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Crisis Management A ACi i M                  At An       Electric Utility                      y           Jack Strausman ...
Crisis?It’s not if, it’s when                         2
3
Crisis Management at the           Federal LevelThe National Incident Management System((NIMS)     )NIMS provides a system...
NIMS• prevent,• protect against           against,• respond to,• recover from and            from,• mitigate the effects o...
NIMS, cont.• NIMS is not an operational incident  management or resource allocation plan.• NIMS represents a core set of d...
NIMS, cont.Homeland Security Presidential Directive 5 - requires                  y                            qall Federa...
NIMS, cont                NIMS cont.Incidents typically begin and end locally, and aremanaged best on a daily basis at the...
NIMS Framework –    Interoperability and CompatibilityThe NIMS Framework forms the basis for interoperability andcompatibi...
NIMS Components•   Preparedness – assessment, planning, procedures and    protocols; training and exercises; evaluation an...
Overview of NIMS                   11
In sum• NIMS provides for a measured &  expandable response             response.• NIMS balances flexibility and  standard...
Where Can I Learn More About NIMS?http://www.fema.gov/pdf/emergency/nims/NIMS_core.pdfnims/NIMS core pdf                  ...
Incident Management at PHI•   Incident Management Teams (IMT) (handle most incidents)     – P id tactical response to an i...
Why Incident Management?  y              g•   Emergencies are defining moments for utility companies. They are    moments ...
PHI Crisis Management Org.                             16
Crisis Management Team                         17
Crisis Management Team• The Crisis Management Team (                     g            (CMT) is                            ...
Incident Support Team                        19
PHI Incident Support Team• IST Leader             • Legal                              g• Chief of Staff         • Regulat...
21
22
IST Responsibilities• Common strategy for coordination PHI wide                   gy• Ensure the best available Corporate-...
IST Responsibilities• Track identified issues and actions by the  affected operating companies and IMT(s)• Recommend poten...
Incident Management Teams                            25
Incident Management Team• Incident Management Teams – District / Regional – Th number and members of the IMT will vary   T...
Incident Management Team• All PHI Incident Management Teams operate  according to the PHI Incident Management  System   – ...
Crisis Information Center                            28
Crisis Information Center• Manage the communications processes• Implement Communications Strategy approved  by the IST• Ut...
Incident Response Plans• Crisis Management Plan• Crisis Communication Plan• Incident Response Plans   – ACE / DPL / Pepco•...
Second Roles Database• PHI Second Roles Database combines all PHI  Incident Response Role assignments   – ACE / DPL / Pepc...
Second Roles Database• Assignments visible on the PHI Intranet• Activation is not voluntary, but necessary• PHI Emergency ...
33
Utilities that succeed in emergencymanagement credit the success to theirability to prevent emergencies fromoccurring and ...
Questions            35
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Crisis Management at an Electric Utility - Presentation: Jack Strausman, Pepco Holdings Inc. - Chief Litigation Officer Summit

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For more information: emailus@marcusevans.com

Jack Strausman who is Deputy General Counsel at Pepco Holdings Inc. and a speaker at the marcus evans Chief Litigation Officer Summit March 21-23, 2013, held at the Broadmoor, Colorado Springs, delivered his presentation entitled Crisis Management at an Electric Utility.

Join the 2015 Summit along with top Chief Litigation Officers and service providers in an intimate environment for a focused discussion of key new drivers shaping the legal industry today.
For more information: emailus@marcusevans.com

Published in: Law, Education
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Transcript of "Crisis Management at an Electric Utility - Presentation: Jack Strausman, Pepco Holdings Inc. - Chief Litigation Officer Summit"

