Components of Pilot Program

Operating Program Pilot
(active since 2000)

Annual productivity targets are developed with incorporated planned savings. These planned savings must be met to achieve the target. Employees generate documented savings which reduce annual operating expenditures. If operating expenditures are below the target, ratepayers share in 50 percent of the savings and the other 50 percent goes to the Incentive fund, which captures a portion of the savings that employees have generated by meeting or exceeding targets.

Major Capital Projects Pilot
(active since 2005)

All capital projects over $1 million are eligible to participate. Participation is decided on a case-by-case basis. A target budget (cost at completion) is set by an external, independent third party for each eligible capital project. Staff is challenged to deliver the capital project at a lower cost than the target.

Small In-House Capital Construction Projects Pilot (active since 2005)

Under certain conditions, savings created by doing work in-house rather than by outside contractors can be documented and applied to the Incentive Fund. An independent estimate is required as part of any proposal by in-house staff to do the work at a lower cost than using an outside contractor.

Asset Management Pilot
(active since 2006, additions made in 2009)

Using a suite of assets at South Plant, maintenance, refurbishment and replacement decisions are based on reducing overall costs by balancing maintenance and repair, replacement and refurbishing costs to extend the useful life of an asset. Savings in this pilot can occur only when staff successfully extend the useful life of equipment beyond the anticipated replacement date.