FY 2011 Budget Workshop April19, 2010 1 April 19, 2010 Draft - - PowerPoint PPT Presentation

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FY 2011 Budget Workshop April19, 2010 1 April 19, 2010 Draft - - PowerPoint PPT Presentation

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FY 2011 Budget Workshop April19, 2010 1 April 19, 2010 Draft Budget Workshop Agenda Management Introduction Financial Highlights Administration Highlights Energy Resource Planning Highlights Engineering &

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April 19, 2010 Draft Budget Workshop 1

FY 2011 Budget Workshop April19, 2010

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April 19, 2010 Draft Budget Workshop 2

Agenda

  • Management Introduction
  • Financial Highlights
  • Administration Highlights
  • Energy Resource Planning

Highlights

  • Engineering & Operations Highlights
  • Customer Resource Highlights
  • Workshop Recap
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April 19, 2010 Draft Budget Workshop 3

Management Introduction

(Girish Balachandran)

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April 19, 2010 Draft Budget Workshop 4 Purpose Statement: Increase value to Alameda by providing safe, reliable, cost-effective, and environmentally responsible electricity

RATES RELIABILITY RESOURCES WORKFORCE

S t r a t e g i e s Strategies Strategies Strategies

Metrics Metrics Metrics M e t r i c s

CUSTOMER/COMMUNITY VALUE AND SATISFACTION

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April 19, 2010 Draft Budget Workshop 5

Ten Strategies Approved

1. Re-focus on the core electric business via developing a new corporate identity and renewing partnerships with the City Council, customers, workforce and industry partners. 2. Ensure utility financial health is preserved through short and long- term risk management and planning. 3. Attract and retain an effective workforce that is appropriately aligned, well trained, equipped with the right tools and technology, and properly recognized. 4. Utilize policies and procedures that allow for superior customer satisfaction and workforce effectiveness. 5. Continue to add value to the community through the General Fund transfer and other means. 6. Implement energy efficiency, renewable power and customer service programs to increase customer satisfaction. 7. Set rates to meet environmental, reliability, community and fiscal health

  • bjectives while being equitable for all

customer classes. 8. Plan for the long-term reliability of utility distribution system assets while ensuring that annual operations and maintenance are implemented. 9. Endeavor to maintain local control

  • ver utility programs including energy

efficiency, renewable power and distribution system standards.

  • 10. Manage short-term and long-term

power supply reliability and cost, while maintaining a loading order of efficiency and demand response, renewable energy resources, and clean and efficient fossil generation.

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April 19, 2010 Draft Budget Workshop 6

How do we prepare to address Critical Issues, Threats and Opportunities?

  • Build on the positive work of the past

several years

  • Continue strengthening the foundation
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April 19, 2010 Draft Budget Workshop 7

Essence of the January Presentation

  • Strengthening the Foundation
  • Plan for future needs – Rates
  • Remaining telecom issue - Litigation

2010 Theme

Strengthening the Foundation

2009 Theme

Transition the Business 2007-08 Theme

Telecom Focus
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April 19, 2010 Draft Budget Workshop 8

34 PUB Comments Summarized in 6 areas

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April 19, 2010 Draft Budget Workshop 9

Long Term Drivers

  • Purchased Power costs are projected to increase
  • Capital and equipment costs are projected to

increase

  • Labor, service, material, and other direct costs, are

projected to increase

  • Reserves need to be funded at levels to cover

foreseeable risks

  • Revenues need to be sufficient to cover costs in

compliance with bond requirements, and good business practices

  • Increasing costs affect cash-on-hand
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April 19, 2010 Draft Budget Workshop 10

Revenue requirements increasing

KEY DRIVERS Power and transmission costs are projected to increase as new resources are obtained, and new load requirements are fulfilled. Capital and equipment costs are projected to increase as infrastructure ages, and new technology requirements are implemented Labor, service, material, and

  • ther direct costs, are

projected to increase as economic conditions improve. Reserves are needed to cover foreseeable risks. Bond requirements and good financial practices.

