distribution community insights conference august 20-22, 2013 vail, colorado 2014 electric t&d...
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Distribution
Community Insights Conference
August 20-22, 2013
Vail, Colorado
2014 Electric T&D Benchmarking
2
Agenda -- Distribution
◼ Overview
◼ 2014 Performance Results
◼ Process Model – Context Structure Modules Included
◼ Modules – Scope, Key Success Factors, Findings Asset Management New Business Construction & Work Management/Scheduling
◼ Next Steps
On-Sites Prep How to Use Results (Getting SMEs Involved)
Develop Network Strategy
Develop and Approve Asset Plans
Project/Portfolio Management
A Process Model for Managing the Network
4
Expand Network
Operate Network
Sustain Network
Add New Customers
Respond to Emergencies
We’ll present much of the information in the context of the process model shown below, with a number of the major process blocks broken into “modules” for analysis and discussion.
5
Insights Overview
Spending levels were significantly affected by the economic recession over the past four years.◼ Distribution O&M spending reached a low point at the depth of the
recession in 2009, and has been climbing for the past 5 years.◼ Distribution Capital spending began to recover 2 years ago. The
increase is driven by replacement capital spending more than new business, which continues to be slow.
Improvement initiatives cover a broad spectrum for our panel◼ O&M cost reduction is becoming an increasingly important focus,
because of the multi-year increases in spending and the rates pressure that creates.
◼ The continued low new business has enabled companies to increase investments in replacement/refurbishment spending for reliability improvement.
Distribution Lines Demographic Profile
Min Mean Max # of BarsService Territory
Density: Customers per Square mile 1.90 338.90 975.02 16Density: Customers per Distribution Circuit mile 17.61 51.34 101.26 15
Percent of Distribution Circuit Miles Underground 13% 37% 63% 15Percent of Switches outside the substation remotely operated 0% 11% 62% 11
Managed Trees per OH Distribution Structure Mile 13.25 13.25 13.25 1
Wage Rate: Distribution Journey Level Line Worker $35.30 $39.13 $42.14 12
Distribution Staffing: FTEs per 100,000 Customers 39.19 79.94 143.02 11Percent of staffing group represented by a union/bargaining unit: Distribution Field 49% 86% 100% 10KWh Sold per Distribution End-Use Customer 18337 27036 35496 15Percent of Customers: Commercial/Industrial 9.01% 11.60% 18.28% 16Percent of Load: Commercial/Industrial 12.57% 56.19% 67.85% 14
System - DemographicsVoltage Levels
5kV class = >1kV, <=9kV0.0% 11.7% 57.0% 14
15kV class = >9kV, <=15kV0.0% 63.2% 99.0% 14
25kV class = >15kV to <=26kV0.0% 16.1% 86.7% 14
35kV class = >26kV to <=36kV0.0% 8.6% 53.9% 14
44kV class = >36kV to <=44kV0.00% 0.41% 5.80% 14
Financial - DemographicsDistribution Line Assets per Customer $1,672 $2,823 $4,102 15
2013YE 2012YE
Mean Q1 Q2 Q3# of Bars
Mean Q1 Q2 Q3# of Bars
O&M Cost Distribution O&M per customer $89.07 $67.90 $86.74 $115.43 15 $82.68 $71.07 $77.31 $99.31 18
Distribution O&M per circuit miles $4,358 $2,956 $3,782 $5,918 15 $4,001 $2,474 $3,157 $5,314 18
Distribution O&M per MWh $3.39 $2.63 $3.23 $4.26 15 $3.04 $2.50 $2.69 $3.76 17
Distribution O&M per Total Dist. Assets 3.34% 2.38% 3.01% 3.75% 15 2.86% 2.13% 2.94% 3.55% 18
Investment Rate
Distribution Line Capital Spending less New Lines per Asset [Activity Based] 4.75% 5.51% 3.83% 3.04% 12 4.17% 5.12% 3.50% 2.95% 15
Distribution line Cost Profile
8
O&M costs are higher than last year. Replacement capital spending is up from last year, continuing a trend over the past several years. Overall capital spending, however, is down.
