New Service DeliveryPresented by Milton Russell

Scope Team Members

Training Methodology

Project Start DateMay 25, 2005

New Service Delivery

New Service Delivery Scope

Beginning: Customer (builder, developer, home and commercial owner, contractor, etc…) contacts CPS Energy for new service (electric and/or gas service).

 Ending: Customer receives CPS Energy

services through gas/electric meter.

New Service Delivery Scope

(cont.)Included in Scope:• Distribution system electric and/or gas only• Residential subdivisions Overhead (OH) and Underground Residential

Distribution (URD) • Residential single family/multi-family dwellings, • Commercial developments OH and Underground (UG)• Mobile home lots• Streetlights installed as part of residential subdivisions. Not included in Scope: • Customers with existing services from CPS Energy• Civic and System improvement projects• Overhead to underground conversions• Transmission projects• Downtown network projects• Maintenance and Repair of existing infrastructure

Team Members

• Julius Moore – Team Leader– Years: 10– Area: Transmission Planning/Underground Engineering

• Duane Dugie – Years: 29– Area: Customer Coordination/ EDS East

• Mark Barth – Years: 34– Area: Large Commercial Planning

• Hubert Friesenhahn – Years: 24– Area: Underground Cable Splicer/EDS East

• Floyd Haman:– Years: 23– Area: Underground Electric Distribution (UED)/EDS West

• Charlie Martinez– Years: 28– Area: Overhead Construction/EDS West

Team Members (cont)

• Jeanine LaRocque – Years: 23– Area: Administration/EDS East

• Karrie Satcher – Years: 5– Area: Purchasing/Contract Services

• Steve Blain– Years: 10– Area: Subdivision Planning

• Curt Alexander – Years: 13– Area: Gas Marketing

• Milton Russell – Years: 14– Area: Underground/EDS East

Team Members (cont)

• John Harnsberry– Years: 1 – Background: HR and Training– Note: recruited from outside of CPS Energy

• Glenn Frerich– Years: 28– Area: Underground Energy Distribution– Note: Glenn replaced Floyd Haman in March 2007

TOTAL YEARS OF EXPERIENCE ON THE TEAM: 243 Years

The NSDR Team received the following Training

1. Work Style Inventory2. Myers-Briggs Type Indicator (MBTI)3. Accelerated Process Improvement 4. Guiding Team Performance5. Influencing Without Authority6. Business Process Reengineering7. The New Leadership8. Change Management9. Process Design & Implementation 10. Essential Facilitation11. Fish Training12. Give’em the Pickle13. The Leadership Pickles14. The Fred Factor15. 11th Annual Lean Management Conference

NSD Redesign ApproachReengineering approach

Key Activities Decision Points

Project Planning

Learning / Current State Assessment

Solution Design

Solution Development

Implementation

Continuous Improvement

Business Case Development

Project Approval

Business Case Approval

Full DeploymentApproval

Deliverables

Project plan

Benchmarking findings Customer and employee dataTechnology reviewsCurrent process definition

Solution design

Cost and benefit analysisGap analysis Business case

Implementation planDetailed requirementsChange management planOperational transition planPilot results

Performance resultsOngoing measurement

Business Case Approval *

* Large projects may require several stages of business case review

Key Activities Timeline

• Current State Assessment – November 2005• Conceptual Solution Design – December 2005• Business Case approved - March 2006• Design NSD Facility – July 2006• Detailed Solution Development – December 2006

– Web Portal– Job Status Display Screen – Front Lot Construction standard change – Developer responsible for all utility coordination– Employee Selection for Pilot– WMIS Task Structure Changes

• NSD Pilot Training - November 2006 to January 2007• NSD Pilot – March 2007 to September 2007• Implementation – October 2007 and beyond

BUSINESS PROCESS MODEL

NEW SERVICE DELIVERY TEAM

MARKET CUSTOMER

CUSTOMER APPLICATION DESIGN

INSTALLATION

INFORMATIONDEVELOPMENT

Gather applicable information for the initiation of the w ork

request and establish the needs of both the Customer and CPS

Energy.Technology:

E-mail, Instant Message Tool, SAP, WMIS, Web Portal, Obvient

(forecast scheduling), GIS

PLAN, DESIGN & MATERIAL

RESERVATIONPlan, design and coordinate infrastructure, facilities and

materials to manage and fulf ill the needs of the customer.

