OSA Metrics and 2014 Incentive Compensation Board of Trustees Contract Oversight Committee Meeting

Transcription

1 OSA Metrics and 2014 Incentive Compensation Board of Trustees Contract Oversight Committee Meeting December 17, 2014

2 OSA Performance Metrics Goal: 1 st quartile industry performance Categories: Cost Management Customer Satisfaction Technical & Regulatory (Reliability and Safety) Financial Performance (Revenue and Energy Efficiency) Incentive pool of $5.44 million per year (2011 $) in ($8.7 million beginning in 2016) for achieving metric targets Eligibility requires satisfaction of cost management metric (expenditures 102% of Budgets) 2

3 LIPA Staff Oversight of PSEG LI Performance Monthly review of performance levels PSEG LI prepares detailed scorecard report Meeting with LIPA staff to review performance and change initiatives Ongoing review of operational reports and systems Process reviews of PSEG LI performance reporting Detailed review of performance reporting from field operations sources through end report Validates calculations, data exclusions, controls Reviews conducted for each metric in first year of use or when a process or technology change is implemented 3

4 2014 Process Reviews Process Review Area Metrics Status Reliability SAIDI ( system average outage duration) Complete - August SAIFI ( frequency of outages per customer) CAIDI ( average outage duration per customer) Customer Satisfaction After call satisfaction surveys (residential customers) Complete - December After call satisfaction surveys (business customers) Personal contact surveys Average speed of answer in call center Customer call abandonment rate Self service customer service transactions completed In progress - January Financial Performance Days sales outstanding (measures speed at which customers pay) Net write offs per $100 revenue Complete - December Actual meter reading rate Timely billing (% of billing exceptions completed in 3 days) In progress - January Safety OSHA recordable employee injury incident rate In progress - January Days away from work after OSHA incident 4

5 Process Review Example Reliability Metrics Review included: Interviews with key PSEG LI (formerly NGrid) operations staff to understand outage data reporting process Detailed review of the data flow for 64 specific outages from 2013 including initial reports from field through official record of outage duration Follow up with operations staff to discuss data Findings The outage duration initially reported by operators differed from the final reporting in 44 instances NGrid used QA process to validate data reported by operators data such as restoration time can be changed and rationale for changes was to be documented Documentation of changes for the outages cited was not available to PSEG LI LIPA staff incorporated these findings in an audit report 5

6 Process Review Example Reliability Metrics LIPA Audit Recommendations: PSEG LI should review 2014 outage data reported to ensure accuracy PSEG LI should review outage reporting process to ensure integrity of data PSEG LI should review impact of the new Outage Management System implemented in August 2014 on the outage data and performance levels for reliability metrics (as called for in OSA) 6

7 Process Review Example Reliability Metrics PSEG LI Action Plan: Review the "pre-oms" and post-oms 2014 outage data to verify performance and share results with LIPA Staff. Document the new OMS system approval and sign-off process. Hire a consultant to perform the following scope of work: A comprehensive review of the differences between the two systems and how their differences may impact the calculation of indices An estimate of the overall impact on the reliability indices; Recommendations for appropriate quality assurance measures to ensure the accuracy of the data produced by the new OMS, Based on the review and findings of the consultant, PSEG LI will review the findings with LIPA and propose an adjustment methodology per the OSA. 7

8 Incentive Payment Validation Steps Actions Responsible Party Target Date Complete remaining process reviews LIPA 1/31/2015 Complete actions from reliability metric process review PSEG 1/31/2015 Complete 3 rd party audit of load reduction from EE programs PSEG 3/31/2015 Submit calculation of incentive compensation and supporting data PSEG 3/31/2015 Validate performance and PSEG LI calculation - submit evaluation to DPS Review PSEG submission and LIPA evaluation - submit recommendation to LIPA Pay undisputed amounts LIPA DPS LIPA 45 days after submission 75 days after submission 90 days after submission 8