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25 years
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3.A.1
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Thank you for your years of service,
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Attachment: November Retiree 2013 (2490 : Debbie Belk Retirement Resolution)
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Minutes Acceptance: Minutes of Oct 21, 2013 10:00 AM (Minutes Approval)
Employee Recognition
October Retiree
Kenneth Killingsworth
Engineering Technician – Sr.
29 years
Attachment: Item 3A-C - Hewa_BOD
Minutes
powerpoint
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3.A.1
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Employee Recognition
2013 Beat The Peak campaign
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10
Cross-functional committee
Project Supervisor, Communications
Project Lead, Communications
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Information Technology
Communications
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Information Technology
Top 10 Member Services Agents
Dolores Bustillos-Tracy
1,249 - Oak Hill
Deborah
Harrington
828 - Lampasas
Sharon
Mielke
924 - Oak Hill
James Michael
Covington
739 - Johnson City
Aquilina
Molina
642 - Oak Hill
Maria
Sierra
807 - San Marcos
Belinda
Gibson
622 - Liberty Hill
Vanessa
Inocencio
761 - Lampasas
Jeanette
Baber
602 - Cedar Park
Dawn
Myers
484 - Lake Creek
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Minutes
powerpoint
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Minutes
Recognitions
of Oct 21, 2013
2perpg
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Killingsworth Retirement Resolution)
Kay Jarvis
Ruth Silva
Nathalie Boyd
Daniel Crichlow
David Munoz
Maria Sierra
Jim Wilson
3.A.1
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Employee Recognition
2013 International
Lineman’s Rodeo
International
Lineman’s Rodeo
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Springs, Kansas.
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Minutes
powerpoint
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Recognitions
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2perpg
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Minutes
powerpoint
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3.A.1
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Minutes
powerpoint
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Minutes
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Attachment: MAP Minutes
Policy Update_Veterans_10-21-13
Acceptance: Minutes of Oct
v3 21,
(RES-2013-77
2013 10:00 AM
: Member
(Minutes
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Attachment: MAP Minutes
Policy Update_Veterans_10-21-13
Acceptance: Minutes of Oct
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2013 10:00 AM
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Attachment: MAP Minutes
Policy Update_Veterans_10-21-13
Acceptance: Minutes of Oct
v3 21,
(RES-2013-77
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Attachment: MAP Minutes
Policy Update_Veterans_10-21-13
Acceptance: Minutes of Oct
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(RES-2013-77
2013 10:00 AM
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(Minutes
Assistance
Approval)
Policy Amendment)
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Attachment: MAP PolicyMinutes
Update_Veterans_Complete_10-21-13
Acceptance: Minutes of Oct 21,v3
2013
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10:00 AM (Minutes
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Attachment: MAP PolicyMinutes
Update_Veterans_Complete_10-21-13
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Attachment: MAP PolicyMinutes
Update_Veterans_Complete_10-21-13
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Attachment: MAP PolicyMinutes
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Attachment: Item 7A - PEC-update-presentation
Minutes Acceptance: Minutes
- Hill Country
of Oct 21,
Science
2013 Mill
10:00
2perpgA
AM (Minutes
(RES-2013-79
Approval)
: Hill Country Science Mill)
7.A.1
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A REGIONAL SCIENCE CENTER
Engaging students in the sciences,
engineering & technology, and inspiring
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and careers in these fields.
Construction Schedule
Schedule
Month
Week
Hill Country Science Mill
October
November December
January
February
March
April
May
June
July
August
September
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Demolition
Design & Eng
Budget Reviews
Foundation
Framing
Structural Steel
Windows
Electrical
Plumbing
HVAC
Roofing
Rainwater System
Stone/Plaster
Insulation
Drywall
Cabinets
Trim
Ornamental Steel
Tile
Paint Ext
Paint Int
Floors
Site Improvements
Cleaning & Punch
Begin Exhibit Installation
Packet Pg. 39
32
Attachment: Item 7A - PEC-update-presentation
Minutes Acceptance: Minutes
- Hill Country
of Oct 21,
Science
2013 Mill
10:00
2perpgA
AM (Minutes
(RES-2013-79
Approval)
: Hill Country Science Mill)
7.A.1
4.A
Groundbreaking Ceremony:
December 3, 2013
Exhibit Progress
• 20 interactive exhibits
purchased or currently
under construction
Sourced throughout the U.S. and
the world, including one exhibit
from Sweden and another from
Slovenia/Netherlands
• Serious negotiations
currently underway
for six significant
“named” exhibits
Packet Pg. 40
33
7.A.1
4.A
The LBJ National Historic Park
Highland Lakes Master Naturalists
(covering Blanco, Burnet and Llano counties)
Friends of The Hill Country
Science Mill
Texas A&M AgriLife Extension’s
4H and Youth Development
Program
Texas 4-H is committed to the
advancement of the Hill Country Science
Mill¶s mission by providing our vast
network of county agents, volunteers and
4-H members to assist in:
•Marketing of the Science Mill.
•Partnering for special events.
•Providing a linkage to other subject
matter specialist and researchers.
•Youth and adult volunteer leaders to
assist with events and tours.
•Development of virtual 4-H clubs with
youth of similar interest in science,
engineering, technology, and math.
A REGIONAL SCIENCE CENTER
Engaging students in the sciences,
engineering & technology, and inspiring
them to pursue post-secondary education
and careers in these fields.
Packet Pg. 41
34
Attachment: Item 7A - PEC-update-presentation
Minutes Acceptance: Minutes
- Hill Country
of Oct 21,
Science
2013 Mill
10:00
2perpgA
AM (Minutes
(RES-2013-79
Approval)
: Hill Country Science Mill)
PROGRAMS
Attachment: Item 8A1Minutes
- October
Acceptance:
CEO Report
Minutes
- EleCommPres102113
of Oct 21, 2013 10:00
2perpgA
AM (Minutes
(2513 : Chief
Approval)
Executive Officer Update)
8.A.1.a
4.A
2014 Ballot and Election
Communications Considerations
John D. Hewa, Chief Executive Officer
October 21, 2013
Background 2014 Ballot/Election
• June 2013, the PEC Board passed a resolution addressing singlemember vs. at large voting methodology:
– “place before the members a binding referendum between the current
at-large method of voting and a single-member district method, which
referendum shall be placed before the members for a vote no later
than June 2014
– And before the referendum is placed before the members for a vote,
members will be given an opportunity to compare the pros and cons of
each method and debate those methods in public forums open to all
members;
– And … that the Chief Executive Officer of PEC, or his designees, shall
take measures to develop a communications plan, including the use of
member email, to alert the full membership on the existence of this
referendum and to engage and educate members on the pros and cons
of the two election methods”
Packet Pg. 42
35
Proposed communications objectives
•
•
•
Educate members about the ballot measure regarding single-member voting vs.
at-large voting methodologies
Increase member engagement and voting
Educate members on the cooperative difference of democratic member control
Support the strategic goals of “Engaging members in cooperative programs and
activities” and “Continually enhancing member communication and education
programs.”
Attachment: Item 8A1Minutes
- October
Acceptance:
CEO Report
Minutes
- EleCommPres102113
of Oct 21, 2013 10:00
2perpgA
AM (Minutes
(2513 : Chief
Approval)
Executive Officer Update)
•
8.A.1.a
4.A
Cooperative Messaging Approach
Packet Pg. 43
36
Communications Support Plan
Baseline communication plan includes over 100 different points of communication
“touch points” over an eight-month period that includes multiple media vehicles and
supports four main phases of the election process
Phases
• Communications support Jan. – Aug.
– Nominations: Jan. – April
– Forums: April – May
– Member voting: May – June
– Election results: June – Aug.
Attachment: Item 8A1Minutes
- October
Acceptance:
CEO Report
Minutes
- EleCommPres102113
of Oct 21, 2013 10:00
2perpgA
AM (Minutes
(2513 : Chief
Approval)
Executive Officer Update)
•
8.A.1.a
4.A
Vehicles
•
•
•
•
•
•
•
•
•
•
•
PEC website
Texas Co-op Power
Member forums (in-person)
PEC Quarterly
Email blasts
Social media
Print advertising
Bill inserts
In-office materials
PEC Wired
Employee intranet
Additional engagement opportunities
•
Online
–
–
–
•
Mass media
–
–
•
Online video (overview on voting methodologies)
Discussion board on PEC website
Voting link on Member Portal
Post sample ballot in newspapers
TV advertising (edit Touchstone Energy materials)
Member Services/call center
–
–
On-hold messages can be election/voting related
Promotion by member services agents — new
members get election info
Ballot sample in newspapers
TV advertising
Member portal link
Packet Pg. 44
37
Thank you.
Questions?
Attachment: Item 8A1Minutes
- October
Acceptance:
CEO Report
Minutes
- EleCommPres102113
of Oct 21, 2013 10:00
2perpgA
AM (Minutes
(2513 : Chief
Approval)
Executive Officer Update)
8.A.1.a
4.A
Packet Pg. 45
38
Report on Monthly
Financials
October 2013 Board Meeting
Freddy Wolff, Interim CFO
Revenues – Actual vs Budget
(in millions)
Attachment: Item 8A2 - Financial
Minutes Acceptance:
Slides for CEO
Minutes
Report
of2013-10-21Blue75th
Oct 21, 2013 10:00 AM
2perpgA
(Minutes
(2463
Approval)
: Report on Monthly Financials)
8.A.2.a
4.A
Packet Pg. 46
39
Controllable Expenses
Attachment: Item 8A2 - Financial
Minutes Acceptance:
Slides for CEO
Minutes
Report
of2013-10-21Blue75th
Oct 21, 2013 10:00 AM
2perpgA
(Minutes
(2463
Approval)
: Report on Monthly Financials)
Revenue, Cost of Power, and Cost of
Service – Actual vs Budget
8.A.2.a
4.A
(in millions)
Packet Pg. 47
40
Equity – Percentage of Assets
Attachment: Item 8A2 - Financial
Minutes Acceptance:
Slides for CEO
Minutes
Report
of2013-10-21Blue75th
Oct 21, 2013 10:00 AM
2perpgA
(Minutes
(2463
Approval)
: Report on Monthly Financials)
Net Margins Month-To-Date
Actual vs Budget
8.A.2.a
4.A
Packet Pg. 48
41
8.A.3.a
4.A
Attachment: Item
Minutes
8A3 - Acceptance:
CS October Board
Minutes
Report_2013
of Oct 21, 2013
2perpgA
10:00(2485
AM (Minutes
: OctCEO_BOD
Approval)
Report CS-Safety)
Corporate Services
Monthly Report
Presented By: Amanda Hoefling
Director, Leadership & Employee Development
Employee Development
• Performance Consultants
• Innovative Delivery Options
– E-Learning
– Video
– Job Aides
Packet Pg. 49
42
Sept. 2012
April 2013
Aug. 2013
DOL Program
Approved
AOC
Chartered
TEEX
Training
Dec. 2012
June 2013
Sept. 2013
Lineworker
Assessments
Internal
Training
Journeyworker
Graduation
Attachment: Item
Minutes
8A3 - Acceptance:
CS October Board
Minutes
Report_2013
of Oct 21, 2013
2perpgA
10:00(2485
AM (Minutes
: OctCEO_BOD
Approval)
Report CS-Safety)
Apprenticeship Program
8.A.3.a
4.A
Apprenticeship Program
Packet Pg. 50
43
Questions?
Attachment: Item
Minutes
8A3 - Acceptance:
CS October Board
Minutes
Report_2013
of Oct 21, 2013
2perpgA
10:00(2485
AM (Minutes
: OctCEO_BOD
Approval)
Report CS-Safety)
Leadership Academy
8.A.3.a
4.A
Packet Pg. 51
44
8.A.4.a
4.A
Attachment: Item 8A4 - October
Minutes 2013
Acceptance:
Operations
Minutes
Update
of Oct
- September
21, 2013 10:00
Activity
AM2perpgA
(Minutes(2462
Approval)
: Monthly Operations Report)
Wayne McKee
Operations Report
October 2013
Board Meeting
Operations Report
• SAIDI for the rolling 12 months ending September 30 was
62.4 compared to 61.6 minutes in August
• For September there were 467 forced outages affecting
19,937 members for a SAIDI of 4.9 minutes excluding
planned, transmission and major events
• The increase from 61.6 minutes to 62.4 minutes is due to the
lower SAIDI of 4.1 minutes for September 2012 dropping out
of the rolling 12 month calculation and being replaced by the
higher SAIDI of 4.9 minutes for September 2013.
Packet Pg. 52
45
Operations Report
8.A.4.a
4.A
District Activity
Feb.
Mar.
Pending Work
Orders
954
1,008
963
Service Orders
Closed
3,663
Apr.
May
June
July
Aug.
Sept.
