Public Power Magazine - July/August 2016

AMERICAN PUBLIC POWER ASSOCIATION • VOLUME 74/NO. 4

PUBLIC POWER

Charging Ahead

Plugging Into Commercial & Industrial Customers | page 8

Electric Vehicles: Driving Lessons | page 18

The Future of Wholesale Markets | page 28

2 Public Power /July-August 2016

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INQUIRIES

July-August 2016 CONTENTS#PublicPower @PublicPowerorg

Search for American Public Power and connect with us

FEATURES

Cover illustration by Raul Arias

8 Supporting Your Community’s FoundationProviding enhanced service for commercial and industrial customers benefits a utility’s business and builds a better public power community.

18 Driving LessonsElectric vehicle charging infrastructure allows utilities to monitor energy use, change customer behavior and have the best impact on the grid.

26 Infographic: So You Want to Drive an Electric Vehicle?

Be the energy advisor: Five things your customers need to know before they purchase an electric vehicle.

28 Electricity Markets of the FutureThe American Public Power Association is working to ensure that public power customers are protected in today’s organized wholesale electricity markets.

31 Infographic: 7 Signs of Effective Wholesale Markets

While organized wholesale power markets vary in the U.S., there are some basic guiding principles that make any market more effective.

COLUMNS4 Public Power Lines by Sue Kelly

34 Washington Report

35 Innovation

36 Public Power Forward

38 Going Public

39 Security

40 Last Word

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Public Power (ISSN 0033-3654) is published six times a year by the American Public Power Association, 2451 Crystal Drive, Suite 1000, Arlington, VA 22202-4804. © 2016, American Public Power Association. Opinions expressed in articles are not policies of the association. Periodical postage paid in Arlington, Va., and additional mailing offices.

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@CEOPublicPower • blog.PublicPower.org

To the casual observer, it may seem that people in today’s world are increasingly isolated — more engaged with their smartphones than with each other. But we’re actually riding a growing back to the community wave. Many of today’s communities are virtual — we have Facebook friends, LinkedIn connections, WhatsApp chat groups, neighborhood listservs, fantasy sports leagues, and even online book clubs. People unite around common causes and common interests.

But we’re also seeing a trend back toward physical communities — in towns and even big cities across America. People care about what happens in their communities. It’s all about making connections, about buying and eating local, about shared stewardship of the environment. It feels like it’s back to the future — with a 21st-century twist.

We in public power can be a vital part of these 21st-century communities. Together, public power utilities serve one in seven Americans. We need to recognize and double down on our strength. Our strength is that we are organized at the community level. Our strength lies in the power of community — in our ability to work together to accomplish what we cannot do alone. Public power IS community power.

The challenges and changes are coming at us from all sides. You’ll read about some of them in this magazine — electricity markets, electric vehicles, customer service, new technologies, and raising awareness of public power.

Plugging Into the Power of CommunityBy Sue Kelly • President & CEO, American Public Power Association

P U B L I C P O W E R L I N E S

We have our work cut out for us as we take on these and other changes. But we have an advantage. We already have the community connection that large, for-profit utilities are spending big advertising and consulting bucks to get. We don’t just provide electricity and send the bills from remote corporate headquarters. And we don’t put the interests of shareholders ahead of our customers. We live and work with our customers. We see them at the supermarket. We see them at church. Our mission is to serve them. Many public power utilities show this by sponsoring programs that go way beyond providing electricity — farmer’s markets, movie nights, and bike share programs, just to name a few.

Peter Fox-Penner says in his book Smart Power that distributed generation and smart grids will favor community-scale resources located closer to load. He thinks public power utilities, owned by their communities, are facing a unique, back-to-the-future moment. He is right, and we need to seize the moment.

We need to get ahead of our retail customers and offer them the services they will want. Because they will soon expect of us what they now expect of Amazon, Uber or Google Maps — instant access and seamless service, along with expert guidance on the available options. We owe it to them to provide this level of service — after all, they own us.

Let’s work together to become the trusted energy service providers in our communities.

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BUSINESS & FINANCIAL CONFERENCESept. 18 –21, San Antonio, TexasA refresher for seasoned professionals and in-depth learning for those new to utility business and administration. Five key tracks – Accounting and Finance, Customer Accounting and Services, Human Resources and Training, Information Technology, and Pricing and Market Analysis.

FALL EDUCATION INSTITUTEOct. 3 –7, Seattle, WashingtonIn-depth training courses for all skill levels. Focus on a single topic or spend the week in multiple classes for comprehensive training and networking with peers. Courses in accounting, cost of service and rate design, distributed generation, key accounts, 2017 NESC, and underground distribution systems.

PUBLIC POWER LEADERSHIP WORKSHOPOct. 5 –7, Seattle, WashingtonOverview of challenges facing public power and the skills and knowledge leaders need to guide utilities through change. Ideal for seasoned, new, and aspiring general managers and CEOs. Learn where the industry is heading and how your peers are handling tough issues such as planning for strategic resources, ensuring a utility’s financial health and performance, managing change, and developing effective leadership styles for the future.

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LEGAL & REGULATORY CONFERENCEOct. 16 –19, Long Beach, CaliforniaDive into legal and regulatory issues affecting the electric utility industry and the practical legal issues facing public power. The premier event for attorneys, regulatory and compliance managers, and policymakers to network and keep up on hot topics affecting municipal utilities.

CUSTOMER CONNECTIONS CONFERENCENov. 6 –9, Nashville, TennesseeConnect with more than 300 public utility professionals to address challenges, find new opportunities, learn about industry trends, and better position your utility and community to succeed. An essential educational and networking event for those involved in: Customer Service, Energy Services, Key Accounts, and Public Communications.

WEBINARS• Benchmark Your Compensation and Counter the Competition / Aug. 9

• Strategic Planning for Utility Boards and City Councils / Aug. 11

• Line Extension Policies (Contributions in Aid of Construction) / Aug. 18

• Building Workforce Diversity and Inclusion / Aug. 31

• Performance Monitoring and Accountability for Boards / Sept. 8

• Performing a Utility Financial Checkup / Sept. 28

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Supporting Your Community’s

FOUNDATION Commercial & Industrial Customers

Food processors, cold storage facilities, hospitals, prisons, universities — these are your anchoring customer accounts. Treating them well not only benefits your business, it builds a better public power community. By Fallon Forbush, Contributing Writer



Long gone are the days when electric utilities could provide power, send the bill, and forget it. Customers expect a lot more from their power provider, and one of the most demanding segments is also the most crucial: commercial and industrial customers.

Big customers are vital to a utility’s bottom line, and they often also function as the very crux of a community’s economy. By providing electricity to these players, a public power utility’s role within a community becomes that much more integral to the people it serves.

Understanding the utility’s essential role as the lifeblood of a community’s economy is key to undertaking the amount of attention and resources needed to attract, support and keep these foundational customers.

Local control, local ratesUtilities often offer discounts on electricity rates to reel in these big customers — something that can be easier for locally owned public power utilities to put in place.

“Public power has a lot more latitude with economic development rates than do investor-owned [utilities] because city councils and municipal heads can work to make it happen without regulation,” said John Wolfram, founder and principal of Catalyst Consulting.

Economic development rates typically have a time limit and decelerate throughout the duration of implementation. Soundly designed rates, Wolfram said, should also include standard thresholds for qualification


that aren’t completely discretionary to the utility. These criteria can include requirements for eligible customers to provide jobs or capital investment, as well as meet a threshold of electricity demand.

