Boston Edison streamlines to lead industry change; Creates four separate business units.BOSTON--(BUSINESS WIRE)--July 27, 1995--Boston Edison today announced another major step in the company's leadership role in shaping the evolving competitive electric utility industry. The company is reorganizing into four distinct business units, each with separate service and profit responsibilities. The business units will be effective Nov. 1, 1995. Boston Edison Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Thomas J. May said, "This approach establishes clear accountability for meeting customer service and price expectations while developing opportunities for financial growth." He said the business unit approach is "consistent with Boston Edison's `E Plan' for a restructured industry which the company filed with the Massachusetts Department of Public Utilities in March." That plan would create for all customers a competitive market for generation and establish performance incentives for the distribution part of the business. In a related matter, May reconfirmed his previously announced intentions to seek a president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. from outside the company to replace George W. Davis who previously announced his plans to retire effective Sept. 15, 1995. May said, "We are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. an individual with experience in a competitive business which has gone through a major transition and can employ that experience to help shape this company's future." The four business units will be: o CUSTOMER BUSINESS UNIT. This unit will have primary responsibility for interaction with customers and will consolidate energy delivery, system operations, sales, marketing and customer service. Transmission of electricity will be consolidated within this organization. This unit will be led by the chief operating officer currently being recruited, and will be assisted by Alison Alden, Vice President, Marketing and Sales, on the customer side and Robert A. Ruscitto, Vice President, Electrical Customer Service on the operations side. Also reporting to the chief operating officer will be two generating business units and the Corporate Services Activities that combine or consolidate certain enterprise-wide needed support services, provided based on specialized knowledge, best practices, and technology to serve internal (and sometimes external) customers and business partners. Business Unit. o GENERATING BUSINESS UNIT - FOSSIL. This unit will be responsible for the production of electricity at the company's South Boston and Everett power plants which are fueled by natural gas and low sulfur sulfur or sulphur (sŭl`fər), nonmetallic chemical element; symbol S; at. no. 16; at. wt. 32.06; m.p. 112.8°C; (rhombic), 119.0°C; (monoclinic), about 120°C; (amorphous); b.p. 444.674°C;; sp. gr. at 20°C;, 2. oil. This unit will be led by Ronald A. Ledgett, who is currently senior vice president and oversees Power Delivery. o GENERATING BUSINESS UNIT - NUCLEAR. This unit will be responsible for the operation of the Pilgrim Nuclear Power Station in Plymouth and all nuclear support functions. This unit will continue to be led by Senior Vice President E. Thomas Boulette. The two generating business units will be further consolidated into a single generating business unit next year. o CORPORATE SERVICES BUSINESS UNIT. This unit will provide central business services including finance and accounting, information services See Information Systems. , materials management Materials management is the branch of logistics that deals with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, and engineering services to other business units. This unit will be led by James J. Judge, who is currently director of corporate planning. Other corporate policy functions reporting directly to the CEO are Corporate Relations headed by Senior Vice President L. Carl Gustin, Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. headed by Senior Vice President John J. Higgins, and Strategy and Regulation headed by Vice President and General Counsel Douglas S Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. . Horan. The new business unit structure is designed to further reduce operating costs operating costs npl → gastos mpl operacionales , simplify and expedite ex·pe·dite tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites 1. To speed up the progress of; accelerate. 2. decision making, and create a more customer responsive organization. The restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the company will eliminate about one-third of the approximately 200 upper and middle management positions by the end of the year. The company, which had a peak employment of about 4,800 in 1990, expects to reduce staffing to about 3,500 in 1996, a reduction of more than 25 percent. Current staffing is about 3,950. May said, "We are streamlining our company to continue to provide all customers with innovative products and services at competitive prices." The utility is building a pilot advanced distribution system to test new services such as inter-active communications with customers. Boston Edison is the first investor-owned electric utility in the nation to issue "power call options" to ensure consumers future supplies of electricity at the lowest available price. The company was the first New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. utility to announce a freeze of base rates until the year 2000. In a separate announcement of the company's second quarter earnings released today, the Edison CEO said he is pleased by the strength of earnings as the company and consumers enter an exciting period of change in the electric utility industry. This financial strength allows us to continue to invest in new technologies and pursue new business opportunities to enhance overall customer value. Boston Edison is an investor owned electric utility which provides electricity and electrical energy services to about 650,000 customers in the city of Boston and 39 surrounding cities and towns. CONTACT: Boston Edison Mike Monahan, (617) 424-2460 Evenings and Weekends, (617) 541-7888 |
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