2015Strategic Plan

Turlock IrrIgaTIon DIsTrIcT

Introduction-Change is an inevitable function of time. Just look at the region served with water and power by Turlock Irrigation District, and how it has progressed since TID’s formation in 1887.

A region that was seasonally dry now bears a variety of crops essentially year-round. People who once used lanterns to light their homes began to reap the benefits of affordable and reliable electricity. A few businesses transformed into an economic engine that produced jobs and spurred growth. People came to the region and never left. Families grew. Opportunities multiplied. The good times were good, and the bad times showed people how resilient and resourceful they had grown to be.

While many played a role in these changes, TID’s formation helped pave the way for all of the above. TID’s role in that positive change gives our organization a sense of pride, but not a spirit of complacency because change remains inevitable.

Change at TID occurred in the past. It is occurring now and it will continue into the future. Whatever the changes, small or large, decisions must be strategic, they must be planned and they must fit as part of a broader picture. Above all, any change at TID must be acceptable to the hundreds of thousands of people we serve.

This Strategic Plan attempts to outline the next five years of progressive actions TID will take to position us for the future. We may not be able to see what is around every corner, but we shall survey the changing landscape and plot our best course. In forging ahead with this plan, TID will proactively adopt changes to benefit TID customers, as well as implement necessary changes to adapt to the changing world.

MiSSiOnTID will provide reliable and competitively priced water and electric service, while

being good stewards of our resources and providing a

high level of customer satisfaction.

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» Leverage existing and future technologies to benefit its customers

» Maintain competitive water and electric rates

» Maintain a reliable water supply

» Maintain reliable electric service

» Undertake additional efforts to prove itself as trustworthy and transparent

» Partner with others in an effort to foster better and more frequent regional collaboration

» Increase efficiencies of its resources, infrastructure and employees

» Foster a culture of accountability

» Make bold, informed, proactive decisions in the spirit of innovation

» Bolster employee morale by developing a culture of praise and value

» Rise to meet and exceed evolving customer expectations and needs by promoting a customer-centric culture

» Approach efforts, initiatives, problems, solutions and decisions in a strategic and forward-thinking manner

» Further develop its highly-skilled, specialized workforce

Vision-With its mission as a foundational element of all its actions, T ID sees a future where it is poised to…

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Reliability T ID plans, builds and maintains its water and

electric systems to reliably serve its customers.

cOre DiStrict Values

affoRdability T ID provides stable,

competitive rates for its customers.

StewaRdShip T ID provides leadership in managing its resources and the associated environment.

ViSionaRyT ID proactively

balances near-term decision making

with the long-term well-being of its

customers.

SafetyT ID ensures a safe

environment for employees and customers.

Quality employeeST ID attracts and retains

highly-skilled and experienced employees.

Community VitalityT ID promotes the economic growth and well-being of the

communities within the region it serves.

loCal ContRol Decisions made by local people to address local

needs are essentia l to T ID’s continued success.

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STRENGTHS

OppOrtunities

WEAKNESSES

ThreaTs

Strengths

Opportunities

Weaknesses

Threats

• TID is a trusted and longstanding member of the community since its inception in 1887.

• TID has some of the most senior water rights in California, which has enabled it to provide reliable water and power.

• TID has a highly-skilled, experienced, and loyal workforce.

• TID has built and developed a diverse portfolio of electric assets and, as a result, it is able to provide customers with reliable power at competitive rates.

• TID’s location in the Central Valley compounds the ongoing challenge to attract and retain a technical workforce for a highly-specific industry, making succession planning difficult.

• California’s political landscape and the location of major population centers make it difficult for San Joaquin Valley interests to find influential and vocal advocacy partners.

• TID needs to become more dynamic as technology accelerates and as customer needs change.

• TID’s aging water and electric systems will require significant investments to maintain continuity of services, and these necessary improvements will increase debt and affect rates.

• TID can enhance its billing systems and leverage advanced metering technologies to improve service to customers.

• TID can formalize the strategic planning process as a matter of good policy.

• TID can develop new customer programs and utilize new technologies to enhance the customer experience.

• TID can optimize its energy resources portfolio to better leverage its means of providing reliable power at competitive rates.

• Movements toward distributed generation, energy storage and other mandates or trends will require TID to change its longstanding business model.

• TID’s water supply is mostly dependent upon weather, which is volatile and impacts the ability to provide water and to generate power.

• TID’s infrastructure must be upgraded continually to meet current and future physical and cyber security requirements.

