2016/ /19 BUSINESS PLAN

Transcription

1 2016/ /19 BUSINESS PLAN March 31, 2016

2 TABLE OF CONTENTS Page No. CHAIR S STATEMENT... (i) STRATEGIC DIRECTION AND CONTEXT... 1 Strategic Direction... 1 Overall Assessment of Strengths, Opportunities, Challenges and Risks... 3 Operating Environment... 4 PERFORMANCE PLAN... 5 Goals, Strategies, Measures and Targets... 5 GOAL ONE: Improve Effectiveness and Efficiency... 5 GOAL TWO: Strengthen Internal Communication and Collaboration... 7 GOAL THREE: Engage Stakeholders... 8 FINANCIAL PLAN... 9 Summary Financial Outlook... 9

3 CHAIR S STATEMENT The British Columbia Utilities Commission business plan was prepared under my direction. This is the first business plan developed by the BCUC in response to a recommendation from the Independent Review of the Commission completed in February 2015 that we should develop a rolling three year strategic and financial business plan with performance targets and use this as a vehicle to dialogue with stakeholders and the provincial government. This plan is more than just a response to the recommendation from the Independent Review. It marks a change in the organization towards more transparent and accountable performance. This plan sets out the goals, strategies and initiatives that will enable us to become more efficient and effective through a strong employee and commissioner workforce that executes its mandate collaboratively with engaged stakeholders. Underlying these strategies and initiatives is the recognition that we must ensure that the current culture of pride in the BCUC is sustained by staff and commissioners. A key objective is to reduce silo thinking and increase communication and collaboration to improve our efficiency and effectiveness and enhance consistency in decision making. This plan was developed by the BCUC senior management team with consideration of the external stakeholder feedback gathered through the independent review process and internal input from staff and commissioners. As the Chair and CEO of the British Columbia Utilities Commission I affirm responsibility for the contents of this plan and for ensuring that the organizational performance is measured and reported on in the Commission s Annual Report. David Morton Chair and CEO (i)

4 1 STRATEGIC DIRECTION AND CONTEXT Strategic Direction Our overall strategic direction for is to increase efficiency and effectiveness through a strong employee and commissioner workforce that executes its mandate collaboratively with engaged stakeholders. This plan sets out the specific goals, strategies and initiatives to achieve this strategic direction. This plan was developed in consideration of our legislative and policy framework, our Mission, Vision and Values, the recommendations in the Final Report of the Independent Review of the British Columbia Utilities Commission and feedback from external stakeholders, our employees and commissioners. Legislative and Policy Framework The British Columbia Utilities Commission has a mandate under the Utilities Commission Act to regulate energy utilities as well as the Insurance Corporation of British Columbia s universal compulsory automobile insurance. The Clean Energy Act and the Insurance Corporation Act provide further legislative direction to the Commission. The government has refined and amended the legislated mandate through its energy policy, including The BC Energy Plan: A Vision for Clean Energy Leadership (The 2007 Energy Plan), BC s Natural Gas Strategy: Fuelling BC s Economy for the Next Decade and Beyond, BC s Liquefied Natural Gas: A Strategy for BC s Newest Industry and through various special directions to the Commission. The Clean Energy Act, the 2007 Energy Plan, the Natural Gas and LNG strategies and various special directions have provided the Commission with complex policies and direction to consider regarding environmental interests and impacts. The Commission is committed to the Taxpayer Accountability Principles, as established by the BC Government, and strives to deliver a cost effective, reliable and accountable service for British Columbians. Mission, Vision and Values The BCUC further defines its mandate through its Mission, Vision and Values. Mission: To regulate energy utilities and basic automobile insurance by ensuring safe, reliable energy services and fair energy and basic auto insurance rates, by seeking input from relevant stakeholders through fair, transparent and inclusive processes; and by issuing well reasoned, clearly written decisions. Vision: To be a trusted and respected regulator that contributes to the well being and long term interests of British Columbians.

