Energy Partnership Program
Asia, Africa, Latin America/Caribbean

Benefits to U.S. and Non-U.S. Partners

Structure (Workplans, Activities, Costs)

Results (Deliverables, Accomplishments)

EPP in Review

OVERVIEW:
USEA has organized over 75 "cooperative partnerships" between U.S. organizations and counterparts in developing and transitional economies. Through these partnerships, U.S. organizations have conveyed U.S. experiences and business / regulatory practices to other nations. These relations have been applauded as one of the most successful foreign assistance programs ever created. Activities have been conducted in Latin America, Africa, Asia, the former Soviet Union and Central & Eastern Europe. Focus areas have included petroleum exploration, production and transportation; natural gas distribution; and electric power production, transmission, distribution and utilization. Indeed, practically every aspect of organizational operations have been addressed in the partnership programs.

For Asia, Africa and Latin America/Caribbean, USEA has established the Energy Partnership Program (EPP) with funding from the U.S. Agency for International Development (USAID). EPP sets up practitioner-to-practitioner, multi-year partnerships between U.S. and developing country utilities and regulatory agencies. These partnerships promote the more efficient, sustainable, and environmentally sound supply and use energy through the transfer of (1) market-based approached and "best practices" for energy system operation and regulation and (2) measures to avoid, reduce and mitigate the climate impacts of energy sector activities.

Since 1995, USEA has established over 40 utility and regulatory partnerships in over 20 USAID-assisted countries in Asia, Africa and Latin America/Caribbean. With funding from the U.S. Department of Energy, USEA has also set up a partnership in the People's Republic of China.

BENEFITS:
These partnerships provide an invaluable opportunity for senior executives of overseas utilities and regulatory agencies to observe and learn how their U.S. counterparts are structured, financed, managed and regulated. The program also enables U.S. energy executives to understand the dynamics of non-U.S. energy markets and to forge international strategic alliances. 

Partnership Benefits to U.S. Partners:

• Helps identify and develop strategic partners;
• Identifies short and long-term business opportunities;
• Develops staff capabilities and international awareness; and
• Develops climate change mitigation activities 

Partnership Benefits to Non-U.S. Partners:

• Allows for a transfer of knowledge on market-based planning, international energy sector restructuring, and development experiences by peers;
• Establishes advisory/commercial relationships to discuss changes affecting the industry, corporate structure and regulation of the energy industry;
• Improves management performance; and
• Increases energy efficiency.

STRUCTURE: 
Work Plan 
Once partners have been selected, the participating organizations execute a Work Plan of activities for the fiscal year. This plan is developed under the guidance of USEA to ensure consistency with USAID guidelines and budgets. The Work Plan is designed to address the needs of the non-U.S. utility and the interests of the U.S. utility partner. Three or four specific issue areas are identified in the Work Plan to be addressed during the partnership. 

Typically, the energy partnerships focus on such key issues as:

• Energy efficiency
• Restructuring
• Commercialization and financial management
• Transmission and distribution improvement
• Regulation
• Energy pricing
• Environmental improvement
• Renewable energy

Activities:
Executive business trips between partners are the principal activities of the partnership program. EPP can support a wide variety of policy & technology executive business trips. Ultimately, however, the level of available USAID funds and in-kind contributions from the partners determine how many activities can be accomplished each year. 

Typically, a partnership is established for a two-year period, in which 3-4 executive business trips are made per year, evenly divided between the U.S. and overseas partners, depending on the availability of senior staff of both partners to participate. Thus, over the course of the two year partnership, a total of 6-8 executive business trips are made, of which 3-4 are at the U.S. partner and 3-4 at the overseas partner.

Costs:
Partners donate their time, supplies and materials, and administrative support to the partnership, while USAID/USEA funding pays for airfare, lodging, and meals.

RESULTS (Deliverables and Accomplishments):
The purpose of the partnership program is to promote the more efficient, sustainable, and environmentally sound supply and use energy through the transfer of (1) market-based approached and "best practices" for energy system operation and regulation and (2) measures to avoid, reduce and mitigate the climate impacts of energy sector activities. 

For each issue area in the Work Plan, the partners agree on the completion of a measurable result, known as a deliverable or accomplishment, to be completed. For example, deliverables might include the drafting and adoption of a specific policy or management procedure, completion of a handbook for new procedures, or the installation of a new technology or computer management system, preparation of restructuring a plant, drafting new or revised regulations/guidelines for independent power, etc.

