PROFILE - Avista
Transcription
PROFILE - Avista
OUR COMPANY THE PEOPLE AND PROCESSES THAT MAKE AVISTA SUCCESSFUL organizational PROFILE Avista generates and transmits electricity and distributes natural gas, while providing innovative energy solutions for our residential, commercial and industrial customers. We are a regulated business unit of Avista Corp., an investor-owned corporation headquartered in Spokane, Wash. As one of the largest taxpayers in the region, our economic impact approximates $360 million, and supports family-wage jobs in rural, suburban and urban communities in our 30,000 square-mile service territory in eastern Washington, northern Idaho and parts of southern and eastern Oregon and Sanders County, Montana. 4 OUR COMPANY Kettle Falls Seattle Noxon Coeur d’ Alene WASHINGTON Olympia Othello Stevenson Portland Spokane OUR GUIDING PRINCIPLES Sandpoint Goldendale Pullman Clarkston MONTANA Missoula Moscow Lewiston Helena Grangeville La Grande Salem OREGON IDAHO Boise Roseburg SERVICE TERRITORY Medford Klamath Falls Electric and Natural Gas Natural Gas Trust: You can trust what we say, because our word is reliable. Integrity: We do what is right, because integrity is essential to trust. Innovation: We find ways to get things done, because innovation leads to solutions. Relationships: We are respectful of all peopleat all times, because this strengthens relationships. Collaboration: We are our best when working together, because collaboration leads to worthy results. O U R C O M M I T M E N T TO DIVERSITY S E L E C T E D C O M PA N Y S TAT I S T I C S (as of Dec. 31, 2011) Avista Corp. total annual revenue $ Avista Corp. net income $ Number of employees Number of customer accounts Retail — electric Commercial/industrial — electric Retail — natural gas Commercial/Industrial Natural Gas Population of service area Certain principles have stood the test of time and remain deeply rooted in our company. Every aspect of what we do continues to be aligned with these principles: 1,619,780,000 100,224,000 1,594 358,215 40,998 318,337 33,833 1,590,341 Avista is enriched by the diversity of our employees. We are committed to the goals of Equal Employment Opportunity and Affirmative Action, maintaining an environment of acceptance and inclusion for everyone in all aspects of our daily operations. Our employees and our company value diversity and mutual respect, and the work place is free from harassment and discrimination for employees, 5 OUR COMPANY customers, suppliers and other stakeholders in all aspects of our daily operations. Our EMPLOYEES The culture at Avista is based on integrity and respect. We offer employees the chance to enrich their careers through challenging and meaningful work assignments, and ongoing training and development — all in an equal opportunity workplace that is surrounded by a supportive environment. Our success lies in hiring talented people and setting them free to pursue great ideas — ideas that engage the imagination, stretch us all and ensure that Avista continues to provide exemplary and cost-effective service to our customers. Our workforce reflects the communities we serve — approximately 6.9 percent of our employees system-wide identify themselves as minority. Spokane County, home to our headquarters and some 1,100 of our employees, has approximately 8 percent minority population in the work force. Roughly 27 percent of our employees will be eligible to retire in the next five years, and 43 percent will be eligible to retire in the next 10 years. However, we’ve planned for this shift in our demographics, and through professional development programs coupled with careful succession planning, we continue to develop our workforce to keep ideas fresh and leadership strong. Avista does periodic assessments of future retirement scenarios to anticipate how to attract, retain and develop critical talent needed for the continued effective operation of the company. W O R K I N G AT AV I S TA Local Hiring In an ongoing effort to recruit qualified local employees, we post positions on local job web sites such as Worksource (WA) and Idahoworks (ID) as well as through traditional and social media channels (Facebook, craigslist and Linked In) and on our company website. In addition, we submit our external job postings to more than 80 agencies across Washington, Idaho, Oregon and Montana. As appropriate, we also notify local schools of student employment opportunities. Of the 13 executive level officers employed by Avista, eleven were hired locally (from within the Inland Northwest region). Collective Bargaining At Avista, 43 percent of employees are covered by collective bargaining agreements and 57 percent are not. Avista employees are represented by the International Brotherhood of Electrical Workers, Local 659 (Oregon) and Local 77 (Washington/Idaho). Performance Reviews All regular, non-bargaining unit employees receive formal performance