1,255 1,548 1,668 1,844 2,101 2,258
3,828 6,412 7,517 7,152 6,403 6,615 6,528 6,779
Subdivisions - New
na
52
26
11
16
12
23
18
20
Subdivisions –
Active
86
138
142
142
140
172
163
165
151
Commercial
na
6
23
45
50
52
48
38
40
Conversions
Scheduled
4
1
3
2
4
4
2
2
4
CIP Completed (YTD)
0
13
14
20
24
31
31
35
36
TXDOT Relocations
7
7
11
11
11
5
12
10
10
Material Issued
(Millions)
$2.27
$2.18 $2.26 $1.59 $1.97 $2.16 $2.72 $1.79 $1.89
Operations Report
Items of Interest
• Devil’s Hill Substation conversion
–
–
–
–
–
Canyon Lake District
September 24, 25, morning and afternoon
Two of four feeders (DH-20 and 30)
About 1,500 Transformers were cut-over
70 Teams from across the Co-op plus local Law
Enforcement for traffic control
Packet Pg. 53
46
Attachment: Item 8A4 - October
Minutes 2013
Acceptance:
Operations
Minutes
Update
of Oct
- September
21, 2013 10:00
Activity
AM2perpgA
(Minutes(2462
Approval)
: Monthly Operations Report)
Jan.
Operations Report
8.A.4.a
4.A
Attachment: Item 8A4 - October
Minutes 2013
Acceptance:
Operations
Minutes
Update
of Oct
- September
21, 2013 10:00
Activity
AM2perpgA
(Minutes(2462
Approval)
: Monthly Operations Report)
Devil’s Hill Pre-Conversion Gathering
Operations Report
Items of Interest
• Devil’s Hill Conversion
– November 19, morning only
– Approximately 700 transformers
Packet Pg. 54
47
Thank You.
Questions?
Attachment: Item 8A4 - October
Minutes 2013
Acceptance:
Operations
Minutes
Update
of Oct
- September
21, 2013 10:00
Activity
AM2perpgA
(Minutes(2462
Approval)
: Monthly Operations Report)
8.A.4.a
4.A
Packet Pg. 55
48
8.A.5.a
4.A
Attachment: Item 8A5
Minutes
- Final Acceptance:
Power SupplyMinutes
Report of
Sept
OctBOD
21, 2013
Mtg with
10:00Notes
AM (Minutes
2perpgA Approval)
(2514 : Power Supply Report)
Power Supply Report
October 2013 Board Meeting
Power Supply Report ± September 2013
Monthly Peak and Energy Requirements
•
•
•
Peak Demand
– 1,202 MW on 9/1/13 @ 5:00 pm
Energy Requirements
– September 2013 Total:
509,465 MWh
– South Trent Wind Production: 15,092 MWh
• ST Wind represents 3% of PEC’s energy needs
Monthly Load Variance ± Current Year vs. Prior Year
Sept-13
Sept-12
Delta
%
MW
1,202
1,207
(5)
0%
MWh
509,465
475,106
34,359
7%
Load Factor
58%
53%
Packet Pg. 56
49
Energy Management Services±September 2013
8.A.5.a
4.A
Energy Efficiency Programs
Activity Report - YTD September 2013
Actual
YTD September
2013
Budget
FY 2013
Remaining
% Remaining
HVAC
$424,150
$650,000
$225,850
35%
CLRP
$36,536
$350,000
$313,464
90%
IQWP
$6,935
$203,980
$197,045
97%
Attachment: Item 8A5
Minutes
- Final Acceptance:
Power SupplyMinutes
Report of
Sept
OctBOD
21, 2013
Mtg with
10:00Notes
AM (Minutes
2perpgA Approval)
(2514 : Power Supply Report)
•
HVAC = Residential A/C program
CLRP = Commercial lighting program
IQWP = Low income weatherization program
Packet Pg. 57
50
8.A.6.a
4.A
Member Services – Contact Channels
6HSµ
$XJµ
6HSµ
(Last Year)
(Last Month)
(Current)
164,739
84,065
81,090
•
High summer contact volume beginning
to decrease
Calls Answered
53,323
68,252
64,960
•
Increase in outages required more TFCC
activations
Abandoned
53,089
6,751
6,737
•
Increased outbound courtesy calls by 15k
(August - 23k, September 38k)
•
Agent utilization lowered to preferred
level, 86.5%
•
Average handle time continues to
decrease, below 5 minutes per call
•
Call activity for 9/20 estimated due to
system upgrade
Calls Offered
TFCC Activation
2,955
2,840
10,791
Outage Line
7,877
7,681
8,205
26,890
26,079
26,223
5:04
0:37
0:41
Office Interactions
Avg. Answer Time
Service Level
16.1%
63.7%
63.2%
Assessment:
Member Services – Call Performance
100%
0:05:46
90%
0:05:02
Service Level Goal
80%
0:04:19
70%
63.2%
60%
0:03:36
50%
0:02:53
40%
0:02:10
30%
0:01:26
20%
0:41
10%
0%
Speed to Answer Goal
0:00:43
0:00:00
Service Level
Avg Time to Answer
Packet Pg. 58
51
Attachment: Item 8A6 - September
Minutes Acceptance:
2013 Member
Minutes
Services
of Oct
CEO21,
Report
2013 10_17_2013
10:00 AM (Minutes
2perpgA
Approval)
(2515 : Member Services Report)
Metric:
8.A.6.a
4.A
Member Services – Agent Activities
Jul.
Aug.
Sep.
Assessment:
Phone
23,563
22,831
22,551
•
Office activity remains steady
during summer months
Lobby
11,542
11,226
11,036
Drive-Thru
10,054
9,404
9,583
•
5,817
5,449
5,604
Received near 1,000 member
contacts regarding capital credit
allocation letters in September
50,976
48,910
48,774
•
Contracts and service orders
tapering off from typical summer
increases
•
Increase in collection orders
completed
Drop Box
Total
Services
Contracts Created
5,432
4,523
3,308
Disconnect Orders Completed
794
744
647
Connect Orders Completed
795
731
681
6,601
6,499
6,703
Total Orders Completed
Member Services – Collections
• September - completed 1,203 disconnect orders (792 regular, 411 RCC meters)
• August - completed 672 orders with 11 restricted days
• Experienced 3 collection-restricted days due to high temperatures
• Aged accounts will begin declining with fall weather and more active collections
Aged
31 - 60 Days
Aged
61 - 90 Days
Aged
> 91 Days
Aged
Total
March 1
$ 660,401.43
$ 240,986.93
$ 439,031.51
$ 1,340,419.87
August 1
$ 289,756.40
$ 49,155.98
$ 38,970.29
$377,882.67
September 1
$ 407,019.77
$ 58,863.28
$ 33,868.53
$ 499,751.58
October 1
$ 561,437.70
$ 90,162.54
$ 30,577.78
$ 682,178.02
2013
Packet Pg. 59
52
Attachment: Item 8A6 - September
Minutes Acceptance:
2013 Member
Minutes
Services
of Oct
CEO21,
Report
2013 10_17_2013
10:00 AM (Minutes
2perpgA
Approval)
(2515 : Member Services Report)
Payments
Member Services – Security Initiative
8.A.6.a
4.A
• Member Services leading the effort with assistance from IT and Training
Attachment: Item 8A6 - September
Minutes Acceptance:
2013 Member
Minutes
Services
of Oct
CEO21,
Report
2013 10_17_2013
10:00 AM (Minutes
2perpgA
Approval)
(2515 : Member Services Report)
• Upgraded remote panic alarms and keypad systems in all offices
• Customer Dispute Resolution training in process; expected completion in
Dec. 2013
• Security camera assessment completed, additional camera installations
underway
• Attending “Security in the Workplace” seminar hosted by TEC
• Touring the San Antonio Water System (SAWS) security office and customer
care facility
Member Services – Outage Management
Immediate focus to improve reporting and communications during outages:
• Improving accuracy in location research when reporting outages thru TFCC:
o
Verifying accurate 911 service address descriptions
o
Expanding phone number research options for multiple accounts
• Finalizing the testing of automated call back requests at restoration
• Exploring options to improve operator responsiveness after hours and
weekends by routing after hour calls to live TFCC agents during outages and
emergency situations
Packet Pg. 60
53
8.A.7.a
4.A
Attachment: Item 8A7
Minutes
- IT Report
Acceptance:
October
Minutes
2013 Board
of OctMeeting
21, 20132perpgA
10:00 AM(2516
(Minutes
: Information
Approval)
Technology Report)
Information Technology Update
October 2013
Lawanda Parnell
Chief Information Officer
IT Initiatives
9
9
9
•
SiteFinity upgrade & Google search deployed
Call center phone system (Symposium) upgrade
AtTask and project management training developed
SAP YE HR Support Pack upgrade
– Tax and ACA changes
• Capital credits distribution
• Software upgrades
–
–
–
–
SharePoint
SnagIt
Kofax
Windows 7
Packet Pg. 61
54
8.A.7.a
4.A
IT Initiatives
• Software upgrades
• e-Fax Server implementation
• Dahill MFP printer support plan – cooperative wide
• District office network upgrades
¥
¥
¥
¥
–
–
–
Cedar Park
Bertram
Kyle
Canyon Lake
Liberty Hill
Oak Hill
Junction
- Marble Falls
IT Initiatives
•
•
•
•
•
Reviewing our PC ordering process and procedures
Helpdesk tool evaluation
Member Services security initiative
Datacenter backup relocation and disaster recovery plan
Project management resources
–
–
–
–
Facilities assessment & current facility projects
Member services security
Capital credits
Windows 7
Packet Pg. 62
55
Attachment: Item 8A7
Minutes
- IT Report
Acceptance:
October
Minutes
2013 Board
of OctMeeting
21, 20132perpgA
10:00 AM(2516
(Minutes
: Information
Approval)
Technology Report)
– IBM FileNet P8
Attachment: Item 8A8 - CEDMinutes
BoardUpdate_Solar
Acceptance: Minutes
Tour_Rev
of10-21-13
Oct 21, 2013
- Communications
10:00 AM (Minutes
2perpgA
Approval)
(2517 : Communications Report)
8.A.8.a
4.A
Communications/CED Update
Hill Country Solar Tour
Michael Racis, VP Communications
October 21, 2013
Engage members in cooperative programs and activities;
Promote distributed generation
• PEC partnered with the Texas
Solar Energy Society to host the
third annual Hill Country Solar
Tour on October 12th at the Oak
Hill Office
Packet Pg. 63
56
Engage members in cooperative programs and activities;
Promote distributed generation
8.A.8.a
4.A
–
–
–
–
–
–
–
Attachment: Item 8A8 - CEDMinutes
BoardUpdate_Solar
Acceptance: Minutes
Tour_Rev
of10-21-13
Oct 21, 2013
- Communications
10:00 AM (Minutes
2perpgA
Approval)
(2517 : Communications Report)
Attended by 214 members (up from 150 YA):
• “PEC: Illuminating the Future” – John Hewa
• “Solar Energy 101” – Cathy Redson
• “Solarize Your Community” – Larry Howe
• Solar & energy efficiency exhibits
PEC interconnection and net metering
MyUse Energy Analyzer registration
PEC conservation
Texas Solar Energy Society – membership info
Lighthouse Solar - Hands-on demo
RBFCU - Energy Saver Loan
NRG/RSS -Residential solar leasing
Engage members in cooperative programs and activities;
Promote distributed generation
Five solar homes on tour – 505 visits:
• 13001 Trail Driver, Austin
–
155 visitors
• 430 Harris, Austin
–
104 visitors
• 400 Twin Oaks Trail, Dripping Springs
–
105 visitors
• 7117 RR 165, Blanco
–
79 visitors
• 303 Misty River Run, Blanco
–
62 visitors
Note: 2012 tour have avg. 55 visitors per home
Packet Pg. 64
57
Engage members in cooperative programs and activities;
Promote distributed generation
8.A.8.a
4.A
–
Attachment: Item 8A8 - CEDMinutes
BoardUpdate_Solar
Acceptance: Minutes
Tour_Rev
of10-21-13
Oct 21, 2013
- Communications
10:00 AM (Minutes
2perpgA
Approval)
(2517 : Communications Report)
• Solar car workshop - approx. 25 children participated
Dr. Gary Vliet, Professor Emeritus, Dept. of Mechanical Engineering at UT Austin
Thank you.
Questions?
Packet Pg. 65
58
8.B.1
4.A
!
"#"$
!-+/'.0
1
(!'2*'
"
#!*+',-.!
$"%!/324+//2
&'%!
()!
*+*
,--
.!**
#.
1!'3241"56
636- ! % &'&
$()*+',-.!
Minutes Acceptance: Minutes of Oct 21, 2013 10:00 AM (Minutes Approval)
,(-!
7"89
Packet Pg. 66
59
'
8.B.1
4.A
/%00
,$
12%3
'0-
%'
2
4(2'/!&*)!'!+:/!'2*''!&/"!2!/
!'+'&!.&' *'4*&)'.&&2*4&'&&'*
*.'+'+!'*./&!'*3*2!2
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27(82/324+//2!!&'4!>&
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0**'.","!2"!2!