EPP IN REVIEW:
EPP has achieved significant program results in the areas of the environment, energy efficiency, corporate restructuring and management improvement, and regulation, including the following:

ENVIRONMENT:

• In the Philippines, the Cagayan Electric Power and Light Company (CEPALCO) is being advised by the Sacramento Municipal Utility District (SMUD) on the installation of 1 MW of solar power in the city of Cagayan de Oro 1, and may use SMUD as a procurement agent to purchase materials and equipment to install this new capacity. 
  

ENERGY EFFICIENCY IN GENERATION, TRANSMISSION, TRANSMISSION, AND DISTRIBUTION:

• The PT PLN Java-Bali Power Company I (PJB1) of Indonesia signed a Memorandum of Understanding (MOU) with Portland General Operations Company, Inc. (PGO) in April, 1999 to cooperatively review and evaluate proposals for possible modernization and/or rehabilitation projects of its hydro-electric plants. 
  
  
• The Cagayan Electric Power and Light Company (CEPALCO) has implemented several demand side management projects in the Philippines, including the replacement of inefficient air conditioners and lighting for commercial and residential customers, modeled from the Sacramento Municipal Utility District (SMUD). CEPALCO is also conducting energy audits for residential and commercial customers - a process modeled directly from SMUD - to identify how customers use electricity. 
  
  
• Karnataka Electricity Board (KEB) of Southern India and Energy Line are finalizing a pilot automation program to improve distribution efficiencies, offsetting pollution by eliminating the need for consumer back-up diesel generators.

CORPORATE RESTRUCTURING AND MANAGEMENT IMPROVEMENT: 

• The Manila Electric Company (MERALCO) of the Philippines is implementing an Activity Based Costing (ABC) system based on the Central and South West (CSW) system. The implementation of this accounting tool will lead to more efficient use of resources by Meralco and be reflected to customers through improved reliability and/or stable or reduced rates.
  
  
• Iligan Light & Power, Inc. of the Philippines is re-engineering its procurement and distribution designs based on models provided by the Sacramento Municipal Utility District (SMUD). This process will reduce operating costs and will improve the efficiency of overall distribution system operation.
  
  
• Through a March, 1999 workshop on decentralization, the Iowa Utilities Board, Florida Public Service Commission and the Oregon Public Utilities Commission assisted ANEEL, the federal regulatory agency for Brazil, in training Brazilian state PUCs. ANEEL has committed to adopting FPSC ethical standards for participants in IPP solicitations, and has improved human resources policies based on policies learned from the partnership with the three PUCs.
  
  
• Indonesia’s PT PLN Java-Bali Power Company I (PJB1) signed a Memorandum of Understanding (MOU) with Portland General Operations Company, Inc. (PGO) in April, 1999 to review PJB1’s procurement of utility products and services, with the possible outcome of PJB1 negotiating a Procurement Project Agreement with PGO.
  
  
• In the Philippines, the Cagayan Electric Power and Light Company (CEPALCO) has developed and implemented a key accounts system for handling large customers based on lessons learned from the Sacramento Municipal Utility District (SMUD). It has also formed a business strategy team to lead in strategic planning development, the creation of which resulted from information received through interactions with SMUD.
  
  
• The Guatemalan market coordination organization, Administrador del Mercado Mayorista (AMM), participated in a USAID/USEA executive business trip with the Southern Company, Tampa Electric, and PJM in August, 1999. The visit allowed the Guatemalans to identify state of the art procedures, systems and equipment used in the U.S. for the development of the wholesale market and a new dispatch center in Guatemala.

REGULATION:

• A July 1999 executive business trip visit between the Public Service Commission of Maryland (PSC) and the Public Utilities Regulatory Commission of Ghana (PURC) resulted in PURC adopting new tariff guidelines.
  
  
• The Orissa Electricity Regulatory Commission in India adopted performance based regulation, linking tariffs with performance, based on policies of the DC Public Service Commission and the Colorado Public Utilities Commission.
  
  
• India's Central Electricity Regulator Commission (CERC) has developed grid codes based on those of the Federal Electricity Regulatory Commission (FERC) and the Massachusetts Department of Telecommunications & Energy (MDTE)

Return to top of page