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CHRIS BIEBER VICE PRESIDENT, ENGINEERING. M E M P H I S L I G H T, G A S A N D W A T E R D I V I S I O N. M E M P H I S L I G H T, G A S A N D W A T E R D I V I S I O N. WHO WE ARE. Memphis Light, Gas and Water. Founded in 1939, nation’s largest three-service public utility

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chris bieber vice president engineering
CHRIS BIEBER

VICE PRESIDENT, ENGINEERING

M E M P H I S L I G H T, G A S A N D W A T E R D I V I S I O N

M E M P H I S L I G H T, G A S A N D W A T E R D I V I S I O N

who we are
WHO WE ARE

Memphis Light, Gas and Water

  • Founded in 1939, nation’s largest three-service public utility
  • Customers
      • 422K electric
      • 315K gas
      • 253K water
  • Peak Demand
      • Electric = 3,436 MW
      • Gas = 631,058 MCF
      • Water = 342 MGD
  • Electricity supplied by the Tennessee Valley Authority (TVA), TVA’s largest customer
  • Natural gas is transported by three pipeline companies: Texas Gas Transmission Corp., CMS Trunkline Gas Co. and ANR Pipeline Co.
  • Water comes from one of the largest artesian water systems in the world
  • Annual revenues approx $1.7B, purchased power & gas costs of $1.3B
  • Approx 2700 Employees, 12 work reporting locations.
slide3

The Case for Excelling at Crisis Management

M E M P H I S L I G H T, G A S A N D W A T E R D I V I S I O N

Recoverers vs. Non-Recoverers

Source: “The Impact of Catastrophes on Shareholder Value” by Rory F. Knight & Deborah J. Pretty

CAR% - Cumulative Abnormal Returns percentage - Sum of the differences between the expected return on a stock and the actual return that comes from the release of news to the market.

slide4

STAGES OF CRISIS MANAGEMENT

M E M P H I S L I G H T, G A S A N D W A T E R D I V I S I O N

Preparedness

Planning to deal with the consequences.

Response

Immediate action to minimize consequences (stop the bleeding).

Recovery

Returning to normal operations.

Mitigation

Reducing probability and/or consequence.

slide5

EMA

CRISISMANAGEMENT PLAN

(Executive Team)

CMC

SERVICE RESTORATION PLAN

ELECTRIC CRISIS TEAM

BUSINESS CONTINUITY

PLAN (Corporate Team)

HUMANITARIAN RESPONSE PLAN

WATER CRISIS TEAM

GAS CRISIS TEAM

EMPLOYEES

IT

FACILITIES

CUSTOMERS

EMPLOYEES

FINANCE

TELECOM

LOGISTIC PLAN

ENVIRONMENTAL PLAN

COMMUNICATIONS PLAN

OPERATIONS SUPPORT PLAN

MLGW’s CRISIS MANAGEMENT STRUCTURE

M E M P H I S L I G H T, G A S A N D W A T E R D I V I S I O N

slide6

Requirements for pandemic flu

  • Antigenic novelty - new HA subtype (H5)
  • Mortality
    • Mortality rate with H5N1 > 50%, most recent reports indicate ages 20 to 40 are the susceptible age
    • 1918 pandemic had mortality rate ~5%
  • Ease of Transmission
    • Lacking in current H5N1
    • Mutation or re-assortment with other flu strains may improve transmissibility
  • We are unable to predict when next pandemic will occur
slide7

20th Century Pandemics

Year Name Subtype Source U.S. Mortality

______________________________________________________

1918 Spanish H1N1 Avian - ~500,000

whole virus

1957 Asian H2N2 Human-avian ~70,000

reassortant

1968 Hong Kong H3N2 Human-avian ~34,000

reassortant

1976 Russian H1N1 Reintroduction Moderate

from ‘frozen

source’

what will happen abroad
What will happen abroad?

Characteristic Moderate (1958/68-like) Severe (1918-like)*

Illness 90 million (30%) 90 million (30%)

Outpatient medical care 45 million (50%) 45 million (50%)

Hospitalization 865,000 9,900,000

ICU care 128,750 1,485,000

Mechanical ventilation 64,875 742,500

Deaths 209,000 1,903,000

* Estimates based on extrapolation from past pandemics in the United States. Note that these estimates do not include the potential impact of interventions not available during the 20th century pandemics. Numbers taken from Department of Health and Human Services Pandemic Plan (November 2005).

slide10

Pandemic vaccine timeline (months)

1 2 3 4 5 6 78

Pandemic start

Recognition of the pandemic, characterization of the virus, distribution to WHO collaborating centers

Development

Reverse genetics, distribution of seed virus, expansion of egg supplies

Testing

Purity and potency testing, blending, regulatory testing and review

Production

Shipping

Filling

and packaging, licensing

Vaccination

Shipping and distribution

Vaccination and development of immunity

slide11

Threat Summary

  • Pandemic influenza represents one of the greatest public health threats we have ever faced,
  • Current H5N1 influenza viruses have acquired 2 of the 3 required factors needed to generate a pandemic,
  • Infectious with no symptoms,
  • Antivirals (such as Tamilflu) may be ineffective and are in short supply,
  • Vaccine will only be available after the first wave of the pandemic and may be only modestly effective
  • Preparedness and options for prevention or treatment are likely to improve in the next 5-10 years
  • Should be prepared for “worst case scenarios” for the next 5 years at a minimum
what will happen locally mlgw s service territory
What will happen locally (MLGW’s Service Territory)*?

