Transcript Document

Citizens’ Academy
Kathy Viehe
GRU Interim General Manager
April 15, 2015
The Basics
 GRU is a multi-service, communityowned utility providing electric, water,
wastewater, natural gas and
telecommunications services
 Mission: To provide safe, reliable,
competitively priced utility services in
an environmentally responsible
manner to enhance the quality of life
in our community
 Core Business Values: Delivering
Customer Value through Safety,
Efficiency, Environmental
Responsibility and Professionalism
Measures of Success
 Service reliability compares well
 Safe drinking water
 Responsive to customers – local call center,
employees live here
 Natural gas rates among lowest in the state
 Electric rates are high, but aggressively pursuing
cost reductions and revenue enhancement
 Excellent financial standing
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GRU is a Big Business
 $413 million annual operating budget
 $1.6 billion in assets
 $948 million outstanding debt

Typical for a generating/multi-service utility
 Among the highest bond ratings for municipal utilities
from Fitch, Standard & Poor’s, and Moody’s
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The Challenge: Electric Rates
How Did We Get Here?
 Lower-than-forecast customer growth
 Lower-than-forecast electric sales
 Loss of wholesale sales
 Seminole contract
 Market sales
 Lower energy use in Florida and nationally
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How Did We Get Here?
 Customer conservation combined with GRU
conservation programs
 Federal standards improving appliance efficiency and
state building codes
 Addition of distributed generation (Solar Net
Metering)
 Loss of Business Partners’ Rate discount
 Increased expenses (O&M, personnel)
 Integration of new generation (GREC PPA)
Electric Sales (MWh)
O&M Expenses: Past 10 Years
2015 Business Plan
 Focuses on three key areas:
 Maintaining our financial strength
 Providing excellent service
 Developing engaged and proficient employees
 Major focus on cost containment and increasing
revenues
 South Energy Center expansion
 Wholesale sales
 Providing new services/products to customers
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Hot Topics
 EPA regulation of carbon
dioxide
 Managing water resources
 Regulatory compliance
with wastewater standards
 General manager search
Carbon Regulation
 EPA’s proposed “Clean Power Plan” calls for Florida
utilities to reduce carbon emissions by 38 percent by
2030
 Concerns among municipal utilities:
 Technical issues
 No credit for previous efficiency and emission control upgrades
 Potential effect on customer bills
 GRU is tracking the policy’s progress and working with
other utilities to express concerns
Water Management
Consumptive Use Permit
 20-year permit approved in
September authorizing
groundwater withdrawals up to
30 mgd, which is the same amount
permitted since 2009
 Project 25 percent increase in
customers over this period
 Groundwater withdrawals mitigated
due to customer conservation
efforts, increased use of reclaimed
water and aquifer recharge projects
Wastewater Regulatory Compliance
Biosolids Recycling
 Currently converted into
fertilizer and applied to a
local farm to supplement
farming needs
 Estimated cost of $23 million
to change disposal method
to comply with regulations
 Dewatering facility under
construction
General Manager Search
 City Commission interviewed six candidates in
late March
 Pool narrowed to three finalists during April 2
Commission meeting
 Discussions will continue April 16
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UF Energy Supply
 GRU provides water and natural
gas service to UF
 Also provides electricity offcampus, making UF one of our
largest customers
 UF’s steam agreement with Duke
Energy expires soon
 GRU stands ready to assist UF
with its on-campus electrical
needs
Employee Recruitment & Retention
 Currently more than 800 GRU employees
 Challenges:
 Many experienced, long-term employees set to retire
 Lack of depth in workforce; expectation to do more with less
 Goal:
 Develop and implement ongoing succession-planning
process to address current and future talent needs in order
to continue providing safe, reliable service for our customers
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The GRU Bill
 Can include the following utility services:
 Electric
 Water
 Wastewater
 Natural gas
 Also can include City of Gainesville
services:
 Stormwater
 Garbage/refuse
 The quiz: How many kWh did you use
last month?
 Know your bill
Join Our Advisory Committee
 New advisory committee to
help GRU with customer
communication efforts
 Accepting applications
 Sign up at gru.com/ccag
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Employees: The Core of Our Business
 “I AM GRU” campaign introduces the community to one of our biggest
assets – our employees
 Promotes GRU services while encouraging two-way communication
 Addresses four Business Plan priorities: improve customer trust, adapt to
customers’ changing demands, reduce electric system revenue
requirements and improve employee engagement
Questions?