20170914Pugliese Direct.pdf

ON BETIALE OE AVTSTA CORPORATION
DAVID J. MEYER
VICE PRESIDENT AND CH]EF COUNSEL FOR
REGULATORY & GOVERNMENTAL AEEAIRS
P.O. BOX 3727
1477 EAST M]SSION AVENUE
SPOKANE, WASHTNGTON 99220-3127
TELEPHONE: [phone]
FACSIMILE: [phone]
DAV] D . MEYERGAVTSTACORP . COM
ON BEIIAI,F OE HYDRO ONE LIMITED
ELIZABETH THOMAS, PARTNER
KARI VANDER STOEP, PARTNER
K&L GATES LLP
925 EOURTH AVENUE, SUfTE 2900
SEATTLE, WA 981014-1158
TELEPHONE: [phone]
EACSIMILE: [phone]
LI Z . THOMASGKLGATES . COM
KAR] . VANDERSTOEPGKLGATES . COM
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BEEORE THE IDAHO PT'BLIC UTILTTIES COMMISSION
IN THE MATTER OE THE JOINT
APPL]CAT]ON OF HYDRO ONE LIMITED
(ACTING THROUGH ITS TNDIRECT
SUBSIDIARY, OLYMPUS EQUITY LLC)
AND
AVISTA CORPORATION
FOR AN ORDER AUTHORTZ]NG PROPOSED
TRANSACTION
CASE NO
CASE NO
AVU-E-17_O?
AVU-G-17-_gi
DTRECT TEST]MONY
OE
EERIO G. E. PUGLTESE
EOR HYDRO ONE LIMITED
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I. INTRODUCTION
A. Please state your name and business address.
A. My name is Eerruccio (Ferio) G. F. Pugliese.l My
business address is 483 Bay Street, Toronto, Ontario M5G 2P5.
A. By whom are you employed and in what position?
A. f was appointed September 2076 to Executive Vice
President, Customer Care and Corporate Affairs at Hydro One
Networks fnc. ("Hydro One Networks" or "Company"). Hydro One
Networks is an indirect, wholIy-owned subsidj-ary of Hydro One
L j-mited ("Hydro One" ) and serves more than 1 . 3 million
residential- and business customers in Ontario, Canada. Hydro
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72 One Networks is the largest business segment of Hydro One.
and business13A. Please sumnarize your education
I4 extrrerience
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A. f earned an Honours Bachelor of Arts degree in
Social Science, Communication Studies and an Honours Bachelor
of Commerce degree from the University of Windsor. I received
a Master of Arts degree in Adult Education from Central
Michigan and completed the IVEY Executive Devel-opment Program
at the University of Vilestern Ontario. Experience prior to
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1 Pronounced EAIR-RIO POO-LIASE-EH.
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joining Hydro One is reflected on my r6sum6, Exhibit No. 6,
Schedule 1.
A. P1ease describe the responsibilities of your
current position.
A. My primary responsibilities for Hydro One Networks
include customer service, indigenous relations, market
solutions, government relations, and communications. As the
Ieader of the customer service organization, I am responsible
to 1.3 millionfor the provision of high quality service
10 customers, including rural- residential customers, focal
11 distribution companies, and the large-use businesses in our
72 province. This includes responding to customers' inquiries
13 when they contact the call center; ensuri-ng a dedicated team
L4 of account executives is availabl-e for our large-use
15 customers,' obtaining meter readings; issuing timely and
76 accurate bills; providing online tools and products for our
1-7 customers to monitor their electr j-city usage i processing
1B customer payments;
f inancial-
managing the collections program; and
assistance to low-income customers.
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Through interactions with our customers, Hydro One
Networks aims to educate customers about their biII, expJ-ain
electricity prices, provide energy usage analytics, and offer
social service assistance to low-income customers.
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Sr:srmary of Testimony
A. What is the puqpose of your direct testimony in
this proceeding?
