Strategic Planning and Governance Flashcards

Under which condition would a utility most likely invoke an emergency strategic plan revision?

Answer: A major regulatory mandate with a short compliance deadline that conflicts with current strategy

A significant regulatory mandate with a short compliance window can require immediate strategic realignment because it imposes binding external constraints on utility operations.

Which concept describes the practice of setting utility rates through an independent, quasi-judicial process with public testimony?

Answer: Rate case proceeding before a regulatory commission

A rate case proceeding before a regulatory commission is the formal legal process where utilities present cost-of-service evidence and the public can testify before rates are set.

A utility's strategic plan horizon is typically how long?

Answer: 3 to 5 years

Most utility strategic plans span 3 to 5 years, balancing near-term operational realities with longer-term directional goals, while master plans may extend much further.

What does 'delegated authority' mean in utility governance?

Answer: The board formally authorizing management to make specified decisions without board approval for each

Delegated authority is a board policy that defines what decisions management can make autonomously, setting clear boundaries to enable efficient operations without requiring board approval for every action.

In utility strategic planning, 'scenario planning' is best used to:

Answer: Explore how the utility would perform under multiple plausible future conditions

Scenario planning prepares utilities for multiple plausible futures rather than a single forecast, helping leadership make robust decisions under uncertainty.

Which governance document typically defines the scope of authority and composition requirements for a utility's governing board?

Answer: Enabling legislation or utility charter/bylaws

The enabling legislation, charter, or bylaws legally establish the board's authority, member qualifications, composition, and decision-making procedures.

A utility manager notices that capital projects are consistently over budget. Which strategic governance action is most appropriate?

Answer: Implement a project oversight and reporting framework with milestone reviews and variance analysis

A project oversight framework with milestone reviews and variance analysis creates accountability and early-warning mechanisms to identify and correct budget overruns before they become critical.