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We Energies 2008 STAR Award

WE Energy Award
[The following is a copy of the speech given by Tom Route of We Energies, during the annual We Energies awards presentation]

In 2006 We Energies began a significant gas meter change project in the Metro Milwaukee area. This came about from a new regulatory requirement, which resulted in a dramatic increase in the number of gas meters we need to change annually. As we got into the project, we recognized that many of the meter sets were very old, in poor shape and needed to be replaced as well. And making it more interesting, we didn’t know the condition of the meter sets or whether they would need to be replaced (along with the meters) until we were on site to do the work.

As a result, demand for many of our meter sets increased significantly in a short time frame. For example, demand for our most popular residential meter set increased 250%.

Our supplier, Mechanical Specialties, really stepped up for us. They were able to continually adapt their production schedule to meet this challenge, which kept our project on track. On several occasions when we were in a bind, they worked overtime and weekends as necessary.

Just as background, Mechanical Specialties is located here in New Berlin, Wisconsin and is the Midwest’s largest manufacturer of prefabricated gas meter sets. In 2006 they were acquired by R.W. Lyall, a major supplier of gas distribution products. We Energies’ current contract with Mechanical Specialties includes the residential meter sets we discussed as well as commercial meter sets, risers, and brackets, all used for installation of natural gas services.

We Energies and Mechanical Specialties have worked together on cost savings opportunities which have been achieved through design changes, product consolidation, and improved forecasting. Mechanical Specialties continues to make significant investments in their tooling and infrastructure which has increased their efficiency and controlled our costs. And recently they built some trial units of our larger rotary meter sets that we currently build in-house, which makes them a backup supplier if we should fall behind and need their help.

Let me just say that coming from the Operations side of the business we are extremely pleased with Mechanical Specialties products as well as their service - particularly with the meter sets. They are prefabricated and painted in a shop environment as opposed to our previous method of fabricating and painting in the field. This allows for a setting that is easier to install, holds up longer, provides fewer opportunities for leaks and looks much better longer to our customers.

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