January 27, 2010 – EDITORIAL PUBLISHED IN THE ALAMEDA JOURNAL IN THE 01/27/11 EDITION

A Blueprint for Our Electric Utility

by Girish Balachandran

While it may seem a long time back, it was only 2 years ago that the Public Utilities Board set a new course for our City’s municipal utility. It approved a new name, a purpose statement, and ten strategies and five value metrics that would underlie a refocus on the core electric business. Customer satisfaction and community value are the primary metrics by which Alameda Municipal Power (AMP) is to measure its progress.

These foundational tenets were outcomes of the Board’s Annual Planning Workshop, arguably one of the most significant Board meetings of the year. Once again, I invite you to attend the Board’s 2011 Annual Planning Workshop to be held Monday, January 31, at 4:00 p.m. at the AMP Service Center, 2000 Grand Street, when the Board will review our progress, engage in a dialogue to evaluate future risks and opportunities, and provide strategic direction to AMP.

Much progress has been made since that time. Just during the past year, all of AMP’s debt was refinanced, and both Fitch Ratings and Standard & Poor’s upgraded AMP’s bond ratings. Our new web site was launched, and we’re continuing to improve the site, thanks to customer feedback. Through our Key Accounts Program, we reached out to our largest customers to emphasize energy efficiency, emergency preparedness, and the value of our green power. AMP completed an agreement for power from the soon-to-be-constructed Butte County landfill-gas-to-energy (LGTE) facility. Also of note were AMP’s receipt of the APPA Energy Innovator Award and the Governor’s Environmental and Economic Leadership Award, both for our commitment to LGTE technology. The reliability of our 115-kilovolt transmission facilities was boosted through aggressive maintenance; lines serving Bay Farm Island were upgraded; and enhancements were made to our system monitoring and control systems.

So, what can we anticipate for the future?

The electric utility industry continues its rapid evolutionary change at the global, national, and local levels. This change is being driven by climate regulation, rapid energy technology improvements, and increased customer expectations. Advances in renewable power, Smart Grid, electric vehicle adoption, and a hyper-connected customer base will impact us. This presents a landscape that has many risks and opportunities. These changes will influence - sooner or later - in deep-seated ways, our internal and external operating environment. It has the potential to impact all aspects of providing electricity.

As we look out at this landscape, we are confident that we know what needs to be done and how to do it. But things change. Do current business strategies and operational procedures meet current and future needs and demands? Are they continuing to add value to our customers and the community? Will they tomorrow? Are we, both as an organization and as individuals, growing and preparing for inevitable change?

The Workshop will continue an ongoing conversation with the Board related to these future strategic issues and developing a well thought out blueprint. With dialogue comes alignment. And through alignment comes the ability to respond to our risks and opportunities in the most effective manner possible. The Workshop provides a means for linking Board policies with strategic initiatives. It allows for thoughtful reactions to a changing utility environment. It provides an opportunity for the prioritization of limited resources and a balanced application of assets and capabilities. And it ensures effective communication and sound development of goals and work plans. The Workshop will address the expectations of our stakeholders – our 34,000 customers, our City organization, and our employees.

I look forward to seeing you on the 31st and engaging with all of you on how to best provide service excellence in the New Year.