“You have to be big enough to earn it,” Wolfram said. Providing the dis-count must be necessary in order to attract the customer, he said. “It’s a sit-uation where, ‘I’ll go to some other site if you don’t give me this discount.’”

Wide open spacesPublic power utilities also have another advantage for attracting big customers — rural areas are ideal for large industrial operations.

“Quite often, heavier industrial operations tend to be located in more

rural locations and on the outskirts of major metropolitan cities,” said Woody Hydrick, senior principal of Global Location Strategies. “We’re reg-ularly looking at more rural utilities.”

Hydrick’s site selection firm primarily helps industrial customers deploy new capacity. As industrial customers look to make investments in an op-eration, his firm helps them understand all of the various issues involved in making that investment, including logistics.

“Industrial customers tend to be pretty big power users, particularly if they are involved in batch manufacturing processes where they are operat-ing 24/7,” Hydrick said. “Their demand for power is a constant. They need access to not only affordable power, but also reliable power.”

Photo courtesy of Samsung Austin Semiconductor


For utilities looking to attract big customers with anchor loads, it may take years of planning, especially if a utility does not own its own genera-tion. In the case of utilities that purchase their generation from wholesale power suppliers, discussions with suppliers about the capability to add more capacity and what that additional capacity looks like should happen sooner rather than later, Hydrick said.

Community competitorsThough energy costs and availability are recognized as significant drivers by firms in the site selection process, they can be outweighed by other economic factors — cost and availability of skilled labor, state and local

incentives, tax exemptions, and accessibility to highways and airports, Wolfram said. Site selection can be a contest between competing cities, states, utilities, and other service providers that go beyond electricity rates.

This is where public power utilities can use their established connections as community-owned entities as an advantage. Close relationships with local government leaders and strong relationships with state and local economic development groups, elected officials, and business leaders are crucial to success.

If a community can come together quickly and efficiently, a new site for a large customer can be up and running faster — an imperative, Wolfram said, especially on long-lead items like zoning and right of ways. Plans like


these, when put in place ahead of time, can go a long way in securing new commercial and industrial customers who may fear the timeline risk asso-ciated with new sites, Hydrick said.

“They don’t want risk to their production timeline, their construction timeline, and sometimes they’re trying to capture a market window where they’re trying to be up and in production before anybody else,” Hydrick said. “Any delays or hesitation in that plan can scuttle the entire investment.”

Community-owned utilities that offer long-term, stable rates can sweet-en a deal and make their community more attractive than others.

“What they’re really looking for is long-term contracting and long-term price stability,” Hydrick said. “If they can enter into a contract of 10 years

or more for power at a fixed rate for the entire duration, they and their investors know what their built-in sunk costs are and can forecast their overall profitability.”

Demanding cleanDiverse energy mixes will also be vital as more and more brands are shying away from coal-fired generation and opting for clean energy. Fort Collins Utilities in Colorado is meeting its commercial customers’ demand for clean energy by making it more affordable to install solar energy. Solar capacity in the city has doubled thanks to the utility’s effort and resulted in one of the largest solar facilities in the utility’s service area with Intel.

Photos courtesy of GAR Labs


What Big Customers Want Austin Energy secures Samsung with heightened sensitivity to power quality

The city of Austin, Texas, has a strong presence of semiconductor manufacturers — companies like IBM and Samsung. Semiconductor manufacturers are unique power users that have high loads and are extremely power-quality sensitive. Austin Energy works to make relationships with its key account customers based on open and honest communication, with a heightened sensitivity to both reliability and power quality.

In the 1990s, as semiconductor manufacturing began to ramp up, power quality came to the forefront. Around the same time, Austin Energy launched its key accounts program. Austin Energy used its quarterly Power Improvement Action Committee meetings as a forum to communicate with its customers sensitive to power quality.

“Voltage sags can knock tools offline and cause losses of production,” said Kerri Davis, manager of commercial and key accounts at Austin Energy. “If we have an outage, to this customer, it’s catastrophic.”

The committee meets quarterly to share best practices, review details of the most recent voltage sags, and discuss upcoming utility construction or maintenance projects. This provides Austin Energy’s most critical customers with ample opportunity to understand the required work in and around the substations that feed their respective facilities. The customers and the utility often coordinate equipment clearances together to minimize risk.

“This started out as the customers holding Austin Energy accountable,” Davis said. “Over the years, it has really grown to a partnership. We admit if we have a human error or make a mistake. There is very honest and open communication in this forum and with our customers.”

Meetings often include guest speakers on topics ranging from emerging technologies to EPA federal regulations. The utility also offers continuing education hours for various certifications for those who attend.

The committee is chaired by Bruce Honnol, electrical engineering manager with Samsung Austin Semiconductor, Austin Energy’s largest customer with a peak demand of well over 100 megawatts and a load factor in the high 90s. Honnol has chaired the committee for eight years.

“I appreciate Austin Energy’s proactive communication,” he said. “We have an open dialogue about anything impacting Samsung’s reliability or power quality.”

Samsung encouraged Austin Energy to become the first utility in the country to become International Organization for Standardization 9001 certified, Davis said. This certification is a quality management standard that is based on a number of principles, including a strong customer focus, the motivation and implication of top management, and the value of continual improvement.

Fort Collins Utilities’ $1 million Solar Power Purchase Program gave commercial customers fixed 20-year power purchase agreements for net-metered solar generation. The utility launched the program in 2014 and got 14 commercial participants.

Participants produced about 2,500 megawatt-hours of solar power in 2015, and their savings amounted to just over $400,000. The program is expected to double both figures for the remainder of the agreements, since all projects were brought online by the end of 2015.

For one of its major key accounts, Fort Collins needed to ensure that Intel, an industrial customer, was able to not only contribute to its

corporate sustainability goals but also meet the high electricity demand required for its operations. Intel’s Fort Collins Design Center is a hotbed for research and development, complete with an on-site data center.

“Power, and power quality, to them is a very important thing,” said Lu-cas Mouttet, customer accounts manager for the utility.

The Intel solar project has 3,100 solar modules by way of covered park-ing structures that are capable of producing 963 kilowatts. Its annual production is approximately 1,400 megawatt-hours, the equivalent of 100 homes’ annual energy usage.

Where utilities get their energy is becoming more of interest to customers


as brands shy away from traditional fuels and become interested in clean energy options. Energy efficiency programs are also a way to demonstrate to commercial and industrial customers that they will be saving money by investing in operating in a utility’s territory.Partnering for success

Best Practices for Critical Customers Think outside of the box for customized customer service for critical customers

“We have to be competitive,” said Wallace Barron, president of Barron & Associates Corporate Solutions, LLC. As an instructor for the American Public Power Association’s Key Accounts Certificate Program, he said utilities can be competitive by being easy to do business with and by upping their game on customer engagement.

“Every customer service person should have a big, old easy button on their desk,” he said. “And they should constantly be thinking, ‘How can I be easier to do business with?’”

It requires nontraditional thinking and being proactive in coming up with solutions that work for both the utility and the customer, he said.

The partnership between the utility and commercial and industrial customers should not be constrained to issues of power quality and price, but instead be centered on helping them in any way possible. As part of a public power utility with close ties to the municipal government, key accounts representatives can serve as conduits to other city services.

“We can bring a wide variety of services to the party that other utilities are struggling with because they have to deal with other entities to bring those services,” Barron said. “Key account representatives with out-of-the-box thinking can take ownership of a situation no matter what the problem and get it resolved within the city.”

