SAFETY PERFORMANCE GOALS YEAR TO DATE 0 Zero Recordable - - PowerPoint PPT Presentation
SAFETY PERFORMANCE GOALS YEAR TO DATE 0 Zero Recordable Incident Rate OBJECTIVE 0 1 TARGET 2.0 PROJECTION PROJECTION PROJECTION PROJECTION OBJECTIVE 0 2 TARGET Electric System >= $155MM $ 226.4 MM Liquidity TARGET
OBJECTIVE 01
TARGET YEAR TO DATE
2.0 Zero Recordable Incident Rate
OBJECTIVE 02
TARGET
Electric System Liquidity >= $155MM $226.4MM
TARGET
>= 3.6% 3.2%
TARGET
<= 63% 62%
TARGET
>= 1.80X 1.96X Consolidated Return On Net Assets Consolidated Debt To Plant Ratio Consolidated Debt Service Coverage
PROJECTION PROJECTION PROJECTION PROJECTION
OBJECTIVE 03
TARGET
Retail Operating Ratio ‐ Adjusted <= 114% 109%
TARGET
<= 100.0% N/A
TARGET
>= AA3
(Moody's equivalent)
AA3 "Peer Group of Excellence" Rate Index Ratio District Credit Rating
PROJECTION PROJECTION PROJECTION
OBJECTIVE 04
TARGET
Average System Availability Index (ASAI) >= 99.97%
99.99%
TARGET
< 150 min 122 MIN
TARGET
>= 85% TBD
TARGET
12/12 Mo's 10/12 Mo's Customer Average Interruption Index (CAIDI) Retail Customer Satisfaction Survey PRP Total Availability
YEAR TO DATE PROJECTION PROJECTION YEAR TO DATE
OBJECTIVE 05
BY ATTAINING ENVIRONMENTAL, CULTURAL RESOURCE AND REGULATORY COMPLIANCE
TARGET
Financial Statement Audit Performance Unqualified Audit Opinion
TBD
TARGET
WA State Audit Office Compliance Audit Performance No Audit Findings No Audit Findings Zero Violations Zero Late Filings
TARGET
FERC / NERC / WECC Electric Reliability Compliance Performance
NO
TARGET
Safety, Health, Cultural Resource and Hazardous Material Performance
YES
TARGET
Timeliness of All FERC and Regulatory Filings
YES TBD
PROJECTION PROJECTION PROJECTION YEAR TO DATE YEAR TO DATE
OBJECTIVE 06
TARGET PROJECTION
>= - 4.1 %
Return on Invested Capital
PROVIDE LONG TERM LOW RATES
OBJECTIVE 03
PROVIDE OUTSTANDING SERVICE TO OUR CUSTOMERS
OBJECTIVE 04
OPERATE RESPONSIBLY
by Attaining Environmental, Cultural Resource and Regulatory Compliance
OBJECTIVE 05
DEVELOP A SUSTAINABLE BROADBAND NETWORK
OBJECTIVE 06
SAFETY PERFORMANCE GOALS
OBJECTIVE 01
MAINTAIN A STRONG FINANCIAL POSITION
OBJECTIVE 02
2018 INTERIM TARGETS
2018 TARGET Electric System Liquidity Consolidated Return On Net Assets Consolidated Debt To Plant Ratio Consolidated Debt Service Coverage >=$155 MM >= 3.6% <= 63% > 1.80X $226.4 MM 3.2% 62% 1.96X Average System Availability Index (ASAI) Customer Average Interruption Index (CAIDI) Retail Customer Satisfaction Survey PRP Total Availability >= 99.97% < 150 MIN >= 85% 99.99% 12/12 Mo's 122 MIN TBD 10/12 Mo's Financial Statement Audit Performance WA State Audit Office Compliance Audit Performance
FERC / NERC / WECC Electric Reliability Compliance Performance Safety, Health, Cultural Resource & Hazardous Material Performance
Timeliness of All FERC and Regulatory Filings
UNQUALIFIED AUDIT OPINION NO AUDIT FINDINGS NO AUDIT FINDINGS ZERO VIOLATIONS ZERO LATE FILINGS
TBD TBD NO YES YES Retail Operating Ratio ‐ Adjusted "Peer Group of Excellence" Rate Index Ratio District Credit Rating <= 114% <= 100.0% >= AA3
(Moody's equivalent)109% N/A AA3 >= -4.1%
Zero Recordable Incident Rate 2.0 PROJECTED Return on Invested Capital
Powering our way of life.
