|
Brief descriptions of representative projects in various industries:
Electric, Gas & Water,
Telecommunications,
Government,
Private Sector.

Electric, Gas & Water Utility Assignments |
AEP
/ Kentucky
Hazard, Kentucky
Performed an assessment of the reliability of service within AEP/Kentucky’s
distribution system in its Hazard service territory (a forested
mountainous terrain). This region has historically experienced a
greater number of electric service interruptions than other AEP/Kentucky
service areas, and additionally, these interruptions have tended
to be of longer in duration.
|
Arkansas Public Service Commission
Little Rock, Arkansas
Trained Arkansas Public Service Commission (APSC) members in how to
monitor and control a management and operations review of Arkansas
Power and Light Company and its parent organization, Entergy
Corporation. This project included a written and oral review of the
proposal and detailed work plan prepared by the team of outside
consultants selected by APSC to perform the management review.
Assisted the APSC in managing the project, which included quality
control checks of the outside consultant project team and its
results. |
Baltimore Gas & Electric Company
Columbia of Maryland Inc.
Washington Gas Light Company
Baltimore, Maryland
Performed a two-year review of gas supply and purchasing practices.
This unique project included formal training of Maryland Public
Service Commission staff members in gas supply review methods and
the establishment of formal MPSC gas purchasing reporting
requirements for the three companies beginning in 1989. Schumaker
& Company provided oversight to MPSC staff during an internal
review of gas supply plans submitted for 1989/90 by these gas
distribution companies. |
Central & South
West Company
Reviewed charges for services provided by a
public utility holding company to its affiliates. The review was
used to determine whether the services were reasonable, necessary,
non-duplicative and calculated in compliance with appropriate
allocation formulas. |
Central Maine Power Company
Augusta, Maine
Performed a focused management review of the implementation for
CMP’s Customer Service System. Provided testimony at a general rate
hearing in which a portion of the implementation costs was
disallowed for ratemaking purposes, due to mismanagement at CMP.
Evaluated CMP’s organizational structure
and staffing, executive compensation, customer service
operations, management efficiency, and cost control. Our
findings and conclusions were referenced when State Commissioners granted
only 31% of the $83 million dollars rate increase requested.
The savings we identified were credited for about $26 million of
that reduction. Following the rate decision, CMP’s Board approved an
integrated cost-containment plan that included both capital and
operating budget reductions and a 42% cut in its quarterly dividend.
The restructuring saved $10 million in the first year after our
management review. CMP emerged a stronger, more viable competitor,
on a course to permanent improvement in all aspects of business
management. |
City of Coldwater Board
of Public Utilities
Coldwater, Michigan
Developed, performed, and analyzed the results
of a customer survey (a follow-up to a survey two years earlier) to
assess satisfaction with the city utility and other city services. |
City of Niles –
Utilities Department
Niles, Michigan
Performed a management and operations review and assisted in
developing a long-term action plan. For this 55-person municipal
department, we identified potential annual benefits approaching
$250,000.
|
City of Sturgis
Sturgis, Michigan
Performed a management and operations review
of various city departments, conducted a customer satisfaction and needs
assessment, and developed a strategic plan. Addressed the changes occurring
within the electric utility industry and the competitive threats felt
by the Electric Operations Department. The effort involved: (1) performing
a competitive assessment and benchmarking, (2) surveying customer attitudes
to identify issues that required addressing in the strategic plan,
(3) conducting a management and operations review of the relevant
city departments, (4) assisting the electric utility in conducting a
strategic planning session. |
City of
Tacoma, Department of Public Utilities, Light Division
Tacoma, Washington
Assisted
with a comprehensive review and assessment of its
Transmission and Distribution (T&D) management and operation
practices. Schumaker & Company applied an enterprise performance
management approach that emphasized the relationship between service
levels and costs. The mission of the enterprise was to provide good
service at the lowest long-term total cost. Further, every
enterprise management team has the responsibility to develop,
implement and execute a performance management program that delivers
measurable good service at the lowest long-term total cost. The
Schumaker & Company approach evaluated the service and cost
performances of Tacoma Power’s T&D Section and recommended
improvements in service levels as appropriate and cost reductions as
practical. |
Dayton
Power & Light Company
Dayton, Ohio
Provided fuel cost recovery
rider audit co-sourcing assistance to Dayton Power and Light Company
(DP&L) to prepare DP&L for its annual review and audit that will take
place in the first quarter of 2011 for calendar year 2010. This
engagement was a focused management audit of all operational and
managerial aspects of DP&L's fuel procurement functions for January 1,
2010 to April 30, 2010 and included the fuel cost recovery rider,
actual fuel and purchased power costs, contracts, and management
performance that affect the audit. |
Duke
Energy Kentucky
Cincinnati, Ohio
Assisted Duke Energy Kentucky
(DEK) with an affiliate management audit in response to the
necessity of an affiliate management audit of DEK every two years as
ordered by the Kentucky Public Service Commission (KPSC) in Case No.
2005-00228. In 2006, Cinergy Corp., the parent company of Union
Light, Heat and Power Company, subsequently re-named Duke Energy
Kentucky, merged with Duke Energy Corporation. As part of its
approval of the merger, the KPSC established forty-six merger
commitments in Case No. 2005-00228, of which three (3), specifically
Commitments 11- proper accounting of costs, 12- maintaining
appropriate cost allocation procedures and committing to third-party
audits, and 13- protecting against cross-subsidization specifically
related directly to this audit. Schumaker & Company consultants
looked for economies, efficiencies, or improvements to benefit DEK
and its ratepayers. |
Duke
Energy Indiana, Inc.
Indianapolis, Indiana
Provided an affiliate standards audit of Duke
Energy Indiana, Inc. (DEI) for the Indiana Office of Utility
Consumer Counselor (OUCC). This audit was required by the approved
Settlement Agreement in Cause No. 42873 (Settlement) concerning
affiliate company transactions, including compliance with the
affiliate standards approved in Cause No. 42873, such as the
training and controls that DEI has in place to prevent affiliate
cross-subsidization. Schumaker & Company consultants focused on key
areas and associated deliverables while allowing for more in-depth
analysis of those areas that held opportunity for improvements. |
Duke
Energy Ohio, Inc.