This approach to customer service can be accomplished only if pubic power utilities avoid the tendency to treat their customer monolithically, said Steve VanderMeer, senior vice president of planning and marketing for Hometown Connections, APPA’s utility services subsidiary.

VanderMeer, author of APPA’s new manual, “Customer Service: Building a Strong Infrastructure for Your Utility”, said this outdated way of thinking can be overcome by taking the time to understand the difference between your customers.

“Oftentimes, the only distinction between customers is their size of service,” he said. “With key customers, there’s really no excuse not to understand their individual needs and how they use power from you, and to take an individualized approach for each customer.”

He encourages getting out and meeting key customers one-on-one as well as touring their facilities in order to cultivate a relationship. Maintaining frequent communication is mandatory.

“I would hope that every key account person has their cellphone number on the business card,” he said. “As a key account person, you really don’t have the luxury of working strictly nine to five.”

Striking a balance of being available and not being a constant annoyance is a skill. “You want to be close enough that they feel comfortable to pick up the phone to call you when they need to,” he said.

Bottom line, utilities need to know their commercial and industrial customers’ businesses and be prepared to respond with creative solutions in order to make them more successful.

The next Key Accounts Certificate Program will be offered in October in Seattle at APPA’s Fall Education Institute. Learn more at PublicPower.org under Events>Education Institutes.

In California, Riverside Public Utilities and investor-owned utility Southern California Gas Company combined forces to bring attractive programs to their shared customers in a one-stop shop format.

Working together, they created distinct programs that aim to help their shared customers look at new ways to cut energy and operating costs.


For their commercial and industrial customers, a Key Account Energy Efficiency Program provided RPU’s top 200 industrial customers with a comprehensive site assessment, a custom multiyear energy savings plan, technical assistance through the project bidding phase, and rebates and special financing for energy efficiency upgrades.

The program helped drive five of its key accounts to complete comprehensive energy conservation projects that resulted in 5,555 kilowatt-hours of savings in one year.

“Using the utility’s ability to supply customers with economic development or conservation tools ultimately makes Riverside a better place to live and do business,” said Mark Cloud, an account manager at RPU.

Last year, RPU also began a peak-load-shaving pilot project with Ice Energy, a Santa Barbara-based company that manufactures thermal energy storage units called Ice Bears. These special units convert existing HVAC equipment into thermal energy storage generators that store energy in the form of ice at night, when electric rates are at their lowest, and then release this energy during the day, when energy rates are at their peak, without having to fully deploy the HVAC equipment.

Eight commercial customers and nine of the city’s municipal facilities

are participating in the pilot. So far, 15 Ice Bear units have been deployed, with the goal of having 36 deployed by the end of summer. The innovative program has replaced 300 tons of old, inefficient HVAC and is on track to achieve 1 megawatt of peak-load reduction by the end of summer.

The pilot was a $1.36 million investment that has created 32 local jobs, six of which are full time.

While the initial intent of partnering with Ice Energy was to procure its energy resource technology to lessen the impact of HVAC load on Riv-erside’s electric grid and its customers’ bills, RPU was also able to attract the company’s research and development division to locate in Riverside by leveraging its relationship with the local university.

“They were attracted by the potential for research opportunities with UC Riverside,” said Cloud.

Ryan Gleason, account manager with the city of Riverside, works with a small account management team that interacts with hundreds of the electric utility’s highest demand customers, ranging from a diverse plastics industry, food processors, cold storage facilities, and medical facilities, to retailers, universities, and large governmental customers, including a prison.

A lot of what Gleason’s team does with its larger customers is energy

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conservation and rebate programs. These can range from simple lighting retrofits to something as complicated as analyzing their entire operations in order to make recommendations for energy efficiency.

“We act as consultants and facilitators of these projects to shepherd them through the process,” he said. “I tell my customers that I have the easiest sales job in the world. My job is to sell you on buying less of what we’re selling.”

While this may seem counterintuitive for the utility, increasing load efficiently and intelligently as possible rewards the utility in the long term, especially for commercial and industrial customers, whose competitive edge in manufacturing is operating as lean and efficiently as possible.

“If you can help them become more profitable and grow their busi-ness by helping with energy efficiency, the difference [of] them maybe saving 5 percent of their energy usage at their plant, when they’re a really large customer, can add up to a lot of money. If they’ve got those efficiencies in place, then they can expand that business, hire more people, maybe do a plant expansion, and add more lines. The net re-sult is they may become a bigger business and a bigger manufacturer

in our area and actually end up spending more on utilities.” Gleason emphasized the importance of key account representatives

getting out in the community to know their customers’ businesses. This knowledge is essential in order to know what their needs are.

While all the businesses Gleason deals with are different, he can often learn about ways the utility could play a bigger role in their business with regular engagement. This can be as simple as seeing what’s going on in their industry and listening to what their needs are.

The city of Riverside encourages this interaction with quarterly key accounts meetings with timely and relevant topics, including updates on infrastructure, the functioning of the utility, and upgrade projects.

Gleason tries to touch each of his key accounts out in the field at least several times a year. “It can be challenging because things pop up and we’re a small group and we don’t have the manpower necessarily, but it’s defi-nitely a top priority. You need to be out there cultivating the relationship.”

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Driving Lessons

Charging Ahead in the Electric Vehicle Race

Public power utilities are making bold investments in electric vehicle charging infrastructure to monitor electricity use, change customer behavior, and have the best impact on the grid.


Charging Ahead in the Electric Vehicle Race

Public power utilities are making bold investments in electric vehicle charging infrastructure to monitor electricity use, change customer behavior, and have the best impact on the grid.

By Laura D’Alessandro • Integrated Media Editor, APPA


with a false start in the mid-1990s that made some wonder if their return was nothing but another flash in the pan. But public power utilities that are investing in electric vehicle charging infrastructure know they’re now here to stay. No one is killing the electric car this time around.

Experts predict a major shift in adoption on the horizon as the cars themselves become more affordable and reliable, the Tesla’s Model 3 chief among them. The utility industry’s increased interest and involvement is a bellwether, too. With the widespread adoption of EVs comes some worry for grid operators — if customers plug in when they arrive home from work in the early evening, the grid could be burdened with more load during peak times. Utilities taking a hands-on approach now will make for a more reliable grid.

This is why public power utilities are not only installing charging infrastructure, but also investing in programs that create frameworks to measure the load from EV charging in their service territories, and incentivize customers to charge when it’s cheaper for them and easier on the grid.

Electric vehicles have a troubled past,

Read on for case studies of public power and investor-owned utility investments in EV charging infrastructure.


When Austin Energy in Texas first started installing electric vehicle charging infrastructure, the utility decided to own and operate the 113 stations it deployed through a $2 million U.S. Department of Energy grant. But its business model has shifted to one of collaboration with the community.

Property owners can work with Austin Energy to deploy chargers at their own sites. The utility provides incentives and monitors and maintains the charging stations. The utility also provides the subscription for EV drivers to use the chargers — unlimited access for $4.17 per month.

EVs in Austin are coming in greater and more diverse quantities, said Cameron Freberg, utility strategist. “Austin Energy, as a leader in the electric power industry, has been promoting transformation electrification initiatives since 2008.” Supporting EVs also goes hand in hand with the city’s climate goals while supporting potential load growth for the utility.

Austin conducted a pilot study to show that plug-in EV charging can be centrally managed within a demand-response platform to improve grid reliability. The pilot integrated thermostats and residen-tial smart chargers. Austin is also piloting a residential EV time-of-use rate that gives customers more choices and greater convenience.

