Guiding Principles

Guiding Principle: Diversity, Equity, Inclusion, and Belonging

Adopted Aug. 28, 2019
Updated Oct. 10, 2023

Purpose

TPU is dedicated and committed to comprehensive and sustained transformation of systems, policies, practices, and contracts impacted by systemic racism. TPU, using Racial Equity Action Plans, will put the theory of change into action to achieve a collective vision of racial equity.

Racial Equity Action Plans will have three goal areas:

• Workforce reflects the communities we serve;
• Purposeful community outreach and engagement;
• Equitable service delivery to all customers.

Through this Guiding Principle, the Public Utility Board directs the Director of Utilities to:

• Keep anti-racism as a top priority in the process of budget development and prioritize anti-racism in planning for utility modernization; and
• Prioritize anti-racism in the evaluation of new policies and programs as well as the sustained and comprehensive transformation of existing services; and
• Work with the Public Utility Board to build a legislative platform at the local, state, and federal level that transforms those impacted by systemic racism for the greater equity and wellbeing of all customers of Tacoma Public Utilities.

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Guiding Principle: Financial Sustainability

Adopted Aug. 28, 2019
Updated Dec. 13, 2023

Purpose

TPU is committed to providing safe, affordable, and reliable power, water, and rail services over the long term by maintaining sustainable budget, financial, and asset management practices.

Outcomes

1. Planning methods, as summarized in Rate and Financial Policies, that provide long-term financial stability for reliable power, water, and rail services.
2. Detailed Operating, Capital, and Strategic Plans that guide planning for sustainable financial, business, and capital budgets over the long term while maintaining infrastructure assets at the lowest responsible lifecycle cost.
3. TPU planning methods that incorporate conservatism and gradualism into near-term budgets and rate designs, as necessary, to ensure long-term financial stability and anticipate unexpected future events with adequate cash reserves and insurance.
4. Maintain financial metrics that support bond ratings AA or better which facilitate access to the lowest-cost financing and produce sustainable debt service expenses with adequate and relevant reserve level.
5. Utility rates at the lowest levels reasonably sufficient to meet our vision.
6. Financial management of debt including loans, revenue bonds, and grants over the long term to maintain reasonable debt-service requirements and meet debt service coverage ratios.
7. Board Members who are educated in the business model and financing of these utilities.

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Guiding Principle: Rates

Adopted Aug. 28, 2019
Updated Dec. 13, 2023

Purpose

TPU rates for power, water, and rail services play an important role in securing a strong economy, establishing equity among customers, and producing revenue sufficient to provide safe, reliable, and environmentally-sensitive utility services with rates that are as low as they can responsibly be.  TPU strives to ensure rates will be adequate, fair and just.

Outcomes

1. Utility rates at the lowest levels reasonably sufficient to sustain safe, reliable and environmentally-sensitive utility operations, achieve goals in Operating, Capital, and Strategic Plans, and meet liquidity and debt service coverage requirements, as defined in the Rate and Financial Policies, over the near and long term.
2. Utility rates that reflect ratemaking principles of adequate, fair and just rates that equitably assign costs of providing services to each customer class.
3. Planned gradual and consistent utility rate changes that are stable and predictable over the long term and mitigate sudden or large changes within customer classes.
4. Rate and Financial Policies that provide detail and expand on the Guiding Principles for Tacoma Power, Water, and Rail.
5. Proactive customer and community outreach that provides equitable access to information on rates, policies, and assistance programs, and accompanies rate adjustments as well as significant events that may impact rates.
6. TPU planning methods that incorporate customer assistance programs to support affordability of services for customers.

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Guiding Principle: Stakeholder Engagement

Adopted Aug. 28, 2019

Purpose

TPU is committed to proactive engagement and open dialogue with customers and other stakeholders to understand their needs and improve service that informs decision-making while enhancing community understanding of TPU’s operations, programs, and services.