5 2 Values: Accessibility We facilitate fair, transparent and inclusive processes that encourage well represented input from relevant stakeholders who possess the information required to present their views effectively. Integrity We lead in a straight forward and consistent manner, by making objective and wellreasoned decisions and by treating stakeholders with dignity and respect. Responsiveness We deliver efficient regulation, aligned with all relevant legislation and regulations and government policies, that takes into account the business needs of regulated entities and the public interest. Innovation We continually strive to develop new efficiencies and innovative solutions in our internal operations and regulatory processes. Excellence We promote excellence by expecting high standards of performance and conduct by regulated entities and by encouraging professional development and excellence in our staff and commissioners. Independent Review of the BCUC In February 2015 an Independent Task Force appointed by the BC Government to review the BCUC released its Final Report. In developing the report the Independent Task Force solicited extensive feedback from a broad range of internal and external BCUC stakeholders. The Final Report contains 35 recommendations directed at both government and the BCUC to improve the efficiency and effectiveness of the Commission. These recommendations were grouped under the following seven key findings on restoring a strong and independent Commission: It is the provincial government's prerogative to set provincial energy policy, to define the Commission's mandate, and to direct the Commission on specific matters; The existence of an independent expert Commission is more important than ever today. By regulating monopolies the BCUC provides an essential public service. Unfortunately the Government and key stakeholders have less confidence in the BCUC than in the past; The Commission needs to be strengthened, and be seen to be strengthened; The Commission staff needs to be strengthened; Commission review processes should be improved; Crown corporations present unique regulatory challenges; and Solutions to most of the Commission s challenges do not require legislative or regulatory changes. The BCUC developed a one year Implementation Plan for in direct response to the recommendations that were directed at the BCUC. During this past year we have successfully completed the majority of the initiatives we set out in the Implementation Plan. We will report on these initiatives in the BCUC Annual Report. However, the process of completing the Implementation Plan initiatives has highlighted that the Commission has to remain focused on continuous improvement of our workforce, regulatory processes and engagement with stakeholders.

6 3 Workplace Environment Survey In October 2015 the BCUC undertook its first employee engagement survey using the Workplace Environment Survey (WES) developed by BC Stats. The WES is a survey designed to utilize feedback from employees to determine the overall health of their work environment. 1 The results of the WES and a subsequent internal feedback session are foundational to the development of this business plan as they represent employees and commissioners views and suggestions on how to achieve our overall goals. Results of the WES showed that Job Suitability, Teamwork, Job Satisfaction, Job Commitment and overall Engagement were strengths in the organization. The results also showed that Vision, Mission & Goals, Pay and Benefits, Workplace Tools, and Executive level and Supervisory level Management were areas to focus on improving. Overall Assessment of Strengths, Opportunities, Challenges and Risks Based on the Independent Review of the Commission and the results of the WES, the BCUC has assessed the following overall strengths, opportunities, challenges, and risks. Strengths and Opportunities The Commission is a strong organization with significant assets in terms of human capital and expertise. The strength of the staff and commissioners in terms of experience and professional knowledge, commitment to their work, and sense of engagement and teamwork is clear. The Commission s ability to manage complex processes and be responsive to stakeholder needs while safeguarding the public interest provides a firm foundation from which future initiatives can be launched. This business plan aims to preserve and enhance these strengths. Challenges and Risks The Commission faces a number of challenges and potential risks that were addressed in the business planning process. Broadly, these are: Support systems address the gaps caused by growth in the number of staff and a complex policy mandate by ensuring that support systems such as human resources, management, and information technology meet the organization s needs and are appropriately resourced. Communication improve communication internally to support learning and collaboration and reach out to stakeholders and the public to better engage them in Commission processes. Teamwork and Collaboration evolve tools and processes to increase collaborative work internally and externally. 1 More information on the WES can be found on the BC Stats website at

7 4 Operating Environment With the appointment of our new Chair/CEO David Morton to the position starting December 31, 2015, and the planned recruitment and instatement of a Chief Operating Officer in 2016, the Commission will undergo significant leadership changes in The Commission will also work under revisions made to sections of the Utilities Commission Act in 2015 that deal with exemptions from the Act, the regulation of BC Hydro, and the province s Mandatory Reliability Standards for the Bulk Electric System. Also related to BC Hydro, the Commission will review two major filings from the utility in : the 2015 Rate Design Application proceeding will be ongoing and the Revenue Requirement Application is expected to be filed in These two regulatory filings will require a significant amount of staff and commissioner effort to address effectively. The anticipated regulatory filings for will create significant pressure for the organization in terms of its need to balance priorities and focus on core work requirements. 2 While the initiatives in this business plan support and will strengthen our regulatory work, they must be scheduled and resourced responsibly. We believe this business plan is a realistic and achievable plan to continue to improve our efficiency and effectiveness and strengthen our employee and commissioner workforce to work collaboratively among ourselves and with engaged stakeholders. 2 Each year the BCUC requests its regulated companies provide it with a list of the anticipated regulatory filings for the coming year. The compiled Anticipated Regulatory Filings List is available on the BCUC website at

