Communication toolkit (PDF) - Inside Edison

2012 BUSINESS BRIEFING 

Communication Tool Kit for SCE Managers 

INTRODUCTION 

SAFETY 

FINANCIAL 

PERFORMANCE 

STRATEGIC INITIATIVES 

OPERATIONAL AND 

SERVICE EXCELLENCE 

ENTERPRISE RISK 

MANAGEMENT 

PUBLIC POLICY 

COMPLIANCE 

PEOPLE AND CULTURE 

While our 2012 SCE goals are still pending final approval, we are making this tool kit available 

so you can share the key elements of what was presented at the Feb. 16 annual Business 

Briefing. 

This tool kit captures the fundamentals of what was discussed. The intent is that you use this 

information to communicate the company’s areas of focus to employees, and to help guide 

you and your team as you create individual goals for 2012 performance planning. 

Viewing Tip: 

Click on menu tabs at left to move 

between sections. 

For maximum clarity, view the tool 

kit in full-screen view. 

You can also easily print this tool 

kit for reading off-line. 

RESOURCES 

Feb. 2012 

For Internal Use Only 

FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.



INTRODUCTION 

SAFETY 

FINANCIAL 

PERFORMANCE 





MANAGEMENT 

PUBLIC POLICY 

COMPLIANCE 


RESOURCES 

SAFETY 

The safety of our employees and the public continue to be a top priority. 

We need to strive for an injury free workplace and make 

sure employees understand safe work practices, 

incorporate them into their daily routine and keep 

colleagues accountable to the same safety standards. 

We need to pay closer attention to each and every injury, 

regardless of how it’s classified, and evaluate what we can 

do to prevent it. 

Personal accountability at all levels is key. 

In 2011, we had eight serious injuries to our employees. 

We examined each incident and are applying lessons 

learned to improve our safety efforts moving forward. 

It’s not just enough to protect and maintain our system; we also need to 

educate the public about how electricity works and the dangers of 

coming into contact with it. 

In 2011, we had 11 fatalities as a result of third-party contacts with our 

electrical infrastructure: 4 from contact with downed wires, 5 workers who 

made contact, 2 as a result of vandalism to SCE substations. 




FINANCIAL PERFORMANCE 

INTRODUCTION 

SAFETY 

FINANCIAL 

PERFORMANCE 





MANAGEMENT 

PUBLIC POLICY 

COMPLIANCE 

Earnings performance is critical to creating value for our shareholders. 

We have prudently planned for 2012 and have reduced our O&M budgets by $125 

million to cover real increases in pension and insurance costs. 

Upon receipt of the GRC decision, we may need to make additional adjustments to 

manage our costs to authorized levels. 

A key investor expectation is for us to manage our business to meet or exceed our 

earnings targets. Achieving this target is a key component of operational excellence. 

This year, we will also seek a cost of capital decision from the CPUC. It’s an important 

decision as it sets our authorized capital structure, or the amount of debt and equity to 

finance the business and provide an authorized return on equity. 

We need to effectively attract capital to fund our investments, including distribution 

infrastructure and transmission lines. 


RESOURCES 





INTRODUCTION 

SAFETY 

FINANCIAL 

PERFORMANCE 





MANAGEMENT 

PUBLIC POLICY 

COMPLIANCE 

We’ve developed a company-wide strategic direction that allows us to shape our future with 

proactive planning, and serve our customers by achieving a better balance between policy, 

reliability and affordability. 

We must run our business in a safe, reliable and cost efficient manner. 

The Rate Challenge Project will help us maintain reliability and keep customer rates 

affordable. 

The project is designed to optimize the way we spend our dollars, both capital and O&M. 

It will allow us to meet our increased need for infrastructure replacement investment while 

keeping customer rates at affordable levels. 

We will do this by continuously driving toward a more streamlined, lower cost business 

model and increased productivity. 


RESOURCES 

Learn more about Edison International’s Strategic Direction and the Rate 

Challenge Project by going to Portal > My Company > Vision, Strategy & Goals > 

Overview. 




INTRODUCTION 

OPERATIONAL AND SERVICE EXCELLENCE 

Six focus areas for 2012 

SAFETY 

FINANCIAL 

PERFORMANCE 





MANAGEMENT 

PUBLIC POLICY 

1. Efficiency 

2. Customer Satisfaction 

3. Reliability 

4. SONGS 

5. Major Capital Projects 

6. Diverse Business Enterprises (DBE) Spend 

COMPLIANCE 


RESOURCES 

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INTRODUCTION 

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MANAGEMENT 

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RESOURCES 

Topic 

Efficiency 

Customer 

Satisfaction 

Things to know … 

We will manage our costs to align with our customer Rate Objectives. 

