Reducing Asset Risk: PG&E’s Path to Improving Its Damage Prevention Program John Higgins Vice President, Safety and Health Pacific Gas and Electric Company
Improving Results Over the Last Three Years 4.76 June 2011 Highest dig-in rate for a single month 38% reduction in 33 months
The 3 rd Party Damage Issue • Question: – How do you influence the behavior of someone you have no influence over? They don’t work for you. • Answer: – Partner with those that have influence over them, and create influence where you can. Everybody’s third party is someone else’s second party
Strategic Programs for Reducing Damages • Habitual Offender Engagement • Dig-in Reduction Team (DiRT) • Holding Contractors Accountable Through Collections and Litigation • 811 Ambassador Program • Gold Shovel Standard
Engaging our Habitual Offenders How Could WE Improve? • PG&E marks were ‘not reliable’ • Too slow to ‘get paint on the ground’ • Inadequate response to ‘re-mark requests’ or questions • Long lead times for ‘standby’ personnel • One-call center wait times were too long
Improvements for PG&E • Established a NULCA-standard training program • Added staff to address 10-20% annual ticket growth rate • Standardized tooling across the system for locators and crews • Developed Quality Management Program • Staffed a dedicated line to handle locating issues from contractor community • Working with One-call centers to expand services and hours
Dig-in Reduction Team (“DiRT”) 21 DiRT team members deployed across 70,000-square mile service area: Conducted nearly 12,000 job site visits over the last 12 months Visit active excavations and intervene when non-compliant activities are identified Support damage investigations Over 30% of visits have uncovered either no 811 request or unsafe digging practices Stopped 3,250 excavation jobs without a USA ticket (28% of total visits) 15% reduction in dig-ins with no USA tickets since deploying DiRT Aerial and ground pipeline patrols provide further intervention into excavation near our critical facilities In 2016, conducted 128 811 Call Before You Dig workshops, attended by 4,000 excavators, representing 431 excavation companies
Holding Contractors Accountable California State Licensing Board • Temporary restraining order • Local government partnerships to stop • repeat offenders from securing future contracts In 2015, PG&E supported the City of San o Francisco’s decision to bar a local excavation company from future work due to its safety record Developing cooperative relationships • with professional contractors associations Supporting legislation aimed at • clarifying enforcement of 811 laws Claims invoicing totals increased by 53% • in 2016, compared to 2015 68% reduction in billing cycle time •
Outreach Activities Annually send out 6.9 million • direct mailings and e-mails to customers with 811 and safe digging information Targeted radio, billboard and • online 811 advertising in cities with high numbers of dig-ins In 2016, further developed Participate in over 300 • • partnerships with local farm bureaus community events annually, Regularly participate in local events utilizing gas and electric • within the agriculture community safety demonstration boards Targeted advertising in major • agriculture publications
811 Employee Ambassador Program Damage Provides education Employee calls prevention expert and awareness to damage is deployed to the our 23,000 prevention report job site to employees living line if they observe investigate and throughout our unsafe excavation educate the service area contractor about 811 and digging safely
The Gold Shovel Strategy • PG&E announces a first of its kind program, Gold Shovel Standard • Goal to seed the region with GSS certified contractors • Pilot the program internally • Focused only on PG&E contractors
PG&E's GOLD SHOVEL STANDARD PAVES THE WAY FOR SAFE EXCAVATION New standard focuses on public safety by preventing damage to underground utility lines Release Date: August 11, 2014 Contact: PG&E External Communications (415) 973-5930 San Francisco, Calif. — Today, Pacific Gas and Electric Company (PG&E) announced a new, first- of–its-kind excavation safety standard at an event for construction professionals. The Gold Shovel Standard, created by PG&E, will ensure that contractors doing excavation work for PG&E demonstrate a commitment to safe digging. "PG&E's commitment to safety extends beyond the work done by our employees," said Jesus Soto, Senior Vice President of Gas Operations at PG&E. "The Gold Shovel Standard ensures that contractors doing excavation work for PG&E have a strong commitment to safe excavation practices and are measured against a consistent safety standard."
“A rising tide lifts all boats” John F. Kennedy “A Rising Tide Lifts All Boats” attributed to John F. Kennedy
March, 2016 Dominion, Kinder Morgan, PG&E and Xcel Energy official form the Gold Shovel Association • Independent 501(c)(3) association •
The Sacramento Challenge • Moderate density; rural and urban; farming and city • Frequent damages in extremely high-profile location • Seat of government • PG&E – gas • City of Sacramento – water and sewer • SMUD – electric • Rapidly growing, significant construction
Gold Shovel Association • Independent 501(c)(3) association • Easy to adopt for City of Sacramento • Non-PG&E entity • Partner through an association • Low cost • Impactful
April, 2016 Gold Shovel Association - initial meeting with City of Sacramento • Facilitated by PG&E’s relationships •
September, 2016 City of Sacramento requires Gold Shovel Standard for Accelerated Water Meter Project
December, 2016 • All PG&E contractors are migrated to Gold Shovel Association • Requires sub-contractors to be certified (with few exceptions) • Reaches another set of 3 rd party excavators PG&E Prime 3 rd Party Sub 3 rd Party Sub 3 rd Party Sub-of-Sub 3 rd Party Sub-of-Sub
March, 2017 • SoCalGas and SDG&E join Gold Shovel Association • Encompasses nearly all of California gas customers
July, 2017 City of Sacramento Joins Gold Shovel Association
• City of Sacramento adopted because – it was easy – PG&E had already seeded the market with certified excavators – it was good for their residents • Implementation – bidders for projects with excavation – permits – franchise rights – emergency suppliers
August, 2017 • Sacramento Municipal Utility District (SMUD) – electric provider begins embracing GSS
What’s the Recipe • Leverage leadership to municipal partners • Direct interaction with excavators • Use Gold Shovel to influence subcontractors Everybody’s third party is someone else’s second party
Closing Thought “The three most important ways to lead people are… by example… by example… by example.” - Albert Schweitzer The gas and pipeline companies MUST be the leaders. Only we can provide the leadership.
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