1. Blue Ocean Planning
Final Report
March, 2017

2. Contents Executive Summary Purpose Overview of Approach Conclusions
Study Summary
Site Visits
Observations
Location Assessment:
Ops Center Location Benchmarking
Location Model (Based on Meter Locations)
Location Model - Enhanced (Based on Meter & Gas Main Locations)
Construction Office Coverage - Initial & Enhanced
Review Approved Spoil Yard Sites
Strategic Site Assessment Ratings

3. Executive summary

4. Purpose of Study Before investments are made in the facilities…
Identify whether CPA has the right number of facilities in the right locations to effectively support field operations.
Provide some preliminary feedback on the facility size, suitability, and other considerations for subsequent long range facility planning.

5. Overview of Approach No major changes in operations are anticipated
An iterative approach was used to perform this study
Locations were benchmarked (travel time to customers vs. other utilities)
Initial Location Assessment of overall service area
Operations
Construction Offices
Enhanced Location Assessment of SW PA area
The field operations HQ sites were visited
Observe the range of conditions
Assess “strategic facility ratings” and identify potential opportunities

6. Conclusions
About the right number of Operation Centers & MODS in good locations
Two could be eliminated with minimal travel time increase, but feasibility of appropriate facilities in needed locations is questionable.
Some facilities need refresh or rebuild.
Construction offices are well located for the expected pipe replacement program
Replacement work in outlying areas can continue to be managed from local Operations Centers/MODs.

7. Conclusions Wide variation in facilities between old and new…
Condition: some are very tired, with deferred maintenance,
Need planned capital renewal
Substantial variation in space (GSF/person) at Ops Centers and MODS
Overall facility plan needs to address space and condition

8. Study summary

9. Observations from Site Visits
There is a wide range of size & quality among facilities.
Strategic Site Assessments are documented below

10. Location Benchmarking
This study compared travel time from CPA’s existing field HQ locations (to customers) with set of national electric/gas utilities
CPA has favorable Travel times by using the MOD approach
CPA
The report:

11. Initial Location Assessment
An initial location assessment performed (next slide)
Various data about the facilities was reviewed:
CPA has smaller facilities than most gas companies
The report:

12. Initial Location Assessment - Operations
Entire service area evaluated
Work forecast based only on meter distribution

13. Initial Location Assessment - Construction
Initial screening based on average Pipe Risk rating

14. Enhanced Location Criteria
Data on location and type of gas mains was used to refine the location analysis
Total LF main considered for maintenance (along with meter density)
Total LF non-plastic main considered for risk and replacement work

15. Enhanced Location Assessment
Focus on Southwest PA portion of service area
East and far north are geographic “islands” and site visits did not identify much opportunity
Further evaluate potential opportunities from initial assessment
Enhanced work forecast was based on mix of:
1/3 meters
1/3 main
1/3 weighted pipe risk

16. Enhanced Location Assessment – Construction Offices
“Optimum” locations are slightly different than current
Net travel difference not significant enough to relocate
Continue managing rural project work from operating sites

17. Enhanced Location Assessment - Operations
Two sites could be eliminated with little travel time impact (if facilities can accommodate)
No other opportunities of value

18. Enhanced Location Assessment - Operations
“Optimum” locations are slightly different than current
Alpine Point "should" be consolidated into Horning Road in Bethel Park area – not believed to be physically or financially feasible.
Net travel value not significant enough to relocate other sites

19. Spoil Operations Also Need a Plan
There are several areas where spoils yard or contracted spoil management will be needed to avoid long drives.

20. Spoil Management
Where a “permitted” spoil yard is not available, consider contracting the spoil management

21. Strategic Site Assessment Ratings & Recommended Action Plan
Sites were visually assessed for:
Location – general location; includes a if confirmed by location model
Design Suitability – layout supports effective operations
Condition Rating – physical condition of building and site
Utilization – how well used is the facility
OpEX Rating – relative cost of facility operation
Observed Risk – noted if any observed
A recommended action is identified for each facility
Potential projects to be evaluated identified in appendix

22. Strategic Site Assessment Ratings
Continued…

23. Strategic Site Assessment Ratings

24. Next Steps for CPA Develop Space Planning Templates
Identify where further assessments are warranted
Condition
Perform feasibility studies of identified consolidation opportunities and relocate/rebuild options:
Identify available real estate,
Perform fit test,
Assess financial feasibility
Develop Investment Plan by Site
Capital (Improvements & Renewal)
O&M budget

25. Appendix

26. Horning Road Good location Leased Tired Too small RECOMMEND:
Develop a larger facility
Relocate some field crews from Alpine Point

27. Washington Good location Owned/leased Worn out RECOMMEND:
Tear down & rebuild or find new suitable site nearby

28. Neville Island Good location Leased
Not enough site area to park trucks; not fenced
Needs major refresh
RECOMMEND:
Find new suitable site nearby

29. New Bethlehem/Emlenton
Major rebuild/refresh both or consolidate
Owned
RECOMMEND:
Upgrade both or find new suitable site near the center

30. Uniontown Good location Leased Poor layout
Planning for additional staff
Needs major refresh
RECOMMEND:
Find new suitable site nearby (or evaluate office renovation in combination with Charleroi)