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April 19, 2010 Draft Budget Workshop 11

Example of Cost Increases

In 10 years, total costs are about $14.8 million (28%) greater than today, with power cost being almost 70% of the increase

Cost Category $000 Increase from FY 2011 to FY 2020 % of Increase FY 2011 to FY 2020 Power Costs 10,099 $ 68.05% Labor 2,240 $ 15.09% Debt Service 1,499 $ 10.10% Capital and Equipment 634 $ 4.27% Material and Services 334 $ 2.25% Other 35 $ 0.24% Total 14,841 $ 100.00%

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April 19, 2010 Draft Budget Workshop 12

Financial Highlights

(Robert Orbeta)

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April 19, 2010 Draft Budget Workshop 13

Budget Policy Highlights

  • Policy is periodically reviewed and approved by the Board
  • The General Manager submits to the Board a proposed operating

budget…which includes proposed expenditures and the means of financing them.

  • Ratepayer comments are solicited during regular Board meetings
  • The budget is legally enacted through passage of a resolution.
  • Formal budget integration is employed as a management control

device during the year.

  • Budgets are adopted on a basis consistent with generally accepted

accounting principles, except that AMP budgets capital asset outlays as current year expenditures.

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April 19, 2010 Draft Budget Workshop 14

General

  • The draft budget assumes the Board will approve rate

adjustments prior to the start of the fiscal year.

  • Purchased Power costs are identified in NCPA’s draft

FY 2011 budget.

  • This is the last year that AMP will receive funds from the

2000AT bond.

  • Staffing levels are reduced and will be aligned to the

functional needs of the organization.

  • The 5-year CIP plan has been incorporated.
  • The draft budget “passes” all compliance tests.
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April 19, 2010 Draft Budget Workshop 15

FY 2011 Financial Summary

$ 368,600 $ 287,000 Reserve Spending $ 54,937,690 $ 57,386,190 $ 55,013,640 $ 53,406,080 $ 3,812,040 $ 3,883,080 AT Proceeds $ 19,849,110 $ 17,114,660 Operating Expense $ 3,173,000 $ 3,778,230 Capital Projects & Eqpt $ 26,907,470 $ 32,869,200 Purchased Power $ 50,833,000 $ 49,236,000 Total Revenue ($ 3,544,550) ($ 3,044,550) Non-Cash Items $ 75,950 ($ 3,980,110) Net Adjustment $ 997,500 $ 974,000 Reserve Funding $ 7,555,500 $ 5,694,650 Non-operating Expense FY 2011 Budget FY 2010 Budget

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April 19, 2010 Draft Budget Workshop 16

Electric - FY2011 Budget Co mparis io n to FY2010 Budget (Excluding Depreciatio n)

$ 4 3 ,2 5 6 ,5 8 0 $ 10 ,4 4 6 ,8 8 0 $ 11,7 2 5 ,7 10 $ 4 9 ,2 3 6 ,0 0 0 $ 5 0 ,8 3 3 ,0 0 0 $ 4 6 ,9 8 3 ,8 0 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 FY2 0 10 FY2 0 11 FY2 0 10 FY2 0 10 FY2 0 11 FY2 0 11

Revenue Operating Expense Non-operating & Capital work

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April 19, 2010 Draft Budget Workshop 17

Revenue

  • The draft budget reflects that “rate adjusted”

Revenue will be sufficient to meet expenses.

  • There is a shortfall of funds in the 2000AT due

to current interest rate levels. AMP will provide the trustee with cash to make-up the shortfall.

  • The trustee is expected to have ~$3,812,040

available for the last NCPA payment.

  • AMP will spend ~ $368,600 from existing
  • Reserves. ($226,900 for 2000AT shortfall and $141,700 for

UUD work).

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April 19, 2010 Draft Budget Workshop 18

Operating Expenses

Purchased Power & Operating Expenses Budget for FY2011 = $ 43,256,580 (excluding depreciation)

$3,253,390 $3,439,260 $7,422,010 $32,869,200 $26,907,470 $4,231,800 $3,776,475 $8,340,835

  • 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000

Purchased Power Distribution & Maintenance Customer Accounts & Sales Administrative & General

2010 2011

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April 19, 2010 Draft Budget Workshop 19

Operating Expense

  • The draft budget reflects that Purchased Power costs will

decrease by $5,961,730.

  • “Labor” refers to the AMP workforce, “Service” refers to

contracted labor and contractor supplied materials, and “Material” refers to AMP purchased equipment, tangible goods, and miscellaneous items.