  1. 1. Crisis Management A ACi i M At An Electric Utility y Jack Strausman Deputy General Counsel Marcus Evans – March 23, 2013 1
  2. 2. Crisis?It’s not if, it’s when 2
  3. 3. 3
  4. 4. Crisis Management at the Federal LevelThe National Incident Management System((NIMS) )NIMS provides a systematic, p p y proactive approach ppto guide departments and agencies at all levels ofgovernment, nongovernmental organizations, andthe i tth private sector t work seamlessly t : t to k l l to 4
  5. 5. NIMS• prevent,• protect against against,• respond to,• recover from and from,• mitigate the effects of incidents,• regardless of cause, size, location, or g complexity,• in order to reduce the loss of life and property and harm t the environment. t dh to th i tHomeland Security Presidential Directive 5 - 02-28-03 5
  6. 6. NIMS, cont.• NIMS is not an operational incident management or resource allocation plan.• NIMS represents a core set of doctrines doctrines, concepts, principles, terminology, and organizational processes that enables effective, efficient, and collaborative incident management. 6
  7. 7. NIMS, cont.Homeland Security Presidential Directive 5 - requires y qall Federal Departments and agencies to:• adopt NIMS and to use it in their individual incident management programs and activities;• use NIMS as in support of all actions taken to assist State, t ib l d local governments; and St t tribal and l l t d• require State, tribal and local organizations to adopt NIMS as a condition of receiving Federal preparedness assistance grants 7
  8. 8. NIMS, cont NIMS cont.Incidents typically begin and end locally, and aremanaged best on a daily basis at the lowestpossible geographical, organizational, andjurisdictional level However there are instances in level. However,which successful incident management operationsdepend on the involvement of multiple jurisdictions,levels of government, functional agencies, and/oremergency responder disciplines. This requireseffective and efficient coordination across this broadspectrum of organizations. 8
  9. 9. NIMS Framework – Interoperability and CompatibilityThe NIMS Framework forms the basis for interoperability andcompatibility to enable a diverse set of p p y public and private porganizations to conduct well-integrated and effectiveemergency management and incident response operations.How does it do this? Through use of a core set of concepts,principles, procedures, organizational processes, terminologyand standard requirements applicable t a b d community d t d d i t li bl to broad itof NIMS users. 9
  10. 10. NIMS Components• Preparedness – assessment, planning, procedures and protocols; training and exercises; evaluation and revision;• Communications and Information Management – rely on communications and information systems that provide a common operating picture to all command and coordination sites;• Resource Management – personnel, equipment and supplies needed to support critical incident objectives – flow of resources must be fluid and adaptable; p• Command and Management – designed to enable effective and efficient management and coordination by providing a flexible standardized incident management structure – (1) Incident Command System, (2) Multiagency Coordination Systems and (3) Public Information Ongoing Management and Maintenance - 10
  11. 11. Overview of NIMS 11
  12. 12. In sum• NIMS provides for a measured & expandable response response.• NIMS balances flexibility and standardization. 12
  13. 13. Where Can I Learn More About NIMS?http://www.fema.gov/pdf/emergency/nims/NIMS_core.pdfnims/NIMS core pdf 13
  14. 14. Incident Management at PHI• Incident Management Teams (IMT) (handle most incidents) – P id tactical response to an i id Provides i l incident ( h b (the boots on the h ground) – Manages resources• PHI Incident Support Team (IST) – Provides PHI Wide Support – Coordinates corporate resource coordination to / between IMT’s• PHI Crisis Management Team ( g (CMT) ) – Provides overall strategic decision-making and policy directives for managing the actual or potential crisis. – Incidents with crisis potential (to brand reputation, stock price, etc.) etc )• The Crisis Information Center (CIC) – Coordinates crisis communications support during an incident, emergency or p g y potential crisis. 14