Cincinnati, Ohio
Assisted the Public Utilities
Commission of Ohio (PUCO) staff in a management/performance and
financial audit of the fuel and purchased power and system
reliability tracker riders of Duke Energy Ohio, Inc. Specifically,
conducted an audit of the company’s fuel costs (including any
renewable energy costs) plus an audit of system reliability costs.
This audit addressed the management/performance and financial
aspects of the recovery mechanism. It consisted of a three-year
audit cycle (2009-2011) with a complete and thorough audit being
conducted in each year of the audit cycle. The initial audit
included the actual cost for Rider PTC-FPP for the months January
2009 through December 2009. |
Equitable Gas
Company
Pittsburgh, Pennsylvania
Assisted the Pennsylvania Public Utility
Commission (PaPUC) in performing a stratified management and
operations audit of Equitable Gas Company (EGC), a subsidiary of EQT
Corporation, and EGC’s relationship with its affiliates. The primary
focus of this management and operations audit was the business
components of EGC that are still subject to regulation by the
Pennsylvania Public Utility Commission. Specifically, we addressed
EGC service delivery and production, whose costs are borne
ultimately by Pennsylvania ratepayers. The objectives included the
determination of what improvements, if any, could be accomplished in
the management and operations of EGC pursuant to Section 522(b) of
the Public Utility Code 66 Pa. C.S. §522(b). Specifically, Schumaker
& Company looked for economies, efficiencies, or improvements that
benefit EGC and its ratepayers. In doing so, Schumaker & Company
identified which, if any, economically practical opportunities for
cost-saving measures and/or better service could be instituted. |
General
Waterworks Corporation of Pine Bluff
Pine Bluff, Arkansas
Performed a management and operations
review, including a review of affiliated relationships and
transactions. At the request of the Arkansas Public Service
Commission, our final report was submitted as testimony in a general
rate hearing of General Waterworks Corporation of Pine Bluff. |
Hillsdale Utilities Department
Hillsdale, Michigan
Developed a strategic plan that included a mission statement;
identified the organization’s strengths, weaknesses, opportunities,
and threats; and formulated long-term goals and objectives. |
Illinois Commerce Commission
Springfield, Illinois
Designed survey to measure customer satisfaction with electric
service reliability and quality, clarity of billing, rates, and
services. Provided Electric Service Customer Satisfaction Survey Guide to
instruct electric service providers to administer the survey and to
understand, interpret, and present its results. Conducted workshops
to train electric service providers to implement the customer satisfaction
survey. |
Kentucky-American Water
Company
Lexington, Kentucky
Performed a comprehensive management and operations review involving
executive management, corporate planning, operations planning,
engineering and construction, transmission and distribution,
treatment and pumping, financial systems, customer service and
marketing, human resource management, support functions, and
comparative analysis. This project also included a review of
Kentucky-American’s relationships and transactions with its parent
company (American Water Works Company) and other affiliate companies
(primarily American Water Works Service Company). |
Kingsport Power Company
Kingsport, Tennessee
Performed a comprehensive management audit of this
American Electric Power (AEP) operating company. The audit included
evaluations of customer service, electric operations, and many of
the administrative, financial, and technology support activities
provided by AEP Service Corporation. Examined the methods used by
AEP Service Corporation and Appalachian Power Company (another AEP
operating company) for billing for services provided to Kingsport
Power Company. |
Massachusetts Electric
Company/Nantucket Electric Company d/b/a National Grid,
NSTAR Electric Company (NSTAR),
Western Massachusetts Electric Company (WMECo)
Boston, Massachusetts
Provided the Commonwealth of Massachusetts,
Department of Public Utilities (DPU) staff on three DPU
adjudications investigating the emergency preparation and
restoration of service following storms by the electric
distribution utilities in Massachusetts. Our inquiry in these
matters focused on the companies’ compliance with the DPU’s
performance standards for emergency preparedness and restoration
of service, including preparation for and management of the
restoration efforts with respect to Tropical Storm Irene and/or
the October 2011 Snowstorm, allocation of company resources in
the affected communities, communications with state, municipal,
and public safety officials and with the DPU, dissemination of
timely information to the public, and identification of company
practices that require improvement, if any. |
Michigan
Public Service Commission
Lansing, Michigan
Retained for three years by the Michigan
Public Service Commission in their efforts to annually verify that the
requirements of Section 11, Act No 286, Public Acts of 2008, are being
satisfied for each electric utility. We will verify that these
requirements are being satisfied by the Commission beginning with rate
case orders issued after January 1, 2009. |
Michigan South Central Power
Agency
Litchfield, Michigan
Assisted in developing a strategic plan for this power
agency, owned by five Michigan municipalities: Coldwater, Clinton,
Hillsdale, Marshall, and Union City. The plan addressed the changes
within the electric utility industry and the competitive threats
felt by the agency. Performed a competitive assessment and
benchmarking of the power agency and surveyed customer attitudes
(mail survey to residential and non-residential customers) to
identify issues for the strategic plan. |
Michigan South Central Power
Agency
Litchfield, Michigan
Developed and implemented a
relationship development (key accounts) program aimed at the larger
commercial and industrial customers. Developed an ongoing
communication/public relations program for the agencies, councils,
and member communities. Follow-up assignments have been subsequently
performed. |
Middleborough Gas & Electric Department
Middleborough, Massachusetts
Performed a competitive assessment of the operations of this municipal
gas and electric department, which included a management audit of
all functional areas, benchmarking of major performance indicators
in relation to other Massachusetts municipalities, and the best practices
of other public and investor-owned utilities. Subsequently Schumaker
& Company has been providing strategic planning and information
technology assessment and planning services to this organization. |
National Fuel Gas
Distribution Corporation
Williamsville, New York
Assisted the New York State Department of
Public Service (NYSDPS) in a comprehensive management audit of
National Fuel Gas Distribution Corporation (NFGDC). The primary
focus was the business components of NFGDC’s New York gas business
with an emphasis on NFGDC’s effectiveness in meeting its performance
goals and the extent to which there are opportunities for
improvement. The objectives included determination of possible
improvements for management and operations in areas such as
corporate mission, objectives, goals and planning; affiliate
relationships and transactions; load forecasting; supply
procurement; system planning ; capital and O&M budgeting; program
and project planning and management; work force management; and
performance and results measurement. This audit consisted of a
three-step study process, including a diagnostic review that
assessed the condition of each functional area or business unit
against evaluative criteria or expected business practice and an
in-depth analysis of pre-identified areas or issues. |
New Jersey Board of Public Utilities
New Jersey Central Power & Light
Newark, New Jersey
Conducted a two phase
audit initiated by the State of New Jersey Board of Public Utilities.