Operate Responsibly by Attaining Environmental, Cultural Resource and Regulatory Compliance
Grant PUD Commission Meeting December 11, 2018
The Fish and Wildlife Business Unit uses technology, innovation, strategic thinking, good stakeholder relations and skilled negotiations to ensure we are achieving compliance with our Natural Resources regulatory requirements in a safe, cost efficient and biologically sound manner while helping to maintain the long-term financial health of the District.
No Recordable Incidents during Q1-Q4 - 2018; A total of 437 Job Briefs (as of 11/26/18); A total of 66 Job Site Reviews (as of 11/26/18); Goal =10%. Currently at 13.4%; Overall Safety Meeting Attendance = 100%. Fish & Wildlife Business Unit has completed reviewing and updating 5 Job Hazard Assessments (JHAs) for critical tasks during 2018;
25.0% 8.0% 10.5% 8.9% 24.4% 35.5% 16.0% 16.0% 8.3% 13.5% 26.7% 13.4%
10% 30% 50% Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov TOTAL
Job Site Reviews – Updated 11/26/18
File Boundary Adjustment for Nason Creek Acclimation Facility with FERC (On Hold); File twenty-eight annual reports and plans with various agencies; Completed, Submitted or in Consultation
FERC)
File thirteen reports related to mitigation sites;
Priest Rapids Project FERC License
NMFS 2008 Biological Opinion WADOE 401 Certification USFWS 2008 Biological Opinion Hanford Reach Fall Chinook Protection Program Priest Rapids Salmon and Steelhead Settlement Agreement
Successful implementation of first 10 years of FERC License Achieved juvenile steelhead performance standards (>86.5%). Standards have also been achieved for yearling Chinook, sockeye and coho; Reached long-term agreement with Yakama Nation and Priest Rapids Coordinating Committee on coho and performance standard schedule for above species (5 to 10 years); Reduced No-Net-Impact (NNI) Fund Contributions by $403,420.40 annually for the term of the license for achieving steelhead standards; 10 year agreement reached with Priest Rapids Fish Forum on Adult Pacific Lamprey NNI; Wanapum Food Fish Bill signed by Governor Inslee. Allows Wanapum to fish for other freshwater food fish for ceremonial and subsistence purposes.
Finalized 10 year Total Dissolved Gas Compliance Report and secured approval from Washington Department of Ecology; Achieved Hatchery Production requirements by releasing ~8.3 smolts; Developed Facility Use Agreements (FUA) and Interlocal Agreements that require users of District facilities to adhere to the District’s Safety and Security requirements. FUA’s also include a fee reimbursement structure for materials, directs and labor. Reduced frequency of white sturgeon natural production monitoring; Implemented Vegetation Management Program Draft Northern Wormwood Conservation Plan (in consultation); Successfully implemented a LEAN Initiative (FW Warehouse)
2018 Allocated Resources
Staffing – 15 FTRs & 10 FTEs
Budget
$12,911,095
$563,180
$1,972,625 2018 Total Budget $15,446,901
Net Decrease from 2017 = 1.0%
Operations and Maintenance = 83.6% Labor = 12.8% Cap = 3.6%
Category Budget Actuals ($) For Month Ending 10/31/18 Year-End Projection ($) Year-End Projection (%) O&M $12,911,096 $8,167,343 $12,947,248* 100.3% Capital $563,180 ($137,345) $700,525** 124.4% Labor $1,972,625 $1,580,319 $1,731,278*** 87.7% Total $15,437,352 $9,610,317 $15,379,051 99.6%
*Projected to be overspent by ~$37K. Overspending was due to outstanding costs associated with the 2017 survival evaluation. The District received 2 invoices from the vendor for acoustic tags. **Projected to be overspent by $137,345. A majority of the overspending is directly related to contractual requires per the hatchery sharing agreement with DPUD (Wells Modernization). ***Underspent due to the time required to backfill FW Specialist Positon. Also labor savings realized with reduce effort necessary to count fish and reduced overtime usage.
Develop a cost-effective and biologically sound approach to achieve No-Net- Impact for summer subyearling Chinook (Reduce or Eliminate NNI Contributions & Modify Survival Evaluation requirements 2020, 2021 & 2022);
Present proposal to PRCC to recalculate the NNI fund for summer subyearling Chinook; Present proposal to PRCC to defer summer subyearling Chinook to out years due to technology and life history strategies; Explore other means to achieve summer subyearling requirements (hatchery, habitat, concrete only evaluations, etc.)
