Gas Utility Operations Best Practices Program February 13-14, 2013 Gas Utility Operations Best Practices Program 2013 Quality Management Best Practices Roundtable Le Meridien, Philadelphia, PA Group Discussion Summary – Construction and Leak Repair Facilitator – Nneka Assing

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How should the quality of work being performed be measured Timeliness (arrival time) % of leak repair entered into GIS Record accuracy Error percentage Repeat leaks within xx days Installation time Cycle time % work inspected in compliance with standard

How should the quality of work being performed be measured Measure quality of key workmanship aspects such as weld pass rates and surface prep for coatings (PG&E). Also measuring process steps related to permitting, as-builts, etc. Safety and customer satisfaction are two key metrics that DTE is focused on; contractors and company employees are held to similar metrics. Metrics on scorecard are weighted. Within each metric are specific measures based on system data or feedback from operating groups. They have a comprehensive way of measuring and looking at defect rates. Recently started implementing performance metrics tied to compensation and this is really starting to make a difference. Enbridge – Conducts pre-qualification. Have trigger points for their contractors that can negatively impact bonuses on the contracts if they find issues. They use ISN Worldnet for contractor pre-qual. Also, they review their paperwork on a percentage basis.

Describe the key components of an audit and training program Having a standard to audit against Clearly documented & communicated expectations In-house employees that audit contract crews, but they are required to be rotated A strong contract with contractor QC the contractor training program Geographically available training Effective change management

Describe the key components of an audit and training program On- site training when issues are discovered Including call center when new training occurs Pool of resources that have been trained and are qualified to work on your system (i.e. trade schools, etc.) Welder qualifications are up to date Random, unscheduled site visits

Describe the key components of an audit and training program Integrys - Training is separate from the audit process organizationally; however, auditors go through the same training so they understand the work. Enbridge - The engineering group sets the items for auditing. They asked engineering what points of the audit is considered critical (i.e., fusion) so these critical items are weighted heavier. They give a score for the audit. PSE has a training trust and performs audits of the trainers performing the qualifications PG&E links their document development and implementation (OQ, training) processes to include a review/audit by the Quality department to determine the effectiveness of the training and/or written procedures

Describe the innovative technologies and procedures being implemented RMS program for Leak repair documentation - Alagasco Mapframe – notes added to their mapping system from the field – UGI Utilities GPS for critical valve location – Piedmont GPS transmission work – New Mexico Gas Tablets w/ stylus (Maximo) – South Jersey Gas Photographs attached to work order – PGW/South Jersey Gas

Describe the innovative technologies and procedures being implemented Use of trenchless technology, cured in place liner, and pipe bursting when you don't have many services to tie over – Con Ed Using directional drilling to run a low pressure pipe by a higher pressure pipe. This allows you to move the services over without a major customer impact. – Laclede Gas Using iPads to collect information on a service that goes back to the GIS and the status dots on the map representing the service will change color. This allows back office ticket reviewers (i.e., Ticket Dude) to see what the field people are doing real time. – Integrys

Describe the innovative technologies and procedures being implemented Puget Sound: Have newer inspectors; Also have software "Microsoft Streets & Trips" which will optimize their routing; Using randomizer to do random sampling; cross bores - post construction camera inspections for new construction Sidewalk replacement technology that uses suction cups to pick up a portion of the sidewalk, so the utility can perform work under it. – Laclede Washington Gas: have laptops/smart phones for all Supervisors and can access procedures/standards remotely; Small World - has facilities mapped, with information (date installed) PSEG: uses keyhole technology (trenchless) to cut off stubs/services, using camera technology to look for water intrusion

Performance based accountability Inspectors for contractors Describe key management considerations accounting for differences between employees and contractors Employees Cost Union vs Non-Union Safety Program Performance based accountability Inspectors for contractors

Same processes and criteria Same technologies Quality accountability Describe key management considerations accounting for differences between employees and contractors Contractors Cost Same processes and criteria Same technologies Quality accountability Ease of dismissal Level of Quality Assurance/Control Strategic relationship

Describe key management considerations accounting for differences between employees and contractors Citizens Energy: 100% of construction work is contract, they handle maintenance (leak repairs) in house PG&E: moving toward long-term Alliance Contract arrangement to establish longer term partnerships, expect cost benefits for assurance of long term work Puget Sound: went to a service provider model - they are the asset owner; their employees are first responder (make safe) and contractors take it from there (they don't do any digging)

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