The IBEW supports deregulation of the Utility Industry in Virginia if it proves to be beneficial for Residential Customers, Business and Industry, The Environment, Economic Growth, and System Reliability in the Commonwealth.

All of these entities intertwine to create an intricate balance that impacts the common good of all citizens. A boon to one will surely be a bust to the others. Simply put; For every action, there is an equal and opposite reaction.

We have been given the seemingly impossible task of deregulating or re-regulating the electric utility industry. We have to balance the needs of all interests against the ultimate goal: The Good of the Commonwealth.

There is an old saying used in the IBEW. "A tough task takes time to accomplish. An impossible task takes a little longer." That work ethic is what has made our Union great and strong, and has made our electrical system the best in the World.

Some months ago I came before this Subcommittee and identified 9 vital issues of concern to the IBEW in the debate over deregulation. Those issues are Reliability, Costs to Consumers, Societal Impacts, Universal Access, Tax Revenues, Stranded Costs, Mergers and Market Dominance, The Environment, and Safety and Employment. Here again, these issues intertwine to create a balance that impacts the common good of all.

The various interested parties and special interest groups are adequately addressing most of these issues. You have heard testimony from Doctors and Lawyers and Economists and Engineers. You have heard from Educators and Editors and Executives and Regulators. These are all experts in their field who have eloquently expressed their views and concerns to you.

What you have not yet heard is the detailed and compelling IBEW arguments associated with Safety and Employment and how those tie directly with Reliability.

You have not yet heard that Mergers and Acquisitions and stagnation in hiring of new workers into the currently aging utility workforce is bringing less experienced entrants into the market or how current utility workers and system reliability are at risk due to this increased activity.

You have not yet heard that Standardized Training and Licensing of utility workers is absolutely necessary to ensure a safe workplace and a universal, qualified workforce.

You have not yet heard that a Stringent Maintenance Standard and appropriate staffing levels should be required to ensure system reliability and worker and public safety.

We haven't told you of the assurances our diligent workers need to survive and prosper in this competitive environment or of the protections needed to continue to provide and maintain the level of service that is currently enjoyed.

In the essence of time, I will not attempt today to present the devilish details. I have submitted to you the Utility Production Workers' Perspective of Restructuring in Virginia and Labor Needs in A Deregulated Electric Utility Industry.

This submission explains in some detail the concerns of utility workers. I would appreciate time in the future, before the appropriate Task Force, to explain our positions and participate in the debate. I would also appreciate guidance from this subcommittee as to where and when our issues will be appropriate for discussion.

Last year Virginia Power, including IBEW represented employees were recognized in House Joint Resolution No. 426 for their dedication, skill and perseverance. The IBEW represented workers have served this Commonwealth for over 60 years with that same dedication, skill and perseverance.

Let's not let a little thing like the seemingly impossible task of restructuring fracture that dedicated workforce. Let's just take the time to get it right.

Utility workers find themselves in a unique and troubling position as the debate over restructuring in Virginia unfolds. We realize that the needs of Labor need to be balanced with the needs of Consumers, Business and Industry, and the Environment. We also realize that the reliability and safety of the current electrical system is exceptional today and nothing should be done to jeopardize that reliability and safety tomorrow. These entities needs should in fact focus on and increase reliability and safety.

Reliability and Safety

Reliability and safety depend upon a skilled, highly trained, qualified workforce. The electric power industry's exceptional standard of reliability and record of safe operation and service is due, in no small part, to the quality of the workforce that makes it all happen. These utility worker standards of quality and excellence have evolved over a long history of partnerships between labor and management. Together we have established training programs and apprenticeship that have produced today's skilled utility workers.

Reduced Manpower and Training

In the light of impending competition and the concern over reduced revenue, utilities are cutting costs by reducing workers and worker training. At Virginia Power, production workers have been reduced by over 1000 in the last 5 years and since 1990, there has been a reduction of 25% or about 46,000 nationwide. Of those of us left, very small percentages are in apprenticeship or training programs. Most of our reductions have come through attrition. Workers have retired or resigned and not been replaced. There is in fact a national shortage of trained, qualified electrical production workers. At the recent IBEW Utility Conference, Local Unions from across the Nation described the inability of utilities to hire trained, qualified workers.

Increased Workload

Workload is increasing due to added customer base and reliability improvement programs and the layoffs of clerical and customer service workers. The increased workloads and responsibilities are being shifted to the remaining utility employees who now cover expanded daily work routines. The workload is compounded when the inevitable emergency situations arise and there are fewer people to deal with them. Overtime work is at an all time high, stressing workers and their families.

Contractor Use

Because of the shortage of production workers, utilities are relying on contractors to augment the workforce. There is an inrush of new entrants into the production and maintenance arena. There is a rush to fill the voids in the wake of departing downsized utility employees. In the midst of this rush, we are finding contract workers with little or no training or accountable qualifications.

Recently, we found that a contractor was hired to do a re-conductor job. This contractor showed up on the job with two, supposedly qualified people. Not having adequate help, they went to the local unemployment office and hired two people with no experience. These new people were put directly to work.

Some months ago, a Line clearance worker was electrocuted in Northern Virginia. It was his first day on the job.

Another was seriously burned from an electric arc in May of this year.

