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STRATEGIC PLAN
Publication Number P102-97-001
California Energy Commission
May 1997
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Table of Contents
Statement From the Commission IntroductionAppendix A: Strategic Planning Process Overview and Resource Assumptions
Appendix B: External Stakeholder Analysis
Appendix C: Internal Stakeholder Analysis
Appendix D: Organization and Funding
Appendix E: Glossary
Statement From the Commission
In 1974, the State Legislature created the California Energy Commission to address the energy challenges facing the state. For more than 20 years, the Energy Commission has pursued its mission by using a balanced mix of policies, regulations and incentives to improve energy systems with the goal of promoting a strong economy and healthy environment. With Governor Pete Wilson's signing of the Electric Industry Restructuring Law (Assembly Bill 1890, Statutes of 1996, Chapter 854, Brulte), California is now poised to greatly reduce the government's direct involvement in utility business activities and to rely increasingly on market forces to set prices for energy services. As Governor Wilson has stated: "By dealing with this difficult issue in a comprehensive way California will be a pace-setter in the national deregulation movement."This change has compelled reexamination of the Energy Commission's role, as well as its programs and policies. This document is an important initial step in redefining the Energy Commission's mission as the state and the rest of the industry transition to the new market structure.
In developing the Strategic Plan, the Energy Commission gave thought to the challenges facing it, its mission and vision for the future. A vital part of the process was to learn from outside stakeholders their views concerning the role of the Energy Commission and the effectiveness of its programs. The Energy Commission engaged the services of a private consulting group, The Resources Company, to ensure confidentiality and gain candid feedback. A total of more than 40 organizations and 50 people participated, either in one of five, half-day focus group sessions, or through individual interviews.
It was also important to obtain candid feedback from Energy Commission employees. More than 200 employees filled out a detailed questionnaire as part of the internal stakeholder participation. Collectively, several hundred staff also attended one of several all-staff meetings on strategic planning. The information received from internal and external stakeholders strongly influenced the strategic directions. The Strategic Plan is not self-implementing all must work together to implement it.
William J. Keese, Chairman
David A. Rohy, Ph.D., Vice Chairman
Robert A. Laurie, Commissioner; Chairman, Strategic Planning Committee
Michal C. Moore, Commissioner
Jananne Sharpless, Commissioner
Acknowledgments
With extensive help, thoughtfulness and suggestions from hundreds of interested people inside and outside the organization, the Energy Commission accomplished the strategic planning process. As the full list is too long to enumerate, these highlights are offered.
Executives from more than 40 companies participated in focus group meetings or interviews to share their opinions and offer suggestions. Appendix B, External Stakeholder Analysis summarizes results of external stakeholder participation, acknowledging these participants. Four organizations generously provided facilities to host the focus group meetings: Natural Resources Defense Council, California Building Industry Association, V. John White Associates, and Pacific Gas and Electric Company. In addition, the following people participated throughout the process: Patricia Fleming, San Diego Gas & Electric Company; Drake Johnson, Southern California Edison; Carl Blumstein, UC Energy Institute; Tom Willoughby, Pacific Gas and Electric Company; and Mike Murray, Pacific Enterprises.
Special thanks to those who spent additional time as panelists to answer questions from the Commissioners about the focus group process and results: Jim Cole, California Institute for Energy Efficiency; Jesse Fredericks, Consumers Utility Brokerage Inc.; Peter Guisasola, California Building Officials; and Mike Murray, Pacific Enterprises.
Energy Commission staff contributed quality time and comments in completing an extensive survey and participating in several forums, providing further clarification or developing strategies to address key issues. Appendix C, Internal Stakeholder Analysis, summarizes the results of staff participation.
Executive Director Stephen Rhoads initiated the process and provided essential guidance and support throughout its duration. Chief Deputy Director Kent Smith provided his insight and enthusiastic leadership, especially as the substance of challenging issues was addressed. The Deputy Directors Cynthia Hobson, Nancy Deller, Ross Deter, Dan Nix, and Bob Therkelsen with the assistance of their staff, worked with the Commissioners to develop the Roles, Goals and Strategies, manifesting the heart of the Plan.
Finally, special acknowledgments go to the Strategic Planning Management Team: Scott W. Matthews, Project Manager; Kat Calhoun, Assistant Project Manager; Clare Poe, Sidney Mannheim Jubien, Ezra Amir, Kelly Krohn, Chris Fultz, and Micky Carpenter, who kept the process moving, overcoming the many unanticipated changes that took place inside and outside the Energy Commission throughout this process. They were guided and assisted by the strategic planning consultants, The Resources Company, Farnum Alston-President; Laurie Thornton, Jerry Bowers, Mia Benedict, Mark Baughman and Robert Rodriquez.