  • The draft budget reflects that O&M expenses will increase by

$978,410 primarily due to work priority changes.

  • The draft budget reflects that Customer Account expenses will

increase by $238,515 primarily due to increases in energy efficiency and computer upgrades.

  • The draft budget reflects that Sales expenses will increase by

$98,700 due to increased customer programs.

  • The draft budget reflects that Administrative & General

expenses will increase by $918,825 due to reduced expense transferred to capital projects as a result of work priority changes.

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April 19, 2010 Draft Budget Workshop 20

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April 19, 2010 Draft Budget Workshop 21

Purchased Power Costs

  • Purchased power costs are not final due to

NCPA adjustments.

  • NCPA geothermal debt defeasance has reduced

purchased power costs by ~ $4,800,000.

  • Sales are expected to be 0.5% less than last

year and reflect approved Load Forecast values.

  • NCPA SCALD, and other management services,

have been reduced by ~ $600,000.

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April 19, 2010 Draft Budget Workshop 22

Expenditure make-up

FY2011 Budget (Draft) Expenditure = $54,937,690

$8,797,940 , 16% $7,424,720 , 14% $11,807,560 , 21% $26,907,470 , 49% Labor Service Material Purchased Power 2010 = 56% 2010 = 16% 2010 = 11% 2010 = 17%

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April 19, 2010 Draft Budget Workshop 23

Budgeted Staffing

S taff Po s itio ns b y B ud g e t Ye ar 95 97 96 95 103 110 113 116 109 103 96 95 95 91 9 8 13 20 23 26 33 28 23 23 95 97 105 103 116 130 136 142 142 131 119 118 95 91

20 40 60 80 100 120 140 160

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Electric Telecom Total

Budget Includes 1 FTE Reduction 3 Additional FTEs To Be Incorporated

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April 19, 2010 Draft Budget Workshop 24

Non-operating and Capital Cost

Non-operating Revenue/Expenses, Capital Projects, Equipment Budget for FY2011 (Net) = ($ 11,725,660)

$(974,000) $(3,778,230) $(2,411,500) $(4,075,550) $- $792,400 $(3,173,000) $(997,500) $316,340 $(2,411,500) $(4,068,000) $(1,392,000)

(5,000,000) (4,000,000) (3,000,000) (2,000,000) (1,000,000)

  • 1,000,000

2,000,000

Interest Income & Other Debt Related Charges Pilot / ROI / GF Transfer One Time ROI Catch- Up Reserves Funding Capital Project & Equipment

2010 2011

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April 19, 2010 Draft Budget Workshop 25

Non-Operating Expense

  • The draft budget reflects that Interest Income will

decrease by $482,700.

  • The draft budget reflects that there is a one-time catch

up ROI payment of ~$1,392,000.

  • The only Reserve funding will be $997,000 for future

UUD work.

  • The draft budget reflects that planned Capitalized

Work decreased by ~ $605,000.

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April 19, 2010 Draft Budget Workshop 26

City Related Contributions & Expenses

$ 1,392,000 $ 0 One time catch up ROI $ 68,000 $ 94,250 Sewer & garage fees $ 1,268,000 $ 1,275,000 PILOT / ROI $ 2,800,000 $ 2,800,000 General Fund Transfer $ 155,700 $ 152,600 City direct cost $ 6,754,400 $ 5,373,750 Total Payments $ 250,000 $ 250,000 Insurance-P&L $ 191,200 $ 184,700 Rent–warehouse, Etc. $ 629,500 $ 617,200 City cost allocation FY 2011 FY 2010 Budget Budget

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April 19, 2010 Draft Budget Workshop 27

Payments to City’s General Fund

  • Four types of cash flows to General Fund

– PILOT (payment in lieu of taxes) – ROI (return on investment) – General Fund Transfer – City direct and cost-allocated charges

  • PILOT and ROI are fees levied against AMP’s audited fixed assets

by the City

– Both PILOT and ROI are senior to debt service on the COP’s

  • General Fund charter transfer is subordinate to COP’s

– FY 2010 transfer is set at $2.8 million per Board resolution

  • Annual combined General Fund transfer and PILOT / ROI total

about 8% of operating revenues (Peer group utilities are at ~ 6% of

  • perating revenues for General Fund transfers)
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April 19, 2010 Draft Budget Workshop 28

