1. 2013 AGA Best Practices Conference Key Performance Indicators within Gas Operations Jennifer Walker Southern California Gas Company and San Diego Gas & Electric January 17, 2013
© 2013 San Diego Gas and Electric and Southern California Gas Company. All copyright and trademark rights reserved.

2. Agenda Overview of SoCalGas and SDG&E operations Our vision of KPIs
Traditional use KPIs
Current KPI management practices
Transitioning to new electronic data collection systems
KPIs in the future
2013 AGA Best Practices Conference
January 17, 2013
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3. About SoCalGas and SDG&E
Provides natural gas distribution service to San Diego County
845,000 natural gas meters
3.5 million consumers
4,100 square miles
2 counties
18 incorporated cities
25 communities
4,900 employees
SoCalGas*
Largest natural gas distribution company in the nation
5.8 million natural gas meters
20.9 million consumers
20,000 square miles
12 counties
232 incorporated cities
More than 500 communities
7,200 employees
*Data is Approximate
2013 AGA Best Practices Conference
January 17, 2013
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4. Our Service Territory (SoCalGas & SDG&E) We serve nearly all Central and Southern California
2013 AGA Best Practices Conference
January 17, 2013
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5. Gas Distribution System
Approximately 112,800 miles of distribution mains and services
Distribution pipeline by material:
Plastic (Polyethylene): 62,000 miles (55%)
Steel: 50,800 miles (45%)
Gas Transmission System
Approximately 4,000 miles of pipeline
2013 AGA Best Practices Conference
January 17, 2013
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6. Underground Gas Storage
Four Storage Locations (all SoCalGas)
Aliso Canyon
Honor Rancho
La Goleta
Playa Del Rey
2013 AGA Best Practices Conference
January 17, 2013
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7. Basic KPI Concept Data Driven Development Analysis Metrics/ Reporting
What is the new action?
How can you influence metric?
Favorable or unfavorable?
What happened?
Analysis
Data Driven Development
Metrics/ Reporting
2013 AGA Best Practices Conference
January 17, 2013
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8. Rationale for our KPIs Different KPIs are reported at different levels
Departmental Objectives
Divisional Objectives
Strategic Objectives
Rationale for our KPIs
Different KPIs are reported at different levels
KPIs must be actionable
KPIs must be relevant to the level of the organization
2013 AGA Best Practices Conference
January 17, 2013
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9. KPI Displays Ensure measurability Ensure relevancy Ensure accuracy
Dashboards
KPIs
Metrics
Data
Ensure measurability
Ensure relevancy
Ensure accuracy
Scorecards and Dashboards
Show graphically – depict trends
View KPIs in single location – balanced picture
Focus on the most valuable KPIs to tailor efforts
2013 AGA Best Practices Conference
January 17, 2013
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10. How KPIs are Determined
First, identify the goal
Then, select/define the KPI(s):
Allow for a thorough discussion among stakeholders
Explore relevancy and consistency
Ensure they are specific, actionable and movable
Strive, when possible, to develop KPIs through a collaborative and iterative process
Who sets our KPIs?
Some are set at the top
Some set at the bottom
Some are set by the Commission/external
Set true KPIs that will show the performance of the organization.
2013 AGA Best Practices Conference
January 17, 2013
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11. How KPIs are Tracked/Reported
Timing
Internal reports – monthly with some weekly
Commission and PHMSA stats – annual report
Commission data reports – quarterly
Who gathers and organizes the data?
Staff groups
Local departments
Most is automated and some requires manual intervention
Who monitors KPIs?
All levels of organization – supervisors to senior management
When KPIs discussed?
Monthly staff meetings
Identify reasons for when significantly over or under targets
Keep KPIs upfront and visible in the organization
2013AGA Best Practices Conference
January 17, 2013
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12. How we use KPIs Validate that safety is a top priority
Support rate cases
Monitor performance of initiatives, projects, programs
Manage operation efficiency
Justify budgets
Predict issues in the future by observing trends.
2013 AGA Best Practices Conference
January 17, 2013
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13. SoCalGas/SDG&E KPI Audiences
The Corporate Card – Highest level report 
The Utility Executive Card – Reports key performance metrics to utility executives – more detailed level 
The Distribution and Customer Service Operating Report – Reports information to regional management – system level. 
2013 AGA Best Practices Conference
January 17, 2013
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14. Traditional KPIs
Safety: injuries, lost-time incidents, motor vehicle incident statistics, etc.
Customer Service Field: # orders worked, PMCs worked, incomplete order %, cost per customer, cost per order, average emergency response time, etc.
Distribution: Locate and Mark cost per ticket, leak survey cost per foot, pending leak counts, new business costs and replacement costs, etc.
2013 AGA Best Practices Conference
January 17, 2013
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15. World is Changing KPI focus today is to develop KPIs that show:
Pipeline integrity/safety
System reliability
Service level responsiveness
System compliance
Notable points to keep in mind:
The public is watching and demanding more information
Safety can always be improved
New regulations coming at State and Federal Level
2013 AGA Best Practices Conference
January 17, 2013
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16. SoCalGas and SDG&E’s Commitment to KPIs
Safety performance will be monitored and evaluated regularly in accordance with state and federal regulations.
Additional performance metrics will be developed and evaluated, as appropriate, to foster a culture of continuous safety improvement.
These performance metrics will be reviewed and communicated in accordance with the schedules identified in the specific policy, program, plan or other document incorporated as part of our Safety Plans.
2013 AGA Best Practices Conference
January 17, 2013
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17. Pipeline Safety Metrics
New regulations are expected to include a formal goal and commitment to move to a more data-driven safety program.
The CA Commission directs CA gas pipeline operators to:
Validate assessments using TIMP program numbers
Measure performance, monitor results, and evaluate effectiveness of all integrity management programs
Consider the results of the performance monitoring in threat and risk evaluations
Report, on an annual basis, the number of leaks and excavation damages to PHMSA and the state pipeline safety authority
Document employee safety communications
2013 AGA Best Practices Conference
January 17, 2013
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18. Transitioning To New Electronic Pipeline Data Collection Systems
We recently introduced new enterprise resource planning (ERP) systems to capture distribution data electronically
As this transition occurs:
Validate data
Train employees
Enhance processes/systems
Consider:
Data quality
Data sources
Use of data for trending
KPI
Analytic Applications
Data Warehouse/Marts
ERP
Legacy Systems
2013 AGA Best Practices Conference
January 17, 2013
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19. Summary Considerations for KPIs
Consider the purpose and the audience   
Don’t focus on a single number
Consider the timing for pulling data
Assess underlying data –
Homogenous
Sufficient sample size
Consistent data collection
Account for data collection costs
Exercise caution when using new KPI data
Do not compete on safety
2013 AGA Best Practices Conference
January 17, 2013
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20. Future for KPIs Post- San Bruno World More data to collect
Tighter definition of terms – industry standardization
Move from paper to electronic data entry
More advanced IT systems needed (data accessibility and validation)
Integrated software essential (GIS – Maintenance)
Need staff focused on data analytics
Monitor compliance, integrity, response and reliability
2013 AGA Best Practices Conference
January 17, 2013
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21. Summary Provided an overview of how SoCalGas and SDG&E view KPIs
Listed some concerns and areas of focus in KPI development
Provided thoughts about current and future KPI trends
2013 AGA Best Practices Conference
January 17, 2013
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