Phase 1 consisted of an audit of the affiliated transactions between
Jersey Central Power & Light Company (JCP&L) and its affiliates, and
Phase 2 was a comprehensive management audit of JCP&L. |
New Jersey Board of Public
Utilities
Elizabethtown Gas Company (NUI Corporation)
New Jersey Natural Gas Company (New Jersey Resources
Corporation)
South Jersey Gas Company (South Jersey Industries Corporation)
Newark, New Jersey
Conducted compliance
audits of the competitive services of New Jersey's gas
utilities, specifically South Jersey Gas Company (South Jersey
Industries Corporation), New Jersey Natural Gas Company (New
Jersey Resources Corporation), and Elizabethtown Gas Company
(NUI Corporation), as a part of utility industry restructuring
in New Jersey. The purpose was to ensure that the
utilities or their related competitive business segments do not
have an unfair competitive advantage over other, non-affiliated
purveyors of competitive services, and to evaluate and review
the allocation of costs between the utilities'
competitive and non-competitive services. We offered our
expert opinion, based on appropriate methodology, as to whether
there was strict separation and allocation of each utility's
revenues, costs, assets, risks, and functions between the
utility's electric and/or gas distribution operations and its
related competitive business segments. The audits
determined whether there was (1) cross subsidization between
utility and non-utility segments within a public utility or
holding company; (2) whether the separation of utility and
non-utility organizations was reasonable based on the New Jersey
Board of Public Utilities (BPU) affiliate relation and fair
competition standards; (3) the effect on ratepayers of the use
of utility assets in the provision of non-safety-related
competitive services; (4) the effect on utility workers; (5) the
effect of utility practices on the market for such services; and
(6) ensured compliance with New Jersey legislation.
|
New Jersey Board of Public Utilities
Public Service Electric & Gas Company
Conectiv
GPU Energy
Rockland Electric Company
Newark, New Jersey
Assisted New Jersey Board of Public Utilities (BPU)
staff in reviewing and monitoring the implementation of
recommendations resulting from an investigation of system
reliability for New Jersey's electric utilities. Assisted
Board staff in the review and investigation of the information
supplied by each of New Jersey's four electric utilities -- Conectiv,
GPUE, Public Service Electric & Gas Company, and Rockland Electric
Company -- in connection with the implementation of the selected
recommendations as ordered by the Board. Particular emphasis
was placed on each utility's activities to improve and/or maintain
CAIDI and SAIDI indicators at acceptable levels; in particular,
issues regarding utilities work force management and construction
program planning were addressed. Additionally, assessments
were performed of each utility's electric system, distribution
system planning and engineering practices, load flow analysis,
transmission and substation maintenance practices and procedures,
and adequacy of lightning protections. The review of the
implementation assisted the Board in fulfilling its obligation to
assure that, notwithstanding the changes occurring in the electric
industry, ratepayers are provided reliable, safe and adequate
electric service now and in the future.
|
New
Mexico Public Regulation Commission
El Paso Electric Company
Albuquerque, New
Mexico
Assisted the New Mexico Public
Regulation Commission (NMPRC) staff in a prudence review and audit of the
fuel and purchased power cost adjustment clause ("fuel clause") and
related documentation of the electric business operations of El Paso
Electric Company (EPE). In specific, Schumaker & Company
assisted the New Mexico Public Regulation Commission staff in providing
professional auditing and prudence review services of EPE's fuel and
purchased power costs, fuel clause filings and related documentation for
the period of January 1, 2010 through December 31, 2011. |
New Mexico Public Regulation Commission
Public Service
Company of New Mexico
Albuquerque, New
Mexico
Assisted the New Mexico Public
Regulation Commission (NMPRC) staff in a prudence review and audit
of the fuel and purchased power cost adjustment clause (“fuel
clause”) and related documentation of the electric business
operations of Public Service Company of New Mexico (PNM). In
specific, to provide professional auditing and prudence review
services of PNM’s fuel and purchased power costs, fuel clause
filings and related documentation for the period of June 1, 2008
through May 31, 2009. |
Nova Scotia Power Incorporated
(NSPI)
Halifax, Nova Scotia
Assisted in undertaking an audit to examine the solid fuel inventory
management function and provide meaningful recommendations for
improvement. The review addressed adherence to good utility practice
and consistency with the policies and procedures governing fuel
management as described in the NSPI Fuel Manual. The scope of the
audit included testing the assertions of existence and valuation and
an examination of access control for NSPI’s coal inventory. The
process audited spanned the receipt of the physical inventory
through to financial reporting, with a particular focus on
adjustments and/or discrepancies between the physical inventory and
the inventory records. |
Ohio Power Company Columbus
Southern Power Company
Columbus, Ohio
Reviewed the fuel-related practices and procedures for two
consecutive years, including overall organizational structure,
management decision processes, and the computer information systems
supporting these activities. Provided testimony on our findings and
conclusions. |
Pacific Gas & Electric
Company
San Francisco, California
Performed a compliance audit of the costs of PG&E’s gas pipeline
expansion project to determine if the appropriate level of
incremental A&G and O&M costs were charged to the project
before and after commercial operation in November, 1993. We also
provided data needed to forecast the incremental operating costs of
expanding interstate and intrastate pipeline operations serving
California markets. Reviewed PG&E’s integrated pipeline
operations that supply natural gas from Canada to California for
retail customers, pipeline shippers, and interruptible customers.