Capital Spending and O&M Expenses
9
Spending per Customer Spending per Asset
Distribution Financials Pg 3, 5Source: DF5, DF20, DF70, ST5
Most companies spend more on capital than O&M, although this year there are a few where that is reversed, and the overall totals for the group are closer.
Mean $216.52
Quartile 1 $180.99
Quartile 2: $215.70
Quartile 3: $230.53
Mean 7.929 %
Quartile 1 6.061 %
Quartile 2: 7.720 %
Quartile 3: 9.254 %
Distribution O&M Spending Trend
O&M costs have shown a slight increase over the past several years, with 2012 as the only year in which the average spending level went down.
10Source: DF20, DF70, ST5
Distribution Line O&M Spending
11
Inspection and Maintenance is the largest category of O&M cost, but vegetation management and service restoration are close.
O&M Expenses
12
Expenses per Customer Percentage of Expenses per Asset
Distribution Financials Pg 12, 14Source: DF20, DF70, ST5
The majority of companies spend between $50-$120 per customer, or roughly 2-5% per asset.
Mean $89.07Quartile 1 $67.90Quartile 2: $86.74Quartile 3: $115.43
Mean 3.34 %Quartile 1 2.38 %Quartile 2: 3.01 %Quartile 3: 3.75 %
O&M Expenses (Activity-Based)
13
Expenses per Asset Expenses per Asset, Excluding Vegetation
Distribution Financials Pg 35, 36Source: DF60, DF70,
Vegetation management, maintenance, and service restoration are the largest sources of expenses.
Mean 3.54 %Quartile 1 2.22 %Quartile 2: 2.80 %Quartile 3: 4.61 %
Mean 2.82 %Quartile 1 1.68 %Quartile 2: 2.00 %Quartile 3: 3.70 %
Vegetation Management Expense per “Unit”
14Distribution Financials Pg 16-19
Source: DF60, SA35
Expense per Tree Trimmed Expense per Structure Mile Trimmed
Expense per Tree Mile Managed Expense per Tree Managed
There is little consistency in the cost metrics used within the industry, and costs vary substantially between companies.
Mean $115.11
Quartile 1 $80.71
Quartile 2: $90.89
Quartile 3: $141.45
Mean $8,572
Quartile 1 $4,389
Quartile 2: $6,080
Quartile 3: $9,162
Mean $14.40
Quartile 1 $12.55
Quartile 2: $15.50
Quartile 3: $16.81
Mean $2,038.56
Quartile 1 $1,262.43
Quartile 2: $1,526.32
Quartile 3: $2,639.09
Distribution Line Capital Spending
15
Total capital investment was flat, or slightly increasing from the depths of the recession until 2013, when it dropped for most of the panel.
Source: DF5, DF70, ST5
Distribution Line Capital Spending
16
Capital to sustain the existing system exceeds the investment for growth and new business.
Source: DF50, DF70
Capital Spending (Activity-Based)
17
Spending per Asset Spending per Asset, Less Serve New
Distribution Financials Pg 25, 26Source: DF50, DF70,
Capital spending is higher than O&M, even with the new business removed. Meter & transformer purchases were substantial for a few companies
Mean 5.93 %Quartile 1 6.22 %Quartile 2: 5.18 %Quartile 3: 4.56 %
Mean 4.75 %Quartile 1 5.51 %Quartile 2: 3.83 %Quartile 3: 3.04 %
Replacement Capital Spending
Except at the lowest quartile, capital replacement investment has increased steadily for several years, despite the 2013 decline in total capital investment.
18
Spending Category
2010YEQ2
2011YEQ2
2012YEQ2
2013YEQ2
Total Capital Spending 4.56% 4.82% 4.33% 5.18%
Less Serve New 1.14% 1.34% 0.81% 1.84%
Subtotal Cap Add & Sustain 3.42% 3.48% 3.52% 3.84%
Less Capacity Adds 0.73% 0.97 0.51% 0.51%
Subtotal: Sustain 2.69% 2.51% 3.01% 3.14%
Median Values
Replacement Capital
19
New vs. Replacement Spending per Customer Spending per Asset, Less Serve New
Distribution Financials Pg 23, Source: DF50, DF70, ST5
Mean 4.0%
Quartile 1 5.1%
Quartile 2 3.5%
Quartile 3 2.9%
New business investment still hasn’t recovered since the recession. Capital investment for sustaining the system has grown over the past several years.