8 5 PERFORMANCE PLAN Goals, Strategies, Measures and Targets Based on our assessed strengths, opportunities, challenges and risks, we have developed three goals to achieve our overall strategic direction: 1. Improve effectiveness and efficiency; 2. Strengthen internal communication and collaboration; and 3. Engage stakeholders. For each goal we have developed strategies, initiatives, measures and targets to help achieve our goal and measure our performance. GOAL ONE: Improve Effectiveness and Efficiency Rationale/Discussion The Commission will improve its regulatory and operational effectiveness and efficiency by developing internal and external rules, guidelines and process maps, strengthening the leadership and cohesion of the senior management team, strengthening commissioner recruitment and employee and commissioner retention, and enhancing the learning culture through managing institutional knowledge and continuing to support staff professional development. Strategies and 2016/17 Initiatives Strategies Improve regulatory processes through the development of rules and guidelines 2016/17 Initiatives Complete review and revision of Participant Assistance and Cost Award guidelines and conversion to rules Commence review of the decision reconsideration process and establish related rules Improve internal work processes and resources Complete internal resource allocation review and implement required changes including necessary recruitments Strengthen the effectiveness of senior management Recruit a Chief Operating Officer in accordance with the 2015 revision to the Utilities Commission Act Provide leadership and team building training for senior management

9 6 Strategies Strengthen employee and commissioner recruitment and retention Enhance the organization s learning culture 2016/17 Initiatives Working with government, recruit additional commissioners with necessary, diverse, and high quality skill sets/competencies Develop an in house knowledge sharing framework to leverage internal expertise Subsequent Years Planned Initiatives In subsequent years the Commission expects to continue its initiative to establish and/or clarify rules respecting procedures including the development of revenue requirement and annual report filing guidelines and updating the uniform system of accounting. The Commission plans to strengthen its human resource recruitment and retention in subsequent years through development of a commissioner recruitment framework and enhanced on boarding programs for both staff and commissioners. The Commission also plans to develop an information technology plan to assess IT needs and options to address the identified needs, including potential technology platforms being developed by the Ministry of Justice for the tribunal sector. Performance Measures & Targets 3 Performance Measure 2016/17 Target Decision Cycle Time 90% of decisions issued in 90 calendar days or less Other Proceedings Total Cycle Time Maximum annual average of 40 calendar days Total Expenditure per Capita No target. Indicative measure. 4 Energy Regulation Expenditure per Gigajoule No target. Indicative measure. 4 3 The BCUC s Performance Measures and Targets were developed through consultation with stakeholders as defined and reported in the BCUC Performance Measures and Targets Final Report, December 14, 2015, available at: 4 Indicative performance measures do not have targets due to the potential for erratic trends caused by external factors outside of Commission control. Targets may be developed for these indicative performance measures once more historical data is obtained.

10 7 GOAL TWO: Strengthen Internal Communication and Collaboration Rationale/Discussion The Workplace Environment Survey highlighted the need to continue to strengthen communication and collaboration among teams and divisions at the Commission. The Commission will work towards this by ensuring that work is aligned around the Commission s Mission, Vision and Values and that staff and commissioners have the tools and skills required to work collaboratively. Strategies and 2016/17 Initiatives Strategies Improve organizational communication about our Mission, Vision and Values and performance metrics 2016/17 Initiatives Continue performance measurement work to develop internal measures and targets Develop better internal awareness of our Vision, Mission and Values Strengthen the effectiveness of staff and commissioner teams by developing tools and processes and providing role clarity to support collaborative work Commence planning for staff team building workshops Subsequent Years Planned Initiatives In subsequent years the Commission expects to implement team building workshops and an internal team development framework to enhance collaborative work. Performance Measures & Targets. Performance Measure 2016/17 Target Employee Engagement Baseline (73) / Benchmark 5 5 The Commission s 2015 baseline score was 73 and the benchmark is set to the most recent BC Public Service WES Engagement score that is available.

