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Partnering for the Future WIEG Meeting September 16, 2010.

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Presentation on theme: "Partnering for the Future WIEG Meeting September 16, 2010."— Presentation transcript:

1 Partnering for the Future WIEG Meeting September 16, 2010

2 2 Agenda Key Account Program-Model/Service Review Major Results/Findings What’s New Challenges Opportunities

3 3 Key Account Program Model/Service Review Initiative was sponsored by Senior Management Used external resource with cross-industry expertise in customer service 18 – month initiative Process Review Best Practice Research Discussions with Top Quartile Utilities TQS Survey Results Identification of Gaps

4 4 Key Account Program Major Results/Findings Single/Primary Point of Contact Responsible for the entire customer relationship Number of customers assigned to each Account Manager varied, but We Energies was too high Utilization of Business Call Centers Outage Reporting – provide options Management Reporting

5 5 What’s New Redefined Key Accounts Program Redefined Key Accounts Defined customer selection criteria Focus on Commercial/Industrial customers Reduced number of assigned customers Realigned support for Government accounts Redefined Roles/Responsibilities Developed Customer Service Model for C&I – Account Manager is Primary Point of Contact Integrates Key Account Managers, Customer Operations and Customer Service – “Team Concept”

6 6 What’s New Jointly Developed Customer Plans Conduct joint planning sessions on an annual basis – implementing over an 18 month period Results of the meeting are documented and agreed to by customer Identify key areas of focus Level and frequency of communication Method of outage notification Periodic updates between customer and Account Manager

7 What’s New Executive Partnership Program “To enhance our relationships with key customers through a partnership with We Energies’ Senior Executives”

8 8 What’s New Executive Partnership Program Overview Implemented in 2009 20 customers participate in the program, approximately $250M in annual revenue 7 Executives Evaluate and grow the program as appropriate

9 9 What’s New Executive Partnership Program Objectives Establish and foster executive level relationship Core focus is to listen Help manage complex/unique customer issues as needed Enhance our understanding of the customer’s business Ensure we are using every means at our disposal to help support their business

10 10 What’s New Customer Activity Report Weekly report from Account Management group to Executives and Sr. Management Promotes visibility & awareness Drives alignment throughout the company

11 11 Challenges Economy improving slightly Improved economic activity in second quarter Continued strength in iron ore mining, specialty steel and paper production Rising electricity use in other sectors – most notably metal fabrication, rubber and plastic products, transportation equipment and health care

12 12 Challenges Rebound clearly underway Electricity use by large commercial and industrial customers 2010% Difference Compared to 2009 April782 GWh+12.6% May832 GWh+15.5% June845 GWh+14.8% Second Quarter 2,459 GWh+14.3%

13 13 Challenges Industrial demand still below 2008 levels Electricity use by large commercial and industrial customers 2010% Difference Compared to 2008 April782 GWh-12.5% May832 GWh-10.7% June845 GWh-10.1% Second Quarter 2,459 GWh-11.1%

14 14 Challenges PB Credit

15 15 Challenges Point Beach Credit – Key Accounts

16 16 Electric Fuel Cost Recovery WI Jurisdiction Electric fuel case for 2010 was filed on Feb. 19 Interim relief on March 25 Wisconsin jurisdictional increase of $60.5 Final review expected by year end. Limited reopening of fuel rates for 2011 filed September 3 Additional $38.4 million increase

17 17 Monitored Fuel Costs vs. Revenue

18 18 Opportunities New Fuel Rules New fuel rules sent to legislature on August 30, 2010 +/-2% dead band, or +/- $16 million in 2011 Escrow costs outside the dead band

19 19 Opportunities Act 141 We Energies customers contribute 1.2%, approximately $45M on an annual basis PSC can request additional funding through the Joint Finance Committee If Joint Committee on Finance does not request a hearing within 10 days of receipt of request (90 days to conduct hearing), increase in funding is automatically approved

20 20 Opportunities Special Contract Overview Statute requirements Customer must receive market benefits Customer must take market risk Utility customers that are not subject to the rate must not be harmed Utility shareholders must not be harmed Special Contract Design Customer pays normal tariff for “historical” load Customer pays marginal cost for incremental load PSCW approval required Strict adherence of statute Economic Benefit Jobs New Load

21 21 Questions


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