Customer satisfaction targets will be maintained at the same level they’ve been at for the 

past four consecutive years. This will be a challenge given all of the issues that have 

recently played out in the media regarding the San Gabriel Valley windstorm. 

Maintaining customer satisfaction is important as we navigate through various issues 

facing our company: general regulatory risk, smart meters, energy efficiency, 

reliability, general rate case. 

• Additional challenges include: 

- budget reductions 

- new rates 

- rate increases 

- planned and unplanned outages 

- national/local economy 

- customer opinions influenced by rate implementation, reliability, and 

economic recovery. Downturn since all-time peak in 2008 leveled off in 2011 

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INTRODUCTION 

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RESOURCES 

Topic 

Reliability 


Our infrastructure and equipment needs to be upgraded. 

Equipment failures lead to increasing numbers of outages for our customers. 

We have an infrastructure replacement program that focuses on replacing equipment, 

particularly underground cable. 

To maintain our current level of reliability, we would have to replace roughly 1,000 

conductor miles of cable for 10 – 15 years, and then around 600 conductor miles per year 

thereafter. We replaced approximately 200 miles of cable in 2011. 

Every dollar spent today only influences future reliability. Improving reliability is a long term 

proposition. 

Reliability Index measures SCE's Hydro, Mountainview and Peaker reliability performance, 

including both planned and forced outages. 

Potential challenges include addressing unforeseen equipment problems that emerge. 

There are more than 80 generating units managed by Power Production, most will 

undergo annual maintenance outages this year. 

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INTRODUCTION 

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RESOURCES 

Topic 

SONGS 


INPO stands for Institute of Nuclear Power Operations. 

Our paramount obligation to each other and to the public is that we fully comply with 

all requirements of operating SONGS safely (nuclear, radiological and industrial 

safety). 

Four strategic objectives to guide us this year: 

Achieve regulatory excellence by understanding and complying with the highest 

safety standards, as well as promptly identifying and resolving any condition that 

may threaten safety. 

Achieve industry excellence by not only meeting but exceeding industry 

performance expectations. 

Work with financial discipline, conducting business at SONGS in accordance with 

approved budgets. 

Achieve Outage Optimization by safely executing our refueling outages on 

schedule and within budget. 

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INTRODUCTION 

SAFETY 

FINANCIAL 

PERFORMANCE 





MANAGEMENT 

PUBLIC POLICY 

COMPLIANCE 


RESOURCES 

Topic 

Major Capital 

Projects 

Diverse 

Business 

Enterprises 

(DBE) Spend 


We have six major projects: 

Edison SmartConnect ,Tehachapi Renewable Transmission Project (TRTP), Devers Colorado 

River, Colorado River Substation Expansion, Red Bluff Substation, and the Eldorado-Ivanpah 

Transmission Project. 

• We will install the balance of nearly 5 million smart meters with capital spend of $333M and 

manage O&M budget not to exceed $105M. 

• Our big transmission projects will help us achieve our renewable energy goals. 

As part of the CPUC decision in granting SCE the Certificate of Public Convenience and 

Necessity (CPCN) for each of these major projects, CPUC requires SCE to file an advice letter 

with updated costs within 30 days of completion of the final engineering estimate. 

A key element of SCE’s diversity focus is our Supplier Diversity Program. 

DBEs include minority-owned, women-owned, and service disabled veteran-owned businesses. 

We remain committed to building a strong base of diverse suppliers with a broad range of 

capabilities to help us deliver safe, reliable and affordable electricity. 

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ENTERPRISE RISK MANAGEMENT 

INTRODUCTION 

SAFETY 

FINANCIAL 

PERFORMANCE 





MANAGEMENT 

PUBLIC POLICY 

COMPLIANCE 


RESOURCES 

Topic 

Enterprise Risk 

Management 

Program 

Business 

Resiliency 


Key activities for 2012 include: 

• Improve and maintain the key risk mitigation plans including reporting the key risks and 

mitigation plans to the Audit Committee twice during the year. 

• Improve the process for the identification and reporting of key and emerging risks for 

SCE. 

• Provide quarterly updates to management on the status of mitigation plans for key risks. 

We will continue to develop our ability to respond and manage following disruptions and 

catastrophic events. 

We contacted the California Emergency Management Agency (CEMA) and asked them to 

partner with us in evaluating the performance of some of our drills and exercises. 