In the June 17th issue of The Richmond Times-Dispatch there was an article entitled " Power repair and cleanup follow storm". Accompanying that article was a picture of a contract lineman sitting atop a utility pole with downed wires and building destruction in the foreground. This lineman had climbed out of his bucket and positioned himself, straddling a cross arm to reach an outside phase. This was seemingly a brave and noble thing to do. If that had been a picture of a Virginia Power lineman, he would have been severely disciplined or terminated because the act violated accepted work practices and safety rules. It violated OSHA standards as well. We have no way of knowing if these people were properly trained and qualified.

There are examples of sub-standard workmanship that have affected reliability and public and worker safety.

A Virginia Power crew recently responded to an outage on a line that had been out 3 times with no apparent cause. Finally, upon examination with intense scrutiny, they found an improperly installed tension connector. It was too big for the wire it was intended to hold together. Had that connector completely failed, and caused an energized conductor to fall to the ground, property and human life could have been in danger. Or it could have failed when an unsuspecting lineman attempted to work on that conductor resulting in possible injury to him or his fellow workers. A contractor installed that connector.

National and State Certification of Electrical Workers

The necessity for a National and State training and skill standard for utility workers is a concept worthy of full consideration. Every segment of the deregulated electric utility industry will be reliant upon capable qualified personnel. The IBEW believes, because of current trends in today's workforce and the critical nature of system reliability and public and worker safety, that the provisions of the 1994 National Skills Standards Act should be patterned by the Commonwealth and implemented for all electric utility workers as soon as possible.

Training and Certification Board

A Training and Certification Board should be developed by voluntary partnerships comprised of The Virginia Department of Labor and Industry, utility industry and labor representatives, trade associations, and educational institutions to identify and detail skill standards necessary for utility workers to provide this Commonwealth with reliable and safe electric service. Much of the groundwork for the standards in our industry has already been laid through the efforts of the Edison Electric Institute benchmarking program.

Testing and Licensing

Once this board is formed and standards developed, a certification exam, developed by the board will be administered to every worker performing tasks that could affect the reliability of the distribution, transmission and generation systems providing electric service to Virginia consumers.

This program of training and licensing would practically insure that the Commonwealth would have a trained and qualified workforce in its utility industry. We already have a licensing mandate for workers and professionals in other industries. Exterminators and Commercial Truck Drivers are an example. Why would we not license utility workers whose decisions affect the safety and well being of thousands of citizens on a daily basis?

Electrical System Reliability and Maintenance Standards with Appropriate Staffing Levels

Again with savings in mind, utilities are cutting back on maintenance costs. Properly utilized, risk management and maintenance prioritization are efficient methods of controlling costs in this area. With electric power companies preparing for competition, the desire to cut costs and increase profits, deferred maintenance could result in systems so overworked that they may not be able to operate efficiently in times of peak demand or during storms.

This situation should be monitored through the adoption of industry wide maintenance standards and inspection plans. Appropriate parameters should include system reliability, customer service satisfaction, and employee safety.

Each of these parameters has been regularly measured by utilities, and this past record may be used to derive an overall performance and maintenance standard as well as staffing levels necessary to maintain or exceed the standard achieved in the past.

Financial penalties for noncompliance should be set high enough to outweigh any gains by cutting service quality.

Unfortunately, reliability is a measurement of past history and we will have to wait for the future to determine how well we are doing today.

Mergers and Acquisitions

Numerous mergers and acquisitions have occurred since restructuring initiatives first surfaced in the industry. Many more can be expected. Utilities and energy providers will strive to increase their market power and expand their customer base in a competitive market.

This will inevitably affect system reliability and put current utility employees at risk as new owners seek to further streamline operations to maximize profits. System and plant reliability is directly dependent on worker familiarity and expertise with those systems. Safeguards should be put in place to minimize the impacts on the system and the workers.

Successor Stipulations:

Continuation of terms and conditions of bargaining agreement in effect to the extent permitted by federal law

The selling company would require a new owner to assume the wages, working conditions and seniority provisions of the collective bargaining agreement in effect when the transition of ownership occurs.

Maintain current employees for a minimum of three years

Any new employer would be required to offer all positions it intends to fill, by seniority, to existing employees first. Any employees not employed by the successor will be eligible for the following post-employment benefits. These benefits shall be recoverable in rates as a Competitive Transition Charge or as Stranded Costs.

Out placement assistance and job retraining

The company shall provide an out placement program to assist affected employees to obtain employment that makes full use of their potential. At the discretion of the employee, retraining benefits shall consist of reasonable retraining services equal in cost to two years tuition at a State College or university.

Adequate severance pay with health insurance coverage

Severance pay, at a minimum, shall equal two weeks of base pay for each year of full-time employment. Health care coverage will be continued, at the benefit and contribution levels which existed during employment with the utility, for 24 months or until permanent replacement coverage is obtained through reemployment, whichever comes first.

Enhanced early retirement option if eligible

Eligible employees will be offered, by seniority, a voluntary, early retirement program, with retiree health care and life insurance provisions.

Preferential rehiring rights

Any contractual recall rights shall remain in effect; in addition, the new employer shall give any employee who received severance pay and/ or benefits preference for re-employment in their former position.

Electric Utility Restructuring State Legislative Language

The IBEW Utility Department has compiled 13 pages of proposed or adopted legislative language from other States that has been forwarded to Staff. The proposed labor needs that have been addressed in this report and others are contained in actual legislative language.

These needs have been recognized in other States and should be considered and enacted by The General Assembly of the Commonwealth of Virginia as well.