Communication toolkit (PDF) - Inside Edison
Communication toolkit (PDF) - Inside Edison
Communication toolkit (PDF) - Inside Edison
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2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
While our 2012 SCE goals are still pending final approval, we are making this tool kit available<br />
so you can share the key elements of what was presented at the Feb. 16 annual Business<br />
Briefing.<br />
This tool kit captures the fundamentals of what was discussed. The intent is that you use this<br />
information to communicate the company’s areas of focus to employees, and to help guide<br />
you and your team as you create individual goals for 2012 performance planning.<br />
Viewing Tip:<br />
Click on menu tabs at left to move<br />
between sections.<br />
For maximum clarity, view the tool<br />
kit in full-screen view.<br />
You can also easily print this tool<br />
kit for reading off-line.<br />
RESOURCES<br />
Feb. 2012<br />
For Internal Use Only<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
SAFETY<br />
The safety of our employees and the public continue to be a top priority.<br />
We need to strive for an injury free workplace and make<br />
sure employees understand safe work practices,<br />
incorporate them into their daily routine and keep<br />
colleagues accountable to the same safety standards.<br />
We need to pay closer attention to each and every injury,<br />
regardless of how it’s classified, and evaluate what we can<br />
do to prevent it.<br />
Personal accountability at all levels is key.<br />
In 2011, we had eight serious injuries to our employees.<br />
We examined each incident and are applying lessons<br />
learned to improve our safety efforts moving forward.<br />
It’s not just enough to protect and maintain our system; we also need to<br />
educate the public about how electricity works and the dangers of<br />
coming into contact with it.<br />
In 2011, we had 11 fatalities as a result of third-party contacts with our<br />
electrical infrastructure: 4 from contact with downed wires, 5 workers who<br />
made contact, 2 as a result of vandalism to SCE substations.<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
FINANCIAL PERFORMANCE<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
Earnings performance is critical to creating value for our shareholders.<br />
We have prudently planned for 2012 and have reduced our O&M budgets by $125<br />
million to cover real increases in pension and insurance costs.<br />
Upon receipt of the GRC decision, we may need to make additional adjustments to<br />
manage our costs to authorized levels.<br />
A key investor expectation is for us to manage our business to meet or exceed our<br />
earnings targets. Achieving this target is a key component of operational excellence.<br />
This year, we will also seek a cost of capital decision from the CPUC. It’s an important<br />
decision as it sets our authorized capital structure, or the amount of debt and equity to<br />
finance the business and provide an authorized return on equity.<br />
We need to effectively attract capital to fund our investments, including distribution<br />
infrastructure and transmission lines.<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
STRATEGIC INITIATIVES<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
We’ve developed a company-wide strategic direction that allows us to shape our future with<br />
proactive planning, and serve our customers by achieving a better balance between policy,<br />
reliability and affordability.<br />
We must run our business in a safe, reliable and cost efficient manner.<br />
The Rate Challenge Project will help us maintain reliability and keep customer rates<br />
affordable.<br />
The project is designed to optimize the way we spend our dollars, both capital and O&M.<br />
It will allow us to meet our increased need for infrastructure replacement investment while<br />
keeping customer rates at affordable levels.<br />
We will do this by continuously driving toward a more streamlined, lower cost business<br />
model and increased productivity.<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
Learn more about <strong>Edison</strong> International’s Strategic Direction and the Rate<br />
Challenge Project by going to Portal > My Company > Vision, Strategy & Goals ><br />
Overview.<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
INTRODUCTION<br />
OPERATIONAL AND SERVICE EXCELLENCE<br />
Six focus areas for 2012<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
1. Efficiency<br />
2. Customer Satisfaction<br />
3. Reliability<br />
4. SONGS<br />
5. Major Capital Projects<br />
6. Diverse Business Enterprises (DBE) Spend<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
1 of 5<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
OPERATIONAL AND SERVICE EXCELLENCE<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
Topic<br />
Efficiency<br />
Customer<br />
Satisfaction<br />
Things to know …<br />
We will manage our costs to align with our customer Rate Objectives.<br />
Customer satisfaction targets will be maintained at the same level they’ve been at for the<br />
past four consecutive years. This will be a challenge given all of the issues that have<br />
recently played out in the media regarding the San Gabriel Valley windstorm.<br />