Drills will now be evaluated against performance and adherence to plans. Across the 

company, there will be standardized Business Resiliency processes, drills, and plans, 

including quality reviews and maintenance. 




PUBLIC POLICY 

INTRODUCTION 

SAFETY 

FINANCIAL 

PERFORMANCE 





MANAGEMENT 

PUBLIC POLICY 

COMPLIANCE 


RESOURCES 

We’ll continue to review how various public policies and the rate structure impacts the reliability 

of our system and our customers’ bills. 

We need to help decision makers understand the costs associated with the proposed policies 

and the impact on customer rates. And to work with legislators, regulators and the community to 

prioritize our energy solutions for California. 

We’ll also take a look at how our rates are structured because rates – particularly residential 

rates – have become less equitable since restrictions were imposed in 2001. 

We are developing a proposal that addresses key issues to ensure a level playing field: 

• Ensure third-party providers don’t just go after easier projects in the market, leaving the 

difficult, expensive and high-risk projects for SCE ratepayers to shoulder. 

• Ensure appropriate safeguards for mitigating risks so projects are not abandoned while third 

party generators are waiting for interconnection. 

There are a variety of programs and state goals that impose infrastructure and 

procurement/pricing costs which impact rate affordability. 

Cost containment is crucial for both the infrastructure and pricing elements of programs such as: 

• 33% Renewables Portfolio Standard (RPS) 

• Governor’s 12,000 MW of Distributed Energy Plan 

• Customer Side and Wholesale Small Renewable Programs: Feed in Tariff, Net Energy 

Metering, Self Generation 

• Energy efficiency and financing of new programs 




COMPLIANCE 

INTRODUCTION 

SAFETY 

FINANCIAL 

PERFORMANCE 





MANAGEMENT 

PUBLIC POLICY 

COMPLIANCE 


RESOURCES 

Like Safety, Compliance is a top priority for the company. 

Three important things we will focus on: 

• No significant noncompliance events. 

• Develop metrics and corresponding improvement plans from Ethics Resource Center survey 

and external assessments (Federal Sentencing Guidelines and FERC Guidelines as 

benchmarks). 

• Implement Framework & Standards for all (major) compliance areas with corresponding 

completion certification or published improvement plans, metrics and timelines. 

Some employees still express concern regarding retaliation for raising issues. Leaders must make 

it clear that we will not tolerate any form of retaliation. 

We are all empowered to raise questions and issues. We are equally accountable for our behavior. 

All of us should raise issues when we think something is wrong – talk to our leaders, call the Ethics 

and Compliance office or call the Helpline. 

Open discussions and solid advice will lead to early resolution of issues. 

Ethics and Compliance Helpline 

(800) 877-7089 

You can also report online at 

www.EthicsHelplineOnline.com 





INTRODUCTION 

SAFETY 

FINANCIAL 

PERFORMANCE 





MANAGEMENT 

PUBLIC POLICY 

In 2012, we are making shifts in the way we distribute executive bonuses and equity awards to 

better align pay with the contribution that each executive makes and encourage higher levels of 

individual performance. 

We will work to ensure our executive candidate pool is diverse, focus our professional 

development efforts to ensure there is equal opportunity for advancement throughout the 

organization, and review progress updates to evaluate how we’re doing throughout the year. 

Along with the Work Environment Survey (WES), the company is currently conducting an 

additional work environment review by having external consultants interview employee groups 

and contingent workers to get their observations and recommendations to inform workplace 

improvement strategies. Their review is targeted for completion by the end of March 2012. There 

findings will undoubtedly be lessons we will learn for the entire Company. 

We are committed to creating and maintaining a healthy and productive work environment for all 

employees in SCE. 

COMPLIANCE 


RESOURCES 




RESOURCES 

INTRODUCTION 

SAFETY 

FINANCIAL 

PERFORMANCE 





MANAGEMENT 

PUBLIC POLICY 

COMPLIANCE 


RESOURCES 

“Things That Matter” Video 

This video illustrates that what we do as a company 

MATTERS. We can, and do, have a positive impact on 

people’s lives. Our history of service, our legacy, the 

enormous responsibility we have to serve are really 

important things to remember. 

Click on the screenshot to watch >>> 

Performance Planning Help on Portal 

You’ll find several resources available to help you 

and your employees set more effective goals 

including: a checklist of tasks to complete in the 

process, a worksheet to build more effective goals, 

examples of effective goals, and a guide to having 

goal setting discussions with employees … and 

more. 

Click on the screenshot to access >>>

Communication toolkit (PDF) - Inside Edison

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