Utility: Austin EnergyCustomers: 448,000Charging stations installed: 250+Timeline: 2011–presentSpeed bumps: Education was the biggest hurdle for Austin Energy, as it usually is when adopting any new technology. To overcome the challenge, the utility has been aggressive with its marketing and outreach. A campaign called Charge Forth included print, radio, digital marketing, testimonials and community outreach events.

Driving lessons: Education and outreach are key contributors for a utility to successfully implement an EV program. Austin’s consistent interaction with key stakeholders, auto dealers and property managers was beneficial to its program.

Gaining speed: EV owners in Austin have convenient and accessible charging available to them at retail, workplace and multifamily properties. And thanks to Austin’s innovative model, the price for public charging is very low.

Charging ahead: As electric vehicle ownership grows, Austin sees the opportunity to continue to support its customers. The utility’s next big push will focus on DC fast-charging while continuing to deploy charging stations on multifamily properties where more than 40 percent of the city’s popula-tion lives.

A community approachin Austin


For Burbank Water and Power in Burbank, California, the electric vehicle charging proposal was an easy one: it was another way to enhance customer service.

Burbank surveys its customers periodically, and the feedback regarding EV charging stations has been positive. The surveys also help the utility improve its service offerings, including the charging stations.

“One of the biggest issues is charger availability and parking enforcement,” said Kapil Kulkarni, electric vehicle program manager at the utility. “As a result, we developed the curbside program, where enforcement can be done more effectively by the city than by a private party for a parking lot.”

Curbside charging hit some challenges and required outreach to the community. Kulkarni said more outreach about electric vehicles and a utility’s programs will help everyone as the technology advances.

Utility: Burbank Water and PowerCustomers: 49,000Infrastructure investment: $680,000Charging stations installed: 28Timeline: 11 charging stations were installed in 2011, 16 were installed in 2015, 1 has been installed in 2016, and an additional 6 are planned for installation through the yearSpeed bumps: Funding can be a big hurdle — chargers are expensive, and the labor and installation can cost even more. Burbank was able to secure more than $300,000 in federal, state and local grant funding. Outreach was also a challenge as the utility expanded its infrastructure to curbside chargers. But outreach shows the benefits of the projects to the entire city.

Driving lessons: Electric vehicle infrastructure requires careful planning and coordination. Planning ensures the chargers will get used. Coordination ensures everything runs smoothly when other city departments, such as public works and the police, are involved.

Gaining speed: Burbank Water and Power gained a new load source by installing electric vehicle charging infrastructure. The utility also uses its EV activity to generate credits through California’s Low Carbon Fuel Standard program, which the utility can then use to expand its charging network.

Charging ahead: Burbank is studying the effectiveness of curbside chargers versus parking lot chargers to continue to expand the public charging network. The utility also plans to promote its residential and business rebate programs to ensure customers can charge cost-effectively at home and at work.

Expandingcustomer optionsin Burbank


Aneasysell in ClarkCounty

Clark Public Utilities in Vancouver, Washington, found that getting support for its electric vehicle charging infrastructure investment was easier than anticipated. The utility director presented the idea to the county’s commission and general manager — both wanted to be proactive in implement-ing sustainable solutions for their community.

The utility has had electric vehicles in its fleet for about three years, and its employees were already making the transition. As a service provider, the utility found it made sense to add charging stations to support its community.

A third-party vendor, Blink, supports and maintains the chargers, but all the installation work was performed by utility line crews. The utility’s investment covered one fast charger, transformers, wiring, metering and labor, while Blink provided four additional L2 chargers free. The utility owns all the charging infrastructure, while Blink maintains and operates it.

Utility: Clark Public UtilitiesCustomers: 292,000Infrastructure investment: $30,000Charging stations installed: 5Timeline: Completed August 2015Speed bumps: Finding a partner to buy and maintain EV systems can be critical if that’s the busi-ness model. There are many EV system providers to choose from, but finding a partner willing to invest time and support can be hard.

Driving lessons: In researching this project, many peers looked at EVs as a trend that would soon pass. Now those same peers are asking Clark Utilities for advice on how to invest in charging sta-tions of their own, and the utility has an experience to share.

Gaining speed: The Clark Utilities service territory has EV owners who have come to depend on the stations it installed and who let the utility know when they encounter challenges charging. The chargers support workplace charging, and customers have access anytime, day or night.

Charging ahead: Clark PUD wants to create a partnership with its customers and local businesses to share the experience of installing EV structure and to provide guidance.


Testing the chargein Fayetteville

The Fayetteville Public Works Commission in Fayetteville, North Carolina, installed four public EV charging stations in 2015. After exploring the idea, grant funding made it feasible for the utility to move forward, but it also created challenges.

To utilize the more than $35,000 from the North Carolina Clean Energy Technology Center, the utility had to follow rules regarding the charging station locations.

Customers are able to use the PWC’s charging stations for free. And usage is growing every month.

Utility: Fayetteville Public Works CommissionCustomers: 80,000Infrastructure investment: $43,849Charging stations installed: 4Timeline: Completed December 2015Speed bumps: Finding charging station locations that met grant requirements took longer than expected. Coupled with the legal requirements of each site partner, the utility encountered delays.

Driving lessons: For future projects, the PWC knows to allow more time for negotiating legal requirements and the logistics associated with installing the stations.

Gaining speed: While usage has been light, the charging stations are seeing increased use each month. The PWC is able to provide the service to its customers for free.

Charging ahead: To determine future steps, Fayetteville plans to continue to monitor usage and expenses while it considers the overall benefits of installing the charging stations.


Full-scale deployment at KansasCityPower&Light

Kansas City Power & Light in Missouri has been called bold for its initiative to bring electric vehicle charging infrastructure to its customers in 47 counties throughout northwest Missouri and eastern Kansas. By the end of 2016, the utility will have installed 1,000 charging stations that it owns, oper-ates and maintains within its service territory. “EVs are here to stay,” said Chuck Caisley, vice president of marketing and public affairs for KCP&L, an investor-owned utility. “However, the industry can advance only if there are adequate charging stations throughout the country, similar to what we now have for gasoline-powered vehicles.”

KCP&L is located in the second-largest automobile manufacturing region in the U.S., Caisley said, making the service territory ideal to support the automobile industry’s future. But the utility stands to benefit, too, he said.

“KCP&L will get hard data on adoption, standards, customer experience and grid impacts, all of which can be used to inform state law and regulatory policy, proactively, rather than waiting until EV adoption increases and utilities and regulators have to react.”

Utility: Kansas City Power & LightCustomers: 835,000Infrastructure investment: $20 millionCharging stations installed: 600 to dateTimeline: Ongoing, full deployment expected in 2016Speed bumps: The three- to four-month lead time for regulatory and permitting requirements was substantially longer than KCP&L had anticipated. The utility collaborated with cities in its service territories to establish a process that will benefit the community as more charging stations are deployed.

Driving lessons: Host contract negotiations take time. The average negotiation period for one contract was more than 100 days. This resulted in much longer timelines before installation could begin.

Gaining speed: EV charging stations increase electricity sales, reduce emissions in the region, attract jobs through station deployment, and provide data to help the utility improve customer programs such as new time-of-use rates.

Customer response: KCP&L customers and EV drivers in the region have given the utility kudos for its investment in charging infrastructure. A Tesla owner in Overland Park, Kansas, told the utility that range used to be a problem, but with all the chargers popping up around the region, it isn’t anymore.

