in diverse supplier inclusin as a natural part f ur business culture. BGE submits the fllwing gal fr 2013: 2013 BGE Prjected Spend/Gal Ttal BGE Prjected Spend $850M Supplier Diversity 2013 Gal 15% Supplier Diversity 2013 Gal ($) $128M (See attachments E1, E-2 and E-3 fr shrt-mid and lng-term gals) 2.1 Shrt-Term Plans In 2013, BGE will fcus its supplier diversity prcess n the fllwing: Wrk within the Exeln Surcing Prcess, which incrprates BGE supply fcused Diversity Champins t identify and address cntract pprtunities; Start identifying areas frm the new and emerging technlgies space where ptential diverse suppliers can be develped; Develp diverse suppliers, especially in histrically underrepresented categries; Cntinue t encurage and assist nn-diverse prime suppliers t develp subcntracting plans in an effrt f increasing the utilizatin f diverse suppliers; Engage with Service Disabled Veteran Organizatin t increase spend with Service Disabled Veteran Owned es (SDVOBs); Implementing a supplier develpment prgram t help develp and ensure success with qualified diverse suppliers; Cntinue t enfrce subcntracting requirements fr reprting results, particularly in underutilized categries such as cnstructin and prfessinal services; Cntinue t include prime cntractrs in pprtunities t attend business develpment wrkshps with ptential diverse subcntractrs, prcurement agents and key decisinmakers; Cntinue t advcate diverse suppliers t ther rganizatins, e.g. Maryland Utility Frum, Prime Suppliers, etc.; and Cntinue supprting effrts with the Maryland Utility Frum t advance supplier diversity. 5

7 Supplier Diversity Prgram Mid and Lng Term Plans Create strategic relatinships and develp diverse suppliers in underutilized categries; Cntinue t implement a cmprehensive marketing, training, and cmmunicatins plan, which prmtes alliances with lcal and natinal diverse supplier advcacy rganizatins; Cntinue t seek additinal prime and 2 nd tier cntracting pprtunities; Hst wrkshps with prime and diverse suppliers t grw BGE s cntract inclusin pprtunities; Mnitr the prgress and utilizatin f diverse cntractrs n a mnthly basis; Cntinual imprvement f internal reprting fr better tracking f diverse spend and pprtunity; Benchmark best practices amngst industry leading supplier diversity prgrams; Encurage and supprt diverse suppliers t implement their wn green energy initiatives; and Cntinue t invite prime cntractrs t attend technical assistance and business develpment wrkshps with ptential diverse subcntractrs, categry managers, and key decisin-makers PLANNED PROGRAM ACTIVITIES The Supplier Diversity Office plans t cnduct several innvative activities in 2013 t further encurage supplier diversity in the bidding and prcuring f prducts and services. Planned activities include: 3.1 Internal Activities Cntinue t strengthen internal stakehlder relatinships thrugh BGE ttal enterprise value creatin; Utilize internal cmmunicatin vehicles t educate and infrm emplyees n supplier diversity strategy and prcess; Wrk with Categry Managers and Supplier Diversity Champins t identify and address cntract pprtunities. Cntinue t push fr imprved subcntracting results, particularly in underutilized categries; Cntinue t imprve prcesses and systems t mre effectively capture diversity data t help the cmpany measure perfrmance against gals; Cntinue t encurage and prmte the use f the nline Tier 2 reprting system t hld ur prime suppliers accuntable fr supprting ur supplier diversity bjectives ; Prvide training fr new emplyees with prcurement respnsibility n hw supplier diversity is integrated int the surcing prcess; Implement sftware t track diverse supplier certificatins; 6

8 Supplier Diversity Prgram 2013 Enhance the Supplier Diversity website by including an imprved calendar f events, and a Tier 2 Prgram write-up; and Investigate the feasibility f a scial media strategy/presence fr BGE s Supplier Diversity Office. 3.2 External Activities Cntinue utreach effrts and cllabrate with lcal and natinal advcacy rganizatins t expand the utilizatin f diverse suppliers including, but nt limited t, state and lcal, municipal minrity cntracting assciatin, and multiethnic rganizatins; Attend Service Disabled Veteran events and build relatinships t identify ptential suppliers; Expand effrts in supplier develpment t help prepare diverse suppliers t cmpete mre successfully fr new business; and Prmte BGE supplier diversity initiatives in lcal publicatins and diverse supplier directries. 4.0 PLANS FOR IDENTIFYING AND DEVELOPING DIVERSE SUPPLIERS IN CATEGORIES WHERE USE HAS BEEN LOW OR WHERE DIVERSE SUPPLIERS ARE UNAVAILABLE T increase diverse supplier pprtunities in lw-use areas in 2013, BGE plans t: Target high-ptential diverse suppliers fr pprtunities in lw utilizatin categries; areas such as cnstructin and prfessinal services; Cnduct meetings with tp prime suppliers t increase their subcntracting perfrmance; Invite Surcing and key decisin-makers t netwrking wrkshps with diverse suppliers; Encurage emerging reginal diverse suppliers t btain certificatin thrugh recgnized third party rganizatins; Cntinue t prvide mnthly diverse supplier data reprts t executive leadership; and Attend utreach events and build relatinships with diverse suppliers. T increase diverse supplier pprtunities where diverse suppliers are currently unavailable, BGE plans t: Wrk with reginal and natinal advcacy rganizatins t identify qualified diverse suppliers: Elite Service Disabled Veterans Owned (ESDVOB) Maryland Washingtn Minrity Cntractrs Assciatin (MWMCA) MD/DC Minrity Supplier Develpment Cuncil (MD/DC MSDC) Natinal Minrity Supplier Develpment Cuncil (NMSDC and Reginal Affiliates) Gvernrs Office f Minrity Affairs (GOMA) Natinal Assciatin f Regulatry Utility Cmmissiners (NARUC) 7