Executive Summary
Strategic Planning
In this time of change, uncertainty and governmental reform, each public agency has an obligation to ensure that it serves the public interest, and that it does so effectively and efficiently. Strategic planning "the disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it" [Bryson] is a powerful tool that can be used by an agency to examine its current operations, determine what functions and activities are necessary and appropriate in light of changing circumstances, and then develop a plan for moving the agency toward the desired outcome.
For the Energy Commission, the need for strategic planning was obvious. Dramatic changes are taking place in the energy industry due to the development of increasingly competitive energy markets, culminating in 1996 with Governor Pete Wilson's signing of Assembly Bill 1890 (AB 1890), which calls for competition in the retail electricity market. The shift away from economic regulation of energy products requires the Energy Commission to reexamine whether its existing statutory mandates still serve the public interest, and if so, how best to fulfill those mandates in view of this shift. In addition, the Energy Commission must respond to Governor Wilson's initiatives to make state government programs and operations more efficient and effective.
The central theme emerging as a result of the process to date is that the Energy Commission must change. The Energy Commission must do what it can to facilitate the development of well-functioning competitive energy markets and to continue to work towards expanding the number and variety of energy-related products and services that can be competitively supplied. The Energy Commission is committed to meeting its new challenges, including devising new approaches for making and fulfilling recommended changes to its statutory mandates.
Energy Information and Policy
Energy information and analysis will no longer be solely of interest to government and regulated utilities providing monopoly services. With the advent of competition, all consumers and other market participants will require timely, accurate, relevant and understandable information in order to reap the benefits of competition. The Energy Commission should play a role in ensuring such information is readily available to enhance the development of well-functioning markets.
The Energy Commission has served, and should continue to serve, as the State of California's energy policy adviser, making energy policy recommendations based on relevant, objective information and analyses that promote affordable energy supplies, improve energy reliability, and enhance health, economic well-being and environmental quality. These two objectives information and analyses for both policy makers and market participants are complementary.
In meeting these two objectives, the Energy Commission must become more responsive to the needs of the marketplace, including reconsideration of how it collects information and from where it is collected. New, more effective ways must be developed to collect targeted energy data that are consistent with a competitive market place. As a first step, the Energy Commission will initiate a rule-making to amend its regulations to allow for greater recognition of, and protection for, proprietary data.
Energy Efficiency/Research and Development
The goal of the Energy Commission's energy efficiency programs will be to bring the forces of competition to bear to improve the functioning of energy markets and to encourage the economic, efficient, effective and environmentally responsible use of all forms of energy. This market facilitating effort will focus on reducing market barriers and developing market incentives for energy efficient products and services.
Investment in energy-related public benefits research in such areas as energy efficiency, renewable energy resources and advanced technologies will continue to be an appropriate function for government. The Energy Commission's programs, however, must be focused on developing products and services that have a reasonable likelihood of contributing benefits through advancements in science or technology that promise to enhance California's economy or environment. The Energy Commission will follow these principles as it implements AB 1890's renewables mandates.
Regulatory Functions
The Energy Commission's one-stop permitting process, a step in the right direction for effective and efficient government, must be made more efficient and sensitive to the workings of the marketplace. The Energy Commission's power plant siting process will remain necessary to ensure that new facilities protect the public health and safety and preserve environmental quality, while contributing to an efficient and reliable energy system. In the future, the siting process must also contribute to the development of a well-functioning energy market by becoming as streamlined as possible, with minimal burdens imposed on developers.
California's building and appliance energy efficiency standards will achieve durable and reliable energy efficiency and become the foundation for energy efficient buildings and appliances. The Energy Commission will continue to work with stakeholders to improve the standards' clarity, flexibility and cost effectiveness. The Energy Commission also will endeavor to increase compliance through education to ensure that industry and governments have the tools to understand and comply with the standards, and by creating consumer demand for high quality energy efficient buildings and appliances.
Management and Personnel
The Energy Commission must ensure that it is organized and operated so it can fulfill its functions. The Energy Commission must establish, implement and maintain financial and resource allocation plans, and an organizational structure and information system, so that staff and Commissioners alike can perform to the best of their abilities to provide high quality, cost-effective products and services in a professional manner. The Energy Commission also recognizes that it cannot accomplish its goals without creating a positive work environment that promotes individual growth, professional development, accountability, job success and recognition; cultivates open communications; and is safe, healthy and free from all forms of discrimination.
Implementation
Completion of this plan is only the first step in what is a continuous process. Beginning June 1997 and over the next few months, the Energy Commission will take action to implement the strategies set forth in this plan. One essential element is the implementation of a process for ongoing review, evaluation and revision of the strategic plan as needed to respond to changing circumstances.
Through implementation, the Energy Commission will address the challenges of change and uncertainty and fulfill its mission to assess, advocate and act through public/private partnerships to improve energy systems that promote a strong economy and a healthy environment. In this way, the Energy Commission will advance toward its vision that Californians have energy choices that are affordable, reliable, diverse, safe and environmentally acceptable.
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