Balanced Scorecard

The balanced scorecard provides a snapshot of key business metrics in the four performance areas of Member Satisfaction, Safety, Reliability, and Cost.

Each area has one to three specifc measures of business performance that are charted against cooperatives from around the country. There are approximately 900 cooperatives throughout the United Sates. The scores are ranked on a sliding scale that is divided into quartiles reflecting the highest scoring cooperatives to the lowest in each category. Below is a brief description and comments on each metric.

Updated scorecard available soon

Member Satisfaction:

American Customer Satisfaction Index (ACSI) - This is a comprehensive score based on a member survey. Tipmont currently ranks in the third quartile of performance. While we definitely have room to improve and want to be in the top quartile of performance, you will notice the scale gets very tight between the bottom of the first quartile and the bottom of the third quartile. Most cooperatives fall within the second and third quartile. back to top

Safety:

All Injury Incident Rate - Tipmont ranks in the top quartile of performance in this safety metric as our incident rate of injury through job related accidents is quite low. We place a strong focus on our safety program within the cooperative.

Days Away Incident Rate - Tipmont's lost work day rate is just out of the top quartile of performance. The predominant injuries we see are strains and sprains of various types.

Severity Rate - The safety severity rate is a calculation that takes into account the nature of the accidents that a cooperative does have. In other words, of the accidents that occurred what was the result (i.e. lost time, a doctor’s visit, or simple first aid). Tipmont ranks right at the bottom of the top quartile in performance for this metric. back to top

Reliability:

System Average Interruption Duration Index (SAlOl) - This metric measures the total duration in minutes of service interruptions for the average member during a given time period (in our case we look at this over a 12 month period). Tipmont scores right in the middle of the second quartile of performance for this metric. We will continually work to improve in this area.

System Average Interruption Frequency Index (SAIFI) - This metric measures the average number of times a member experiences outages during a given time period (again, we look at this over a 12 month period). Tipmont ranks in the top quartile in performance for this metric.

Customer Average Interruption Duration Index (CAIDI) - This particular metric is not functioning properly on the dashboard template. We hope to have this issue resolved by the posting in the second quarter. This measures the average time it takes to restore service when an outage occurs. This is the area we need to improve the most. Tipmont currently ranks in the fourth quartile of performance for this metric with a rolling 12 month score of 119.4. Although we improved slightly in 2009 over the previous year, we still have much work to do in this area. back to top

Cost:

Total Cost Per kilo Watt hour (kWh) Sold - (in cents) - This metric takes into account all the costs associated with providing service to the membership and provides an overall average cost per kWh sold. Tipmont ranks in the top quartile of performance for this metric.

Average Annual Percentage Change in Controllable Cost per Average Number of Consumers - This metric measures the percentage change in all controllable cost of doing business by averaging those costs across the total number of members in the cooperative. In other words, these are the costs involved in providing your service that the management and employees of the cooperative can control. Tipmont ranks in the top quartile of performance for this metric.

Average Annual Percentage Change in Total Utility Plant Investment Per Mile of Line - This metric measures the percentage change in dollars spent toward “plant investment” from one year to the next. As you can see above, Tipmont’s percentage change is in the fourth quartile of performance for this metric. However, this is the one metric you really have to think about the most. Tipmont is investing in various system and overall “plant” upgrades. We have an aggressive 3 year plan in technology updates just starting in 2010. The sole fact our percentage of spending has increased in “plant” alone is not a bad thing. It represents the current investment we are making in the cooperative. It becomes a concern when it severely impacts the first two costs metrics above (i.e total cost per kWh sold and change in controllable cost). I anticipate that over the next 3 years these two metrics will drop a certain amount as we invest to upgrade our “plant” assets. back to top