Power of Community - Pedernales Electric Cooperative

Working to Better Serve You

Thank you to the PEC members who provided input on the PEC Mission Statement and Strategic Issues. After reviewing and considering that member feedback, the Board voted Jan. 24 to adopt the Mission Statement and Strategic Issues.

PEC Mission Statement and Strategic Issues

BOARD APPROVED JAN. 24, 2011

Mission Statement:

1. Financial Issues

   1. Corporate Financial Model
      1. Develop and implement a rigorous corporate financial model for financial analysis, forecasting, planning, and reporting. This decision support system should provide timely insight into the financial implications of strategic and operational decisions.
   2. Chief Financial Officer
      1. Develop and implement succession plan for CFO, with strong executive leadership skills and capable of process restructuring, in conjunction with hiring of CEO.
      2. Recruit, develop and retain diverse financial expertise and advanced capability with consideration of Capability Maturity Model Integration (CMMI) or similar standard.
      3. Emphasis on analytical, budgetary, debt management, cost containment, ROI estimating and other analysis as required.
   3. Budgeting and Financial Controls
      1. Management of a fair and equitable capital credits policy.
      2. Manage budget variance to actual and identify and incorporate proposed adjustments and improvements into future budgeting.
      3. Monitor PEC’s performance to industry benchmarks and identify opportunities to improve efficiency.
      4. Implement financial controls to assure asset responsibility and to safeguard Member’s money.
      5. Explore the feasibility of restructuring the Cooperative’s debt.
      6. Perform a Cost/Benefits analysis of major programs, functional processes and services and prioritize competing initiatives.
      7. Develop a mechanism for recommended improvements in operational efficiency and financial management policies.
      8. Align and monitor the Cooperative’s budget and ensure sustainability of net income.
      9. Monitor and review Member assistance programs, credit and collection plans and write off policies against measurable results.
   4. Financial Ratios
      1. Monitor and achieve financial targets that are consistent with the Cooperative's goals and objectives.
      2. Monitor and improve credit ratings objectives of the Cooperative.
   5. SAP (LINKS) Implementation
      1. Maintain oversight responsibility, on-time delivery of the SAP (Links) system and achievement of PEC operational readiness coincidental with final acceptance of all contractual terms and conditions.
   6. Procurement and Purchasing
      1. Develop, recruit, train and implement procurement management skill sets.
      2. Efficient management of procurement and purchasing decisions for major expenditures and investments.
      3. Require efficient management of all post awarded contracts.

2. Rate Issues

   1. Rate Design
   1. Reevaluate existing cost-of-service and rate structures with a focus on efficiency, equity, and fairness, the current business environment, and high quality service through low-cost competitive rates.
   2. Design rates to support energy efficiency, Demand Side Management (DSM) and distributed generation demanded by Members.
   3. Maintain unbundled rate structures to ensure accountability to Members by accurately passing through power purchase cost and the Cooperative’s cost of power delivery.
   4. Develop a lifeline rate structure for qualified Members.
   2. Rate Concerns
      1. Rate design criteria shall be established by the Board.
      2. Develop transparency on rates issues, and compare PEC’s rates with other providers.
      3. Demonstrate PEC’s competiveness and improve communication on those comparisons.
      4. Inform Members about the rationale behind the rate structures. Develop a long term communication plan with measurable results to communicate rates in a method that is simple and understandable.
      5. Ensure predictable, stable low-cost competitive rates for Members.

3. Employee Issues

   1. Management
      1. Hire a CEO who understands the Cooperative model, recognizes the issues the Cooperative currently has before it, is an effective change agent and understands the unique role of PEC with its communities and employees.
      2. Launch an effective communication plan to address re-structuring and re-alignment.
      3. Reorganize the management structure to identify and develop personnel who have the leadership skills which best address the strategic goals and objectives of the Cooperative as set by the Board and produce measurable results tied to those goals.
      4. Ensure that the Board and management are working together to provide a creative, constructive and safe working environment for the employees and Members.
      5. Develop a plan, to improve trust between employees, the Board and upper management, to establish a unified PEC team.
      6. Implement the actionable findings from Somerset Guild research and measure the results.
      7. Create an environment for accountability that will build and improve the Cooperative through ongoing assessment and evaluation.
   2. Employees
      1. Restructure the organization utilizing attrition and realignment of duties.
      2. Prepare a staffing plan based on metrics consistent with the Cooperative’s goals and objectives and which will attract loyal high quality, progressive minded management and employees in a financially responsible manner.
      3. Improve PEC’s employee’s effectiveness, accountability and efficiency.
      4. Implement changes with minimal disruption to Member operations.
   3. Compensation and Training
      1. Develop a comprehensive compensation plan, which ensures that PEC offers competitive compensation, benefits and professional development to retain valued employees.
      2. Develop ongoing training for employees to understand the Cooperative business model and its application to serving the best interests of the Membership.
      3. Ensure that the management and executive staff receives the training to manage changes at PEC and within the energy industry.

