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Small town revitalization series – Part 2: Employee Recruitment and Retention

June 29, 2021

by Peter Maloney
APPA News
June 29, 2021

The American Public Power Association (APPA) is pleased to introduce the first in-depth, three-part Public Power Current newsletter series this week, on small town revitalization. Thank you to all the small utility systems across America who were eager to share their stories towards promoting economic development initiatives (Part 1), employee recruitment and retention efforts (Part 2), and beautification plans (Part 3). 

Part 1 of our series provided an overview of the types of projects and programs small utility systems have undertaken to promote economic development – or redevelopment – in their communities. 

In part 2 of the series, public power utilities discuss their retention and recruitment strategies.

The difficulty utilities have in hiring qualified employees has been well documented.

In a 2020 survey, about 84 percent of energy sector employers reported difficulty hiring qualified workers over the last 12 months, a seven percentage point increase from 2018 and 14 percentage points higher than in 2017.

These concerns can be even more pressing for smaller public power utilities that may lack the recruitment and training resources of larger utilities. Several public power utilities are taking action, however, with a variety of programs aimed at attracting and retaining qualified employees in a variety of job functions. Among the tools they are using is offering more flexible schedules, employee cross training, and partnerships with local schools and colleges – including customized internship programs.

Paducah Power System – Paducah, Kentucky

Three years ago, during its strategic planning process, Paducah Power System highlighted the importance of cross training in retaining and promoting employees.

“We were already doing a considerable amount of cross training because of a unique work schedule we have,” Andrea Underwood, Director of Human Resources and Community Relations at the utility, said, explaining that Paducah employees have every other Friday off through an alternative work schedule.

“Strategic planning crystalized the need to cross train in the wake of pending retirements in key positions,” Underwood said. “We regularly train employees in other positions and allow employees to shadow other workers to test their interest in other jobs within the company. We also try to plan long term training for in-house promotions.”

For example, as the payroll administrator was nearing retirement, the public power utility knew they wanted to hire a replacement in-house. So, “we selected her replacement one year in advance and allowed the person selected to train regularly with the payroll administrator during the year prior to her retirement,” Underwood said. “That ensured a seamless transition and successful transferal of institutional knowledge upon retirement.”

Paducah Power System now uses that same strategy for other difficult to fill positions. “We’ve started the training for their replacements three to six months in advance,” Underwood said.

In addition, for many positions, the utility has created a handbook, or “Bible,” for those jobs. “The book details all of the duties of that job, how to do those tasks and when they are typically done during the calendar year,” Underwood said. “Those Bibles are invaluable to the people stepping into those jobs.”

The utility also uses a 30/60/90 form for newly promoted or hired employees. On the form, the employee and their supervisor document the tasks the employee is expected to know at the end of 30 days, 60 days and 90 days. “It keeps both the employer and the supervisor on task with training and makes clear to the employee what the company’s expectations are of that employee in those early days,” Underwood said.

For customer service representatives (CSRs), Paducah Power System, once a month, takes them off the front line and holds one-hour training sessions with them. The sessions cover mandatory topics, such as robbery response, as well as topics chosen by the CSRs.

If there are new employees in the group, the session could include a review of policies and procedures and the chance to shadow employees in other departments. Paducah recently had some CSRs ride along with service department crews for part of the day.

“The sessions give CSRs time away from the hectic pace of the front line to talk about what they do and learn new customer service techniques,” Underwood said. “It’s also a safe space for them to talk about the skills they feel they are weak on and ask for help in understanding all parts of their job.”

Electric Department – City of Forsyth, Georgia

Another strategy for recruiting and retaining employees is to raise the economic opportunities in the surrounding area.

Forsyth has been working on several development projects with Michael Cahill, Project Retail Manager at Electric Cities of Georgia, a membership organization representing the 52 electric utility communities of Georgia.  Those projects include the creation of marketing flyers for different locations within the city to help reach retail and restaurant developers. Cahill recently worked on a community flyer to help with this process.

Tammie Pierson, Economic Development Director for Forsyth, is also working with the local Work Force Development Center to provide a central location for job postings for new and current businesses in Forsyth and Monroe County.

Sevier County Electric System – Sevier, Tennessee

The Sevier County Electric System in Tennessee also looks to wider economic development to help boost its recruitment and retention efforts and has formed working relationships with Sevier County Economic Development (SCED), Sevier County Government, and the Tennessee College of Applied Technology (TCAT).

Working with SCED and other local businesses, the utility provides scholarships to graduating high school seniors, who can earn a two-year degree from Walters State Community College and go on to Eastern Tennessee State University to earn a four-year degree.  It is called the “Partners in Progress” program.

“The goal is that students can graduate debt-free, have multiple job opportunities and never leave the county,” Allen Robbins, General Manager and CEO of Sevier County Electric System, said. “We did this because we found that students were leaving for college where they had more job opportunities and were not necessarily coming back. We were losing a large segment of our talent pool, which is why we developed this fund.”

Sevier County Electric System also supports the TCAT, which has a six-month power line construction and maintenance program that prepares students to work in the electric utility industry as electrical linemen.

The public power utility also participates in the Southern Hospitality Internship Program, which was created in response to the county’s labor crisis. “A study revealed 93 percent of businesses interviewed said their company was dealing with employee staffing challenges, and that the top three issues related to employee availability are adequately qualified candidates, attendance, and commuting distance,” Robbins said.

The goal of the program is to help students and recent graduates acquire hands-on work experience in the hospitality industry. “We believe that only so much can be learned in the classroom, and internships are the perfect opportunity to challenge students and prepare them for a career,” Robbins said. So far, 68 students have been hired through the program, which began in July 2020.

Gallatin Electric Department – Gallatin, Tennessee

The Gallatin Electric Department has tweaked some of its employee policies to help retain existing employees. For linemen, the public power utility used to require them to live within 15 minutes of its office but has since expanded that to 20 miles. “This allows our linemen to live where they want to and still work here,” Mark Kimbell, General Manager of the city’s electric department, said.