Our review showed that the intended project costing had been
properly implemented, ensuring an equitable distribution of costs
between regulated retail customers and unregulated project shippers. |
PECO Energy
Company
Harrisburg, Pennsylvania
Assisted the Pennsylvania Public Utility
Commission (PUC) staff in a stratified management and operations
audit of PECO Energy Company. The first phase was
a diagnostic review assessing the condition of each functional area
or business unit against evaluative criteria or expected business
practice. While this review was primarily
limited to determining if appropriate management controls, systems
and processes are in place, it was of
sufficient scope to identify significant problems, if any, requiring
additional focused analysis. The second phase was
an in-depth analysis of pre-identified areas or issues. |
Pennsylvania-American Water Company
Harrisburg, Pennsylvania
Assisted the Pennsylvania Public Utility
Commission (PUC) staff in a stratified management and operations
audit of Pennsylvania American Water
Company. Specifically,
the intention of the diagnostic review was to
encourage economies, efficiencies or improvements which
benefit the utility and its ratepayers and identify which, if any,
cost saving measures can be instituted. The ultimate purpose is to
explore economically practical opportunities for giving ratepayers
lower rates and/or better service. |
Pennsylvania Gas &
Water Company
Wilkes-Barre, Pennsylvania
Reviewed PG&W gas
operations; cash flow statements; dividends paid to PG&W’s
parent company (Pennsylvania Enterprises, Inc.); allocation of fees
(affiliated relationships and transactions with affiliated
companies); management information systems; data processing;
staffing and compensation levels; and recruiting, hiring, and
promotion. Schumaker & Company was a subcontractor on this
assignment. |
Pennsylvania Power &
Light Company
Allentown, Pennsylvania
Performed a stratified management review,
beginning with an initial diagnostic review of all functional areas
in the PP&L organization. This was followed by in-depth
investigation of 23 issues pre-identified by the PAPUC and PP&L,
including affirmative action/EEO programs; salaries, wages, and
benefits; staffing plans and levels; corporate-wide information
technology; nuclear de-commissioning; power plant materials
management; a competitive assessment of in-house construction and
maintenance workforces. For example, we found that PP&L had been
unable to achieve its objectives for improving its information
technology (IT) and systems. In the corporate-wide technology area,
18 major recommendations were made, including detailed steps
necessary for bringing technology up-to-date. PP&L accepted 153
of 156 recommendations and within a month implemented 30 and
expected to complete another 50 within six months. Total estimated
savings and/or increased efficiency associated with our
recommendations exceeded $70 million (annually) and $40 million
(one-time). |
Peoples Natural Gas Company
Pittsburgh, Pennsylvania
Reviewed all areas of this gas distribution company’s operations,
including gas supply, gas operations, finance and accounting, marketing,
data processing, and materials management. Made over 100 recommendations
for improvement. Schumaker & Company was a subcontractor on this
assignment. |
Philadelphia Gas Works
Harrisburg, Pennsylvania
Assisted the Pennsylvania
Public Utility Commission (PaPUC) in performing a
stratified management and operations audit of Philadelphia Gas Works
(PGW). The primary focus of this management and operations audit was
to review those PGW business components subject to regulation by the
PaPUC, specifically PGW service delivery and production, whose costs
are borne ultimately by Pennsylvania ratepayers. The objectives
included determination of what improvements, if any, could be
accomplished in the management and operations of PGW pursuant to
Section 522(b) of the Public Utility Code 66 Ps. C.S. §522(b).
Specifically, Schumaker & Company looked for economies,
efficiencies, or improvements which benefit PGW and its ratepayers. |
Philadelphia Gas Works
Philadelphia, Pennsylvania
Reviewed all areas of this company’s operations, including
organization structure and planning (corporate policy, philosophy,
and strategic planning; corporate and operations planning;
organizational structure, authority and responsibility; human
resources; capital program planning; gas operations organization and
work-management effectiveness); systems supply; finance and
accounting; procurement of outside services and non-fuel commodities;
support functions; and quality of service (corporate mission,
customer billing, meter reading, customer dispute process, office
operations, energy theft, and customer relations). |
Philadelphia Gas Works
Philadelphia, Pennsylvania
Performed a follow-up review two years after a management
and operations audit that involved reviewing results of
additional studies recommended during the management audit. Developed a
request for proposal for long-term strategic options. |
Philadelphia Suburban
Water Company
Philadelphia, Pennsylvania
Performed a comprehensive management review
involving all company functions. Specific emphasis was placed on
staffing and compensation levels, management information
systems, allocation of fees from affiliated companies, customer
services, engineering and construction, operations and
maintenance, water purchase agreements, and capacity planning.
This project also included PSW’s relationships and transactions
with its parent company and other affiliate companies. |
Public Service Electric and Gas Corporation
Newark, New Jersey
Assisted in preparing a long-range strategic generation plan.
Assessed PSE&G’s computer information systems for generation
planning and scenario analysis. Reviewed selected scenarios for
political and qualitative considerations and prepared a
comprehensive presentation for senior management. |
South Carolina Office of Regulatory Staff
Columbia, South Carolina
Assisted the South Carolina
Office of Regulatory Staff (SOR) staff to conduct a management audit
of Water Services Corporation (WSC) with regard to five subsidiary
water and wastewater companies operating in South Carolina with a
focus on the following three areas: 1) basic corporate
decision-making; 2) major operational activities; and 3) staff
functions. The final report consisted of
audit findings and management recommendations. A cost/benefit
analysis accompany each recommendation.
