staffing and outsourcing community insights conference august 21-23, 2013 madison, wi 1 2013...
TRANSCRIPT
Staffing And Outsourcing
Community Insights Conference
August 21-23, 2013
Madison, WI
1
2013 Electric T&D Benchmarking
2
Agenda
◼ Overview Industry Perspective (SCQA)
◼ 2014 Benchmarking Results Functional-specific findings
3
Overview
Situation
• Staffing is one of the key levers for completing work and achieving goals
• Labor costs are the largest component of O&M costs, and large part of capital costs as well
Complication
• Workload levels shift with changes in the economy
• Training requirements for engineers and skilled field workers are extensive
Question
• How can a utility balance the need for a stable workforce with the flexibility to adjust to the swings in workload?
Answer
• A combination of skilled in-house staff with contracted resources
• Careful planning for long-term hiring, along with maintaining relationships with contractors.
Where Are We: 1QC Industry Perspective for Staffing
4
Benchmarking Results
5
Staffing per 100,000 Customers (Excluding Outsourcing and Third Party Agencies)
6
Transmission & Distribution Distribution
Staffing & Outsourcing Pg 6, 10Source: SO15, SO20, SO25, ST5
Mean 107
Quartile 1 85
Quartile 2 103
Quartile 3 114Mean 80
Quartile 1 62
Quartile 2 83
Quartile 3 92
Staffing per $100,000 Assets
7
Transmission & Distribution Distribution
Staffing & Outsourcing Pg 7, 11Source: SO15, SO20, SP25, DF70, TF65
Mean 28
Quartile 1 23
Quartile 2 27
Quartile 3 33
Mean 21
Quartile 1 17
Quartile 2 22
Quartile 3 26
Staffing: FTE per $100,000 Assets
8
Substations Transmission
Staffing & Outsourcing Pg 16, 20Source: DF70, SO20, TF65, SO25
Mean 12
Quartile 1 7
Quartile 2 12
Quartile 3 18
Mean 16
Quartile 1 12
Quartile 2 14
Quartile 3 19
Wage Rates
9Staffing & Outsourcing Pg 3-5
Source: SO10
Wage rates for journey line workers and electricians are comparatively close across companies.
Substation JourneyLevel Electrician ↓
↑ Transmission JourneyLevel Line Worker
↑ Distribution JourneyLevel Line Worker
Mean $39.30
Quartile 1 $37.62
Quartile 2 $39.46
Quartile 3 $41.97 Mean $38.21
Quartile 1 $37.32
Quartile 2 $38.76
Quartile 3 $39.72
Mean $39.13
Quartile 1 $37.49
Quartile 2 $39.10
Quartile 3 $41.28
Outsourcing: Percentages
10
Outsourcing varies significantly. Vegetation management is the most heavily outsourced activity, followed by field construction.
Distribution Function 23 30 31 32 38 40Field construction & maintenance 40% 40% 15%Trouble & Operations 20%Vegetation management 100% 100% 98% 100% 100% 100%Engineering & Design 10% 13%Dispatch 4%Damage prevention & facility locating 100% 53%Other 13%
Substation Function 30 31 32 359 40
Field construction & maintenance 10% 41% 15% 43% 0%
Engineering & Design 15% 25% 69% 8%
Transmission Function 21 23 30 31 32 359 38 40
Field construction & maintenance 100% 100% 65% 30% 99% 50%
Trouble & Operations 0%
Transmission ops center 40%
ROW & Vegetation management 100% 100% 97% 0% 100% 100%
Engineering & Design 6% 30% 81%
Damage prevention & facility 100%
Staffing & Outsourcing Pg 14, 18, 22Source: SO15, SO20, SO25
Outsourcing of Field Work: percentage of companies that outsource some of the work
11
SubstationsCivil construction 92%Electrical Construction 69%Transformer maintenance 15%Breaker maintenance 15%Relays or control maintenance 15%Ground maintenance or vegetation management
85%
Other 15%
Staffing & Outsourcing Pg 40, 43, 45Source:SO150, SO155 SO160
TransmissionPole or tower inspections 42%Pole treatment or reinforcement 67%Pole replacements 67%Tower construction 67%Tower maintenance 58%Tree trimming or Vegetation management
92%
Other 42%
Most utilities outsource at least some vegetation management. Substation breaker and relay maintenance is almost entirely done in-house.
DistributionStreet lighting installation 64%Street light maintenance 64%Pole replacements 71%Pole inspection 93%Pole treatment or reinforcement 79%Tree trimming 93%New service installations 43%Overhead line construction and relocations 64%URD underground line construction and relocations 50%Concrete manhole conduit system construction and relocations
79%
Facility locating 64%Soft surface or yard restoration 50%Hard surface or paving restoration 71%Design work 64%Other 21%
Span of Control: Field Construction & Maintenance FTEs per Managers & Supervisors
12Staffing & Outsourcing Pg 13, 17 ,21
Source: SO15, SO20, SO25
FTEs per managers and supervisors are similar in distribution and substation workforces. Transmission has smaller spans of control.
Substation ↓
↑ Distribution ↑ Transmission
Mean 8
Quartile 1 6
Quartile 2 8
Quartile 3 9
Mean 9
Quartile 1 8
Quartile 2 10
Quartile 3 11
Mean 5
Quartile 1 4
Quartile 2 4
Quartile 3 4
INCREASING/REDUCING OVERALL STAFFING AND WHY
Categories
Maintaining 22, 30, 3231 Our primary goal is to maintain staffing levels taking into account workload levels
for different types of crews, attrition and retirements, and the time for new hires to get through the apprentice training program. Substation: Adding to meet project load
37 As the workforce as aged and retired, new training classes have been put in place to replace both design and field personnel. Contractor resources are used to supplement large projects and proactive replacement work (e.g., cable and pole).
27 We are maintaining current levels of staffing to meet system reliability, to maintain a maximum level of outsourcing, to meet customer in-service commitments and to plan for retirements.
Increasing 359 Adding, increased capital plan
40 Yes, two temporaries and contract services in short term to balance workload.
24 We are in the process of adding additional staff to perform system hardening approved by the BPU
13Staffing & Outsourcing Pg 55
Source: SO195
Thank you for your Input and Participation!
14
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