Mean $152.24Quartile 1 $159.78Quartile 2: $144.72Quartile 3: $126.59
2013 results – need to update
Mean 4.75 %
Quartile 1: 5.51 %
Quartile 2: 3.83 %
Quartile 3: 3.04 %
Capital Spending
20
Spending per Customer Spending per Asset
Distribution Financials Pg 7, 9Source: DF5, DF70, ST5
Most organizations invest $75-$150 on capital projects per customer, which translates to between 3-6% per asset.
Mean $127.45Quartile 1 $148.71Quartile 2: $131.85Quartile 3: $95.98
Mean 4.59 %Quartile 1 5.70 %Quartile 2: 4.57 %Quartile 3: 3.37 %
21
Storm Restoration
Restoration Spending per Interrupted Customer
The cost to restore customers during storms is not well understood as yet.
For most companies, costs are incurred for both capital and O&M.
For catastrophic storms, costs are captured in different accounts.
Develop Network Strategy
Develop and Approve Asset Plans
Project/Portfolio Management
A Process Model for Managing the Network
23
Expand Network
Operate Network
Sustain Network
Add New Customers
Respond to Emergencies
The Modules we have prepared for discussion fall within the 3 identified processes: Asset Management, New Business, and Construction & Work Management/Scheduling.
25
Scope - Distribution ASSET MANAGEMENT
2014 QuestionsRole• Role of the AM organization in decision-making• Key responsibilities of Asset ManagersRisks• What keeps you up at night worrying about your
system?• New inspection programs added this year• Replacement programs underway• Classes of equipment that are becoming
problematicRegulatory Drivers• Regulatory drivers for inspection and
maintenancePredictive Tools• Use of specialized Asset Management software
tools • Use of condition-based maintenance techniquesPole and Cable Management• Pole inspection cycle• Pole reinforcement & treatment approaches
used• Cable Injection uses for life extension
Situation
• Capital investment has continued to climb since 2009, with the focus on replacement/ refurbishment, since new business hasn’t recovered
• O&M spending levels have also increased over the past 3 years
• Demands for system reliability are the highest they have ever been
Complication
• New business fluctuates substantially with the local and national economy.
• Continued increases in both capital and O&M budgets creates significant pressure to raise rates
• Electric systems are aging, and decisions to defer maintenance or replacement create future challenges
Question
• How can asset managers effectively balance risks versus investments?
• What is the best means of prioritizing capital investment?
Answer
• Effective use of analytic tools to evaluate failure risks
• Structured capital budgeting process to evaluate and prioritize projects
• Appropriate authority to oversee asset plans and their execution through operating groups
1QC Industry Perspective:Distribution Asset Management
26
Consistent long-term asset strategy, goals
Effective forecasting of new business and other system growth requirements
Failure / aging analysis for major equipment (poles, cable, transformers) to predict replacement requirements and manage risks
Organization structure that fosters cooperation between planning, engineering, project management, and construction
Ongoing monitoring of system performance, compliance with requirements
Close oversight of budgets and investment plans
27
Key Success Factors:Asset Management
28
Asset Management Roles
The primary roles are to develop strategy, optimize the use of assets, and manage risks.