Charging ahead: KCP&L plans to continue to complete deployment of its Clean Charge Network and then use the information from the network to collaborate with stakeholders to develop policies and programs for the developing market.

DRIVE AN

5 Things to Know

Before You Go Electric

e

e

e

SO YOU WANT TO

Driving an EV can cost 70 percent less

in fuel charges than a gas-powered vehicle. Electricity costs on average between 3 and 25 cents per kilowatt-hour, often in the low range in public power towns. The national average for gasoline is about $2.30 per gallon. Electric vehicle owners are also eligible for federal and state tax credits. Electric cars are also more effi cient — up to 80 percent of the charge is transferred directly to powering the car, compared to 14 to 26 percent with gas-powered vehicles.

The majority of electric vehicle owners charge their cars at home overnight, when electricity

prices are lower. But with more than 30,000 alternative fueling stations in the U.S., more people are charging away from home, too. Your electric

vehicle comes with everything you need to plug in and fuel up.

TOP 5 ELECTRIC VEHICLES OF 20151. Ford Focus

2. Chevy Volt

3. Porsche Cayenne

4. Nissan Leaf

5. Tesla Model S

STILL HAVE QUESTIONS? Your public power utility is your

trusted energy advisor. Ask us if we

offer special rates or programs for

electric vehicle owners and when

the best time is to charge.

The average American’s daily commute is less than 30 miles, and most electric vehicles have a

range of more than 70 miles. It’s a reliable way to get from point A to point B. With growing electric vehicle charging infra-

structure, you can also charge along the way. Plug-in

hybrids, like the Toyota Prius, can also run on battery power or gasoline.

Source: Kelly Blue Book

Sources: U.S. Department of Energy, PlugShare, Electrifi cation Coalition, Plug In America, AAA

The average electric vehicle needs 30 kilowatt-hours for a 100-mile charge. At an average electricity rate of 12 cents per kilowatt-hour,

it can cost about $540 per year to charge your car, compared to an average of $2,000 to fuel a gas-powered car. Charging dur-ing peak times could hike your electricity bill, so ask your utility what the best time is to charge.

Many public power utilities have helped build electric vehicle charging infrastruc-ture in their towns. Need to fi nd a plug? Visit PlugShare.com or AFDC.energy.gov for interactive maps.

WHY GO ELECTRIC?

HOW DO I CHARGE IT?

WILL THIS CHANGE MY ELECTRIC BILL?

CAN I GET WHERE I NEED TO GO?

WHERE CAN I CHARGE ON THE GO?


DRIVE AN

5 Things to Know

Before You Go Electric

e

e

e

SO YOU WANT TO

Driving an EV can cost 70 percent less

in fuel charges than a gas-powered vehicle. Electricity costs on average between 3 and 25 cents per kilowatt-hour, often in the low range in public power towns. The national average for gasoline is about $2.30 per gallon. Electric vehicle owners are also eligible for federal and state tax credits. Electric cars are also more effi cient — up to 80 percent of the charge is transferred directly to powering the car, compared to 14 to 26 percent with gas-powered vehicles.

The majority of electric vehicle owners charge their cars at home overnight, when electricity

prices are lower. But with more than 30,000 alternative fueling stations in the U.S., more people are charging away from home, too. Your electric

vehicle comes with everything you need to plug in and fuel up.

TOP 5 ELECTRIC VEHICLES OF 20151. Ford Focus

2. Chevy Volt

3. Porsche Cayenne

4. Nissan Leaf

5. Tesla Model S

STILL HAVE QUESTIONS? Your public power utility is your

trusted energy advisor. Ask us if we

offer special rates or programs for

electric vehicle owners and when

the best time is to charge.

The average American’s daily commute is less than 30 miles, and most electric vehicles have a

range of more than 70 miles. It’s a reliable way to get from point A to point B. With growing electric vehicle charging infra-

structure, you can also charge along the way. Plug-in

hybrids, like the Toyota Prius, can also run on battery power or gasoline.

Source: Kelly Blue Book

Sources: U.S. Department of Energy, PlugShare, Electrifi cation Coalition, Plug In America, AAA

The average electric vehicle needs 30 kilowatt-hours for a 100-mile charge. At an average electricity rate of 12 cents per kilowatt-hour,

it can cost about $540 per year to charge your car, compared to an average of $2,000 to fuel a gas-powered car. Charging dur-ing peak times could hike your electricity bill, so ask your utility what the best time is to charge.

Many public power utilities have helped build electric vehicle charging infrastruc-ture in their towns. Need to fi nd a plug? Visit PlugShare.com or AFDC.energy.gov for interactive maps.

WHY GO ELECTRIC?

HOW DO I CHARGE IT?

WILL THIS CHANGE MY ELECTRIC BILL?

CAN I GET WHERE I NEED TO GO?

WHERE CAN I CHARGE ON THE GO?




Electricity Markets of the Future

Making It Work for Public Power

The American Public Power Association is working to make sure customers are protected in today’s organized wholesale electricity markets as the

energy industry transitions into a new age.By Elisa Wood, Contributing Writer


Is there a way to put consumers front and center in today’s organized wholesale mar-kets? That’s a key aim for the American Public Power Association as it focuses on reforming market operations in the East and shaping emerging rules in the West.

“We think of it in terms of respecting the public power business model, so that our members have the ability to acquire the re-sources they need to serve their customers,” said Joe Nipper, APPA’s senior vice president, Regulatory Affairs and Communications.

Public power utilities often experience the discomfort of being square pegs forced into round holes, especially when organized mar-kets become increasingly complex operations, as they have in the Eastern states. Under-standing how this came to be requires a look into the past.

Nearly two decades ago, federal regulators first authorized the creation of grid operators, known as regional transmission organizations and independent system operators. Originally, these non government entities were meant to ensure that investor-owned utilities grant independent power producers open access to transmission wires.

The value of the original intention is clear, Nipper said. “Operation and planning of the transmission system is a positive.” But the system’s original intention barely remains.

With the restructuring of electricity markets, the divestiture of utility assets, and the onset of retail electric competition, the regional transmission organiza tions and independent system operators extended their reach. In Eastern states, they no longer govern just transmission, but coordinate complex real-time energy and capacity transactions with the aim of ensuring reliable supply and minimizing costs.

THE CAPACITY MARKET MIGRAINEEnergy markets usually involve no more than meets the eye — the sale and purchase of power through a central exchange — with the goals of creating market liquidity, dispatching power efficiently, and balancing power in wide geographic areas, which are all positives. But mandatory capacity markets, particularly for public power utilities, are another story.

A capacity market is a bit more abstract in purpose. It’s a mechanism to pay power plants to ensure they are at-the-ready should the need for them arise in the future.

Getting capacity markets to work right has been an elusive process, said Mike Kirkwood, general manager of the Pascoag Utility District, a Rhode Island quasi-municipal utility within the ISO New England footprint.

“They keep tweaking the rules. We have not had one auction with the same set of rules since the forward capacity market started [in 2010],” Kirkwood said. “They call it a market. We don’t see it as a market; we see it as an administrative construct that keeps evolving to try to solve problems.”

The process has been so tedious that the mantra became “the market will provide, and that’s not happening,” said Brian Forshaw, chief regulatory and risk officer at the Connecticut Mu-nicipal Electric Energy Cooperative. He said that the original mandate to use markets to better serve consumers has somehow transformed into “protect the ‘competitive markets’ no matter the impact on electric consumers.”

