U TILITIES WITH MULTI-STATE SERVICE TERRITORIES

1. UTILITIES WITH MULTI-STATE SERVICE TERRITORIES LIHEAP PERFORMANCE MEASURES - A MODEL FOR SUCCESS HHS REGIONAL GRANTEE TRAINING MEETING TUESDAY, APRIL 8, 2014 NEW YORK, NY Presenter: Akm M. Rahman Senior Program Coordinator (LIHEAP - Massachusetts)

2. WHY UTILITY COMPANIES USE KEY PERFORMANCE INDICATORS (KPI)? TO MAINTAIN STAKEHOLDER ACCOUNTIBILITY Return-On-Investment (investor-owned) Profit Redistribution (MUNIS) Profit Redistribution (co-ops) Reliability Statistics Power Restoration Rate Case Settlements Employee Satisfaction SHARE HOLDERS EMPLOYEES CUSTOMERS COMMUNITY Source: ESRI White Paper, June 2007 Akm Rahman, akm.rahman@state.ma.us

3. THE UTILITY LANDSCAPE and LIHEAP • These are multi-billion dollar companies. • They are buying and being bought out. • LIHEAP is NOT in their mind all the time. • COMPLIANCE, MANDATE, etc., may NOT be the right vocabulary. • How can we walk the walk and talk the talk? Source: American Gas Association, Statista (March 27, 2014), NiSource, and Northern Utilities, Akm Rahman, akm.rahman@state.ma.us

4. Case Study - National Grid (NGRID) Gas and Electric KEY INFORMATION NGRID’s Mergers & Acquisitions • Reported over $3.76B in net profit (60/40 between UK & U.S.) • Operates 9,000 miles of transmission lines in U.S. • Serves 3.4M gas and 3.3M electric customers • HQ in MA – serves NY, RI, and MA • Serves over 160 and 130 cities and towns in MA • Serves over 80 communities in RI • Offers utility discounts and arrearage management programs for low income customers • Invests in Energy Efficiency and Renewable Energy Source: Wikipedia, Annual Report, NGRID provided information, and Moody’s. Akm Rahman, akm.rahman@state.ma.us

5. Who Can be the Partners? Federal and State LIHEAP Offices Local Agencies Trade Associations, e.g., AGA, EPSA, NAESCO Work Groups (National, Regional and Local) Multi-state Utility Companies (e.g., NGRID, NiSource, NU, First Energy) Public Utility Commissions (MA DPU, NY Public Service, PA Public Utility Commission, etc.) F/S Offices: Sets goals to implement LIHEAP Performance Measures Local Agencies: Implement State Policies, review results, make decisions Work Groups: Develop business rules Utility Companies: Provide the data, review results, etc., receive feedback Public Utility Commissions: Can offer assistance, if needed Client: Provides Authorization, Waivers, etc. Akm Rahman, akm.rahman@state.ma.us

6. What Strategies Worked In MA?(A Task-Based Approach) • Formed a local work group to define business rules. • Conducted extensive outreach to Utility companies, LIHEAP sub-grantees, and regional/national networks. • Updated Standardized Forms and Released Data Formats/Standards. • Held several meetings and conference calls with utility company managers and their software partners. • Used existing reporting structure to build upon past successes. Akm Rahman, akm.rahman@state.ma.us

7. Evidence – (NGRID vs. Non-NGRID Groups) Note: For illustration purposes only. IOUs in MA offer discounts and arrearage management programs. No statistically significant differences between NGRID and other IOUs. There are significant differences between municipal gas and electric costs and when those are compared with all IOUs. Akm Rahman, akm.rahman@state.ma.us

8. NGRID & other Utility Company Provided Information > Performance Measures > Evidence-based Decisions Akm Rahman, akm.rahman@state.ma.us

9. Replicable Tools (Tangible) Standard data collection forms and formats Mandatory and optional Performance Measures Software Commonality Software Incompatibility (new vs., legacy systems) New IT technology Akm Rahman, akm.rahman@state.ma.us

10. Replicable Tools (Intangible) Best practice states Regional approach Knowledge of mergers and acquisitions Networking support Project Management (PM) experience Involvement of Public Utility Commissions Involvement of Utility company executives Akm Rahman, akm.rahman@state.ma.us

11. Lessons Learned (WD - 40 and Duct Tape analogy) Start NOW Show stakeholder benefits Develop business rules Form partnership with multi-state utilities Standardize the Tools Involve your State (going up to the highest possible level) MA may need a demonstration grant to validate/replicate its strategies in multi-state territories Akm Rahman, akm.rahman@state.ma.us

12. Sources and References National Grid: https://www1.nationalgridus.com/CorporateHub LIHEAP Performance Measures Website: https://liheappm.ncat.org/ MA LIHEAP Annual Report: http://www.mass.gov/hed/docs/dhcd/cd/liheap/fy-2012-liheap-annual-report.pdf MA Data Collection Form: http://www.mass.gov/hed/docs/dhcd/cd/liheap/fy2013consumptiondatarequestformat.xls LIHEAP Application: http://www.mass.gov/hed/docs/dhcd/cd/liheap/fy14liheap-standardizedapp.pdf 2013 NEAUC, LIHEAP Performance Measures: The Importance of Utility/Vendor Participation http://www.neuac.org/3C_Boland_Edwards_Mueller_Rahman.pdf http://www.esri.com/ Statista: http://www.statista.com http://www.acf.hhs.gov/nhsia-definition www.bestenergynews.com/solar/utility_co/utility_companies.php Image credits Bing and Google Akm Rahman, akm.rahman@state.ma.us

13. Questions & Answers Contact Information Akm M. Rahman Senior Program Coordinator Massachusetts Department of Housing & Community Development 100 Cambridge Street, Suite 300, Boston, MA 02114 (617) 573 – 1413 (phone) akm.rahman@state.ma.us www.mass.gov/dhcd