*.2'*!!'@*A'&'@!
% &'&
$()*+',-.!
Packet Pg. 67
60
'
Minutes Acceptance: Minutes of Oct 21, 2013 10:00 AM (Minutes Approval)
1
%-
%"%4
5
%56'
/0%
Discussion and
Update on Strategic
Plan Execution
Strategic Plan and Strategy Source Matrix
October 7 Session Recap
John Hewa, CEO
Michael Racis, VP, Communications
Strategic Session Recap
Special Board Meeting held October 7 regarding Strategic Plan Execution:
• Board of Directors received presentation from the Executive Team reviewing
initiatives that support current strategy in the key areas of: employees, rates
and costs, member satisfaction and power supply
• CEO outlined possible future strategic efforts/programs to move PEC forward
• Board and Executive team discussed adoption of the Touchstone Energy
Strategy Execution Structure for aligning management initiatives and projects
with Board strategy
– Based on process developed by Dr. Robert Kaplan and Dr. David Norton, globally recognized
thought leaders from Harvard Business School
– Proven process adopted and used by Fortune 1000 companies
– Touchstone Energy Committees began working with Kaplan and Norton’s Palladium Group to
address co-op CEOs’ requests for aid with strategy execution
– Developed customized, flexible approach specifically for distribution cooperatives
Packet Pg. 68
61
Attachment: Item 8B1 - Strategy Execution
Minutes Acceptance:
- BODMTG_20131021_SES_MR
Minutes of Oct 21, 2013
2perpgA
10:00 (RES-2013-80
AM (Minutes Approval)
: Revision of Mission Statement Within the
8.B.1.a
4.A
Strategic Session Recap
2.
DEVELOP THE STRATEGY
1.1 Drive the Strategy Execution
Agenda
1.2 Sustain Strategy Execution
1.3 Affirm Purpose, Mission,
Values, and Vision
1.4 Perform Strategic Analysis
1.5 Formulate Strategy
1.6 Define Value Gap and Enhance
the Vision
TRANSLATE THE STRATEGY
2.1 Design Strategy Map with
Linked Strategic Objectives
2.2 Define Strategic Measures and
Stretch Targets
2.3 Prioritize Strategic Initiatives
and Funding
2.4 Build the Balanced Scorecard
2.5 Assign Accountabilities for
Strategy Execution
3.
6.
TEST AND ADAPT
6.1 Annual Leadership Retreat
Strategy Execution
Structure (SES) for
Touchstone Energy
Cooperatives
5.
MONITOR AND LEARN
5.1 Conduct Strategy Review
Meetings
5.2 Manage Initiatives
ALIGN THE ORGANIZATION
3.1 Strategy Communications &
Alignment
3.2 Align Individual Goals
3.3 Align Compensation
Execute
Initiatives
4.
LINK TO OPERATIONS
Processes
4.1 Use Models to Set Priorities &
Operationalize the Strategy
4.2 Integrate Financial Planning with
the Strategy
4.3 Create Operational Dashboards
4.4 Information Strategy and Plan
OUR COOPERATIVE VALUES OF:
MEMBERS
M1. Offer innovative
services, products
and self-service
capabilities
SAFETY
M2. Continually
enhance member
communication and
education programs
TRUST
ACCOUNTABILITY & INTEGRITY
M3. Engage members
in co-op programs
and activities
RESPECT
M4. Provide
meaningful
community
engagement and
support
SERVICE
M5. Increase overall
member satisfaction
and satisfaction with
key interactions
D
DRIVE
OUR
V
VISION TO:
PROVIDE
COMMUNITIES
WITH
EXCELLENT
MEMBER
SERVICES
SAFETY
S1. Maintain a
workforce that
performs its duties
safely
S2. Limit OSHArecordable incidents
S3. Limit lost time and
restricted duty
injuries
COMPETITIVE PRICE & FISCAL RESPONSIBILITY
CORE
OPERATIONS
PFR1. Become a lower
cost energy provider
PFR2. Meet or exceed
all lender
requirements
PFR3. Limit the
expenses with most
discretionary control
PFR4. Efficiently and
effectively manage
employee resources
PFR5. Limit exposure
to uncollectible
revenue
RELIABLE, RESPONSIBLE ENERGY SERVICES
RS1. Maintain system
reliability with
minimal number of
outages
PEC TEAM
M
FOCUSING
ING
ON::
T1. Maintain a
competent, motivated,
effective workforce
RS2. Restore service
safely and quickly to
reduce average
system outage times
RS3. Assure
adequate, reliable
wholesale power
supply
T2. Build and maintain
trust between the Board,
Management and
Employees
RS4. Assure power
supply balances
costs, risks, energy
efficiency/renewable
goals, source
diversity, and
contract length
T3. Provide fair
compensation for
employees
PROVIDE SAFE,
RELIABLE
ENERGY
SERVICES AT A
COMPETITIVE
PRICE WHILE
BEING A
RESPONSIBLE
STEWARD OF
OUR
RESOURCES
RS5. Promote
distributed
generation
T4. Provide support and
opportunities for
personal and career
growth
PROVIDE A
REWARDING,
FAIR AND SAFE
WORKPLACE
FOR OUR
EMPLOYEES
AS WE FULFILL OUR MISSION TO: BE AN ORGANIZATION BASED ON EXCELLENCE
DRAFT STRATEGY MAP FOR ILLUSTRATION: From Board-Approved 2013-15 Strategic Plan (10/2012) and Board-Approved KPIs (11/2012)
Packet Pg. 69
62
Attachment: Item 8B1 - Strategy Execution
Minutes Acceptance:
- BODMTG_20131021_SES_MR
Minutes of Oct 21, 2013
2perpgA
10:00 (RES-2013-80
AM (Minutes Approval)
: Revision of Mission Statement Within the
1.
8.B.1.a
4.A
Strategic Session Recap
8.B.1.a
4.A
Attachment: Item 8B1 - Strategy Execution
Minutes Acceptance:
- BODMTG_20131021_SES_MR
Minutes of Oct 21, 2013
2perpgA
10:00 (RES-2013-80
AM (Minutes Approval)
: Revision of Mission Statement Within the
Process has multiple benefits:
• Based
off implementing
adopted by
B d on a proven structure
t t
i l
ti strategy;
t t
cooperative industry
• Initiatives aggregated in single document for efficiency and consistency
• Can quickly see the “big picture” and align operations and resources
needed to be successful
• Helps employees understand their individual role in Co-op success
Strategic Session Recap
One suggested addition to the mission statement
VISION
Our PEC family is committed to serving our communities through excellent member services
and safe, reliable energy services at a competitive
price; to guiding responsible stewardship of
MISSIO
M
I SSI O
our resources; and providing a rewarding, fair,
N and safe work place for our employees.
MISSION
To fulfill our Vision, we will be an organization based on innovation and excellence.
VALUES
Safety (employees are
expected to create a safe
working environment)
Trust (membership and
employee/Board/management,
openness and transparency,
confidentiality, member
communications)
Respect (people, environment,
and law)
Accountability and Integrity
(honesty, ethics, conflict of
interest, codes of conduct,
delivery of our promises,
financial accountability)
Service
Packet Pg. 70
63
Thank you!
Attachment: Item 8B1 - Strategy Execution
Minutes Acceptance:
- BODMTG_20131021_SES_MR
Minutes of Oct 21, 2013
2perpgA
10:00 (RES-2013-80
AM (Minutes Approval)
: Revision of Mission Statement Within the
May I Answer Any Questions?
8.B.1.a
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Each Board Director, Officer, Key Employee, Chief Executive Officer, Vice President,
Chief Information Officer, Chief Financial Officer, General Counsel, and Director of Pedernales
Electric Cooperative, Inc. must comply with this Policy. If any portion of this Policy conflicts with
the Bylaws of the Pedernales Electric Cooperative, Inc., the Bylaws control.
1.
Definitions. As used in this Policy, and unless the context requires otherwise:
A.
B.
C.
“Board” means the Pedernales Electric Cooperative, Inc. Board of Directors.
“Board Director” means a member of the Board.
“Business Opportunity” means an opportunity to engage in a business activity,
other than an opportunity offered to all similarly situated Cooperative members,
of which:
1) An Official becomes aware in connection with performing Official
functions; under circumstances reasonably indicating that the opportunity
was expected to be offered to Cooperative or a Subsidiary; or through
using Cooperative or Subsidiary information or property if the Official
should reasonably expect the opportunity to interest Cooperative or the
Subsidiary; or
2) An Official becomes aware and knows is closely related to a business in
which Cooperative or a Subsidiary is engaged or expects to engage.
D.
E.
F.
G.
“Chief Executive Officer” means the Chief Executive Officer of the Cooperative,
or if the Chief Executive Officer’s position is vacant, the individual with ultimate
responsibility for implementing the Board’s decisions or supervising the
Cooperative’s management, administration, and operations.
“Chief Financial Officer” means the Chief Financial Officer of the Cooperative, or
if the Chief Financial Officer’s position is vacant, the individual with ultimate
responsibility for the Cooperative’s finance and accounting functions.
“Chief Information Officer” means the Chief Information Officer of the
Cooperative, or if the Chief Information Officer’s position is vacant, the individual
with ultimate responsibility for the Cooperative’s information technology function.
“Conflicting Interest Transaction” means a financial transaction or proposed
financial transaction by Cooperative or a Subsidiary, other than the payment of
Official compensation or provision of Official benefits, and other than a
transaction offered to all similarly situated Cooperative members:
1) To which an Official is a party; or
2) For which, at the time the Board considers the transaction, or at the time
the Cooperative or the Subsidiary becomes legally obligated regarding
the transaction, an Official had knowledge and a Material Interest known
to the Official; or an Official knew that a Related Person was a party or
had a Material Interest.
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Conflict of Interest Policy
Packet Pg. 100
H.
“Control” or “Controlled” means:
1)
2)
3)
I.
J.
K.
“Cooperative” means Pedernales Electric Cooperative, Inc.
“Director” means any employee of the Cooperative who is classified as a Director
or Senior Director within the employee job classification schedule.
“Disinterested Board Director” means a Board Director who, at the time the
Board acts regarding income, employment, competition, a Conflicting Interest
Transaction, or a Business Opportunity:
1)
2)
L.
M.
2)
3)
P.O.
Is not associated with the income, employment, or compensation; is not
engaged in the Transaction; and is not taking advantage of the
Opportunity; and
Does not have a relationship with an Official associated with the income,
employment, or compensation; engaged in the Transaction; or taking
advantage of the Opportunity, which relationship would reasonably be
expected to impair the objectivity of the Board Director’s judgment
regarding the income, employment, competition, Transaction, or
Opportunity.
“General Counsel” means the General Counsel of the Cooperative, or if the
General Counsel’s position is vacant, the individual with ultimate responsibility for
the Cooperative’s legal functions.
“Key Employee” means a Cooperative employee, other than an Officer, who:
1)
N.
O.N.
Having the direct or indirect power, through ownership of shares or
interests, by contract, or otherwise, to elect or remove a majority of an
entity’s governing body;
Being subject to a majority of the risk of loss from an entity’s activities; or
Being entitled to receive a majority of an entity’s residual returns.
Receives more than $150,000 in compensation reported to the Internal
Revenue Service on Form W-2;
Has responsibilities, powers, or influence over the Cooperative similar to
a Officer; manages a segment or activity of the Cooperative representing
ten percent or more of the Cooperative’s activities, assets, income, or
expenses; or has or shares authority to control or determine ten percent
or more of the Cooperative’s capital expenditures, operating budget, or
employee compensation; and
Is one of the twenty Cooperative employees with the highest
compensation reported to the Internal Revenue Service on Form W-2.
“General Counsel” means the General Counsel of the Cooperative.
“Material Interest” means an interest in a transaction, financial or otherwise, that
would reasonably be expected to impair the objectivity of an Official’s judgment
regarding the transaction.
“Officer” means an individual:
1)
Appointed by the Board, or by another Officer authorized by the Board or
by the Cooperative’s articles of incorporation or Bylaws; and
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Conflict of Interest Policy
Packet Pg. 101
2)
Q.P.
R.Q.
S.R.
S.
T.
“Official” means a Board Director, Officer, Key Employee, Chief Executive
Officer, Vice President, Chief Information Officer, Chief Financial Officer, General
Counsel, and Director of the Cooperative.
“President” means a Board Director who is President of the Board of the
Cooperative.
“Policy” means this Pedernales Electric Cooperative, Inc. Conflict of Interest
Policy.
“Potential Conflict” means any circumstance for which a duty to disclose does not
currently exist, but that a reasonable person would believe or an Official actually
believes is likely to result in a future duty to disclose.
“Related Entity” means an entity, other than the Cooperative, a Subsidiary, or an
entity of which the Cooperative is a member:
1)
2)
3)
4)
5)
6)
2.