Existing COP Debt Structure

  • AMP has two rated COP issues secured by net

revenues of the electric system

– $29.5 million taxable variable rate COP’s – $9.545 million in tax exempt fixed rate COP’s

  • Principal amortization on both issues begins in 2011,

with final principal maturity in 2030

  • Taxable variable rate COP is fixed rate through an

interest rate swap through July 1, 2010

– This issue is an ARS with an MBIA policy – Cost to AMP is currently 150 basis points over the synthetic fixed rate

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April 19, 2010 Draft Budget Workshop 29

Debt Service on COPs

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April 19, 2010 Draft Budget Workshop 30

Direct and Indirect Debt Service

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April 19, 2010 Draft Budget Workshop 31

Sources of Investments

Sources of Investments as of February 28, 2010

$13,055,824 $1,613,387 $1,200,000 $1,000,612 $650,000 $613,360 $423,759 $10,375,023 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 $13,000,000 $14,000,000 Balancing Account Operating Funds Underground District Reserve Insurance Reserve Major Contingencies Reserve Operating Contingency Reserve Solar PV Rebate Reserve Competitive Pricing Reserve

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April 19, 2010 Draft Budget Workshop 32

Administration

Finance & Accounting Utility Information Systems Meter Reading Support Services (Robert Orbeta)

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April 19, 2010 Draft Budget Workshop 33

Finance & Accounting Work Plan Highlights

  • Participate in refinancing of the Series 2000A/AT

bonds including team assembly.

  • Assist new Auditor during interim and final audit.
  • Initiate discussions on Balancing Account in

preparation of refinancing.

  • Implement Laserfiche document handling.
  • Implement Cayenta 7.5 Upgrade.
  • Training @ 40 hours / person.
  • Policy and procedure reviews.
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April 19, 2010 Draft Budget Workshop 34

Utility Information Systems Work Plan Highlights

  • Implement High Volume Phone Relief System
  • Computer / IT upgrades.
  • Municipal Area Network (MAN) Switch Replacement
  • Implement Cayenta 7.5 Upgrade.
  • Training @ 40 hours / person.
  • Policy and procedure reviews.
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April 19, 2010 Draft Budget Workshop 35

Meter Reading Work Plan Highlights

  • Fill vacant position and train new personnel.
  • Perform succession planning.
  • Route review and analysis.
  • Training @ 40 hours / person.
  • Policy and procedure reviews.
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April 19, 2010 Draft Budget Workshop 36

Support Services Work Plan Highlights

  • Coordinate with LEED consultant.
  • Develop Central Substation transition plan

and Service Center yard enhancements.

  • 2000 Grand building upgrades including

painting and carpeting.

  • Implement Laserfiche document handling.
  • Training @ 40 hours / person.
  • Policy and procedure reviews.
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April 19, 2010 Draft Budget Workshop 37

Energy Resource Planning

(Janis Pepper)

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April 19, 2010 Draft Budget Workshop 38

Energy Resource Planning Division: FY 11 Goals

Strengthening the Foundation by:

  • Developing 10 year financial pro forma model,

and evaluating impact of alternative cost and revenue scenarios, including rate proposals

  • Implementing rate adjustment

– Performing updated Cost of Service Analysis

  • Updating long-term load forecast

– Performing End-Use Survey

  • Developing integrated energy resource plan,

including greenhouse gas and renewable portfolio goals

  • Evaluating opportunities for monetizing AMP’s

renewable energy credits

  • Developing multi-year scenario analysis of

power portfolio options, including addition of local generation

  • Assisting in development and incorporation of

energy efficiency goals into resource plan and load forecasts

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April 19, 2010 Draft Budget Workshop 39

ERP Workforce Development and Training: FY 11 Plans

  • Goal is for each member of the ERP

group to spend the equivalent of 1 week in training or at conferences

  • To facilitate extra learning, each

member of the group will share what they learned with other members of ERP and others at AMP who are interested

  • Organize ERP background materials to

enhance the group’s “library”

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April 19, 2010 Draft Budget Workshop 40

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April 19, 2010 Draft Budget Workshop 41

Power Cost Projections

Power costs are projected to increase over $10 million by 2020, making up 70% of expected cost increases due to:

  • Replacement of Morgan

Stanley contract in 2015

  • Increasing transmission

costs

  • Projected increases in

load

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April 19, 2010 Draft Budget Workshop 42

Components of Power Costs: Transmission

Transmission costs will rise from 16% of average power costs in FY 11 ($4.36 million) to 22% by FY 2016 ($6.27 million), and are expected to double by 2020.

