 Dennie Hamilton explains how this electric cooperative is maintaining quality service in one of the nation’s fastest growing areas.
When Dennie Hamilton took his seat as CEO of the Lee County Electric Cooperative on July 1, 2007, he had had two years to observe the organization as its director of administration. In that time, he noticed that although the North Fort Myers, Fla.-based electric distribution company had strong people and a steep growth trajectory, it needed to tweak its performance measures and strategic planning processes.
 Dennie Hamilton, CEO
With the US Census Bureau reporting that Florida will most likely grow by 12 million people between 2000 and 2030, Hamilton wants to make sure LCEC is prepared for the challenges ahead. “As a result of being small, formal performance measures were not tracked on a regular basis. I’ve been pushing to formalize such measures to help us deal with the tremendous growth we’ve been seeing over the last five years,” he said.
Today, LCEC’s strategic planning process analyzes present and future industry trends, taking into consideration financial forecasts, the markets it serves, and technological advancements. Short-term and multi-year objectives are established each year that not only lay out the company’s goals, but also how each department will contribute to accomplishing those goals. This year, LCEC is focusing on reliability of service, customer satisfaction, a disaster recovery and business continuity plan, and regulatory compliance.
LCEC has also established a list of key performance indicators, including those related to finances, customer care, operations, and safety, that it tracks on a monthly basis. Other important corporate metrics are tracked with the help of a balanced score card. Key performance indicator scores are directly tied to an employee incentive program.
Meeting demand
Despite widespread efforts to conserve energy, demand for electricity in Southwest Florida has skyrocketed. In 2006 alone, 11,985 customers were added to LCEC’s electric grid—a 6.6% increase. In reaction, LCEC has invested almost $350 million over the past five years in its infrastructure, including a service center in Immokalee and a new substation in Cape Coral.
As demand grows, LCEC is relying on technology to increase efficiency and maintain reliable service. Last year, it completed the installation of an automated meter reading system, a four-year project. Hamilton explained that the system not only allows LCEC to bill customers more accurately, it also helps the organization keep tabs on the quality of its service. “We can see momentary interruptions in service caused by weather and trees that we couldn’t see before,” he said.
LCEC also implemented software last year that integrates billing and customer service functions. “It allows our front-line employees to have more information at their fingertips and therefore respond more appropriately to customer concerns.” In addition, LCEC recently introduced the HouseCalls system, which automatically calls customers to remind them to pay their electricity bill and offers them an option to do so over the phone.
Safety for all
As LCEC grows, it is keeping safety top of mind. LCEC holds monthly field employee safety meetings to discuss topics such as safe driving and the proper use of tools. It also routinely tests and maintains equipment and conducts job site audits. New employees go through orientation and training programs, and for those who are new to the industry, a four-year apprenticeship program prepares them for the road ahead. Hamilton added that safety isn’t just a priority for field employees—those who work in the North Fort Myers and satellite offices also make it a priority. “Now and again we will see a twisted ankle or a slip, so we need to raise awareness for everyone.”
LCEC’s focus on safety has earned it an Occupational Excellence Achievement Award from the National Safety Council in 2007. The award recognizes companies whose lost-time injuries are equal to or less than 50% of the industry’s rate, as determined by the Bureau of Labor Statistics.
Most of us take electricity for granted, forgetting that it can be lethal if handled improperly. LCEC communicates regularly with customers online and through bill inserts about safe practices around the home and informs general contractors in the community as to how to work safely around electrical equipment. LCEC also recently worked with the local theatre to develop an educational play aimed at informing students about electric safety and conservation. The play will begin to travel to area schools in 2008.
But customers and employees aren’t LCEC’s only constituents. With a large population of eagles, ospreys, and various migratory birds in the area, LCEC has created an aggressive avian protection program. The cooperative shields high-voltage equipment in high risk areas and builds platforms away from electrical equipment where birds can nest safely. “Birds often return to the same nests, so we try to make their habitats as safe as possible,” said Hamilton.
Bright ideas
Energy conservation is critical as the population in Florida continues to escalate. LCEC has an online energy calculator that helps customers estimate how their appliances, lighting, and electronics contribute to their overall energy bill. The tool offers tips to reduce consumption by making simple adjustments. More than 10,000 people per month visit LCEC’s Web site to take advantage of this tool, as well as several others (the number does not including customers who pay bills online).
For those who want a more thorough energy analysis, LCEC conducts free on-site energy audits for homes and businesses. During the audit, a trained professional inspects lighting, air conditioning, appliances, and insulation to pinpoint areas where energy consumption can be reduced.
“The less demand for power, the fewer substations we need to build. The fewer substations we need to build, the lower our costs. The lower our costs, the more our customers save,” said Hamilton.
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