Serving as a chief executive, operating, financial, legal, or accounting
officer; being in charge of a principal business unit; or performing a major
policymaking function.
Controlled by an Official or an Official’s Related Individual;
In which an Official owns more than ten percent of the entity’s shares or
interests;
For which an Official is a general partner or member of the governing
body;
For which an Official is a trustee, guardian, personal representative, or
similar fiduciary;
Employing an Official; or
Controlled by an entity employing an Official.
U.
“Related Individual” means an individual
1)
Who is by blood, marriage, or other legal action: parent, spouse, child,
sibling, grandparent, grandchild, aunt, uncle, nephew, niece, first cousin,
and corresponding in-law or step relation of an Official or Cooperative
employee who is not an Official ;
2)
Residing with an Official or Cooperative employee who is not an Official;
3)
For whom an Official or Cooperative employee who is not an Official is a
trustee, guardian, personal representative, or fiduciary; or
4)
Employing an Official or Cooperative employee who is not an Official.
V.
W.
X.
“Related Person” means a Related Entity or a Related Individual.
“Subsidiary” means an entity Controlled by the Cooperative.
“Vice President” means any employee of the Cooperative who is classified as a
Vice President within the employee job classification schedule.
Employment and Income. A Board Director may not be employed by the Cooperative or
a Subsidiary.
Unless an Official discloses income or employment to the Board and a majority of
Disinterested Board Directors authorizes or ratifies the income or employment, the
Official:
A.
Other than retirement or insurance income from the Cooperative, and other than
Director or employment compensation from the Cooperative, may not directly or
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Conflict of Interest Policy
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B.
C.
indirectly receive more than ten percent of the Official’s annual gross income
from Cooperative, a Subsidiary, or a Cooperative or Subsidiary employee;
May not directly or indirectly receive more than twenty-five percent of the
Official’s annual gross income from another Official; andor
May not have a Related Individual employed by Cooperative or a Subsidiary.
Related individuals are not permitted to work in the same department or district. No
employee is permitted to work within the chain of command of a related individual.
Employees will have no influence over the wages, hours, benefits, career progression, or
other terms and conditions of a related individual’s employment.
3.
Competition. An Official may not advance the Official’s pecuniary interests, or have a
Related Person that advances the Related Person’s pecuniary interests, by competing
with the Cooperative or a Subsidiary, unless:
A.
B.
4.
Conflicting Interest Transaction. An Official may not engage in a Conflicting Interest
Transaction unless:
A.
B.
5.
Any benefit that the Cooperative or the Subsidiary may reasonably expect to
derive from the competition outweighs any reasonably foreseeable harm to
Cooperative or the Subsidiary from the competition; and
The Official discloses the competition to the Board and a majority of
Disinterested Board Directors authorizes or ratifies the competition.
To the extent unknown by Disinterested Board Directors, the Official discloses
the existence and nature of the Official’s conflicting interest and all facts known to
the Official regarding the Transaction that a Disinterested Board Director would
reasonably believe to be material in acting regarding the Transaction;
Disinterested Board Directors deliberate and vote regarding the Transaction
outside the presence of, and without participation by, the Official; and a majority
of Disinterested Board Directors, but not less than two, authorizes the
Transaction; or
According to the circumstances at the time the Board considers the Transaction,
or at the time the Cooperative or the Subsidiary becomes legally obligated
regarding the Transaction, the Transaction, as a whole, benefits the Cooperative
or the Subsidiary, considering, as appropriate, whether the Transaction was fair
in terms of the Official’s dealings with the Cooperative or the Subsidiary and
whether the Transaction was comparable to what might have been obtained in
an arm’s length transaction, given the consideration paid or received by the
Cooperative or Subsidiary.
Business Opportunity. An Official may not directly or indirectly take advantage of a
Business Opportunity unless, before the Official becomes legally obligated regarding the
Opportunity:
A.
B.
The Official informs the Cooperative or Subsidiary of the Opportunity; and
To the extent unknown by Disinterested Board Directors, the Official discloses
the existence and nature of the Opportunity and all facts known to the Official
regarding the Opportunity that a Disinterested Board Director would reasonably
believe to be material in acting regarding the Opportunity; Disinterested Board
Directors deliberate and vote regarding the Opportunity outside the presence of,
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and without participation by, the Official; and the Cooperative, by a vote a
majority of Disinterested Board Directors, but not less than two, disclaims interest
in the Opportunity.
6.
Insider Pecuniary Benefit. An Official may not use Cooperative or Subsidiary property,
material private information, or position to secure pecuniary benefit unless:
A.
B.
C.
D.
E.
7.
Value is given for the use and assuming the use is a Conflicting Interest
Transaction, the Official could engage in the Transaction under this Policy;
The use is payment of compensation or provision of benefits;
The use is of information only and the use is not connected with trading
securities, is not a use of proprietary information, and does not harm the
Cooperative or Subsidiary;
Assuming the use is a Conflicting Interest Transaction, a majority of Disinterested
Board Directors authorizes the Transaction under this Policy; or
The benefit is received as a Cooperative member; made available to all other
similarly situated Cooperative members; and lawful.
Compliance and Enforcement. The Board interprets and enforces this Policy. The
Cooperative’s legal counsel must annually review this Policy with all Officials. The
minutes of all Board meetings should record all disclosures, votes, authorizations, and
other actions taken under this Policy. Each Official must annually complete and sign the
Conflict of Interest Certification and Disclosure Form attached to this Policy and deliver
the completed and signed Form to the President. If an Official discovers any information
or fact that could impact another Official’s compliance with this Policy, then the Official
must disclose the information or fact to the President immediately. An Official has an
obligation to disclose, upon request or otherwise, information sufficient to determine
whether the Official is in compliance with this Policy. Any Official who is a Board
Director has and must comply with the Board Directors’ heightened Duty of Candor
under law. Any person subject to this policy may seek a confidential advisory opinion on
compliance with this policy from the General Counsel or other attorney designated by
the Board as Cooperative counsel, to the degree such confidence is consistent with the
attorney’s duties to the Cooperative.
If the President receives a Form disclosing any information or fact that could impact an
Official’s compliance with this Policy, then, the President must distribute the Form to the
Board and the Chief Executive Officer. If the Chief Executive Officer or the President
receives or discovers any other information or fact that could impact any Official’s
compliance with this Policy, then, respectively, the Chief Executive Officer must disclose
this information or fact to the President and the President must disclose this information
or fact to the Board.
Upon receiving or discovering any information or fact that could impact a Board
Director’s compliance with this Policy, the Board must:
A.
B.
Provide the Board Director an opportunity to comment orally and in writing
regarding the information or fact, and an opportunity to be represented by legal
counsel; and
Determine whether the Board Director complies with this Policy.
If the Board determines that a Board Director does not comply with this Policy, then:
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Conflict of Interest Policy
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A.
B.
The Board must provide the Board Director an opportunity to comply with this
Policy within thirty days; and
If the Board Director does not comply with this Policy within thirty days, then, as
allowed by law, the Board may, upon a proper motion by a Board Director,
proceed to remove the Director under Article III, Section 5 of the Bylaws.
Upon receiving or discovering any information or fact that could impact any other
Official’s compliance with this Policy, the Board must act as appropriate or authorize the
Chief Executive Officer to act as appropriate.
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Conflict of Interest Policy
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Conflict of Interest Certification and Disclosure Form
As defined in the Pedernales Electric Cooperative, Inc. Conflict of Interest Policy
(Policy), the undersigned Official states:
1.
2.
3.
4.
5.
6.
AffirmsI affirm that Official hasI have received or haves access to, haves read, and
understands the most current version of the Policy;
AgreesI agree to comply with the Policy;
Based upon Official’smy good faith belief, to the best of Official’smy knowledge, and
except as disclosed below, certifiesI certify that OfficialI currently compliescomply with
the Policy;
DisclosesI disclose the following information or facts regarding any actual or pPotential
Conflict or any actual income, employment, compensation, Conflicting Interest
Transaction, Business Opportunity, or pecuniary benefit, or other information or fact, that
could impact Official’s my compliance with the Policy:
______________________________________________________________________
______________________________________________________________________
_____________________________________________________________________;
Upon discovering any information or fact regarding any Potential Conflict or any actual or
potential income, employment, compensation, Conflicting Interest Transaction, Business
Opportunity, or pecuniary benefit, or other information or fact, that could impact Official’s
my compliance, or another Official’s compliance, with the Policy, agreesI agree to
disclose this information or fact to the Cooperative’s President or Chief Executive
Officer; and
Upon not complying with the Policy, agreesI agree to any sanction, disqualification,
removal, or other action taken under the Policy, consistent with law and the Cooperative
Bylaws.
___________________________________
Printed Name of Official
___________________________________
Signature of Official
__________________________________
Position of Official
___________________________________
Date
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Conflict of Interest Policy
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Each Board Director, Officer, Key Employee, Chief Executive Officer, Vice President,
Chief Information Officer, Chief Financial Officer, General Counsel, and Director of Pedernales
Electric Cooperative, Inc. must comply with this Policy. If any portion of this Policy conflicts with
the Bylaws of the Pedernales Electric Cooperative, Inc., the Bylaws control.
1.
Definitions. As used in this Policy, and unless the context requires otherwise:
A.
B.
C.
“Board” means the Pedernales Electric Cooperative, Inc. Board of Directors.
“Board Director” means a member of the Board.
“Business Opportunity” means an opportunity to engage in a business activity,
other than an opportunity offered to all similarly situated Cooperative members,
of which:
1) An Official becomes aware in connection with performing Official
functions; under circumstances reasonably indicating that the opportunity
was expected to be offered to Cooperative or a Subsidiary; or through
using Cooperative or Subsidiary information or property if the Official
should reasonably expect the opportunity to interest Cooperative or the
Subsidiary; or
2) An Official becomes aware and knows is closely related to a business in
which Cooperative or a Subsidiary is engaged or expects to engage.
D.
E.
F.
G.
“Chief Executive Officer” means the Chief Executive Officer of the Cooperative,
or if the Chief Executive Officer’s position is vacant, the individual with ultimate
responsibility for implementing the Board’s decisions or supervising the
Cooperative’s management, administration, and operations.
“Chief Financial Officer” means the Chief Financial Officer of the Cooperative, or
if the Chief Financial Officer’s position is vacant, the individual with ultimate
responsibility for the Cooperative’s finance and accounting functions.
“Chief Information Officer” means the Chief Information Officer of the
Cooperative, or if the Chief Information Officer’s position is vacant, the individual
with ultimate responsibility for the Cooperative’s information technology function.
“Conflicting Interest Transaction” means a financial transaction or proposed
financial transaction by Cooperative or a Subsidiary, other than the payment of
Official compensation or provision of Official benefits, and other than a
transaction offered to all similarly situated Cooperative members:
1) To which an Official is a party; or
2) For which, at the time the Board considers the transaction, or at the time
the Cooperative or the Subsidiary becomes legally obligated regarding
the transaction, an Official had knowledge and a Material Interest known
to the Official; or an Official knew that a Related Person was a party or
had a Material Interest.
Page 1 of 7 Pedernales Electric Cooperative, Inc.
Conflict of Interest Policy
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Packet Pg. 107
H.
“Control” or “Controlled” means:
1)
2)
3)
I.
J.
K.
“Cooperative” means Pedernales Electric Cooperative, Inc.
“Director” means any employee of the Cooperative who is classified as a Director
or Senior Director within the employee job classification schedule.
“Disinterested Board Director” means a Board Director who, at the time the
Board acts regarding income, employment, competition, a Conflicting Interest
Transaction, or a Business Opportunity:
1)
2)
L.
M.
2)
3)
O.
Is not associated with the income, employment, or compensation; is not
engaged in the Transaction; and is not taking advantage of the
Opportunity; and
Does not have a relationship with an Official associated with the income,
employment, or compensation; engaged in the Transaction; or taking
advantage of the Opportunity, which relationship would reasonably be
expected to impair the objectivity of the Board Director’s judgment
regarding the income, employment, competition, Transaction, or
Opportunity.
“General Counsel” means the General Counsel of the Cooperative, or if the
General Counsel’s position is vacant, the individual with ultimate responsibility for
the Cooperative’s legal functions.
“Key Employee” means a Cooperative employee, other than an Officer, who:
1)
N.
Having the direct or indirect power, through ownership of shares or
interests, by contract, or otherwise, to elect or remove a majority of an
entity’s governing body;
Being subject to a majority of the risk of loss from an entity’s activities; or
Being entitled to receive a majority of an entity’s residual returns.
Receives more than $150,000 in compensation reported to the Internal
Revenue Service on Form W-2;
Has responsibilities, powers, or influence over the Cooperative similar to
a Officer; manages a segment or activity of the Cooperative representing
ten percent or more of the Cooperative’s activities, assets, income, or
expenses; or has or shares authority to control or determine ten percent
or more of the Cooperative’s capital expenditures, operating budget, or
employee compensation; and
Is one of the twenty Cooperative employees with the highest
compensation reported to the Internal Revenue Service on Form W-2.