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April 19, 2010 Draft Budget Workshop 43

Engineering & Operations Division

FY 2010/2011 Work Plan

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April 19, 2010 Draft Budget Workshop 44

E&O Major Work Categories

  • Safety & Compliance

– Public and Workplace Safety – Employee Health – Environmental Compliance – E&O Design Standards & Work Procedures

  • Reliability

– Preventive / Corrective Maintenance – Capital Asset Management

  • New Business

– New / Upgrade Electric Service – Work Required by Others, i.e Relocation of Facilities

  • System Enhancement

– Increase / Upgrade Facilities – Underground Districts

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April 19, 2010 Draft Budget Workshop 45

Labor Hours by MWC

2009 Results 2010 Planned

New Business 16% Reliability 56% Safety 8% System Enhancement 20% Reliability 31% New Business 11% System Enhancement 19% Safety 39%

Strengthen the Foundation

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April 19, 2010 Draft Budget Workshop 46

E&O Division: Work Plan Highlights

  • Significant increase in safety and compliance program initiatives

– Design, Operating and Work Procedures developed or revised – In-house development and delivery of effective training programs – Injury & Illness Prevention Program manual revision – Emergency Management Plan continues enhancement

  • Reliability initiatives right sized

– 5-year cycle of Distribution, Substation Inspection, Patrol and related maintenance – Annual cycle of Transmission Inspection & Maintenance

  • New Business

– Responsive service to residents and developers

  • System Enhancement

– Smart Grid: Developing the Foundation – Underground District continuous improvement

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April 19, 2010 Draft Budget Workshop 47

E&O Division Organization Objectives

  • Alignment

– Clarify roles & responsibilities – Weekly Job Scheduling: Plan - Prioritize - Accomplish – Clear lines of progression – Effective supervisory span of control

  • Attrition

– Continue Apprentice Programs; and enhance Electric Maintenance Tech & Lineworker Programs

  • Development: Education and Training

– Health & Safety awareness and refresher training – Technical: Design, Operating and Work Procedures – Leadership & Supervisory

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April 19, 2010 Draft Budget Workshop 48

E&O Organizational Plans

Positions to be recommended for Deletion

  • (1) Line Working Supervisor
  • (1) Utility Construction Foreperson
  • (1) Meter Service Technician (re-classify to EMT)
  • (1) Safety Officer (re-classify to Asst Line Supt)

Positions to be recommended for Creation

  • (1) Electric Maintenance Technician
  • (1) Asst Line Superintendent w/ Safety & Compliance responsibilities

Position to be recommended for Upgrade

  • (1) Distribution Engineer to Electrical Engineer

Positions recommended to be Underfilled;

  • (2) Lineworker; underfill with Helper or Apprentice Lineworker
  • (2) Electric Maint Tech (EMT); underfill with Helper or Apprentice EMT

Vacant Positions recommended to be filled:

  • (1) Asst Line Supt w/ System Dispatch and Field Service responsibilities

E&O Headcount reduced by 4 (Budget includes 1 FTE reduction. 3additional FTE reductions to be incorporated into final budget.)

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April 19, 2010 Draft Budget Workshop 49

Capital Infrastructure Program

  • 5 Year Summary
  • FY2010/2011
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April 19, 2010 Draft Budget Workshop 50

