“Communication, teamwork and flexibility are critical to the success of VMII. Like a three-legged stool, the program relies on the cooperation and partnership among PG&E, its professional utility forestry consultants and qualified line-clearance contractors,” says Jack McCabe, operations manager of the Davey Resource Group, a division of The Davey Tree Expert Co. (Kent, Ohio). “PG&E sets the goals and objectives and provides program management and project oversight. Utility forestry consultants perform inspections, develop work prescriptions and notify property owners. Line-clearance contractors complete the work in a safe and efficient manner. Quality-control auditors provide feedback to help improve results.”

Naturally, certain rules were established to ensure work quality and sustained performance. The rules focused on four performance areas: total workload, compliance, customer satisfaction and schedule attainment. PG&E set a 2% reduction threshold just to qualify for the incentive. In other words, workload must reduce by at least 2% before there is any payout. Compliance scores must meet or exceed 99%. Customer satisfaction scores, based on monthly customer surveys, must exceed established thresholds. And, because PG&E still conducts an annual patrol of its facilities, its vendors must complete all scheduled work within a strict time line. Vendors must meet all of these thresholds to participate in the incentive program.

“As a result of the shared goals in VMII, pre-inspection and tree-trimming contractors took initiative outside of PG&E's involvement,” says Scott Huffmaster, regional manager for Trees Inc. (Houston, Texas). “We've developed better working relationships and tapped into our own experienced workforce to find unique ways to attain the VMII goals.”

Beyond baselines and thresholds, PG&E's vegetation management team set additional goals. The team set a 5% workload reduction goal for 2006, with additional 5% reductions annually through 2011. Additionally, the team committed to improve reliability by reducing vegetation-related SAIFI by more than 50% by 2011. This equates to dropping the 2005 vegetation SAIFI score of 0.161 to 0.075 in 2011.

DRAMATIC RESULTS

Obviously, the goals were aggressive, but two years into the program, what about the results? PG&E and its contractors have faced challenges, but the results have been well worth the effort. In 2006, workload reduced by 7%. PG&E funded nine new field positions to support work quality and customer satisfaction, many of the utility's contractors received their first incentive payments, and the department laid the groundwork for its reliability program.

The 2007 results were a bit more dramatic. The system experienced a 17.8% total unit reduction. Every threshold was exceeded at the system level. PG&E entered into three-year contracts with its vendors to promote stability and show the utility's commitment to its continued success. PG&E established and staffed its reliability program. More importantly, the reliability projects appear to be having the desired effect. The 2007 SAIFI came in at 0.123, well under target.

Vendors benefit from new opportunities even as their routine workload decreases. “PG&E has worked diligently to reinvest the savings of VMII into other vegetation-related programs, which has assisted the contractors in dealing with fluctuating resource requirements,” says Huffmaster. “PG&E's VM System Reliability Program is the most noticeable example. VMII works because PG&E not only changed the fundamental contracting strategy, but it also provided the contractors the tools to monitor their progress and the flexibility with which to manage the work and rely on their own skills and abilities to be successful.”

McCabe says the customers are also fairing well. “As a whole, customers appreciate the new approach. They value the chance to work with professionals who care about the trees in their community, and they like hearing about best-management practices. When people are presented with facts and consider issues like safety, reliability and tree health, they appreciate the long-term focus of PG&E's program,” states McCabe.

VMII was never considered a sure thing. The success so far has been hard fought for by both PG&E and its contractor partners. At the end of 2006, the vegetation management team was cautiously optimistic. The 17.8% workload reduction of 2007 and the year-end compliance result of 99.68% proved the VMII concept was viable and cemented the team's resolve. Fiscal year 2008 promises equal, if not better, results than last year. Year-to-date compliance is 99.73%. Schedule varies by division, but is within operating thresholds systemwide.

Customers are pleased with PG&E's work, especially the reliability work. In addition, the unit workload is currently trending at 24% below threshold, which will adequately fund the reliability program, a newly established public relations program and the contractor-incentive program.

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Bob Bell is a vegetation program manager at PG&E and a past president of the Utility Arborist Association. He is an ISA-certified arborist and utility specialist. He has a bachelor's degree in forest science from Pennsylvania State University and an MBA degree from the University of New Mexico. RWBz@pge.com

Editor's Note: For more information about PG&E's vegetation management program, VMII or the VM System Reliability Program, contact Steve Tankersley, VM operations manager, at SAT2@pge.com, or Daran Santi, VM planning manager, at DMS8@pge.com.