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CSD-14 Partnerships Fair – May 2006 USEA/USAID Energy Partnership Program Partnering the world of energy management Gordon Weynand, Energy Team Leader,

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Presentation on theme: "CSD-14 Partnerships Fair – May 2006 USEA/USAID Energy Partnership Program Partnering the world of energy management Gordon Weynand, Energy Team Leader,"— Presentation transcript:

1 CSD-14 Partnerships Fair – May 2006 USEA/USAID Energy Partnership Program Partnering the world of energy management Gordon Weynand, Energy Team Leader, USAID Barry Worthington, Executive Director, USEA James Connelly, Commissioner, MDTE

2 CSD-14 Partnerships Fair – May 2006 Gordon Weynand Energy Team Leader, United States Agency for International Development Bureau for Economic Growth, Agriculture and Trade

3 CSD-14 Partnerships Fair – May 2006 Sustaining Economic Growth There is a need for energy prices to encourage reliable economic growth and job creation Expensive, unreliable electricity cripples economies and restrict job opportunities

4 CSD-14 Partnerships Fair – May 2006 Lack of Commercial Electricity Hospitals cannot refrigerate vaccines Schools cannot provide adequate lighting Farmers cannot use pumps to irrigate their fields Clean water systems cannot function

5 CSD-14 Partnerships Fair – May 2006 Energy & Security Adequate energy infrastructure is critical for combating unemployment, illiteracy, the spread of infectious disease, environmental degradation, and the cycle of poverty in developing countries Poverty and instability pose an increasingly significant geopolitical risk to countries around the world

6 CSD-14 Partnerships Fair – May 2006 USAIDS ROLE IN ENERGY Access to affordable, reliable, clean, and efficient energy services is essential to breaking the cycle of poverty and achieving sustainable development Public/Private Partnerships Technical Assistance Training

7 CSD-14 Partnerships Fair – May 2006 Barry Worthington Executive Director, United States Energy Association

8 CSD-14 Partnerships Fair – May 2006 About the Energy Partnership Program Practioner-to-practioner partnerships Transferring commercially viable, market-oriented approaches to overseas electric and gas utilities, as well as energy regulators Result in a two-way exchange of best practices between the US and overseas partners

9 CSD-14 Partnerships Fair – May 2006 Quantity of Partnerships (since conception in 1990) 81 partnerships in 30 developing countries Over 12,000 executives have participated pro bono $ 58 million in donated time and expertise

10 CSD-14 Partnerships Fair – May 2006 EPP Key Issue Areas: Efficiency Gains in Electricity Transmission Improving grid codes Improving system maintenance Operating regional transmission networks Energy Regulation Improving public hearings process Improving license procedures Improving staff management

11 CSD-14 Partnerships Fair – May 2006 EPP Key Issue Areas (continued): Best Practices in Electricity Distribution Billing and metering Tariff collection Management of technical losses and theft Accurate and Informed Energy Reporting by the Media Key energy issues Journalism standards

12 CSD-14 Partnerships Fair – May 2006 EPP Key Issue Areas (continued): Energy Markets Rules of participation in regional market Financing independent market operator Regional regulation Power Generation Financing new generation Improving maintenance of power plants Optimizing contracts with Independent Power Producers

13 CSD-14 Partnerships Fair – May 2006 Partnership Outcomes Results impact reliability, affordability, economic viability, and social & environmental sustainability – improving the reliability and access of commercial electric delivery Examples include: Rules and financial contributions of membership in the West Africa Power Pool are based on the Southwest Power Pool in Little Rock, Arkansas BENEFIT: Allows self-financing and improved reliability in region

14 CSD-14 Partnerships Fair – May 2006 Partnership Outcomes (continued) Dhaka Electric Supply Company in Bangladesh (DESCO) established a handbook of maintenance practices based on the Sacramento Municipal Utility District and Clark Public Utilities of Washington State BENEFIT: Saving money on maintenance to apply towards improved service The Office of Utility Regulation in Jamaica improved its power reporting requirements based on the Missouri and Rhode Island regulatory commissions BENEFIT: Now able to inform customers of power outages and expected restoration

15 CSD-14 Partnerships Fair – May 2006 Partnership Outcomes (continued) In Angola, the national distribution company is developing a slum electrification program with the assistance of a utility in Salvador, Brazil BENEFIT: Replication of a successful international program to help reach an underserved population The Armenian Regulatory Commission developed a tariff methodology for natural gas with the help of the Kentucky Public Service Commission BENEFIT: Sustainable gas service to ensure supply to consumers

16 CSD-14 Partnerships Fair – May 2006 Partnership Outcomes (continued) In Mongolia, the regulatory commission has adopted a life-line tariff due to exposure of similar tariffs in the program BENEFIT: Societys poorest consumers have access to affordable electricity The Bhutan Power Corporation adopted a performance based incentive system after seeing it in Southern Africa BENEFIT: Improves performance for customers

17 CSD-14 Partnerships Fair – May 2006 Unexpected Outcomes Positive Surprise Existing practices confirmed by comparing against standards of US partners Growth of interest from potential international partners Negative surprise (obstacle) Information is not readily shared between participants and field staff who are not chosen for exchange activities

18 CSD-14 Partnerships Fair – May 2006 Future Challenges/ Next Steps Funding and incorporating the many countries who wish to participate into the program Insuring that overseas partners utilize the information received by U.S. companies

19 CSD-14 Partnerships Fair – May 2006 James Connelly Commissioner, Massachusetts Department of Telecommunications and Energy

20 CSD-14 Partnerships Fair – May 2006 Example from Partner (Massachusetts Commission) How the partnership operated In MA, staff were matched with counterparts who oversee Benchmarks and Performance Measurement, Customer Service & Dispute Resolution, and Performance Based & Cost of Service Regulation

21 CSD-14 Partnerships Fair – May 2006 Example from Partner (Massachusetts Commission) Lessons learned from Massachusetts: Administrative Law – importance and application Due Process Hearings – Transparency and balance of interests Appellate Procedures – How cases are considered by a regulatory commission

22 CSD-14 Partnerships Fair – May 2006 Example from Partner (Massachusetts Commission) The Central Energy Regulatory Commission of India developed a two-part, performance-based tariff based on MDTEs tariff structure MDTE provided the National Electrification Administration and Energy Regulatory Board of the Philippines with its experience in utility restructuring MDTE provided the Romanian regulatory agency with tariffs and operational rules when it was first developing its own tariffs

23 CSD-14 Partnerships Fair – May 2006 Example from Partner (Massachusetts Commission) MDTE gave the Egyptian commission software valued at over $100,000 to track customer calls and data to develop a call center MDTE met with the Pakistani regulators and provided them with information to set sustainable, market-based tariffs

24 CSD-14 Partnerships Fair – May 2006

25 Example from Partner (Massachusetts Commission) MDTE gave the Egyptian regulators the following documents to help in developing Egypts rules and operations: copies of MA laws, rules and regulations used to ensure independent decision making Copies of MA license applications and rules of licenses Sample transcript of a MA license hearing

26 CSD-14 Partnerships Fair – May 2006 Example from Partner (Massachusetts Commission) Partnership was also beneficial for MDTE Developed staff presentation skills Exposure to international regulatory practices and how they compare with the NE region of the United States

27 CSD-14 Partnerships Fair – May 2006 Questions?


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