FERC Training: Targeted, Effective, and Concise
Utilities & Energy: Compliance & Ethics Conference
February 2017
Regulated Utilities
Duke Energy Corporation
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Duke Energy Carolinas, LLC (“DEC”)
Duke Energy Progress, Inc. (“DEP”)
Duke Energy Florida, Inc. (“DEF”)
Duke Energy Indiana, Inc. (“DEI”)
Duke Energy Ohio, Inc.* (“DEO”)
Duke Energy Kentucky, Inc. (“DEK”)
* Transmission and distribution are rate-regulated. Generation is not rate-regulated. Does not have captive power customers.
Customers
7.4 Million retail customers
 North/South Carolina - 4.1 Million
 Florida - 1.7 Million
 Ohio/Kentucky/Indiana - 1.6 Million
Note: 525,000 retail gas customers in southwestern Ohio and northern Kentucky
Legacy Duke Energy
Legacy Progress Energy
Regulated Generation
Duke Energy Renewables
50,000 MW
 Coal – 41%
 Nuclear – 33%
 Gas and Oil – 24%
 Hydroelectric and Solar – 2%
2,400 MW
 Wind and solar renewable generation and energy
transmission projects throughout the United States
Employees
47,000*
*Includes contingent workers.
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Duke Energy Ethics & Compliance Organization
Pres, CEO &
Chair of BOD
Audit Committee
Board of
Directors
Exec VP & Chief
Legal Officer
VP, Chief E&C
Officer
Director,
Ethics and
Training Program
Director,
Corporate
Compliance
Director,
Compliance
Program
Director,
NERC Compliance
Federal
RIM
State
Ethics
Training
NERC
NERC
NERC
NERC
Federal
RIM
State
Ethics
Training
NERC
NERC
NERC
NERC
IT Analyst
Analyst
Admin
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Ethics & Compliance Trainings – 2016 eLearnings
Topics
 FERC Affiliate Restrictions / SOC
 NERC Awareness
 FERC Market Based Rate / Cost Based Rate
 Data Privacy
 Code of Business Ethics
 State Regulatory Affiliate Requirements
 FCPA
 Political Activity
 Records & Information Management
Total Deployments – 102,000 instances
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FERC training assessment
Key considerations
 Targeted: Deploy to only those individuals who need to know
 Effective: Make it understandable, engaging and easier to retain
 Concise: Include only relevant information and emphasize what’s important
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Training Criteria - FERC Classifications
FERC Classifications – Background
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Implemented in 2012
Assigned to all individuals (including contingent workers)
Classifications align with the individual’s function based on the FERC’s definition
Added to HR system, found in Outlook
Total employees/contingent workers – 30,000/19,000
Purpose
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Assign annual FERC training
Monitor system access
Monitor physical access
Monitor worker transfers
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FERC Classifications - Definitions
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FERC SOC/Affiliate Restrictions Training – 2015 Approach
Criteria
 Training assigned by FERC classification (as developed in 2012)
 Two versions deployed:
• Full version – 1200
• Condensed version (No Conduit Rule) - 6900
• Training revamped - simplified, and shortened
 Delivered via eLearning (Articulate) – approximately 7 minutes
Challenges
 Training fatigue
 Pushback from management/trainees on applicability
 Increase in required trainings across all businesses/targeted groups
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FERC training assessment
Key considerations
 Targeted: Deploy to only those individuals who need to know
 Effective: Make it understandable, engaging and easier to retain
 Concise: Include only relevant information and emphasize what’s important
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FERC SOC/Affiliate Restrictions Training – 2016 Approach
Criteria
Training assigned by FERC Classification
Reviewed FERC’s functional definitions with focus on Shared Support (6,7)
Modified Duke FERC classification definitions –“likely” factor
Reviewed every department and function
Applied modified definition for Shared Support (6,7)
Moved approximately 5,000 workers from shared support (6) to “low risk” shared
support (7)
 Identified workers for shorter, targeted messaging (i.e. Human Resources)
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Benefits
 Increased productivity (5,000 workers x 7minutes = 580 hours )
 Identified individuals for “specific” targeted messaging s (i.e. Human Resources, IT)
 Increased information retention
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Keys to success
Make it impactful
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Introduce “micro learning” concept
Carve out “specific” topics and target only those that “need to know”
Understand the difference between training and awareness
Vary methods of delivery and adapt to the audience
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Traditional eLearnings
Email blasts
Video/animation
Classroom
Intranet
Continually assess
 Regularly review criteria for determining audience
 Measure effectiveness and solicit feedback
 Challenge status quo
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Questions
12
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