Public Service Enterprise Group - Feb. 2010 NARUC Winter Meeting - Workforce Panel

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Public Service Enterprise Group – Feb. 2010
NARUC Winter Meeting  g – Workforce Panel
Public Service Enterprise Group

•   Diversified energy firm headquartered in New Jersey
•   One of the 10 largest
                      g    combined gas
                                    g & electric companies
                                                     p     in the US
•   Annual revenues of $13 billion
•   Employees -10,500
•   Total assets: $
                  $28.4 billion

       Linden Generating Station
Public Service Enterprise Group

Three principal subsidiaries:
    ¾ PSE&G – transmission and distribution of gas and electricity to 3/4 of
       NJ population
        • 2.1 million electric customers and 1.7 million natural gas
           customers.
        • Also includes appliance repair, business relocation assistance
           programs and energy conservation programs
    ¾ PSEG Power
        • Major supplier of electric energy in northeastern and mid-
           Atlantic states
        • Three major subsidiaries: PSEG Fossil, PSEG Nuclear and PSEG
           Energy Resources and Trade
    ¾ PSEG Energy Holdings
        • Manages financial investments in the energy industry
        • In 2008 created a new company to explore compressed air
           storage as a means of sustaining wind power sources
Workforce Planning Process

                            Diagnose
     Translate                                         Select
                                                                            Implement
                                                                               p
St t
Strategy into
         i t Talent
              T l t                                  T l t Mgmt.
                                                     Talent M t
                              Strategic                                          and
    Implications                                     Strategies
                               Talent                                         Measure
¾Consider any                     Gaps
                       ¾Identify potential     ¾Consider all available   ¾Identify and
 technological          skills gaps through     talent management        address obstacles
 changes                analysis                solutions                ¾Incorporate action
                        -- internal data       ¾Select and prioritize    plans into business
¾Identify key           -- external labor       appropriate solutions    plan and budgeting
 workforce             ¾Measure the risk        based on particular      process
 assumptions/ issues     and impact of skill    skill needed and         ¾Identify metrics
                         gaps and prioritize    existing resources       that will demonstrate
                         areas of focus        ¾- Develop an action       progress toward
                                                plan                      closing gaps
                                                                         ¾Track progress of
                                                                           action plans
   ¾ A.S. degree in Energy Utility
     Technology
   ¾ Knowledge Transfer & Retention
     Process
Demand for skilled workers in NJ

      New Demand             Green Jobs

                        Traditional Jobs
                                                     Supply

             illustrative
    Existing Demand

                                                      Talent pool
                                                             p

  Development of creative programs and policies
  are needed to ensure talent to power the future.
Existing Demand……Traditional Jobs

PSEG
• Over 49% of our workforce is eligible to retire in the next ten years
• Using the average retirement age of 60, we can expect 33% to retire.
• Too few candidates for utility jobs have the math and mechanical skills
 Nationwide
• Within five years ½ of skilled utility employees will be eligible to retire
• More than 30,000 technicians and a similar number of lineworkers will be
   needed to replace the “baby boomer” generation
CEWD Update
         p
January, 2010
Who we are
  ƒ First partnership between utilities and their
    associations – EEI,
                     EEI AGA
                          AGA, NEI and NRECA to focus
    solely on these issues
  ƒ Incorporated in March, 2006
  ƒ Utilities, associations and supplemental labor
    contractors join as members
  ƒ Partnering with educational institutions
                                  institutions, workforce
    system, and unions to create workable solutions
  ƒ Currently have 74 members from large IOU’s to
    smaller cooperatives and municipalities that
    represent about 75% of employees in Electric and
    Natural Gas Utilities
CEWD Mission
Build the alliances, processes, and tools to develop
tomorrow’s energy workforce

                                  Workforce
             Career              Development
            Awareness                and
                                  Education
                           Industry
                          Solutions –
                           Regional
                        Implementation

            Workforce
           Planning and         Member Value
              Metrics            and
                                   d Support
                                     S     t
Resources for Career Awareness

 Career                          ƒ Get Into Energy website for Youth
                   Workforce
Awarenes          Development      in Grades 8 – 14
                 and Education
   s                             ƒ Get Into Energy: Military website
           Industry
          Solutions –
           Regional              ƒ Get
                                   G t Into
                                       I t Energy
                                            E      branding
                                                   b di materialt i l
         Implementatio
               n                 ƒ ShopCEWD
 Workforce
Planning and      Member Value   ƒ Communication kits for target
                  and Support
   Metrics                         audiences
                                 ƒ Get Into Energy: Engineering
                                 Coming Soon
                                 ƒ Engineering video
Get into Energy
                    gy Website