The bottom line of this project focused on the
determination of whether rates charged to the South Carolina
ratepayers could be reduced through the
implementation of greater efficiencies in organizations, operations,
or both. Significant consideration was
given to the investigation and quantification of potential benefits
that would result from a
consolidation or merger of the affiliated companies of WSC. |
State of Maine Public Advocate
Augusta, Maine
Provided
regulatory and litigation support to the Maine Public Advocate
regarding Central Maine Power Company’s (CMP’s) credit and
collection policies and standard offer uncollectible balances
(Docket No. 2010-327). The Maine Public Utilities Commission (MPUC)
staff has made a preliminary determination that CMP’s actions led to
a significant increase in its uncollectible balances and that some
of its actions were imprudent. Specifically, the Public Advocate
required expert consulting services to assist his staff in 1)
evaluating the questions presented by the MPUC’s notice of
investigation and the staff bench analysis in this proceeding; 2)
evaluating CMP’s response to a bench analysis filed on June 24,
2011; and 3) presenting evidence and recommendations before the MPUC
and/or advice to the Public Advocate regarding these questions. |
State of Maine Public Advocate
Augusta, Maine
Contracted
to provide regulatory and litigation support to the State of Maine
Public Advocate in its intervention in a petition filed on March 18,
2010 at the Maine Public Utilities Commission by Bangor
Hydro-Electric Power Company, Maine Public Service Company, Maine
Electric Power Company, Inc., and Chester SVC Partnership requesting
an approval of reorganization (35-A M.R.S.A.
§§708
and 1103) financial provisions. |
Tennessee-American Water Company
Chattanooga, Tennessee
Schumaker & Company and its subcontractor Work &
Greer, PC (Work & Greer), a certified public accounting firm,
conducted an affiliate audit of Tennessee-American Water Company (TAWC)
at the request of the Tennessee Regulatory Authority (TRA). The
audit included an investigation and assessment of the American Water
Works Service Company management performance and decisions relating
to internal processes and internal controls involving affiliate
relationships and transactions, and the resulting recommendations of
any management process changes needed for those controls and
implementation. Further, the audit evaluated the charges allocated
to TAWC, including the efficiency of processes and/or functions
performed on behalf of TAWC, as well as the accuracy and
reasonableness of the allocation factors utilized. |
Toledo Edison Company
Cleveland Electric Illuminating Company
Columbus, Ohio
Investigated the fuel procurement policies and
procedures for fossil and nuclear fuels and provided testimony
on the findings and conclusions. |
Union Light, Heat and
Power Company
Cincinnati, Ohio
Performed a management and operations review of ULH&P, a
subsidiary of Cincinnati Gas and Electric Company. Because ULH&P
and CG&E are essentially run as a single company, our review
covered all areas of both operations, including management and
organization, electric operations (excluding power production and
fuels management), gas supply and operations, customer services,
financial management, human resources, marketing and external
relations, and corporate services. We also reviewed ULH&P’s
relationships and transactions with its parent company and other
affiliate companies. |
United Water New Jersey
Harrington Park, New Jersey
Analyzed financial management, information technology and other
support services, customer services, and human resources in this
comprehensive management audit. Schumaker & Company was a
subcontractor on this assignment. |
Utilities, Inc.
/ Twin Lakes
Northbrook, Illinois
Provided a management and operations audit of Twin Lakes utility
organization and its affiliate, Water Service Corporation (WSC),
on behalf of the Indiana Utility Regulatory Commission (IURC),
including operations, customer service/support units, and
financial management. The study was organized into three task
areas. The first task area was a detailed analysis of the
financial management of Twin Lakes Utilities. The second task
area was examinations of the water and wastewater utility
operations, workforce, and service levels. The third task area
comprised key Utilities, Inc. units that support Twin Lakes
Utilities, including customer service operations, and included
an examination of their operations, workforce, and contribution
to the mission of the utilities. |
West Texas Utilities
Company
Abilene, Texas
Performed a comprehensive management and operations review
of this wholly-owned subsidiary of Central and South West Corporation, a
registered public utility holding company. Our review included
assessments of all functional areas within WTU, and of WTU’s
relationships and transactions with its parent and other affiliate
companies. We identified ways to save over $2.5 million annually.
All 85 recommendations were accepted. |
Western Kentucky Gas
Company
Owensboro, Kentucky
Performed a management and
operations review that covered all areas of this gas company’s
operations: management and organization, gas supply and
operations, customer services, financial management, human
resources, marketing and external relations, and corporate
services. Also reviewed WKG’s relationships and transactions
with its parent company (Atmos Energy Corporation) and other
Atmos affiliate companies in Louisiana and West Texas. (WKG’s
service territory is essentially a rural area with many smaller
communities in Kentucky.) This project was particularly
successful in that the results of the study were presented by
all three participants – specifically, the WKG president, a
Kentucky Public Service Commission representative, and Schumaker
& Company’s engagement manager – before the Subcommittee on
Management Analysis during the NARUC Summer Meeting. |
Water Services Corporation
West Columbia, South Carolina
Northbrook, Illinois
Assisted the South Carolina
Office of Regulatory Staff (SOR) staff to conduct a management
audit of Water Services Corporation (WSC) with regard to five
subsidiary water and wastewater companies operating in South
Carolina with a focus on the following three areas: 1) basic
corporate decision-making; 2) major operational activities; and
3) staff functions. The final report consisted of audit findings
and management recommendations. A cost/benefit analysis
accompanied each recommendation. The bottom line of this project
focused on WSC was to determine whether the rates charged to the
South Carolina ratepayers could be reduced through the
implementation of greater efficiencies in organizations,
operations, or both. Additionally, another relevant analysis was
the determination of whether the ratepayers of South Carolina
were being properly and economically served by the range of
corporate services provided to the WSC operations in South
Carolina by the managers located in both West Columbia and
Northbrook. Significant consideration was given to the
investigation and quantification of potential benefits that
would result from the consolidation or merger of the affiliated
companies of WSC. |
Telecommunications Assignments |
ALLTEL Pennsylvania
Kittanning, Pennsylvania
Performed a stratified management and operations review focusing on
functions and activities performed by ALLTEL Pennsylvania, its
associated companies (ALLTEL Telephone Service Corporation, ALLTEL
Corporate Services, ALLTEL Supply, ALLTEL Publishing), and its
parent company (ALLTEL Corporation). As requested, we also reviewed
staffing plans and levels; affiliated relationships and transactions
with other ALLTEL companies; and diversity/EEO. Services provided
primarily by affiliated companies are administrative, technology,
and procurement functions and activities.
