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The flagship publication of the RMEL Electric Energy Association. Produced for members, the magazine highlights and discusses critical energy issues.
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spotlight on critical energy issues
electric energy crystal ball
ISSUE 1 / 2013 www.rMel.org
the future of coalIndustry Lessons from HurrIcane sandy
Xcel energy’s responsible Messagecustomer of tHe future
coMMunity outreach ahead of its tiMefcc PoLe attacHment uPdate
ATLANTA | CHICAGO | DENVER | HOUSTON | MESA | MINNEAPOLIS | OAKLAND | PORTLAND | RENO | SACRAMENTOSALT LAKE CITY | SAN DIEGO | SEATTLE | TACOMA | TEMPE | TUCSON | TORONTO | VANCOUVER | SANTIAGO | LONDON
amec.com/power 770.810.9698 [email protected]
AMEC is a focused supplier of engineering, procurement, construction (EPC), environmental and project
management services employing more than 29,000 people in 40 countries worldwide. With annual revenues of more than US$5.2 billion, AMEC designs, procures and constructs strategic and complex assets for its clients. AMEC provides these services to the Power, Nuclear, Transmission & Distribution, Renewables, and Bioprocess industries. AMEC offers full service capabilities from initial planning to EPC and EPCM services to the power industry.
Fossil
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Transmission & Substations
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4 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
Departments 06 President’s Message 08 Board of Directors and
Foundation Board of Directors
10 2013 Spring Management, Engineering and Operations Conference
52 RMEL Membership Listings
56 2013 Calendar of Events
58 Index to Advertisers
46 The FCC’s Pole Attachment Order is Promoting Broadband at the Expense of Electric UtilitiesBy Thomas B. Magee, Partner, Keller and Heckman LLP
Features 14 Coal is the Cornerstone of Electricity
By Frank Clemente, Professor of Social Science and Energy Policy, Penn State University
24 Six Lessons Utilities Learned in Hurricane Sandy’s Wake By Jennifer Neville, Public Affairs Specialist, Western Area Power Administration
30 Xcel Energy’s Successful Tagline Wasn’t Just LuckBy Catherine Chew, Manager, Operations, Advertising & Brand Strategy, Xcel Energy
34 Customer of the FutureBy Maggie Duque, Associate Director, Navigant Consulting, Inc.
38 Managing Community Issues Before They Manage YouBy Gary Severson, Senior Associate, Corporate and Government Collaboration and Education Programs, JKA Group
cont
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24
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Lauren Engineers & Constructors is a Top 400 EPC Contractor
serving the Heavy Industrial sector. We maintain offices
across North America staffed with dedicated engineering
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6 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
rmel information
President’s Message
Publ ished by:
www.hungryeyemedia.com 800.852.0857
Brendan Harrington President
Deborah Juris Publisher (303) 883-4159
Lindsay Burke creative director / ad Production
Alithea Doyle designer
Susan Humphrey Project manager
Dave Baker coPy editor
www.RMEL.orgPublished spring 2013
Publ ished For:RMEL
6855 s. havana st, ste 430, centennial, co 80112 t: (303) 865-5544 F: (303) 865-5548
www.rmel.org
Kathryn Hail editor (303) 865-5544
Electric Energy is the official magazine of rmel. Published three times a year, the publication discusses critical issues in the electric energy industry. subscribe to Electric En-ergy by contacting rmel. editorial content and feedback can also be directed to rmel. advertising in the magazine supports rmel education programs and activities. For ad-vertising opportunities, please contact deborah juris from hungryeye media, llc at (303) 883-4159.
RMEL Members and Participants;
As we roll in to 2013, it is clear from our vital issues forum that we will have just as many key issues to discuss and deliberate as we had in 2012. We are in the midst of unprecedented chal-lenges. Who would have anticipated the amount of shale gas discovery that would drive gas prices low enough to displace coal in the dispatch order? Coal is further being displaced with expected environmental regulation. We have had no clear Energy Policy which has hobbled strategic planning and decision making. We seem to be faced year after year with in-creased government regulation which adds upward pressure on rates.
RMEL is here to help. RMEL provides a great networking forum where utility leaders can discuss and deliberate these key issues and map out strategies to help shape policies that benefit our industry. RMEL also offers cost effective education events on member driven topics to provide our members the resourc-es they need to become better informed on the topics that affect them the most.
The RMEL association has grown to nearly 300 member companies. A few of our 2012 highlights are as follows:
• Record breaking 2,047 participants in 25 education and networking events
• Growing Spring Management, Engineering, and Operations Conference and Fall Executive Leadership Convention
• RMEL Foundation raised record donations and promoted our industry to students by awarding 21 scholarships
Our many thanks to you, our members, for your continued support of RMEL. Please continue to be involved in RMEL, shaping the topics of discus-sion that matter most to you. Stay involved in your association and I look forward to seeing you at an RMEL program in 2013.
Sincerely,
Andy Ramirez 2012-2013 RMEL President VP, Generation El Paso Electric Company
Register for the Spring
Management, Engineering
and Operations Conference
May 19-21, 2013
Vail, COlORadO
Engineering, Surveying, and Consulting Services
EMPLOYEE-OWNEDwww.ulteig.com • 877-858-3449
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A Leader in Engineering Energy Solutions
When utility companies seek outside expertise to deliver the power they generate quickly and reliably, they look to us for guidance because of our wide array of service offerings, knowledgeable leadership, and extensive experience. Ulteig assists energy clients with managing and upgrading their current infrastructure as well as planning for the future. We provide consistent direction for smooth and accurate project completion.
For more information about the many services Ulteig has to offer visit our website at www.ulteig.com.
Ulteig is proud to support future generations of
engineers by providing scholarships, through the
RMEL Foundation, to those pursuing careers in the electric
energy industry. This is a further demonstration of our commitment to be people-driven and our belief in the power of our commitment,
compassion, and enthusiasm for one another.
2013 RMEL Diamond Champion
8 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
rmel information
RMEL Board of Directors
OfficersPRESIDENT Cathy McCartney LEADERSHIP A Business Imperative, Inc. Owner/Consultant
VICE PRESIDENT, FINANCE Rebecca Shiflea SAIC Senior Project Manager
VICE PRESIDENT Walter D. Jones Intermountain Rural Electric Assn. Assistant General Manager, Operations & Engineering
CHAIR, FUNDRAISING James Helvig AMEC Director, Power Delivery
Board of DirectorsSteve Bridges Zachry Holdings, Inc. VP & General Manager, Regional Projects Group
Michael A. Jones SRP Director
H. Kent Cheese TestAmerica Laboratories, Inc. Director, National Accounts
Mike McInnes Tri-State Generation and Transmission Assn. Sr. VP, Production
Dennis Finn Wärtsilä North America, Inc. General Sales Manager, Mtn Region
STAFF LIAISON Natalie Andersen RMEL Manager, Member Services
STAFF LIAISON Rick Putnicki RMEL Executive Director
Foundation Board of Directors
PRESIDENT Andy Ramirez El Paso Electric Company VP, Power Generation
PRESIDENT ELECT Dan Schmidt Black & Veatch Corp. Sr. VP, Power Generation Services
PAST PRESIDENT Kelly Harrison Westar Energy VP, Transmission
VICE PRESIDENT, MEMBERSHIP Scott Fry Mycoff, Fry & Prouse LLC Managing Director
VICE PRESIDENT, EDUCATION Tony Montoya Western Area Power Administration, COO
VICE PRESIDENT, FINANCE Stuart Wevik Black Hills Corporation VP, Utility Operations
VICE PRESIDENT, VITAL ISSUES Richard Peña CPS Energy Sr. VP, Energy Development
VICE PRESIDENT, MEMBER SERVICES Mike McInnes Tri-State Generation and Transmission Assn. Sr. VP, Production
Doug Bennion PacifiCorp VP, Engineering Services & Capital Investment
Tim Brossart Xcel Energy VP, Construction Operations & Maintenance
Mike DeConcini UNS Energy Corporation Sr. VP, COO
Jon Hansen Omaha Public Power District VP, Energy Production & Marketing
Mike Hummel SRP Associate General Manager
Tom Kent Nebraska Public Power District VP & COO
Tammy McLeod Arizona Public Service VP & Chief Customer Officer
Cheryl Mele Austin Energy COO
Mike Morris Zachry Holdings, Inc. VP, Business Development, Engineering
Jackie Sargent Platte River Power Authority General Manager
Neal Walker Texas New Mexico Power President
Rick Putnicki RMEL Executive Director Secretary
Officers
Directors
10 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
2013 Spring conference
if you are managing people or projects, engineer-ing, planning or operating systems in the electric utility industry, this conference is for you. The Spring Management, Engineering and Operations Conference has been a tradition since RMEL’s early beginnings. Known for providing out-standing continuing education and networking opportuni-ties, this conference is a must attend event for engineering, operations and management personnel in the electric energy industry. With 30 presentations, this conference covers issues in generation, transmission, distri-bution, safety, customer service, human resources and other management topics. The timely topics and breakout structure of the conference allows at-tendees to customize their education experience to focus on presentations and resources that address their needs. Ample time is also provided to network with industry peers and visit with exhibitors.
The event features keynote presentations, educational breakout sessions in three tracks: generation; transmission and distribution; and management.
The slate of generation track presentations will guide attendees through topics like EPA regulations, impacts of the Colorado Clean Air Clean Jobs Act, a sustainable ROI approach to new generation decision making, scenario plan-ning, energy storage, RTO renewable generation dispatch, cycle provisions for coal fired boilers and life cycle asset management of air pollution control equipment.
In the T&D Track, look forward to details on PV – de-mand side management and energy efficiency, the Midwest Transmission Project, outage management, an evaluation
of the transmission system to eliminate potential cascading outages, measuring the value of reliability improvements, Progress Energy’s UG cable testing program, a business case for system modernizations and AMI and a roadmap for man-aging power transformer assets.
The third track of presentations, focused on management, covers the gamut of high-level challenges faced by managers throughout the utility industry, including communication, power marketing administrations, workforce, water and en-ergy in Arizona, leadership, managing the cost of regulatory compliance, Hurricane Sandy and involving employees and keeping safety fresh.
This event offers something for every person in the util-ity industry, whether you need to make the right contacts or find the right answers. Utilities of all types of ownership participate including IOU, G&T, municipal, cooperative and others. Vendors of all types are valued participants in
Maximize Your Training Budget at RMEL’s Spring Conference
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Engineering and Operations Conference, May 19-21, 2013 in Vail, CO.
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2013 Spring conference
the conference and community dialogue to improve operations and enhance customer service.
NETWORKINg gOLF OUTINgEnjoy a golf outing at Red Sky Golf Club on
May 19th. The format will be a four-person scram-ble and proceeds will benefit the RMEL Foundation scholarship program.
gUESTS AND SPOUSES ARE WELCOMEBring your guest to the 2013 Spring Manage-
ment, Engineering and Operations Conference. If your guest registers for the full conference, they are registered for all meals and the Champions Recep-tions on Sunday and Monday. If they register for an individual day, they will be registered for meals and the Champions Reception for that day only. Guest registration prices simply cover the cost of meals.