A. The purpose of my testimony is as fol-Iows:
o describe Hydro One Networks' customer service
philosophy and supporting programs;
o describe Hydro One Networks' customer service
record and improved practices that have been
deployed, demonstrating its commitment to directly
address problems in a meaningful way;
o describe Hydro One Networks' experience and
priorities rel-ated to providing electric service to
the rural and remote regions of Ontario, including
First Nations Communities; and
o identify opportunities for Hydro One and Avista to
collaborate on enhancing and improving service to
the customers of Hydro One and Avista.
My testimony will explain why, from a customer perspective,
Hydro One is the right partner for Avista, and that over time,
through our combined focus and commitment to customers as
well- as our aligned customer service philosophy, Avista
customers will benefit from the partnership between Hydro One
and Avista.
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I. HYDRO ONE NETWORKS' CUSTOMER BASE AI.ID COMMITMENT TO
CUSTOMERS
9. Please e:<plain the nature of Hydro One's service
territory in Ontario.
A. We distribute electricity to over 1.3 million
residentiaf and business customers covering approxi-mately
seventy-five percent of the
including Northern Ontario.
geographic area of Ontario,
Hydro One Networks has
Eirst Nation2 communities and
distribution system - BB First
10 transmission facilities in 23
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directly serves - through
Nations communities. fn addition, Hydro One Remotes Inc.
generates and distributes electricity to 27 remote
communities in Ontario's Northern region, 15 of which are
First Nations communities. These remote communities are
isolated; some only accessibl-e by aircraft. Like Hydro One
Networks, Hydro One Remotes Inc. is an indirect, wholly-owned
subsidiary of Hydro One.
A. P1ease describe Hydro One Networks, current
relationship with its major customer stakeholder groups.
2 The First Nations are the predomlnant Indigenous group of Canada south
of the Arctic. There are currently 634 recognized First Nations
qovernments or bands spread across Canada, roughly half of which are in
the provlnces of Ontario and British Columbia.
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1 A. Hydro One Networks has several- ma j or stakehol-der
2 groups. These include large-use customersi indigenous
3 customers; and external stakehol-ders.
4 Hydro One Networks' Large Customer segment includes 180
5 transmission connected customers. These customers represent
6 end-use industrial customers, Iocal distribution companies,
7 and generators. The Large Customer segment generates the
8 majority of Hydro One's revenue. Hydro One Networks employs
9 Account Executives to manage its relationship with these
10 customers. We actively engage with these customers to
11 understand their needs and preferences. Our most recent
12 formal engagement revealed that our Large Customers'
13 priorities are safety, reliability and outage restoration.
L4 The majority of customers also indicated they were prepared
15 to pay slightJ-y higher rates in order to maintain system
1,6 reliability. Hydro One recently conducted a customer
Ll engagement survey with our transmission-connected customers.
1B Overal-I, B6% of respondents j-ndicated they were satisfied
1,9 with the performance of Hydro One.
20 We have a dedicated Indigenous Rel-ations team that is
27 instrumental in advancing our Indigenous Relations strategy.
22 Hydro One is committed to developing and maintai-ning positj-ve
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rel-ationships with Eirst Nations and M6tis3 communities and
customers across Ontario. Hydro One recognizes the unique
rights and interests of Indigenous peoples in Canada and seeks
to work with First Nations as well as M6tis communities in
Ontario in the spiri-t of coll-aboration, mutual respect and
trust, and shared responsibility.
II. HYDRO ONE'S FOCUS ON DELIVERING CUSTOMER SERVICE
A. Please briefly describe Hydro One Networks, efforts
10 to improve customer service.
11 A. In May 20L3, Hydro One Networks implemented a new
72 Customer Information System (CIS) to replace
enhance
outdated
customer13 technology, improve efficiency, and
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experience. While the majority of customers received timely
and accurate bilfs, a smafl percentage of customers
experienced bill-ing issues.
In February 201-4, the Ontario Ombudsman Iaunched an
investigatj-on into Hydro One Networks' customer billing
practices and the timelines and effectiveness of the process
for responding to customer concerns. As discussed below, if
there j-s a problem, we are committed to fixing it. Shortly
3 M6tis are people of mixed European and Indlgenous ancestry, and one of
the three recognized Aboriginal peoples in Canada.
