©2006 centerpoint energy proprietary may 20071 version 1 1 distribution project management project...

1©2006 CenterPoint Energy ProprietaryMay 2007 1Version 1

Distribution Project ManagementProject Overview

SWEDE ConferenceSan Antonio, Texas

May 11,2007

May 2007 2©2006 CenterPoint Energy Proprietary

Distribution Project Management (DPM) was created in order to:

Distribution Project Management

• Provide project management oversight on major projects

• Gain efficiencies and improve collaborative efforts• Provide single point of contact and coordination over

URD subdivision projects (electric, street lighting and gas)

• Provide consistencies in the areas of design and the application of service extension standards


Business Concept

• Distribution Project Management will receive plans from various groups, i.e. internally through Engineering, Planning, Joint Use or Service Centers, externally from Developers, City, State TX DOT, Developer, Metro, etc.

• Distribution Project Management will be responsible for tracking, scheduling, coordinating, designing, budget control, permits, logistics, customer notification, outage coordination, assignment of construction forces, quality assurance and work order completion of project.

• Responsibility of Group will include Underground Residential Distribution (including associated residential street lighting and gas), Street Lighting (decorative, governmental and all maintenance) Overhead Infrastructure Development Projects, Overhead Road Widening Projects, Overhead Line Relocations, Distribution Line Clearance and Contract Services.


Objectives

• Recognize operational efficiencies through consolidation of activities

• Improve communication and construction efforts regarding infrastructure projects

• Provide consistency to repeat customers, including Developers, Cities, State, TX DOT, Metro and large customers

• Reduce Cost Per Lot in URD applications• Reduce Cost Per Foot in Overhead applications• Achieve CenterPoint Energy’s Business Strategy

of “One Company”


Risks

• Increased Span of Control results in less oversight• Transition of existing projects to new group• Goals misalignment of various operating groups• Less employees to share peak work loads & EOP

assignments• Employees become specialized in an activity and lose

flexibility• Learning Curve – Need time to train individuals to

perform new functions• Increased drive time


Opportunities

• Gain Efficiencies and Improve Collaboration Efforts– Through consolidation and specialization operational efficiencies

will be recognized

– Increased project management control – One group overseeing project types rather than 12 service centers battling for resources

– Improved consistency – Developers, Cities, State and TX DOT will be handled in a more consistent manner due to the consolidated effort

– Collaboration – All areas of infrastructure development will reside within Projects Group resulting in improved communication and timing


Key Performance Indicators

• Complete all top 10% circuit tree trimming between October 1 and March 31

• Reduce new overhead construction cost per foot• Reduce URD cost per lot (fully loaded)• Achieve need date performance greater than 75%• Achieve material planned versus actual variance less than 8%• Achieve material returns less than 5%• TECO (back-office complete) 90% of all work orders within

45 day of field completion


Key Performance Indicators

• Reduce overhead and underground street light installation cost per lamp

• Reduce the distribution line mile cost to trim as compared to 2005 and 2006

• Respond to 95% of street light orders (SLOs) within 48 hours of notification

• Respond to 75% of street light cable cuts and knockdowns within 21 days of notification

• Achieve an average of 35 days from walk to energize on URD joint trench projects

• Achieve DPM safety metric for LTI, RIR, PVI


DPM Functional Areas

Distribution Project Management currently has responsibility over five main functional areas:

– Underground Residential Development (URD)

– Overhead Projects

– Street Lighting Design and Maintenance

– Line Clearance Operations (Tree Trimming)

– Contract Administration


Organizational Structure

URD OverheadLighting

Design and Maintenance

DistributionProject

Management

Chris OliverSupervisor

(281) 561-3214

Herman HaudeSupervisor

(713) 945-4959

Carlton PorterSupervisor

(713) 945-3764

Frank JeanesDirector

(713) 207-5858

Line Clearance Operations

(Tree Trimming)

Ron BrittSupervisor

(713) 945-4731


Staffing Levels

• URD Group– 1 Supervisor– 20 Service Consultants– 3 Quality Assurance

Coordinators– 3 Administration

• Overhead Group– 1 Supervisor– 9 Service Consultants– 3 Quality Assurance

Coordinators– 3 Administration

• Street Lighting Group

– 1 Supervisor

– 5 Service Consultants

– 1 Street Lighting Maintenance Coordinator

– 2 Administration

• Line Clearance Operations

– 1 Supervisor

– 9 Foresters


Underground Residential Development (URD)

The URD team manages the following types of projects:– Residential Subdivision Projects

• All Joint Trench projects and all URD projects greater than 10 lots

– Apartment Projects

– Town Home Projects • Non-Overhead service projects

– Condominium Projects • Single Phase Underground projects

• Non-High-rise projects


Overhead Projects

The Overhead team manages the following types of projects:

– Distribution Development Projects - Planned• System infrastructure development projects

– Distribution Development Projects – Unplanned• Projects associated with URD projects

– Road Widening Projects– Relocation Projects

• Greater than five poles


Street Lighting

The Street Lighting team manages the following types of projects:

– Decorative Lighting Design Projects

– Governmental Lighting Design Projects

– System Rehabilitation Projects

– Street Light Maintenance


Gas Design

The responsibility for Gas design and project management is being integrated into the URD portion of the Distribution Projects Management team. Full roll-out will be completed by July 1, 2007.

Upon integration, team responsibilities will include coordination of the following: – Consolidated Joint Trench Projects– Short ties to connect Joint Trench Projects to main

gas distribution lines


Physical Work Locations

Distribution Project Management personnel will be located in one of three regional offices:

• South Houston Regional Office 4700 S. Shaver (Between Hwy. 3 and Allen Genoa) Houston, TX 77034

• Sugar Land Regional Office13300 W. Bellfort (Between S. Dairy Ashford and Eldridge)Houston, TX 77099

• Greenspoint Regional Office2301 Gears Rd. (Between Veterans Memorial and T.C. Jester)Houston, TX 77067


Geographic Areas of Responsibility

• Sugar Land Region Office– Sugar Land Service Area

– Fort Bend Service Area

– Bellaire Service Area

– Spring Branch Service Area

– Katy Service Area



• South Houston Region Office– South Houston Service Area

– Baytown Service Area

– Galveston Service Area

– Hiram Clarke Service Area



• Greenspoint Region Office– Greenspoint Service Area

– Humble Service Area

– Cypress Service Area


Additional Responsibilities

Distribution Projects Management personnel will also be responsible for the assignment, scheduling and construction coordination of all Service Center originated work that will be assigned to a contractor.


Transitional State

• Street Lighting design and project management coordination within subdivisions is being integrated into the URD projects group.

• Gas design and project management coordination within subdivisions, exclusive of large feeder mains, is being integrate into the URD projects group.


Implementation Timeline

• 10/04/06 - Notification of personnel of new work locations and job assignments

• 10/09/06 – Begin project file clean-up and organization in preparation of move. This includes notification to developers

• 10/19/06 & 10/20/06 – Physical move of individuals and project files to new locations

• 10/23/06 – DPM is Open for Business

• 01/02/07 – Begin Street Lighting and Gas training (two months at each location)

• 07/02/07 – Full Operation in all aspects of project plan


Questions ?

©2006 centerpoint energy proprietary may 20071 version 1 1 distribution project management project...

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