Evaluate potential cost-effective and biologically sound strategies to control costs for hatchery operation, maintenance, monitoring and evaluation programs (primarily PR Hatchery);
Analysis is substantially complete and MAY illustrate a cost savings. FW staff developing a memo discussing potential strengths, weakness, opportunities and threats (SWOT);
Complete engineering alternatives analysis and develop the necessary permit level designs to address Carlton Acclimation Facility Intake Structure issues.
Summer Chinook Acclimation Facility – Methow River. ~182K summer Chinook are acclimated overwinter at this facility River channel is migrating away from facility intake.
Evaluate Priest Rapids Hatchery well field and develop a recommendation/plan
Fall Chinook Facility – 5.6 million for the District and 1.7 for US Army Corps of Engineers Three of the eight wells were inoperable during a majority of the timeframe when the Priest Rapids reservoir was operated at lower elevations as required for Priest Rapids Spillway work/evaluation
Ensure that safe measures and fixes are completed at the Priest Rapids Hatchery; Engage members of the Priest Rapids Fish Forum to address outstanding stocking rates for juvenile white sturgeon; Develop strategy for hatchery recalculation (2023); Develop cost effective and biological strategy to address future requirements related to the White River Spring Chinook supplementation program (2026); Develop and implement strategy for ensuring that avian predation outside the project area is addressed by federal entities; Revegetate areas affected by the fires in 2018 (e.g. Airstrip site by Vantage).
Powering our way of life.
Quarter 4 Commission Update 12/11/18
Powering our way of life.
potential effects of the PR right bank project on the Wanapum Indian Village.
review.
2018 Budget Actuals - 10/30 Q3-YEP CAP $ 90,000 $0 $0 O&M $ 1,147,065 $884,547 $ 1,016,529 Labor $ 1,914,797 $1,255,848 $1,586,083 OT $ 41,200 $36,349 $44,337 2018 Labor Budget Actuals - 10/30 Q3-YEP Regular $ 1,155,590 $796,743 $996,364 Other $ 718,007 $422,756 $545,381 OT $ 41,200 $36,349 $44,337
Properties Management Plan. Because the resources are in the MOP zone, there is essentially no additional burden related to management costs.
District PA for Cultural Resources that was initiated on license issuance.
technician to help organize the language program curriculum.
They’ll be working with the museum traditional program.
federal agencies regarding mitigation of project-related adverse effects to archaeological sites and Traditional Cultural Places.
the configuration of the earth fill and the Milwaukee railroad bed.
8
Corporate Governance in the Public Sector
Laurie Tish Partner Moss Adams LLP December 11, 2018
Agenda
and responsibilities
Corporate Governance
Risk Management for the Board and Audit Committee
“Risk management is a dynamic process, a chain
stakeholders in a company – from board members to management to employees on the front line.”
Corporate Board Member Magazine
3 What are the Risk Management Fundamentals?
RISK
Risk is the uncertainty that is inherent in the range of possible outcomes (losses or gains) which occur as a result of the choices and decisions required throughout an extended enterprise.
RISK MANAGEMENT
Mechanism that creates stability in the organization by enabling the identification, prioritization, mitigation and measurement of the implications of each decision.
INTERNAL CONTROL
A process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives
* Internal Control – Integrated Framework, Committee of Sponsoring Organizations (COSO) of the Treadway Commission
4 What are the Types of Risk?
Financial – primarily relate to risks and activities that impact the
reliability of financial statements, financial reporting disclosures and other financial impacts
Operational – primarily relate to risks and activities that impact the
efficiency and effectiveness of business operations
Compliance – primarily relate to risks and activities that impact
adherence to applicable laws and regulation
Strategic – primarily relate to risks and activities that impact the
achievement of an organizations business objectives. Often neglected area of risk, with potential for high return
* Internal Control – Integrated Framework, Committee of Sponsoring Organizations (COSO) of the Treadway Commission