In a recent brief, the cooperative said that, since 2012, Connecticut retail electric rates have been 62 percent higher than the national average and 67 percent higher than the Southeast region. CMEEC estimates at least 55–60 percent of these retail charges originate from the inde-pendent system operator markets.

In short, Kirkwood, Forshaw and others in public power worry that the voice of the consumer becomes lost in pursuit of “ideal” market structures that aren’t necessarily so ideal.

Given these problems, APPA is looking for the way forward with concrete changes that public power utilities can promote to put the customer at the fore.

FOCUSING ON WHAT WORKSAPPA sees some promise for reform in the East and a good start in the West as stakeholders work on expanding California’s market. And it’s important to focus on not just what needs to be fixed, but also what works, said Elise Caplan, APPA’s manager of electric markets analysis.

For example, the PJM Interconnection offers a detailed annual market monitor report that helps foster a transparent market. In the Southwest Power Pool, board members make decisions by straw poll, so it’s readily apparent how they think, creating a strong level of accountability, Caplan said.

Nonorganized markets also offer lessons to be followed when reforming wholesale markets. She pointed to the effectiveness of bilateral contracts and utility resource ownership in vertically integrated states where utilities still own generation.

In keeping with this idea, Kirkwood advocates for market rules in New England that allow public power utilities to once again self-supply.

Public power utilities in the region can already do this — at least in theory. Unlike investor-owned utilities, public power utilities did not participate in retail access and were not required to sell off their generation when retail competition began in New England and other states. They


Organized wholesale power

markets in the United States

vary in their approaches.

But there are some basic

guiding principles that make

any market more effective.

Here are seven positive steps

stakeholders can encourage

in fixing skewed markets or

forming new ones.

Respect the public poweR business modelPublic power utilities stay close to the customer and community, and try to put in place policies that serve their local needs — whether it’s more emphasis on renewable energy, low rates, or both. Centralized markets should allow this relationship to flourish.

Respect the Role of state and local goveRnmentsStates — and increasingly cities and towns — often have clear ideas about the kind of electricity they want to produce and use. Wholesale markets should accommodate state and local resource plans.

avoid centRalization and be flexibleThis may mean making markets voluntary, allowing for ease of exit and entry, and permitting self-supply. Public power utilities need flexibility to craft a market portfolio that best suits their customers. This could mean bilateral contracts or building their own power plants.

cReate tRanspaRencyMake pricing, transactions, and information on who’s buying and selling power easily accessible. Present the data in a way that makes for easy understanding of trends. This will help prevent abuses, market manipulation and dominance by any one resource.

make goveRnance faiR and openBe sure all stakeholders have a seat at the table. Spend time seeking out customer representatives. Otherwise, only well-financed and market-savvy players, driven by the profit motive, will find their way to the table.

diveRsify the supplyMarkets tend to favor lowest cost short-term generation to the point that one resource can come to dominate. As a result, a region can become too dependent on a certain fuel, such as natural gas, and then suffer price spikes and reliability problems if a supply shortage occurs. (Witnessed in New England during the Polar Vortex.)

think consumeRUltimately, markets are supposed to serve consumers. If they are not — if the consumer is seeing electricity rates rise and rise — the market may not be working. Or, in the case of RTO-operated capacity markets, it may not be a true market at all.

7 signs of effective wholesale maRkets


can still build generation plants and contract for power bilaterally — they can buy directly from a seller rather than through the wholesale market. But that’s in theory. In practice, several rules make it near impossible, said both Kirkwood and Forshaw, who recommend revising these rules.

This loosening of restrictions on public power’s self-supply could change New England markets, moving them away from today’s concentrated centralization, Forshaw said. With more customers contracting directly for power, less need would exist for central procurement through ISO New England, he said. Instead, the ISO would become more of a residual market, a place for buyers to turn when bilateral contracts, or their own generators, fall short.

Public power advocates also argue for more consumer representation in government, particularly before the Federal Energy Regulatory Commission, which oversees wholesale power markets and the RTOs. Forshaw recommended that one seat on the commission be designated for a consumer representative. The seat could be filled, he said, by a former state public utility commissioner, or someone else who is accustomed to balancing the needs of consumers against the needs of investor-owned utilities.

MARKET EXPANSION IN THE WESTOut on the West Coast, public power advocates are looking at these and other market features as they craft wholesale markets to suit their regional needs.

Bill Gaines, director and CEO at Tacoma Public Utilities in Washington, has been working with APPA to help develop public power principles as the California ISO looks to create a larger regional market.

“One of the primary goals is to maintain the viability of the vertically integrated public power business model, where the utility retains ownership of the generation assets,” Gaines said.

Another goal is to ensure fair governance. Gaines would like to see an independent board, free of politics, overseeing the expanded ISO.

It’s also important to be sure that the board members have no financial interest in decisions they are making, added Michelle Bertolino, director of Roseville Electric, a community-owned utility in the Sacramento, California, metro area. The members should be “independent of thought,” she said, suppressing their biases for the greater good of the market.

“I think we need to take our time in implementing this. We want to have a very robust stakeholder outreach process,” she said.

Public power represents about 30 percent of the load in the West, so it’s important that it have a strong presence at the table as the new market forms, said APPA’s Caplan. “We want an open process with a lot of input for our members.”

The bottom line for all of the markets, she said, is that they are best as voluntary, less centralized entities that accommodate community and state policy priorities, bilateral contracts, transparency and good governance.

Getting wholesale markets right is important, particularly now, as communities and states pursue clean energy goals and position to get ready for federal emissions reduction mandates under the Clean Power Plan. Success for these programs depends upon market flexibility and the freedom to make the most of local resources.

“The energy world is going through major changes. You want to be thoughtful and careful,” Caplan said.


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Public power had the unique opportunity to weigh in on key energy policy issues at meetings held by the Department of Energy throughout the U.S. in the spring.

More than a dozen public power leaders took full advantage of that opportunity to tell public power’s story — how the industry is proactively addressing the growth of distributed energy resources and the rapidly changing customer expectations in a digital age.

We also used the opportunity to speak up on some of our biggest challenges, such as the shortcomings of wholesale mandatory capacity markets and the importance of keeping nuclear power in the power supply mix.

The regional meetings were tied to the second installment of the DOE’s Quadrennial Energy Review, an integrated study of the U.S. electricity system from generation through end use.

The American Public Power Association’s President and CEO, Sue Kelly, helped kick off the initial meeting in this round of QER sessions. She said that regional transmission organization-operated markets increasingly show that they don’t support the development and maintenance of a lower carbon dioxide-emitting resource portfolio

at a reasonable price. At a regional meeting in Los Angeles in May, Arlen Orchard, CEO and general manager of the Sacramento Municipal Utility District in California, said that public power is comprehensively examining distributed energy. He said his utility is doing so through energy efficiency, and supporting electric vehicles while considering energy storage options.

At San Antonio, Texas-based CPS Energy, the utility has seen “a very large demand for distributed generation resources — rooftop solar, community solar — so there’s clearly a strong, strong demand for that type of product and service,” said Cris Eugster, group executive vice president and chief generation and strategy officer at CPS.

At a late April QER meeting in Salt Lake City, Doug Hunter, CEO and general manager at Utah Associated Municipal Power Systems, explained how communities are best positioned to implement distributed generation, energy efficiency and demand response.

And while all these changes take place at the distribution level, public

Taking Full Advantage of Our Seat at the TableBy Desmarie Waterhouse, Acting Vice President of Government Relations and Counsel, APPA

W A S H I N G T O N R E P O R T

power utilities are seeing changes in their communities and employee teams.