Distribution Pg 19Source: DP60
Key Responsibilities of Asset Management Group
29Distribution Pg 20
Source: DP65
Asset management groups responsibilities focus on asset planning, investment prioritization, and system performance
Category Co. Responses
Asset Planning and Life-Cycle Analytics
38
31
21
33
1) Capital asset planning, 2) Improving maintenance strategy for assets, 3) Information distribution for assetsStrategy group provides asset life cycle analytics, data management, and investment prioritization including risk mitigation for T&D system operational assets. The program services group facilitates programs for replacement and maintenance of distribution and transmission facilities. Vegetation management provides cycle and as - need tree trimming services.Asset level directed maintenance strategy, performance monitoring, failure analysis/tracking, development and management of data analytics, establishment of targeted goals and KPI's, failure modes and effects analysis, life - cycle cost/benefit analysis.AM keys roles are Asset Life, Reliability, Capacity and Compliance
Investment Prioritization
31
24
30
Strategy group provides asset life cycle analytics, data management, and investment prioritization including risk mitigation for T&D system operational assets. The key responsibility for asset management is the governance of investments to achieve measurable improvements in reliability.Management of Capital Budget portfolio prioritization process
Failure Analysis/ Reliability Management
21
24
33
Performance monitoring, failure analysis/tracking, establishment of targeted goals and KPI's, failure modes and effects analysisThe key responsibility for asset management is the governance of investments to achieve measurable improvements in reliability.AM keys roles are Asset Life, Reliability, Capacity and Compliance
30
Key Responsibilities of Asset Management Group (continued)
Category Co. Responses
Maintenance Strategy
21
38
Asset level directed maintenance strategy, performance monitoring, failure analysis/tracking, development and management of data analytics, establishment of targeted goals and KPI's, failure modes and effects analysis, life - cycle cost/benefit analysis.Capital asset planning, Improving maintenance strategy for assets, Information distribution for assets
Asset Data Management
31
38
Strategy group provides asset life cycle analytics, data management, and investment prioritization including risk mitigation for T&D system operational assets. Capital asset planning, Improving maintenance strategy for assets, Information distribution for assets
Work Planning & Execution
3732
Responsible to manage the work and execute the financial planWork plans, lineman labor requirements (to determine if contracting will be needed)
Labor Resource Planning
32 Work plans, lineman labor requirements (to determine if contracting will be needed)
Compliance 33 AM keys roles are Asset Life, Reliability, Capacity and Compliance
Additional responsibilities for Asset Management groups involve maintenance strategy, asset information tracking, and work and labor resource planning.
31
Concerns About the System
Distribution Pg 21Source: DP70
Primary concerns about electric systems involve age & deterioration of the assets, and assuring adequate funds to sustain the system.
32
Replacement Programs Underway
Distribution Pg 22Source: DP75
While different companies have different replacement programs in place, most have a focus on wood poles and UG cable, and some interest in transformer replacement and worst circuit programs
33
Problematic Equipment
Distribution Pg 23Source: DP80
There is less consistency in response regarding what equipment is becoming problematic. While cable and wood poles are still most mentioned, evidently the replacement programs are working to some degree.
34
Specialized Asset Management Software Tools
8 of 10 companies indicated they either have or are considering special-purpose Asset Management software.
Distribution Practices Pg 26Source: DP95
35
Regulatory Drivers
Category Co. Responses
Reliability Performance
303337
Mandated reliability performance thresholds and asset inspectionReliability and safetyContact voltage, multiple device interruptions, distribution line clearance
Public Safety 283337
We are required to conduct annual safety patrols of all distribution assetsReliability and safetyContact voltage, multiple device interruptions, distribution line clearance
Maintenance Programs & Activities
21
24
30
Performing follow - up repairs on a portion of circuits being inspected as part of our ReliabiliTree efforts.Inspection of poles, posts, and towers or other structures for replacement or repair in order to ensure safe, adequate and proper service.Mandated reliability performance thresholds and asset inspection
Grid Hardening
31 Grid Hardening Program submitted to the PUC.
NESC Compliance
32 NESC section 12 item 121.
Regulatory Drivers for Asset Management groups include meeting targets for reliability, public safety, and specific maintenance activities.
36
Pole Inspection and Treatment
Mean 13Quartile 1 10Quartile 2:
10
Quartile 3:
12
The majority of utilities are on a 10-year cycle for pole inspection
Years Between Inspections
Of the 9 companies responding, all 9 capitalize pole reinforcement and bracing, while only one capitalizes pole treatment.
Distribution Practices Pg 27, 28Source: DP100, DP105
37
Cable Treatment for Life Extension
Of the 11 companies responding, 5 capitalize cable life extension activities/technologies, while 6 do not.