Gallatin Electric Department has also built more flexibility into their linemen’s work schedules. The utility went to a 9-hour workday for linemen on 2-week pay periods and gives them every other Friday off. And, in the summer, Gallatin allows linemen to start their day at 6 am rather than at 7 am, giving them “more time in the afternoons to do what they want,” Kimbell said. “They like that flex schedule.”

For front office employees, Gallatin allowed them to pick a day off – with the longest tenured employees picking first – so there is one of the utility’s 10 customer service representatives out each day. “They love that new schedule,” Kimbell said. “That’s 26 more days per year they’re not working that they can take care of personal things without having to take time off.”

Benefits are also key to retaining staff, Kimbell believes. “We’re always talking to the Board to offer the best benefits package we can – health insurance, life insurance,” he said. “It’s always an ongoing process for us.” In that respect, Kimbell said it is important to keep a good relationship with the mayor or whoever is going to make appointments and decisions. “You can find linemen and front office staff, but the more you can do to keep them, the better off you are, so I think retention is very, very important,” he said.

A high turnover rate among linemen can slow down getting the lights back on in a timely manner because they don’t know the system as well as a more experienced lineman. “I’d rather pay a little more to keep my employees then have constant turnover,” Kimbell said.

A low turnover rate also has other potential benefits. Gallatin recently had a job opening for a lineman. “I don’t even need to advertise now,” Kimbell said. “It’s all word of mouth, and we’ll have multiple applications come in.” 

Gallatin also has found more success in hiring locally. “If we find someone from the area who has been to climbing school, we have better luck keeping them,” Kimbell said. He says he prefers linemen candidates who graduated climbing school. “If you can’t get through climbing school, you won’t make it as a lineman,” he said, noting that the utility does not have “groundmen” on staff.

“We like to train them ourselves,” Kimbell said. “We hire first or second year apprentices and train them up from there.”

ElectriCities of North Carolina

The challenges of recruitment are not new for public power. “From career awareness challenges to strong local competition, recruiting can sometimes be an uphill battle even here in North Carolina,” Melissa Miranda, Vice President of Human Resources at ElectriCities of North Carolina, said.

A small utility does have certain advantages, though, she said, noting that an employee of a small utility has a greater potential to make an immediate difference than they would at a large utility. And, from the employer’s side, a small utility can often have the latitude to offer employees flexible work schedules, shorter commute times, and cross-training as a professional development and retention tool.

Public power also has a culture of pulling together to solve problems, Miranda said. One of ElectriCities’ members, the Town of Benson in Johnston County, N.C., was facing pending retirements, vacancies, and few options.

The “post it and they will come” strategy just was not working to attract experienced talent into public power, Miranda said, so Benson decided to “grow their own.” Benson reached out to three other public power communities in Johnston County: Clayton, Selma, and Smithfield.

Within weeks, the city managers and utility directors for all four utilities were at the table collaborating with Johnston County Public Schools; Johnston County Industries, a community-based organization that provides vocational training and employment programs; and ElectriCities of North Carolina.  Together, they developed the Johnston County Electric Lineworker Pre-Apprenticeship Program, which provides high school seniors the basics of linework, an understanding of the public power business model, and hands-on experience through a summer internship program.

The program includes classroom and field training over ten Saturday sessions throughout a student’s senior year. At the end of the program, students can interview for a summer internship, funded by Johnston County Industries, at one of the four Johnston County public power utilities. Students can then decide to enter the workforce directly or to continue with their training through Nash Community College’s Electric Line Construction Academy or one of the ten other North Carolina community college lineworker programs.

In May, Benson hired their newest lineworker, Cody, who, after completing the classwork during his senior year, completed a nine-week internship with Benson in the summer of 2020, graduated from Nash Community College’s Electric Line Construction Academy this spring, and then elected to take a job with Benson’s utility.

Career development coordinators from Johnston County’s seven high schools have been the “star cheerleaders and recruiters” of the program and have encouraged a diverse pool of students to consider applying, Miranda said. So far, 33 percent of the students completing the program have been students of color. One woman has also completed the program.

For the 2021-22 school year, “we are looking to add four job shadow days to the program schedule to further the students’ understanding of the profession and the full value of public power,” Miranda said.

Sheffield Utilities – Sheffield, Alabama

In Alabama, Sheffield Utilities is also working closely with schools. Working with the local school system, the utility has created the Strategic Energy Management Cohort for the 2021-22 school year. Participating schools will be joined by 50 other schools across the Tennessee Valley to learn about energy management, collaborate and share best practices to engage students and the community, and much more.

Sheffield started with their elementary, junior, and high schools. If the program does well, it will be expanded to the county schools as well, Steve Hargrove, General Manager of Sheffield Utilities, said.

The initiative is part of the Tennessee Valley Authority’s program to develop and implement a continuous and self-sustaining energy management improvement process focused on behavioral and operations-and-maintenance improvements. Success is measured by tracking energy savings in kilowatt hours per square foot through use of the Energy Star Portfolio Manager platform.

In addition, to its school initiative, Sheffield Utilities also provides cross training as a professional development tool for its employees, tuition reimbursement for in-field job-related courses and training, and encourages attendance at training seminars and conferences.

Harriman Utility Board – Harriman, Tennessee

The Harriman Utility Board (HUB) in Tennessee also works with its local high school. In 2019, the public power utility launched an initiative to bring area high school students into its work force. The goal of the program is to provide exposure to career opportunities in public power utilities and to provide students experience that can be helpful in their future careers.

Recently, high school students spent a semester working alongside HUB employees in their field of interest. One shadowed Joshua Gillespie, HUB’s Director of Communications.  Another student who wants to be a lineman, worked in the electric department, and a third, who wants to be an electrical engineer, worked under the direction of Dick Hall, an engineer and former general manager of HUB. 

Tomorrow, Part 3 of our series concludes with efforts to beautify America’s small towns and the roles public power utilities play.

Small town revitalization series – Part 1: Economic Development

June 29, 2021

by Paul Ciampoli
APPA News Director
June 29, 2021

Part 1: Economic Development 

The American Public Power Association (APPA) is pleased to introduce the first in-depth, three-part Public Power Current newsletter series this week, on small town revitalization. Thank you to all the small utility systems across America who were eager to share their stories towards promoting economic development initiatives (Part 1), employee recruitment and retention efforts (Part 2), and beautification plans (Part 3).  

