Nfh electricity rates brief 21 feb13
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NAVFAC Hawaii purchases electricity from HECO which has experienced dramatic fuel cost increases since 2010. This has resulted in significant losses for NAVFAC Hawaii from FY2011-FY2013 totaling $199.2M. NAVFAC Hawaii's electricity rates are set to recover these losses, with FY2013 rates recovering FY2011-2012 losses and FY2014 rates set to recover the remaining FY2013 losses. The proposed FY2014 rates represent an estimated 123% increase over FY2013 rates for DoD, non-DoD federal, and private customers. NAVFAC Hawaii is awaiting final approval of its FY2014 billing rates from the DoN budget process to be issued in March
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Key Insights from the Document
Hybrid Work is Here to Stay :
Employees expect flexibility (e.g., hybrid or remote work).
Younger employees may prefer more office time, while parents value remote flexibility.
Outcome-based performance is replacing "hustle culture" (presence-focused work).
AI Adoption & Digital Infrastructure :
AI is reshaping business strategies and workflows.
Investment in AI must be balanced with digital inclusion (access to fast internet, upskilling).
Smaller teams can compete with large players (e.g., DeepSeeks $6M AI breakthrough).
Talent Mobility & Global Talent Markets :
Global labor shortages are pushing companies toward international hiring and digital nomad policies.
Estonia, Saudi Arabia, and Jordan are emerging as progressive locations for flexible work visas.
Workplace Culture Wars & Geopolitical Tensions :
Cultural polarization and geopolitical issues (e.g., Ukraine war, Gaza-Israel conflict) are increasingly affecting workplace dynamics.
Building inclusive, adaptable cultures is critical in a distributed workforce.
Wellbeing & Employee Expectations :
Flexibility and wellbeing are now top employee expectations.
64% of companies view wellbeing as key to talent retention, surpassing wage increases.
The Rise of the Human+Machine Workplace :
Generative AI and Agentic AI will become central to productivity.
Intentional digital habits and AI literacy will be essential skills.
Globalization of Values and Purpose-Driven Work :
Workers seek alignment with personal values, purpose, and transparency.
Startups offering meaningful impact and mission-driven roles have an edge in attracting top talent.
Top Trends Shaping the Future of Work
Flexible Work Models
Hybrid and remote work dominate; location independence grows
Offer flexible schedules and remote-friendly infrastructure
AI-Augmented Workflows
AI tools enhance productivity but require new skill sets
Invest in AI training, ethical use frameworks, and integration into core workflows
Digital Nomadism
Countries like Estonia offer digital nomad visas
Consider global hiring pools and cross-border team structures
Outcome-Based Performance
Measuring results over hours worked
Shift KPIs and OKRs to focus on deliverables, not activity
Cultural Inclusivity
Diverse and inclusive cultures drive engagement
Build DEI initiatives that reflect local and global perspectives
Distributed Team Collaboration
Remote-first collaboration tools are essential
Use asynchronous communication and invest in virtual onboarding
Wellness-Centric Benefits
Mental health and flexibility are non-negotiables
Offer wellness programs, mental health days, and flexible PTO
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From sourcing top-tier talent and streamlining recruitment through RPO, to building enterprise-grade applications and deploying Microsoft 365, Azure, and Power Platform solutions we deliver a seamless experience under one roof. With expert support and strategic insight, we help businesses enhance productivity, reduce operational costs, and drive innovation at every level.
