Home Builders and Remodelers of Cape Cod partnering with Eversource Energy on Improving and Expediting the Process for Electric Interconnections May 25, 2017 Safety First and Always Today’s Agenda Our Vision, Our Investment in the Communities we serve! What are we hearing from our Customers? Identify where are there Opportunities for Improvement. There is more to do! Always Improving. Questions? Safety First and Always 2 The Eversource Vision: Best Energy Company in the Country by 2020 Safety First and Always 3 Eversource Investing in the Community we serve! $4.95 Million Donated in 2016 15,000 Hours at Over 85 Events 3,400 Employees and their Families Join us! Eversource Walk for Boston Children’s Hospital Sunday, June 11, 2017, at the DCR Hatch Shell, Boston MA Start time: 2-mile starts at 11am 6-mile starts at 10am Register at: bostonchildrens.org/walkwithus Safety First and Always 4 What are we hearing from our Customers? Feedback from Customers: 1. More timely - How do we get it done faster? 2. More proactive outreach - How do we improve communications? 3. Provide the ability to talk with the right people at the right time facilitate customer requests to talk with Engineering and/or Construction 4. Provide our Customers with the appropriate information, including transparency into Pricing Safety First and Always 5 Opportunities for Improvement? Phases of the project: Initiate • Customer submits work order application • Customer submits Site plans • Customer pays design deposits and/or fees • Eversource creates Work Order Safety First and Always Design • Eversource coordinates site meeting (if required) • Eversource finalizes design & detailed sketch identifying customer scope of work and Eversource scope • Eversource Sketch, Specs and customer costs are mailed to customer PreConstruction • Customer costs are paid • Customer completes their scope of work • Customer executes Private Property Easement Agreement with Eversource Construction • Eversource construction is completed • Customer is energized • Meter is installed • Customer has the Local inspector approve job • Eversource receives approvals of Public Way Rights & obtains local approvals 6 1. How do we get it done faster? Improve Initiation Timeline: While a PLAN is still required to initiate a work order involving new developments, City/Town Approval is no longer required to begin the work order process. Eversource and Developer to work in parallel while plans are finalized As a work order progresses, please know that Rights may require CITY/TOWN APPROVED PLANS for Public Hearings For new developments/subdivisions, please continue to provide the complete subdivision layout on a disc or CD (CAD FILE) We Heard You! City/Town approved Plans are no longer required for job initiation Safety First and Always 7 1. How do we get it done faster? Improve Design Timeline for Long Lead Designs Improve Construction Timeline for Simple Connections Job Type Engineering/Design Construction Average Duration Simple overhead or simple overhead temp (<400A) 1 - 3 weeks 1 - 3 weeks 2 - 6 weeks Underground small service (0-75kva) 2 - 5 weeks 2 - 4 weeks 4 - 9 weeks Overhead small service (0-75kva) 2 - 5 weeks 2 - 4 weeks 4 - 9 weeks Underground medium service (75-300kva) 4 -10 weeks 4 - 8 weeks 8 - 18 weeks Overhead medium service (75-300kva) 4 - 10 weeks 3 - 5 weeks 7 - 15 weeks Underground & Overhead large service (>300kva) 8 - 14 weeks 8 - 10 weeks 16 - 24 weeks Developments (residential and commercial) 8 - 14 weeks 8 - 10 weeks 16 - 24 weeks Customer stations, TNV's, SNV's and SC's* 16 - 20 weeks 10 - 52 plus weeks 26 - 52 plus weeks * Tertiary Network Vault; Secondary Network Vault; Single Customer (station) Jobs requiring rights from the city/town (dig in the street) can add an additional 8-12 weeks to obtain, prior to starting construction We Heard You! Engineering: Design Cycle time reduced by 20% for jobs > 2 weeks in duration Construction: Some Simple Service jobs types reduced from 5 to 3 days Safety First and Always 8 2. How do we improve communication? Customer communications should be through the Primary Point of Contact; the Account Executive (AE), Customer Service Clerk (CSC), or Customer Service Engineer (CSE) and include the following: Arrange Site Meetings (if required) Initiate Work Order Coordinate Conference Calls (if required) Communicate Design Completion Date Mail out the complete Design Package with Customer Cost Communicate Planned Construction Date We Heard You! Kickoff Meetings with Customer, Customer Care and Engineering to ensure Scope