All attendees will receive a continuing education certificate. The certificate provides professional development hours based on participation. For more information and to register for the Spring Manage-ment, Engineering and Operations Conference, go to www.RMEL.org or call (303) 865-5544.
VAIL, CO May 19-21, 2013
60th Annual Utility Executive Course June 10 - 27, 2013
Utility Executive Course
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JUNe 25-27, 2013
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By Frank Clemente, ProFessor oF soCial sCienCe and energy PoliCy, Penn state University
The importance
of coal in the global energy
mix is the highest since 1971,
the first year for which IEA
statistics exist.—InternatIonal energy
agency, 2011
Cornerstone of eleCtriCity
Coal is t
he
w w w . r m e l . o r g 15
Electricity is the life-blood of modern soci-ety and is essential for
raising the standard of living, improving economic well-being and ensuring a cleaner environment (Figure 1). In so-cieties with widespread access to electricity, people eat healthier, drink cleaner water, are more likely to survive childhood, live longer and are better educated. As the International Energy Agency (IEA) recently concluded, “Lack of access to modern energy services is a serious hindrance to economic and so-cial development and must be overcome if the UN Millennium Development Goals are to be achieved.” Women and girls are disproportionately affected by energy deprivation—more than 70 percent of people living in poverty are female. {see Figure 1}
Coal’s foundational role in enabling societal progress is well documented and reaches from the European In-dustrial Revolution in the 1800s to the rise of the United States during the past century to the rapid socioeconomic development of contempo-rary China. Indeed, as the IEA has stated: “Coal has underpinned China’s massive and unprecedented growth in output, fueling an economic miracle that has helped to improve the standard of living.” China’s success with coal has not gone unnoticed as other developing countries aspire to a better life for their citizens. In India, for example, 300 million people have no electricity. In fact, electricity poverty is a global blight; some 4 billion people, at least 55 percent of the world’s population, use fewer
than 2,500 kilowatt hours (kWh) per year, only a third as much as a typical resident of the European Union. Coal is the cornerstone of global electricity, producing more than 8,700 terawatt hours (TWh)—about 40 percent of the world’s power. Even more important, by 2035, electricity from coal will basically double to a staggering 17,000 TWh.
Coal is the world’s fastest-growing fuel for measurable reasons. Developed societies depend on coal to maintain and extend a modern quality of life. Emerging societies are using coal to reduce energy deprivation and continue their march toward modernity. By 2035, more than 4 billion people—13 times the population of the United
States—will depend on coal for at least 40 percent of their electricity. Over the next de-cade alone, coal will produce more electric power than gas, nuclear, oil, wind and solar combined. Even BP’s 2013 Energy Outlook 2030 af-
firmed that coal will still supply a lead-ing 39 percent of the world’s power in 2030. By then, and perhaps well before, coal will supplant oil as the overall lead-ing source of total world energy.
Coal is the only fuel with the low cost and large scale to meet the energy needs of a growing world with rising expectations. More than 3.6 billion people are younger than 30. Yet, even now, more than 2 billion people do not have adequate access to electricity, and another 1.3 billion have none at all. The world is turning to coal because global reserves approach 1 trillion tons, more than double the potential energy of either natural gas or oil. By 2030, coal’s contribution to electric power will
00.3
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1.0
2000 4000 6000 8000 10000 12000 14000 16000
Cambodia
Myanmar
BangladeshLaos
India
Vietnam
IndonesiaPhillipines
China
Thailand
Sri Lanka
Malaysia
UK
Greece
Germany
FranceJapan Australia
UN
Hu
man
De
ve
lop
me
nt
Ind
ex (
0-1
)
Electricity Use Per Capita (kWh/y)
Every 10-Fold Increase in Per
Capita Electricity Use Drives a
10-Year Increase in Life Expectancy
FiguRE 1: More People living Better, living longerSources: World Bank; United Nations
16 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
exceed the equivalent of 2,400 nuclear power plants, or 175 Three Gorges Dams. As Maria van der Hoeven, Executive Director of the IEA, stated in January: “Coal is here to stay.”
the rationale for Coal is Clearabundance and accessibility: Coal is the world’s most prevalent and widely distributed fossil fuel, accounting for 64 percent of global economically recoverable fossil resources, compared to 19 percent for oil and 17 percent for natural gas. The amount of proven re-coverable coal reserves is enormous and approaches 1 trillion metric tons. Coal is distributed across every continent and every region of the world. The western hemisphere itself has more than 300 bil-lion tons of coal, Russia has 175 billion, China 130 billion, Australia 85 billion, Europe 75 billion and India 65 billion.
Secure Energy: Coal’s wide global distribution provides energy security across broad political arenas. As the IEA noted in 2007, “It is widely ac-knowledged that the oil and natural gas markets provide risks that undermine security of supply.” Coal is the epitome of energy security. Reliability: Coal’s abundance and dis-
tribution, coupled with its relatively low and stable price pattern, set the stage for a reliable supply of energy. In many countries, coal-based generation is one of the first sources to be dispatched throughout the electric grid. Coal’s reliable characteristics make it a very attractive baseload fuel. Consistently, the amount of electricity generated from coal significantly exceeds coal’s relative capacity compared to other fuels. In 2010, for instance, coal accounted for only 32 percent of total generation ca-pacity but actually produced 41 percent of the world’s electricity.
affordability: China, for example, is projected to build nearly 1,000 GW of new coal capacity over the next 25 years. Based on IEA analyses of level-ized costs of electricity, supercritical coal plants are one of the most afford-able sources of power generation in China, at $33 per MWh, compared to $50 for hydro, $53 for nuclear and $71 for wind.
Versatility: Various countries around the world have been initiating an increasing number of coal projects converting coal to liquid fuel, sub-stitute natural gas or chemicals. The scale of China’s coal conversion plans
is especially informative and indicates that the goal is to develop an additional 1.2 billion metric tons of coal over the next decade and to use that coal in numerous conversion projects. Further, coal-to-liquids will gain increasing im-portance with the approach of a global peak of conventional oil production.
Clean Coal Works“Technologies…have helped to dramati-cally reduce potentially harmful emis-sions, even as coal use for electricity gen-eration has risen substantially.” —U.S. Department of Energy (DOE), 2012
Clean coal technologies have steadily overcome environmental challenges. The U.S. power industry has invested well over $100 billion in the decades since the Clean Air Act of 1970 and cut emissions with remarkable success. Huge strides have been made to signifi-cantly reduce the six common regulated emissions (criteria pollutants)—particu-late matter, sulfur dioxide (SOx), carbon monoxide, lead, ozone and nitrogen oxides (NOx)—while at the same time increasing coal-based generation and meeting the ever increasing energy needs of an expanding population in a growing economy (Figure 2). Overall, America’s coal-based generating fleet is 77 percent cleaner than it was in 1970.
As the U.S. National Energy Technology Laboratory (2011) re-ports, “Even with coal demand steadily increasing, emissions of criteria pollutants are at their lowest levels ever.” Parallel progress has been made in other key nations, like Australia, Japan and Germany. {see Figure 2}
Advanced super-critical and ultra-super-critical coal generation uses less fuel and produces more power with reduced emissions. Improving efficiency levels increases the
1970 1975 1980 1985 1990 1995 2000 2005 2011
% C
han
ge
Sin
ce
19
70
Electricity Use Per Capita (kWh/y)
Coal-Based Power Generation
GDP per capita
Emissions/kWh from coal plants*
Since the Clean Air Act, U.S. coal power nearly triples...emissions fall 88%
150%
100%
50%
0%
-50%
-100%
*NOx, SOx, PM
+104%
-89%
+146%
FiguRE 2: u.S. Coal Power increases; Emissions declineSources: Developed from EIa, USDa, NETL
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amount of energy that can be extracted from a single unit of coal. Such increases in the effi-ciency of electricity generation are essential in meeting climate change goals. A 1 percent im-provement in the efficiency of a conventional pulverized coal combustion plant results in a 2–3 percent reduction in CO2 emissions. Such advanced coal plants emit almost 40 percent less CO2 than many existing plants. The average global ef-ficiency of coal-fired plants is less than 30 percent, compared to more than 47 percent for the most advanced plants.
The gaze of the scientific and engineering community has shifted to controlling and using CO2 in pro-cesses such as Enhanced Oil Recovery (EOR)—a technology even the Nation-al Resource Defense Council has called a “win-win-win.” Now the creative gaze of the scientific and engineering communities turns to carbon capture, utilization and storage (CCUS). Private sector companies have already dem-onstrated that underground storage of CO2 is more than a waste-disposal business as shown by the success of EOR technology. The emergence of CO2 as a commodity enables society to fully unlock the value of advanced, low-emission coal technologies. The use of CO2 for EOR is the CCUS approach to providing the greatest potential for economic and environmental payoffs over the next several decades. U.S. De-partment of Energy–sponsored research found that “next-generation” CCUS and EOR technologies would enable the economic recovery of 67 billion
barrels of “stranded oil,” which could be produced assuming an $85/barrel oil price. In addition, there is emerg-ing recognition that the Residual Oil Zone (ROZ) resources are enormous, and could yield yet another 33 billion barrels for a total of at least 100 bil-lion barrels of oil that would otherwise remain unavailable.
Coal is irreplaceable in american society
Coal was, is and will remain the ba-sis of our electric power supply (Figure 3). The first central power plant—built
in 1892 by Thomas Edison on Pearl Street in Manhattan—was fueled by coal. Since then, coal’s steady contribu-tions have made the U.S. power system one of the most affordable and reliable in the world. {see Figure 3}
The consistency of coal’s contribu-tion reveals its importance. And the scale of production should be placed in context. In 2008, for example, coal in America produced more electric-ity than Germany, England, Italy and France consumed combined. Further, the coal industry itself, coupled with ancillary operations, is an important
FiguRE 3: The Continuing Power of Coal in the united StatesSource: U.S. Energy Information administration
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035
Billio
n K
ilo
watt
Ho
urs
2,500
2,000
1,500
1,000
500
0Hyrdro
Other Renewables
NuclearNatural Gas
Coal
Billion kWh through 2035
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component of America’s socioeco-nomic infrastructure. In terms of direct employment alone, almost 350,000 permanent jobs are at-tributed to the mining, transport or electric-power industry’s use of coal. But the impact of coal reaches far beyond direct jobs alone. Rose and Wei (2006) found that by 2015 the overall benefits of coal-based electricity in the contiguous United States would reach:
• $1,047 billion ($1.1 trillion in economic output
• $362 billion in household income
• 6,800,000 jobs
These benefits are widely distrib-uted and accrue to states across the nation—e.g., jobs in Western states that total 1.2 million, and in the South-east that total 1.6 million. Finally, coal-based electricity is affordable (Figure 4). Gas prices are volatile, and wind and solar are expensive. Nuclear has been over-regulated out of the market, and our nuclear power industry is a shadow of its former self. {see Figure 4}
ePa Push for Gas Dependence imperils electric reliability Gordon van Welie, CEO of ISO-New England, has called reliance on gas the company’s single most important “strategic risk.” Indeed, reports The New York Times, Feb. 16, 2013: “Elec-tricity prices in New England have been four to eight times higher than normal in the past few weeks, as the region’s extreme reliance on natural gas for power supplies has collided with a surge in demand for heating.”
