The Next Generation of Public Power Leaders

Lanie Mycoff Mycoff, Fry & Prouse LLC

Presentation to TPPA July 24, 2018

The Next Generation of Public Power Leaders X Where are leaders going to come from? X Who else wants this same leadership talent?

X How do we bridge the gap in supply and

demand? X How do we attract, select, and grow future

leaders?

The Supply Side of the Equation

X Baby Boomers = 78 million and declining

X Generation X = 50 Million

X Millennials = Over 80 million

By 2025, 75% of the global workforce will be Millennials

The Supply Side of the Equation

X Strong Economy X Aging population X Exodus of workers

= Severe Labor Shortage

The Demand Side

Who were consumers of talent in 1978?

X Public Power Entities X Rural Cooperatives X Investor-Owned Utilities X Consultants X Vendors

Today’s Demand for Utility Leaders

X Public Power Entities X Rural Cooperatives X Investor-Owned Utilities X Consultants/Vendors X Commercial/Industrial End-Use Customers X Private Equity Players X IPP’s X ISO’s/RTO’s X Reliability Organizations

How Do We Bridge the Gap?

Public Power is Losing the Compensation Battle Western and Northwestern Utilities (2018)

Public Power Utilities by Governance

Rural Cooperatives

Position City Council; City Manager

Board Board IOU’s

CEO $170,000 $263,000 $242,000

Line Crew Foreman

$98,000 $98,000 $99,000 $99,000

Journey Lineperson

$88,000 $91,000 $91,000 $90,000

How Do We Bridge the Gap?

Public Power is Losing the Compensation Battle Southeastern Utilities (2015)

Type of Utility Governance Average GM/CEO Compensation

Rural Distribution Coop

Board of Directors $377,000

Municipally-Owned Utility

Board of Directors $265,000

Municipally-Owned Utility

City Manager/City Council

$179,000

How Some States/Cities are Enticing Workers

X Hamilton, Ohio - $5K to help pay student loans.

X Grant County, Indiana - $5K toward buying a home.

X North Platte, Nebraska- $10K to entice people to relocate for a job.

X Marne, Iowa – free parcels of land.

X Vermont – cash grants/free land.

How Some Utilities are Bridging the Talent Gap

X Aggregating additional services under joint-action-agencies. X Missouri River Energy Services and Oklahoma Municipal

Power Agency – Line Personnel

X ElectriCities of North Carolina – manages four member systems

X LADWP – One of the largest public power utilities in the country can’t hire enough permanent talent!

Attracting Future Leaders

X Pay is a recruiting tool, but a poor retention tool for millennials. X Job hopping = 30% pay increase

X Promote public power’s alignment with many of

these millennial values. X 6 out of 10 millennials chose their current job because

of a sense of societal purpose X Ethical behavior and a commitment to diversity X Inclusion X Co-workers = Happiness X Flexible work arrangements

X Public Power needs more flexibility in the hiring

process/criteria.

Selecting Future Leaders

Self Awareness

Strategic Thinking The ability to see things as a whole, identify key issues, and draw together effective plans that are in-line with

an organization's vision and objectives within a particular economic situation.

Selecting Future Leaders

Leadership

Does he/she inherently inspire and motivate?

Selecting Future Leaders

Selecting/Developing Future Leaders

X Communication Skills

X Interpersonal Skills

X Cultural fit

Trustworthiness

Cultural Fit

Selecting/Developing Future Leaders

Leadership

Operational

Experience

Management

Financial

Acumen

Expertise

Developing Future Leaders

X Leading Strategy X Understanding of Power Supply X Serving as the “face” of the utility in external

forums X Knowledge of/involvement in legislative and

regulatory affairs X Finance and budgeting activities X Substantial managerial responsibilities X Working with a Board or governing body

The Next Generation of Public Power Leaders

Questions?