5 How Do You Protect & Create Stakeholder Value?
Extended Enterprise Risk Management Strategic Economic Insurance Business Process Culture Capital Markets/Treasury Risk Market Risk, Liquidity Risk Analytics & Modeling Credit Analytics Property, Casualty, Liability Risk Management Multi-line, Multi-risk Insurance Products Operations Compliance Financial Internal Control Profit Recovery Corporate Ethics Physical & Information Security Alliances Regulatory Strategy, Goals, Mission, Objectives Joint Ventures, Outsourcers, Third Parties Federal, State and County Regs Asset Protection Corporate Compliance Operational Risk Management Financial Operational Compliance Strategic
6 Risk Management Architecture
Validation, Challenge, Assurance, & Support Consulting Support Internal Audit CORPORATE GOVERNANCE Operations ~ Business Unit Management Teams Risk Based Decision-Making, Business Planning & Capital Allocation Risk Aggregation, Monitoring & Reporting
Priority Risk Issues & Mitigation Plans Risk & Control Self-Assessment Performance Indicators/Risk Metrics
Foundation / Infrastructure: Systems, Processes, Policies, Procedures Corporate Risk Monitoring
Senior Management
Risk management
7 Risk Management Spectrum
Board/ Audit Com m ittees should evaluate the profile of their organization against a spectrum of risk m anagem ent criteria
well as oversight of business risk
respond to crisis situations
effectiveness of risk management efforts
auditors regularly
timely manner
business, trends and recommended corporate governance practices
business risks and rewards
understood
and other executive committees that detail their responsibilities
directors
STRONG BASELINE WEAK
8 Risk Management for the Board and Audit Committee
“The audit committee should understand the corporation’s risk profile and oversee the corporation's risk assessment and management practices.” The Business Roundtable Principles of Corporate Governance
9 Internal Control and Compliance Considerations
Objectives: 1. Transactions are properly recorded and accounted for to –
disposition
10 Internal Control and Compliance Considerations (continued)
Com ponents:
discipline and structure.
achievement of it’s objectives, forming a basis for determining how risks should be managed.
directives are carried out.
information in a form and time frame that enable people to carry out their responsibilities.
Internal Control and Compliance Considerations (continued)
– Revenues, Cash Receipts and Receivables – Cash Disbursements, Expenses, Liabilities – Treasury and Investments – Utility Plant and Capital Assets – Payroll – Budget – General Computer Controls (access, change management, security)
– Pertinent operating systems – Federal or state/local grantor requirements – Contracts, laws, lease and other agreement requirements
12 Board/ Audit Committee Roles and Responsibilities
management oversight:
Board/ Audit Committees Roles and Responsibilities (continued)
net earnings and financial reporting
– Liquidity and going concern – Disclosure adequacy – Specific financial statement risk – Materiality – Changes in internal control – Unusual transactions – Related-party transactions
14 Board/ Audit Committees Roles and Responsibilities (continued)
– Management’s tone at the top – Risk areas – Challenge estimates and judgments – Changes in the business environment – Critical accounting principles – Unrecorded audit adjustments – Related parties and disclosures – Financial statement users – High-quality reporting – Understand and provide oversight in “gray” areas of accounting and reporting
15 The Board and Audit Committee should ensure they are asking the right questions related to risk management efforts within the
and risk management? How is your strategic environment changing?
managed and what, if any, modifications in strategic direction should be adopted?
various types of business risk (e.g., strategic, operational, financial, reputation)?
performance?
Audit Committee ~ Are You Asking the Right Questions?
“With integrity
rising shareholder expectations, companies are fine-tuning their risk- monitoring systems and boards are more accountable than ever.” Corporate Board Member Magazine
16 Best Practices for Commission Consideration
responsibilities are covered by the Commission as a whole to perform the following functions:
– Oversee the accounting and financial reporting processes – Oversee the audits of financial statements – Input to appointment and oversight of the auditing firm
auditor, and internal auditor
and the appropriate accounting treatment for significant transactions and revenue recognition pertinent to their industry; develop thorough understanding of issues
antifraud measures
17 Questions?
Laurie Tish, Partner National Practice Leader, Government Services Moss Adams LLP
laurie.tish@mossadams.com
18 Powering our way of life.
Commission Presentation December 11, 2018
Operating Unit Vision & Top 5 Goals:
1. Customers, employees & policy leaders understand what the utility is doing and why. 2. We have a clear, unified & powerful voice in local, regional & national forums. 3. We know how a key issue impacts the PUD & its customers with data, research & analysis. 4. We are focused on the highest value work. 5. Grant PUD is widely recognized as a trusted & reliable “go-to” utility leader (Vision).
Operating Unit Goals align/support GCPUD Strategic Plan Objectives.
relationships and performance with customers and stakeholders.
trends, and effectiveness of ongoing strategies and tactics.
PUD to focus future efforts on the highest valuable work to narrow and eliminate identified gaps.