Over the past 15 years, natural gas accounted for more than 80 percent of new electric generation capacity, adding a dangerous dynamic to U.S. gas markets. Specifically, gas power plants have entered into competition with other consumers for fuel, thereby not only potentially increasing the price of gas but also
the cost of electricity. Families and manufacturing firms faced this reality in 2008, when the price of gas to heat homes increased 44 percent in just five years and the cost of gas to industry increased 64 percent. Energy welfare agencies such as LIHEAP were over-whelmed, and a variety of industrial businesses reduced operations, closed or left the country.
Unfortunately, because of the unrelenting assault on coal from the Environmental Protection Agency (EPA), this dash to gas for power generation is continuing. Over the next three years, gas will comprise at least 32 gigawatts of net new capac-ity, compared to a marked absolute decline for coal, only 2 gigawatts from nuclear uprates and none for hydro.
FiguRE 4: Coal Means lower Electric RatesSource: U.S. Energy Information administration
Ele
ctr
icit
y P
rice
(ce
nts
pe
r kW
h)
Coal % of Electricity
16
18
14
12
10
8
60% 20% 40% 60% 80% 100%
*OR, WA, ID are hydro-based
MA
MD
WI
MO
INWV
IA ND
PA
VA
TX
CA
OR
WAID
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22 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
Yet, even this large addition of planned gas plants pales when compared to the looming effect of the EPA’s new punitive regula-tions on coal power plants. The EPA has essentially crafted rules designed to make gas the “fuel of choice.” Esti-mates are that EPA regulations not only will dramati-cally raise electric rates and cost millions of jobs but will also force the closure of up to 100 gigawatts of coal plants—essentially one-third of the fleet that comprises 42 percent of our electricity. The adverse impact of these new EPA regulations on an electric power system that has brought us reliable and affordable electricity for decades will be profound.
This specter of a surge in demand for natural gas is made all the more concerning when one considers the U.S. Energy Information Administra-tion (EIA) projection of incremental gas production over the next decade. Shale gas output is projected to increase significantly, but this growth will largely be offset by declines in con-ventional wells and other traditional
sources of gas supply. In fact, all of the projected incremental gas production predicted by the EIA would be needed to replace closing coal plants, leaving no new supply for the vast infrastruc-ture we are building, ranging from new industrial facilities to gas vehicles. More than 65 million homes in the United States depend on gas. Construc-tion of wind turbines and solar panels proceeds apace. And each of these intermittent sources requires natural gas backup. {see Figure 5}
our Most important energy resource: Coal
More than any other nation, America can control its own energy destiny. Coal is the foundation of that control. Almost
30 percent of the world’s coal reserves are in the United States. Our nation stands at the threshold of a unique op-portunity to deploy clean coal tech-nologies to more fully use domestic coal resources in order to accomplish a full range of socioeconomic and environ-mental goals. Our leadership in deploy-ing these technologies would benefit the global community as well. In a future world of 8.5 billion people in 2035, the EIA-projected 50 percent increase in energy consumption will require Presi-dent Obama’s “all of the above” energy resources—oil, gas, renewables and nuclear—but coal will continue to be the cornerstone, providing more incremen-tal energy over the next 25 years than any other single fuel. As MIT professor
Ruben Juanes recently con-firmed, “We should do many different things, but one thing that’s not going away is coal.” Why would we bypass our most powerful energy resource when the technology is there to use it productively, sustainably and cleanly?
Frank Clemente is a Professor of Social Science and Energy Policy, Penn State Univer-sity. He can be reached at [email protected].
FiguRE 5: Where Will We get the Natural gas?
Thus, no new gas would be available for:
1. New manufacturing
2. Gas vehicles
3. Export
4. Wind backup
5. Home heating
2,700 Bcf3,285 Bcf
Natural GasDemand Justto Replace
75 GW of Coalby 2020
IncrementalGas Production
by 2020
24 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
By JENNiFER NEVillE
PUBLIc affaIrS SPEcIaLIST, WESTErN
arEa PoWEr aDMINISTraTIoN
Six LeSSonSutiLitieS Learned
in hurricane Sandy’S wake
w w w . r m e l . o r g 25
Four monthS after utilities from across the country responded to the extensive Northeast power outage in the wake of Hurricane Sandy, dozens of utility representatives gathered to discuss the les-sons learned from the emergency response.
“The united industry restoration efforts in the aftermath of Super Storm Sandy were absolutely incredible. Several
RMEL member companies sent crews to the East Coast, even the utilities in Ari-zona,” said Richard J. Putnicki, Executive Director, RMEL.
“There was no question about the need for a lessons-learned event for RMEL members,” Putnicki continued. “The event was basically planned in one month, and we had some amazing speakers from mem-ber companies, FEMA, DOE and First-
Energy who volunteered their time and quickly compiled very enlightening presentations. I thank the RMEL members and all the participants who made this event a success—espe-cially Western Area Power Administration’s Electric Power Training Center for providing the meeting space.”
At the event, hosted by RMEL, 60 representatives from more than 20 utili-ties packed the room at Western’s Electric Power Training Center (EPTC) in Golden, Colo., to dig deep into what worked well, hiccups they discovered along the way and how to be prepared for the next emergency response.
“Electricity is one of those elements that people count on to be there »
Six LeSSonSutiLitieS Learned
in hurricane Sandy’S wake
26 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
when they turn the switch, and during a disaster all the parties have to pull together to make it happen. It takes a coordinated effort to do it, do it safely and do it correctly,” said Steve Yexley, Western’s EPTC manager. “They are reviewing and sharing how we can do our jobs better. It was a great event to host so we all can learn how to return the power system to pre-event status, similar to some of the other things we teach here.”
The top six lessons learned covered at the event focused on what utilities can do to prepare for next time:
1 keep LiStS, LiStS and more LiStS
You should have lists of all your utility’s equipment and tools, as well as a current count of your craft and dispatch staff levels on hand. When a request for assistance comes in, the lists allow you to quickly assess your current work needs and where you can spare resources to support recovery
efforts. FEMA Operations Officer Ricky Stephenson also recommends having lists for responders of the tools and per-sonal items they should take with them, including employee IDs, petty cash, and even sleeping bags and snacks.
2 Set up mutuaL aid agreementS in advance
These agreements can take weeks to get in place—and in a disaster you don’t have weeks. Knowing who you can call for help when weather or other disasters arise streamlines the process for getting support. Most of the partici-pants indicated their utilities have mu-tual aid agreements with neighboring utilities, but having agreements with utilities up to 1,000 miles away can be a good idea as well. “Your neighbors many times are recovering from the same storm you’re dealing with, so they are holding their resources,” said Tony Hurley, Director, Operations
Services, Toledo Edison, a FirstEnergy Company. “Having partners you can reach out to farther away helps after big storms.”
3 create a SeLection proceSS
Deciding which employees should go and which should stay requires balancing many factors such as what staff do you need to keep on hand, what are the specialties needed for recovery (dispatch, electrician, line-man), experience and qualifications or certifications of responders, and if your staff will work alone or be integrated in the hosting utilities crews. After analyzing the response needed, utilities should already have a process in place for selecting who will be sent. Note that your response list may require manage-ment, administrative support and media support skills as well.
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to get large equipment back after the recovery efforts in the Northeast. “We knew we would not have our crew and equipment for the two weeks we sent them out there,” the participant said. “What we didn’t count on was the two-week delay in getting our equipment back after our crews returned from the recov-ery effort. We will have to plan better to determine what we can do without for extended times like that.”
5 proper eStimated time or work
Responding utilities and the host utility need to provide proper estimates for how long the work will take and update that information frequently. In today’s energy-driven world, the media and the public want to know when to expect the power again. “Even when the power is restored several days earlier than estimated, businesses have planned for the longer outage and may be frustrated because they lost productivity for those days they could be up and run-ning again,” explained Anthony Lucas, Program Manager, Emer-gency Support Function #12, Department of Energy.
6 Secure a pLace at the Fema tabLe
When disaster strikes, FEMA’s incident command system is in charge. They balance all
4 traveL LogiSticS there and backMoving utility industry equipment and staff from one side of the country to
another is a large undertaking; several responders partnered with local military bases to get equipment transported, while others drove cross-country and on toll roads to get to the Northeast after Hurricane Sandy. Utilities should calculate dis-tance and time to determine if they can respond quickly enough to the situation and figure out if they need logistical help. One participant noted how long it took
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HUGHESthe different recovery efforts. Utilities must have staff trained and familiar with the ICS so they can participate in the conversations and provide their expertise about the power recovery efforts. Information about incident system training is available on FEMA’s website.
when it’S your diSaSter
It’s just as much about prepar-ing at home as it is about re-sponding to another utility’s need.
Most of the participants attending the conference sent responders to help with recovery efforts after Hurricane Sandy, but a few participants provided the perspective for what happens when it’s your area that’s in ru-ins. Vince Featherly, Sr. Director, Distribution Design, Construc-tion & Maintenance, SRP, said, “It sounds to me that between the two [hosting or responding to an incident], hosting after a disaster is the harder part.”
Participants learned how im-portant it is to prepare before the disaster is on your doorstep and how and when to send out a call for assistance. They also learned how to analyze and be specific for what is needed and consider the logistics for staging incom-ing equipment and staff. When all the hotels within 50 miles are
booked, and the restaurants and gas stations are closed down, how are you pre-pared to stage, command and deploy recovery efforts for your system?
Participants left with several takeaways for both responding to an incident and pre-paring their local plan to improve recovery efforts before the next disaster strikes.
Jennifer Neville is a Public Affairs Specialist at Western Area Power Administration. She can be reached at [email protected].
30 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
XCel enerGy’s
suCCessful taGline Wasn’t
Just luCkBy Catherine Chew, Manager,
operations, advertising & Brand
strategy, xCel energy
w w w . r m e l . o r g 31
Cel enerGy (nyse: Xel) is a major U.S. electricity and natural gas company with regulated operations in eight Western and
Midwestern states. Xcel Energy provides a com-prehensive portfolio of energy-related products and ser-vices to 3.4 million electricity customers and 1.9 million natural gas customers through its regulated operating companies. Company headquarters are in Minneapolis.
Creating and launching the Tagline
“In 2008, we decided that we needed a tagline to highlight our environmental leadership as well as our commitment to being responsible on behalf of our customers,” explains Stacy Ingram, Director of Advertising and Brand. “We needed a tagline that would showcase that vision.” Months later, the tagline was born and “Re-sponsible By Nature” is still a part of Xcel Energy today.
“The tagline still supports the company’s vision of sustainability, among other things” Ingram said. “Our CEO, Ben Fowke, is building on our leadership position in the industry by ensuring that we bring value to the cus-tomer in all that we do,” Ingram said. “That might be by expanding clean energy choices while keeping prices competitive or giving customers a choice in how they use our energy.”
Hitting on the right combination of words to express that vision was not a matter of luck or chance. The utility’s agency, Vladimir Jones (VJ), played an in-tegral role in the development of the tagline. “We knew that we needed first to discover where we stood in our customers’ minds and to determine where we wanted
to be. To do that, we needed research,” said Karen Cantey, Account Group Director at VJ.