CIP No. Program Description MWC 2010-11 2011-12 2012-13 2013-14 2014-15 Total Comments 1 Installation of Smart Grid in AMP Distribution System System Enhancement $238,700 $200,000 $500,000 $500,000 $2,000,000 $3,438,700 Communication & Control; Substations; Feeders; Customer Meters. Total buildout of Smart Grid Program is 10 years and $18.5 Mil 2 Distribution System Capacity & Load Balancing System Enhancement $0 $200,000 $0 $100,000 $0 $300,000 System Studies to be performed bi-annually. Identified needs performed the following year 3 12kV Substation Switchgear Upgrade System Enhancement $144,400 $144,000 $144,000 $144,000 $144,000 $720,400 4 Circuit Breakers per year, total replacements required is 20 circuit breakers 4 Install 12kV Loop to Coast Guard Island System Enhancement $0 $195,600 $1,150,000 $0 $0 $1,345,600 Design and permit in year 1; procure and construct in Year 2 5 Replace 12kV O/H in High Vegetation Areas Reliability $116,700 $125,000 $0 $0 $0 $241,700 Re-arrange high maintenance overhead lines in rear easements 6 Replace Historical Street Lights Reliability $324,700 $350,000 $350,000 $350,000 $350,000 $1,724,700 50 lights per year, outsource construction 7 115kV Meter Replacement System Enhancement $25,000 $25,000 $0 $0 $0 $50,000 Replace meters at transmission interconnection points per NCPA proposal 8 Replace Reclosers and Controls Reliability $27,100 $0 $0 $0 $0 $27,100 Replace oil filled reclosers with vacuum bottle reclosers and digital controls 9 Alameda Point System Enhancement System Enhancement $309,100 $200,000 $0 $0 $0 $509,100 Reinforce 12 and 4kV primary systems and retire 6 substations and all retired 12kV equipment 10 Utility Underground Districts System Enhancement $141,700 $1,500,000 $50,000 $1,500,000 $0 $3,191,700 Assume a 2-year cycle per utility district; 1 year for design & bid, 1 year for procure and construct Totals - Project $1,327,400 $2,939,600 $2,194,000 $2,594,000 $2,494,000 $11,549,000 11 New Business - Residential New Business $208,000 $180,000 $150,000 $180,000 $200,000 $918,000 12 New Business - Commercial/Indust New Business $270,200 $225,000 $250,000 $270,000 $300,000 $1,315,200 13 Transmission Reliability $142,000 $25,000 $25,000 $25,000 $25,000 $242,000 Replacement of deteriorated equipment found during circuit cleansing and patrols 14 Overhead Distribution Reliability $80,500 $40,000 $40,000 $40,000 $40,000 $240,500 Replacement of deteriorated equipment found during circuit cleansing and patrols 15 Underground Distribution Reliability $54,700 $60,000 $60,000 $60,000 $60,000 $294,700 Replacement of deteriorated equipment found during circuit cleansing and patrols 16 Poles Reliability $102,500 $100,000 $100,000 $100,000 $100,000 $502,500 Replacement of deteriorated equipment found during circuit cleansing and patrols 17 Cable Reliability $81,000 $100,000 $100,000 $100,000 $100,000 $481,000 Replacement of deteriorated equipment found during circuit cleansing and patrols 18 Transformers Reliability $116,700 $150,000 $150,000 $150,000 $150,000 $716,700 Replacement of deteriorated equipment found during circuit cleansing and patrols 19 Substations Reliability $125,800 $120,000 $120,000 $120,000 $120,000 $605,800 Replacement of deteriorated equipment found during inspections 20 Street Lights Reliability $38,200 $38,200 $38,200 $38,200 $38,200 $191,000 Replacement of deteriorated equipment found during inspections Totals - BWO $1,219,600 $1,038,200 $1,033,200 $1,083,200 $1,133,200 $5,507,400

CIP Totals - Outside Plant

$2,547,000 $3,977,800 $3,227,200 $3,677,200 $3,627,200 $17,056,400

Programs - Outside Plant

Contingency

Programs - Blanket Work Orders

5-Year CIP Program Summary

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April 19, 2010 Draft Budget Workshop 51

5-Year Program Summary-Cont.

Programs - General Plant

Utility Information Systems

CIP No.

Program Description 2010-11 2011-12 2012-13 2013-14 2014-15 Total MAN (Municipal Area Network) $16,000 $16,000 $16,000 $16,000 $116,000 $180,000 Hardware and Software Systems $62,000 $22,000 $22,000 $22,000 $22,000 $150,000 Communication Systems $115,000 $70,000 $40,000 $25,000 $20,000 $270,000 Totals - Information Systems $193,000 $108,000 $78,000 $63,000 $158,000 $600,000