Of America’s nearly 2,000 public power utilities, a vast majority of them are considered “small.”  

Colin Hansen, Chair of APPA’s Board of Directors and Executive Director of the Kansas Municipal Utilities (KMU), is proud to represent the 116 (out of 118) KMU members that serve small towns. Indeed, since most public power systems do, it would be fair to say that when small cities and towns thrive, so does public power. He said, “Our large systems – from Seattle City Light and LADWP to Santee Cooper and JEA – are often looked to for the amazing work being done to uplift public power communities.  I want to thank them for being innovative industry leaders. I also want to shine a bright spotlight on the truly incredible things our small public power systems are doing in the hope that we can all learn from each other. There are many small systems across the country that demonstrate the progressive thinking and a kind of grit – hidden only by their size – that truly defines all public power systems: unique, visionary, dedicated, and resilient. These are just some of their success stories.”   

Part 1 of our series provides an overview of the types of projects and programs small utility systems have undertaken to promote economic development – or redevelopment – in their communities. From fiber deployment to free electric vehicle charging stations in downtown areas to business incentive programs and active marketing of what their small towns, and public power, can offer.

Kentucky
In the Bluegrass State, Barbourville, Ky.’s economic development activities include “Blink,” Barbourville’s Gigabit Link. Blink delivers 50 Mbps, 100 Mbps and even 1 Gigabit speeds and can handle up to 5 simultaneous HD signals into the home. Businesses will have a speed and data capacity advantage few rural communities offer today, the utility notes. Barbourville Utilities is a member of the Kentucky Municipal Energy Agency (KYMEA), a joint public agency formed in 2015 to assist with collaboration amongst 11 members utilities.

In Frankfort, Ky., the city’s utility has been providing rebates to customers during the COVID-19 pandemic and is continuing to do so this year, noted Michelle Hixon, Director of Administrative Services and Communications at KYMEA. The Frankfort Plant Board (FPB) is KYMEA’s largest member.
 
Meanwhile, FPB partnered with the city to deploy electric vehicle charging stations. FPB “invested in their community by providing several charging stations near the downtown area,” KYMEA notes in its 2020 annual report.

“Not only do these locations allow for the community to charge their vehicle as they visit downtown for business, shopping, eating, or visiting the park; the charging stations are provided free of charge from the City of Frankfort. Parking and charging for an hour or two can provide as much as 50 miles of range which is more than enough for everyday driving needs. It’s a fantastic way to draw tourism and economic growth to Frankfort’s charming downtown atmosphere,” KYMEA reported.

Cathy Lindsey, Director of Marketing and Communications at FPB, said that for more than 77 years, FPB “has powered the Franklin County community with the most valuable resources essential to enrich the quality of life – electricity, water, cable, internet and more. As neighbors serving neighbors, FPB strives to provide these services in a way that fosters the community to thrive and grow. After all, the community members are our customer-owners,” she said.

The priority is to ensure low and stable rates, she noted, which is why in 2019, FPB switched its power supplier from Kentucky Utilities to KYMEA. 

“The savings began immediately. Since that time, we have had no electric or water rate increases with none planned in the near future. Our decrease in wholesale power has enabled FPB to issue annual rebates to customers. This means FPB has returned $3.2 million to customers since 2019 and plans another rebate this year of $1.6 million. These are huge incentives to recruit new business and industry to our community,” she said.

“While we have long offered fiber connections to businesses and schools, FPB has invested in an extended fiber-to-the-premise infrastructure that will improve broadband services for both business and residential customers. We are partnering with the local government to promote the new service and the city’s new remote worker incentive program. This next-generation system is another boon that will attract growth in our community,” Lindsey said.

“We take our role as a public utility very seriously. That’s why in addition to major projects, we focus on programs that will improve life for our customers. This includes water fountains in parks, free wi-fi zones, EV charging stations and college scholarships. Our customers deserve these benefits of a locally-owned municipal utility,” she said.

Elsewhere in the Commonwealth, in the early 2000’s, Paducah, Ky., updated its connectivity between substations with a fiber optic network which is used as a fiber backbone for local internet providers. “We directly serve our hospitals and schools, allowing them better connectivity between medical facilities and making it easier for the schools to download curriculum,” noted Andrea Underwood, Director of Human Resources and Community Relations, at the Paducah Power System.

“For the past three years, we’ve provided free wi-fi to the community’s new Sprocket Innovation Hub, an incubator for creating new businesses and jobs in the community. We recently announced we will continue to do that for the upcoming expansion of Sprocket. Last year, we also worked with our public housing authority to make sure their housing sites had wi-fi service that allowed youth residents to do their virtual learning during the pandemic,” she said.

Nebraska
In 2020, the Nebraska Department of Economic Development (DED) announced the City of Kimball (population 2,360) as a new member of Nebraska’s Leadership Certified Community (LCC) program. 

Kimball became one of 29 Nebraska communities to qualify for DED’s LCC program, created in 2011 to help villages and municipalities adapt to ongoing changes and opportunities in economic development. Certified communities must demonstrate an understanding for and preparedness in strategic planning, and display readiness in technological development to help new and existing businesses grow. Qualifying LCC’s earn status in the program for five years and are required to maintain community websites to market local development, which may include information on available sites and buildings and regional employment opportunities. This is the City of Kimball’s first certification in Nebraska’s LCC program.

“Over the past year, the city has invested nearly $1 million in its business incentive programs,” an August 2020 news release noted.  

Kimball’s Local Option Municipal Development Act (LB840) loan program authorizes incorporated cities and villages to collect and appropriate local tax dollars for economic development. The funds assisted in the redevelopment and renovation of a premier full-service RV park, High Point RV Park, which includes showers, a store, and 15 full RV hookups. High Point RV Park has plans for expanding their business plan and RV spaces. 

Other businesses within the city who have utilized loan assistance include: The Sagebrush LLC, which includes a restaurant, lounge, and 400-person event area and Karen’s Kitchen, a family restaurant which offers home cooked meals from the menu and daily specials.