Companies Reasoning
Use cable injection
22, 23, 28, 38 Use for direct buried cable
Do Not use cable injection
21, 24, 30, 31, 32, 33, 34,
Most cables in conduit, not effective for EPR cable
System configuration and type of cable drive decisions on cable treatment. A majority of the respondents do not use cable injection regularly.
Distribution Practices Pg 29Source: DP100, DP110
39
New Business Process – Scope of Questions in 2014
Timeliness• Scheduling jobs to make sure the customer is ready• Timing requirements for installing:
• Service Only• Service plus Pole• Service plus Line Extensions
Process• Definition for New Business (Service) Process• New business customer satisfaction measure defined• Percent of new business work contracted• Activities for URD installations performed by
developers/customers: Residential va. Commercial• Customer contributions required• Initiatives undertaken to improve the new business
process
New Business Scenarios• People at Jobsite for each Trip by scenario• Work done & material installed by utility vs.
customers/developer by scenario• Capital Spending: Net of Customer Contributions by
scenario
Situation
• New Business is still down for most companies, although starting to pick up for a few.
• Technology (including mobile) tools for design and for work management have improved in recent years
Complication
• Significant economic changes have a large effect on capital requirements, particularly for new business.
• Demands for responsiveness continue to grow
• Large amounts of the work are conducted by developers or contractors, making utility control more difficult
Question
• How can companies successfully deliver new service responsively for customers?
• What is the best means of assuring accurate designs that are constructed correctly by field forces?
Answer
• A focused new business process, supported by the appropriate organization for the service territory
• The right design tools and mobile technology for work assignment and management
• Standards for design and construction that are both updated and followed.
1QC Industry Perspective:Distribution New Business
40
A well-designed, consistent process for the major steps of adding new customers, supported by the appropriate organization
Updated and appropriate design and construction standards
Work management approach and tools (including mobile data) to support the ongoing work, and manage the various required resources
Good communications between the customer-facing staff and the design / construction staff
Flexible workforce, including contractors, to allow modifications for fluctuations in new business demand
Good relationships with developers, and understandable procedures for them to work with
41
Key Success Factors:Distribution New Business
New Business Improvement Initiatives
42New Business Pg 4
Source: DP330
Several companies have major initiatives in the new business arena. Others are focused on more targeted process changes or consistency across the company.
Category Co. Responses
Major Multi-faceted Improvement Initiative
28
24
34
Transformation project that is segmenting the customer management accountabilities. This includes the creation of roles, process and technology to support the project schedule of all customer work.There are several new business process improvements underway. They include documentation of every process within the new business process in its current state and identification of future state opportunities. Examples include service upgrades, temporary service, refunding agreements, meter set process, demolition process, assignment of work, etc.'Cycle time reduction: releasing material prior to site ready for short term construction jobs. Creation of a Call Center dedicated to Planning & Design New Business Customers to initiate requests. A number of initiatives are under way to improve areas of communication, cycle time, and cost.'
Ongoing Process Improvements
30
27
We continue using design process improvement teams to review all processes and determining key players to completeMobile Technology, replacement of our WMS, individual process updates
Implementing Consistent Processes
33
29
Developed a capital business process that is utilized across different parts of our service territory with the goal of consistency.Perform audits on a As Need basis to ensure processes are being worked as written. Maintained updated work processes
New Business Improvement Initiatives (Cont.)
43
Distribution Pg 44Source: DP120
Category Co. Responses
Improved customer communications and interactions
21
31
22
Personal contacts to let the customer know the status changes on a job, from when the order goes out for a temporary or service install to when we are scheduling the job to send crews out to work the job.1.Field condition rating is incorporated in a job priority report. The rating is 1 - 5 and rates progress of customer construction to assist in job scheduling. 2. Customer call back - if receive a call before 5pm designer required to call back customer that day. After 5pm designer required to contact customer by 11am following day.Use of email for requests
No major changes recently
32 No recent changes
Improved customer communications is the focus for several companies.
