Strategic Plan (VERSION #1 PROPOSED PLAN) 1. Key Corporate Metrics #3 (change indicated in yellow) a. Changed on to or.

Transcription

1 Strategic Plan (VERSION #1 PROPOSED PLAN) Revisions Made: 1. Key Corporate Metrics #3 (change indicated in yellow) a. Changed on to or. 2. Goal #2, item #2.A. (change indicated in yellow) a. Changed on to or.

2 Pedernales Electric Cooperative Strategic Plan Vision, Mission and Values Statements, Key Corporate Metrics, Board Goals and Adopted October 8-9, 2012 Reaffirmed October 7, 2013 Updated March 9, 2015 (Red Line Version) Vision Statement Our PEC family is committed to serving our communities through excellent member services and safe, reliable energy services at a competitive price; to guiding responsible stewardship of our resources; and providing a rewarding, fair, and safe work place for our employees. Mission Statement To fulfill our Vision, we will be an organization based on innovation and excellence. Values Statement S- Safety (employees are expected to create a safe working environment) T- Trust (membership and employee/board/management, openness and transparency, confidentiality, member communications) A - Accountability and Integrity (honesty, ethics, conflict of interest, codes of conduct, delivery of our promises, financial accountability) R - Respect (people, environment, law, and a diverse workplace and law) S - Service Key Corporate Metrics 1. Develop and maintain a safety culture and program that results in no employee lost time accidents Achieve and maintain a low cost position ranked within the top 10% (lowest) of all Texas Cooperatives, achieve and maintain rates lower than the state average for all public power, all distribution cooperative utilities, and central Texas Retail Electric Providers (REP) for average price paid for residential service measured at 1,000 kwh by Become the lowest cost electric provider among current LCRA cooperatives by 12/31/2020 or sooner. Page 1

3 2. Achieve and maintain a 30% capacity renewable portfolio goal (through customer-sited, community and utility scale solar, hydro, wind and other renewable resources) by 12/31/ Utilizing cost-beneficial solutions without member subsidy, achieve and maintain a renewable energy portfolio meeting or exceeding the greater of the Texas average (ERCOT) on or the national average as projected by US Energy Information Administration - EIA (through solutions facilitating or advancing customer-sited distributed generation, community and utility scale solar, hydro, wind, purchase power agreements, and other renewable resources) by 12/31/ Achieve and maintain a goal of annual target cost reductions in transmission and related peak power expenses 20% of growth offset of Co-op s 2-5% measured by coincident peak demand reductions using by energy efficiency, and demand side management and load shaping programs allowing members to benefit from avoided transmission and energy costs during peakl ERCOT conditions by 12/31/ Achieve and maintain Maintainreliability and resiliency standards of System Average Interruption Duration Index (SAIDI) of 60 minutes or less annually and an average System Average Interruption Frequency Index (SAIFI) of 1.0 or less per year. a position of being in the top 10% of all Texas Co-ops for electric service reliability Maintain Achieve an American Customer Satisfaction Index (ACSI) ACSI score that ranks in the top quartile for all utilities by 12/31/ Meet financial targets of equity to assets ratio of 35% to 45%, maintain or exceed a Debt Service Coverage (DSC) of 1.8 or higher annually, maintain a year capital credit retirement cycle.meet lender requirements: Bond Holders - DSC of 1.15 annually, CFC - minimum 1.35 MDSC two of the last three years. Board Goals and Goal #1: Employees: Maintain a workforce of employees who: Perform their duties and responsibilities in a safe and competent manner Possess current skills, knowledge and abilities, and are provided with opportunities for personal and career development. Are motivated to make decisions and hold themselves accountable, and are supported by their supervisor who provides constructive feedback Have a high degree of trust with management and the board Are fairly and competitively compensated commensurate with demonstrated performance Page 2