Another LB840 incentive is the City of Kimball’s Infrastructure Improvement Grant Program, which provides up to $15,000 in assistance for local business owners who invest in ADA compliancy, energy efficiency, electrical or plumbing updates, or building code improvements. 

Georgia
Public power communities in Georgia are also involved in a wide range of economic development activities.

For example, Thomasville, Ga., has invested in two electric vehicle charging stations for public use, which are available free of charge. Their hope is that this encourages people who may be close to Thomasville to consider detouring for a charge and to spend some time downtown. “They have been very well received,” said Sheryl Sealy, Executive Director, City of Thomasville, Marketing & Customer Services. “It is our way of bringing visitors to our downtown to experience all we have to offer.” 

ev station
EV charging station in Thomasville, GA

The City of Thomasville has had initiatives throughout COVID to help the community avoid homelessness and other situations that may result from a loss of income.  “We concentrated efforts on our Project Share, which allows customers to add a contribution to their utility bill to help their neighbors,” Sealy said. “We also partnered with a local non-profit to administer a relief program that is funded by money the city received through the CARES Act.”

Elsewhere, the City of Forsyth, Ga., has seen a lot of growth in the last couple of years.  

CITY HALL
City Hall in Forsyth, GA

For example, Forsyth Main Street and the Downtown Development Authority are working to promote, revitalize, and beautify the Central Business District to make Forsyth the thriving hub of the community. Through these efforts, there will be an encouragement of retail and professional business growth.

Forsyth Main Street awarded 12 Façade/Sign Grants in the amount of $16,212 in 2020. Within the downtown area, several new businesses opened in 2020 and the City of Forsyth had over 30 new business license applications in 2020, noted Tammie Pierson, Economic Development Director for Forsyth.

scoops
Scoops in Forsyth, GA

Tennessee
Mark Kimbell, General Manager at the Gallatin Department of Electricity (GDE) in Tennessee, noted that GDE has invested in its system to help attract new customers. “We have also deployed fiber around town to provide backhaul for new customers and improve connectivity.”

With respect to fiber, he said while they do not intend to offer fiber to homes, “We intend to use dark fiber as an economic development tool to recruit new customers, and to work with the city and county as their needs go.” 

GDE recently finished a fiber loop project for its own resources (SCADA to substations). “We have a hardened substation house several miles from our office that we use as a backup, for our redundant systems.”

Harriman Utility Board (HUB) in Harriman, Tenn., detailed its economic development accomplishments in its 2018 annual report. “Researchers and Site Selection Groups seem to agree that the Southeastern United States is the most competitive region of the country for business investment. One vastly underrated reason why is the availability of well-organized and well-funded power companies,” the report notes. 

HUB Building
Harriman Utility Board in Tennessee

Tennessee has been increasingly successful in receiving new and expanded business/industry investment in recent years, the report said. The Tennessee Valley Authority “is just one reason why we have a competitive advantage. By partnering with our local and State economic development agencies and the TVA, we will encourage growth and development in our service area and that which surrounds it. From an availability and reliability of utilities perspective, we will identify and tackle issues which may be deterring business from our area. In addition, we will invest in social improvement. We will grow our presence at public events, schools, and civic groups. We will educate our customers and key stakeholders on the value of public utilities and focus on safety and reliability of our services.”

Meanwhile, HUB recently completed moving HUB’s main headquarters to an old bank building.  “It’s actually getting more common to see local utilities take over former bank buildings, as the banks are looking to downsize, and the utilities are looking for similar building layouts to serve their customers. Several nearby utilities are going through similar building projects right now. Some are like us, lucky to have a low cost, existing building to renovate.  Others are forced to build new. But most all of us want to stay located in the heart of our communities,” said Candace Vannasdale, HUB General Manager, who oversaw the project. 

North Carolina
North Carolina has seen another record-setting year in the economic development space with public power communities at the heart of the activity, noted Brenda Daniels, Manager of Economic and Community Development at ElectriCities of N.C.

In May 2021, White River Marine Group, LLC, a manufacturer of recreational boats, opened a manufacturing facility in Craven County, with a target of 500 jobs. The company anticipates a $34 million investment in New Bern, a public power community.

Also announced this May, JELD-WEN Holding, Inc., a manufacturer of windows and doors, will create 235 jobs in Iredell County, N.C. The company will invest $7.9 million in Statesville, a public power community, to establish a new production facility for VPI Quality Windows.

Meanwhile, several ElectriCities members are now offering co-working spaces including the North Carolina Public Power communities of Apex, Louisburg, Morganton, and Wake Forest. These projects have proven wildly successful, with many of the new spaces already at capacity, said Daniels.

Daniels and her team of economic development experts support ElectriCities members by providing a number of services to public power communities including feasibility studies, strategic economic development plans, Smart Site certifications, grant programs, and more.  

ElectriCities was also named “Top Utility” in the U.S. by Business Facilities Magazine and North Carolina is also Business Facilities’ 2020 State of the Year, which Daniels said are “two huge accomplishments that would not be made possible without the hard work of our member communities across the state.” 

Alabama
Elsewhere in the Southeast, Sheffield, Ala., is implementing a Community Centered Growth Pilot Program in its downtown area, noted Steve Hargrove, General Manager of Sheffield Utilities.

He said community centered growth targets community-based small businesses in economically distressed areas. A pilot program offered by Sheffield Utilities and the Tennessee Valley Authority is designed to attract sustainable businesses and stimulate “existing small businesses in our community through energy efficiency investments and resources,” he said. 

He listed pilot focus areas as follows:

Technologies and incentive opportunities include:

The pilot program began in January 2021 by recruiting participants based on building features and location.  In March, assessment of selected buildings began to determine priority of technologies and extent of revitalization projects.  In April, vendors were chosen to complete upgrades.  From May through September, the city will begin installing upgrades, capture lessons learned and best practices to inform future programs.

Wisconsin
In the Upper Midwest, River Falls Municipal Electric Utility “firmly believes in supporting economic development for several reasons,” said Kevin Westhuis, Utility Director, City of River Falls Municipal Utilities.

