RP 3 Program Overview

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1 RP 3 Program Overview APPA Reliable Public Power Provider (RP3) Program 2017 Energy Connection Conference and Tradeshow Aaron Haderle & Alex Hofmann

2 Welcome to RP3

3 What is RP3? Reliable Public Power Provider (RP 3 ) program Peer evaluation of a utility s reliability, safety, work force development, and system improvement initiatives. SYSTEM IMPROVEMENT 25% RELIABILITY 25% Two main goals: 1. Help public power utilities perform an operational self check by benchmarking on a national level 2. National recognition of the excellent service our utilities provide to customers, their community leaders, state and federal regulatory agencies, and members of Congress WORK FORCE DEVELOPMENT 25% SAFETY 25%

4 How does the RP 3 Program Operate? RP 3 is an application based program supervised by the RP 3 Review Panel. The Panel meets twice in the fall (October and December) to review all of the applications, and once in the spring (during the E&O) for a business meeting.

5 Why is RP 3 Important? APPA s utility best practices program A way for utilities to achieve national recognition for following best practices A self check for a utility A clear path to long term operational sustainability for utilities A significant benefit for APPA member utilities

6 Why is RP 3 Important? SAIDI Values for RP3 Designated Utilities Versus Utilities With No Involvement in the Program Currently Designated RP3 Utilities Utilities with No Involvement in the RP3 Program

7 Why is RP 3 Important?

8 Why is RP 3 Important?

9 Why is RP 3 Important?

10 Why is RP 3 Important? Fitch Group: RP3 vs Non RP3 Ratings as Percent of Total Percent (%) of Total Rated Utilities Non RP3 Utilities as Percent RP3 Utilities as Percent Fitch Group Ratings NOTE: Fitch Ratings were found for 71 non RP 3 utilities and for 62 RP 3 utilities.

11 Where are the RP 3 Designated Utilities?

12 Congrats FL RP 3 Utilities! Fort Pierce Utilities Authority FL 2015 Diamond Lakeland Electric FL 2015 Diamond Beaches Energy Services FL 2017 Diamond Homestead Energy Services FL 2017 Diamond Keys Energy Service FL 2017 Diamond Ocala Electric Utility FL 2017 Diamond City of Tallahassee Electric Utility FL 2015 Platinum Kissimmee Utility Authority FL 2015 Platinum City of Leesburg FL 2017 Platinum

13 Applied vs Designated Applied Designated # of Application (Year 1) 2006 (Year 2) 2007 (Year 3) 2008 (Year 4) 2009 (Year 5) 2010 (Year 6) 2011 (Year 7) 2012 (Year 8) 2013 (Year 9) 2014 (Year 10) 2015 (Year 11) 2016 (Year 12) Application Year

14 RP 3 Program Metrics Average RP 3 Section Score by Size Small Medium Large Score Reliability Safety System Improvement Workforce Development Section

15 Communicating the Value of RP 3 There are also draft social media images:

16 Review Panel 2 Large utilities 2 Medium utilities 2 Small utilities 1 JAA/SA 1 Reliability Representative 1 Safety Representative 1 System Improvement Representative 2 Human Resources Representatives 2 T&D Officers 2 Safety Officers 2 System Planning Officers Total = 18 member Review Panel of your peers

17 Brief Application Overview You can do it! It will take work.

18 Use the Application Guide!

19 Reliability 25% Criteria Area Section Question Subject of Question A Reliability Indices Collection A1 A2 Maximum Point Value Monitoring and Tracking Reliability Data 2 Reliability Statistic Tracking 4 B Reliability Indices Use B1 Use of Service Reliability Indices 4 B2 Reliability Survey 2 Reliability 25% C Mutual Aid C1 National Mutual Aid Agreement 3 D Disaster Plan D1 Disaster Plan 4 E Physical Security E1 Physical Security 3 F1 Cyber Security Policy 1 F Cyber Security F2 Cyber Security Awareness 1 F3 Periodic Cyber Security Assessments 1