Maintaining customer satisfaction is important as we navigate through various issues<br />
facing our company: general regulatory risk, smart meters, energy efficiency,<br />
reliability, general rate case.<br />
• Additional challenges include:<br />
- budget reductions<br />
- new rates<br />
- rate increases<br />
- planned and unplanned outages<br />
- national/local economy<br />
- customer opinions influenced by rate implementation, reliability, and<br />
economic recovery. Downturn since all-time peak in 2008 leveled off in 2011<br />
2of 5<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
OPERATIONAL AND SERVICE EXCELLENCE<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
Topic<br />
Reliability<br />
Things to know …<br />
Our infrastructure and equipment needs to be upgraded.<br />
Equipment failures lead to increasing numbers of outages for our customers.<br />
We have an infrastructure replacement program that focuses on replacing equipment,<br />
particularly underground cable.<br />
To maintain our current level of reliability, we would have to replace roughly 1,000<br />
conductor miles of cable for 10 – 15 years, and then around 600 conductor miles per year<br />
thereafter. We replaced approximately 200 miles of cable in 2011.<br />
Every dollar spent today only influences future reliability. Improving reliability is a long term<br />
proposition.<br />
Reliability Index measures SCE's Hydro, Mountainview and Peaker reliability performance,<br />
including both planned and forced outages.<br />
Potential challenges include addressing unforeseen equipment problems that emerge.<br />
There are more than 80 generating units managed by Power Production, most will<br />
undergo annual maintenance outages this year.<br />
3 of 5<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
OPERATIONAL AND SERVICE EXCELLENCE<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
Topic<br />
SONGS<br />
Things to know …<br />
INPO stands for Institute of Nuclear Power Operations.<br />
Our paramount obligation to each other and to the public is that we fully comply with<br />
all requirements of operating SONGS safely (nuclear, radiological and industrial<br />
safety).<br />
Four strategic objectives to guide us this year:<br />
Achieve regulatory excellence by understanding and complying with the highest<br />
safety standards, as well as promptly identifying and resolving any condition that<br />
may threaten safety.<br />
Achieve industry excellence by not only meeting but exceeding industry<br />
performance expectations.<br />
Work with financial discipline, conducting business at SONGS in accordance with<br />
approved budgets.<br />
Achieve Outage Optimization by safely executing our refueling outages on<br />
schedule and within budget.<br />
4 of 5<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
OPERATIONAL AND SERVICE EXCELLENCE<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
Topic<br />
Major Capital<br />
Projects<br />
Diverse<br />
Business<br />
Enterprises<br />
(DBE) Spend<br />
Things to know …<br />
We have six major projects:<br />
<strong>Edison</strong> SmartConnect ,Tehachapi Renewable Transmission Project (TRTP), Devers Colorado<br />
River, Colorado River Substation Expansion, Red Bluff Substation, and the Eldorado-Ivanpah<br />
Transmission Project.<br />
• We will install the balance of nearly 5 million smart meters with capital spend of $333M and<br />
manage O&M budget not to exceed $105M.<br />
• Our big transmission projects will help us achieve our renewable energy goals.<br />
As part of the CPUC decision in granting SCE the Certificate of Public Convenience and<br />
Necessity (CPCN) for each of these major projects, CPUC requires SCE to file an advice letter<br />
with updated costs within 30 days of completion of the final engineering estimate.<br />
A key element of SCE’s diversity focus is our Supplier Diversity Program.<br />
DBEs include minority-owned, women-owned, and service disabled veteran-owned businesses.<br />
We remain committed to building a strong base of diverse suppliers with a broad range of<br />
capabilities to help us deliver safe, reliable and affordable electricity.<br />
5 of 5<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
ENTERPRISE RISK MANAGEMENT<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
Topic<br />
Enterprise Risk<br />
Management<br />
Program<br />
Business<br />
Resiliency<br />
Things to know …<br />
Key activities for 2012 include:<br />
• Improve and maintain the key risk mitigation plans including reporting the key risks and<br />
mitigation plans to the Audit Committee twice during the year.<br />
• Improve the process for the identification and reporting of key and emerging risks for<br />
SCE.<br />
• Provide quarterly updates to management on the status of mitigation plans for key risks.<br />
We will continue to develop our ability to respond and manage following disruptions and<br />
catastrophic events.<br />
We contacted the California Emergency Management Agency (CEMA) and asked them to<br />
partner with us in evaluating the performance of some of our drills and exercises.<br />
Drills will now be evaluated against performance and adherence to plans. Across the<br />
company, there will be standardized Business Resiliency processes, drills, and plans,<br />
including quality reviews and maintenance.<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