“Material Interest” means an interest in a transaction, financial or otherwise, that
would reasonably be expected to impair the objectivity of an Official’s judgment
regarding the transaction.
“Officer” means an individual:
1)
2)
Appointed by the Board, or by another Officer authorized by the Board or
by the Cooperative’s articles of incorporation or Bylaws; and
Serving as a chief executive, operating, financial, legal, or accounting
officer; being in charge of a principal business unit; or performing a major
policymaking function.
Page 2 of 7 Pedernales Electric Cooperative, Inc.
Conflict of Interest Policy
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Packet Pg. 108
P.
Q.
R.
S.
T.
“Official” means a Board Director, Officer, Key Employee, Chief Executive
Officer, Vice President, Chief Information Officer, Chief Financial Officer, General
Counsel, and Director of the Cooperative.
“President” means a Board Director who is President of the Board of the
Cooperative.
“Policy” means this Pedernales Electric Cooperative, Inc. Conflict of Interest
Policy.
“Potential Conflict” means any circumstance for which a duty to disclose does not
currently exist, but that a reasonable person would believe or an Official actually
believes is likely to result in a future duty to disclose.
“Related Entity” means an entity, other than the Cooperative, a Subsidiary, or an
entity of which the Cooperative is a member:
1)
2)
3)
4)
5)
6)
2.
Controlled by an Official or an Official’s Related Individual;
In which an Official owns more than ten percent of the entity’s shares or
interests;
For which an Official is a general partner or member of the governing
body;
For which an Official is a trustee, guardian, personal representative, or
similar fiduciary;
Employing an Official; or
Controlled by an entity employing an Official.
U.
“Related Individual” means an individual
1)
Who is by blood, marriage, or other legal action: parent, spouse, child,
sibling, grandparent, grandchild, aunt, uncle, nephew, niece, first cousin,
and corresponding in-law or step relation of an Official or Cooperative
employee who is not an Official ;
2)
Residing with an Official or Cooperative employee who is not an Official;
3)
For whom an Official or Cooperative employee who is not an Official is a
trustee, guardian, personal representative, or fiduciary; or
4)
Employing an Official or Cooperative employee who is not an Official.
V.
W.
X.
“Related Person” means a Related Entity or a Related Individual.
“Subsidiary” means an entity Controlled by the Cooperative.
“Vice President” means any employee of the Cooperative who is classified as a
Vice President within the employee job classification schedule.
Employment and Income. A Board Director may not be employed by the Cooperative or
a Subsidiary.
Unless an Official discloses income or employment to the Board and a majority of
Disinterested Board Directors authorizes or ratifies the income or employment, the
Official:
A.
Other than retirement or insurance income from the Cooperative, and other than
Director or employment compensation from the Cooperative, may not directly or
indirectly receive more than ten percent of the Official’s annual gross income
from Cooperative, a Subsidiary, or a Cooperative or Subsidiary employee;
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B.
C.
May not directly or indirectly receive more than twenty-five percent of the
Official’s annual gross income from another Official; or
May not have a Related Individual employed by Cooperative or a Subsidiary.
Related individuals are not permitted to work in the same department or district. No
employee is permitted to work within the chain of command of a related individual.
Employees will have no influence over the wages, hours, benefits, career progression, or
other terms and conditions of a related individual’s employment.
3.
Competition. An Official may not advance the Official’s pecuniary interests, or have a
Related Person that advances the Related Person’s pecuniary interests, by competing
with the Cooperative or a Subsidiary, unless:
A.
B.
4.
Conflicting Interest Transaction. An Official may not engage in a Conflicting Interest
Transaction unless:
A.
B.
5.
Any benefit that the Cooperative or the Subsidiary may reasonably expect to
derive from the competition outweighs any reasonably foreseeable harm to
Cooperative or the Subsidiary from the competition; and
The Official discloses the competition to the Board and a majority of
Disinterested Board Directors authorizes or ratifies the competition.
To the extent unknown by Disinterested Board Directors, the Official discloses
the existence and nature of the Official’s conflicting interest and all facts known to
the Official regarding the Transaction that a Disinterested Board Director would
reasonably believe to be material in acting regarding the Transaction;
Disinterested Board Directors deliberate and vote regarding the Transaction
outside the presence of, and without participation by, the Official; and a majority
of Disinterested Board Directors, but not less than two, authorizes the
Transaction; or
According to the circumstances at the time the Board considers the Transaction,
or at the time the Cooperative or the Subsidiary becomes legally obligated
regarding the Transaction, the Transaction, as a whole, benefits the Cooperative
or the Subsidiary, considering, as appropriate, whether the Transaction was fair
in terms of the Official’s dealings with the Cooperative or the Subsidiary and
whether the Transaction was comparable to what might have been obtained in
an arm’s length transaction, given the consideration paid or received by the
Cooperative or Subsidiary.
Business Opportunity. An Official may not directly or indirectly take advantage of a
Business Opportunity unless, before the Official becomes legally obligated regarding the
Opportunity:
A.
B.
The Official informs the Cooperative or Subsidiary of the Opportunity; and
To the extent unknown by Disinterested Board Directors, the Official discloses
the existence and nature of the Opportunity and all facts known to the Official
regarding the Opportunity that a Disinterested Board Director would reasonably
believe to be material in acting regarding the Opportunity; Disinterested Board
Directors deliberate and vote regarding the Opportunity outside the presence of,
and without participation by, the Official; and the Cooperative, by a vote a
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majority of Disinterested Board Directors, but not less than two, disclaims interest
in the Opportunity.
6.
Insider Pecuniary Benefit. An Official may not use Cooperative or Subsidiary property,
material private information, or position to secure pecuniary benefit unless:
A.
B.
C.
D.
E.
7.
Value is given for the use and assuming the use is a Conflicting Interest
Transaction, the Official could engage in the Transaction under this Policy;
The use is payment of compensation or provision of benefits;
The use is of information only and the use is not connected with trading
securities, is not a use of proprietary information, and does not harm the
Cooperative or Subsidiary;
Assuming the use is a Conflicting Interest Transaction, a majority of Disinterested
Board Directors authorizes the Transaction under this Policy; or
The benefit is received as a Cooperative member; made available to all other
similarly situated Cooperative members; and lawful.
Compliance and Enforcement. The Board interprets and enforces this Policy. The
Cooperative’s legal counsel must annually review this Policy with all Officials. The
minutes of all Board meetings should record all disclosures, votes, authorizations, and
other actions taken under this Policy. Each Official must annually complete and sign the
Conflict of Interest Certification and Disclosure Form attached to this Policy and deliver
the completed and signed Form to the President. If an Official discovers any information
or fact that could impact another Official’s compliance with this Policy, then the Official
must disclose the information or fact to the President immediately. An Official has an
obligation to disclose, upon request or otherwise, information sufficient to determine
whether the Official is in compliance with this Policy. Any Official who is a Board
Director has and must comply with the Board Directors’ heightened Duty of Candor
under law. Any person subject to this policy may seek a confidential advisory opinion on
compliance with this policy from the General Counsel or other attorney designated by
the Board as Cooperative counsel, to the degree such confidence is consistent with the
attorney’s duties to the Cooperative.
If the President receives a Form disclosing any information or fact that could impact an
Official’s compliance with this Policy, then, the President must distribute the Form to the
Board and the Chief Executive Officer. If the Chief Executive Officer or the President
receives or discovers any other information or fact that could impact any Official’s
compliance with this Policy, then, respectively, the Chief Executive Officer must disclose
this information or fact to the President and the President must disclose this information
or fact to the Board.
Upon receiving or discovering any information or fact that could impact a Board
Director’s compliance with this Policy, the Board must:
A.
B.
Provide the Board Director an opportunity to comment orally and in writing
regarding the information or fact, and an opportunity to be represented by legal
counsel; and
Determine whether the Board Director complies with this Policy.
If the Board determines that a Board Director does not comply with this Policy, then:
Page 5 of 7 Pedernales Electric Cooperative, Inc.
Conflict of Interest Policy
Attachment: Conflict of Interest Policy proposed 2013-10-04 clean version (2506 : Posting of Proposed Revisions to the Bylaws and Conflict of
6.A.1.d
Packet Pg. 111
A.
B.
The Board must provide the Board Director an opportunity to comply with this
Policy within thirty days; and
If the Board Director does not comply with this Policy within thirty days, then, as
allowed by law, the Board may, upon a proper motion by a Board Director,
proceed to remove the Director under Article III, Section 5 of the Bylaws.
Upon receiving or discovering any information or fact that could impact any other
Official’s compliance with this Policy, the Board must act as appropriate or authorize the
Chief Executive Officer to act as appropriate.
Page 6 of 7 Pedernales Electric Cooperative, Inc.
Conflict of Interest Policy
Attachment: Conflict of Interest Policy proposed 2013-10-04 clean version (2506 : Posting of Proposed Revisions to the Bylaws and Conflict of
6.A.1.d
Packet Pg. 112
Conflict of Interest Certification and Disclosure Form
As defined in the Pedernales Electric Cooperative, Inc. Conflict of Interest Policy
(Policy), the undersigned Official states:
1.
2.
3.
4.
5.
6.
I affirm that I have received or have access to, have read, and understand the most
current version of the Policy;
I agree to comply with the Policy;
Based upon my good faith belief, to the best of my knowledge, and except as disclosed
below, I certify that I currently comply with the Policy;
I disclose the following information or facts regarding any Potential Conflict or any actual
income, employment, compensation, Conflicting Interest Transaction, Business
Opportunity, or pecuniary benefit, or other information or fact, that could impact my
compliance with the Policy:
______________________________________________________________________
______________________________________________________________________
_____________________________________________________________________;
Upon discovering any information or fact regarding any Potential Conflict or any actual
income, employment, compensation, Conflicting Interest Transaction, Business
Opportunity, or pecuniary benefit, or other information or fact, that could impact my
compliance, or another Official’s compliance, with the Policy, I agree to disclose this
information or fact to the Cooperative’s President or Chief Executive Officer; and
Upon not complying with the Policy, I agree to any sanction, disqualification, removal, or
other action taken under the Policy, consistent with law and the Cooperative Bylaws.
___________________________________
Printed Name of Official
___________________________________
Signature of Official
__________________________________
Position of Official
___________________________________
Date
Page 7 of 7 Pedernales Electric Cooperative, Inc.
Conflict of Interest Policy
Attachment: Conflict of Interest Policy proposed 2013-10-04 clean version (2506 : Posting of Proposed Revisions to the Bylaws and Conflict of
6.A.1.d
Packet Pg. 113
6.A.2
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7.A.2.a
Growth Statistics
YEAR/
MONTH
ACTIVE
ACCOUNTS*
NET
INCREASE
237,470
237,741
238,171
238,550
239,044
239,579
240,140
240,870
241,058
241,691
241,987
242,331
473
271
430
379
494
535
561
730
188
633
296
344
1,532
1,557
1,863
1,671
1,922
2,340
2,219
2,653
1,905
1,655
1,655
1,615
242,625
242,970
243,349
243,900
244 331
244,331
244,947
245,492
246,053
246,223
246,564
247,146
247,816
294
345
379
551
431
616
545
561
170
341
582
670
1,614
1,850
2,063
1,927
2 278
2,278
2,496
2,543
2,350
2,949
3,173
2,900
2,824
248,074
248,968
249,676
249,872
250,957
251,751
252,316
253,524
254,005
258
894
708
199
1,085
794
565
1,208
481
2,807
2,998
2,205
2,158
2,795
2,620
3,213
3,101
2,429
APPLICATIONS
January
February
March
April
May
June
July
August
September
October
November
December
Attachment: FS for BOD-September 2013-11-18 (2496 : Report on Monthly Financials)
2011
2012
January
February
March
April
May
June
July
August
September
October
November
December
2013
January
February
March
April
May
June
July
August
September
* "Active Accounts" was formerly identifed as "Number of Consumers." Active Accounts are meters and lights only.
** Member count includes inactive memberships holding landlord accounts and pending connections.
Member counts in reports prior to March 2013 did not include such memberships.