The agency had conducted a message hierarchy study just months before, which was used to shape the message. But additional research was necessary to get more information about customers’ view of Xcel Energy to ensure the tagline and positioning would resonate. VJ took on the task of conducting both quantitative and qualitative research, the latter of which employed a somewhat unique methodol-ogy. “With a focus on ethnography for our qualitative research, we asked a group of customers to keep diaries about their energy use, specifically their thoughts and feelings about energy or a lack of energy. For example, when they walked in the door at night and turned on a light, how did they feel? What about walking into an air-conditioned home on a hot afternoon?” Cantey explained. “We took the information they shared with us and analyzed it to gain an understanding of how our customers saw us—what their relationship was with our company and our product,” added Ingram.
Once the research had been ana-lyzed, creative brainstorming began. While VJ led the efforts, the brain-storming included teams within Xcel Energy, as well. The agency, with feedback from the advertising team and key executives, narrowed the list to several taglines. Accord-ing to Cantey the agency went back in the field to test the taglines with both residential and business customers of the utility. Baseline questions were designed to answer questions like “What can customers relate to?”; “Which of these taglines are believable?” ; and “Which taglines position the company in the desired way?”
After the testing and analysis, there were several conversations about what direction to take.
Other taglines tested included “Connect with Life,” “A Brighter Day,” and “Live Brilliantly.” “When ‘Respon-sible By Nature’ was selected as the tagline, we knew it could be controversial—even within the company,” Ingram explained. “There was a concern about over-reaching: ‘How can you be anything “by nature”? We use coal to create electricity.’” And in fact, it wasn’t the highest scoring option, according to Cantey. “But we discovered that it improved participants’ perception of the company more than the other taglines, so we moved forward with it.”
X
xcelenergy.com
Xcel Energy brings more than energy to the homes and
businesses we serve. We bring resources, programs and
projects that help support dynamic local economies.
Because in today’s world, prosperity requires energy.
Visit xcelenergy.com for more information.
ECONOMYDYNAMICFEEL THE ENERGY
of a
© 2013 Xcel Energy Inc.
xcelenergy.com
Xcel Energy brings more than energy to the homes and
businesses we serve. We bring resources, programs and
projects that help support dynamic local economies.
Because in today’s world, prosperity requires energy.
Visit xcelenergy.com for more information.
ECONOMYDYNAMICFEEL THE ENERGY
DYNAMICof aDYNAMIC
00392-D XL_JUR_TX_Dynamic_5x7_FNL.indd 1 2/11/13 3:08 PM
The 2013 advertising campaign incorporates the “responsible by
Nature” tagline.
32 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
more ad-aware customers in both markets found Xcel Energy to partner to conserve, communicate valuable information, meet today’s energy needs and encourage safety.
Responsible by Nature
Part of the tagline’s success lies in the fact that the promise of the tagline is fulfilled because Xcel Energy committed itself to support-ing that tagline with action, not just words. “Responsible by nature means something on many different levels,” said Cantey. “When we say that Xcel Energy is responsible by nature, we are saying that responsi-bility can be seen in the company’s history, in the structure, in the culture, in the decisions employees make, the priorities that are set and the way Xcel Energy goes about its business.” Ingram agrees. “Respon-sibility is woven into our DNA. Our company is an environmental leader in the utility industry yet we honor our commitment to the communi-ties we serve by providing safe, reli-able energy at a competitive price. Our commitment to our customers is not just rhetorical. It is institu-tional and operational. It drives de-cisions and priorities, from lowering carbon emissions and developing renewable energy resources to offer-ing customers more choices in how they do business with us. We believe our commitment is good business, not just good material for positive publicity. This is about delivering on a brand promise,” said Ingram
Why a Tagline?An extension of a brand, a
tagline serves as a statement of mo-tivation, focus and commitment. “In our case, it’s a promise we make to our employees, customers and the communities we serve. Responsible By Nature increases the brand’s relevance, helping to differentiate it while creating value and meaning around the brand itself. We believe our tagline refines the company’s
Mindful that the tagline might be controversial, the team prepared a crisis communi-cations plan in the event they received pushback from stakeholders or received negative media attention. They then began educating employees, customers and other stakehold-ers to help them connect to the tagline. Several tactics were used to engage employees, including deploying Xcel Energy’s brand champions, a team of employee volunteers who are educated about key projects so they can in turn provide information to other employ-ees, helping build understanding and acceptance of critical initiatives within the company.
For external stakeholders, the team launched an ad campaign featuring the tagline as well as a web site: ResponsibleByNature.com.
In the year following the launch of RBN tagline and accompanying campaign, we saw positive opinion of the company increase by 20 percent. In addition, year-over-year,
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positioning and research shows that it resonates with our stake-holders,” Ingram explained.
“A question we often are asked in relation to the tagline in particular and advertising in general is why we need to advertise at all since we are a monopoly and customers have no choice but to buy energy from us,” Ingram said. “And that’s true, but even a monopoly has to have a positive relationship with its customers and to do that, we must have a dialogue with them. Advertising is one channel that helps us do just that. Advertis-ing helps us create value, improve satisfaction and helps us have more favorable relationships with our stakeholders.”
Ingram added, “Through advertising and other market-ing communications channels, we show our customers that while they may not have a choice in energy providers, they do have choices in how they use energy, how they pay their bills and how they interact with us.”
According to Cantey, research is at the core of all of the communications the utility has with its customers. “In order for Xcel Energy to provide good service to them, we have to know what they care about and how they want us to talk to them. If we know what our customers understand and what they want to know about, we can help them feel empowered and very much a partner in this relationship,” Cantey explained.
The Future of the TaglineThe company has changed advertising campaigns several
times since the launch of the tagline, but the tagline has remained the same. “It embodies our company’s promise to our customers. We still see ‘Responsible By Nature’ as a solid tagline because we didn’t hang our hat on just the en-vironmental interpretation of the phrase,” said Ingram. “The other factors—providing safe, reliable energy at a competi-tive price, being easy to do business with and making sound, responsible decisions throughout the company—are still reflected in the tagline.”
Even so, the team says they’ll never say never. “This has been a very successful tagline for the company,” explains Cantey. “But consumers’ mindsets change very quickly and new issues arise every day. We have to be ready to respond to a change in direction when it’s best for the company.”
Catherine Chew is Manager, Operations, Advertising & Brand Strategy, Xcel Energy. She can be reached at [email protected].
34 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
By Maggie Duque, Associate Director, Navigant Consulting Inc. Edited by Emily Koepsell, Consultant, Navigant Consulting, Inc.
The
Customerof The
Future
w w w . r m e l . o r g 35
The “customer of the present” is influenced by smart grid technolo-gies; new sources of available energy such as solar and shale gas; changes in electricity prices; and perhaps most substantially, today’s way of life. With such a fast-paced world, in many ways, the “customer of the future” is already here. The most significant difference between today’s customer and that of the future is how the influx of new advancements will broaden the impact of a person’s energy decisions. As a result of this changing environment, addressing the needs of the customer of the future must begin now.
As customers, our expectations are shaped by our rapidly changing world—how we communicate with one another, how and where we work, how we spend our leisure time and how we allocate our money. As costs of alternative energy sources continue to decline and utilities, particularly in the Northeast, are being deregu-lated, customers face more options. We are constantly bombarded by new information, and with so many choices available and perceiving time and money as scarce, we become more critical in our decision-making.
Value, convenience, reliability, envi-ronmental consciousness and control are primary customer concerns. We want to make sure what we are getting is worth the price. We want our needs met in a simple and user-friendly man-ner. We want to minimize or eliminate the uncertainty and wasted time that are associated with an unexpected event. We want to protect our environ-ment. And we want to make decisions that work for us as individuals.
However, not all customers are the same. Retirees on fixed incomes will value price over reliability—provid-ing these customers with smart meters and home display networks will help them manage their bills and ultimately their energy consumption. Young professionals may be more interested in convenience and environmentally conscious energy choices—providing them with the ability to select electric-ity from “cleaner” fuels will help them support their green outlook. Subur-ban families may be more concerned with convenience and energy sav-ings—providing them with home area networks could help them regulate their appliances and air conditioning to maximize energy efficiency. There-fore, distinguishing customers by their wants and priorities is paramount to better serving them in the future, providing appropriate programs and choices, and enhancing loyalty.
With the variety of customer segments and the advent of new technologies that bring more options, understanding who the customers are—and building trust and loyalty with them—becomes increasingly essential. A provider’s ability to adapt
in this fluctuating environment will be a significant competitive advantage. In order to maintain that competitive status, the provider must enhance 1) customer segmentation and 2) opera-tional excellence. To design customized programs for each customer segment, providers must understand what dif-ferent customer groups want and need. Operational excellence, meanwhile, will allow providers to remove inef-ficiencies and non-value-added costs while improving program performance.
This operational excellence and pro-viding the appropriate programs and services to specific customers requires understanding, insight and process discipline. It also necessitates tracking the relevant metrics and understanding root causes of trends at an actionable level so as to be able to influence them. New technology and data management systems permit an electric provider to automate processes and accurately track data and outcomes in an efficient manner. Best practices to develop programs borrow from other industries where new initiatives are tested—it is almost like a laboratory in which scien-tists study what activities move which needles (objectives and outcomes) and
OPERATIONALEXCELLENCE
FINANCIALOBJECTIVES
STRATEGIC,FOCUSED
PEOPLE
SKILLS,ACCOUNT-ABLILITY
PROCESSES
MEASUREMENTS,CONTROLS
TECHNOLOGY
ENABLERS,AUTOMATION
FIGURE 1
36 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
what critical requirements make the system work. However, understanding the customers’ needs is only part of the equation; anticipating new expecta-tions and being able to execute new programs and adapt to new technolo-gies requires process flexibility and a continuous improvement approach. {see figure 1}
Three examples of electric providers that have been successful in engaging a segment of their customers and creat-ing value for both the customer and the provider are Entergy New Orleans, the City of Tallahassee and Sioux Valley Energy. Entergy is participating in a consumer behavior study to determine if various devices and pricing for Time of Use (TOU) programs can drive energy consumption to off-peak hours. Entergy management focused the study on low-income customers, a sizable segment of its customer base, with the premise that if it could shift the energy consumption and customer satisfaction
of these customers, it could also affect the behavior and perception of other groups. To engage these low-income customers and serve as a bridge upon which to build a relationship of trust, the management team created partner-ships with non-profit agencies in the community, that already had affilia-tions with these customers. After deter-mining that face-to-face communica-tions were optimal, it further tailored the program communications, and as a result, about 10 percent of those target-ed participated in the TOU program. Although the energy consumption did not shift significantly during peak times and there was no reduction in cus-tomer expenses, customer satisfaction ratings increased. Thus, it appears that although customers may still choose to use electricity when it is more expen-sive, by being more informed and em-powered, they are better able to accept the outcome of higher prices.
The City of Tallahassee, with a
large population of transient college students, often has to deal with their unpaid final bills. This means that the remaining customer base picks up the additional cost. Because collection processes are costly and time-consum-ing, the municipal management team plans to implement a pre-pay program that will eliminate deposit require-ments for cash-strapped students and limit usage when not paid. This endeavor will enable the city to avoid write-offs and accounts receivables. The program will also provide value to the rest of the customer base by maintaining low rates and eliminat-ing long lines at the front offices the first weeks of school as new students open accounts and pay deposits.