New Business Pg 4Source: DP330
44
Organization Structure for New Business
Category Co. Responses
Centralized for large jobs (e.g. subdivisions) and local for small jobs
293231
30
37
23
Centralized design for large developers; local design for smaller jobsSpecialized staking engineers for larger jobs. Small jobs done by regional staking engineer.Distribution Project Management is responsible for large projects over five poles. Service Center is responsible for small projectsCentral design does larger jobs and other work is determined by letter of understanding with the Bargaining UnitUpfront engineering and design is done by new business focused groups. Construction work is generally done by certain groups with customer orientation but can be done by any construction groupIn general, local design personnel provide turn-key design/project management for Serve New projects below 500 KW and small customer requested service projects. For Serve New projects greater than 500 KW, New Construction Managers provide project management and lead a team that may consist of Major Design, planning, ROW, work management and construction coordination personnel. Serve Existing Project Managers design their own projects and provide similar leadership for large relocaton or system improvement projects. Major Design is organized into three groups; Serve New (customer services related projects and includes a Central Design Group that specializes in Mulit-Family and Residential developments) , Serve Existing (roadway relocations and system improvement work) and Network (Vaults and duct structures, primarily in the larger downtown areas of our service territory).
Fully Centralized
28 Customer Connect is the single point of accountability for the customer, coordinating their requests through the construction & connection lifecycle from a centralized operating model.
6 companies have centralized design for large projects, with decentralized delivery. 6 others have fully decentralized new business operations.
Source: DP335
45
Organization for New Business (cont.)
Category Co. Responses
Decentralized – all new business in local areas
27
40
33
21
22
34
The service territory is broken up into areas. These areas are staffed with a designer and one or more field technicians. Designers handle all new business three phase and subdivision development, and three phase service inspection. Field technicians handle all civil inspection, single phase line extensions, and single phase service work. System integrity work is also handled by the area staff, single phase by field technicians, and three phase by designers. System Reinforcement projects are handled by a dedicated SR designer. Public Improvement projects are handled by a team of two designers and one field technician. All our workforce is centrally staffed at our operations headquarters.All design regardless of size or type is divided between 5 different geographic areas of service territoryThere is a construction mgr located in each of our large divisions who oversees a capital business process for their area.One designer takes care of every job in their territory. Each designer will talk to every customer on every facet of the job, except the services that get City Inspected and are sent out by the Clerks.Receipt of customer/contractor requests, account administration, design, estimating, planning, scheduling are contained within the New Business are regional-based, to provide close customer support. Gas New Business and Residential development work have one organization for entire territory.Services Centers are Regional. New business designed by service planners are assigned to areas within the region. Services are issued by office field coordinators assigned to areas within the region.'
Structured by Customer Type
24 The new business process is organized based on field operations and customer order fulfillment departments. Within field operations, there is new construction overhead and underground. Within customer order fulfillment, there are office and field associates broken into three segments, residential, commercial and large customers
Source: DP335
46
Timing Requirements for Installations
Half of the companies deliver basic services within 5 days. Adding poles or line extensions can add up to 60 days
Company Service Only Service Plus Pole Service Plus Line Extension30 3 days 3 days 3 days40 3 days 6 weeks 8 weeks31 3 - 5 BUSINESS DAYS Timing based on customer readiness Timing based on customer readiness
21 Service Delivery Standards = 5 Days
Service Delivery Standards = 24 Days + Customer Responsibility days used + Permit Days for pole install
Service Delivery Standards = 8 to? Days depending on nature of job, Customer Responsibility days used, Permit Days required, etc.
27 5 days 60 days 120 days
29 5 working days after all customer obligations are met
5 working days after all customer obligations are met
5 working days after all customer obligations are met
22 generally within 2 weeks of underwriter's certificate 5 - 6 weeks
8 - 12 depending on scope of work required
34 10 business days or lessAs negotiated with customer - rule of thumb 6 weeks for Overhead, 4 weeks for Underground
As negotiated with customer - rule of thumb 6 weeks for Overhead, 4 weeks for Underground
28 On or Before 10 days from customer ready, permits in
20 days from customer ready, paid, permits in Varies based on scope of work.
33Electric from the time customer signs up - overhead 2 - 3 weeks, underground 4 - 5 weeks. Underground requires a crew
4 - 5 weeks both overhead and underground requires a crew 4 - 5 weeks
24 21 Days
23 Customer to provide clear path for service.Customer to provide clear path for service and clearance pole on his property.