Page 1 of 6
Packet Pg. 116
NET MARGIN (LOSS)
$
$
$
$
7,541,361
42,620
569,886
(73,669)
538,837
7,002,524
3,404,395
(163,854)
176
3,240,717
10,243,241
30,405,622
126,944
331,973
2,452,542
1,124,695
2,209,113
226,371
85 833
85,833
2,697,663
3,771,197
567,203
43,999,156
51,139,892
3,102,505
54,242,397
474,891,644
455,918,602
Actual
September 2012
Page 2 of 6
8,433,401
28,154
250,000
(76,777)
201,377
8,232,024
3,389,120
(103,000)
459
3,286,579
11,518,603
34,369,597
67,746
215,880
2,812,749
1,319,143
2,149,907
336,166
93 131
93,131
1,882,126
4,006,179
621,057
47,873,681
56,166,096
3,226,188
59,392,284
573,092,921
536,651,006
MTD
Budget
September 2013
$
$
46,988,105
256,695
611,411
(511,901)
356,205
46,631,900
30,544,087
(1,338,158)
1,372
29,207,301
75,839,201
257,013,128
665,020
1,367,542
20,655,386
8,738,584
19,889,291
2,280,302
644 571
644,571
18,759,144
35,955,912
4,920,877
370,889,757
424,295,186
22,433,772
446,728,958
4,162,407,521
3,880,947,206
Actual
September 2013
$
$
43,348,599
254,786
502,000
(652,189)
104,597
43,244,002
30,791,368
(927,000)
4,471
29,868,839
73,112,841
259,187,389
620,289
1,779,498
25,267,375
11,764,862
20,064,308
3,106,499
807 553
807,553
17,051,301
36,003,611
4,771,061
380,423,746
431,512,410
22,024,177
453,536,587
4,292,782,208
4,014,174,472
YTD
Budget
September 2013
Attachment: FS for BOD-September 2013-11-18 (2496 : Report on Monthly Financials)
5,239,243
28,340
(43,434)
(15,094)
5,254,337
MARGIN AFTER INTEREST
OTHER INCOME (EXPENSE):
Interest Income - Other
Other Capital Credits
Other Income (Expense)
3,389,172
(91,389)
143
3,297,926
INTEREST EXPENSE:
Interest on Long - Term Debt
Interest Charged to Construction
Interest Expense - Other
Interest Expense - Total
33,427,858
82,097
213,723
1,792,322
1,102,493
2,452,334
260,050
72 446
72,446
1,892,392
4,043,105
953,262
46,292,082
52,436,003
2,408,342
54,844,345
8,552,263
$
$
509,149,905
465,116,052
MARGIN BEFORE INTEREST
OPERATING & MAINTENANCE EXPENSES:
Purchased Power
Transmission Operations
Transmission Maintenance
Distribution Operations
Distribution Maintenance
Consumer Accounts
Customer Service & Information
Economic Development
Administrative & General
Depreciation
Tax Expense
Operating & Maintenance Expenses - Total
OPERATING REVENUES:
Sale of Electricity
Other Revenue
Operating Revenues - Total
KWH Purchased (available for sale)
KWH Sold
Actual
September 2013
Income Statement
$
$
47,130,790
485,072
794,458
(512,103)
767,427
46,363,363
30,139,845
(1,141,222)
36,023
29,034,646
75,398,009
250,720,913
754,243
1,532,367
24,662,182
8,897,569
16,943,467
2,617,320
848 104
848,104
21,722,541
33,636,432
4,526,589
366,861,727
420,628,267
21,631,469
442,259,736
4,135,165,848
3,896,024,740
Actual
September 2012
7.A.2.a
Packet Pg. 117
TOTAL ASSETS
$
$
Page 3 of 6
1,454,192,409
93,800,617
4,419,377
98,219,994
1,382,806,679
87,524,184
4,715,702
92,239,886
20,571,565
3,493,965
(1,195,484)
21,465,300
20,908,875
1,371,149
139,216,097
34,215,869
3,392,462
(741,624)
22,075,200
22,819,149
2,438,616
188,136,764
11,375,588
86,919,018
1,137,310,396
129,853,571
1,354,082,985
39,621,497
1,393,704,482
(253,729,374)
1,139,975,108
58,600,727
58
600 727
14,000,000
$
$
December 2012
89,937,092
89
937 092
14,000,000
10,923,064
86,919,018
1,158,151,223
132,238,831
1,377,309,072
53,463,527
1,430,772,599
(273,860,012)
1,156,912,587
September 2013
$
$
71,385,730
6,276,433
(296,325)
5,980,108
13,644,304
(101,503)
453,860
609,900
1,910,274
1,067,467
48,920,667
31,336,365
31
336 365
-
(452,524)
20,840,827
2,385,260
23,226,087
13,842,030
37,068,117
(20,130,638)
16,937,479
$ Variance
Attachment: FS for BOD-September 2013-11-18 (2496 : Report on Monthly Financials)
DEFERRED CHARGES & OTHER ASSETS:
Regulatory Assets
Other Deferred Charges
Deferred Charges & Other Assets - Total
CURRENT ASSETS:
Cash
Short-Term Investments
Accounts Receivable:
Members
Other
Allowance for Uncollectible Accts
Accrued Unbilled Revenue
Materials & Supplies
Prepayments & Other
Current Assets - Total
LONG TERM INVESTMENTS:
Capital Term Certificates & Other
ASSETS
UTILITY PLANT:
In Service:
Transmission
Distribution
General & Electric
Utility Plant - In service
Long-Term Capital Projects
Utility Plant - Total
Accumulated Depreciation
Utility Plant - Net
Balance Sheet
5.16%
7.17%
(6.28%)
6.48%
66.33%
(2.91%)
37.96%
2.84%
9.14%
77.85%
35.14%
53.47%
53
47%
-
(3.98%)
1.83%
1.84%
1.72%
34.94%
2.66%
(7.93%)
1.49%
% Change
7.A.2.a
Packet Pg. 118
41.21%
Equity Capitalization
$
$
38.72%
32.51%
1,382,806,679
151,103,998
1,086,257
152,190,255
24,762,293
41,369,873
3 793 021
3,793,021
7,632,494
4,693,599
12,153,396
94,404,676
80,000,000
22,640,000
358,575,000
225,500,364
686,715,364
9,990,459
439,505,925
449,496,384
December 2012
$
$
71,385,730
5,839,079
1,024,176
6,863,255
320,768
2,591,994
744 119
744,119
97,918
8,013,591
8,758,854
20,527,244
(3,241,194)
(3,241,194)
258,401
46,978,024
47,236,425
$ Variance
Attachment: FS for BOD-September 2013-11-18 (2496 : Report on Monthly Financials)
Page 4 of 6
34.16%
1,454,192,409
Equity as a Percent of Assets
$
156,943,077
2,110,433
159,053,510
DEFERRED CREDITS & OTHER
NONCURRENT LIABILITIES
Postretirement Benefits Obligation
Other Deferred Credits
Deferred Credits - Total
TOTAL EQUITY & LIABILITIES
25,083,061
43,961,867
4 537 140
4,537,140
7,730,412
12,707,190
20,912,250
114,931,920
CURRENT LIABILITIES:
Current Maturities of LTD
Accounts Payable
C
Consumer
D
Deposits
it
Accrued Taxes
Accrued Interest
Other Current Liabilities
Current Liabilities - Total
10,248,860
486,483,949
496,732,809
80,000,000
22,640,000
358,575,000
222,259,170
683,474,170
$
September 2013
LONG-TERM DEBT:
93 Issue - $80m - 2020
95 Issue - $135m - 2015
02 Issue - $450m - 2032
08 Issue - $300m - 2043
Long-Term Debt - Total
EQUITY & LIABILITIES
EQUITY:
Membership Certificates
Patronage Capital
Equity - Total
Balance Sheet
5.16%
3.86%
94.28%
4.51%
1.30%
6.27%
19 62%
19.62%
1.28%
170.73%
72.07%
21.74%
(1.44%)
(0.47%)
2.59%
10.69%
10.51%
% Change
7.A.2.a
Packet Pg. 119
7.A.2.a
Cash Flow Statement
YTD
CASH FLOWS FROM OPERATING ACTIVITIES:
Excess of revenues over (under) expenses
Adjustments to reconcile excess of revenues
over (under) expenses to net cash provided
(used) by operating activities:
Depreciation & amortization
Provision for uncollectible accounts
Deferred charges for postretirement benefits
Postretirement medical benefits paid
Payments to Defined Benefit Plan
Changes in assets and liabilities:
Accounts receivable, net
Accrued unbilled revenue
Materials & supplies
Prepayments & other current assets
Deferred charges & other assets
Accounts payable
Consumer deposits
Accrued taxes
Accrued interest
Other current liabilities
Other deferred credits & liabilities
Net cash provided (used) by operating activities
$
46,988,105
September 2012
$
47,130,790
36,252,237
386,759
12,101,202
(1,162,369)
(5,099,754)
34,055,492
962,171
13,640,235
(1,880,810)
(4,803,876)
(14,383,421)
(609,900)
(1,910,274)
(1,067,467)
(6,276,433)
2,591,995
744,119
97,918
8,013,591
8,758,854
1,024,176
86,449,338
(11,949,684)
(5,306,648)
(11,766,786)
(1,392,946)
(1,127,289)
(8,286,514)
475,960
(503,015)
8,343,511
693,743
(6,487,941)
51,796,393
(52,893,391)
452,524
(52,440,867)
35,050,000
(31,208,284)
(198,239)
3,643,477
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long term debt
Authorized retirement - patronage capital credits
Net increase in membership certificates
Net cash provided (used) by financing activities
(2,920,426)
(10,081)
258,401
(2,672,106)
(28,459)
296,108
267,649
Net increase (decrease) in cash & cash equivalents
Cash & cash equivalents at beginning of period
Cash & cash equivalents at end of period
31,336,365
58,600,727
89,937,092
CASH FLOWS FROM INVESTING ACTIVITIES:
Short-term investments
Net additions to property, plant, & equipment
Capital term certificates & other
Net cash provided (used) by investing activities
Page 5 of 6
Attachment: FS for BOD-September 2013-11-18 (2496 : Report on Monthly Financials)
September 2013
55,707,519
27,861,349
83,568,868
Packet Pg. 120
7.A.2.a
September 2013
Key Indicators & Ratios
YTD
September 2013 September 2012
$
$
$
Members connected
5,239,243 $
9.55%
3,122.90 $
7,541,361
13.90%
3,111.66
$
46,988,105 $
10.52%
25,437.22 $
47,130,790
10.66%
25,370.63
4,466
3,625
44,195
35,069
304.28
14,873.29
2,384.45
17,562.02
304.28
14,826.65
2,301.03
17,431.96
304.28
14,873.29
2,384.45
17,562.02
304.28
14,826.65
2,301.03
17,431.96
Total Active Accounts
254,005
246,223
Total Memberships
216,193
204,611
14.46
14.12
742
730
Total Miles of Line:
Transmission
Distribution Overhead
Distribution Underground
Total Miles energized
Meters per mile
Full time employees
Average bill
Residential
Small Power
Large Power/Industrial
Public
$
$
$
$
185
284
8,039
1,737
$
$
$
$
175
255
6,996
1,271
$
$
$
$
1,344
2,206
61,824
12,595
$
$
$
$
1,350
2,099
61,726
11,155
Revenue per kWh
Residential
Small Power
Large Power/Industrial
Public
$
$
$
$
0.1108
0.1045
0.0846
0.0830
$
$
$
$
0.1092
0.1040
0.0841
0.0838
$
$
$
$
0.1147
0.1069
0.0839
0.0840
$
$
$
$
0.1125
0.1046
0.0821
0.0822
Average kWh usage
Residential
Small Power
Large Power/Industrial
Public
1,669
2,718
95,016
20,937
1,602
2,452
83,167
15,176
11,724
20,632
736,847
149,877
Electrical bad debt write-off
Non-electric bad debt write-off
$
$
267,435
-
$
$
67,041
-
$
$
Power bill invoices paid
Power bill invoices kWh
Cost per kWh
$
30,548,492
509,631,797
0.0599
$
28,295,544
475,435,799
0.0595
$
kWh Purchased (available for sale)
kWh Sold
kWh PEC system use
kWh Line loss
kWh Line loss % (12 month rolling average)
$
509,149,905
465,116,052
481,892
44,033,853
$
474,891,644
455,918,602
544,155
18,973,042
12,001
20,065
751,504
135,722
1,128,620
-
$
$
251,007,858
4,166,582,193
$
0.0602
$
927,570
-
255,476,734
4,237,752,464
$
0.0603
4,162,407,521
3,880,947,206
4,174,672
281,460,315
6.94%
4,135,165,848
3,896,024,740
4,474,954
239,141,108
6.22%
Equity as a % of total assets
34.16%
32.51%
34.16%
32.00%
% Cost of Power to Sale of Electricity Revenue
63.75%
59.46%
60.57%
59.61%
LTD as a % of Total Utility Plant
Debt Service coverage (twelve months ended)
49.52%
51.05%
49.52%
2.11
52.31%
2.23
0.08
4.90
0.06
4.10
0.63
47.20
0.51
40.40
SAIFI
SAIDI
(Forced outages only)
(Forced outages only)
Attachment: FS for BOD-September 2013-11-18 (2496 : Report on Monthly Financials)
Net Margins
Margin as a % of Total Operating Revenue
Total Operating Revenue per total mile of line
MTD
September 2013 September 2012
Page 6 of 6
Packet Pg. 121
7.A.3.a
Safety Department Board Report
October 1, 2012 – September 30, 2013
6DIHW\$FFRPSOLVKPHQWV7UDLQLQJ
This month, PEC offered 29 sessions of the course Fire Safety & Hazard Communication/Globally
Harmonized System (GHS) Update to ensure all employees are knowledgeable in fire prevention,
emergency response in the workplace, and in the Hazard Communication/GHS updates from OSHA.