|
Commonwealth Telephone
Company
Dallas, Pennsylvania
Performed a stratified management audit involving a diagnostic
review of all company operations, followed by an in-depth review of
nine pre-identified issues and an in-depth investigation of any
problematic areas identified in the diagnostic phase.
|
Illinois Bell Telephone Company
Chicago, Illinois
Performed a focused review of affiliate relationships between IBT
and its affiliates: Ameritech Corporate, Ameritech Services, Inc.,
Ameritech Information Systems, Inc., and Bell Communications
Research, Inc. (Bellcore). Involved a comprehensive review of all
activities by these affiliates, focused on the cost assessment,
value assessment, and impact assessment of these relationships on
Illinois ratepayers, as well as an assessment of IBT’s billings to
its various affiliates. Testified before the ICC on our findings and
conclusions. Schumaker & Company was a subcontractor on this
assignment.
|
Indiana Utility
Regulatory Commission,
SBC Ameritech Indiana and Other Settling Parties
Indianapolis, Indiana
Performed a service quality performance review of
SBC Ameritech Indiana after it experienced significant service
quality performance problems during the year 2000, especially as
related to service provision to residential and small business
customers. These problems prompted an investigation by the
Indiana Utility Regulatory Commission and other parties,
including the Indiana Office of Utility Consumer Counsel,
Citizen’s Action Coalition of Indiana, Inc., United Senior
Action of Indiana, Inc., and the AARP (collectively referred to
as the Settling Parties), which resulted in this review.
Analyzed, documented, and verified, through findings based on
identifiable and measurable information and data, that Ameritech
Indiana’s existing service quality plans and practices ensure
that out-of-service repairs, new installations of primary
service, repair center speed of answer, and business office
speed of answer meet applicable service quality performance
standards, including reasonably foreseeable events and
contingencies. Developed and documented recommendations to
improve or modify these service quality practices and/or plans
where existing plans and practices were not sufficient to ensure
that applicable standards were met.
|
New England Telephone Company
Boston, Massachusetts
Performed a focused management review of New England Telephone’s
affiliate transactions, including 10 to 12 different entities that
account for almost $1 billion annually. Several of NET’s support
functions (information systems, methods and procedures, purchasing
and materials management, legal, and others) were being provided
through affiliated companies. Other products and services also were
provided by affiliates, including research and development
activities. Our review examined the affiliate service cost structure
to pinpoint areas for potential cost savings. The Department of
Public Utilities and NET accepted all of our 43 recommendations. One
recommendation led NET to establish a revised mechanism for
reporting to each of the state commissions within the five-state
region.
|
U S WEST
14 Western States
Conducted regulatory impact reviews of two affiliate companies of U
S WEST. These studies, performed from a regulatory perspective,
examined the effect on rates and ratepayers of the operations and
allocations from both companies in each of the 14 states affected by
these operations. Addressed various aspects of the affiliated
relationships and transactions between two unregulated U S WEST
affiliates – U S WEST, Inc. and Advanced Technologies, Inc. – and
the effect of these transactions on U S WEST Communications
ratepayers. Developed a computerized regulatory impact model for use
by the project team and the 14 states in analyzing the impact from
modifying methodologies used.
|
Verizon
New York
New York, New
York
Schumaker & Company held Project Manager,
Lead Consultant, and Senior Consultant positions to perform a
review and evaluation of Verizon NY’s efforts to provide retail
service quality that consistently met the requirements of the
New York telephone service standards, as required by the New
York Public Service Commission (PSC).
Analyzed, documented, and verified,
through findings based on identifiable and measurable
information and data, to ensure that Verizon NY’s existing
service quality plans and practices of the five VIP service
objectives (customer trouble report rate, percent out of service
over 24 hours, percent installation completed in five days, PSC
complaints, and outliers), NY Telephone Service Standards, and
company guidelines meet applicable service quality performance
standards, including reasonably foreseeable events and
contingencies. Developed and documented recommendations to
improve or modify these service quality practices and/or plans
where existing plans and practices were not sufficient to ensure
that applicable standards were met.
|
Verizon
Pennsylvania
Philadelphia, Pennsylvania
Performed a review and evaluation of Verizon PA’s
performance metrics and related remedies, as required by the
Pennsylvania Public Utility Commission (PAPUC).
Reviewed Verizon PA’s processes for
performance metric development (pre-ordering, ordering,
provisioning, maintenance/repair, network performance, billing,
operator services, and general standards) from source system
inputs (including operational support systems and manual data
input) to the data mart, where performance reporting occurred.
Examined the utility’s underlying information and operations
support systems that provided data for use in calculating the
performance metrics and remedies.
|

State and
Local Government |
Ann Arbor Housing Commission
Ann Arbor, Michigan
Provided services to assist the Ann Arbor Housing
Commission (AAHC) in an operational assessment with an emphasis on
financial decisions involving the organization. Specifically,
Schumaker & Company performed three key assessments: 1) a high-level
analysis of the existing organization structure of services
involving major areas of AAHC operations; 2) an evaluation of the
present staffing structure for appropriateness, effectiveness, and
efficiency of operations; and 3) an assessment of department
processes for improved effectiveness and efficiencies with a goal to
create an organizational climate of empowerment and accountability.