Marcie Edwards, general manager of the Los Angeles Department of Water and Power, mentioned an apprentice program that trains lineworkers to be ready to dive into the job.

“One of the things we have been working on in conjunction with our labor partners is something called utility pre-craft training,” she said. “We migrate them around for up to two years and in the interim teach them how to pass a civil service exam. We’ve been having a lot of good luck with that program, and we’re looking to expand it.”

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And while all these changes take place at the distribution level, public power utilities are seeing changes in their communities and employee teams.


COMMUNICATING THE VALUE

Sue Kelly, president and CEO of the American Public Power Association, recently kicked off the 36th Annual Utility Energy Forum with a keynote presentation that engaged the audience in thinking about how utilities will meet increased customer expectations in a time of transformation. Her presentation fit perfectly with the theme of the conference, “The Transformed Utility: Connecting for Success”, and resonated with the audience.

Our industry is entering a time of great change driven by evolving customer preferences, new technologies, increasing regulation, and utility workforce issues, Kelly emphasized. Those of us in the industry know these changes are coming, or are here already. However, we’re not entirely sure how to deal with the changes yet and need to step up to the plate.

Kelly pointed out that even small communities are interested in new technologies and green energy, as evidenced by the dramatic increase in solar installations nationwide and the popularity of community solar programs. She noted that energy storage and other technologies are not yet commercially viable, but they are coming and utilities need to be prepared. We need to consider what our new business model will look like and what value we will provide to our customers as more products and services are offered by third parties. We may also want to offer some of these new products and services to our customers, either on our own or through partnerships. She talked about APPA’s Public Power Forward strategic initiative to provide tools and resources to member utilities to help them navigate the future.

A common theme running through many of the presentations at the Utility Energy Forum was that utilities should strive to be the “trusted energy advisors” for customers. This is a role of value that utilities can offer customers who are looking to adopt new technologies and are bombarded with offers and promises from third parties. Public power utilities have strong ties to the communities we serve, and we are uniquely positioned to be seen as a trustworthy resource for accurate information about energy technologies. To step into the trusted energy advisor role, we must also become more knowledgeable about new technologies.

APPA’s Demonstration of Energy & Efficiency Developments program is one way member utilities can learn about new technologies and talk with others who have implemented them. Grants up to $125,000 are available to DEED member utilities to work on innovative projects, and there are opportunities to demonstrate and share what is learned with other DEED members through webinars, newsletters, and presentations.

The DEED program not only provides grants for utility projects, but also funds student research projects, provides educational scholarships to undergraduate students considering a career in the energy industry, and funds student internships at utilities. These internships allow utilities to carry out innovative projects while exposing students to a possible career in public power and providing valuable mentorships and work experience.

Keeping Up With New Energy TechnologiesBy Mary Medeiros McEnroe, Public Benefit Program Manager, Silicon Valley Power in Santa Clara, California

I N N O V AT I O N

One great example of this is a DEED-funded electrical engineering internship at Lewis County Public Utility District, where the student was hired into a full-time position at the utility upon graduation. This internship was highlighted at last year’s Utility Energy Forum as a part of a panel on workforce development. As Sue Kelly mentioned in her keynote presentation this year, workforce issues are a challenge for our industry, and we are facing a shortage of employees in key areas. We need to expose students to the possibilities of a career in public power, and a DEED internship is one great way to make this happen.

DEED accepts new grant and scholarship applications in two cycles every year. The next round of grant applications is due August 15 and scholarship applications by October 15. I encourage you to find out more and apply now. If you’re not already a DEED member, you can join now. Visit www.PublicPower.org/DEED for details.

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Market forces

Competition, new players and partners, changing demand profile, more

renewables

Public Power Forward: The American Public

Power Association is helping member utilities

prepare for a new era in electricity and maintain

AFFORDABILITY

COMMUNITY

OWNERSHIP

RELIABILITY

ENVIRONMENTAL

STEWARDSHIP

Deliver

reASSeSS

PlAN

Think about how your business model serves your community’s unique preferences.

Be the trusted energy advisor

Manage a distributed energy supply

Offer options

Align customers’ interests with yours and third parties

Load forecasts, alternative power supply prices, and external policy and market forces will all impact your bottom line.

Align rates with cost of service

Be fair to all customer classes

Allocate risk, aim for stability

Avoid complexity, explore opt-in services

Consider how you are meeting your community’s needs and think about a la carte, opt-in services.

Benchmark supply options

Explore subscription models

Work with third-party suppliers

Integrate distributed resources

IncreasIng regulatIon

Environmental, pricing, markets

new technologIes

Solar, storage, smart thermostats, real-time energy

use data, grid-connected appliances

custoMer preferencesChoice, control,

options

COMMUNiCATe

Stick to the basics when communicating with customers — keep bills from going up and keep the lights on.

Engage through everyday interactions

Explain the impact

Make the most of every interaction

Customers choose when and how they engage

workforceRetiring baby boomers,

entry of millennials, competitive salaries,

diversity

PublicPowerForward

ExpErt

rEsEarch

DemanD response

essentIals: Be sure to take these with you on your journey

Turnkey resources

enhanceD customer service

accEssiblE

EducationSuperior advocacy

DistributeD generation

rIsk ManageMent

Internal strengths & weaknesses, costs & prices,

financial & technical risks, potential

stranded costs


Market forces

Competition, new players and partners, changing demand profile, more

renewables

Public Power Forward: The American Public

Power Association is helping member utilities

prepare for a new era in electricity and maintain

AFFORDABILITY

COMMUNITY

OWNERSHIP

RELIABILITY

ENVIRONMENTAL

STEWARDSHIP

Deliver

reASSeSS

PlAN

Think about how your business model serves your community’s unique preferences.

Be the trusted energy advisor

Manage a distributed energy supply

Offer options

Align customers’ interests with yours and third parties

Load forecasts, alternative power supply prices, and external policy and market forces will all impact your bottom line.

Align rates with cost of service

Be fair to all customer classes

Allocate risk, aim for stability

Avoid complexity, explore opt-in services

Consider how you are meeting your community’s needs and think about a la carte, opt-in services.

Benchmark supply options

Explore subscription models

Work with third-party suppliers

Integrate distributed resources

IncreasIng regulatIon

Environmental, pricing, markets

new technologIes

Solar, storage, smart thermostats, real-time energy

use data, grid-connected appliances

custoMer preferencesChoice, control,

options

COMMUNiCATe

Stick to the basics when communicating with customers — keep bills from going up and keep the lights on.

Engage through everyday interactions

Explain the impact

Make the most of every interaction

Customers choose when and how they engage

workforceRetiring baby boomers,

entry of millennials, competitive salaries,

diversity

PublicPowerForward

ExpErt

rEsEarch

DemanD response

essentIals: Be sure to take these with you on your journey

Turnkey resources

enhanceD customer service

accEssiblE

EducationSuperior advocacy

DistributeD generation

rIsk ManageMent

Internal strengths & weaknesses, costs & prices,

financial & technical risks, potential

stranded costs


WASHINGTON REPORT

For about three years now, there’s been a raging controversy over whether the Washington Redskins should change their name. I am not about to take sides or get into whether the name is indeed offensive to Native Americans. But, what if the NFL’s team name was to change after 79 years? The team was born the Boston Braves in 1932 and became the Washington Redskins in 1937. I asked a few diehard fans, anticipating strong reactions.

To my surprise, the loyal fans did not protest as vehemently as I expected. I heard comments like:

“I wouldn’t like the name to change because it has a lot of history behind it, but it wouldn’t make me less of a fan.”