Characteristic Moderate Severe

Illness (30%) 272,711 272,711

Outpatient Care (15%) 136,355 136,355

Hospitalization 2,640 30,185

ICU Care 393 4,528

Mechanical Ventilation 200 2,264

Deaths 627 5,766

*Note: Numbers derived from 2005 Estimated Population of Shelby County, TN – United States

Census Bureau

mlgw planning issues
MLGW Planning Issues
  • Absentee rates from 25 to 50%
  • Timing of outbreak is uncertain
  • Quick spread – 3 to 8 weeks, multiple waves of infection
  • What are the critical business functions and what are the dependencies
    • critical employees
      • their willingness to come to work
      • back ups
    • software/hardware constraints
  • Controlling the spread
  • Educating our employees
  • Coordinating with outside agencies
  • Obtaining materials from vendors
  • NO MUTUAL AID
  • Financial viability
pandemic specific vulnerabilities
Pandemic Specific Vulnerabilities
  • Utility supply is critical to community dealing with a pandemic outbreak,
  • Work at home not an option for some
  • Cubicle environment
  • “Eggs in one basket” risk where unique skills are single points of failure
mlgw steps taken
MLGW Steps Taken
  • Gathered pandemic planning checklist from government agencies and trade organizations:
    • www.pandemicflu.gov
    • www.aga.org (American Gas Association)
    • www.awwa.org (American Water Works Association)
    • www.nerc.com(North American Electric Reliability Council)
  • Formed a benchmarking network with other utilities across the nation
  • Established relationship with Dr. Jonathon McCullers, St Jude Department of Infectious Diseases
  • Ordered PPE equipment for pandemic event for each employee:
    • N-95 respirator masks
    • Hand sanitizer (alcohol based)
    • Disinfectant wipes (alcohol based)
  • Educated Executive/Management Staff
  • Created an MLGW-specific Pandemic Planning Guideline
  • Pre-planning meeting with local Health Department
  • UVGI system installed in all critical facilities
  • Identified minimum required business functions
minimum required business functions
Minimum Required Business Functions
  • Defined as processes within each department which directly impact service delivery, restoration, revenue and cash flows.
  • Examples:
    • System Operators
    • Gas purchasing and scheduling
    • Chemical treatment at Water plants
    • Others?
humanitarian response
Humanitarian Response
  • Employees need to know that the company is concerned about their wellbeing and safety
  • Update Succession Planning tables
  • Review sick leave policy/plan
  • Caring for sick employees and families
  • Plan for increased healthcare and sick leave costs
  • Educating employees on Division plans and preventive measures
  • Information included:
    • Information about latest pandemic threat
    • Company response plans
    • Preventive measures
    • Planning for family members
possible pandemic policy implementations
Possible Pandemic Policy Implementations
  • Possible Policy Changes:
    • Travel
    • Vacation
    • Holidays
  • Possible Policy Additions:
    • Telecommuting
    • Meeting policy
    • Social Distancing
    • Alternate work schedules
    • Visitor policy
  • Others?
who pandemic phases
WHO Pandemic Phases

Source: http://www.who.int/csr/disease/avian_influenza/phase/en/

mlgw plan activation table1
MLGW Plan Activation Table
  • Alert
    • Activation guidelines – WHO Phase 4, 5, or 6 with infections found outside Tennessee state lines
    • Corporate Actions –
      • Business as usual
      • Outside travel policy enacted
      • Educate employees on PPE equipment
  • Warning
    • Activation guidelines – Who Phase 4, 5, or 6 with infections found inside Tennessee
    • Corporate Actions –
      • Business as usual
      • Travel policy enacted
      • Distribute PPE equipment to all employees
  • Outbreak
    • Activation guidelines – Who Phase 4, 5, or 6 with infections found inside MLGW Service Territory with 10% employee absentee
    • Corporate Actions –
      • Pandemic Crisis declared – High Employee Absentee Response Plan activated
plan review
Plan Review
  • Plans should coincide with Federal, State, and Local response plans
  • Pandemic response plans should be reviewed by local Health Department and EMA officials
  • Invite outside agencies to sit in as third-party observers during response drills
  • Incorporate benchmarking efforts in your review process
helpful websites
Helpful websites
  • www.pandemicflu.gov - One-stop access to U.S. Government avian and pandemic flu information. Managed by the Department of Health and Human Services.
  • www.acsh.org/publications/pubid.1294/pub_detail.asp- What you need to know about Bird Flu.
  • www.who.int/topics/avian_influenza/en/ - This page provides links to descriptions of activities, reports, news and events, as well as contacts and cooperating partners in the various WHO programmes and offices working on this topic. Also shown are links to related web sites and topics.
  • www.who.int/csr/disease/avian_influenza/phase/en - Current phase of alert in the WHO global influenza preparedness plan.
  • www.cdc.gov/flu/avian/index.htm - Centers for Disease Control and Prevention.
  • www.pandemictoolkit.com- from Roche, producers of Tamilflu.
pandemic are we ready
Pandemic: Are we ready?

“The only thing harder than planning for an emergency is explaining why you didn’t.”

- Author unknown