METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...

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BWG found some of the study’s results to be of questionable value. TheConsultant did not find the 10-year workload forecast to be reasonable, in part becausethe Met-Ed and Penelec line workforce forecast projected man hours decreasing from2005 to 2014. Plus, the study used two assumptions that BWG deemed to besomewhat contradictory. The FE-PA Companies’ strategy was to backfill attrition on aone-to-one basis (i.e., one new hire or internal transfer would replace each lineman whoretires, resigns, or leaves for some other reason). The study also assumed productivityimprovements of 1.5% per year based on future improvements in planning andscheduling and modified work practices and process improvement. Nonetheless, BWGfelt that replacing experienced lineman with one of lesser experience would suggest aloss of productivity rather than an improvement.Follow-up Finding and Conclusion No. VI-5 – FirstEnergy has implemented a workmanagement process at the three FE-PA Companies which forecasts line workerstaffing based on historical and future workload.FirstEnergy hired an outside consultant in 2007 to perform a Workload andManpower Planning Analysis. FirstEnergy refined the model and the process that wasrecommended by the outside consultant to include additional focus on forecasting andplanning workload and resource requirements. The model is designed with a number offeatures such as historical, current and future workload, historical and currentmanpower resources, etc. FirstEnergy also introduced a Forecasting and Planningprocess at each of the FE-PA Companies throughout 2010. The process includeddeveloping a Forecasting and Planning Group at each of EDCs which would allow themto estimate the amount of work needing completion with an accurate and balancedstaffing forecast. The process was introduced at Penelec and Penn Power during thesecond quarter and at Met-Ed in the third quarter of 2010. The model that is used bythe Forecasting and Planning Group at each FE-PA Company is similar to the onesuggested by the outside consultant and is intended to help managers gain ameaningful perspective on the past and future nature of line worker workload.The Forecasting and Planning process involves keeping monthly dashboardsand summary workload reports but the Audit Staff was unable to review any of thesereports because the final format for the process was still under development.FirstEnergy management indicated that the process would be refined further in 2011 asit is fully implemented at each FE-PA Company and that once the line workerforecasting and planning process is finalized, a similar process will be implemented forthe substation group. The primary goal of the Forecasting and Planning process is toenable management to review possible gaps in the line work plan, resources, orfinancial targets and adjust and manage the work plan in order to meet operational andfinancial commitments.FirstEnergy does not maintain historical staffing budget data; hence, neitherFirstEnergy nor the Audit Staff could identify any trends in the variances betweenbudgeted and actual staffing levels for prior years. FirstEnergy indicated that thecomparison between actual and budgeted staffing levels for prior years is not madebecause planning and forecasting is based on known and anticipated workload and noton actual versus budgeted staffing levels. Although the Audit Staff thinks that- 44 -
FirstEnergy is following the right method in projecting its staffing needs, we believe thatthe Company would benefit considerably from tracking and trending actual staffinglevels against budgeted staffing levels. Such trends would indicate any problems thatFirstEnergy has had in the past filling certain positions, what can be done to resolvethose issues and be better prepared for projecting future staffing needs; see Follow-upFinding and Conclusion No. X-3, in the Human Resources chapter for further discussionand related recommendation.The FE-PA Companies have established a two year line/substation programcalled the Power Systems Institute (PSI) for hiring future linemen and substationtechnicians. In this program, college students train for two years in several aspectssuch as pole climbing, substation equipment, etc. and upon graduation from theprogram and from college are hired in the line/substation field. The PSI program isdesigned to hire a diverse group of individuals that will fulfill the line worker staffingneeds of the companies. The PSI program begins every fall and the enrollmentnumbers are determined by the attrition forecasts developed by each operatingcompany. Exhibit VI-8 shows the total number of individuals that were hired through thePSI program from 2008 through 2010. These numbers include graduate hires for thePA operating companies from other PSI programs in the states of Ohio and NewJersey.Exhibit VI-8FirstEnergy <strong>Pennsylvania</strong> CompaniesPower Systems Institute Hires2008-20102008 2009 2010 TotalMet-Ed 13 16 21 50Penelec 26 37 31 94Penn Power 4 4 4 12Total 43 57 56 156Source: Data Request EO-22A staffing study and/or workforce management plan should be focused onprojected workload requirements (i.e., manhours) that are based on historical trends forwork activities and estimated hours needed to perform planned work activities. Theestimated workload should be compared to the productive hours available from theworkforce and any gaps in available hours to projected workload needs should beidentified. Any projected gaps could be filled by contractors and/or workers from otherlocations that have excess available hours estimated. Forecasting and planning helpsalign resources with the amount of anticipated workload and provides the data andpredictability to make well informed staffing decisions as far as possible in advance.Staff’s Follow-up Recommendation –None.- 45 -
Page 5: METROPOLITAN EDISON COMPANYPENNSYLV
Page 8 and 9: • Support Services• Human Resou
Page 10 and 11: • Developed and implemented forma
Page 12 and 13: FIRSTENERGY PENNSYLVANIA COMPANIESM
Page 24 and 25: III. AFFILIATE INTERESTSBackground
Page 26 and 27: In addition, subsidiary or related
Page 28 and 29: BWG recommended that a detailed, wr
Page 30 and 31: management. Other potential uses of
Page 32 and 33: IV. CORPORATE GOVERNANCEBackground
Page 34 and 35: V. FINANCIAL MANAGEMENTBackground -
Page 36 and 37: the internal audit was to determine
Page 38 and 39: Committee citing the internal contr
Page 40 and 41: VI. ELECTRIC RELIABILITYBackground
Page 42: Exhibit VI-1Metropolitan Edison Com
Page 45 and 46: provide additional details to the C
Page 47 and 48: Exhibit VI-6FirstEnergy Pennsylvani
Page 49: All three FE-PA Companies have had
Page 53 and 54: Company, and The Toledo Edison Comp
Page 55 and 56: technicians. These strategies are u
Page 57 and 58: VIII. EMERGENCY PREPAREDNESSBackgro
Page 59 and 60: Routine periodic updating of the em
Page 61 and 62: Follow-up Finding and Conclusion No
Page 63 and 64: old excess inventory. Spare invento
Page 65 and 66: controls were automated. Moreover,
Page 67 and 68: Exhibit IX-6FE-PA CompaniesPercenta
Page 69 and 70: FE-PA Companies were unable to iden
Page 71 and 72: Staff’s Follow-up Recommendation
Page 73 and 74: Exhibit X-6Metropolitan Edison Comp
Page 75 and 76: Prior Recommendation - Develop a co
Page 77 and 78: Therefore, BWG suggested that First
Page 79 and 80: XI. CUSTOMER SERVICEBackground - Th
Page 81 and 82: Exhibit XI-2FE-PA CompaniesPercenta
Page 83 and 84: Exhibit XI-5FE-PA Companies Compare
Page 85 and 86: Exhibit XI-7FE-PA Companies Compare
Page 87 and 88: Follow-up Finding and Conclusion No
Page 89 and 90: uilding, in an effort to protect re
Page 91 and 92: Companies would submit a supplement
Page 93 and 94: 3. The "four-fifths" rule (underuti
Page 95 and 96: Met-Ed has female underutilization
Page 97 and 98: Exhibit XII-4Page 1 of 2FirstEnergy
Page 99 and 100: The number of years that FirstEnerg
Page 101 and 102:
FE-PA Companies do track purchases
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