Customer to provide clear path for service and poles on his property.
32 Connected in the order received. Connected in the order received. Connected in the order received.
New Business Pg 5-7Source: DP340
47
Activities Performed By Developers/Customers
Developers/customers are expected to do substantial amounts of the work for residential new business for UG, and much less of the work for OH services
21 22 23 24 27 28 29 30 31 32 33 34 37 40 %Meter socket ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ 79%UG trenching ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ 79%UG conduit ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ 71%ROW clearance ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ 57%Transformer pads ♦ ♦ ♦ ♦ ♦ ♦ ♦ 50%Concrete pads ♦ ♦ ♦ ♦ ♦ ♦ 43%UG substructures ♦ ♦ ♦ ♦ ♦ 36%Structures for future expansion
♦ ♦
♦ 21%
Secondary conductors ♦ ♦ 14%UG wire installation ♦ ♦ 14%UG connection ♦ 7%Engineering Design ♦ 7%OH service ♦ 7%
New Business Pg 8-9Source: DP345
48
Contracting of New Business
Mean 22 %Quartile 1 0 %Quartile 2: 4 %Quartile 3: 44 %
New Business Pg 18Source: DP350
% of New Business Work Contracted
New business contracting varies by company. Utilities with higher growth rates tend to use more contractors, with company 40 as the notable exception.
Scenario ATTRIBUTES
49
Meter Service Transformer Primary Run Pole
#1 100A240/120V
75’OH Existing OH NA Existing
#2 200A240/120V
100’UG Existing OH NA New
#3 200A240/120V
50’UG New Padmount
200’ UG Existing
#4 200 kW120/208V
75’UG New Padmount
200’ 3-phase UG
New Riser Pole
Source: DP345b
Scenarios: Schematics
50
75’OH Service line Scenario #1; new OH service drop
100’ UG Service line
75’ UG Service line 100’ UG primary
Scenario 2; new pole, transformer & UG service line
Scenario 3; new UG primary run; padmount transformer & UG service line
50’ 3 phase UG Service line 200’ UG primary
Scenario 4; new riser pole, UG primary run; padmount transformer & UG service line
100A240/120V
200A240/120V
200A240/120V
200 kW120/208V
Existing
Existing
New
New
Meter
Meter
Meter
Meter
51
Staffing Approach for each Scenario
Companies use quite different staffing approaches for new business
New Business Pg 14-17Source: DP355b
52
Costs for New Services
Mean $388Quartile 1 $293Quartile 2: $395Quartile 3: $480
Mean $5,026Quartile 1 $3,813Quartile 2: $4,542Quartile 3: $5,285
Mean $5,105Quartile 1 $4,598Quartile 2: $5,289Quartile 3: $5,669
Mean $17,939Quartile 1 $14,255Quartile 2: $18,212Quartile 3: $19,707
•Costs vary substantially by scenario, and by company.
•Some is due to customer contributions, while some is due to operating efficiencies.
•Labor costs increase with each scenario, while transformers become ever-larger parts of the costs.
Scenario 1
Scenario 2 Scenario 4
Scenario 3
New Business Pg 27-30Source: DP350b
53
Scenario 2 – Installed by Utility
Co. Cable Pole Transformer Meter
21 4/0 ATP w Sc 80 PVC riser 40 25KVA Meter & base
22 Secondary, no primary
24 2/0 wire 35/4 25KVA Meter
27 4/0 UG conductor, 2-10’ sections of steel riser
45’ steel S3 25KVA
30 From xformer to meter Yes Yes
31 From xformer to weatherhead
Yes Yes Set meter
33 URD triplex, 2 in. conduit 40/5 15KVA
34 45/5, 96” crossarm
25KVA
Policies for new service are relatively consistent across companies for poles and transformers. Cable specifications vary.
New Business Pg 21Source: DP345b
54
Scenario 2 – Installed by Customer/Developer
Co. Cable Riser Meter
21 200 amp service w ground, wiring & conduit to the bottom side of meter base.