Schumaker & Company identified potential organizational, staffing,
and business process changes for consideration by AAHC management. A
five-year strategic plan was addressed and a final report written.
|
City of Dearborn
Dearborn, Michigan
Assisted the City of Dearborn
in streamlining and consolidating its operations,
eliminating non-essential services, and
optimizing its overall level of resources
involved in achieving goals. Schumaker & Company performed an
operations review and assessment of Camp Dearborn that focused on
reviewing all key positions (full-time and
part-time) through job descriptions, chain of command analysis, and
interviews with Camp Dearborn and Recreation Administration staff,
evaluating the adequacy of current staffing levels in terms
of ability to deliver needed services, reviewing
operating revenues and expenditures and business policies and
guidelines, conducting a benchmark review
of Camp Dearborn with venues similar in size, capacity, and
recreational opportunities, and more.
|
City of Detroit
Detroit, Michigan
Recommended cost
reduction planning and potential revenue enhancement initiatives
based on process mapping and analysis of key processes for
designated departments. These plans/initiatives address risks
associated with implementation, not only within the designated
departments, but especially its potential impact on the delivery
of services to the residents and surrounding communities.
Schumaker & Company
conducted on-site analysis using interviews, process team
meetings, and other research methods of the least intrusive
means possible.
|
State of Michigan Department of Community Health
Lansing, Michigan
Provided quality assurance (QA) and project planning services to the
Michigan Department of Community Health (MDCH), as MDCH management
located a vendor who could provide Pharmacy Benefits Management
services, including claims administration and operations of a
point-of-sale (POS) system, clinical consultation programs, and
disease state management programs for the State’s Medicaid
fee-for-service (FFS), Children’s Special Health Care Services
(CSHCS), Refugee Assistance Services (RAS), and State Medical
Program (SMP) beneficiaries. Then, following contract award, to
monitor implementation activities. Major steps include:
-
Project
planning, schedule development and monitoring
-
RFP analysis &
development
-
RFP evaluation, including assessment of bid responses,
provision of counsel and advice to joint evaluation committee
members, and appeal justification
-
Implementation (project initiation, requirements
definition, systems analysis/general design, technical design,
development, and operations)
|
State of Michigan Department of Community
Health Medicaid Services Administration
Lansing, Michigan
Assisted program staff by developing a RFP for Executive Information
System (EIS) and Decision Support System (DSS) to analyze and report
managed care data on the State’s data warehouse. Helped through
initial phases of procurement process.
|
State of Michigan Department
of Community Health Medicaid Services Administration
Lansing, Michigan
Assisted work group in identifying, reporting, and monitoring issues
associated with transition of the Medicaid eligibility determination
processing to Family Independence Agency staff.
|
State of Michigan
Department of Community Health
Lansing, Michigan
Provided project management services to the
Michigan Department of Community Health (MDCH), as MDCH located
a vendor who could provide enrollment/eligibility, pharmacy
benefits management services (including claims administration
and operations of a point-of-sale (POS) system), and clinical
management programs for the State's Elder Prescription Insurance
Coverage (EPIC) beneficiaries. Then, following contract
award to the vendor, our firm managed implementation activities.
|
State of Michigan Department
of Agriculture
Lansing, Michigan
Performed a needs assessment and requirements definition,
specification, and design of an administrative support information
system. The system served the accounting analysis, budget monitoring
and tracking, and personnel analysis areas, and a horse breeders’
award program.
|
State of Michigan Department of
Environmental Quality Lansing, Michigan
Reengineered Department of Environmental
Quality’s records management and implemented a pilot electronic
document management system (EDMS) in the Storage Tank and
Environmental Response divisions. Reviewed and documented existing
business processes for re-engineering with EDMS. Created file list,
file structure and indexing for database of files; established
processes and priorities for back file conversion; and established
processes for electronic imaging of records going forward.
|
State of Michigan Department
of Treasury, Department of Management & Budget, and Family Independence
Agency
Lansing, Michigan
Performed a study of the existing work processes for printing and
disbursing State of Michigan warrants, resulting in the following:
1) review and assessment of the current situation and existing policy,
processes, and procedures,
2) findings, conclusions and recommendations,
including identification of alternative technologies for enhancing
quality, controls, and efficiency of operations,
3) surveys of other
organizations, 4)
alternatives analysis, 5)
alternatives cost analysis, and 6) implementation strategy and plan.
|
State of Michigan Consumer
& Industry Services Insurance Bureau
Lansing, Michigan
Studied and documented the work flows, office space design,
policies, procedures, regulations and laws, manual and computer
systems, telephone systems, and processes used by the Consumer
Assistance Section (CAS) and also interactions with other Bureau
organizations. Based on the results of this extensive study and
benchmark research into other similar customer service/help desk
operations, recommended ways to improve the effectiveness and
efficiency of CAS operations and also develop performance measures
for highlighting changes in operations.
|
State of Michigan Department of Management
and Budget
Lansing, Michigan
Assisted the Michigan Administrative Information Network (MAIN)
organization in its strategic planning activities, including
identifying its customers and their needs, and developing its
purpose, mission, goals, and objectives.
|
Michigan State Hospital
Finance Authority
Lansing, Michigan
Assisted the Michigan State Hospital Finance Authority in its
strategic planning activities, including developing its purpose,
mission, goals, and objectives.
|
State of Michigan Department of Labor
Lansing, Michigan
Performed an organizational structure and management review of the
Bureau of Departmental Services within the Department of Labor to
identify inefficiencies and redundancies within the work flows
between the Office of Budget, Finance, and Administrative Services
and the Office of Technology and Information Systems. We also made
numerous recommendations for streamlining operations. During a
follow-up project, we developed a framework for implementing
bureau-wide procedures. |
State of Michigan Department
of Labor Business Enterprise Program
Lansing, Michigan
Performed a financial compliance review of the operations for a
random sample of participants in the Business Enterprise Program
(BEP). Identified problems in the financial reporting procedures and
provided recommendations for improvement. We interviewed
participants, examined their financial records, and drew conclusions
about the program from the resulting database.