20 1.A.1 Monitoring and Tracking Data

21 1.A.2 Reliability Statistic Tracking

22 I.B.1 Indices Use (1/2)

23 I.B.1 Indices Use (2/2)

24 I.B.2 Reliability Survey

25 I.C.1 Mutual Aid

26 I.D.1 Disaster Plan

27 I.E.1 Physical Security

28 I.F.2 Cyber Security Awareness

29 I.F.3 Periodic Cyber Security Assessments

30 Safety 25% Criteria Area Section Question Subject of Question Maximum Point Value A Safety Manual A1 Safety Manual Use 2 A2 Safety Manual Directive 2 Safety 25% B Safe Work Practices C Benchmarking B1 Regular Safety Meetings 3 B2 Safety Rule Enforcement Policy 2 B3 Documented Job Briefings 2 B4 Safety Orientation Practice 1 B5 Accident Investigations 2 B6 Management Participation 2 B7 OSHA Refresher Training 2 B8 Automated External Defibrillators 1 B9 ARC Hazard Assessments 2 B10 Disaster Drills 2 Safety Index Benchmarking C1 2

31 Safety Overview Safety Manual Use, adoption, and directive Safety Work Practices Regular safety meetings, AED s, arc hazard, disaster drills, etc. Benchmarking APPA Safety Award or OSHA 300

32 II.A.1 Safety Manual Use

33 II.A.2 Safety Manual Directive

34 II.B.1 Regular Safety Meetings (1/2)

35 II.B.1 Regular Safety Meetings (2/2)

36 II.B.2 Safety Rule Enforcement Policy

37 II.B.3 Required Job Briefings

38 II.B.4 Safety Orientation Practice

39 II.B.5 Accident Investigations

40 II.B.6 Management Participation

41 II.B.7 OSHA Refresher Training

42 II.B.8 Automated External Defibrillators

43 II.B.9 Arc Hazards Assessments

44 II.B.10 Disaster Drills (1/2)

45 II.B.10 Disaster Drills (2/2)

46 II.C.1 Safety Index Benchmarking

47 Workforce Development 25% Criteria Area Section Question Subject of Question Maximum Point Value A Succession Planning and Recruitment A1 Demographics 3 A2 Knowledge Management 5 Employee Retention and A3 Recruitment 3 Workforce Development 25% B Employee Development and Recognition C Education, Participation and Service B1 Development Plans 3 C1 Written Education Programs 4 Networking and Professional C2 Development 4 C3 Membership and Service 3

48 III.A.1 Demographics

49 III.A.2 Knowledge Management

50 III.A.3 Employee Recruitment and Retention

51 III.B.1 Development Plans

52 III.C.1 Written Education Program (1/2)

53 III.C.1 Written Education Program (2/2)

54 III.C.2 Networking and Professional Development

55 III.C.3 Membership and Service

56 System Improvement 25% Criteria Area Section Question Subject of Question Point Value A Research & Development A1 Research and Development Program & Participation 3 System Improvement 25% B System Maintenance and Betterment C Financial Health B1 B2 B3 System Maintenance System Losses Planning Study C1 Capital OM Projects 5 C2 C3 Customer Owned Distributed Energy Resources 3 Financial Health Procedures or Policy

57 IV.A.1 Research and Development Program Participation (Slide 1/2)

58 IV.A.1 Research and Development Program Participation (Slide 2/2)

59 IV.B.1 System Maintenance (1/2) (Table on next slide)

60 IV.B.1 System Maintenance (2/2)

61 IV.B.2 System Losses (1/2)

62 IV.B.2 System Losses (2/2)

63 IV.B.3 Planning Study (1/2)

64 IV.B.3 Planning Study (2/2)

65 IV.C.1 Near Term Capital O&M Projects (1/2)

66 IV.C.1 Near Term Capital O&M Projects (2/2)

67 IV.C.2 Customer Owned Distributed Energy Resources

68 IV.C.2 Financial Health Procedures or Policies

69 Review & Application Process Applications due: September 30, 2018 Review Panel Taskforce: mid October 2018 Requests for clarification/information (RFIs) are sent to applicants: November 2018 Final Review: December 2018 Applicants receive notification of their application s outcome: January/February 2019 Official award/announcement: APPA s Engineering and Operations Conference in Colorado Springs, CO, 2019

70 Where to Start 1. Register for the online Application System Visit PublicPower.org/RP3 and click on the Application section 2. Read the RP 3 Application Guide All sections and RP 3 questions are explained 3. Assign one point person that will submit the application Many users can contribute to the application! 4. Complete each section Small utility may ask for help on specific sections from state association or joint action agency Large utility may divide the sections among different departments 5. Save and finalize each question, and Submit your full application Make sure to submit by September 30 th

71 RP 3 References Visit PublicPower.org/RP3 Application can be accessed at Call/ other RP 3 designated utilities Preview their application or just ask general questions (full list of designees is on the website) your questions to RP3@PublicPower.org Call Christina: , Engineering Services

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