Distribution Best Practices Program Overview

Douglas Lapp

Director, Engineering & Construction

Enbridge Gas Distribution, Inc.

Chair, Distribution Best Practices Steering Committee

Distribution Best Practices Kick-off Meeting

Entergy New Orleans Gas Business Office

New Orleans, LA

January 17-19, 2012

1

Best Practices Benchmarking Orientation

Presentation Overview:

• Evolution of Best Practices Program

• Benchmarking Process

• Roundtable Overview

• Kick-off Meeting Objectives

2

Evolution of Best Practices Program

•Initiated by New Orleans Public Service in April 1990

•AGA assumed full responsibility in 1994; participation grew to over 60 companies

•Transmission Program was added in 1995; total participation grew to 80 companies

•LNG/Supplemental Gas Program was added in 2001; total participation grew to 152 participants

•In 2011, 128 companies participated

3

Distribution Best Practices Oversight

Transmission Measurement

Distribution Best Practices Steering Committee

Corrosion Control

Supplemental Gas

Operating Section Managing Committee(Oversight)

Distribution Construction & Maintenance

Distribution & Transmission Engineering

Underground Storage

Distribution Measurement

Plastic Materials

Utility & Customer

Field Services

Natural Gas Security

Environmental Matters

Safety & Occupational

Health

Gas Control

4

Subject Selection Process

AGA Technical Committees &

Distribution Best Practices

Participants

AGA Operating Section Managing

Committee

Distribution Best Practices Steering Committee

Finalized list of benchmarking subjects

Steering Committee Evaluation/Decision

List of Potential Subjects

5

Best Practices Benchmarking: A Continuous Process

Data Packet and Questionnaire Development

Data Collection/ Data Entry

QA/QC Review of

Preliminary Reports

“Leading Performers”

Selected

Final Data Reports

Published

Roundtable Discussions

Improvement Action Plan

1

2

3

45Innovative work practices

Improve operations and reduce costs

Identify processes of superior performing gas industry companies

6

7

6

Benchmarking Data Collected

Data Reports

• Collect statistical and cost data on operations and maintenance for each benchmarking topic

• Determine company effectiveness and cost efficiency based on productivity measures and service level measures

• Enables participating companies to perform internal data analysis to identify peer companies and potential top performers

• Data is collected online through the BESS tool (http://www.aga.org/Research/BESS/)

• BESS login information/instructions are sent to the BP representatives in early February

7

Information on Processes Collected

Questionnaires

• Collect information on the processes and procedures specific to each topic through mostly Yes/No and multiple choice questions

• Allow for the identification of trends in operational processes

• Provide companies with the opportunity to share experiences regarding new technologies and methodologies

• Responses are collected using the online tool Survey Monkey

• Links to each questionnaire are sent to the BP representatives in early February

8

Data & Processes Discussed

Roundtables

• Company practices and procedures are discussed in great detail

• Shared challenges are identified

• Roundtable participants discuss the practices their companies have implemented to successfully address the shared challenges

• Industry peers discuss realistic benefits that can be achieved, and note considerations that should be taken into account, with the implementation of each practice

9

Benchmarking: A Continuous Process

Distribute roundtable results 2 – 3 weeks after the roundtable the results are posted online

Roundtable Discussions Summer – Fall: Identify shared challenges and top practices

Follow-up ConferenceJune: Top performing companies selected by participants

Distribute data reports and responsesApril/May: Potential top performers are selected

Data Collection Feb/March: Data reports BESS, Questionnaires Survey Monkey

Conduct Kick-off Meeting January: All participants review & finalize program materials

Develop data packets and questionnaires June – Oct of previous year: Steering Committee task groups

10

Who Attends Roundtables

• Subject matter experts, which typically includes:

– Department managers

– Engineers

– First-line supervisors

– Team leaders

• Individuals who are familiar with your company’s processes and challenges

– Please note that this roundtable does not serve as a training session.

– Employees new to the subject area may not be able to speak to your company’s practices or identify practices your company can/should utilize. Those in that situation may not be able to contribute to the roundtable discussion as fully as others.

11

Roundtable Preparation

• The BP Program identified top-performing or unique practices companies develop presentations to explain their procedures and practices

• Roundtable participants should be familiar with the topic-specific reports and other information:

– data report and graphs

– questionnaire summary

– practices/processes that your company implements successfully

– challenges your company wants to address

• Have your business cards handy to exchange with others during networking

12

Objective of Kick-off Meeting

• Review and finalize 2012 data packets and questionnaires

• Provide overview of roles and responsibilities of Best Practices Program contacts

• Provide overview of online data collection tools

• Review data analysis tools and resources available

• Review deadlines for data submission and the 2012 program schedule

• Discuss locations for 2012 Follow-up Conference and roundtables

• Generate suggestions for future topics

Questions?