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1 thereafter, Hydro One Networks initiated the Customer Service
2 Recovery project, to not only resolve technical problems that
3 resul-ted from introducing a new billing system, but to al-so
4 improve service through new customer-friendl-y policies and by
5 changing our customer service cul-ture by: putting a new
6 customer service team in place and replacing the provider of
7 call center services; clearing the backJ-og of customers who
B have gone a prolonged period of time without receiving a bill;
9 decreasing the number of customers who have had prolonged
10 periods of estimated bills; introducing flexible customer-
11 centric policies for those affected by billing issues;
1,2 improving billing and consumption information on the Hydro
13 One website; hosting Virtual- Town Hal-Is with customers to
L4 talk about issues that matter to them; and establishing and
15 implementing new/revised customer service policies,
L6 approaches and products.
71 In May 2015, the Ontario Ombudsman issued its final
1B report, with over 60 recommendations to improve customer
1,9 service. The Customer Care team addressed alf 60
20 reconrmendations, including improving the call center's
2L qua1ity assurance program, establishing more rigorous
22 monitoring of operational performance indicators, and
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strengthening oversight of customer-facing projects and
initiatives.
In addition, Hydro One established a Customer Servj-ce
Advisory Panel in the fal-l of 20L4 to develop a set of
customer commitments. Hydro One al-so appointed an internal,
independent, Ombudsman in November 2075 to ensure al1
report that
and exceed
customers receive fair treatment. I am proud to
customer service performance continues to improve
targets, including telephone accessibility to the caII
center, first call resol-ution (85%) and customer satisfaction
with contact center agents (922). Most importantly, billing
accuracy continues to surpass Ontario Energy Board
requirements and is the highest in company history at over
992.
A. Please explain the more recent steps Hydro One has
taken to improve customer service.
A. Hydro One has el-evated the customer experience by
listening and responding with swj-ft, measurable actions that
deliver value and establish Hydro One as one of the most
trusted brands in the utility industry. We have recently
initiated several- initiatives in an effort to further improve
22 our customer service:
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Hydro One Networks was the first utility in Canada to
launch a free mobile application that allows customers
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to check the status of planned and unplanned outages
anywhere j-n the Company's 640,000 square kilometer
service territory (approximately 250r 000 square
miles) from their smartphones or tablets. We know
power outages can be disruptive to our customers, so
we work hard to restore power expeditiously after an
outage. That's why we offer free text and email- a.Ierts
to Iet customers know when they can expect power to
be restored, and when the power is back on.
Hydro One Networks was the first utility in Ontario
to offer service guarantees, providing tangible
evidence that we stand behind the service we provide
our customers. If we fail to meet any one of these
Guarantees, we wilI credit the affected customer's
account $75.
Hydro One Networks also introduced High Usage Alerts
in 2076, which proactively alerts customers if their
bj-11 is trending higher than a pre-determined
threshold. Customers receive personalized
information on electricity consumption and advice on
managing usage, thereby allowing them to adjust their
usage and reduce the amount of their bilt.
In 2076, Hydro One successfully launched a new service
model to several Ontario First Nation communiti-es that
focuses on in-community, face-to-face interacti-ons,
and ensuring customers understand and access al-l- of
the availabl-e programs. To date, Hydro One has visited
72 First Nations communities across the Province and
met one-on-one with many First Nation customers.
Building on the success of this program, we extended
the new service model to our entire customer base in
20I'7 . We're delighted to now serve customers in three
offices across the province, where customers can drop-
in during regular business hours. Our employees are
there to heJ-p customers better understand their
electricity charges, answer questions about their
bill, assist with smart meters, or provide information
about conserving energy and reducing usage.
hle are also putting value back into the hands of our
customers by eliminating alI residential security
deposits, returning existing deposits and reducing
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deposit requirements for businesses
were Canadian industry firsts.
all of which
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a After a detail-ed review of customer-facing policies,
we also announced additional relief for customers who
have accumulated significant balances on their
accounts, including additional Low-fncome Energy
Assistance Program (LEAP) funding and an extended
winter moratorium. These announcements have helped
customers manage their electricity usage to get back
on track.
