Restructuring Roundtable
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Restructuring Roundtable ___________________________________________________________________. Massachusetts Service Quality Standards for Electric and Gas Distribution Companies Judith F. Judson, Commissioner Massachusetts Department of Telecommunications and Energy April 29, 2005. BACKGROUND.

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Restructuring Roundtable ___________________________________________________________________

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Restructuring roundtable

Restructuring Roundtable___________________________________________________________________

  • Massachusetts Service Quality Standards for Electric and Gas Distribution Companies

  • Judith F. Judson, Commissioner

  • Massachusetts Department of Telecommunications and Energy

  • April 29, 2005


Background

BACKGROUND

  • Restructuring Act promulgated performance-based rates and mandated service quality standards

  • Rationale for SQ standards:

    • With PBR, incentive for companies to seek to maximize cost savings

    • Ensure utility does not cut costs to the detriment of service quality

  • D.T.E 99-84 established guidelines for service quality standards


Sq measurment enforcement

SQ MEASURMENT & ENFORCEMENT

  • Each Company submits an SQ report annually

  • Benchmarks: Company-specific based on historical performance

  • Penalties: Up to 2.0 percent of a Company’s revenue for failure to meet SQ benchmarks

  • Offsets: Company may offset monetary penalty for substandard performance in one measure with superior performance in a second measure (except odor calls)


Penalty measures

PENALTY MEASURES

  • Reliability and Safety55%

    • SAIDI and SAIFI (electric only)

    • Odor Calls (Gas only)

    • Lost work time due to accidents rate

  • Customer Service and Billing35%

    • Telephone Answering

    • Service appointments met

    • Meter reads

  • Consumer Division Statistics10%

    • Consumer Division cases

    • Billing adjustments


Reporting requirements

REPORTING REQUIREMENTS

  • Staffing Levels

  • CAIDI (electric only)

  • Poor performing circuits (electric only)

  • Restricted work days due to accidents rate

  • Property Damage

  • Line loss/unaccounted for gas

  • Capital expenditures

  • Spare parts policy

  • Accidents (reported within 24 hours)

  • Customer service guarantees


Results of current sq standards

Results of Current SQ Standards

  • $14 million in penalties collected since 2001

  • Majority of penalties collected due to substandard SAIDI/SAIFI performance in 2001, 2002

  • 2003 $0 penalties incurred

  • Gas companies have consistently met odor call benchmark

**Companies’ projections


Future of sq

Future of SQ

  • New Docket: 04-116; original Guidelines established in D.T.E. 99-84 only for 3 year term

  • Considering possible changes to existing SQ Guidelines

  • Comments received from Companies, Attorney General, Marketers, Unions, Consumer Groups


D t e 04 116 topics raised by commenters

D.T.E. 04-116:Topics Raised by Commenters

  • Offsets and Incentives

  • Odor Calls benchmark

  • Staffing Levels

  • Standardization of Benchmarking

  • Standardization of Definition of SAIDI and SAIFI


D t e 04 116 next steps

D.T.E. 04-116:Next Steps

  • Discovery questions

  • Technical sessions and/or Evidentiary hearings


Judith f judson commissioner

Judith F. JudsonCommissioner

Department of Telecommunications

& Energy

One South Station

Boston, MA 02110

(617) 305-3520 (voice)

(617) 345-9102 (fax)

[email protected]


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