4 1. Continue to update the Cooperative s Complete and implement a new compensation plan. 2. Continue to implement and expand the scope of employee training and leadership development programs. 3. Complete an assessment of safety practices and implement a plan to improve safety Key Performance Indicators (KPIs). 4. Utilize programs to consistently and effectively communicate with employees.enhance the utilization of the Bi-weekly Update to consistently communicate Cooperative initiatives, opportunities and expectations. 5. Continue to enhance employee engagement and internal communications efforts on Coop issues. 6. Complete a general review of all policies for clarity, applicability and consistent use. Goal #2: Rates and Financial Metrics Costs: Achieve and maintain a low cost position defined by Key Corporate Metric #2.Establish PEC as the lowest cost provider of electric service among all current LCRA cooperatives. 1. Continue to evaluate the competitive market and retail customer choice as a policy option for the Board to consider as conditions change.complete an analysis of the customer choice options available to PEC. Based on the outcomes of this analysis, develop the Cooperative s position and communication message Maintain and update Develop an the equity management plan and related policy Develop scenarios for achieving and maintaining a low cost position ranked within the top 10% (lowest) of all Texas Cooperatives, achieve and maintain rates lower than the state average for all public power, all distribution cooperative utilities, and central Texas REPs for average price for residential service measured at 1,000 kwh by 12/31/2020 or sooner the position as the lowest cost electric service provider among all current LCRA Cooperatives while adhering to the following guidelines: a. Achieve and maintain the 30% of capacity renewable portfolio goal (through customer-sited, community and utility scale solar, hydro, wind and other renewable resources) by 12/31/2020 a. Utilizing cost-beneficial solutions without member subsidy, achieve and maintain a renewable energy portfolio meeting or exceeding the greater of the Texas average (ERCOT) on or the national average as projected by US Energy Information Administration - EIA (through solutions facilitating or advancing customer-sited distributed generation, community and utility scale solar, hydro, wind, purchase power agreements, and other renewable resources) by 12/31/2020. Page 3

5 b. Achieve and maintain a goal of annual target cost reductions in transmission and related peak power expenses of 2-5% measured by coincident peak demand reductions using energy efficiency, demand side management and load shaping programs allowing members to benefit from avoided transmission and energy costs during peak ERCOT conditions by 12/31/2018. b.c. Achieve and maintain reliability and resiliency standards of SAIDI of 60 minutes or less annually and an average SAIFI of 1.0 or less per year.maintain the Cooperative s position as being in the top 10% of all Texas Cooperatives for electric service reliability c.d. Maintain Achieve an ACSI score that places the Cooperative in the top quartile for all utilities. by 12/31/2014 d.e. Meet financial targets of equity to assets ratio of 35% to 45%, maintain or exceed a DSC of 1.8 or higher annually, maintain a year capital credit retirement cycle.lender requirements (Bond Holders - DSC of 1.15 annually, CFC - minimum 1.35 MDSC two of the last three years) and maintain financial soundness e.f. Maintain the Cooperative s commitment to community f.g. No involuntary employee layoffs will be implemented h. Employees are Ensure that all employees are fairly and competitively compensated commensurate with demonstrated performance 3. Continue to evaluate the competitive market and retail customer choice as a policy option for the Board to consider as conditions change. 4. Complete a cost of service study and retail rate design study that addresses time-of-use rates, life line rates, prepaid metering, renewables, energy efficiency and other related rate issues. Identify needed policyand process changed required and/or mandated policies and process changes Reduce controllable costs per consumer to a maximum of $375 - $385 or lower by Develop a plan to implement the Cooperative-wide facilities plan.complete a comprehensive Johnson City headquarters facilities study to optimize existing space. Goal #3: Member Satisfaction: Achieve service excellence by: Leveraging technology Increasing employee efficiency Increasing member self-service capabilities Enhancing member communications Introducing innovative services and products Page 4

