Utility Cost Containment

Many utilities face a similar challenge today; in a time of declining or flat revenues, and facing increased regulatory requirements and generation portfolio changes, utilities are hard pressed to maintain reliable service, hold rates down, and meet new technical and regulatory requirements. In Black & Veatch’s service to utilities around the globe we’ve learned some interesting places where you might be able to save money and enhance service.

Two cost saving and service improvement ideas were discussed in a Black & Veatch sponsored webcast on May 13th. The audio can be found at this link and the PowerPoint frames used in the presentation can be downloaded by clicking here. The ideas shared in the webcast as well as other ideas for recapturing costs and improving capability are offered below.

The More Efficient Call Center

Black & Veatch contact center professionals assess clients’ operations, identify performance gaps, and implement innovative, sustainable solutions that deliver measurable results. Performance improvements are targeted in key metrics like average handle time, staff shrinkage, customer satisfaction scores and first call resolution rates. And in larger call centers, clients often reduce operating cost enough to repay our fees three or four times over during the first year. An assessment will quickly identify your opportunity:

• What can we do to improve customer satisfaction while lowering average call handling time?
• What can we do to increase first call resolution rate?
• How do we deal with dramatic changes brought about by the smart grid revolution?

eMail: consultinginfo@bv.com for more information

‘Compatible Units’ Improve Asset Management

Black & Veatch’s Asset Management Solutions Team has developed proven methodologies for helping you plan full lifecycle management of your assets. Our methodologies include:

• Comprehensive Asset Management Readiness Assessment (CAMRA)
• Strategic Long-term R&R Planning
• Risk-Based Condition Assessment
• EAM/CMMS System Review/Optimization
• EAM/CMMS/GIS System Selection and Implementation
• Asset Lifecycle Business Process Review/Improvement

One way to streamline design, improve cost estimates and simplify regulatory reporting is to embrace compatible units. A compatible unit is a design element used by engineers that includes materials, labor, instructions and equipment that represent standardized units of work, such as the installation of a utility pole or transformer. By using compatible units, clients can minimize the amount of time required to create a design estimate, ensuring a higher degree of cost accuracy.

eMail: consultinginfo@bv.com for more information

PowerPlantMD® Enhanced Generation Performance, Increased Reliability, and Savings

Since 2001, Black & Veatch’s PowerPlantMD solution has been helping power stations turn large amounts of existing operational data into true action that helps to increase performance and reliability while reducing all emissions, including greenhouse gases. In 2007, PowerPlantMD saved our clients $4,900,000 in excess of program fees through improved performance and reduced derates.* A likely greater level of savings, and the reason why over 17,000 MW of generation have subscribed to PowerPlantMD, is the avoidance of catastrophic failures achieved through the more proactive maintenance activities.

The PowerPlantMD solution, audited for compliance with utility cyber security rules, securely streams plant data into B&V’s Kansas City based Monitoring & Diagnostics (M&D) Center. These parameters cover all major plant equipment and systems for power generation and emissions control resulting in more highly proactive plant operations and maintenance activities improving performance, reducing emissions, and improving reliability.

www.powerplantmd.com

Cost Containment and the Rate Case

The regulated utility business environment makes the timing of a utility's cost containment initiatives very important. You need to understand the relationship between cost containment initiatives and the utility's rate case filing planning cycle. If possible, the utility would like to avoid filing a rate case when its cost structure is at a low point because that will effectively lower the level of revenues it will be allowed to recover through its future rates.

If you are engaged in cost containment activities we can help you understand the optimal timing for your request as well as make sure you understand your obligations to show how the cost savings from these cost containment and austerity plans will need to be shared with customers.

For more information contact: consultinginfo@bv.com

Capital Prioritizations Helps Maintain Service Levels and Minimize Risk

Utility managers face a conflicting set of priorities in today's economic environment. On the one hand, they have aging infrastructure with ever-increasing risk of catastrophic failures, which would require large amounts of capital to replace and rehabilitate. And on the other hand, capital and O&M budgets have been slashed as sales and revenue have dropped and rate increases are denied or delayed. Management must cope with increasing levels of risk on their system, while meeting expectations of delivering high and even improved levels of service to customers and stakeholders (without additional staff). Something has to give. Black & Veatch has addressed these issues using its Capital Prioritization process and tools to help utilities manage their Capital and O&M budgets through a thorough economic analysis of all projects. Black & Veatch's process is different from others in that we focus on minimizing risk to the utility through this process. Contact us for fresh ideas and tools for addressing your resource planning problems at consultinginfo@bv.com

Learn more about Black & Veatch's Capital Prioritization capabilities