reviews on an annual basis and updates at mid-year. Our union employees receive periodic evaluations as needed. Supporting Military Service It is Avista’s policy to grant military absence and military time off without a break in service time or benefits, as required by law and in accordance with the needs of employees who are members of the military service. Currently, Avista has approximately 112 self-declared veterans of military service, about 7 percent of our work force. As the number of veterans returning home from service increases, Avista is actively working with local organizations to identify opportunities to support veterans-to-work initiatives. Engaging our Employees Avista employee engagement — their level of commitment to and satisfaction with employment at Avista — has been measured every two years, beginning in 2006, in partnership with the independent consulting firm, Mercer. 6 OUR COMPANY E M P LOY E E E N GAG E M E N T WHO WE ARE Years 2010 2008 2006 B oard of Directors • 33 percent female • One of the 11 directors identifies as a minority Corporate Officers • 29 percent female • No officers identify as a minority • Of the top 5 executive officers, 2 are female Employees • 30 percent female, 70 percent male • 6.4 percent identify as a minority Employee participation (Completing the survey) 74% 69% 72% Level of employee engagement in Avista 79%* 79% 74% * This level of employee engagement is 7 percent higher than the norm for the utility industry as measured by Mercer. A wide array of communication tools are used to keep our employees informed about our company, our industry and current trends in the energy industry. These include electronic and print newsletters and emails, issue-specific information sheets, prepackaged information tools for managers, and quarterly town hall meetings with executives. In addition, an employee social media roundtable meets periodically to help frame the content and use of Avista’s presence in this media channel — Facebook, Twitter and the Avista Blog. Avista’s employee population demographics are aligned with the available external workforce for similar occupations. PROGRAMS AND PROCESSES T O E N S U R E T H E AVA I L A B I L I T Y OF SKILLED WORKFORCE Avista Scholars Program Avista partners with colleges and universities throughout our three-state service territory to provide several different scholarship opportunities for students. The mission of the Avista Scholars program is to promote excellence in the fields of math, science, technology and engineering, leading students to become innovators, problem solvers and diverse, talented employees of our future. S H A R E D VA L U E O P P O R T U N I T Y F I N A N C I A L A I D A N D P R AC T I CA L E X P E R I E N C E L E A D TO S U C C E S S “I was part of the Avista Scholars program in my senior year at the University of Idaho. I chose engineering because I loved math in high school. I job shadowed and had a summer internship with two different utilities, working on projects like GIS mapping of all the electrical distribution equipment. Being an Avista Scholar helped me better understand the engineering field, provided much need financial support for my studies, and helped me stand out when I applied to Avista for this job in electrical engineering. This was a very beneficial program.” ELIZABETH REESE, Entry Engineer, Employee since 2011 7 OUR COMPANY Partnership with the Community College Avista partners with Spokane Community College to offer a course that provides an introduction to the electric lineman field through the Line Pre-Apprentice Program. It is held at Avista’s Jack Stewart Training Center, a 10-acre lineman training facility, and is open to individuals interested in entry-level positions leading to careers in the electric line worker craft. Participants learn, through hands-on and classroom experience, the skills and knowledge required for the position of a line crew helper. Training opportunities at Avista are delivered through instructor-led, computerbased, field and workshop models that include: craft, customer service, environmental, natural gas, desktop, warehouse, project management, gas for non-gas workers, health and safety, leadership development, electric, flagging/ forklift, line, apprentice, journeyman, power resources, hydro and power supply. OPPORTUNITIES FOR CONTINUED LEARNING AND P R O F E S S I O N A L D E V E LO P M E N T Aspiring Leaders Program In its 10th year, the Aspiring Leaders Program provides development for those employees preparing to be considered for future leadership roles. This one-year program provides qualified employees exposure to a variety of departments, training, mentoring and includes a team project. College Tuition Aid The company provides tuition assistance of up to $2,500 each year for undergraduate and master’s level studies in programs that add to employees’ performance and effectiveness in present or foreseeable