During the month of October, PEC sent a few of the safety employees to Kentucky to attend the 2013
Incident Prevention Conference. This safety educational conference is among the best in the electric
utilities industry and updates conference attendees on current safety training requirements from OSHA.
The conference provided an opportunity for participants to share experiences, knowledge and expertise
in the field of electric utility safety. PEC Safety Director, Rickie Roy, also had the opportunity to attend
the NRECA Safety Summit in San Antonio, Texas. The annual event brings together decision-makers in
the electric utility industry to evaluate tools, strategies, and best practices to transform safety
performance and culture.
3(&6DIHW\3HUIRUPDQFH
This month starts a new KPI period; we continue to monitor trends and proactively respond to potential
safety hazards at the jobsite and in the workplace in hopes of continued improvement to our safety
performance.
The two standards PEC uses to measure safety performance:
The Total Case Incident Rate (TCIR)
Days Away Restricted Time (DART)
Man-hours worked in October: Average Man-hours worked per month (10/01/2013 – 10/31/2013): Average Recordable injuries/illnesses per month (10/01/2013 – 10/31/2013): 7&,5
7&,5(QGLQJ
7&,5WKUX
7&,57KUX
3(&¶V7&,5*RDO
7RWDO26+$
UHFRUGDEOH
LQMXULHVLOOQHVVHV
Calculated as: Total number of recordable injuries/illnesses x 200,000 / man-hours worked
'$57
7RWDOORVWWLPHDQG
UHVWULFWHGGXW\
LQMXULHVLOOQHVVHV
'$57(QGLQJ
'$57WKUX
'$577KUX
Attachment: Nov CEO_BOD Report CS 2013 (2518 : Corporate Services Report)
In addition, the Electrically-Qualified Safety Instructors presented Pole Top and Bucket Truck Rescue
training to all field operations employees. The training prepared attendees with the skills necessary to
save another person’s life with hands-on learning, in accordance with OSHA standards.
3(&¶V'$57
*RDO
1
Packet Pg. 122
7.A.3.a
Safety Department Board Report
October 1, 2012 – September 30, 2013
2FWREHU6DIHW\,QIRUPDWLRQ<7'
Number of Lost-time Injuries
*All Lost Time Accidents are OSHA Recordable
Other OSHA
Recordable Injuries
Number of Non-Recordable First Aid / Incident
Number of Vehicle Accidents
Number of Employees Trained
*How many individual employees attended training
Number of Training Sessions Held
*How many safety training sessions we provided
Class Attendance
*How many seats were filled throughout all sessions
This Month
Year to Date
This Month
Year to Date
This Month
Year to Date
This Month
Year to Date
This Month
Year to Date
This Month
Year to Date
This Month
Year to Date
2FWREHU0RQWKO\6WDWLVWLFV
/RVW7LPH
None
26+$5HFRUGDEOH,QMXULHV
Employee pulled muscle caused by pulling wire
1RQ5HFRUGDEOH)LUVW$LG,QFLGHQW
Phase to Phase fault resulting in flash to employees face
9HKLFOH$FFLGHQWV
PEC vehicle rear-ended third party in construction zone
PEC vehicle rear-ended third party at traffic light
/
Attachment: Nov CEO_BOD Report CS 2013 (2518 : Corporate Services Report)
Calculated as: Total number of injuries/illnesses that result in Lost Time or Restricted Duty x 200,000
man-hours worked
2
Packet Pg. 123
Completed
Bertram
T362 BR-WS 138kV Line
Blockhouse 138kV Cap
Lehigh T3 Addition
T320 Hwy 32-Wimberley
E. Babe Smith
Purgatory Road Substation
In Design
Dec
10.7
55.8
0.12
92.5
Nov
1.5
49.4
0.03
57
0.09
62.9
57.5
5.4
Jan
0.09
72
62.2
6.8
0.09
88.2
64.6
8.2
May
NEW LINE EXTENSIONS
Circuit Switcher/MLSE
New Barksdale
Bullick Hollow
Leander
Blockhouse
Completed Projects
0.04
95.5
64.3
3.6
Apr
0.09
70.7
63.0
6.6
July
0.04
58.7
61.7
2.4
Aug
0.08
62.3
62.5
4.9
Sep
Design Pending
In Design
Ready to Build
In Construction
YTD Completions
Total Projects
1
12
3
28
37
81
2013 DISTRIBUTION IMPROVEMENT
PROJECTS
0.06
86.3
65.1
5.4
June
Attachment: Operations Summary Report (October) (2494 : Monthly Operations Report)
JANUARY FEBRUARY MARCH
APRIL MAY JUNE
JULY
AUGUST
SEPTEMBER OCTOBER NOVEMBER
432
600
906
771
774
797
825
799
613
715
Blanco
T318 Reroute
T329-T330 Reroute
Mountain Top Bus Upgrade
In Construction
0.05
89.4
61.4
4.6
Mar
RELIABILITY (Forced)
Feb
SUBSTATION CONSTRUCTION PROJECTS
Month
SAIDI (min)
SAIDI, Rolling 12
Month Total (min)
SAIFI
CAIDI (min)
Operations Summary Report
October 2013
Oct
DECEMBER
.10
139.6
72.3
13.4
7.A.4.a
Packet Pg. 124
ERCOT Control Center Activity
0
0
0
0
0
2
2,602
17,473
Member's affected
125
11,334
For the month of October 2013 the outages affected in all 33,575 members.
The total outage time was 2,072 hours, with a member outage time of
59,311 hours.
182
367
Weather
Scheduled
Equipment
Outages
Number of Outages
Top Three Causes
Attachment: Operations Summary Report (October) (2494 : Monthly Operations Report)
Completed annual equipment operational cycling at four [4] substations---Rohr, Rutherford, Sattler and Seward Junction.
Completed Operator lubrication/inspection on fifteen [15] substation distribution breakers.
Completed Operator Maintenance and Insulating Medium tests on seven [7] 138KV breakers.
Completed transformer and circuit switcher maintenance testing at Friendship and Lehigh.
Completed distribution relay calibrations on eleven [11] 25KV breakers.
Performed a complete 138KV Bus Diffential trip check at Fischer.
Unique Events
Advisory for Physical Responsive Capability < 3000 MW
Watch for Physical Responsive Capability < 2500 MW
Level 1 of Energy Emergency Alert (EEA) < 2300 MW
Level 2a of EEA < 1750 MW
Level 2b of EEA < 60 Hz
Level 3 of EEA < 59.8 Hz (Rolling Blackouts)
Note
Of the 2860 poles rejected YTD, only 12
are "Priority Rejects".
Average inspection/treatment cost per
pole is $22.70
Osmose was pulled out of Junction due
to deer season. They are currently
working on GB130 in Liberty Hill.
15.7%
15.3%
Comments
2,860
1,919
Oct.
18,164
Sept.
12,526
Pole Inspection Program
Total Poles Inspected 2014 YTD
Total Poles Rejected
Percentage of Poles Rejected
Operations Summary Report
October 2013
7.A.4.a
Packet Pg. 125
CONFIDENTIAL/CLOSED ITEM
(Page 126 - 133)
CONFIDENTIAL/CLOSED ITEM
(Page 134 - 135)
7.A.4.d
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<HDU
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-DQ
)HE
0DU
$SU
0D\
-XQ
-XO
$XJ
6HS
2FW
1RY
55.6
54.0
52.9
49.8
49.9
48.9
46.6
45.2
46.1
44.0
43.0
38.1
45.0
42.6
43.5
44.0
37.4
39.2
40.6
40.6
41.3
41.4
43.6
38.0
42.8
41.7
45.0
46.9
52.0
51.7
51.1
50.7
49.4
57.5
62.1
61.4
64.3
64.6
65.0
63.0
61.7
62.5
72.3
'HF
44.9
41.3
55.8
80.0
70.0
SAIDI (Minutes)
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Jan
Feb
Mar
2010 SAIDI
Apr
May
Jun
2011 SAIDI
Jul
Aug
Sep
2012 SAIDI
Oct
Nov
Dec
Attachment: SAIDI Indicator for 2012-2013 (2494 : Monthly Operations Report)
The following table and graph indicates the Statistical Interruption Time per Meter
during a rolling 12 month period previous to and including the month indicated.
This is also referred to as the System Average Interruption Duration Index or SAIDI.
The number values represent Interruption Time in Minutes.
The time period is October 1 through September 30 for the actual KPI factor.
Interruptions Exclude Planned, Transmission, Fire Marshall and Major Weather.
2013 SAIDI
Note: Platinum is 45 minutes per meter per year
Gold is 52 minutes per meter per year
Silver is 60 minutes per meter per year
Packet Pg. 136
(QHUJ\8VDJHDQG$YHUDJH7HPSHUDWXUH
5ROOLQJ<HDU&RPSDULVRQ0RQWKO\
700,000,000
100
3(&6\VWHP7RWDON:KQRQELOOLQJGDWD
600,000,000
90
550,000,000
500,000,000
80
450,000,000
400,000,000
70
350,000,000
300,000,000
60
250,000,000
200,000,000
50
150,000,000
100,000,000
40
50,000,000
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Monthly KWH - 11/11 thru 10/12
Monthly KWH - 11/12 thru 10/13
Average Temperature - 11/11 thru 10/12
Average Temperature - 11/12 thru 10/13
Oct
0RQWKO\$YJ7HPS'HJUHHV)-RKQVRQ&LW\
650,000,000
Attachment: Temperature (monthly) October 2013 (2494 : Monthly Operations Report)
7.A.4.e
Packet Pg. 137
40,000,000
10/21/13
10/7/13
9/23/13
9/9/13
8/26/13
8/12/13
7/29/13
7/15/13
7/1/13
6/17/13
160,000,000
$LU7HPS
90
140,000,000
3(&6\VWHPN:K
80
120,000,000
70
60
100,000,000
50
3(&6\VWHPN:K
80,000,000
40
$LU7HPS
30
60,000,000
20
10
$YJ$LU7HPSHUDWXUHGHJUHHV)-RKQVRQ&LW\
180,000,000
110
100
Attachment: Temperature (weekly) October 2013 (2494 : Monthly Operations Report)
:HHN%HJLQQLQJ:LWK
6/3/13
5/20/13
5/6/13
4/22/13
4/8/13
3/25/13
3/11/13
2/25/13
2/11/13
1/28/13
1/14/13
3(&6\VWHPN:K
12/31/12
$LU7HPS
12/17/12
12/3/12
11/19/12
11/5/12
10/22/12
10/8/12
9/24/12
3(&6\VWHPN:KQRQELOOLQJGDWD
7.A.4.f
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Packet Pg. 138
7.B.1
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Attachment: 2014KPIpresentation_nov2014 (2505 : 2013 KPI Results)
PECPerformancefor
PEC
Performance for
October2012– September2013
2013 KPI Plan Results
7.B.1.a
Packet Pg. 141
ч1.0
DaysAwayRestrictedDuty(DART)
•
•
•
•
•
•
ч27
ч2.7
Total Case Incident Rate (TCIR)
TotalCaseIncidentRate(TCIR)
ч.08
ч21
ч2.1
Gold
ч0.66
ч15
ч1.5
Platinum
Attachment: 2014KPIpresentation_nov2014 (2505 : 2013 KPI Results)
Actual: 1.74
Result: Did not meet minimum target (<1.0)
Reason: Slips, trips, and falls
Days Away, Restricted Duty (DART) (10%)
Actual: 2.76
Result: Did not meet minimum target (<2.7)
Reasons: Slips, trips, and falls, strain/sprain injuries
10%
10%
Weighting
Total Case Incident Rate (TCIR) (10% weight)
Silver
Metric
Safety
7.B.1.a
Packet Pg. 142
ч10
ч1.0
SystemAverageInterruption
System
Average Interruption
DurationIndex(SAIDI)
ч 087
ч.087
Gold
ч 075
ч.075
Platinum
20%
Weighting
Attachment: 2014KPIpresentation_nov2014 (2505 : 2013 KPI Results)
System Average Interruption Duration Index (SAIDI) (20%)
• Actual: 1.04
• Result:
R l Did not meet minimum
i i
target (<1.0)
( 1 0)
• Reasons: An increase in the number of weather events.
Silver
Metric
Reliability
7.B.1.a
Packet Pg. 143
•
•
•
•
•
•
ч8.74
ч8.64
ч8.84
ч84
Platinum
10%
10%
Weighting
Attachment: 2014KPIpresentation_nov2014 (2505 : 2013 KPI Results)
Actual: 8.63
Result: Did not meet minimum target (>8.64)
Reasons:. Gap in interaction score during first quarter; affecting average.
