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Partnering for the Future

Partnering for the Future. WIEG Meeting September 16, 2010. Agenda. Key Account Program-Model/Service Review Major Results/Findings What’s New Challenges Opportunities. Key Account Program Model/Service Review. Initiative was sponsored by Senior Management

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Partnering for the Future

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  1. Partnering for the Future WIEG Meeting September 16, 2010

  2. Agenda • Key Account Program-Model/Service Review • Major Results/Findings • What’s New • Challenges • Opportunities

  3. Key Account ProgramModel/Service Review • Initiative was sponsored by Senior Management • Used external resource with cross-industry expertise in customer service • 18 – month initiative • Process Review • Best Practice Research • Discussions with Top Quartile Utilities • TQS Survey Results • Identification of Gaps

  4. Key Account ProgramMajor Results/Findings • Single/Primary Point of Contact • Responsible for the entire customer relationship • Number of customers assigned to each Account Manager varied, but We Energies was too high • Utilization of Business Call Centers • Outage Reporting – provide options • Management Reporting

  5. What’s NewRedefined Key Accounts Program • Redefined Key Accounts • Defined customer selection criteria • Focus on Commercial/Industrial customers • Reduced number of assigned customers • Realigned support for Government accounts • Redefined Roles/Responsibilities • Developed Customer Service Model for C&I – Account Manager is Primary Point of Contact • Integrates Key Account Managers, Customer Operations and Customer Service – “Team Concept”

  6. What’s NewJointly Developed Customer Plans • Conduct joint planning sessions on an annual basis – implementing over an 18 month period • Results of the meeting are documented and agreed to by customer • Identify key areas of focus • Level and frequency of communication • Method of outage notification • Periodic updates between customer and Account Manager

  7. What’s NewExecutive Partnership Program “To enhance our relationships with key customers through a partnership with We Energies’ Senior Executives”

  8. What’s NewExecutive Partnership Program Overview • Implemented in 2009 • 20 customers participate in the program, approximately $250M in annual revenue • 7 Executives • Evaluate and grow the program as appropriate

  9. What’s NewExecutive Partnership Program Objectives • Establish and foster executive level relationship • Core focus is to listen • Help manage complex/unique customer issues as needed • Enhance our understanding of the customer’s business • Ensure we are using every means at our disposal to help support their business

  10. What’s NewCustomer Activity Report • Weekly report from Account Management group to Executives and Sr. Management • Promotes visibility & awareness • Drives alignment throughout the company

  11. ChallengesEconomy improving slightly • Improved economic activity in second quarter • Continued strength in iron ore mining, specialty steel and paper production • Rising electricity use in other sectors – most notably metal fabrication, rubber and plastic products, transportation equipment and health care

  12. ChallengesRebound clearly underway • Electricity use by large commercial and industrial customers

  13. ChallengesIndustrial demand still below 2008 levels • Electricity use by large commercial and industrial customers

  14. ChallengesPB Credit

  15. ChallengesPoint Beach Credit – Key Accounts

  16. Electric Fuel Cost RecoveryWI Jurisdiction • Electric fuel case for 2010 was filed on Feb. 19 • Interim relief on March 25 • Wisconsin jurisdictional increase of $60.5 • Final review expected by year end. • Limited reopening of fuel rates for 2011 filed September 3 • Additional $38.4 million increase

  17. Monitored Fuel Costs vs. Revenue

  18. OpportunitiesNew Fuel Rules • New fuel rules sent to legislature on August 30, 2010 • +/-2% dead band, or +/- $16 million in 2011 • Escrow costs outside the dead band

  19. OpportunitiesAct 141 • We Energies customers contribute 1.2%, approximately $45M on an annual basis • PSC can request additional funding through the Joint Finance Committee • If Joint Committee on Finance does not request a hearing within 10 days of receipt of request (90 days to conduct hearing), increase in funding is automatically approved

  20. OpportunitiesSpecial Contract Overview • Statute requirements • Customer must receive market benefits • Customer must take market risk • Utility customers that are not subject to the rate must not be harmed • Utility shareholders must not be harmed • Special Contract Design • Customer pays normal tariff for “historical” load • Customer pays marginal cost for incremental load • PSCW approval required • Strict adherence of statute • Economic Benefit • Jobs • New Load

  21. Questions

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