jobs within the company. Learning Center Avista’s Learning Center was established in 1998 to promote lifelong learning for all employees. The center focuses on being proactive rather than reactive in terms of training and learning opportunities. Resources available include audio/video tapes, books, journal/periodicals and self-study courses. Workshops, Classes and Development Programs Avista offers a series of workshops and classes that are open to all employees, as part of an overall professional and leadership development program. Topics include leadership enhancement, business process improvement and change management. We also provide training opportunities for understanding more about the role of leadership, utility strategies and operations through programs offered by the Western Energy Institute. American Gas Association, Edison Electric Institute, University of Idaho, Willamette University, Gonzaga University and others. T R A I N I N G F O R P R O C E S S I M P R OV E M E N T If you’ve ever seen a process and said, “I know that could work so much better,” you’ll understand the value that Avista’s Business Process Improvement (BPI) Leader Program is bringing to Avista employees. The purpose of the BPI Leader Program is to equip and certify employees in the BPI methods (lean process improvement) and enable them to lead projects that benefit customers, employees and the company. The valuable skills participants gain through BPI will eventually become a long-term core organizational capability as we continually look for ways to improve our business. The BPI Leader Program is a part-time, year-long program that consists of both training and project experience. 8 OUR COMPANY E M P LOY E E H E A LT H P R E PA R E D N E S S A N D A S S I S TA N C E S A F E T Y A N D H E A LT H A safe and healthy work environment is an essential part of our commitment to all our employees. Fortunately, we had no employee fatalities as part of our 2011 operations. Our focus continues to be on reducing the rate of vehicle accident and lost time incidents, because we want every employee to go home safely to their family at the end of their shift. Avista’s Central Safety Council is committed to providing the safest workplace possible and a safe environment for all of our employees, their families and the communities we serve. It reports quarterly to the Energy, Environmental and Operations Committee of Avista’s Board of Directors. The Central Safety Council’s mission is to act as a forum to provide leadership and direction to the safety efforts; advocate the steps needed to achieve safety goals; coordinate, monitor and focus on safety and prevention; and ensure proper action will be taken to provide a safe and healthy work environment for all our employees. There are 37 location-specific safety committees and safety chairmen throughout Avista’s service territory. F O C U S O N S A F E W O R K P R A C T I C E S PAY S O F F Employees in Avista’s Natural Gas Delivery department scored a big fat zero in 2011 – a couple of them, in fact. They had zero vehicle backing accidents and zero eye injuries during calendar year 2011. From managers to servicemen, gas delivery employees put their safety knowledge into action every day on the job. Vehicle backing accidents for this group have been trending to zero over the past three years as a direct result of using safe work practices, including placing cones around parked vehicles, doing vehicle walk-arounds and using a second employee as a spotter when backing up. It’s a similar story with achieving zero eye injuries, where there had been an increase in the number of eye injuries for several years. With the regular use of safety glasses and follow-up information at safety meetings, the 2011 rate for eye injuries in Natural Gas Delivery fell to zero. In the event of widespread illness, Avista has a pandemic emergency plan in place that includes work force, community and family assistance elements. The plan was created to provide employees with information, support and policy guidance prior to, during and following a regional pandemic event that impacts our ability to provide services to our communities. Coordinated response procedures are instrumental in effectively maintaining our customer services during a long-term pandemic event. In addition, employees and families receive education, training, counseling, treatment and prevention/risk control opportunities through the Occupational Health Department and the company health and wellness programs. Avista maintains an on-site clinic in the main office with occupational and safety professionals available to serve all locations. The company provides an Employee Assistance Program, and a Health Reimbursement Arrangement (HRA). And to foster ongoing wellness, onsite exercise facilities are provided in many work locations throughout our service territory. 