|
State of Michigan Department of Corrections
Lansing, Michigan
Performed an organizational structure and management review of the
Michigan State Industries (MSI) program, and assisted with its
strategic planning. The MSI program encompassed a central office in
Lansing, Michigan, three regional offices, and 32 factories at 20
prisons throughout Michigan’s lower and upper peninsulas. In
mid-1992, MSI employed 172 civilian employees (124 at factory
locations) and 1,152 prisoners. The products manufactured by MSI
included wood and metal furniture, shoes, vinyl, textiles, cartons,
motor vehicle license plates and tabs, highway signs, mattresses,
garments, paints and janitorial supplies, brushes and brooms,
lumber, and farm products. The services provided include laundry,
machine shop and industrial maintenance, and data processing. As a
result of our review, substantial modifications occurred, including
a structural reorganization. Additional follow-up work occurred to
assess and evaluate selected factories.
|
State of Michigan
Michigan State Police
Lansing, Michigan
Assisted Michigan State Police (MSP) in
developing an objective needs assessment and an overall
financial disbursement strategy for the specific monies
collected under the authority of Public Act 78 of 1999, Section
409(E), specifically the Wireless E911 $.03 Priority Fund, whose
monies were collected over a two-year timeframe. Assisted
in developing a strategy for the disbursement of these monies to
provide appropriate funding for identified and needed services,
initiatives, and products; developed criteria for selection and
evaluated proposals from the public safety answer point (PSAP)
community for disbursement of funds; and recommended proposals
for consideration by the Michigan Legislature. |
State of Michigan Office of Financial
and Insurance Services
Lansing, Michigan
Conducted an assessment of the operational and
managerial aspects of the Office of General Counsel for the Office
of Financial and Insurance Services (OFIS). Interviews
conducted with key management personnel for on-site analysis consisted of
reviews of the organization and chief processes for which each key
person was responsible, as well as discussions of any areas of
particular interest. A well balanced
report that reflected both areas which hold opportunity for
operational and financial improvement and those areas which
demonstrate exemplary management and operation effectiveness was
written and delivered. |
State of Michigan Office of Financial
and Insurance Services
Lansing, Michigan
Provided services to assist in an independent
program assessment of the State of Michigan, Office of Financial and
Insurance Regulation (OFIR), Mortgage Examination and Investigation
Section. Schumaker & Company
provided research to identify and describe characteristics of six
state mortgage regulatory programs and assessed current
complaint-based approaches versus routine examination approach on
36/48 month cycle. We identified
quantitative data to be captured and developed a tool for OFIR to
process the data for measuring the impact of additional staffing in
reducing predatory lending practices and recommended action plans to
implement given those findings. |
Town of Hilton Head Island
Hilton Head, South Carolina
Provided services related to an assessment of the
Town of Hilton Head Island’s (Town) current business processes,
organization structure, staffing levels, and software that support
the management of the Town’s employee information. This study
evaluated the performance of the subject organization, staffing,
operations, and costs with the intended final result of identifying
opportunities for improving/revising/
replacing the processes, organization structure, staffing levels,
and software. Using the least
intrusive means possible, an on-site analysis
was performed concluding with the
delivery of an oral presentation summarizing the findings to that
time. Subsequently, produced a detailed draft organizational review
report that was presented to the Town Board for review.
|
Wayne County Airport Authority
Detroit, Michigan
Provided services
to assist the Wayne County Airport Authority (WCAA)
Technology Services Division in identifying
technology business initiatives and updating its annual
five-year performance plan
at the Detroit Metropolitan Wayne County Airport. This
project involved assessing WCAA’s
technology and service needs for all 30+ divisions, plus identifying
the impact of airport and/or business trends on operations, as a
means to identify WCAA’s technology initiatives planned for the next
five (5) years. |
|
Private Sector Projects |
Accuma Corporation
Statesville, North Carolina
Implemented an ERP package for
manufacturer of automotive and marine battery casings and
components. The project includes identifying and
implementing other business process improvements. The
primary functional areas of attention are the implementation
of the ability to schedule the production of the factory
under an MRP environment and to implement real time
reporting of work order status and scrap production.
Initial process improvement initiatives were improving the
scrap reporting process, reducing the amount of scrap
produced, improving the accuracy of the bills of materials
and routings, and improving the accuracy of inventory
transactions and perpetual inventory. The project team
focused on the implementation of an improved ad hoc
reporting software package.
|
Ann Arbor Plastics
Ann
Arbor, Michigan
For this Michigan-based manufacturer of
plastic display units, Schumaker & Company performed a
business process reengineering project to identify potential
opportunities for improvements in the flow of information
and paperwork in the materials management and order
entry/fulfillment processes. Detailed flowcharts of
the two existing business process flows were developed.
Analysis of these flowcharts, in conjunction with company
management, revealed numerous potential areas for
improvement. Implementation of these recommendations
by company management resulted in significant gains in the
efficiency and cost effectiveness of the overall business
process. As a result of this, Schumaker & Company was
contracted to assist the company in the identification of an
ERP system that would better meet the needs of Ann Arbor
Plastics, especially in regard to the ability to support
projected future growth. |
Applied Dynamics International
Ann Arbor, Michigan
Provided consulting to manufacturing firm by reviewing its efforts to
convert all of its computer applications to alternative hardware, resulting
in a recommendation that the project scope be expanded and that
the following activities be under taken:
-
Review of existing information flow, both manual and automated,
for all functional areas
- Needs assessment for
overall organization and individual departments and function
- Implementation planning,
monitoring, and review
- Modification of manual
policies and procedures based on reviewing of existing information
system and needs assessment
- Evaluation and selection
of vendors for packages
- Package installation
activities and modification of applications not replaced by
packages
- We also helped with a
needs assessment, implementation planning, monitoring, and review,
and evaluation and selection of vendors for packages.
|
High Scope Education
Research Foundation
Ypsilanti, Michigan
Provided consulting to non-profit organization by reviewing existing
accounting, press fulfillment, workshop/seminar registration,
marketing, and professional school credit groups and the systems
that support these groups. Investigated possible directions,
suggested alternatives for hardware and software, and recommended
course of action. |
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