Meter base provided by utility, installed by customer
27 Trench, 2.5 inch conduit First 10’ section of steel pole riser
Meter base
30 Conduit to new pole for secondaries
Meter and service mast
31 UG secondary in conduit Riser & weather head
Meter can inspected by city
33 200 A bus type meter base
34 Customer pays $4.00 per foot for service to meter
Customers are generally expected to install conduit and meter base, while utilities install the cable and meter.
New Business Pg 22Source: DP345b
56
Scope - Construction & Work Management/Scheduling
2014 QuestionsConstruction Practices• Most important initiative to improve productivity of construction • Measuring crew productivityMobile Data• Experience with implementing mobile data systems for field crews Construction Methods• Successes in eliminating restrictive work practicesScheduling Practices• Process for scheduling and assigning crews on a weekly/daily basis • People at Jobsite by activity
Situation
• Utilities are working to effectively utilize field workforces to execute construction and refurbishment activities.
• Replacement spending exceeded new business spending in 2013
• Work management tools are full-featured and highly functional
Complication
• Resource management is complex because of lean workforces and use of contractors.
• Skills for scheduling and tracking work reside with analysts, who must coordinate with field supervisors to execute the work.
Question
• How can distribution operators meet the needs for efficient field work in the face of multiple constraints ?
• Can the process be streamlined to meet the needs of the business?
Answer
• Structuring the organization and assignments to have Schedulers schedule and Supervisors supervise.
• Coordinating work to most efficiently integrate new construction with refurbishment activities
1QC Industry Perspective:Construction Work Management/Scheduling
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A well-designed, consistent process for the major steps in executing construction work, so they can be effectively planned
Appropriate resource management tools to assure availability of the necessary resources
Defined roles and responsibilities for field supervisors and work management/scheduling analysts
Work management approach and software tools to support the ongoing work, and manage the various required resources
Effective estimating tools so jobs can be planned accurately
Flexibiiity in the workforce and work rules to enable productive use of the available workers
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Key Success Factors:Construction Work Management/Scheduling
MOST IMPORTANT INITIATIVE UNDERWAY TO IMPROVE PRODUCTIVITY OF DISTRIBUTION CONSTRUCTION
59Distribution Pg 46
Source: DP170
Category Responses
Competitive Contracting
31 Contract construction is performed on a competive unit based compensation.
Graphic work design software
2833
Graphic work design toolDeveloping new engineering design software.
Mobile Data For Crews
37 Mobile Data Terminal system and the Distribution Automation system
Improved Crew Routing/Scheduling
24
27
Design accuracy and crew efficiency; Increase productive time through more efficient crew routing and use of available resourcesIncrease productive time through more efficient crew routing and resource scheduling.
Work Management Software
38 MSOC and Scheduling; Management Systems and Operating Controls (MSOC) is the development, implementation, and consistent application of standardized processes, practices, procedures, metrics, and measurement tools to enhance operational performance, employee skills, environmental stewardship and safety, and communication with management and customers.
Coordinate Design and Construction
21
30
Pre design, final design and pre - construction meetings. Safety and removing bad practices and habits from actual construction.Design accuracy and crew efficiency are measured through STORMS with variance reporting done by both designers and management to improve on lessons learned
Improved coordination between design and construction and improved design processes were mentioned several times
MEASURING CREW PRODUCTIVITY
60Distribution Pg 46
Source: DP170
Category Responses
31 We have standards set annd crews are compared against the standard
Estimated vs actual
21 Comparison of actual man -hours to estimated manhours Contractor effective rate.
23 Crew utilization, number of jobs completed, actual vs. estimated time and cost, and safety.
24 Comparison of actual man hours to estimated manhours; ability to work safely28 estimated vs. actual hours for work completion30 Man - hours are set in STORMS for each task. Estimated hours to actual hours are
compared when the jobs are closed37 Cost pers faults, poles, cables. Actual vs Estimated hours for capital work
Worked hours vs paid hrs
38 Productivity is the product of our crew efficiency and our crew utilization that is also the number of hours worked divided by the total earned hours.
Don’t Track 33 We do not measure and track crew productivity currently.
Most popular by far is Estimated vs Actual
Thank you for your Input and Participation!
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