PUBLIC POLICY<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
We’ll continue to review how various public policies and the rate structure impacts the reliability<br />
of our system and our customers’ bills.<br />
We need to help decision makers understand the costs associated with the proposed policies<br />
and the impact on customer rates. And to work with legislators, regulators and the community to<br />
prioritize our energy solutions for California.<br />
We’ll also take a look at how our rates are structured because rates – particularly residential<br />
rates – have become less equitable since restrictions were imposed in 2001.<br />
We are developing a proposal that addresses key issues to ensure a level playing field:<br />
• Ensure third-party providers don’t just go after easier projects in the market, leaving the<br />
difficult, expensive and high-risk projects for SCE ratepayers to shoulder.<br />
• Ensure appropriate safeguards for mitigating risks so projects are not abandoned while third<br />
party generators are waiting for interconnection.<br />
There are a variety of programs and state goals that impose infrastructure and<br />
procurement/pricing costs which impact rate affordability.<br />
Cost containment is crucial for both the infrastructure and pricing elements of programs such as:<br />
• 33% Renewables Portfolio Standard (RPS)<br />
• Governor’s 12,000 MW of Distributed Energy Plan<br />
• Customer Side and Wholesale Small Renewable Programs: Feed in Tariff, Net Energy<br />
Metering, Self Generation<br />
• Energy efficiency and financing of new programs<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
COMPLIANCE<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
Like Safety, Compliance is a top priority for the company.<br />
Three important things we will focus on:<br />
• No significant noncompliance events.<br />
• Develop metrics and corresponding improvement plans from Ethics Resource Center survey<br />
and external assessments (Federal Sentencing Guidelines and FERC Guidelines as<br />
benchmarks).<br />
• Implement Framework & Standards for all (major) compliance areas with corresponding<br />
completion certification or published improvement plans, metrics and timelines.<br />
Some employees still express concern regarding retaliation for raising issues. Leaders must make<br />
it clear that we will not tolerate any form of retaliation.<br />
We are all empowered to raise questions and issues. We are equally accountable for our behavior.<br />
All of us should raise issues when we think something is wrong – talk to our leaders, call the Ethics<br />
and Compliance office or call the Helpline.<br />
Open discussions and solid advice will lead to early resolution of issues.<br />
Ethics and Compliance Helpline<br />
(800) 877-7089<br />
You can also report online at<br />
www.EthicsHelplineOnline.com<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
PEOPLE AND CULTURE<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
In 2012, we are making shifts in the way we distribute executive bonuses and equity awards to<br />
better align pay with the contribution that each executive makes and encourage higher levels of<br />
individual performance.<br />
We will work to ensure our executive candidate pool is diverse, focus our professional<br />
development efforts to ensure there is equal opportunity for advancement throughout the<br />
organization, and review progress updates to evaluate how we’re doing throughout the year.<br />
Along with the Work Environment Survey (WES), the company is currently conducting an<br />
additional work environment review by having external consultants interview employee groups<br />
and contingent workers to get their observations and recommendations to inform workplace<br />
improvement strategies. Their review is targeted for completion by the end of March 2012. There<br />
findings will undoubtedly be lessons we will learn for the entire Company.<br />
We are committed to creating and maintaining a healthy and productive work environment for all<br />
employees in SCE.<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.
2012 BUSINESS BRIEFING<br />
<strong>Communication</strong> Tool Kit for SCE Managers<br />
RESOURCES<br />
INTRODUCTION<br />
SAFETY<br />
FINANCIAL<br />
PERFORMANCE<br />
STRATEGIC INITIATIVES<br />
OPERATIONAL AND<br />
SERVICE EXCELLENCE<br />
ENTERPRISE RISK<br />
MANAGEMENT<br />
PUBLIC POLICY<br />
COMPLIANCE<br />
PEOPLE AND CULTURE<br />
RESOURCES<br />
“Things That Matter” Video<br />
This video illustrates that what we do as a company<br />
MATTERS. We can, and do, have a positive impact on<br />
people’s lives. Our history of service, our legacy, the<br />
enormous responsibility we have to serve are really<br />
important things to remember.<br />
Click on the screenshot to watch >>><br />
Performance Planning Help on Portal<br />
You’ll find several resources available to help you<br />
and your employees set more effective goals<br />
including: a checklist of tasks to complete in the<br />
process, a worksheet to build more effective goals,<br />
examples of effective goals, and a guide to having<br />
goal setting discussions with employees … and<br />
more.<br />
Click on the screenshot to access >>><br />
FOR OVER 100 HUNDRED YEARS … LIFE. POWERED BY EDISON.