Values

1. As a publicly-owned, municipal utility, TPU values the relationship with our owners (citizens of Tacoma), customers, and stakeholders.
2. TPU believes in open and transparent governance.
3. TPU values robust, ubiquitous, and equitable customer and stakeholder engagement throughout our service territories.
4. TPU believes in continually evolving our customer and stakeholder engagement efforts to equitably engage customers and stakeholders in their preferred manner.
5. TPU believes that the City of Tacoma’s General Government and other local governments within our territory are essential partners to effectively engage the communities we serve.
6. TPU values working with community partners to better engage the diverse communities we serve.

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Guiding Principle: Environmental Sustainability

Adopted Jan. 8, 2020
Updated Dec. 13, 2023

Purpose

TPU seeks to be a leader in the preservation, protection, and restoration of our region’s environment while maintaining the delivery of reliable and affordable services. We remain committed to environmental stewardship practices, further decarbonization and electrification efforts, and other initiatives to meet these objectives.

Outcomes

1. TPU will conduct operations in a manner that promotes principles of environmental stewardship. This includes incorporating the reduction of waste, greenhouse gas emissions, and pollution as core elements of continuous improvement.
2. TPU will promote and support decarbonization efforts that provide benefits for our customers. TPU will seek to partner with and support customer electrification and decarbonization efforts.
3. TPU will remain ready to support customer needs and remove barriers related to electrification, with a focus on understanding and equitably supporting our most vulnerable and historically marginalized customers.
4. TPU will prioritize ecological protection of our land as a guarantee of future water and power services, and our commitment to the restoration of fish, wildlife and their habitat.
5. TPU will support public policies that enhance our environment, promote sustainable use of our natural resources, and advance effective and feasible decarbonization and electrification efforts.
6. TPU will work to foster a sense of stewardship in our community and workforce through communication strategies and tangible actions, such as educating customers about decarbonization opportunities and sharing our progress on a variety of environmental stewardship initiatives.
7. TPU will partner with Tribal governments in the restoration and stewardship of our natural resources.

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Guiding Principle: Innovation

Adopted Jan. 8, 2020

Purpose

Tacoma Public Utilities faces complex challenges including aging infrastructure, shifting workforce dynamics, uncertain sources of supply, changing regulatory requirements, dynamically changing markets and rising customer expectations.  TPU is committed to fostering a culture of innovation to meet these challenges today and into the future.  Innovation refers to fresh thinking that creates value for customers, including:

• Improved processes, policies and ways of doing business
• New or enhanced products and services
• New technologies and infrastructure

An innovative culture will enable an environment of creativity, experimentation and incubation to achieve new approaches to serve our customers, manage assets, finance investments and realize superior utility performance with the added benefit of enhancing sustainability.

Values

1. TPU will strive to become a driver for utility innovation and not just a consumer of innovative products. We support our employees’ freedom to pursue innovative processes, procedures, products, programs, and operational technologies that provide value propositions for our customers and communities in order for TPU to remain competitive long term.
2. The Public Utility Board and senior management encourage measured risk taking while balancing opportunity and benefits to ensure that new ideas are pursued with strict discipline through analysis, sound technical data and good management oversight.
3. The Public Utility Board encourages highly collaborative projects and initiatives including those with external agencies, experts, academic institutions, and corporations to support the development of innovative solutions.
4. TPU believes stakeholder engagement is essential to the development of sustainable products and services. TPU will incorporate customer feedback when appropriate into the design and development of new ideas or projects through research and outreach to ensure solutions address needs.

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Guiding Principle: Reliability and Resiliency

Adopted June 24, 2020
Updated Oct. 11, 2023

Purpose

TPU will reliably deliver to its customers the power, water and rail services they need and will rebound quickly from all interruptions in such service delivery.

Outcomes – Regular Operations

1. TPU will comply with NERC Reliability and FERC Dam Safety and Security requirements.
2. TPU will have a high percentage of its power generation resources available at all times and will plan for maintenance and repair activities that minimize unavailability of required resources.
3. TPU’s acquisitions of power from third-parties, together with its own generation resources, will meet its resource adequacy planning goals for short-term and long-term reliable delivery of power that meets customer requirements and TPU’s obligations to regional power supply organizations.
4. TPU will provide power transmission and distribution resources that meet or exceed industry benchmarks.
5. TPU will maintain sources of supply, infrastructure, facilities and personnel necessary to meet or exceed water supply required by the Department of Health and other regulators.
6. TPU will maintain its sources of supply, infrastructure, facilities, and personnel necessary to meet or exceed water quality standards required by the Department of Health or other regulators.
7. TPU will maintain on-time delivery of completed trains to its Class 1 railroad customers and individual carloads to its commercial customers that meets or exceeds industry standards.