6 Engaging members in cooperative programs and activities. Maintaining system reliability, keeping outages to a minimum and restoring service safely and quickly Providing meaningful community engagement and support 1. Complete efficiency reviews of member services for industry best practices. 2. Establish a program to align ACSI and Interactive scores with key corporate metrics. 3. Implement programs to align member services with District member services to improve reliability and service. 4. Identify, assess and implement innovative services and products, including but not limited to member self-serve programs, IVR enhancements, phone system, MDM, a mobile-optimized web site and outage map. 5. Develop and offer progressive economic development and community development programs and build relationships with key community stakeholders. 6. Continue to research member preferences and perceptions regarding communications and other member services. 7. Complete the transition of the San Marcos Call center to the Johnson City headquarters. 8. Quantify the extent of and develop a plan to systematically replace infrastructure as necessary to maintain system reliability. 9. Develop an overarching technology plan and road map that assesses and implements enhancements to existing systems Identify, assess and implement enhancements to the existing such as SCADA, and distribution automation, telecommunications, metyering and others to improve system operations and reliability Develop and implement an Operation Round-Up program. Please note: The amendment to initiative #9 was not discussed by the Board during its session. However, during the initial review of the session report, the CEO and Consultant discussed this amendment and felt it was appropriate to recommend to the Board. Goal #4: Power Supply: Achieve and maintain a low cost energy portfolio that is balanced by both energy source and energy provider with a preference for Texas-based clean energy when cost objectives are met. Directly support, facilitate and partner with local cooperative members in helping them meet their individual home or business aspirations for distributed generation, energy efficiency and demand side management.assure the Cooperative s Page 5

7 need for adequate and reliable wholesale power is achieved in a manner that balances: Costs and market risks Renewable portfolio goals Energy efficiency goals Diversity of source and contract length Promotion of distributed generation 1. Assess the applicability of the current Resource Planning Policy and develop a plan that leverages the terms and conditions of the current LCRA contract (ex. load release policy, progressive power) and accomplishes the parameters of this goal. 2. Complete and update, as appropriate, an Integrated Resource Plan (IRP) Continue to utilize programs and partnerships to promote distributed generation Enhance and expand the current offering of energy efficiency and demand side management programs and measurement and verification processes. Goal #5: Ensure the implementation and execution of the necessary policies and practices that effectively deter, detect, prevent and manage risks originating from within and outside the Cooperative. This is a new goal and set of management initiatives. 1. Create and implement an Enterprise-Wide Risk Management system that identifies, assesses, manages (through strategies to either avoid, transfer, mitigate and / or accept the risk), monitors and communicates risk. 2. Build and maintain a robust emergency response and disaster preparedness programs. 3. Develop and implement an Internal Control Plan to identify any weaknesses within the Cooperative s system of internal controls and the execution of those controls. Address any identified weaknesses as appropriate. 4. Evaluate the Cooperative s current policies and practices to protect against the risk of potential fraud that could originate from within the Cooperative or from sources outside the Cooperative. Develop and implement a fraud prevention plan to improve and maintain these systems. 5. Evaluate and enhance, as appropriate, the Cooperative s legal and regulatory compliance program. Page 6

8 6. Continue to inculcate a Culture of Safety throughout the Cooperative and implement improvements to safety policies and programs. 7. Evaluate the Cooperative s current cyber security risks and the systems currently put in place by the Cooperative and third party providers of information technology services and products to the Cooperative to identify these risks. Develop and implement a cybersecurity plan to improve and maintain these systems. 8. Evaluate the Cooperative s current physical security risks and the systems currently put in place by the Cooperative to address these risks. Develop and implement a physical security plan to improve and maintain these systems. Goal #6: Democratic Control and Governance by: Annual review, as needed, of the Cooperative s Strategic Plan. Develop and implement a plan to determine director district boundaries on a regular basis. Maintaining director compensation at or below national peer averages. Remain informed of local and state issues that impact PEC s policies and programs. Provide members with timely information updates and access to PEC programs and activities and encourage member participation. Note: Goal #6 is a compilation which consolidates ideas discussed during strategy sessions that were not included in Scott Luecal s initial version (March 9, 2015). Page 7