“I wouldn’t like if they changed it. But I would still be a loyal fan and would love the team the same.”

“It wouldn’t change the way I feel about the team. Fan for life!”

“They’d still be my team, by any name. But I’d always think of them as the Redskins.”

“It would be tough for me to wrap my head around a name change, but I would continue as a fan. The team is bigger than its name.”

“Bigger than its name.” Well said, Toby Sellier, APPA’s director of communications and media relations. And that is really what a brand is. It’s more than a name, logo, colors, or a tagline — which are all your brand’s identifiers. However, the brand itself is the essence of your organization. The brand is the promise you make to customers — and how you deliver on that promise.

When Southwest Airlines promises “Transfarency (low fares, nothing to hide),” it rings true because it defines the airline’s core philosophy. But few other airlines could get away with a similar claim, right?

A brand identity — whether it’s a team name or a tagline — becomes strong only when it’s built on a solid promise and foundation. Edith Bullard, senior VP of marketing and PR at PCI Communications said, “Strong brands build on strong foundations. It’s having clarity around the foundation that creates brands that last — like Coke, FedEX, etc. These brands set a course, and they don’t waver. The brand foundation can

What’s In a Brand?By Meena Dayak, Vice President, Integrated Media and Communications, APPA

G O I N G P U B L I C

certainly be tweaked, but if the hard work has been done, it shouldn’t change significantly.”

You build a strong foundation based on brand differentiators — the unique features and/or benefits of a product or service that set it apart from the competition, Bullard said.

What is the public power brand differentiator? There are probably a few to choose from — affordability, reliability, customer service focus, environmental responsibility… At APPA, we’ve been doing a lot of research on branding and strategic thinking about the national public power brand. Our work has led us to believe that the key differentiator is community. We are in the community, by the community, and for the community (read Sue Kelly’s column on page 4 for more).

Once you identify your brand differentiators, you need to turn them into actions. If being environmentally responsible is your key differentiator, you’d want to invest in energy from renewables and offer energy efficiency programs. If customer care is your brand differentiator, you’d want to offer 24/7 access and multilingual services.

While these and more differentiators may all reflect your utility’s core values, you’d do well to zero in on one key differentiator upon which to build your brand identity. What would that differentiator be? We at APPA would love to hear what you think. And about what you’re doing to build your brand in your community. And about your suggestions for a new name for the Redskins. (OK, just kidding!)

Share your brand story with your public power colleagues across the U.S. on APPA’s public communications listserv at [email protected] help? Email us at [email protected].


Security response and recovery are high priorities for public power utilities. While coordinated physical attacks on utilities are rare, an attack by a disgruntled former employee, ideologically motivated activist, or a criminal stumbling across a “soft target” could inflict significant damage.

Here are some basic steps your utility should follow to ensure physical security.

1. ASSESSTo effectively mitigate the threats posed by attackers, you must understand your organization’s susceptibility to those threats. A threat and vulnerability assessment helps you determine how prepared you are to prevent, detect, and respond to security threats. You must assess your infrastructure sites to identify critical facilities and functions, analyze strengths and weaknesses of the security program, and evaluate crisis preparedness. Regular assessments will help you identify countermeasures to mitigate threats and guide your utility to make rational decisions about the level of protection needed.

2. PLANWhether it’s on the football field, in the boardroom, or during a crisis, having a plan is essential to securing positive outcomes. Like a playbook, a security plan is a carefully considered series of actions to be implemented in a variety of situations.

Be sure to have policies and procedures in place for staff members to report suspicious or criminal activity to your security department. These reporting procedures should be communicated often and as part of your annual training efforts. As the Department of Homeland Security says, “if you see something, say something.”

3. LAYERLayering security defenses at a utility site can reduce the chance of a successful attack. A “security in depth” approach helps you manage risk with diverse defensive strategies, so that if one layer of defense turns out to be inadequate, another layer will hopefully prevent an attack. A well-designed security strategy with a layered approach will reduce incidents of unauthorized access to critical facilities, vandalism to property, and other security-related events.

Five Steps to Physical Security SuccessBy Brian Harrell, Director, Security and Risk Management, Navigant Consulting, Inc.

S E C U R I T Y

4. PRACTICEDon’t rely just on a written plan. As threats evolve and technology changes, exercises are critical to ensuring your security plan is effective in real-world scenarios. Exercises are a cost-effective and objective way to test protective measures; assess resilience and business continuity; and examine prevention, response and recovery mechanisms at your utility. Both discussion-based and operations-based exercises can help.

5. COORDINATEEstablish robust working relationships with law enforcement agencies. They are the first to respond in the event of a criminal act, and can also offer useful information on crime, threats, and impact on the local community. Report any security incidents to local law enforcement and the Electricity Information Sharing and Analysis Center as soon as practical. Report based on the best available information, to promote information sharing on an actionable, need-to-know basis. Notify neighboring utilities of any major security events. Classify and identify incidents most likely to have a detrimental effect on system reliability.

Learn more in APPA’s Physical Security Essentials: A Public Power Primer. This comprehensive guidebook includes security checklists; case studies; and guidance on conducting threat and vulnerability assessments, building a physical security plan, and developing measures to prevent future attacks. Find it at PublicPower.org under Store.


Extreme LeadershipCapt. Mark Kelly

Capt. Mark Kelly has been at the helm of four missions in space and led teams in extreme conditions. What does success come down to? Teamwork and keeping your cool. Kelly spoke at the American Public Power Associa-tion’s National Conference in June. Below is an excerpt from an interview with Public Power Weekly. Read more at PublicPower.org.

If you had to pick one thing that you learned in space that leaders can apply to their daily lives, what would it be?It’s teamwork–by far. Accomplishing difficult goals like these incredibly complex space missions cannot be done by individuals. There is just no way. Building a team that works very well together is so critical in accom-plishing these difficult goals.

There’s a lot that goes into that — it starts with picking the right people, people who work together well. This is a difficult environment to be in, so one of the things we find very important is conflict resolution. You’re living in close quarters, and it’s very stressful.

As a commander of a space shuttle mission, I get some say over who my other crew members are. Finding the right mix of personalities and the right kind of people with the right kind of skills that function better as a team than as individuals, at least from my perspective, is the most important thing.

What is the backbone of a strong team dynamic, regardless of what industry you’re working in?I’d say the backbone is the person in charge — how do they manage this group of people? I, for one, am somebody who wants my people to not be afraid of making mistakes, as long as they’re not critical mistakes that af-fect safety. Having said that, we practice what we’re going to do in space a lot in simulators on the ground, for hundreds, if not thousands, of hours.

LAST WORD

Some space shuttle commanders probably don’t like it when their people make mistakes, even in the simulator — I prefer it.

As you’re training for a mission, making mistakes early is better than making them in space. I look for people who kind of lean forward and don’t mind asking for forgiveness. I’d rather have the person who feels comfort-able asking for forgiveness than the person who feels comfortable asking for permission.

The people who push the envelope and make things happen–I want those people on my team. I think you can build a more effective work envi-ronment when you have people who are willing to take a little bit of a risk.

As Seen On TwitterCheck out what the Twitterverse had to say about Kelly’s speech at National Conference

LMU @Whiskey_City@publicpowerorg @ShuttleCDRKelly incredible and inspiring! Thank you for your service Mark Kelly

Meena Dayak @MeenaDayakBe bold. Be courageous. Be your best. A message from @GabbyGiffords delivered by @ShuttleCDRKelly to #publicpower


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