In the summer of 2011 and 2012, Sioux Valley Energy instituted a criti-cal peak-pricing pilot for some of its customer base. There were several groups within the pilot, including one group of customers who opted in to
FIGURE 2
eaCh oF the above phases must address the Following organizational elements in some Form
• poliCy deployment,leadership
Communications, values, culture, performance
management, targets, key output indicators tracked
• Customers expeCtationsWants, needs,
convenience, satisfaction, value, knowledge
• employees Skills, engagement,
productive, alignment, motivated
• proCesses/poliCy Capability, standardization,
gaps, leading indicators, risks, informal processes, effectiveness
• teChnology Automation, interface, maximizes
efficiency/effectiveness, controls risks, data accuracy
• value/Cost eFFeCtiveness
efficiency, reliability, effectiveness — what am I getting for the price?
• organizational struCture
Alignment to goals, strategy, skills, accountability
OVERVIEW OF APPROACH
STRATEGYDEVELOPMENT
“Where/Who DoWe Want To Be?”
CE
NT
RA
LQ
UE
ST
ION
S
1 2 3 4 5
“Where AreWe Now?”
“Where CanWe Go?”
“How Do WeGet There?”
“How Do We Stay There,and Further Improve?”
ASSESSMENTPLANNING/ANALYSIS
EXECUTION/ACTION PLAN
CONTINUOUSIMPROVEMENT
w w w . r m e l . o r g 37
the program and another with custom-ers automatically enrolled and given the choice to opt out. A day ahead of a critical peak event to notify the customers of the change in electricity price, the utility sent out messages using a variety of communication modes. In addition to the pricing pilot, the utility has started the Empower Program so that customers can monitor their hourly usage on a day-later basis. Sioux Valley Energy reports that its custom-ers have been very positive about the initiatives because they are now in more control of their electricity bills. It also says some customers have lowered their demand to help the Cooperative, and therefore all the other members. This increased interaction with the customers and ability for customers to more closely manage their electricity usage has achieved significant demand reduction in the pilot program.
While understanding customers’ needs and striving for operational excellence can provide significant enhancements, it is not always enough.
Electric providers also need to clearly and effectively communicate to cus-tomers what they are doing and how they are adding value, as customers are frequently too busy to notice and are constantly processing different information from a variety of sources. Customers establish perceptions of value and quality of service based on experiences such as interactions with field personnel during outages, impressions formed when calling the provider and comments posted by friends on social media. {see figure 2}
Providers must appropriately man-age these complex communications and monitor the trends so that they may take proactive actions.
The customer of the future will be less patient than today’s customer or the customer of 20 years ago. There are more choices and more demands on our leisure time and our financial resources. Every minute and every penny seems to be committed. Provid-ers that focus on operational excellence and understand their opportunities
and competitive advantages will be ahead of the game in adapting to new technology and providing cost-effective programs. They will know how their operations, policies and processes drive their key metrics, such as cost per kWh, reliability indexes and customer satisfaction. They will also know how each activity contrib-utes to the overall outcome. Becom-ing intimate with their customers’ needs and wants and learning how to anticipate their changing prefer-ences will be a competitive advantage. While cooperatives and municipalities have closer relationships with their customers, larger IOUs are more organized and efficient. However, each type can build on its strengths to meet the needs of the customer of the future. {see figure 3}
Maggie Duque is the Associate Direc-tor, in the Energy Practice focusing on process improvement at Navigant Consulting, Inc. She can be reached at [email protected].
FIGURE 3
lIvE aGEnt
Walk-In oFFIcE
UtIlIty bIll
chat
tExtsocIalmEdIa
FIEld WoRk
sElFsERvIcE
Ivb
WEb
38 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
By Gary Severson, Senior Associate, Corporate and Government Collaboration
and Education Programs, JKA Group
ManagingCoMMunity
issues{ Before they Manage you }
w w w . r m e l . o r g 39
those who are responsible for siting and permitting site specific or linear facilities are
well aware that in today’s environment of regulatory requirements, polarized politics, and litigation, citizen opposi-tion to proposed projects can be daunt-ing. Determined citizens have success-ful track records of delaying projects, driving up project costs, and blocking projects that are technically sound and necessary. To relegate the causes of citizen opposition to a few selfish people who do not want the project in their backyards (NIMBY), is to miss the crux of grassroots citizen activism.
the DeCision spaCeAll project managers and corporate and regulatory agency executives are well aware of the decision space associated with developing regulated projects and the parameters that affect the options for decisions. The project decision space is constrained by at least six dynamic parameters con-sisting of legal, fiscal, technological, physical, political and social/cultural.
The parameters of the decision space are in a state of dynamic flux with one another. As one param-eter expands or contracts, the other parameters are directly affected. For example, if citizen opposition to a pro-posed project intensifies significantly constricting the social and cultural parameter, the political parameter begins to contract as the support of elected officials evaporates in the hot winds of controversy. As a result, the
Legal and Fiscal parameters are nega-tively impacted. Eventually, through regulation, legislation or litigation the technological and physical parameters may collapse reducing the decision space to costly untenable options.
CoMMunity issues anD projeCt CostsThere is a direct correlation between the intensity of community issues and the financial, human, and reputation costs associated with proposed natural gas and electricity projects. Commu-nity issues do not begin their lives as uncontrollable events that will stop projects. Instead, community issues be-gin as legitimate questions that citizens have regarding proposed projects. At
this stage of an emerging issue, opin-ions are rarely formed, rather, people are seeking answers to questions like:» Whatwillthisprojectdo
tomypropertyvalues?
» Willtheprojectincreasetraffic?
» Willtheprojectdiminish
airandwaterquality?
» Howmanypeoplewillbe
requiredtobuildandoperate
theprojectandhowmanyof
themwillbehiredlocally?
» Willtheprojectenhancethe
developmentoflocalbusinesses?
» Willthecompanyproposing
theprojectdevelopcommunity
basedtrainingprograms
toprepareourcitizensfor
employmentandadvancement?
the jKa group is comprised of three companies focused on creating sustainable futures for communities, corporations, and governments. jKa has created a unique pre-crisis issue management approach used by many companies and agencies to effectively understand how communities function and how to align project activities to benefit the community and thereby benefit the company. for more information about jKa group services go to www.jkagroup.com
DEFINING THE DECISION SPACE
FISC
AL
PH
YSIC
AL
LEGAL
TEC
HN
OLO
GIC
AL
PO
LITIC
AL
SOCIAL/CULTURAL
DECISIONSPACE
40 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
If the questions are not answered in a timely fashion with credible infor-mation through believable sources, community issues will likely move into the existing issue stage. This is the stage where opinions are be-ing formed. Community dialogue changes from seeking information to positions being stated such as:» Thisprojectwillruinour
propertyvalues.
» Thetrafficandnoisefromthis
projectwillbeunbearable.
» Childrenandseniorswithasthma
willsuffer,andtheincidence
ofcancerwillincrease.
» Theywillnotbecontracting
orhiringlocally.
» Localbusinesseswillnot
benefitfromthisprojectand
mayactuallyloserevenue.
» Theskillsnecessaryfor
employmentarebeyondmost
ofourcitizens’abilities.
» Thecompanyjustwants
toexploitourcommunity
foritsprofits.
If the community issues remain unresolved, the community opposition is often joined by opportunistic outside ideological groups, essentially taking over from the locals and polarizing the project. When polarization occurs, the proposed project will move into the disruptive issue stage. At this point the project proponent has virtually lost the ability to satisfactorily respond to and resolve the individual and community issues. Instead, the decision process will fall under the authority of regulatory, judicial and/or legislative entities.
As community issues increase in intensity from emerging, through existing to disruptive, the range of options for issue resolution diminishes. Unfortunately, the least costly options are the first casualties, and the ones that remain to the last are the ones so expensive that they may be impos-sible to implement, as shown above.
Managing CoMMunity issuesManaging community issues that have the potential to delay or block proposed projects falls into two cat-egories: issues prevention and issues intervention. Both categories require that project managers have crucial social and cultural knowledge about the citizens and communities likely to be impacted by the proposed project.
Issues PreventIon It has been our experience that many issues as-sociated with proposed projects can be prevented and need not occur. All communities are different because they have unique histories, are geographical-ly defined and are populated by diverse individuals. Therefore, each community has a unique set of social and cultural dynamics that are different, requiring that each community be addressed in a custom designed fashion. By taking up-front time to understand the social and cultural dynamics of communities and the issues within those communities, project managers can design projects that are sensitive to the traditions, be-liefs and culture of the geographic area of impact. Projects designed with social and cultural knowledge will be more congruent with the deep values of com-munities and their unique traits. This will help to avoid the creation of fears in citizens by recognizing the issues that exist in the community and new issues that the project will likely create.
Issues InterventIon When legitimate citizen issues arise or if outside groups insert ideological
COMMUNITY ISSUES
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threats into the siting and permit-ting process, project managers can effectively intervene in those issues by asserting wisdom based on social and cultural knowledge. Issues in their emerging and existing stages can be effectively addressed through: » Earlydetection
» Knowingandaddressingthe
rootcauses,nottherhetoric
» Workingwiththosecarrying
theissuetoidentifysolutions,
preventingthecontinued
appropriationofissues
byorganizedgroups
» Formulatingresponsesinthe
languageofthecommunity
» Verifyingresponseactions
withtheissueownersprior
toimplementation
Project managers who are in align-ment with the community’s beliefs and traditions and how they influence community reaction to outside forces, can be better equipped to respond with effective issue resolution actions. Those actions will be focused on the root causes and grounded in the values and language of the community.
unDerstanDing the soCial/Cultural paraMeter—soCial eCologyHow do project managers trained in the technologies of natural gas or electricity begin to understand the social/cultural parameter of the project decision space? The first step is to realize that traditional commu-nity relations, public information and governmental affairs approaches are, by their nature, employed too late in the process. Those traditional pub-lic disciplines overly rely on formal processes like public meetings, printed materials and media releases, which reach only a small fraction of a com-munity and are often not considered
to be sources of credible information. Therefore, they do not provide project managers with relevant knowledge of a community; nor do they provide community access that will assist in maintaining a viable social/cultural parameter in the project decision space.
It is necessary to understand that communities are living organisms made up of component parts. Understanding how the components work together to shape and influence the entire com-munity is called social ecology. There are several social and cultural compo-nents of a community that company employees can be trained to observe and integrate into the decision process. » SettlementPatterns:Whydo
peoplelivehere?Whydothey
stay?Whydotheyleave?
» WorkRoutines:Whatdo
peopledotoenablethemto
stay?Whatwouldhaveto
happentomakethemleave?
» CommunityCaretaking:Howdo
peopletakecareofeachother,
helpingeachothersurvive?
» LeisureActivities:Inwhat
pursuitsdopeoplespend
theirnon-workingtime?
» CommunityIssues:Howdo
peoplelinkthemselvestogether?
Whataretheconcernsandissues
prevalentwithinthevarious
informalsocialnetworks?How
dopeopleorganizetoaddress
theirconcernsandissues?
» InformalCommunication
Networks:Howdoescredible
informationflowwithinthe
community?Howareopinions
formedwithinthecommunity?
Wheredopeoplegather?
Whoinfluenceswhom?