“One, as our commercial and large customer base grows, it is a net positive for our residential customers as increased revenues can have a stabilizing effect on rates. Two, as a Municipal Utility, we not only have a direct interest in the economic health of our community, but can actually effect it positively with deliberate action,” he said. “Jobs and opportunities are key factors in a vibrant town or city; we recognize it and support it. Thirdly, and one of the reasons “Municipal Utility” is such an advantage is: we can reflect our local community’s values. Health (both physical and economic), safety, and environmental stewardship are three of many values that we actively support as River Falls Municipal Electric Utility.”

Illinois
In Illinois, the City of Rock Falls has also been active on the economic development front.

Robbin Blackert, City Administrator, City of Rock Falls, highlighted the city’s fiber to the home project. “When COVID hit, we became the golden child because our schools could handle the virtual learning demands – and so could all the work-from-home employees. We ended up selling our backbone infrastructure to a private company, who will have the town 80% done by year-end.” The city still benefits through franchise fees.

Blackert also noted that the city previously took involuntary possession of the Reliant Fastener property, an abandoned manufacturing plant for industrial and automobile fasteners, which made it eligible for federal EPA clean-up funding.  Demolition of 30 structures and road construction began in 2011. The location is adjacent to the busiest intersection in Whiteside County, Ill. The road project had a huge economic impact to the city, with 40 permanent jobs, $150,000 in property taxes, $120,000 annually in hotel/motel tax, and $80,000 annually in electric, sewer & water fees. The city expects 120 additional permanent jobs and $200,000 additional in utility fees. The brownsfield redevelopment includes a new community park complete with an amphitheater and hotel.

before
Before Brownfield site redevelopment
after
After Brownfield site redevelopment

Utah
Looking at a different part of the country, Monroe City, Utah, has completed a number of economic development projects, noted Monroe City Council Member Erica Sirrine.

The city added a road access to the city’s Hot Springs for citizens to have easier access; grated Canyon View Landing Park and hauled in road base for a parking area for paragliders; installed sprinkler system and hydroseeding to the Canyon View Landing Park for a grass runway for paragliders; and is currently installing a restroom at the Canyon View Landing Park

Monroe City is a member of Utah Associated Municipal Power Systems (UAMPS).

Tomorrow, Part 2 of our series continues with efforts small towns are undertaking to attract and keep hometown talent at home – and the significant roles public power utilities play in achieving that goal. 

Smart Transmission Investment is Critical to Clean Energy Goals

June 28, 2021

by Sarah Mathias
APPA News
June 28, 2021

In a recent blog, Joy Ditto, our president and CEO, highlighted how public power is innovating to reduce emissions, increase reliability, and safeguard affordability for electricity customers. These exciting efforts represent a wide range of activities — including building new generation, increasing energy efficiency, deploying advanced technologies, and electrifying transportation — that will be necessary to achieve net-zero emissions from the electric sector.

Another challenge to reducing emissions, and one that is admittedly not as groundbreaking as small modular nuclear reactors or as headline-grabbing as an electric Ford Mustang, is transmission.

Transmission is what makes the electric grid, well, “the grid.” It is what allows electricity, whether generated up the road or states away, to reliably get from point A to point B to power our homes and businesses. In addition to moving power to where it is most needed, transmission is also important for reliability. The right transmission can ensure that the grid has the redundancy and appropriate interconnection to help keep the power flowing during severe weather, maintenance, and other unpredictable situations, including times when wind and solar power are unavailable.

With the Biden Administration and congressional Democrats proposing large-scale climate goals, there is a lot of discussion on the importance of transmission to deliver zero-emitting electricity, including in some recent infrastructure proposals (which are subject to change, of course). Transmission has a key role to play in transporting electricity generated from renewable and other zero-emitting sources, which tend to be in rural areas where land is plentiful, to electricity-using consumers in more densely populated areas.

Just how much new transmission will be needed for a net-zero future? The estimates vary – one recent study, from researchers at Princeton University said we could need as much as triple what we have today by 2050. The consensus seems to be that we will need significantly more transmission to incorporate new, more remote generating resources and ensure reliability. And yes, if you’re doing the math, the Princeton team is estimating that we could need to rebuild the current grid twice over in the next 30 years!

What does this mean for energy customers? Foremost, transmission costs are ultimately borne by utility customers. For most of us who live “on the grid,” this is the cost we pay to ensure that electricity gets to us and for the peace of mind of knowing that the lights will turn on when we flip the switch. This cost is currently an average of about 13% of the monthly electric bill – but has been growing. In many parts of the country, transmission costs have been rising steadily and significantly in recent years. In some cases, we’re talking about a tripling of the cost that customers are paying for transmission just in the last decade! Add in not only the cost of new transmission but also the costs associated with upkeep and maintenance to ensure our existing grid is resilient and reliable.

Also, this new transmission must be built somewhere. There is a new emphasis on siting transmission along existing federal rights-of-way – such as train tracks and highways. Ultimately, however, the siting and permitting of transmission, unless it is built entirely on federal lands, will be a state and local decision. Like building any major infrastructure today, developing new transmission is an expensive, contentious, and time-consuming process, often taking more than 10 years and filled with political and regulatory hurdles.

We find ourselves in a situation of needing new transmission—and potentially needing it fast—but facing major political and regulatory barriers that make the process slow and expensive. And, even if we overcome the barriers to getting all this transmission planned, sited, permitted, and built, how can we do it without making it unaffordable for customers?

Like so many of the questions that public power faces in this transition, there are no easy answers or silver bullets.

Smart transmission policy can make or break whether these costs remain affordable for customers. We outlined what policies would help keep costs down for public power customers in our issue brief on the topic and highlight some of the key pieces below. 

One way to help with some of these challenges is to increase the opportunities for public power to jointly own transmission projects. This is commonplace in some parts of the country, while joint ownership faces significant obstacles in others. The benefits of public power having an ownership stake in transmission projects are numerous. For one, public power owners have a seat at the table in planning the projects and can help ensure that the “right” kind of transmission is built. In other words, public power can help ensure that transmission projects undertaken will truly benefit their local communities, whether by increasing reliability or achieving environmental goals. Second, ownership by public power utilities can help bolster local support for projects, which is vital in the siting and permitting process.