9 OUR COMPANY H E A LT H A N D S A F E T Y T O P I C S C OV E R E D I N F O R M A L AG R E E M E N T S W I T H T R A D E U N I O N S Avista has the intent and the commitment to follow all federal, state and local health and safety regulations and compliance programs. We work with our craft representatives to promote safety from the foremen to their crews. Our Labor/ Management Committee meets quarterly or as needed to address problems and concerns. A joint union/management Safety Advisory Committee addresses safety issues and works to address safety concerns, including injury and incident review and personal protective equipment recommendations. The union contracts also include grievance and arbitration language to deal with safety concerns or complaints. POLICIES AND REQUIREMENTS F O R H E A LT H A N D S A F E T Y Avista is under the jurisdiction of numerous regulatory agencies for employee safety, including Occupational Safety and Health Administration (OSHA), Washington Division of Occupational Safety and Health (DOSH), Oregon Department of Occupational Safety and Health (OREOSHA), and the Department of Transportation (DOT). Our Safety Handbook includes an accident prevention plan as well as safety rules and practices for the different operating units. In addition, Avista has developed Standards Manuals that include safe work practices materials and procedures. There are numerous training programs conducted internally and externally as required for employee and contractor safety by OSHA, DOT, DOSH and OREOSHA. A combination of instructor led, third-party and online training programs are used throughout the year to keep employees properly trained and safe. Avista supplies personal protective equipment for employees as needed for their work, including the tools, equipment and machinery required to perform their jobs safely. Ergonomic equipment is used whenever possible to reduce potential injuries. Contractors and sub-contractors are required to follow all regulatory rules and regulations as they relate to personal protective equipment when working on Avista systems. Other programs that ensure a safe workplace include: •A substance abuse prevention program, including pre-employment, random, for-cause and post-incident segments; •Operator Qualification training for gas employees to ensure safe operation of gas systems; •OSHA required training in craft work areas; and •Pre-job review and orientation for contractors awarded bids on Avista properties. P R E PA R I N G F O R R E T I R E M E N T Avista has a defined benefit pension plan covering substantially all regular full-time employees at Avista Utilities. Individual benefits under this plan are based on the employee’s years of service and average compensation. The company’s funding policy is to contribute at least the minimum amounts that are required to be funded under the Employee Retirement Income Security Act, but not more than the maximum amounts that are currently deductible for income tax purposes. 10 OUR COMPANY GOVERNANCE G OV E R N A N C E S T R U C T U R E The board of directors of Avista Corp. has long adhered to governance principles designed to assure the continued vitality of the board in the execution of its duties. The board is responsible for management oversight and providing strategic guidance to the company. The board believes that it must continue to renew itself to ensure that its members understand the industry and the markets in which the company operates. The board also believes that it must remain well-informed about the positive and negative issues, problems and challenges facing the company and markets so that the board members can exercise their fiduciary responsibilities to the company’s shareholders. The board committees are Audit Committee, Governance/Nominating Committee, Compensation and Organization Committee, Finance Committee, Energy Committee, Environmental and Operations Committee, Executive Committee. Information about these committees is available online at avistacorp.com. C O M P O S I T I O N O F T H E B OA R D According to the company’s Articles of Incorporation, the board will consist of no more than eleven directors, as determined by the board from time to time. The majority of the board will consist of directors who meet applicable independence requirements of the New York Stock Exchange (“independent directors”), which will be determined by the board on an annual basis. Beginning in 2012, members of the board are elected annually. For most of the company’s history the Chief Executive Officer has also served as Chairman of the Board. The board does not have a policy as to whether the role of CEO should be separate from that of chairman. The board selects the chairman in a manner that it determines to be in the best interests of the company and its shareholders. This flexibility has allowed the board to determine whether the role should be separated based on the individuals serving and circumstances existing at that time. The