11 8 GOAL THREE: Engage Stakeholders Rationale/Discussion The work of the Commission is directed towards a broad public benefit and involves a number of stakeholders including government, regulated companies, ratepayers and proceeding participants. The Commission will develop channels for and undertake appropriate and meaningful engagement with stakeholders. Strategies Establish and maintain effective and accessible communication and feedback mechanisms with stakeholders 2016/17 Initiatives Continue performance measurement work to develop methods to obtain stakeholder feedback on the Commission s performance Begin planning to develop a public relations strategy to address issues such as public engagement, public notice channels and use of social media Encourage and facilitate effective participation by stakeholders Ensure Participant Assistance/Cost Awards are provided in a timely and consistent manner Ensure complaints and enquiries are responded to in a timely manner Work with government to address resource and budget issues Work with government towards agreement on financial management Subsequent Years Planned Initiatives In subsequent years the Commission expects to determine initiatives to encourage and facilitate effective participation by stakeholders and complete the development and implementation of a public relations strategy. Performance Measures Performance Measure Complaint and Enquiry Response Time Participant Assistance/Cost Award Cycle Time 2016/17 Target 85% in 5 business days or less 100% issued in 60 calendar days or less

12 9 FINANCIAL PLAN Summary Financial Outlook Actual Actual Projected Forecast Planned Budget Forecast BCUC Expenses $7,619,441 $6,561,624 $6,890,000 $8,946,562 $9,000,000 BCUC Strategic Initiatives $201,250 $390,000 Total Costs $7,619,441 $6,561,624 $6,890,000 $9,147,812 $9,390,000 The BCUC does not receive funding from the provincial government; we have been self funded since BCUC costs are recovered primarily through a levy on its regulated entities. The BCUC is forecasting a surplus of $1,000,000 in that will reduce budgeted recoveries in This surplus is a result of delays in undertaking some of the year s planned strategic initiatives 6 and delays in commencing a number of significant proceedings. The original budget included $445,256 to initiate specific BCUC strategic initiatives set out in that year s Implementation Plan. While many initiatives were successfully completed during fiscal , some financially significant items, such as the hiring of a Chief Operating Officer, were deferred pending the appointment of the new Chair and CEO. Further, a number of large applications originally expected to be filed in were postponed and accordingly transferred out of the year s budget. Key Forecast Assumptions The BCUC s budget has been prepared to address the following key items: The addition of a Chief Operating Officer in accordance with the 2015 revision to the Utilities Commission Act. The addition of a number of positions to address matters such as Performance Measures and Targets, Human Resources, and regulatory analyst needs. Increases to address salary range and compensation disparity. 7 Increases to address commissioner compensation matters impacting recruitment and retention of qualified professionals. 7 Increases to Expenses and Benefits to support organizational changes. 6 Strategic initiatives are initiatives included in the BCUC s Implementation Plan or this business plan. 7 Note that implementing staff and commissioner compensation changes will require the participation of the Public Sector Employee s Council.

13 10 Increases to Building Occupancy Charges in accordance with the Commission s lease agreement and inflation. Inclusion of strategic initiatives which are the direct estimated costs for the initiatives set out in this business plan for each year. Forecast Risks and Sensitivities The BCUC budget is subject to certain risks and sensitivities. First and foremost, not all filings from the companies regulated by the Commission can be anticipated and those which can be anticipated are not always filed as per the forecast, resulting in inevitable externally driven volatility. This leaves the BCUC financially vulnerable if regulated entities file more applications than predicted. In addition, the BCUC intends to implement more strategic initiatives in upcoming fiscal years. Implementation timelines and expenses are subject to variation, as actual effort required for initiative completion may be lower or higher than forecasted. The inherent volatilities described above do not vary in any significant ways between planning years or from the previous BCUC budgets. Keys assumptions guiding the BCUC budget are expected to remain the same. No recent government direction has changed the BCUC s forecast. In the event of deferred revenues or expenses, the deferred amount will be applied as a credit or debit to the companies regulated by the BCUC in the levy order for the following fiscal year.