Vaden Consultancy is not just a service provider we are your strategic partner for growth in todays digital-first economy. Paul Turovsky - A Key Contributor
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Nfh electricity rates brief 21 feb13
- 1. NAVFAC HAWAII NAVFAC Hawaii Electricity Rate Increases FY13 & FY14 Presented by: NAVFAC Hawaii 21 February 2013
- 2. 2 Purchase Electricity Agenda I. Background II. Current Situation III. Way Ahead IV. Questions and Answers V. Break out
- 3. 3 Purchase Electricity Background Electricity Purchased Electricity from HECO Dramatic increases in Fuel Costs since FY10 Asia Market Environmental Requirements NAVFAC Utility Rates Navy Working Capital Fund Rates established to recover full cost Rates adjusted every two years Rate structure governed by DoD FMR and budget process Stabilized to minimize churn across the Navy
- 4. 4 Purchase Electricity Background NAVFAC Utility Rate Includes: Purchased electricity cost Navy owned system; maintenance/recapitalization/overhead Surcharge, if applicable A surcharge (up to 6.25%) is added for all non- Defense Federal and private party customers. 4% (fixed) to cover depreciation & interest =< 2.25% (variable) for government personnel retirement benefits Surcharge rate established annually per FMR Vol 11B, CH 11, Par 110109B
- 5. 5 Purchase Electricity Background History of Costs and Billing Rates HECO purchased utility rate increased 68% (2008 2012) Approved NWCF billing rate increased 18% (2008-2012) NWCF has not recovered the full cost of providing electricity for customers. Norm is to recover losses 2 years after the loss is incurred Allow customers the opportunity to adjust budget plans.
- 6. 6 Purchase Electricity Current Situation 102 94 106 108 126 156 148 215 168 185 232 283 278 103 85 106 100 120 138 156 153 159 155 157 159 278 $0 $50 $100 $150 $200 $250 $300 FY FY FY FY FY FY FY FY FY FY FY11 FY FY Actual Cost/MWH Budgeted Cost/MWH Starting in FY07: purchase cost was based on Inflation factor. Budgeted vs. Actual Purchase Electricity Costs The budgeted purchased electricity rate used to set utility rate. $/MWH
- 7. 7 Purchase Electricity Current Situation NAVFAC Hawaii (Oahu) annual electricity losses since FY09. NAVFAC HAWAII ELECTRICITY HISTORICAL DATA ($M) FY PURCHASED ELECTRICITY LOSS 2009 ($14.1) 2010 ($12.6) 2011 ($49.6) 2012 ($82.2) 2013 - Budget ($40.7) TOTAL ($199.2) FY13 Rates recover FY14 Rates recover
- 8. 8 Purchase Electricity FY-13 FY-14 Current Situation 8/22/2013 Revenue vs. Cost Plan is to recover losses by end of FY14. 103 92 112 128 133 379 165131 106 124 178 215 205 210 0 50 100 150 200 250 300 350 400 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Revenue Expense $Million
- 9. 9 Purchase Electricity Current Situation Full cost (losses) from FY11 through FY13 will be recovered through the DoN budget process. FY14 Rate subject to final approval: FY12 Rate $/MWH FY13 Rate $/MWH FY14 Rate $/MWH (estimated) Increase FY13 to FY14 DoD 202 263 588 123% Non DoD* 214 280 625 123% * Based on 6.25% surcharge
- 10. 10 Purchase Electricity Current Situation Full cost (losses) from FY11 through FY13 will be recovered through the DoN budget process. FY14 Rate subject to final approval: FY12 Rate $/MWH FY13 Rate $/MWH FY14 Rate $/MWH Increase FY13 to FY14 DoD 202 263 588 123% Non-DoD Fed 202 264 589 123% Private Party 214 280 625 123%
- 11. 11 Purchase Electricity NAVFAC Way Ahead DoN budget process on-going and final approved billing rates are pending. Anticipate NAVFAC Hawaii will receive approved billing rates after Presidents Budget is submitted, currently projected for March. Letter will be issued to all customers with final approved rates. Applicable surcharges will be included. Conservation will reduce losses that must be recovered in future years.
- 12. 12 Purchase Electricity Questions & Answers
Editor's Notes
- #9: Gap between Revenue and Expense for FY12 and FY13 are being recovered in FY14.Cost to maintain utilities delivery systems: Privatization Study Conducted 2003. Ruled economically beneficial to keep in-house, so we are a low cost proposition.