Tasks Description 1. Project Preparation Design action plan, calendar, methodology & participants. 2. Focus Interviews (internal) Interviews w/ a cross-section of District staff – Gather understanding of customers and business issues (5 total). 3. Focus Interview (external) Interviews w/ cross-section of customers and stakeholders (12 total). 4. Assessment Design Based on focus interviews, design “gap assessment” questionnaire of 15-20 questions (plus 2-3 open ended). 5. Interview Administration Conduct individual telephone interviews w/ a cross-section of customers and stakeholders (60-65 total). 6. Data Analysis BBI compiles and analyzes the data. 7. Findings & Next Steps Present summary of findings and next steps.
Four point scale.
relationships in recent years.
distinguishing characteristics of Grant performance.
Speed of action, timeliness of responses not matching expectations.
“In the past, our relationship involved more contact with service reps. It'd be nice for them to actually set up appointments to check in. They have employees specifically focused on industrial customers, but it’d be nice even if they simply came to ask, ‘Are we meeting your needs? Is there anything we can do for you? Do you have incentives we can help you with?’ If we reach out, they do get back, but we used to have a monthly meeting with them. Even if it's quarterly or semi-annually, it would be appreciated.”
“For the most part, I'm extremely satisfied with the PUD; they do a damn good job. They’ve
be better follow-through.” “I enjoy having a locally-operated PUD that provides reliable, inexpensive electrical power to our county, our businesses, and our farmers. Please keep up the good work. We need to move forward together.” “The PUD is super-responsive. We work well together, and they're very timely and give us really good service. In general, the folks we work with at the PUD are open-minded and really professional, and we appreciate our agreements and partnerships with them. Our working relationship has been great this last year.” “Getting back to us a little faster with the engineering and countermeasure for power outages would be good. Their response time [needs improvement]. Many places would say that [the current response time] is good, but for us, being a large power consumer, improved response time would always be good.”
from PUD.
Speed of responsiveness, inconsistent messaging
“The [other] issue they should focus on is communications. I'm fairly active in the community, and most people have no idea what the PUD does or how they do it. Their communication is not as effective as it could be. It's not because they don't try, but because people just don't pay attention until they're ticked off about something. They should better communicate the PUD's agenda and emphasize the positive things they do for the community before someone's mad at them.”
“I don't think there's any way to improve things. They're doing a hell of a job right now. We communicate all the time. That's different than in the past; if you had asked me three years ago, you would have gotten a completely different report. But now, they do a great job
been doing.” “I’d like to have clear and consistent messages about interests throughout and across the
sometimes: "Is this what you mean?", "Is this where you're going?", "Is this what you're looking for?" Drawing out the answers is harder than it should be. You eventually get their messaging, but I have to work for it harder than I do with other utilities.” “Their internal communication needs to improve. They're doing better, but we speak with several different levels at the PUD, from the director down to maintenance staff, and sometimes they don't all have the same message or, frankly, know what each other is doing. They need to figure
procedures they need, but anecdotally I’ve heard that it's frustrating to some PUD employees, too.”
average.
use are on many participants’ minds.
Meeting decarbonization goals Rate affordability vs. demands of growth Tension between emerging vs. historical businesses.
“Their Rate Equalization Process will be their big challenge. They're going to need to find a little more of a balance between the rate
inequities whereby in some cases they probably went a little further than was necessary in lowering rates. They've already addressed some of those issues and are gradually equalizing [rates]. I think that will be a continuing concern for all of their classifications of rate payers.”
“We have a number of challenges in the region with hydropower. Their big issue is going to be protecting the dams. Let me put it that bluntly: They need to make sure that the existing hydro power infrastructure is protected.” “They should focus on getting the statewide carbon and renewable energy policies correct. I really appreciate Grant County PUD's forward-looking orientation as a utility. I appreciate how they embrace the future and find win-win solutions for the region that also work for their
the work they do.” “[Grant County PUD should] continue to exert its leadership role in public policy issues affecting the entire region. Renewable portfolio standards (RPS) and the Columbia River Treaty are two example topics that stand out.” “The PUD continues to get beat up on any rate increases or who’s paying what in these different
season, and it's just baffling how many people don't really know how good they have it, and how good this PUD is.”
development.
hydro industry and look for greater opportunities to provide leadership.
customer groups.
and employees
employees with the same consistent messages about PUD policy.
policy.
preferences can be considered in policy development.
Powering our way of life.