is clearly defined and Work Order is written correctly Safety First and Always 9 3. Ability to talk to the right people Customer Care should always be the single point of contact to coordinate regularly scheduled site visits if required Customer to communicate directly with Engineering, when applicable Customer to communicate directly with Operations (scheduler), when appropriate We Heard You! Customer will have the ability to communicate directly with the Engineer or the Planner/Scheduler Safety First and Always 10 4. Provide Customers with a Complete Design Package Design Package to include: Detailed Sketch identifying Customer scope of work and contractor scope of work Equipment Specifications – including clearance requirements Customer Cost Letter • Total Material costs • Total Labor costs • Outside contractors costs • Less System Development Credit • Vehicle Costs • Police Details • Less Revenue Credit • Carrying Charge • Sales tax if applicable Energy Efficiency link to our Homepage (if applicable) We Heard You! Customer will have the ability to schedule a meeting to review any of these items! Safety First and Always 11 4. Transparency into Pricing System Development Methodology: New Conduit- Customer is charged the COST DIFFERENCE between what they need, and what Eversource installs. Example: A customer needs three pipes (two for conductors + one spare) and ES decides to put in nine since we are digging in the street. ES does two estimates (one for three pipes and one for nine pipes); the difference between the two estimates is the system development credit. New Infrastructure - Customer is charged a RATIO of the load that they are adding, divided by the TOTAL capacity of the new equipment. Example: A customer is adding 200A of load, and ES installs a new 350A line. The customer will be charged for 200/350 or 57% of the cost of the line. Upgrade of existing Infrastructure - Customer is charged a RATIO of load that they are adding, divided by the TOTAL capacity of the new equipment. Example 1: A customer is adding 200A of load, the new load plus the existing load exceeds the rating of the line and ES needs to reconductor the line. The newly reconductored line will be 450A. They will be charged for 200/450 or 44% of the cost of the line. Example 2: A customer is adding 200A of load, to an existing line rated at 450A. The existing load on the line is 200 amps. There will be no cable charge to the customer. Safety First and Always 12 4. Proposed Elimination of Residential Lookback Agreement Existing Line Extension Policy: Contributions-in-aid-of-construction may be refunded to the Developer based upon a one-time review of Revenues received during the 12-month period commencing two years after the date the Company has completed its work and the system is energized. An amount equal to two (2) times the Revenues received by the Company during the aforementioned 12-month period will be refunded to the Developer. No additional or subsequent refunds will be made at any time. In no event shall the aggregate amount of any such refund to the Developer exceed the amount of the contributionin-aid-of-construction for the specific System. In addition, the Company shall not pay interest on any contribution-inaid-of-construction, whether or not subsequently refunded to the Developer. Proposed Methodology: As part of the rate case, we are looking to eliminate this practice and provide an estimated revenue initially, as we do with developments in the former BECo areas as well as commercial and residential customers in all areas. This can certainly have pros and cons depending on how its viewed, but one definite pro is that contractors will receive the credit up front and not have to wait 2 years to receive the credit. Safety First and Always 13 There’s more to do! 2017 Initiatives Formal Escalation Process – Including a Priority List and Watch List Measure adherence to SLA Timeframes (Design, Rights, Construction) Continuously Solicit Customer Feedback – Continue Customer Satisfaction Surveys – Conduct additional Small Business Group meetings Continue to Research Best Practices – Conduct additional top tier utility interviews On-Going Outreach – Strengthening Partnerships – DPU Working Group Meeting – Contractor Forums – Municipality Meetings – NAIOP Briefing – International Association of Electrical Inspectors – Massachusetts Electrical Contractors Association – Home Builders and Remodeler’s Association Safety First and Always 14 QUESTIONS ? Safety First and Always 15
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