Support Services Section

CIP No. Program Description 2010-11 2011-12 2012-13 2013-14 2014-15 Total Office Building Renovation $264,000 $50,000 $0 $20,000 $0 $334,000 Service Center Yard $0 $105,000 $30,000 $0 $0 $135,000 Warehouse Equipment $0 $45,000 $0 $0 $0 $45,000 Substation Renovations $0 $0 $0 $0 $35,000 $35,000 Stores / Meter Reader / Pool Vehicle Replacement $25,000 $0 $90,000 $0 $90,000 $205,000 Totals - Support Services $289,000 $200,000 $120,000 $20,000 $125,000 $754,000

Totals - General Plant

$482,000 $308,000 $198,000 $83,000 $283,000 $1,354,000

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April 19, 2010 Draft Budget Workshop 52

Annual CIP Project Summary FY10/11

Outside Plant CIP No. Program Description Project Description MWC Total Loaded Cost UEL-2011-92xx Installation of Smart Grid Systems

SCADA Fiber Trunk Redonfig & Meter Station Redundancy

System Enhance 169,200 $ UEL-2011-92xx Installation of Smart Grid Systems SCADA RTU Upgrade Phase 2 System Enhance 69,500 $ UEL-2011-91xx 12kV Substation Switchgear Upgrade Replace (4) Air Circuit Breakers w/Vacuum Reliability 144,400 $ UEL-2011-91xx Replace 12kV O/H in High Vegetation Areas Replace 12kV in Rear Easements Reliability 116,700 $ UEL-2011-91xx Replace Historical Street Lights Replace Deteriorated Historical Street Lights Reliability 324,700 $ UEL-2011-91xx 115kV Meter Replacement Replace meters at interconnects per NCPA System Enhance 25,000 $ UEL-2011-91xx Replace Reclosers and Controls Replace controls on R-5 System Enhance 27,100 $ UEL-2011-92xx Alameda Point System Enhancement 12 & 4kV Reinforce, Substation Retirement System Enhance 309,100 $ UEL-2011-94xx Utility Underground Districts UUDxx System Enhance 141,700 $ Subtotal - Outside Plant Capital Projects 1,327,400 $ Blanket Work Orders (Capitalized) CIP No. Program Description Project Description MWC Total Loaded Cost UEL-2011-93xx New Business: Residential Customer Connections New Business 208,000 $ UEL-2011-93xx New Business: Commercial/Industrial Customer Connections New Business 270,200 $ UEL-2011-81xx Transmission Replace Transmission equipment Reliability 142,000 $ UEL-2011-82xx Overhead Distribution Replace miscellaneous Overhead equipment Reliability 80,500 $ UEL-2011-83xx Underground Distribution Replace miscellaneous Underground Equipment Reliability 54,700 $ UEL-2011-84xx Poles Replace Poles Reliability 102,500 $ UEL-2011-85xx Cable Replace Distribution Cable Reliability 81,000 $ UEL-2011-86xx Transformers Replace Transformers Reliability 116,700 $ UEL-2011-87xx Substation Replace Substation equipment Reliability 125,800 $ UEL-2011-88xx Street Lights Replace Deteriorated Street Lights Reliability 38,200 $ Subtotal - Blanket Work Orders (Capitalized) 1,219,600 $

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April 19, 2010 Draft Budget Workshop 53

Annual CIP Project Summary FY10/11 (Cont.)

General Plant-Information Systems CIP No. Program Description Project Description MWC Total Loaded Cost MAN (Municipal Area Network) Switches lifecycle replacement / upgrade 16,000 $ Hardware & Software Systems

Workstation hardware and operating system upgrades

22,000 $ Hardware & Software Systems Electronic time entry system / payroll system 35,000 $ Hardware & Software Systems Mobile Tablet PC's for Harris mCARE 5,000 $ Communications Systems Mitel full IP & related phone system upgrades 75,000 $ Communications Systems Alameda Pt copper plant infrastructure upgrade 40,000 $ Subtotal - General Plant Information Systems 193,000 $ General Plant-Support Services CIP No. Program Description Project Description MWC Total Loaded Cost Office Building Renovation Carpet replacement 160,000 $ Office Building Renovation Interior painting 35,000 $ Office Building Renovation Install Fire Suppression in Computer Room 19,000 $ Office Building Renovation LEED Certification 50,000 $