  15. 15. Why Incident Management? y g• Emergencies are defining moments for utility companies. They are moments of high visibility in which the consequence of every decision has an immediate and long-lasting effect in shaping customer opinion regarding the competence of the utility.• Regardless of how well a utility performs day-to-day, how it performs in an emergency crystallizes public opinion about it and its reliability.• PHI needs to approach restoration of service in a disaster environment using a higher standard for success than meeting generally accepted utility practices. We strongly believe there needs to be a new way of looking at utility performance in preparation for and during a disaster. disaster James Lee Witt Associates 15
  16. 16. PHI Crisis Management Org. 16
  17. 17. Crisis Management Team 17
  18. 18. Crisis Management Team• The Crisis Management Team ( g (CMT) is ) established under authority delegated by the Chief Executive Officer• Corporate-level decision-making body body.• CMT is composed of senior executive leaders with authority to commit and direct major Corporate assets, as well as d t C t t ll determine official i ffi i l emergency policy in responding to any type of major incident or crisis.• CMT members bring to the decision-making process the highest level of corporate governance. governance 18
  19. 19. Incident Support Team 19
  20. 20. PHI Incident Support Team• IST Leader • Legal g• Chief of Staff • Regulatory• IST Support • Environ. Health &• Planning & A l i Pl i Analysis Safety• Operations • Finance & Insurance Coordination • Human Resources• Logistics • Regional Branding• Gas Delivery • Communications• Corp. & Business IT • Customer Care 20
  21. 21. 21
  22. 22. 22
  23. 23. IST Responsibilities• Common strategy for coordination PHI wide gy• Ensure the best available Corporate-wide resources and support (internal and external) for the IMT(s)• Provide advice and guidance to the IMT(s)• Identify potential consequences for PHI and its yp q customers (Incident Assessment).• Act as the central information clearinghouse on the incident within PHI 23
  24. 24. IST Responsibilities• Track identified issues and actions by the affected operating companies and IMT(s)• Recommend potential consequence p q management strategies to the PHI Crisis Management Team (CMT).• Implement strategies approved by the PHI CMT.• Receive periodic information from the IMT(s) and brief the CMT at specified time intervals.• Coordinate post-incident review activities. 24
  25. 25. Incident Management Teams 25
  26. 26. Incident Management Team• Incident Management Teams – District / Regional – Th number and members of the IMT will vary The b d b f th ill • Incident Size •CComplexity l it • Potential Hazards • Local Operational Needs 26
  27. 27. Incident Management Team• All PHI Incident Management Teams operate according to the PHI Incident Management System – National Incident Management System [NIMS] – PHI Crisis Management Plan g – Operating Company Incident Response Plan• The Incident Management Teams will respond e c de t a age e t ea s espo d according to established incident response, business continuity or other contingency plans. 27
  28. 28. Crisis Information Center 28
  29. 29. Crisis Information Center• Manage the communications processes• Implement Communications Strategy approved by the IST• Utilize communication tools and technologies to flow information end to end from PHI to our customers, communities, government and t iti t d regulators• Set and communicate guidelines pertaining to the flow of customer related information including the timeliness, frequency, quality and quantity of information• Serves as the central coordination point for all communications activity and information to ensure validity and consistency of information 29
  30. 30. Incident Response Plans• Crisis Management Plan• Crisis Communication Plan• Incident Response Plans – ACE / DPL / Pepco• IT Disaster Management and Storm Plans• Customer Service Storm Emergency Response Plan• Logistics Staging Area Plan 30
  31. 31. Second Roles Database• PHI Second Roles Database combines all PHI Incident Response Role assignments – ACE / DPL / Pepco IMTs p – CMT / IST – Customer Care and Logistics• Labor Contingency Roles are Separate• All PHI employees have a second role assignment 31
  32. 32. Second Roles Database• Assignments visible on the PHI Intranet• Activation is not voluntary, but necessary• PHI Emergency Preparedness E P d – Official clearinghouse for assignments• Changes to roll assignments? – Require approval of current 2nd role manager and proposed 2nd role manager 32
  33. 33. 33
  34. 34. Utilities that succeed in emergencymanagement credit the success to theirability to prevent emergencies fromoccurring and to good emergencyplanning and extensive drilling andtraining. James Lee Witt Associates 34
  35. 35. Questions 35
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