• TID’s water and power operations are always susceptible to changes in state and federal laws and regulations.

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OPerating Strategies

Five operating strategies have been identif ied as points of emphasis in T ID’s strategic planning process. The goals for each strategy are detailed on the following pages. The operating strategies are:

Water anD electric SuPPly anD

DiStributiOn

gOvernMent/ cOMMunity relatiOnS

cuStOMer Service

Finance anD rateS

WOrkFOrce

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Strategy : Water and Electric Supply and Distribution

The water and electric infrastructure that TID has developed over decades is a key reason why TID has been able to provide reliable services at competitive rates.

The Operating Strategy for Water and Electric Supply and Distribution is:

Maintain and enhance T ID’s water and electric resources and customer distribution systems in a sustainable manner.

Seven business Goals have been identified to best implement this strategy:

1. Continue to preserve and protect TID’s water rights.

2. Continue evaluating opportunities for additional storage of water resources.

3. Develop a long-term plan to address climate change mandates by October 31, 2015.

4. Develop a Water Master Plan (supply and distribution) to address the following by December 31, 2015:

a. Changes and trends in water distribution and on-farm irrigation technology

b. Levels of service

c. Modernization

d. Water conservation

5. Maintain the electric distribution System Average Interruption Duration Index (SAIDI) of 93 minutes

over a five-year rolling average.

6. Improve water delivery efficiency by 5 percent per year over the next three years.

7. Develop an Enterprise Risk Management Plan by December 31, 2015.

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Financial stability is an important strategic element because it allows the possibility for the goals to be pursued and achieved in other elements of strategic planning.

The Operating Strategy for Finance and Rates is:

Provide valu e to customers through f inancial stability and competitive rates.

four business Goals have been identified to best implement this strategy:

Strategy : F inance and Rates

1. Maintain bond ratings.

a. TID – A+

b. JPA – AA-

2. Rates will be competitive with comparable

peer groups.

a. Electric Rates

i. Sacramento Municipal Utility District

ii. Pacific Gas & Electric Company

iii. Modesto Irrigation District

iv. Merced Irrigation District

b. Water Rates

i. Modesto Irrigation District

ii. Merced Irrigation District

iii. Central California Irrigation District

iv. South San Joaquin Irrigation District

v. Oakdale Irrigation District

3. Net income at a level to fund depreciation

within five years.

4. Develop a rates policy by December 31, 2016.

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TID’s workforce is an essential component to successful operations that benefit customers.

The Operating Strategy related to the Workforce is:

Maintain a customer- focused, innovative, loyal, productive and skilled workforce.

Seven business Goals have been identified to best implement this strategy:

1. Develop a succession plan template by July 1, 2015, with final results by December 31, 2015.

2. Expand upon the supervisory/manager training program by December 31, 2015.

3. Research and evaluate needs in changing workforce, and report back to management team by August

2015 with recommendations.

4. Conduct a TID Board of Directors/staff workshop regarding Board policies by December 31, 2014.

5. Conduct an annual, four-hour governance training for the TID Board of Directors, including a Board self-

evaluation and a staff evaluation of the Board.

6. Conduct a TID Board of Directors retreat/workshop biannually to discuss strategy.

7. Provide industry education to the TID Board of Directors.

Strategy : Workforce

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There are many opportunities for TID to improve and modify the services it provides to customers and the means in which service is provided. These improvements will likely lead to a higher level of customer service.

The Operating Strategy for Customer Service is:

Provide quality customer care and service in a responsive and professional manner.

two main business Goals have been identified to best implement this strategy:

Strategy : Customer Service

1. Implement new electric Customer Information System (CIS), driving business process changes by

December 31, 2017.

2. Establish biannual customer satisfactory survey by December 31, 2015.

a. First survey as a baseline

b. Goal to maintain/improve in subsequent surveys

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Because state and federal regulations affect TID’s water and power operations, there is a need to be heavily involved with the lawmakers, regulators and the community to educate them on related issues and advocate on behalf of TID and its customers.

The Operating Strategy for Government and Community Relations is:

Continue to improve local, state and federal relations through advocacy, civic involvement and partnerships.

three main business Goals have been identified to best implement this strategy:

Strategy : Government/Community Relations

1. Benchmark program/resources for government relations with comparable peers by April 30, 2015.

2. Benchmark program/resources for community relations with comparable peers by July 31, 2015.

3. Benchmark and increase Board/staff community involvement by 20 percent per year starting in 2015.

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