» CommunityBoundaries:What
arethenaturalorhuman
builtfeaturesthatpeople
usetodesignateanddefine
theircommunity?Howdo
peoplerelatetotheirnatural
environment?Whatarethe
wayspeopledefine“home”?
Employees can be trained to methodi-cally observe, record and pro-actively act upon their observations and findings. To
UNDERSTANDING THE COMMUNITY
CH
OIC
E
THE SOCIAL & CULTURAL DECISION PARAMETER
SE
CU
RIT
Y
PREDICTABILITY
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WELL-BEING
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understand the social ecology of infor-mation gathered in each of the compo-nents, it is necessary to begin identifying the patterns of similarities, overlaps and influences that each component has on the others. Understanding the ecology of the community can only be done by working with members of the commu-nity through the process. Understand-ing cannot be achieved in isolation.
The objective of the social ecology of a community regarding the pro-posed project is to develop a thorough understanding of how a community informally defines its sense of well-being prior to projects being proposed in formal regulatory processes.
CoMMunity sense of Well-BeingEvery individual, as well as every com-munity possesses a self-defined sense of well-being, knowing when they are comfortable and at ease and when comfortable and at ease and when
they are not. Fear and anger, which are usually the causes of community issues, arise when there are perceived threats to the sense of well-being. There are at least three elements on which resi-dents base their sense of well-being: security, choice and predictability.
securIty Is the proposed proj-ect safe? Will the proposed project ask the community to accept risks that are beyond their self-defined limits? Will the proposed project cause divisions in the wholeness and integrity of the community?
choIce How much control will the community have in the key decisions regarding the proposed project? Is there equity in risk and benefit between the project propo-nents and the community? Does the proposed project optimize the social, economic and ecological benefits to community residents? Have residents participated in identi-fying and developing such benefits?
PredIctabIlIty Will the pro-posed project insert unknowns into the life of the community beyond their ability to cope? Is the proposed project of a scale compatible with the values and trends currently affecting the community? Will the proposed project enhance the shared understand-ing of community sustainability?
Every community will define their sense of well-being differently based on their social ecology. For example, one community may have a high tolerance for risk based on their history and tra-ditions, while another community may have a low threshold for risk based on their past failures concerning previous-ly proposed ventures. When emerging and existing issues are detected, it is crucial to know which individuals and informal social networks are carrying those issues. Then, by working directly with those individuals and informal social networks, the root causes of these issues can be identified. Often, identifying the root causes of the issues is similar to peeling skin off an onion, because the issue owners may have difficulty articulating the perceived threat to their sense of well-being. A knowledge of the social ecology of the community coupled with gentle-ness and patience will go a long way to identifying the root causes of the issues and thereby identifying potential actions for satisfactory resolution.
effeCtively utilizing soCial eCology in projeCt DevelopMentJust as there are methods, processes, and science associated with the legal, fiscal, technological, physical and political parameters of the project deci-sion space, so it is with the social/cul-tural parameter. The knowledge gained by project managers regarding the social ecology of communities likely to be impacted by proposed projects can be used in the following project stages:
Project ProPosal » Definitionofpurposeand
needasitrelatestothe
impactedcommunities
w w w . r m e l . o r g 45
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» Community-sensitiveprojectdesign
» Projectconsistencywithcommunity
values,visionandplans
Project actIons» Identificationofcommunityissues
» Developmentofopportunitiestoaddressissues
» Assessmentofsocialandeconomicimpacts
» Publicinformationcontent,
languageandmethodologies
» Meaningfulandcollaborativecitizenengagement
» Effectivegroundedresponsetoissues
Project ImPlementatIon» Acceptablemonitoringprotocolsandprocedures
» Acceptableevaluationofprojectmilestones
» Ongoingcommunicationduringfits
andstartsinimplementation
Social ecology is a learned skill, and it is the new kid on the block that can become a valuable discipline used by project managers responsible for managing interdisciplinary teams of professionals. There are two important keys to making social ecology work effectively: 1) It must be used at the very beginning of projects; and, 2) It must have parity with the other disciplines in tactical and strategic project decision making.
ConClusionProject managers and regulators are well aware of the effects of community issues on project schedules, costs and eventual success or failure. Traditional public rela-tions efforts employed by project proponents and citizen participation requirements of regulatory agencies are often interpreted by communities as what the proponent is plan-ning to “do to us.” There is a better way. Social ecology includes the impacted communities into the project so that citizens interpret proposed actions as what the propo-nent is trying to “do with us” to improve quality of life.
Yes, this approach takes more time on the front end of projects, but the tradeoff is that it reduces the time and cost of responding to community driven disrup-tive issues that need not have occurred in the first place. And, it reduces the costly ineffectiveness of responding to the rhetoric of issues rather than positively addressing the root causes of issues. Social ecology, when employed correctly, assists in maintaining a viable and open social/cultural parameter in the project decision space.
Gary Severson is a Senior Associate, Corporate and Government Collaboration and Education Programs, at the JKA Group. James Kent is the President and Social Ecologist at the JKA Group. He can be reached at [email protected].
A version of this article was published in the Natural Gas & Electricity Journal, December 2012.
46 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
The FCC’s Pole Attachment Order is Promoting Broadband at the Expense of Electric Utilities
By Thomas B. magee, ParTner, Keller and hecKman llP
w w w . r m e l . o r g 47
ollowing several years of study and comments, the Federal Communications Commis-
sion (“FCC” or “Commission”) in April 2011 released a Report and Order on Reconsideration (“FCC Pole Attachment Order”) that comprehensively changed the manner in which the FCC regulates pole attachments subject to its jurisdiction. The Commission’s objectives were to promote broadband, reduce barriers to broad-band deployment and lower the cost of broadband deployment. The rate portions of that decision were recently affirmed on February 26, 2013 by the U.S. Court of Appeals for the D.C. Circuit and reconsid-eration of the operational rulings are still pending at the Commission.
Unfortunately, in reaching its decision, the FCC expressed no serious concern for the impact of its new pole attachment regulations on electric utilities and their ratepayers, and paid little attention to the operational and financial concerns raised by the utilities. As a result, the Order employs questionable reasoning to sup-port its conclusions, reflects an unfortu-nate misunderstanding of electric utility operations, and is proving very costly to electric utilities.
From the electric utility perspective, the FCC’s decision is onerous, disruptive and very expensive. It raises significant safety and operating concerns and is beginning to create a radically different pole attach-ment world going forward. Make-ready deadlines, drastically reduced attachment revenue, the regulation of joint use rela-tionships between electric utilities and In-cumbent Local Exchange Carriers (ILECs) like Verizon and AT&T, and the promo-tion of wireless antenna attachments in the electric space are already causing anxiety among utilities and having a profound effect. These rules, unless reconsidered by the FCC, unfortunately will be with us for a long time.
Regulatory BackgroundThe FCC has jurisdiction over attach-
ments to investor-owned utility poles, not
F
48 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
those of rural electric cooperatives and municipally-owned utilities. It also lacks jurisdiction over investor-owned utility poles in 20 states and the District of Columbia, which have opted to regulate pole attachments themselves. Neverthe-less, citing the FCC Pole Attachment Order, attachers have (mistakenly) been arguing that cooperatives and munis must follow FCC rules, and many of the 20 state public service
commissions that regulate attachments to IOU poles look to FCC pole attachment rulings for guidance.
In 1978, Congress added Section 224 to the Communica-tions Act of 1934, as amended, and directed the FCC to ensure that rates, terms and conditions for pole attachments by cable television systems were “just and reasonable.” A formula for calculating attachment rates for cable systems providing cable
service was included in the statute.In 1996, Congress expanded the defini-
tion of pole attachments to include not only cable attachments, but also attachments by “providers of telecommunications services,” and established a formula for calculating attachment rates for telecom providers (known as Competitive Local Exchange Carriers, or CLECs).
In 2007, the Commission issued a Notice of Proposed Rulemaking seeking comment on proposals by cable companies, CLECs and for the first time ILECs, for more favor-able terms of attachment.
The FCC Pole Attachment OrderIn GEnErAl
Motivated by a desire to promote broad-band deployment, the FCC Pole Attachment Order adopted multiple new rules designed to make the attachment process as quick, easy and cheap as possible for attachers. It is fair to say that in large part, many of the serious concerns expressed by utilities dur-ing the course of the proceedings were dis-carded or ignored by the Commission. The FCC’s much-touted National Broadband Plan, for example, approves FCC staff’s recommendations with citations to 38 fil-ings on behalf of attachers while citing only two (2) filings of electric utilities among the volumes we submitted.
Among other things, the Commission established (for the first time) a specific, expe-dited timetable for utilities to grant access to attachers. The Commission also “redefined” several statutory terms so that the telecom attachment rate would be drastically reduced to approximate the already low cable rate. Additionally, and perhaps most importantly, the Commission “reinterpreted” its previous decisions and several statutory provisions to allow ILECs sharing joint use of poles for the first time to request the lower, regulated telecom rate for their attachments.
w w w . r m e l . o r g 49
In reaching these decisions, the Commission’s an-nounced goal was to provide a single, unified rate for all attachers (cable, CLEC, ILEC), approximating the existing low cable rate, while requiring utilities to act within a relatively short deadline on all applications for attachment. In the Commission’s view, quicker, easier and cheaper access to utility poles will promote broad-band deployment, especially in rural areas.
For electric utility pole owners, the Order creates significantly more work providing notices and otherwise administering communications attachments. Utility operations can be significantly disrupted in order to accommodate attachers and a number of disputes with attaching entities already have surfaced.
Attachment agreements with cable operators and CLECs are being renegotiated, and many attachers have been busy recalculating the rates you can charge for attachments. Some ILECs have started demanding more favorable rates and terms, threatening FCC complaints against utilities to improve their existing joint use rela-tionships with utilities.
mAkE-rEAdy dEAdlInEsThe Commission created a new, four-stage make-
ready timetable in the FCC Pole Attachment Order, which requires IOU and ILEC pole owners to process most pole attachment requests (wireline and wireless) in the communications space within a total of 148 days:
Stage 1/Survey (45 days): The pole owner conducts an engineering survey to determine whether and where attachment is feasible and what make-ready is required;
Stage 2/Estimate (14 days): The pole owner provides an estimate of the make-ready charges to the attacher;
Stage 3/Acceptance (14 days): The attacher accepts the estimate and provides payment; and
Stage 4/Make-Ready (60 days): The pole owner notifies in writing all known attachers already on the pole, specifying where and what make-ready will be performed, setting a date for completion, allowing modifications of existing attachments within that pe-riod, and completing all necessary make-ready. During the make-ready period, a pole owner may notify the at-tacher that it will perform the make-ready work itself and take an additional 15 days (148 days total).
WiRElESS: Finding that a wireless carrier’s right to at-tach to pole tops is the same as it is to attach to any other part of a pole, the Commission determined to allow an ex-tra 30 days for make-ready regarding wireless attachments above the communications space (i.e., a total of 178 days).
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lARgER REquEStS: For requests to attach to more than 300 poles or 0.5% of a utility’s total poles within a state (whichever is less), an additional 15 days is allowed for the survey and 45 days for make-ready. For requests to attach to more than 3000 poles (or 5% of a utility’s poles state-wide), the timeline is negotiated.
fAiluRE to coMply: If a utility does not comply with the survey or make-ready deadlines, attachers are free to engage a utility-approved contractor to perform neces-sary work in the communications space. If the make-ready deadline is missed for wireless attachments above the com-munications space, the sole remedy is for the attacher to file a complaint at the FCC.
