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Citizens’ AcademyKathy Viehe
GRU Interim General Manager
April 15, 2015
The Basics GRU is a multi-service, community-
owned utility providing electric, water, wastewater, natural gas and telecommunications services
Mission: To provide safe, reliable, competitively priced utility services in an environmentally responsible manner to enhance the quality of life in our community
Core Business Values: Delivering Customer Value through Safety, Efficiency, Environmental Responsibility and Professionalism
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Measures of Success Service reliability compares well
Safe drinking water
Responsive to customers – local call center, employees live here
Natural gas rates among lowest in the state
Electric rates are high, but aggressively pursuing cost reductions and revenue enhancement
Excellent financial standing
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GRU is a Big Business
$413 million annual operating budget
$1.6 billion in assets
$948 million outstanding debt Typical for a generating/multi-service utility
Among the highest bond ratings for municipal utilities from Fitch, Standard & Poor’s, and Moody’s
The Challenge: Electric Rates
How Did We Get Here?
Lower-than-forecast customer growth
Lower-than-forecast electric sales
Loss of wholesale sales Seminole contract
Market sales
Lower energy use in Florida and nationally
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How Did We Get Here? Customer conservation combined with GRU
conservation programs
Federal standards improving appliance efficiency and state building codes
Addition of distributed generation (Solar Net Metering)
Loss of Business Partners’ Rate discount
Increased expenses (O&M, personnel)
Integration of new generation (GREC PPA)
Electric Sales (MWh)
O&M Expenses: Past 10 Years
2015 Business Plan Focuses on three key areas:
Maintaining our financial strength
Providing excellent service
Developing engaged and proficient employees
Major focus on cost containment and increasing revenues South Energy Center expansion
Wholesale sales
Providing new services/products to customers
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Hot Topics
EPA regulation of carbon dioxide
Managing water resources
Regulatory compliance with wastewater standards
General manager search
Carbon Regulation EPA’s proposed “Clean Power Plan” calls for Florida
utilities to reduce carbon emissions by 38 percent by 2030
Concerns among municipal utilities: Technical issues
No credit for previous efficiency and emission control upgrades
Potential effect on customer bills
GRU is tracking the policy’s progress and working with other utilities to express concerns
Water ManagementConsumptive Use Permit
20-year permit approved in September authorizing groundwater withdrawals up to30 mgd, which is the same amount permitted since 2009
Project 25 percent increase in customers over this period
Groundwater withdrawals mitigated due to customer conservation efforts, increased use of reclaimed water and aquifer recharge projects
Wastewater Regulatory Compliance
Biosolids Recycling
Currently converted into fertilizer and applied to a local farm to supplement farming needs
Estimated cost of $23 million to change disposal method to comply with regulations
Dewatering facility under construction
General Manager Search
City Commission interviewed six candidates in late March
Pool narrowed to three finalists during April 2 Commission meeting
Discussions will continue April 16
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UF Energy Supply
GRU provides water and natural gas service to UF
Also provides electricity off-campus, making UF one of our largest customers
UF’s steam agreement with Duke Energy expires soon
GRU stands ready to assist UF with its on-campus electrical needs
Employee Recruitment & Retention
Currently more than 800 GRU employees
Challenges: Many experienced, long-term employees set to retire
Lack of depth in workforce; expectation to do more with less
Goal: Develop and implement ongoing succession-planning
process to address current and future talent needs in order to continue providing safe, reliable service for our customers
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The GRU Bill Can include the following utility services:
Electric Water Wastewater Natural gas
Also can include City of Gainesville services: Stormwater Garbage/refuse
The quiz: How many kWh did you use last month?
Know your bill
Join Our Advisory Committee
New advisory committee to help GRU with customer communication efforts
Accepting applications
Sign up at gru.com/ccag
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Employees: The Core of Our Business “I AM GRU” campaign introduces the community to one of our biggest
assets – our employees Promotes GRU services while encouraging two-way communication Addresses four Business Plan priorities: improve customer trust, adapt to
customers’ changing demands, reduce electric system revenue requirements and improve employee engagement
Questions?