board believes that it needs to retain the ability to balance the independent board structure with the flexibility to appoint as chairman someone with hands-on knowledge of and experience in the operations of the company. The board periodically examines its governance practices, including the separation of the offices of chairman and CEO. INDEPENDENCE It is the policy of the board that a majority of the directors will be independent from management. Independence determinations are made on an annual basis at the time the board approves nominees for election at the next annual meeting and, if a director joins the board between annual meetings, at that time. As of Dec. 31, 2011, there were 11 members of the board, 10 of whom are independent. The chairman of the board is the president and CEO of Avista Corp. CODE OF ETHICS We strive to achieve the highest business and personal ethical standards, as well as compliance with the laws and regulations that apply to our business. Obeying the law, both in letter and in spirit, is the foundation on which this company’s ethical standards are built. Because our business depends upon the reputation of the company, the board, officers and employees for integrity and principled business conduct, Avista’s Code of Ethics goes beyond the requirements of the law. It is the obligation of each and every member of the board and each officer and employee of Avista to become familiar with the goals and policies of the company and integrate them into every aspect of our business. Our standard has been, and will continue to be, that of the highest ethical conduct. 11 OUR COMPANY C O M M U N I CAT I N G W I T H T H E B OA R D C O M P E N S AT I O N O F D I R E C TO R S B OA R D M E M B E R S H I P CRITERIA Shareholders and other interested parties may send correspondence to the board or individual directors through the Avista Corporate Secretary’s office. All communications will be forwarded to the person(s) to whom it is addressed unless it is determined that the communication does not relate to company or board business, is an advertisement or other solicitation, is frivolous or offensive, or is otherwise not appropriate to deliver. Shareholder proposals, in writing, may be delivered to the company’s Corporate Secretary. Specific information about the process to do this can be found in the company’s proxy. Directors’ compensation is determined by the board, based on recommendations of the Governance/Nominating Committee. Members of management who are also directors will not receive additional compensation for their service as directors. The board believes that it is important to align the interests of the board with the company’s shareholders and, accordingly, a portion of directors’ compensation will be provided and held in company stock. The Governance/Nominating Committee annually reviews with the board the composition of the board as a whole and recommends, if necessary, steps to be taken so that the board reflects the appropriate skills, attributes and characteristics required of board members all in the context of an assessment of the needs of the board and the company at the time. In conducting this assessment, the committee considers diversity, retirement age, skills and such other factors as it deems appropriate. REPORTING SUSPECTED V I O L AT I O N S The message hotline number (1-877-861-6690) provides an alternate point of access for serious concerns regarding possible breaches of the Code of Ethics, corporate policies, business ethics or environmental practices. CONFLICTS OF INTEREST The company requires its board of directors, officers, employees, consultants, representatives and agents to avoid conflicts of interest, or even the appearance of such, between their obligations to the company and their personal affairs. None of these persons shall have an interest, position or relationship with any person, firm or corporation with whom the company does business or competes, if such interest, position or relationship would influence or might be likely to influence the actions of such individual in the performance of his or her duties. S AY- O N - PAY At the May 2011 annual meeting, Avista’s shareholders approved the proposed non-binding advisory vote on the company’s executive compensation program. The shareholders also voted to have the non-binding advisory vote appear annually in the company’s proxy statement. 