The make-ready deadlines are but one example of where the FCC ignored electric utility concerns. The electric utility industry gathered en masse at the FCC on two occasions to explain to Commission staff and legal advisors why the FCC’s proposal to establish make-ready deadlines will not work in the real world of electric utilities. The first meeting included 49 people from the electric utility industry. The second included about 35 utility representatives. I moder-ated lengthy panel discussions at both meetings, explaining our concerns. Most of these concerns were ignored in the Commission’s Order.
rEdUCTIOn In ThE TElECOm ATTAChmEnT rATE
With respect to rates, the Commission’s goal was to reduce them to a level “as low and as close to uniform as possible.” What that means to the FCC is a level sufficient so that no one can complain that it’s an unconstitutional taking of electric utility property without just compensation. To do that, the FCC came up with a scheme to “reinterpret” the Pole Attachment Act so that the existing telecom rate can be reduced to a level that will approximate the existing cable rate. This statutory interpretation and new rate calculations that ensued are about as logical as something you would hear in Alice in Wonderland.
nEw rEGUlATIOn OF IlEC JOInT UsE ATTAChmEnTs
For more than 100 years, the relationship between pole owners (electric utilities and telephone companies) was gov-erned by mutually agreeable, private contracts (joint use agree-ments) and not by the rules and regulations of the FCC or any other federal government agency. It was widely recognized that ILECs had no statutory right of access to utility poles, and that they were not entitled to regulated rates, terms or conditions for their attachments. Instead, the joint use arrangement was mutually negotiated by the parties at arms’ length, since each needed access to the other’s poles. That longstanding arrange-ment, at least for ILEC attachments on regulated IOU poles, has now been upended by the Pole Attachment Order.
While recognizing that ILECs have no statutory right to demand access to utility poles, the FCC has now ruled for the first time that ILECs are nonetheless entitled to file pole attachment complaints at the Commission seeking to receive regulated rates, terms and conditions for their at-tachments similar to those currently granted to CLEC and cable operators. In response, some IOUs may be forced to reduce the ILEC attachment rates specified in their joint use contracts (and the resulting revenues) by more than 80 per-cent (e.g., from 45 percent of annual costs to as low as 7.4 percent). The impact on electric utility access to ILEC poles was almost completely ignored by the Commission.
This FCC ruling on ILEC jurisdiction alone, which has now been upheld by the courts, is designed to require electric utility ratepayers to subsidize ILECs with hundreds of millions of dollars of additional revenues each year. Util-ity ratepayers, however, were forgotten completely in the FCC’s Pole Attachment Order. Instead, the Order acted as if this additional ILEC revenue was simply lying on the street waiting for the FCC to pick it up.
Amazingly, the FCC bought into the ILEC arguments that
w w w . r m e l . o r g 51
ILECs have lost their bargaining power in joint-use relation-ships because they now own fewer poles than the electric util-ities and as a result electric utilities are taking advantage of them. This fabricated claim does not reflect the experience of any electric utility I know. The nationwide experience instead is that ILECs have been shirking their joint-use responsibili-ties for years and not installing the number of poles they should be installing to keep up pole ownership parity levels. Their claim of being taken advantage of thus reminds me of the criminal defendant who murdered his parents yet then asks the court for mercy because he’s an orphan.
Appeal Proceedings couRt AppEAl. On May 18, 2011, a group of investor-owned electric utilities filed an appeal of the FCC Pole Attach-ment Order in the U.S. Court of Appeals for the District of Columbia Circuit. The utilities challenged three of the FCC’s new rules: (1) the rule allowing ILECs to file pole attachment complaints; (2) the lower telecom rate formula; and (3) the rule establishing a refund period dating back to the applicable statute of limitations. A host of cable companies, telephone
companies and their trade associations intervened in support of the FCC’s new rules. A different group of IOUs (the Coali-tion of Concerned Utilities) filed as interveners in support of the other utilities’ appeal of the rules, and the Edison Electric Institute (EEI) filed as an amicus curiae (“friend of the court”).
The D.C. Circuit heard oral argument on January 23, 2013 and ruled February 26, 2013 to affirm the FCC’s rules. REconSidERAtion At fcc: On June 8, 2011, the Coalition of Concerned Utilities that filed as Intervenors in support of the appeal also requested reconsideration by the FCC of certain aspects of the decision. The utilities asked the FCC, among other things: (1) to reconsider the make-ready deadlines and address certain attacher rearrangement issues; (2) to allow pole owners to impose penalties for safety violations; (3) to disallow pole top antenna attach-ments in certain circumstances; and (4) to prohibit retroac-tive refunds earlier than the effective date of the FCC Pole Attachment Order. Certain cable and telephone interests, on the other hand, asked the FCC to lower the telecom rate even further on reconsideration.
The FCC has waited for the D.C. Circuit to rule on appeal before addressing these reconsideration issues, and the Commission’s decision could be released any day now.
ConclusionThis is a very complex and far-reaching decision. It
includes a lot of ambiguities and misunderstandings, and begs for further explanation from the FCC. Many issues need to be clarified which the FCC at this point does not seem to understand. For the time being, however, the FCC Pole At-tachment Order stands as a ruling by a broadband-obsessed Commission that shows a stunning disregard for electric util-ity concerns. And now that the D.C. Circuit has affirmed the Commission’s rate rulings, we can all expect ILECs and other entities to seek lower attachment rates.
Tom Magee advises electric utility and other infrastructure clients on a variety of telecommunications matters before the Federal Communications Commission, federal and state courts, and state and local regulatory authorities. His primary focus is on pole attachment and joint use regulation, and the FCC’s licensing of private wireless telecommunications services. Mr. Magee has been privileged in this proceeding to represent, along with his partner Jack Richards of Keller and Heckman, LLP, the Coalition of Concerned Utilities, composed at various times from a group of more than a dozen investor-owned utilities (Al-legheny Power, Baltimore Gas and Electric, Consumers Energy, Dayton Power and Light, Detroit Edison, FirstEnergy Corp., Hawaiian Electric Co., National Grid, NSTAR, Pepco Holdings, PPL Electric Utilities, South Dakota Electric Utilities, Wisconsin Public Service Company, and Xcel Energy). He can be reached at (202) 434-4128; [email protected].
52 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
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77 Energy&ResourceConsultingGroup,LLC
78 EnergyReps
79 EqualElectric,Inc.
80 ESC|engineering
81 EstesParkLight&PowerDept.
82 ExponentialEngineeringCompany
83 FinleyEngineeringCompany,Inc.
84 FoothillsEnergyServicesInc.
85 FortCollinsUtilities
86 FosterWheeler
87 FuelTech,Inc.
88 GardenCityMunicipalUtilities
89 GEPower&Water
90 Genscape,Inc.
91 GolderAssociates,Inc.
92 GrandIslandUtilities
93 GrandValleyRuralPowerLines,Inc.
94 GreatSouthwesternConstruction,Inc.
95 GunnisonCountyElectricAssociation,Inc.
96 HamiltonAssociates,Inc.
97 HamonResearch-Cottrell
98 HarrisGroup,Inc.
99 HartiganPowerEquipmentCompany
100 HawkeyeHelicopterLLC
101 HDR,Inc.
102 HighEnergy-Inc.(HEI)
103 HighPlainsPower,Inc.
104 HighlineElectricAssn.
105 HitachiPowerSystemsAmerica,Ltd
106 HolyCrossEnergy
107 HomerElectricAssociation,Inc.
108 HowardElectricCooperative
109 HubbellPowerSystems
110 HughesBrothers,Inc.
111 IBEW,LocalUnion111
112 IMCORP
113 IndependencePower&Light
114 IntercountyElectricCoopAssociation
115 IntermountainRuralElectricAssn.
116 Irby
117 IrwinIndustries,Inc.-PowerPlantServices
118 J.L.Hermon&Associates,Inc.
119 KahunaVentures,LLC
120 KansasCityBoardofPublicUtilities
121 KDJohnson,Inc.
122 Kiewit
123 KitCarsonElectricCooperative
124 Kleinfelder
125 KlondykeConstructionLLC
126 LaJuntaMunicipalUtilities
127 LaPlataElectricAssociation,Inc.
128 LakeRegionElectricCoopInc.
129 LamarUtilitiesBoard
130 LaminatedWoodSystems,Inc.
131 Lane-ScottElectricCooperative,Inc.
132 LaurenEngineers&Constructors
133 LEADERSHIPABusinessImperative,Inc.
134 LewisAssociates,Inc.
135 LincolnElectricSystem
136 LlewellynConsulting
137 LongmontPowerandCommunications
138 TheLouisBergerGroup
139 LoupRiverPublicPowerDistrict
140 LovelandWater&Power
141 Luminate,LLC
142 MarsulexEnvironmentalTechnologies
143 Merrick&Company
144 MissouriRiverEnergyServices
145 MitsubishiPowerSystemsAmericas,Inc.
146 MorganCountyRuralElectricAssn.
RMEL Member Companies
w w w . r m e l . o r g 53
Together with your local public power utility.
it’s like a good cup of coffee
Your electricity is there when you wake up and when you finish supper. It’s available 24 hours a day, 7 days a week and remains affordable, with rates among the lowest in the nation.
nppd.com 877-275-6773 (ASK-NPPD)
scan to learn more about the benefits of public power.
