Business Performance and Improvement BUSINESS PERFORMANCE & IMPROVEMENT Rosalia Benanti DISTRIBUTION BUSINESS TEAM LEADER- UTILITY SCORECARD 2015 First Quartile Customer S ervice Performance Measureme nt
Dec 27, 2015
Business Performance and Improvement
BUSINESS PERFORMANCE & IMPROVEMENT
Rosalia BenantiD I S T R I B U T I O N B U S I N E S S T E A M L E A D E R - U T I L I T Y S C O R E C A R D
2015
Firs
t Qua
rtile
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Four Primary Companies
PSE&G (Regulated Electric and Gas Utility)• Customer Operations• Electric Operations• Gas Delivery• DP&C• AMCS• Renewable Energy
PSEG-LI (Regulated Electric Utility–Long Island, NY)
PSEG Power (Non-Regulated Generation Fleet)
PSEG Services Corp. (Shared Services)
PSEG is a publicly traded company (NYSE-PEG)
Fortune 500 Company (#284)
$ 32.5B of assets
$ 10B of revenues
12,000 employees
Nearly 4 million customers in NJ (Electric & Gas)
113 consecutive years of providing dividends
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People providing Safe, Economic reliable Green energy
PSEG Strategy
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PSE&G Performance Measurement Process
Clearly Define Vision and Strategy
Link Metrics, Benchmarking and Targets to Strategy
Link Initiatives andBest Practices
to Execute Strategy
Measure and Communicate Performance
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CEO Review
BU Measure ValidationSC/OC Measure
Alignment
BU Target Setting and SC/OC Alignment
August September October November December
Planning
Gather Input to Compensation
Guidelines
Draft Compensation Guidelines
Gather Input to on “Corporate Metrics”
Corporate Metric
Validation
Corporate Metric Target
Setting
10/14EOG Discussion
10/24EOG
Discussion
1/31Complete
January
11/21EOG
Discussion
Incorporate 2014 Actual ResultsIncorporat
e CEO Feedback 12/21
Communicate Draft Scorecards
2015 Balanced Scorecard T1, T2, T3 and T4 SCORECARDS
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Business Performance & Improvement Group, centrally located in AMCS, produces scorecards for all line of
businesses within PSE&G PSE&G Balanced Scorecards (monthly packages)
• Utility
• Asset Management & Centralized Services
• Customer Operations
• Renewable Energy/Customer Solutions
• Delivery Projects & Construction
• Electric Operations
• Gas Delivery
PSE&G Gas & Electric Peer Panel Premier Benchmark Study
60% Gas Companies40% Electric Companies
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Benchmarking guides our target setting process …
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99
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PSE&G recipient of two 2014
JD Power Business Awards
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Customer Operations has Vertical & Horizontal…
… Alignment with Utility level Compensable metrics
Shared Utility Metric
Compensable Metrics Utility AMCS GD EO DPC CO RESAvailabilty (Part A) X X X X X X XSAIDI X XForced Automatic Outage Rate (Trans) X X X XGas Leak Reports Per Mile X X XDamages per 1,000 Locate Requests X XBPU Inquiries – Non-collections X X X XJD Power Electric (Residential) X X X X XJD Power Gas (Residential) X X X XKey Project Milestone Completion (%)- Crit.Proj. X X X XEnergy Strong Milestones X X X X X
X
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There is Horizontal Alignment and Utility Level Line of SightCompensable Metrics Utility AMCS GD EO DPC CO RES
SAIFI X XProject Cost Schedule Performance X XMOT Survey X X XEnvironmental Audit & Assessment Remediation Rate XTimely Remediation of SOX 404 XGross Inventory Accuracy XLeak Response Rate XFix it Right X% Regulatory Compliance XCAIDI X XPolice & Fire Response Rate XPercent of Actual Meter Reads XChronic No Reads XGeneral Inquiry Abandonment Rate (%) XPaperless Billing (%) X XTVMP Radial Clearance Compliance XProject Estimation Accuracy X% of MGP Remedial Action Milestones Accomplished XDevelopment Milestones Completed XComfort Partners QA/AC Pass Rate XSolar Loan Commitment Letter Cycle Time XActual Renewable Energy Generated. MWH XAnnualized Energy Effi ciency Energy Savings (MWh equivalent) XAS Contract Unit Sales X
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The 2015 Performance Incentive Plan
is weighted towards operational results
With greater weight placed on the Scorecard
COScorecard
90%
StrategicInitiative
10%
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Questions