12 OUR COMPANY Awards and recognitions for AVISTA IN 2011 •Top Electric and Natural Gas Utility Website in the West; ranked Second Electric and Natural Gas Utility Website in the United States — E Source •Top Utility in the U.S. for Social Media — E Source •Named as one of the top 15 Utilities in the U.S. for Energy Efficiency and DemandSide Management — Target Rock Advisors, LLC •Governor’s Commute Smart Award for Best Employee Transportation Coordinator — Washington Department of Transportation •Recognized by Deer Park (Wash.) School District for “Support of Children” •Recognized by Spokane Public School District for partnering on energy efficiency projects ($2 million in incentives 20052011) •Governor’s Commute Smart Legacy Award — Washington Department of Transportation •Spokane County CTR All Star Award — Spokane County Commute Trip Reduction Office •Ranked 13th among the Top 25 Corporate Philanthropists, Large Companies, in the state of Washington — Puget Sound Business Journal •Gold LEED Certification, Avista HVAC Renovation Project, Fourth Floor Commercial Interior — U.S. Green Building Council •ENERGY STAR Certification, Avista’s Spokane Valley Contact Center — U.S. Environmental Protection Agency •Ranked 5th in the Target Rock Sustainable Utility Index (out of 49 companies) •Washington State Life Saving Award — Washington Governor’s Industrial Safety and Health Advisory Board •Washington State Pole Rescue Competition — 2nd place — Washington Governor’s Industrial Safety and Health Conference •2012 Child Advocate of the Year — Providence Sacred Heart Children’s Hospital, Spokane, Wash. 13 OUR COMPANY — BY THE NUMBERS T O TA L W O R K F O R C E B Y E M P LOY M E N T T Y P E A S O F D E C . 3 1 , 2 0 1 1 Full time Part time Temporary Student Other 2011 1,441 84 44 9 16 2010 2009 1,401 75 47 12 19 1,390 76 27 18 22 C O M PA N Y C O N T R I B U T I O N S T O D E F I N E D B E N E F I T P L A N ( P E N S I O N ) 2011 $26 million 2010 $21 million 2009 $48 million 2008 $28 million 2007 $15 million TRAINING PROGRAMS 2011 2010 Pre-Line School Total students graduated 73 70 Hours of training 45,552 43,680 Credits awarded per student 49 49 Apprentices — All Crafts Total number of apprentices and journeymen trained 41 48 Number of active programs 9 10 Hours of training on the job 85,280 99,840 Hours of classroom training 2,269 4,310 Journeyman Training Electric/Generation 3,540 8,773* Gas refresher 1,565 1,840 2009 64 39,936 49 57 10 118,560 6,172 1,880 1,824 * In 2010 Avista added crane operator training and certification, and fork lift training, dramatically increasing the number of training hours for apprentices 14 OUR COMPANY — BY THE NUMBERS SAFETY 2011 Vehicle incidents per million miles driven6.03 2010 7.8 2009 2008 2007 9.16 9.14 7.03 Work-related injuries per 200,000 hours worked6.42 3.73 4.27 4.52 5.08 Lost-time incidents per 200,000 hours worked2.5 1.68 1.62 1.35 1.67 Employee fatalities0 0 0 1 0 Injuries to the public 2 0 1 0 3 15 OUR COMPANY — BY THE NUMBERS S T R AT E G I C O B J E C T I V E S F O R 2 0 1 2 An integral part of our work at Avista is to establish a clear line of sight for employees from the work they do every day to the outcomes that bring the most value to our customers, our shareholders and our communities. The following objectives have been established to meet that goal. We will report on our progress to achieving these objectives in subsequent reports. StrategyTarget Goal Customer Satisfaction Consistently maintain customer satisfaction 90% satisfied as measured through the Voice of the and very satisfied Customer rating System Reliability Ensure that generation, Reliability Index transmission and distribution = 1.0 or better systems reliably and cost-effectively meet customer energy requirements IRP Electric Efficiency Acquire all cost-effective 49,844,000 conservation to help customers KWh saved get the most value for the energy they choose to use IRP Natural Gas Acquire all cost-effective conservation 2,489,094 to help customers get the most value Therms saved for the energy they choose to use Generation Plant Efficiency Ensure that generation, 93% transmission and distribution availability systems reliably and cost effectively meet customer energy requirements Employee Engagement Maintain engagement “drivers” 75% that keep our employees involved engagement and committed to Avista 16 OUR COMPANY — BY THE NUMBERS StrategyTarget Goal Employee Injury Continuously reduce the number 10% and severity of incidents for reduction a 13-month rolling period Lost Time Incidents Continuously reduce the number 10% and severity of incidents for reduction a 13-month rolling period Vehicle Incidents Continuously reduce the number 10% and severity of incidents for reduction a 13-month rolling period Employee Volunteerism Be an integral part of the 50,000 communities we serve and a hours annually contributor in mutually beneficial ways Natural Gas Dig-ins Maximize awareness and Reduce dig-ins adoption of safe practices that by 10% per support our response to public safety 1,000 locates Reach and Frequency Maximize awareness and 100% of Natural Gas Public adoption of safe practices that of stakeholders Safety Education support our response to public safety Natural Gas Emergency Response Maximize awareness and adoption of safe practices that support our response to public safety Meet natural gas response targets on 93% of calls 17
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