Outcomes – During and After Disruptions

1. TPU will prepare, maintain, update regularly and practice all-hazards planning activities (including a Continuity of Operations Plan) for continuing utility services to customers and supporting regulatory requirements during and after disrupting events.
2. All-hazards planning will detail how TPU will restore and continue essential utility functions and supporting activities under all threats and conditions, whether naturally occurring or man-made. Essential functions are those that must be continued throughout, or resumed rapidly, after a disruption of normal operations.
3. All-hazards planning goals will include reducing loss of life and minimizing property damage restoring essential utility functions, reducing or mitigating disruption of operations, protecting essential facilities, equipment, records, and other assets, establishing a successful order of succession during an event if necessary and restoring communication with customers and community partners that informs the public about the source of the utility disruption, the status of restoration activities and the timeline for restoration of normal utility service.
4. Response goals will be scalable based on the severity of the disruptive event, its impact on the delivery of services, and the availability of resources necessary to respond. All-hazards planning recognizes that typical storm and weather disruptions and restorations require different goals, resources and responses than major earthquakes, cyber-attack or pandemic.
5. TPU will regularly participate in emergency preparedness exercises to measure the adequacy and effectiveness of TPU’s emergency response plans and to inform the preparation of improved and updated emergency preparedness plans.

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Guiding Principle: Telecom

Adopted June 24, 2020

Purpose

Tacoma Public Utilities (TPU) owns a hybrid fiber coaxial (HFC) network, portions of which it uses for its own operational needs and leases out the excess capacity to generate incremental economic value for the electric utility.  The Telecom Strategic Directive directs the full utilization of the capability and capacity of the HFC network to ensure maximize return on investment, continued public ownership of the HFC network, and value creation for the public and communities served.

TPU is changing the scope of the past Click! public – private partnership, so the private partner can provide the retail video services in a quickly evolving technology and business environment. The industry standard for this model consists of the network owner, Tacoma Power, granting an Indefeasible Right to Use the network’s capacity that is not required for power system needs. Tacoma Power will retain network maintenance responsibilities locating, splicing, repair and relocation on the portion of the network that includes power system functions.

Policy Goals

1. Continuing public ownership of the telecommunications assets, especially those assets necessary for Tacoma Power operations;
2. Ensuring geographically, economically, and technologically equitable access;
3. Creating affordable access for low-income customers to telecommunication services;
4. Enforcing net neutrality principles for all customers;
5. Allowing open access to telecommunication assets by other telecommunication providers, to the extent such access benefits customers;
6. Preserving competition among telecommunication providers that benefits customers (such as high-quality, technologically up-to-date, and reasonably priced telecommunication services), including restricting transfer of ownership or operations that reduce competition;
7. Safeguarding the use of telecommunications services by Tacoma Power, the City, and other local governments;
8. Maintaining financial stability of the business operations utilizing TPU telecommunications infrastructure;
9. Promoting economic development and educational opportunities;
10. Protecting customer privacy; and
11. Preserving market-leading customer service for telecommunications customers.

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Guiding Principle: Economic Development

Adopted June 24, 2020

Purpose

The Utilities are an asset that can aid in improved quality of life for all TPU customers and stakeholders. TPU supplies critical resources to the communities it serves and provides the foundation for building a strong and resilient economy, which will ultimately result in more revenue for TPU.