Stores / Meter Reader / Pool Vehicle Replacement

Replace 1 Pick Up Truck 25,000 $ Subtotal - General Plant Support Services 289,000 $ 1,327,400 $ 1,219,600 $ 193,000 $ 289,000 $ 3,029,000 $ TOTAL - OUTSIDE & GENERAL PLAN PROJECTS Subtotal - Outside Plant Capital Projects Subtotal - Blanket Work Orders (Capitalized) Subtotal - General Plant Information Systems Subtotal - General Plant Support Services

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SLIDE 54

April 19, 2010 Draft Budget Workshop 54

CUSTOMER RESOURCE DIVISION

Customer Service Customer Resource Communications Energy Efficiency

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SLIDE 55

April 19, 2010 Draft Budget Workshop 55

Customer Resource Division Objectives

The Customer Resource Division will continue to be customer-focused, responsive, and quality-driven. AMP customers will have a broad range of choices for conducting business with the organization; including more Internet options that will allow for secure transactions from the customer’s home at any time of day. Direct customer feedback will shape our planning efforts and our responsiveness. Our measure of success will be the sustained high satisfaction level of our customers and our ability to respond to their needs and concerns.

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SLIDE 56

April 19, 2010 Draft Budget Workshop 56

Customer Service Unit Work Plan Highlights

  • Implement advanced online self-service applications
  • Conduct payment analysis, develop plan and

increase online bill payments

  • Conduct medical program bi-annual audit
  • Evaluate write-off procedures
  • Conduct customer satisfaction survey
  • Develop customer service procedures manual
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SLIDE 57

April 19, 2010 Draft Budget Workshop 57

Customer Resource Unit Work Plan Highlights

  • Implement Key Account Program and Key Account

Master Database/Customer profile analysis

  • Provide “one stop shop” for energy efficiency rebate

program

  • Implement online commercial newsletter pilot
  • Manage DOE EECBG Grant projects and reporting
  • Enhance commercial website section
  • Evaluate EDID objectives and program
  • Develop Electric Vehicle program audit procedures

and conduct audit

  • Develop educational workshops
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SLIDE 58

April 19, 2010 Draft Budget Workshop 58

Communications/Public Relations Work Plan Highlights

  • Develop and implement branding and a

marketing, strategy, campaign, and collateral with Ad agency.

  • Enhance website (Phase 2)
  • Conduct quarterly employee events
  • Develop a communications manual
  • Identify and implement improved outage

communication

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SLIDE 59

April 19, 2010 Draft Budget Workshop 59

Energy Efficiency (EE) Work Plan Highlights

  • Evaluate existing energy efficiency programs
  • Identify, evaluate, and implement financing programs and

alternatives

  • Promote customer education EE programs
  • Conduct Evaluation, Measurement, and Verification of EE
  • Evaluate new technology and implement new EE programs
  • Administer APPA Deed Grant Funding
  • Manage DOE EECBG Projects (AUSD, City, Energy Audit

Training program)

  • Participate in cross-departmental Local Climate

Action Plan

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SLIDE 60

April 19, 2010 Draft Budget Workshop 60

PERSONAL DEVELOPMENT & TRAINING

General Training

  • AMP
  • Industry
  • Networking Opportunities
  • Technology
  • Customer Service

Personal Training

  • Computer Applications
  • Leadership & Teamwork
  • Data Analysis
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SLIDE 61

April 19, 2010 Draft Budget Workshop 61

Workshop Recap

(Girish Balachandran)

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SLIDE 62

April 19, 2010 Draft Budget Workshop 62

Essence of the January Presentation

  • Strengthening the Foundation
  • Plan for future needs – Rates
  • Remaining telecom issue - Litigation

2010 Theme

Strengthening the Foundation

2009 Theme

Transition the Business 2007-08 Theme

Telecom Focus
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SLIDE 63

April 19, 2010 Draft Budget Workshop 63

Budget - Next Steps

  • Rate Presentation planned for regular meeting of the Public

Utilities Board tonight, April 19

  • Public Utilities Board provides final comments on draft budget

by May 07

  • Submit the budget, with all supporting documentation and

resolutions for approval, by June 17

  • Present Rate recommendation & adoption resolution at the

regular meeting of the Public Utilities Board on June 28

  • Present the budget recommendation & adoption resolutions at

the regular meeting of the Public Utilities Board on June 28

  • Implement the approved rate schedules and FY 2011 budget

beginning July 1