Interaction Score (10%)
Actual: 80
Result: Silver
Reasons: The 2013 ACSI Satisfaction Score for PEC remained consistent.
Customer Satisfaction Score (10%)
ч82
ч80
ACSI SatisfactionScore(asreportedin
theTSEServicesResidentialMember
h TSE S i
R id i l M b
SatisfactionTrackingSurveyReport)
InteractionScoresfromTSEServices
ResidentialMemberSatisfaction
TrackingSurveyReport
Gold
Silver
Metric
Member Services
7.B.1.a
Packet Pg. 144
Attachment: 2014KPIpresentation_nov2014 (2505 : 2013 KPI Results)
•
•
•
10%
Uncollectible Accounts Written off as a % of
Operating Revenue (10%)
Actual: 0.09%
Result: Platinum
Reasons: Decrease in Write Offs and an increase in operating revenue.
ч0.18%
10%
Weighting
•
•
•
ч0.22%
Uncollectible AccountsWrittenoffasa ч0.26%
%ofOperatingRevenue
ч $405
ч$405
Platinum
Total Controllable Costs per Meter (10%)
Actual: $397.00
Result: Platinum
Reasons: Decrease in Controllable Expenses and increase in active accounts.
ч $410
ч$410
ч $415
ч$415
Total ControllableCostperMeter
Controllable Cost per Meter
Gold
Silver
Metric
Financial
7.B.1.a
Packet Pg. 145
ч310
ч300
ч320
ч 3 75%
ч3.75%
Platinum
10%
10%
Weighting
Attachment: 2014KPIpresentation_nov2014 (2505 : 2013 KPI Results)
• Actual: 341
• Result: Platinum
• Reasons: Decrease in employees with an increase in number of meters.
Average Meters per Employee (10%)
OT and Double Time as % of Total Hours Worked (10%)
• Actual: 5.76%
• Result: Did not meet minimum target (<5.25%)
• Reasons: Key drivers for increasing overtime included implementation
and support of Enterprise Software System.
ч 4 75%
ч4.75%
ч 5 25%
ч5.25%
OvertimeandDoubleTimeHoursasa
Overtime
and Double Time Hours as a
%ofTotal HoursWorked
AverageMetersperEmployee
Gold
Silver
Metric
Financial
7.B.1.a
Packet Pg. 146
Attachment: 2014KPIpresentation_nov2014 (2505 : 2013 KPI Results)
2013 Payout Percentage
7.B.1.a
Packet Pg. 147
Attachment: 2014KPIpresentation_nov2014 (2505 : 2013 KPI Results)
• Correction to remove eligibly for those retiring in Plan Year
– Remove Double Time Hours from the Total Overtime/Hours worked
Calculation
– Adjust Total Hours Worked to include exempt employees’ hours
– Exclude overtime hours specifically allocated to Enterprise Software
C
Conversion/Improvements
i /
– Increase employees per meter to align with growth projections
– Increased Controllable Costs Per Meter to Reflect the 2014 Proposed
Budget
• Financial
– No Change
• Member Services
– Adjust SAIDI metric to better align with industry standard and performance
• Reliability
– No Change
C a ge
• Safety
2013 – 2014 KPI Plan Recommendations
7.B.1.a
Packet Pg. 148
Attachment: 2014KPIpresentation_nov2014 (2505 : 2013 KPI Results)
NationalSAIDIPerformance
7.B.1.a
Packet Pg. 149
Attachment: 2014KPIpresentation_nov2014 (2505 : 2013 KPI Results)
What Questions do you Have?
7.B.1.a
Packet Pg. 150
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7.B.2.a
KEY
PERFORMANCE
INDICATORS
Pedernales Electric
Cooperative
2014 Plan
Year
Attachment: 2014 KPI_propsed_nov2013 (2508 : 2014 Key Performance Indicators and Methodology)
DRAFT
Approved by Board of Directors
November 18, 2013
Packet Pg. 153
7.B.2.a
Key Performance Indicators
ThepurposeoftheKeyPerformanceIndicators(KPI)istoprovideanobjectivemethodfor
calculatingannualperformanceͲbasedbonusesforallemployees.Thesemeasuresareintendedto
rewardallCooperativeemployeesfortheircontributiontotheCooperative’sgoalsandobjectives
for2013Ͳ2014.
2. Plan Year
TheCooperativemeasurementperiodcoincideswiththeendofthethirdcalendarquarterinorder
toallowtimetogatherneededfinancialdatapriortopresentationtotheBoardforapprovalin
NovemberandtoalignthetwoMemberServicesmetricstothedatesoftheindices.Accordingly,
thePlancalculationperiodwillbefromOctober1,2013,throughSeptember30,2014.Calculation
ofannualperformanceͲbasedbonuseswillbebasedontheachievementofthegoalsapprovedby
theBoardofDirectorsasoutlinedbelow.
3. Safety
Metric
Total Case Incident Rate
(TCIR)
Silver
Gold
Platinum
Weighting
” 2.7
” 2.1
” 1.5
10%
DefinitionandCalculations:
TotalCaseIncidentRate(TCIR)isdefinedasthetotalnumberofOSHAͲrecordableinjuries/illnesses
(collectivelycalled“incidents”)thatoccurredthroughouttheCooperativebetweenOctober1,
2013,andSeptember30,2014.Thismeasureisonlyaffectedbyrecordableincidencesinwhichan
injuryorillnessactuallyoccurred,andisnotaffectedbyothersafetyͲrelatedreportsthatdonot
involveanactualinjuryorillness.Thisindicatoriscalculatedusingthefollowingformula:
TotalNumberofOSHARecordableIncidentsX200,000
TotalHoursWorked
Metric
Days Away Restricted Duty
(DART)
Silver
Gold
Platinum
Weighting
” 1.0
” 0.8
” 0.66
10%
Attachment: 2014 KPI_propsed_nov2013 (2508 : 2014 Key Performance Indicators and Methodology)
1. Purpose and Objectives
2
Packet Pg. 154
DefinitionandCalculations:
DaysAwayRestrictedTime(DART)isdefinedasthetotalnumberoflosttimeandrestrictedduty
injuriesthatoccurthroughouttheCooperativebetweenOctober1,2013,andSeptember30,2014.
Thismeasureisonlyaffectedbyrecordableincidencesinwhichanactualinjuryresultsinlosttime
orrestrictedduty.Thisindicatoriscalculatedusingthefollowingformula:
TotalNumberofLostTime&RestrictedDutyInjuriesX200,000
TotalHoursWorked
4. Reliability
Metric
SAIDI (excluding planned,
transmission, and major
weather events)
Silver
Gold
Platinum
<1.1
< 1.00
< 0.9
Weighting
20%
DefinitionandCalculations:
TheSystemAverageInterruptionDurationIndex(SAIDI)isanindicatoroftheCooperative’sservice
reliabilityasmeasuredbyitsoutagetimebetweenOctober1,2013,andSeptember30,2014.This
indexexcludesplanned,transmission,andmajorweatheroutages.Thecalculationisasfollows:
Sumofallmemberinterruptiondurations
Totalnumberofmembersserved
5. Member Services
Metric
ACSI Satisfaction Score (as
reported in the TSE Services
Residential Member
Satisfaction Tracking Survey
Report)
Silver
Gold
Platinum
Weighting
•80
•82
•84
10%
DefinitionandCalculations:
TheAmerican Customer Satisfaction Index isanindependentreviewof225leading
companiesandthescorereflectsaweightedaveragedesignedtomeasureoverallcustomer
satisfaction,memberexpectations,andactualperformanceinrelationtotheidealutility.Thefinal
calculationfortheperiodbetweenOctober1,2013,andSeptember30,2014is:
2013Q4ACSI+2014Q1ACSI+2014Q2ACSI+2014Q3ACSI
4
Attachment: 2014 KPI_propsed_nov2013 (2508 : 2014 Key Performance Indicators and Methodology)
7.B.2.a
3
Packet Pg. 155
7.B.2.a
Metric
Interaction Scores from TSE
Services Residential
Member Satisfaction
Tracking Survey Report
Silver
Gold
Platinum
Weighting
•8.64
•8.74
•8.84
10%
DefinitionandCalculations:
EachquartertheTSE Services Residential Member Satisfaction Tracking Survey
Report comparesPECresultstoallcooperativesinthebenchmarkstudy(currentlymorethan40
coͲopsin16states).EachquartertheuniqueoverallPECsatisfactionscoreintheoutage,new
service,callcenterandwalkͲincategorieswillbeaveragedforasingle,interactionscore.Thefinal
calculationfortheperiodbetweenOctober1,2013,andSeptember30,2014is:
2013Q4+2014Q1+2014Q2+2014Q3InteractionScores
4
6. Financial
Metric
Total Controllable Cost per
Meter
Silver
Gold
Platinum
Weighting
” $415
” $410
” $405
10%
DefinitionandCalculations:
TheControllableCostsperMetermonitorsthosecostsoverwhichtheCooperativehasthemost
discretionarycontrol.Controllableexpensecategoriesincludedistributionoperations;distribution
maintenance;consumeraccounts;consumerserviceandinformation;economicdevelopment;and
administrativeandgeneralcosts.ThisindicatoriscalculatedfortheperiodfromOctober1,2013,
throughSeptember30,2014,bythefollowingformula:
TotalControllableExpenses
AverageNumberofMeters/Month
Metric
Silver
Gold
Platinum
Weighting
Uncollectible Accounts
Written off as a % of
” 0.26%
” 0.22%
”0.18%
10%
Operating Revenue
Attachment: 2014 KPI_propsed_nov2013 (2508 : 2014 Key Performance Indicators and Methodology)
DefinitionandCalculations:
ThisindicatormeasuresthepercentageoftheCooperative’selectricbillingsthatrelatestomember
accountsthatcannotbecollected.ThisindicatoriscalculatedfortheperiodfromOctober1,2013,
throughSeptember30,2014,usingthefollowingformula:
4
Packet Pg. 156
7.B.2.a
TotalUncollectibleAccountsWrittenOff(lessRecoveries)
TotalOperatingRevenue
Metric
Silver
Gold
Platinum
Overtime Hours as a % of
” 5.25%
” 4.75%
” 3.75%
Total Hours Worked
Weighting
10%
DefinitionandCalculations:
Thisindicatorcomparesthetotalamountofovertimetothetotalhoursworkedduringtheperiod
October1,2013,throughSeptember30,2014.Thismetricexcludesovertimehoursrelatedtoan
EnterpriseSoftwareConversion.Itiscalculatedusingthefollowingformula:
TotalOvertimeHours
TotalHoursWorked
Metric
Average Meters per
Employee
Silver
Gold
Platinum
Weighting
• 320
• 340
• 360
10%
DefinitionandCalculations:
Thisindicatormeasurestheaveragenumberofmetersforeachemployee.Itencouragesprocess
efficienciesandmanagementofemployeeresources.ItiscalculatedfortheperiodfromOctober1,
2013,throughSeptember30,2014,usingthefollowingformula:
AverageNumberofMeters/Month
AverageTotalFullTimeEquivalentEmployees/Month
7. Calculation of Payout
Afterthefinalresultsaregathered,thebonuspercentagetobepaidoutwillbedetermined
multiplyingtheperformancelevelawardvaluebytheweightingofthatindicator.Thefollowingare
theawardvalueforeachperformancelevel:
SilverPerformance 2.0%
GoldPerformance
4.0%
PlatinumPerformance
6.0%
Asanexample,iftheCooperative’sSAIDIis0.74hours/meter,itisconsideredtomeettheplatinum
performancestandardforSAIDI.Thus,theoverallpayoutwouldreceive1.2%forthereliability
metricusingthefollowingcalculation:
Attachment: 2014 KPI_propsed_nov2013 (2508 : 2014 Key Performance Indicators and Methodology)
5
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(PlatinumPerformance)x(weightingfortheSAIDIindicator)
or
6%x20%=1.2%
Allmetricresultswillbetotaledtoobtainthepercentageofthetotalbonus.Thebonuspercentage
wouldbeappliedtototalwages,whichincludesbasepay,overtimeanddoubletimethatwerepaid
fortheperiodofOctober1,2013,throughSeptember30,2014.Noindividualbonusamountshall
exceed$7,500.Tobeeligibleforabonus,anemployeemustmeettwo(2)requirements:(i)be
employedbyPEConthedaytheKPIbonusispaidand(ii)haveworkedanytimeduringtheperiod
fromOctober1,2013,throughSeptember30,2014.
AdditionalFinancialIncentive:
Asanadditionalincentivetoencourageexcellentfinancialperformance,anadditional1%willbe
addedtothetotalpayoutpercentforeachofthefollowingmetricsthatreachtheplatinumgoal:
x
x
Controllablecostspermeter
MetersperEmployee
Thisincentivehaspotentialtoadduptoanadditional2%tothetotalpercentagebonuspayout.
Attachment: 2014 KPI_propsed_nov2013 (2508 : 2014 Key Performance Indicators and Methodology)
7.B.2.a
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