Finally, as community-owned not-for-profit power providers, public power utilities can help keep transmission project costs fair and reasonable. As joint owners, public power can receive some of that financial benefit to share with their customers and offset some of the transmission cost increases they experience. I’d liken it to the difference between renting a house picked out by someone else versus choosing and co-owning a house with others. In the latter example, your fellow buyers would have to consider your opinions on the location, amenities, and overall price of the house, plus you’d be paying a share of the monthly mortgage and be entitled to a share of the long-term equity. I won’t speak for everyone, but I know which option I’d prefer!

While the situation is difficult and complex, it’s not impossible. Joint ownership of new transmission projects is one answer to provide a path forward for building the additional transmission needed for clean energy.

NYPA project gathers real-time weather data for transmission lines

June 23, 2021

by Peter Maloney
APPA News
June 23, 2021

The New York Power Authority (NYPA) has embarked on a project to gather real-time weather information from sensors on its transmission lines.

The $1 million Forecast Dynamic Line Rating Research and Development project is being jointly funded by NYPA and the New York State Energy Research and Development Authority (NYSERDA). The system monitors actual weather conditions at individual transmission towers rather than relying on national forecast data taken miles away.

“A real-time technology that provides accurate, detailed forecasting data will help NYPA determine how to safely and reliably move more electricity through existing transmission lines,” Alan Ettlinger, senior director of research, technology development and innovation at NYPA, said in a statement. “This solution can be easily implemented by other utility companies and help transmission line operators enhance the current-carrying capability of New York State’s electric power system and better address congestion issues.”

The sensors have been installed on NYPA’s Moses-Willis-Plattsburgh transmission lines in 10 locations throughout St. Lawrence, Franklin and Clinton Counties on New York’s northernmost border.

Ratings by the New York Independent System Operator and by utilities for how much power a transmission line can transmit are affected by the weather and NYPA, like most utilities, now uses static line ratings based on conservative assumptions about weather conditions to determine how much electricity can safely be pushed through a line.

Transmission lines in New York’s North Country, however, often take circuitous routes through remote areas with many valleys and mountains where weather can change quickly because of variable wind and light conditions.

NYPA said being able to receive regular updates on real-time conditions including air temperature, wind conditions and solar intensity, will help system operators know more accurately how much power can be delivered through the lines. The technology could enhance the transmission capability up to 60 percent on some transmission lines, Ettlinger said.

The project will demonstrate the WindSim Power Line forecast/real-time transmission line rating system that can help enhance the capacity of existing transmission infrastructure and relieve congestion, enabling more efficient utilization of the electric transmission and distribution grid, NYPA said. It said that the project is the first in the nation to validate the ability to monitor and forecast transmission line capacity all along the transmission lines, including structure to structure spans, instead of using single weather monitor location measurements.

NYPA has more than 1,400 circuit-miles of transmission lines.

A video that offers additional details about the weatherization project and shows a weather sensor installation is available here.

LIPA, PSEG Long Island announce start of 2022 integrated resource planning study

June 23, 2021

by Paul Ciampoli
APPA News Director
June 23, 2021

The Long Island Power Authority (LIPA) and PSEG Long Island on June 23 announced the start of the 2022 integrated resource planning (IRP) study, which will build on previous work and identify the actions needed to continue on the path towards meeting New York State’s clean energy goals under the state’s Climate Leadership and Community Protection Act (CLCPA).

The 2022 IRP will be developed by LIPA’s service provider, PSEG Long Island, as an agent of and acting on behalf of LIPA. The IRP will focus on identifying key changes to LIPA’s resource portfolio and transmission grid on Long Island and in the Rockaways, LIPA and PSEG Long Island noted.

IRPs are conducted every three to five years. The 2022 IRP will seek to examine the impact of CLCPA requirements, and other potential electricity market changes, during the study period of 2022 to 2040, and will recommend an action plan for the period of 2022 to 2030.

Signed into law by New York Gov. Andrew Cuomo in July 2019, the CLCPA aims to achieve 100 percent zero-carbon electricity generation in New York State by 2040 and sets targets that include: 70 percent of electricity consumed statewide be produced with renewable energy by 2030; the development of 6,000 megawatts (MW) of distributed solar by 2025; 3,000 MW of energy storage by 2030; 9,000 MW of offshore wind by 2035; and 100 percent zero-carbon electricity generation by 2040. 

LIPA and PSEG Long Island said that CLCPA requirements will have a significant impact on the supply and demand of electricity across the state. Generation on Long Island and in the Rockaways will need to transition to a resource mix that is increasingly dominated by offshore wind, as well as adjust to the impact of increased beneficial electrification of other sectors, such as transportation and heating. 

Key objectives for the IRP include:

The IRP will consider supply-side (e.g., clean generation and energy storage), demand-side (e.g., energy efficiency and demand response) resources, and transmission investments. If the IRP identifies a resource need, LIPA will initiate a competitive procurement to identify alternative proposals that best meet that need.

LIPA and PSEG Long Island will accept written public comments on the proposed IRP scope of work for 30 days beginning on June 23, 2021. Additional opportunities for public comments will be provided later in the IRP process.

Additional information about the IRP is available here.

Snohomish County PUD projects to maintain high reliability levels, meet growing demand

June 23, 2021

by Paul Ciampoli
APPA News Director
June 23, 2021

Snohomish County PUD crews this summer will be making electric system improvements and completing preventative maintenance projects in an effort to ensure the Washington State PUD maintains high levels of reliability through the storm season and meets growing demand, it said on June 15.

The PUD has work scheduled on many of its substations, including standard maintenance, equipment replacement and automation upgrades. PUD crews will install a new transformer at its Paine Field Substation, which serves both industrial and residential customers.

Construction on the new Twin City Substation in Stanwood, Washington, is scheduled to be substantially complete this summer. The new substation will replace the North Stanwood Substation and will increase reliability to Stanwood and Camano Island. In July, PUD crews will also rebuild overhead circuits and install underground circuits on a highway near the new substation.

In the Woods Creek area outside Monroe, Washington, the PUD will replace more than 50 distribution poles and install transmission lines to connect the circuits from the PUD’s Woods Creek and Lake Chaplain substations. The work will improve reliability for the City of Everett’s water treatment plant at Lake Chaplain and the PUD’s Jackson Hydroelectric Project powerhouse.