*Add the new
         g
 GIE Google
badge to your
   website

                         www.getintoenergy.com
12
13
*Small brochure
 now available
Resources for Education
                  Workforce      ƒ Energy Competency Model
 Career           D
                  Developme
                       l
Awareness           nt and       ƒ Energy Career Cluster Map
                  Education      ƒ Energy Workforce Supply Reports
           Industry
          Solutions –
           Regional
         Implementatio
                                 ƒ Education and Curriculum Models
               n                   - Ford PAS
 Workforce
Planning and      Member Value   ƒ Toolkits and Solution Guides
                  and Support
   Metrics
                                 ƒ Education Consortiums – Power
                                   and Energy Engineering
                                   Collaborative
                                 ƒ Get Into Energy Career Pathways
Energy Competency Model
www.CareerOneStop.org/                      Ti 6‐8
                                            Tier 6 8 – Occupation‐Specific
                                                       O     ti S ifi
  CompetencyModel
                                         Tier 5 – Industry‐Specific Technical
                                                       Non‐Nuclear                  Electric
                                      Nuclear          Generation                                      Gas
                                                     (Coal, Natural Gas, Oil,   Transmission &    Transmission
                                     Generation        Hydro, Solar, Wind,                        & Distribution
                                                      BioFuel, Geothermal)        Distribution

                                          Tier 4 – Industry‐Wide Technical
                            Industry                               Environmental            Quality
                                               Safety                                      Control &
                          Principles &                                Laws &              Continuous      Troubleshooting
                                             Awareness
                           Concepts                                 Regulations          Improvement

                                         Tier 3 – Workplace Requirements
                                                                                   Planning,                       Working With
                   Business                              Following                               Problem Solving
                                     Team Work                                   Organizing &                         Tools &
                 Fundamentals                            Directions                              Decision Making
                                                                                  Scheduling                        Technology

                                          Tier 2 – Academic Requirements
                                                                                                                              Critical &
                                                                                                          Engineering &
         Mathematics           Reading         Writing                 Listening           Speaking                           Analytical
                                                                                                           Technology
                                                                                                                              Thinking

                                            Tier 1 – Personal Effectiveness
 Interpersonal                                                                  Dependability         Self‐         Flexibility &      Ability To
                   Integrity       Professionalism       Motivation
     Skills                                                                      & Reliability    Development       Adaptability        Learn
Resources for Workforce Planning
                                g
                                ƒ Gaps in the Energy Workforce
                  Workforce
  Career
                 Development      Pipeline Survey
 Awareness
                and Education
                                ƒ Workforce Supply Reports
          Industry
         Solutions –            ƒ Workforce Demand Reports
          Regional
        Implementatio
              n
                                Coming Soon
 Workforce
 Planning        Member Value   ƒ Workforce Development Evaluation
                 and Support
and Metrics                       and Metrics
Summary Findings
Estimated Number of
Potential Replacements by 2013
      Job Category    Percentage of    Estimated     Estimated
                        Potential      Number of     Retirement
                        Attrition &   Replacements      Only
                       Retirements
    Technicians           49.0           27,000        20,500

    Non-Nuclear           47.6           12,000        9,000
    Plant Operators
    E i
    Engineers             44 7
                          44.7           14 500
                                         14,500        10 000
                                                       10,000

    Pipefitters /         45.0           8,500         6,500
    Pipelayers
    Lineworkers           40.2           29,500        19,000
Resources for Member Services
                                 ƒ CEWD Website www.cewd.org
                   Workforce
 Career
Awareness
                  Development
                 and Education
                                 ƒ Toolkits and Solution Guides –
                                   “Greening of the Industry”
           Industry
          Solutions –
           Regional              ƒ Communication
                                   C         i ti channels
                                                     h     l –
         Implementatio
               n                   newsletters, communities of
 Workforce          Member         practice, webinars
Planning and       Value and
   Metrics          Support      ƒ Partnerships and alliances
                                 ƒ State Consortium support
Employer Collaboration and Support

State Energy Workforce Consortia

            State
State Energy Workforce
                    Consortia
     WA
                          MN
 OR                                                             CT
                                        MI
                           IA                        PA    NJ
                                        IN    OH
                                                          MD
                                                     VA
CA             CO              MO            KY
                                                     NC
                                      TN
                                                    SC
          AZ                                   GA
                                     MS AL
                     TX
                                LA
                                                     FL

                                             Existing Consortium
                                             Planned Consortium
Laying the Building Blocks for a Successful Career
in the Energy Industry:
                                              GREEN:
                                              Develop green
                                             career pathways;
 New Jersey Energy                   provide common curriculum &
    Workforce                     industryy recognized
                                                 g      credentials that
                                  build on current energy career oppt.
    Consortium
                                           STEM :
                                Support the State of NJ and its
                            schools as they implement enhanced
                         STEM curricula at the primary and secondary
                                      education levels.

                              JOB READINESS & BASIC SKILLS:
                           Collaborate among institutions and across
                  sectors to develop/ implement curriculum that is directly
                                 responsive to industry needs.

                                         AWARENESS:
           Th industry
           The i d t needs
                        d tto bbe promoted
                                         t d as one offering
                                                      ff i stable,
                                                             t bl high-paying
                                                                   hi h   i jjobs
                                                                               b
                                 with visible career paths.
National Outreach
  ƒ Input to committee staff on the workforce training piece
    of the energy bill.
                    bill
  ƒ Ongoing meetings with DOE and DOL officials on how
    CEWD can support the workforce development
    components of the stimulus bill.
  ƒ Actively engaged in the National Commission on Energy
    Policy’s
          y Taskforce on Workforce
  ƒ Collaborating with NAM, AGC and other industry
    workforce associations to develop cross industry
    initiatives in career awareness and credentialing
                                        credentialing.

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