4. Organizational and Operational Issues

   1. Facilities
      1. Perform a full review of all facilities in which PEC has a presence to determine if a more cost-effective method exists to maintain PEC’s link to the community.
   2. Organization Functions
      1. Effectively educate Members on what it means to be a Cooperative and how the Cooperative difference impacts Member’s value.
      2. Create an efficient forward thinking organization prepared to address future challenges.
      3. Perform a full review and analysis of the management and organizational structure of PEC to ensure the right people are in the right places for maximum effectiveness.
      4. Implementation of Members Bill of Rights and bylaws into organizational policies and procedures.
   3. Operations Functions
      1. Identify and develop sound business cases for cost-effective outsourcing opportunities.
      2. Coordinate decision-making processes to increase overall efficiency.
      3. Update policies and procedures manual to ensure the best business practices are being implemented.
      4. Establish meaningful performance metrics for controlling costs and improving productivity.
      5. Complete an operational benchmarking analysis and develop companywide process improvement plan and strategy.

5. Communication Issues

   1. Communications Department
      1. Develop, train, and recruit effective, high performance individuals to elevate PEC’s internal and external communications.
      2. Yield a greater Member understanding of cooperatives based on trust with an image of PEC as a desirable energy partner.
      3. Develop and implement an effective communications strategy, both internally and externally, which is focused on PEC’s policies, procedures, directives and initiatives.
      4. Review the communications department structure and activities for efficiency improvements.
   2. Strategies
      1. Launch, maintain and update newly designed website and implement metrics to measure customer satisfaction, usage, and satisfaction of cost-efficiency goals through alternate billing, and other categories.
      2. Develop cost-effective marketing strategies for PEC.
      3. Assess Member needs and expectations through surveys and develop a plan to communicate to the membership those findings and action plans to address them.
      4. Communicate that PEC is a leader among the Cooperative in openness and transparency.
      5. Develop and improve a cohesive message in our communication efforts with policymakers, Members, stakeholders, media and the energy industry regarding PEC’s strategic issues and image.
      6. Establish a plan for communicating emergency and disaster preparedness.
      7. Develop a strategy toward proactive communications with Members, employees and media.
      8. Develop a plan to respond to questions raised by Members in meetings in a timely manner.
      9. Highlight achievements of cooperatives and reinforce the value that PEC’s business model provides for the community.

6. Power Supply Issues

   1. Power Supply Providers
      1. Coordinate and integrate the Cooperative’s procurement of supply and demand side resources and incentives.
      2. Examine current and prospective power supply obligations and provide rigorous analysis of provisions of those agreements.
      3. Maximize the benefits and exercise effective management over long-term power supply contracts.
      4. Understand the implications of opting into retail competition or complying with legislation requiring retail open access with respect to the Cooperative's obligations under the longterm power supply agreements.
      5. Develop a financial model of the Cooperative’s wholesale power purchase agreements to evaluate alternative resource management decisions.
   2. Power Supply Strategies
      1. Develop a least cost integrated resource plan to achieve the renewable energy and other energy efficiency supply portfolio goals.
      2. Establish and develop a long-term power supply plan which yields a stable and affordable energy supply for the Membership by evaluating all sources of power and new technology.
   3. Demand Side Management
      1. Develop a portfolio of Demand Side Management (DSM) choices for Members in all customer classes.
      2. Solicit Member feedback on the long-term energy resource plan to better manage Cooperative costs and retail bills, including, energy efficiency as a substitute for traditional generation.
      3. Explore collaborative partnerships with new energy sources.
      4. Revise and refresh renewable energy policies.

7. Member Services Issues

   1. Reliability, Customer Service and Cost
      1. Provide safe reliable low cost electric service to the Cooperative’s Members.
      2. Provide high quality customer service and reliability while balancing costs.
      3. Maintain Customer Service as the interface with the Members for problem solving and resolution.
      4. Review the criteria and results of the JD Powers survey on reliability and rates then develop a plan for action on the findings.
      5. Review alternative sources for customer satisfaction information (Touchstone, CFC, NRECA, the Cooperative website or similar credible other survey organizations).
   2. Membership Involvement
      1. Establish an effective process for Member input on Cooperative products and services which supports Member control of Cooperative.
      2. Deploy an ombudsman position to advocate for member interests or problems associated with Member relations.
      3. Educate Members on Cooperative plans and goals and the business model.
      4. Implement new bylaw changes and Member’s Bill of Rights.
      5. Review and enhance new services policies including credit checks for deposit requirements, and line extensions.
      6. Establish a paperless billing option.
      7. Initiate process improvements that result in financial cost reductions to members.