The PUD will also perform work this summer in preparation for new large commercial customers arriving. Crews will install two new underground feeder circuits to eventually energize the new Northpoint development, which spans 10 properties in the Smokey Point area and relocate infrastructure to eventually serve a new Costco. 

And later this summer, PUD crews will relocate approximately 60 transmission and distribution poles in Edmonds, Washington, to help with a road improvement project to increase accessibility for sidewalks.

Along with two projects that will extend fiber optic and communication equipment to improve reliability, the PUD plans to replace hundreds of aging poles, assess and treat thousands of poles and replace dozens of miles of aging underground cable.

And the PUD’s vegetation management team will have a dozen crews trimming trees across the utility’s service territory throughout the summer. The PUD trims trees on upwards of 450 circuit miles each year to aid in reliability, it noted.

Colin Hansen installed as chair of the APPA Board of Directors

June 23, 2021

by APPA News
June 23, 2021

Colin Hansen, executive director of Kansas Municipal Utilities (KMU) in McPherson, Kansas, was installed as chair of the American Public Power Association Board of Directors during APPA’s National Conference in Orlando, Florida, on June 23.

Anthony Cannon, general manager and CEO of Greenville Utilities Commission in Greenville, North Carolina, is chair-elect for 2021-2022. David Osburn, general manager of Oklahoma Municipal Power Authority in Edmond, Oklahoma, is vice chair. Jolene Thompson, president and CEO of American Municipal Power, Inc. in Columbus, Ohio, is immediate past chair. Layne Burningham, president and CEO of Utah Municipal Power Agency in Spanish Fork, Utah, is treasurer.  

Hansen says one of his key goals is to tell the stories of small public power systems

“One of the things that makes my job so interesting, but also very challenging, is that the defining characteristic of my membership is the small size,” Hansen said in remarks made at the national conference. “I serve 118 public power systems in Kansas and the median size of those 118 public power systems is a utility that serves 932 customers. In fact, only eight of our members serve more than 5,000 customers,” he said.

“If you look more broadly across the United States at the 2,000 public power systems, 82 percent of those serve fewer than 10,000 customers and almost half serve fewer than 2,000 meters,” Hansen noted.

“So given the unique nature of my organization and the Kansas public power community, one of the primary goals in my year as board chair is to tell the stories of the small public power systems, learn the stories of the small public power systems and shine a light on the innovative, professional, resilient and reliable small systems run by incredibly dedicated and energetic public power professionals all across the country,” Hansen said.

“This is not to say that we won’t continue to uplift the absolutely amazing work being done by our large public power systems,” he went on to say. “From SMUD and GRDA to Austin Energy, SRP, LADWP and so many others” including KMU’s largest member, the Kansas City Board of Public Utilities. “Thank you for being public power leaders.”

Hansen said that like large public power systems, smaller public power systems are “doing some really incredible things to.”

By way of example, Hansen noted that the City of Lindsborg, Kansas, a town of 3,500 people, has an “innovative and progressive small public power system. The city leads the way for other Kansas public power systems on adoption of electric vehicles, with the city even purchasing its own Tesla and charging stations to encourage greater tourism in Kansas and load growth for the utility.”

Sioux City, Iowa, which serves 2,700 electric customers, “has been defined by quietly demonstrating bold planning and visionary thinking for well over half a century. All the way back in the 1950s, the city began purchasing hydropower from dams on the Missouri River and even had some years where a hundred percent of the city’s power was provided via hydropower,” Hansen said. In the 1960s, the city moved to convert the electric distribution system to underground lines to improve the utility’s reliability and the city’s aesthetics, he noted.

Another example is the City of Norway, Mich., Hansen said. “Norway is a city of fewer than 3,000 people in Northern Michigan, where they operate their own Sturgeon Falls hydro electric plant and can provide up to 95 percent of their electricity using renewable and carbon free resources,” Hansen said.

“In many small public power systems all across the country, the city took on providing these services because they would have had to do without otherwise,” he noted. “Norway, for example, was one of the first communities in the nation to build its own cable TV system.”

Meanwhile, streetlights were switched on with electricity for the first time in May 1920 “and they have been lighting downtown Jackson Center, Ohio, ever since. Today, Jackson Center has a population of nearly 1,500 and even though their located in a rural area, approximately 1,700 people commute daily to work in the village.” Hansen noted that “the city boasts a great deal of industry including Airstream, the American iconic aluminum travel trailers. Airstream began manufacturing their trailers in Jackson Center in 1952. Today, the company employs more than 1,000 people and turns out over a hundred trailers a week.”

While Kansas-based McPherson Board of Public Utilities only serves just over 8,000 customers in Central Kansas, it has 235 megawatts of generating capacity, Hansen said. He noted that 77 percent of its electric sales are to industrial customers. “With industrial rates 26 percent lower than the national average – not to mention the reliability ratings of 99.99 percent through a fully redundant electric system – the utility has spurred incredible economic development in Central Kansas, serving a vibrant and diverse industrial base that includes plastics, fiberglass insulation and pharmaceuticals.”

Hansen also provided examples of how small public power systems have proven their resilience and grit, as well as noting that both large and small public power systems are “about visionary and urgent leadership and living with urgency.”

In a recent episode of APPA’s Public Power Now podcast, Hansen and Thompson discussed the transition from Thompson as chair of APPA’s Board of Directors to Hansen. Thompson reviewed her accomplishments as board chair, while Hansen detailed what his priorities will be as board chair.

Board members

Hansen chose five members of the board to serve with the officers on the APPA Executive Committee.

They are: John Haarlow, CEO and general manager of Snohomish County PUD in Everett, Washington; Nicholas Lawler, general manager of Littleton Electric Light and Water Departments in Littleton, Massachusetts; Russell Olson, CEO of Heartland Consumers Power District in Madison, South Dakota; Michael Peters, president and CEO of WPPI Energy in Sun Prairie, Wisconsin; and Kimberly Schlichting, chief operating officer and senior vice president of power supply of Delaware Municipal Electric Corporation, Inc. in Smyrna, Delaware.  