Values

1. Support of economic growth and family wage jobs through efforts aimed at increasing TPU’s retail sales.
2. Increasing the quality of life indicators for TPU’s customers and stakeholders, including addressing issues of equity, diversity, inclusivity, environmental justice and economic mobility.
3. Ensuring TPU is an outward facing, customer focused utility.
4. TPU will highlight the strengths of its business units and those of the region as a whole when engaging with prospective and existing businesses in order to increase regional economic activity.
5. TPU’s positive customer experience will reasonably extend to potential and existing business customers.
6. TPU values increasing retail sales and prioritizes removing or mitigating disincentives for new and expanding customers.
7. TPU values the differentiation that Tacoma Rail brings by being port adjacent and one of only a handful of municipally owned railways.
8. TPU values the development, retention and attraction of entrepreneurs and skilled talent, as key strategies to spur new and existing business with short and long-term growth opportunities.
9. TPU values the creation and retention of employment opportunities in the region especially those that pay a living wage and provide opportunities for personal and professional growth.

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Guiding Principle: Government Relations

Adopted Sept. 9, 2020

Purpose

Tacoma Public Utilities (TPU) is committed to building and strengthening respectful and mutually-productive relationships with tribal, federal, state, and other local units of government in order for public policy to benefit TPU customers and to foster the outcomes set out in TPU’s Strategic Directives.

Values

1. TPU values the relationship it has with tribal, federal, state, and other local units of government.
2. TPU recognizes the sovereign status of Tribal Nations and is committed to consulting with those Nations on a government-to-government basis.
3. TPU will develop, preserve and enhance government-to-government relationships through building trust, being responsive, proactive communication of relevant information and services, and collaboration based on mutual interests.
4. TPU is committed to strong collaboration and proactive communication with the City of Tacoma’s General Government.
5. TPU is committed to communicating and working with tribal and other government partners near outlying TPU facilities and lands and to communicating about TPU programs that benefit their communities.

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Guiding Principle: Employee Relations

Adopted Sept. 23, 2020

Purpose

Tacoma Public Utilities Leadership along with the Public Utilities Board consider employees our most valuable assets.  TPU employees are the face of the utility to our customers and their dedication keeps the utility running on a day to day basis.

TPU is committed to creating and maintaining a positive, supportive environment where employees are inspired to do their best work.  This commitment ensures that all employees benefit from a safe, productive work environment, fair and equitable compensation, recognition of efforts, and the sense that they are valued.

Values

1. TPU leaders will ensure a safe and healthy work environment for all employees.
2. TPU will ensure consistent, fair, and equitable treatment and compensation for all employees.
3. TPU will foster transparent, open communication and will solicit and encourage frequent, two-way communication.
4. TPU will support, invest in and make available opportunities for career growth and development.
5. TPU will provide an equitable work environment.

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Guiding Principle: Customer Service

Adopted Sept. 23, 2020

Purpose

As a municipal utility, TPU is committed to providing the highest levels of customer services. The Public Utility Board has established this directive to ensure positive customer experiences in their interactions with TPU staff, Board Members, consultants, and sub-contractors.

Values

1. TPU takes pride in its role as a critical services supplier for the communities it serves. TPU recognizes the impact customer service has on community relations, trust and respect.
2. TPU customers will be treated compassionately, respectfully, and equitably.
3. TPU customers and stakeholders will be listened to, valued and engaged with civil, professional, and timely communication in our communities most commonly used languages.

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Guiding Principle: Resource Planning

Adopted Sept. 23, 2020
Updated Set. 27, 2023

Purpose

TPU’s highest priority is providing safe and reliable power, water, and rail services that meet or exceed customer needs over the long term (20 to 60 years).

Outcomes

1. Long-term resource plans that fairly estimate customer trends and requirements and contemplate the universe of practicable alternative sources of power, water and rail services considering the likely progression of business and technology advancement.
2. Long-term resource plans that reflect changing legal and regulatory requirements that have direct or indirect influence on resource alternatives.
3. Long-term resource plans that are broad based and unbiased, derived from comprehensive “best practices” analyses that take into account current utilities industry conditions and predictable trends in addition to future uncertainties and risks including those associated with climate change.
4. Long-term resource plans that incorporate input from customers, stakeholders and other relevant sources.
5. Work product that is written in a way the general public can comprehend while also providing transparency through technical documentation for those interested in the details.

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