54 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
member listings
147 MountainParksElectric,Inc.
148 MountainStatesUtilitySales
149 MountainViewElectricAssn.
150 Mycoff,Fry&ProuseLLC
151 NAESCorp.
152 Navigant
153 NavopacheElectricCooperative,Inc.
154 NebraskaPublicPowerDistrict
155 NEIElectricPowerEngineering,Inc.
156 NewMexicoStateUniversity
157 Nol-TecSystems,Inc.
158 Nooter/Eriksen,Inc.
159 NorrisPublicPowerDistrict
160 NorthPlatteLight&Power
161 NortheastCommunityCollege
162 NorthwestRuralPublicPowerDistrict
163 NovindaCorporation
164 NVEnergy
165 OICOutage
166 OmahaPublicPowerDistrict
167 OmniconTechnicalSales
168 On-RampWireless
169 OsmoseUtilitiesServices,Inc.
170 OteroCountyElectricCooperative
171 PacifiCorp
172 PanhandleRuralElectricMembershipAssn.
173 PARElectricalContractors,Inc.
174 PCSMobile
175 PetersonCo.
176 PikeElectric,LLC
177 PineValleyPower,Inc.
178 PioneerElectricCooperative,Inc.
179 PipefittersLocalUnion#208
180 PlatteRiverPowerAuthority
181 PNMResources
182 PoudreValleyRuralElectricAssn.
183 POWEREngineers,Inc.
184 PowerEquipmentSpecialists,Inc.
185 PowerPoleInspections
186 PowerProductServices
187 PowerQuipCorporation
188 PrecisionResourceCompany
189 ProvoCityPower
190 QuantaServices
191 RatonPublicService
192 RECAssociates
193 ReliabilityManagementGroup(RMG)
194 ReliablePowerConsultants,Inc.
195 Rkneal,Inc.
196 RossiGroup,LLC
197 SabreTubularStructures
198 SafetyOneInc.
199 SAIC
200 SanIsabelElectricAssn.
201 SanLuisValleyRuralElectricCooperative
202 SanMarcosElectricUtility
203 SanMiguelPowerAssn.
204 SangreDeCristoElectricAssn.
205 Sargent&Lundy
206 SavageServicesCorporation
207 Scientech
208 SegaInc.
209 SiemensEnergyInc.
210 SierraElectricCooperative,Inc.
211 SierraSouthwestCooperativeServices,Inc.
212 SNC-LavalinConstructorsInc.
213 SolomonAssociates
214 SouthCentralPPD
215 SoutheastColoradoPowerAssn.
216 SoutheastCommunityCollege
217 SouthernPioneerElectricCompany
218 SouthwestGeneration
219 SouthwestTransmissionCooperative,Inc.
220 SouthwesternPowerAdministration
221 SouthwireCompany
222 SPIDAWebLLC
223 SpringfieldMunicipalLight&Power
224 SPXCoolingTechnologies
225 SPXTransformerSolutions,Inc.
226 SRP
227 StanleyConsultants,Inc.
228 STEAGEnergyServicesLLC
229 StormTechnologiesInc.
230 STRUCTURAL
231 SturgeonElectricCo.,Inc.
232 SulphurSpringsValleyElectricCooperative
233 SundtConstruction
234 SunflowerElectricPowerCorporation
235 T&RElectricSupplyCo.,Inc.
236 TechnicallySpeaking,Inc.
237 TestAmericaLaboratories,Inc.
238 Thomas&BettsSteelStructuresDivision
239 TIC-TheIndustrialCompany
240 Total-Western,Inc.
241 Towill,Inc.
242 Trachte,Inc.Buildings&Shelters
243 TransAmericanPowerProducts,Inc.
244 Transmission&DistributionServices,LLC
245 TRCEngineers,Inc.
246 TreesInc
247 Tri-StateGenerationandTransmissionAssn.
248 Trimble
249 TrinidadMunicipalLight&Power
250 U.S.WaterServices
251 UCSynergetic
252 UlteigEngineers,Inc.
253 UnitedPower,Inc.
254 UniversalFieldServicesInc.
255 UniversityofColorado
256 UniversityofIdahoUtilityExecutiveCourseCollegeofBusinessandEconomics
257 UNSEnergyCorporation
258 URSEnergy&ConstructionInc.
259 UtilityEthernetForum
260 UtilityTelecomConsultingGroup,Inc.
261 Victaulic
262 WärtsiläNorthAmerica,Inc.
263 WazeeCompaniesLLC
264 WESCO
265 WestPlainsEngineering,Inc.
266 WestarEnergy
267 WesternAreaPowerAdministration
268 WesternCulturalResourceManagement,Inc.(WCRM,Inc.)
269 WesternLineConstructorsChapter,Inc.NECA
270 WesternNebraskaCommunityCollege
271 WesternUnitedElectricSupply
272 WestinghouseElectricCompany
273 WestwoodProfessionalServices
274 WheatBeltPublicPowerDistrict
275 WheatlandElectricCooperative
276 WheatlandRuralElectricAssn.
277 WhiteRiverElectricAssn.,Inc.
278 WhiteRiverValleyElectricCooperative
279 WilliamW.Rutherford&Associates
280 WorleyParsonsGroup,Inc.
281 WyrulecCompany
282 XcelEnergy
283 Y-WElectricAssociation,Inc.
284 YampaValleyElectricAssociation,Inc.
285 ZachryHoldings,Inc.
ToTaL NuMbER of MEMbERs: 285
w w w . r m e l . o r g 55
In an age where contractors are here today and gone tomorrow, we are extremely proud of our heritage and longevity. Constant refinement, innovation and invest-ments in our business practices, safety programs and people have made us one of the region’s top specialty contractors.
Providing quality electric utility construction • overhead & underground distribution • transmission •substations • emergency restoration • renewable energy
SOME THINGS GET BETTERWITH AGE.www.sturgeonelectric.com
Member MYR Group
R
www.stanleyconsultants.com800.878.6806
• Feasibility Studies • Siting & Permitting • Power Plant Design • Plant Upgrades & Retrofits • Air Quality Control Services• Transmission & Distribution• Substations & Switchyards• Construction Management & Inspection Services• Owner’s Engineer
C E L E B R AT I N G
ENGINEERING A BETTER WORLD
56 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
January 17, 2013introduction to the electric Utility WorkshopDenver, co
January 29, 2013Utility Financing for non-Financial Personnel WorkshopDenver, co
February 7-8, 2013Distribution engineers WorkshopDenver, co
February 22, 2013safety roundtable - February 2013Denver, co
March 7-8, 2013Power supply Planning and Projects ConferenceDenver, co
March 8, 2013generation Vital issues roundtableDenver, co
March 12-13, 2013transmission Planning and Operations ConferenceDenver, co
March 13, 2013transmission Vital issues roundtableDenver, co
March 14-15, 2013Distribution Overhead and Underground Operations and maintenance ConferenceDenver, co
March 15, 2013Distribution Vital issues roundtableDenver, co
March 28, 2013electric Utility Workforce management roundtableDenver, co
April 4-5, 2013Arc Flash low Voltage and High Voltage WorkshopDenver, co
April 10-12, 2013Distribution Overhead and Underground Design and staking Workshoptempe, AZ
April 23-24, 2013Health and safety ConferenceDenver, co
April 24, 2013safety roundtable - April 2013Denver, co
May 19-21, 2013spring management, engineering and Operations ConferenceVail, co
June 13-14, 2013Plant management Conferencegolden, co
June 14, 2013Plant management roundtablegolden, co
June 27, 2013transmission Operations and maintenance ConferenceDenver, co
July 9, 2013rmel golf tournamentwestminster, co
August 30, 2013safety roundtable - August 2013Fort collins, co
September 8-10, 2013Fall executive leadership and management Conventionmarana, AZ
September 26, 20132014 spring management, engineering and Operations Conference Planning sessionDenver, co
October 3, 2013Distribution Automation ConferenceDenver, co
October 10, 2013OsHA reporting, Workforce regulations, FmlA seminarDenver, co
October 17, 2013renewable Planning and Operations ConferenceDenver, co
November 15, 2013safety roundtable - november 2013westminster, co
2013 Calendar of Events
COntinUing eDucAtion CertiFiCAtescontinuing education certificates awarding professional Development
Hours are provided to attendees at all rmel education events. check the
event brochure for details on the number of hours offered at each event.
rmel 2013 CAlenDAr
Consulting • Engineering • Construction • Operation I www.bv.com
Solutions from a provider you can trust.
Our brand is about relationships and providing reliable energy solutions — working collaboratively with clients to earn repeat business and delivering the level of quality expected from Black & Veatch. From concept to completion, fresh insight and endless global expertise are delivered on time and on budget for power generation, power delivery and telecommunications solutions you can count on.
We’re building a world of difference. Together.
Reliable
Proven
58 e l e c t r i c e n e r g y | s p r i n g 2 0 1 3
ADVertiser inDex
AMEC InsideFrontCover www.amec.com (770)810-9698
Black&VeatchCorp. 57 www.bv.com (913)458-2000
BorderStatesElectric 28 www.borderstateselectric.com (701)293-5834
CaliforniaTurbo,Inc. 55 www.californiaturbo.com (800)448-1446
CoBank 21 www.cobank.com (800)542-8072
ColoradoPowerline,Inc. 33 (303)660-3784
DIS-TRANPackagedSubstations,LLC 53 www.distran.com (318)448-0274
ERGConsulting 19 www.ERGconsulting.com (203)843-0600
FuelTech 17 www.ftek.com (630)845-4500
GreatSouthwesternConstruction,Inc. 32 www.gswc.us (303)688-5816
HDR,Inc. 27 www.hdrinc.com (402)399-1000
HarrisGroup,Inc. 44 www.harrisgroup.com (303)291-0355
HitachiPowerSystemsAmerica,Ltd. 41 www.hitachipowersystems.us (908)605-2800
HughesBrothers 29 www.hughesbros.com (402)643-2991
Kiewit BackCover www.kiewit.com (913)928-7000
KVA/WESCO 11 www.KVAsupply.com (303)217-7500
LaminatedWoodSystems,Inc. 45 www.lwsinc.com (402)643-4708
Lauren 3 www.laurenec.com (325)670-9660
Merrick&Company 32 www.merrick.com (303)751-0741
NebraskaPublicPowerDistrict 53 www.nppd.com (402)564-8561
OiCGroup 23 www.oicoutage.com (978)281-1991
PioneerElectricCooperative,Inc. 8 www.pioneerelectric.coop (620)356-4111
POWEREngineers 3 www.powereng.com (208)788-3456
SabreTubularStructures 49 www.SabreTubularStructures.com (817)852-1700
Siemens InsideBackCover www.siemens.com (303)696-8446
Sega,Inc. 49 www.segainc.com (913)681-2881
StanleyConsultants,Inc. 55 www.stanleygroup.com (303)799-6806
SturgeonElectricCo.Inc. 55 www.myrgroup.com (303)286-8000
T&RElectricSupplyCo.,Inc. 12 www.tr.com (800)843-7994
TreesInc. 45 www.treesinc.com (866)865-9617
UlteigEngineers,Inc. 7 www.ulteig.com (877)858-3449
UniversityofIdahoSummit 13 www.uiueg.org (208)885-6265
Young&Franklin 9 www.yf.com (315)457-3110
ZachryHoldings,Inc. 43 www.zhi.com (210)588-5000
CODE: SMN-11-111-R1 PUB/POST: Electric Energy Magazine PRODUCTION: Don Hanson LIVE: 7.625” x 10.125”
DESCRIPTION: Sustainable Cities/ENERGY - Fifty States WORKORDER #: 003549 TRIM: 8.375” x 10.875”
Delivery Support: 212.237.7000 FILE: 01A-003487-01C-SMN-11-111.indd SAP #: SMN.SMNCOR.12012.K.011 BLEED: 8.625” x 11.125”
Art: SMN11026A_001D_SWP_pct.tif (CMYK; 397 ppi; Up to Date), SMN- Siemens Logo Lockup-4C.ai (Up to Date)
siemens.com/energy
The nation’s need for energy needs answers for all types of energy.
Fifty states, fifty states of energy.
In the Northeast, storms threaten the reliability of power. In the Southwest, heat waves tax the grid. Big cities dot the Atlantic seaboard. While out West, towns are separated by hundreds of miles of wilderness. It‘s a massive country, with energy needs that can differ massively depending on where you are. That’s why a single answer is not enough.
Siemens has a wide range of lasting energy answers to help the utilities that power the country meet their unique requirements. We provide our customers with efficient
energy solutions fitted to their diverse local, ecological and economic needs.
And, as we tackle environmental challenges, we keep finding ways to make conventional fuels cleaner than ever before. We help customers integrate renewable power, and we remain committed to using our nation’s resources responsibly.
The journey to a new kind of energy system needs all types of answers. Answers today, and answers that last.
©Siem
ens A
G, 2011. A
ll Rig
hts R
eserved.