CSD-14 Partnerships Fair – May 2006 USEA/USAID Energy Partnership Program Partnering the world of...

CSD-14 Partnerships Fair – May 2006

USEA/USAID Energy Partnership Program

Partnering the world of energy management

Gordon Weynand, Energy Team Leader, USAID Barry Worthington, Executive Director, USEA

James Connelly, Commissioner, MDTE


Gordon Weynand

Energy Team Leader,United States Agency for

International Development Bureau for Economic Growth,

Agriculture and Trade


Sustaining Economic Growth

□ There is a need for energy prices to encourage reliable economic growth and job creation

□ Expensive, unreliable electricity cripples economies and restrict job opportunities


Lack of Commercial Electricity

□ Hospitals cannot refrigerate vaccines

□ Schools cannot provide adequate lighting

□ Farmers cannot use pumps to irrigate their fields

□ Clean water systems cannot function


Energy & Security

□ Adequate energy infrastructure is critical for combating unemployment, illiteracy, the spread of infectious disease, environmental degradation, and the cycle of poverty in developing countries

□ Poverty and instability pose an increasingly significant geopolitical risk to countries around the world


USAID’S ROLE IN ENERGY

□ Access to affordable, reliable, clean, and efficient energy services is essential to breaking the cycle of poverty and achieving sustainable development

□ Public/Private Partnerships□ Technical Assistance□ Training


Barry Worthington

Executive Director,United States Energy

Association


About the Energy Partnership Program

□ Practioner-to-practioner partnerships

□ Transferring commercially viable, market-oriented approaches to overseas electric and gas utilities, as well as energy regulators

□ Result in a two-way exchange of “best practices” between the US and overseas partners


Quantity of Partnerships (since conception in 1990)

□81 partnerships in 30 developing countries

□Over 12,000 executives have participated pro bono

□$ 58 million in donated time and expertise


EPP Key Issue Areas:

□Efficiency Gains in Electricity Transmission□Improving grid codes□Improving system maintenance□Operating regional transmission networks

□Energy Regulation□Improving public hearings process□Improving license procedures□Improving staff management


EPP Key Issue Areas (continued):

□ Best Practices in Electricity Distribution□Billing and metering□Tariff collection□Management of technical losses and theft

□ Accurate and Informed Energy Reporting by the Media□Key energy issues□Journalism standards


EPP Key Issue Areas (continued):

□ Energy Markets□Rules of participation in regional market□Financing independent market operator□Regional regulation

□ Power Generation□Financing new generation□Improving maintenance of power plants□Optimizing contracts with Independent Power

Producers


Partnership Outcomes

Results impact reliability, affordability, economic viability, and social & environmental sustainability – improving the reliability and access of commercial electric delivery

Examples include:□Rules and financial contributions of

membership in the West Africa Power Pool are based on the Southwest Power Pool in Little Rock, Arkansas

□BENEFIT: Allows self-financing and improved reliability in region


Partnership Outcomes (continued)

□ Dhaka Electric Supply Company in Bangladesh (DESCO) established a handbook of maintenance practices based on the Sacramento Municipal Utility District and Clark Public Utilities of Washington State□ BENEFIT: Saving money on maintenance to apply

towards improved service

□ The Office of Utility Regulation in Jamaica improved its power reporting requirements based on the Missouri and Rhode Island regulatory commissions□ BENEFIT: Now able to inform customers of power

outages and expected restoration



□ In Angola, the national distribution company is developing a slum electrification program with the assistance of a utility in Salvador, Brazil□ BENEFIT: Replication of a successful international

program to help reach an underserved population

□ The Armenian Regulatory Commission developed a tariff methodology for natural gas with the help of the Kentucky Public Service Commission□ BENEFIT: Sustainable gas service to ensure supply to

consumers



□ In Mongolia, the regulatory commission has adopted a life-line tariff due to exposure of similar tariffs in the program□ BENEFIT: Society’s poorest consumers have access to

affordable electricity

□ The Bhutan Power Corporation adopted a performance based incentive system after seeing it in Southern Africa□ BENEFIT: Improves performance for customers


Unexpected Outcomes

□ Positive Surprise□Existing practices confirmed by comparing

against standards of US partners□Growth of interest from potential international

partners

□ Negative surprise (obstacle)□Information is not readily shared between

participants and field staff who are not chosen for exchange activities


Future Challenges/ Next Steps

□ Funding and incorporating the many countries who wish to participate into the program

□ Insuring that overseas partners utilize the information received by U.S. companies


James Connelly

Commissioner, Massachusetts Department of

Telecommunications and Energy


Example from Partner (Massachusetts Commission)

□ How the partnership operated□In MA, staff were matched with counterparts

who oversee Benchmarks and Performance Measurement, Customer Service & Dispute Resolution, and Performance Based & Cost of Service Regulation



□Lessons learned from Massachusetts:

□Administrative Law – importance and application

□Due Process Hearings – Transparency and balance of interests

□Appellate Procedures – How cases are considered by a regulatory commission



□ The Central Energy Regulatory Commission of India developed a two-part, performance-based tariff based on MDTE’s tariff structure

□ MDTE provided the National Electrification Administration and Energy Regulatory Board of the Philippines with its experience in utility restructuring

□ MDTE provided the Romanian regulatory agency with tariffs and operational rules when it was first developing its own tariffs



□ MDTE gave the Egyptian commission software valued at over $100,000 to track customer calls and data to develop a call center

□ MDTE met with the Pakistani regulators and provided them with information to set sustainable, market-based tariffs



□ MDTE gave the Egyptian regulators the following documents to help in developing Egypt’s rules and operations:

□ copies of MA laws, rules and regulations used to ensure independent decision making

□ Copies of MA license applications and rules of licenses

□ Sample transcript of a MA license hearing



□ Partnership was also beneficial for MDTE□Developed staff presentation skills□Exposure to international regulatory practices

and how they compare with the NE region of the United States


Questions?

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CSD-14 Partnerships Fair – May 2006 USEA/USAID Energy Partnership Program Partnering the world of...

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