Designing sustainable development indicators at an electric utility

There is a pressing requirement to determine how electricity needs can be met in a more sustainable manner. Although many electric utilities have begun developing strategies for addressing the challenge of sustainable development, there are ongoing needs to find methods of measuring progress with respect to the economic, environmental, and social impacts of electric utilities. Fundamental to this task is the creation and integration of sustainable development indicators.; The purpose of this research was to develop an original system of sustainable development indicators specifically tailored to the transmission system of an electric utility. To achieve this aim, a six-step Sustainable Development Indicator Design Process was developed: (1) conduct a needs assessment; (2) conduct process planning; (3) develop a draft set of indicators; (4) test and adjust the indicators; (5) integrate the indicators; and (6) review and improve. Every step in the process involved consultation with internal experts at the case utility and external experts in the field of sustainable development indicators.; To maximize the utility of the indicators, the process had an overarching emphasis on integration with existing business infrastructure. A total of 98 indicators were incorporated into the system of indicators, with 70 being developed as a part of this process and 28 representing indicators previously developed by the company. Recognizing the difficulty of working with nearly 100 unstructured measures, four techniques were used to increase the utility of the indicators: (1) the indicators were clustered around eight key priority areas, (2) the indicators were organized according to a hierarchical approach linked to the business planning process, (3) the process of integrating the indicators with existing corporate initiatives was staggered over time, and (4) a tiered aggregate was developed.; The potential benefits of the project are vast. The indicators provide a means for electric utilities to measure the progress of their transmission systems with regard to sustainable development. The development of an original indicator integration model provides a method to integrate performance indicators with existing business infrastructure. Furthermore, the indicator design process provides a basis for improved design of corporate sustainability indicators.