9 Supplier Diversity Prgram 2013 Maryland Chamber f Cmmerce Wmen s Netwrk Cuncil (WBENC) Rainbw PUSH Trade Bureau 5.0 PLANS FOR SUBCONTRACTING Increasing inclusin and subcntracting standards where apprpriate. T increase subcntracting dllars fr diverse suppliers in 2013, BGE plans t: Revisit current cntracts and cnduct meetings with tp prime suppliers with limited r n Tier 2 diverse spend t maximize diverse subcntracting pprtunities; Participate in planning and pre-bid meetings t ensure diverse supplier participatin; Encurage diverse subcntractrs wh are nt currently certified t seek certificatin; Require nn diverse bidders t submit subcntracting plans in all requests fr prpsals (RFPs); Invite nn-diverse prime cntractrs t attend netwrking/utreach events t help them identify ptential subcntractrs; Prvide quarterly subcntracting results t Supply Chain (Surcing Persnnel, Surcing Management, and Supply Chain leaders); and Mnitr diverse subcntracting cmmitments and perfrmance. 6.0 PLANS FOR COMPLYING WITH DIVERSE SUPPLIER PROGRAM GUIDELINES BGE will cntinue its effrts t meet r exceed all requirements established by the Memrandum f Understanding. 8

10 Public Service Cmmissin f Maryland Supplier Diversity Annual Reprt f Shrt Term Gals (MOU Sec. 7.1) Attachment E-1 Utility Name: BGE - Nn Gas Fr the Reprting Year: 2013 (A) (B) (C) (D) (E) (F) (G) (H) (I) Year Minrity Wmen Disabled Veteran Nt fr Prfit Wrkshp Ttal ($) Ttal by Spend Ttal Utility Prcurement ($) Percentage f Diverse Supplier Spend t Ttal Utility Prcurement % 6.5% 1.0% 0.0% $ 103,500, % $ 690,000, %

11 Public Service Cmmissin f Maryland Supplier Diversity Annual Reprt f Mid-Term Gals (MOU Sec. 7.1) Attachment E-2 Utility Name: BGE - Nn Gas Fr the Reprting Year: 2015 (A) (B) (C) (D) (E) (F) (G) (H) (I) Year Minrity Wmen Disabled Veteran Nt fr Prfit Wrkshp Ttal ($) Ttal by Spend Ttal Utility Prcurement ($) Percentage f Diverse Supplier Spend t Ttal Utility Prcurement % 6.0% 1.5% 0.0% $ 125,041, % $ 735,540, %

12 Public Service Cmmissin f Maryland Supplier Diversity Annual Reprt f Lng Term Gals (MOU Sec. 7.1) Attachment E-3 Utility Name: BGE - Nn Gas Fr the Reprting Year: 2012 (A) (B) (C) (D) (E) (F) (G) (H) (I) Year Minrity Wmen Disabled Veteran Nt fr Prfit Wrkshp Ttal ($) Ttal by Spend Ttal Utility Prcurement ($) Percentage f Diverse Supplier Spend t Ttal Utility Prcurement % 5.5% 2.0% 0.0% $ 148,969, % $ 784,050, %

13 Public Service Cmmissin f Maryland Supplier Diversity Annual Reprt f Shrt Term Gals (MOU Sec. 7.1) Attachment E-1 Utility Name: BGE Gas Supply Fr the Reprting Year: 2013 (A) (B) (C) (D) (E) (F) (G) (H) (I) Year Minrity Wmen Disabled Veteran Nt fr Prfit Wrkshp Ttal ($) Ttal by Spend Ttal Utility Prcurement ($) Percentage f Diverse Supplier Spend t Ttal Utility Prcurement % 7.2% 0.0% 0.0% 25,223, % 160,371, % The frecasted gal remains cnstant due t the impact f weather, demand fr purchasing natural gas, and price vlatility, as well as scarcity f cmmdity specific diverse suppliers.

14 Public Service Cmmissin f Maryland Supplier Diversity Annual Reprt f Mid-Term Gals (MOU Sec. 7.1) Attachment E-2 Utility Name: BGE Gas Supply Fr the Reprting Year: 2015 (A) (B) (C) (D) (E) (F) (G) (H) (I) Year Minrity Wmen Disabled Veteran Nt fr Prfit Wrkshp Ttal ($) Ttal by Spend Ttal Utility Prcurement ($) Percentage f Diverse Supplier Spend t Ttal Utility Prcurement % 7.2% 0.0% 0.0% 25,223, % 160,371, % The frecasted gal remains cnstant due t the impact f weather, demand fr purchasing natural gas, and price vlatility, as well as scarcity f cmmdity specific diverse suppliers.

15 Public Service Cmmissin f Maryland Supplier Diversity Annual Reprt f Lng Term Gals (MOU Sec. 7.1) Attachment E-3 Utility Name: BGE Gas Supply Fr the Reprting Year: 2017 (A) (B) (C) (D) (E) (F) (G) (H) (I) Year Minrity Wmen Disabled Veteran Nt fr Prfit Wrkshp Ttal ($) Ttal by Spend Ttal Utility Prcurement ($) Percentage f Diverse Supplier Spend t Ttal Utility Prcurement % 7.2% 0.0% 0.0% 25,223, % 160,371, % The frecasted gal remains cnstant due t the impact f weather, demand fr purchasing natural gas, and price vlatility, as well as scarcity f cmmdity specific diverse suppliers.