Newly elected to the APPA board this year are: Tony Pochard, electric utility director of Anderson Municipal Light and Power in Anderson, Indiana; Paul Mahlberg, general manager of Kansas Municipal Energy Agency in Overland Park, Kansas; David Geschwind, executive director and CEO of Southern Minnesota Municipal Power Agency in Rochester, Minnesota; James Fuller, president and CEO of MEAG Power in Atlanta, Georgia; Paul Lau, CEO and general manager of SMUD in Sacramento, California; Jonathan Hand, executive director of Electric Cities of Alabama in Montgomery, Alabama; and David Carroll, general manager of Paducah Power System in Paducah, Kentucky. 

Five board members were re-elected to new three-year terms: Laurie Mangum, energy services director of City of St. George in St. George, Utah; Edward Krieger, power system director of Piqua Power System in Piqua, Ohio; Darrel Wenzel, CEO and general manager of Waverly Utilities in Waverly, Iowa; David Osburn, general manager of Oklahoma Municipal Power Authority in Edmond, Oklahoma; and Daniel Beans, electric utility director of Redding Electric Utility in Redding, California. 

APPA board members are chosen to represent 10 regions across the country.

FERC approves policy statement on state efforts to develop transmission facilities

June 22, 2021

by Paul Ciampoli
APPA News Director
June 22, 2021

The Federal Energy Regulatory Commission (FERC) on June 18 approved a policy statement that addresses state efforts to develop transmission facilities through voluntary agreements to plan and pay for those facilities. 

The policy statement, which was approved at the Commission’s monthly open meeting, notes that such voluntary agreements include agreements among: (1) two or more states; (2) one or more states and one or more public utility transmission providers; or (3) two or more public utility transmission providers, FERC staff noted in a presentation.

The policy statement also notes that voluntary agreements can further the Commission’s priority of developing cost-effective and reliable transmission facilities by, for example, providing states with a way to prioritize, plan, and pay for transmission facilities that, for whatever reason, are not being developed pursuant to the regional transmission planning processes required by Order No. 1000.  In Order 1000, which was issued in 2011, FERC reformed its transmission planning and cost allocation requirements.

The policy statement also clarifies that voluntary agreements are not categorically precluded by the Federal Power Act or the Commission’s existing rules and regulations. 

The policy statement provides an example of a recent Commission order accepting a study agreement that initiated a voluntary agreement process in the PJM regional transmission organization.

The statement notes that to the extent that states, public utility transmission providers, or other stakeholders believe that the relevant tariffs impose barriers to state efforts with respect to Voluntary Agreements, the Commission is open to filings to remove or otherwise address those barriers. 

Parties considering the use of such agreements are encouraged to contact Commission staff to discuss potential voluntary agreements, FERC staff noted.

FERC, NARUC unveil formation of federal/state task force on transmission

June 22, 2021

by Paul Ciampoli
APPA News Director
June 22, 2021

The Federal Energy Regulatory Commission (FERC) and the National Association of Regulatory Utility Commissioners (NARUC) on June 18 announced the formation of a joint federal-state task force on electric transmission, which FERC established through a related order issued at its monthly meeting.

“Members of this first-of-its-kind task force will explore transmission-related issues to identify and realize the benefits that transmission can provide, while ensuring that the costs are allocated efficiently and fairly,” FERC and NARUC said.

FERC’s order asks NARUC to nominate up to 10 state regulators to join FERC commissioners on the task force.  All task force meetings will be open to the public and will use a dedicated FERC docket for this process to provide stakeholders and the public with the opportunity to comment for the record.

Specifically, the task force will seek to identify barriers that inhibit planning and development of optimal transmission necessary to achieve federal and state policy goals, as well as potential solutions to those barriers, explore potential bases for one or more states to use FERC-jurisdictional transmission planning processes to advance their policy goals, including multi-state goals and explore opportunities for states to voluntarily coordinate to identify, plan and develop regional transmission solutions.

It will also review FERC rules and regulations regarding planning and cost allocation of transmission projects and potentially identify recommendations for reforms and examine barriers to the efficient and expeditious interconnection of new resources through the FERC-jurisdictional interconnection processes, as well as potential solutions to those barriers.

In addition, the task force will discuss mechanisms to ensure that transmission investment is cost effective, including approaches to enhance transparency and improve oversight of transmission investment including, potentially, through enhanced federal-state coordination.

Twenty-two individuals, eleven utilities earn national public power awards

June 22, 2021

by Paul Ciampoli
APPA News Director
June 22, 2021

Twenty-Two individuals and eleven utilities on June 22 were recognized for service to the American Public Power Association and the public power industry during APPA’s National Conference in Orlando, Florida. 

The individuals and utilities recognized at the ceremony were: 

Alex Radin Distinguished Service Award

This award is the highest award granted by the American Public Power Association. The award recognizes exceptional leadership and dedication to public power.

James D. Donovan Individual Achievement Award

This award recognizes people who have made substantial contributions to the electric utility industry, with a special commitment to public power. 

Larry Hobart Seven Hats Award

This award recognizes managers of small utilities serving fewer than 2,500 meters. These managers have a very small staff and must assume multiple roles.

Harold Kramer-John Preston Personal Service Award 

This award recognizes individuals for their service to the American Public Power Association.

Spence Vanderlinden Public Official Award

This award recognizes elected or appointed local officials who have contributed to the goals of the American Public Power Association.

Robert E. Roundtree Rising Star Award

This award is a scholarship presented to future leaders in public power. The recipient receives a stipend to travel to an Association conference or training program to advance their education and development in public power.

Mark Crisson Leadership and Managerial Excellence Award 

This award recognizes managers at a utility, joint action agency, or state or regional association who steer their organizations to new levels of excellence, lead by example, and inspire staff to do better.

E.F. Scattergood System Achievement Award

This award honors American Public Power Association member systems with outstanding accomplishments.

Sue Kelly Community Service Award

This award recognizes utilities for their “good neighbor” activities that demonstrate commitment to the local community.

Energy Innovator Award

The Association’s research program, Demonstration of Energy & Efficiency Developments (DEED), nurtures innovation in public power. Each year, the program recognizes innovative utility projects with this award.