METER INSTALLATION VENDOR MANAGEMENT NIPSCO - NORTHERN INDIANA PUBLIC SERVICE COMPANY
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1 METER INSTALLATION VENDOR MANAGEMENT NIPSCO - NORTHERN INDIANA PUBLIC SERVICE COMPANY Phil Winter Manager, Distribution Major Projects NIPSCO a division of NiSource Inc.
2 INSTALLATION VENDOR MANAGEMENT AGENDA» NiSource Portfolio / NIPSCO business unit» AMR Decision» NIPSCO Managed Project Vs. Itron Managed Project» Vendor Selection» Lessons Learned From Piloting» Vendor Management» Schedule Management» Project Issues» Workforce» Itron, NIPSCO Partnership Recap» Recap and comments and Questions
3 NISOURCE» NiSource is a premier regulated energy company with a distribution portfolio of companies that serve 3.8 million natural gas and electric customers primarily in seven states. NiSource transmission company serves other utilities and customers across 16 states.
4 NISOURCE PORTFOLIO» NiSource Gas Distribution Provide reliable and domestically produced natural gas to more than 3.3 million residential, commercial and industrial customers thru 60,000 miles of pipeline and infrastructure in seven states: Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana and Massachusetts.» Columbia Pipeline Group Deliver large volumes of natural gas to local utilities, industries and other customers across 16 states and the District of Columbia. Leveraging our network of about 15,000 miles of interstate natural gas pipelines, we transport natural gas supplies from a wide range of U.S. production basins to some of the nation s highest value energy markets. Also operate one of the nation s largest underground natural gas storage systems, capable of storing more than 600 billion cubic feet of natural gas.» NiSource Electric Operations (brand name NIPSCO) Provides reliable and affordable energy to 457,000 customers in 20 counties in northern Indiana. Operations include power generation, transmission and local distribution, as well as wholesale and electric transmission transactions. Includes both traditional and renewable generation sources, including natural gas, hydroelectric, wind, and coal generated supplies, providing a total system operating net capability of more than 3,000 megawatts.
5 NISOURCE COMPANIES BRAND NAMES» Gas Distribution Columbia Gas of Kentucky Columbia Gas of Maryland Columbia Gas of Massachusetts Columbia Gas of Ohio Columbia Gas of Pennsylvania Columbia Gas of Virginia» Combined Electric and Gas Northern Indiana Public Service Co. (NIPSCO)» Columbia Pipeline Group Companies Columbia Pipeline Group (Texas to east coast)
6 NIPSCO» Northern Indiana Public Service Company Headquarters in Merrillville, IN One of seven energy distribution company of NiSource (NYSE: NI) 786,000 natural gas customers and 457,000 electric customers across northern Indiana Largest natural gas distribution company and second largest electric distribution company in the state of Indiana.
7 NIPSCO AMR DECISION» Why did NIPSCO choose AMR? Business Case and Stakeholder Interest Driven Solid Business Case from Operational and Safety Benefits - O&M Savings Without Eliminating Jobs AMR is a Proven Technology Across the NiSource Companies Implementation Timeframe Safety Requirements of Front Line Force Eliminates Weather Impact on Monthly Reading
8 NIPSCO MANAGED PROJECT VS ITRON MANAGED PROJECT» Reasons for Hybrid Project Management Chosen at NIPSCO FDM Requirements Discussion and Implementation Installation Vendor Input Commercial Terms Input Lack of Experience Managing Mass Meter Change Outs Meter and ERT Liason
9 VENDOR SELECTION» Criteria Experience - Over 1 Million Meter / Endpoint Installation - Gas and Electric Meters Safety Performance Financial Stability References» Request for Proposal (RFP) Clear Project Scope Pre-Bid Meeting» Contingency Plan No matter how confident you are in your Contractor, Schedule, and Suppliers always have a back up - NIPSCO s Installation Contractor Change
10 LESSONS LEARNED FROM USING A PILOT PROGRAM» Customer Approximately 3,000 Customers Impacted AMR Notification Letter Found to be Confusing Because of the Date Listed 19 Calls to Nipsco Call Center 3 Scheduling calls to Vendor s Call Center» FDM Process is working, customers contacting vendor s Call Center and setting up specific appointment windows» Installation Contractor Speed Realized approximately 32 Meters Per Day, Per Installer» Meter Reading Verified Readings Completed 3,000 Meter Reads within 2 hours with Mobile Collector - Used to take 1 Person, 1 Month
11 VENDOR MANAGEMENT» Bidding Process Vs. Real Life Ensure Agreements are Documented into Contract - Schedule - Manpower - Processes Watch for Declining Service Issues, Such as: - Schedule Adherence - Process Break Downs - Resources Quality Management - A Solid Verification Process is an Absolute Must Pictures FDM Reviews 1 Becoming Indiana s Premier Utility
12 SCHEDULE MANAGEMENT» Setting the Schedule Allow for Input from the Installation Vendor Create a Workable Baseline» Managing the Schedule Hold all Parties Accountable Weekly Updates with all Stakeholders» What I Would Do Different Work Accountability into the Contract Engage Contractor in Face to Face Sessions while Creating Schedule 1 Becoming Indiana s Premier Utility
13 PROJECT ISSUES» Issues That Were Not Accounted For While Planning (Lessons Learned) Broken Gas Meter Index Screws - Certain Meter Manufacturers - Certain Climates Electric Meter Base Repairs - Customer Communications Creation of Meter Mix Ups - Also, Finding Meter Mix Ups Internal NIPSCO Communications to all NIPSCO Stakeholders 1 Becoming Indiana s Premier Utility
14 WORKFORCE» Why did NIPSCO Choose to Use IBEW Labor? Maintain Continuity with NIPSCO Labor Union - Ensures NIPSCO s Front Line Force that Installation Tech s are Qualified and Trained to Perform Work Win/Win for NIPSCO and IBEW Cost - Per NIPSCO s USW President This is a Win/Win for both NIPSCO and the IBEW - NIPSCO is not Required to Hire a Temporary Work Force for 3 Years and then be forced to Lay Off - Very Reasonable Hourly Rate Was Set With the IBEW along with a Customized Labor Agreement Electric Meter Box Repairs - Because NIPSCO is Using an IBEW Workforce We Were Able to Guarantee a 2 Hour Turn Around on all Repairs to Broken Meter Bases at Reasonable Hourly Rates 1 Becoming Indiana s Premier Utility
15 WORKFORCE» Why did NIPSCO Choose to Use IBEW Labor? Workforce Availability - IBEW has a Constant Flow of Available Resources - If IBEW Does Not Have Resources, Hiring Outside is Acceptable IBEW is Determined to Improve Their Brand - Very Supportive in Requiring Solid Safety Performance and Productivity Workforce Turnover - Attrition of Technicians has been an Issue - Continuously Hiring and Training 1 Becoming Indiana s Premier Utility
16 THE ITRON AND NIPSCO PARTNERSHIP» Common Goals» Process Development» Concentrated onsite Business and IT planning together» Helping Clarify role assignments» Statement of Work; clear expectations, responsibilities and delivery» Inventory planning of meters and ERTs» Reviewing ITRONS product roadmap» Escalation path for all parties» Onsite support» Sharing of Lessons Learned» Onsite Training Sessions» Trust and Collaboration Built Upon Experience and Shared Commitment
17 COMMENTS & QUESTIONS
18 THANK YOU
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