A. P1ease describe Hydro One's plans for its Customer
Service Progrram.
A. Hydro One j-s working toward a best-in-class,
customer-centric company, with contj-nuous improvement in
customer satisfaction. "E1ip the Switch" is our new
commitment to customers to better Iisten and respond to their
questions and concerns. Our goal is to authentj-cal1y earn
trust, listen openly and grow meaningfuf connections with our
customers. To measure our success, we are monitoring customer
satisfaction scores, brand reputation and using data and
analytics to ensure this commitment is shared with every
customer. Our objective is to complete every customer
transaction in a timely, efficient and accurate fashion.
Hydro One Networks wilI improve accessibility, enhance
communication, and ultimately increase customer engagement.
fn essencer we want to be there for our customers when they
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need us. Lastly, Hydro One Networks wiII empower customers to
choose how and when they engage with us.
Vfith respect to specific initiatives, Hydro One Networks
recently l-aunched a redesigned website and self-service
portal, called MyAccount, to meet the evolving needs of our
customers. Our new website comes wj-th many benefits to
customers and visitors on HydroOne. com, including improved
self-serve features, a simplified mobil-e device experience,
and tool-s to make managing and tracking electricity
is to increase the number of10 consumption easier. Our goal
11 self-service transacti-ons from 90,000 per year to 300,000 in
L2 .Iess than two years of implementation, thereby reducing caII
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74 A. PJ.ease describe Hydro One Networks' affordability
solutions.
A. In July of 20L6 an assessment of our customer
service operations and customer feedback revealed the primary
concern of customers related either directly or indirectly to
the affordability of electricity. Although our business role
is generally to provide transmission and distribution service
on1y, while other parties supply commodity, in response to
customer feedback and the operational indicators, the need
for Iower electricity charges, especiaJ-Iy for those who were
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struggling to pay, Hydro One Networks developed a strategy to
address af fordability.
Our affordability strategy had two primary areas of
focus: 1) internaf measures that the Company could undertake
independently, and 2) external- measures that could be taken
by government.
InternaJ-Iy
collections by
WE changed our approach to late stage
traini-ng
to offer fair, flexible,
10 such as interest-free
and empowering the coflections team
and achievabl-e payment arrangements,
installment plans, equal bilIing,
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emergency fundinq for low-income customers, and conservation
and demand management programs, to help customers get back on
track. Over 150,000 customers are enrolled in equal billing,
a program which helps smooth out seasonal highs and fows for
our customers. We also introduced our Winter Relief program
to reconnect customers who were Iiving without power heading
into the winter season. As part of this program we continued
to monitor and help these customers stay on track. We also
refunded $72 mil-Iion dollars in security deposits, ds we
belj-eved these funds were better in the pockets of our
customers, and not held by the Company.
Erom an external measures perspective, it was apparent
that meaningful bill reductions required government action,
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and Hydro One proactively shared customer insights and
feedback to drive an affordability conversation with
government. We put our best ideas forward on behalf of our
customers to address affordability.
III. OPPORTI'NITIES EOR HYDRO ONE AND AVISTA TO
COIJI'ABOR,ATE ON CUSTOMER SERVICE AI{D CUSTOMER
SATISEACTION
A. Do you see opportunities for Hydro One and Avista
to co].laborate on customer service?
A. Yes. Hydro One is committed to ensuri-ng Avista's
customers continue to receive a fevel of customer service
that meets or exceeds customer expectations. In fact, Hydro
One and Avista wilI share their customer service successes to
ensure that one of the benefits of this transaction is that
Avista's customers wilI continue to receive excellent
customer service in the years to come.
9. Does this conclude your pre-filed direct testimony?
A. Yes, it does.
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