Technology:E-mail, Instant Message Tool, WMIS, GIS, Designer, Obvient, GPS (hand held design tool)

CONSTRUCTION FOR NEW SERVICE

DELIVERYConstruct and install CPS

Energy's infrastructure and facilities to meet the

Customer's need by date.Technology:

E-mail, MDS, Instant Message Tool, WMIS Obvient, GPS, GIS

Pre-design meeting

w ith CPS Energy & Developer / Customer

CONSTRUCTION COORDINATION, ALLOCATE RESOURCES & SCHEDULING Allocate and schedule the resources needed (manpow er, equipment & materials) for the installation

of CPS Energy's infrastructure and facilities to meet the Customer's need by date.Technology:

E-mail, SAP, WMIS, Obvient, GIS, Instant Message Tool

InternetCPS Energy Internet, E-builder, Telecomm,

E-mail

CPS Energy Internet, E-builder, Telecomm, E-mail

CPS Energy Internet, E-builder, Telecomm,

E-mail

CPS Energy Internet, E-builder, Telecomm,

E-mail

SAP, WMIS, Obvient, GIS WMIS, Obvient, GISSAP, WMIS, Obvient, GIS

Simple Service

WMIS, Obvient,

GIS

WMIS, Obvient

, GIS

ENABLERS(Team Support)

Sub-processes not included in the core process of NSD, but provide the support

needed to make possible the

performance of delivering new

service.Technology, Purchasing, IT, Stores, Fleet, Training,

Engineering, Telecommunications, Human Resources,

Budget Coordination, Process Improvement,

Addressing, Standards, City Entities, Gas

Marketing, Retail Energy, etc.

SR VP Energy

Delivery ServicesAl Lujan

NEW SERVICE DELIVERYProcess OwnerRon Schaefer

NEW SERVICE DELIVERYLeadership Team

NSDSubdivision

Team

Representationfrom:

Subdivision Planning,Gas & ElectricConstruction(7-8 People)

NSDResidential

Team

Representationfrom:

Residential,Gas & ElectricConstruction(7-8 People)

NSDCommercial

Team

Representationfrom:

Commercial, Large Commercial Planning

Gas & ElectricConstruction(7-8 People)

ENABLERS

(Team Support)

CUSTOMERS

NSDAccelerated

ServiceTeam

Representationfrom:

Customer Coordination,Gas & ElectricConstruction(7-8 People)

NSD Pilot Details

Front Lot Construction

Advantages• Cost Savings utilizing front lot• Reduce time frame of construction• Shorter service length • Easier access for Transformer • Simplified and Streamlined platting

process• Reduces the amount of service re-

routes

Front Lot Construction (cont)

Advantages• Use fewer, but larger Capacity

transformers (Not Physical Size)– Reduces conflict with other construction– Improves Aesthetics– Transformer Study

• Eliminates the need for future alleyway repairs that occur with rear lot construction

• Supports tree preservation ordinance– Fewer trees destroyed or disturbed – Transformer Shared across two property Lines

Front Lot Construction (cont)

Advantages• Reduced outage time to customer

– Crews do not disturb customer during outages– Customer can see crews working

• Less cost for future encroachment– Removes encumbrance of customer’s backyards

• Transformer shared across two property lines where applicable

Developer Installed

InfrastructureThe Process

– The Developer’s contractor that installs sewer and water can also trench and install the infrastructure conduit for electric and gas*.

– The Developer’s engineer is now the Joint trench coordinator for all utilities. (AT&T, Time Warner, Grande Communication, Guadalupe Valley)

* If on CPS Energy’s approved contractor list.

Developer Installed

Infrastructure (cont)

Advantages to Developer• Decreased time between the installation

of wet and dry utilities.• Developer controls their timeline up to

the point of pulling cable and setting transformers.

Developer Installed

Infrastructure (cont)

Advantages to CPS Energy• Now we are focusing on CPS Energy’s

core business; energy delivery • No longer acts as the project manager

for the Developer. That responsibility is now with the Developer’s engineer.

• No longer responsible for coordinating pre-construction meetings.

All-in-One Meter Main

Advantages to the Developer and/or CPS Energy

• Safety– Eliminates temporary meter pole– Eliminates conduit and cable running across yards

and streets– No exposed service entrance conductors– Reduced customer complaints on Temporary Meter

Loop removal (TML)

• Reduced Timeline– One trip at the beginning of project– Should cut construction time for developers due to

availability of power– Eliminate coordination to install and remove

temporary meter loop

All-in-One Meter Main (cont)

Advantages to the Developer

and/or CPS Energy• Cost Savings

– Expedites service installation– Reduces Builder’s cost– Less permits– Cost of permanent vs. temporary to final equipment cost– Reduce number of turn downs due to poor construction– Initiating 1 work order vs. the potential of 4– 1 piece Module Meter

Additional Initiatives

• Elimination of supplying all self-contained single phase meter cans

• Correcting and Standardizing CAM units to reflect the appropriate material (prerequisite to VMI)

• Empowering our construction crews to participate in decision making regarding the reduction of trips to the jobsite

• Right-sizing transformers

• Integrated Supply/Vendor Managed Inventory

Questions?