Leading the Energy Transition

Lora Anguay, Chief Zero Carbon Officer, SMUD

Lora Anguay, Chief Zero Carbon Officer, SMUD

The Sacramento Municipal Utility District (SMUD) is located in northern California and has been serving the Sacramento region for over 70 years. Towards the end of 2020, the SMUD board of directors adopted a climate emergency declaration which instructed staff to take action in the fight against climate change. Within six months, SMUD staff developed our 2030 zero-carbon plan, which was approved by our board in April 2021. Our goal is to achieve zero emissions in our power supply by 2030 and to help facilitate the region’s decarbonization efforts through the electrification of vehicles and buildings. When adopted, it became the most aggressive plan of any utility in the United States. As SMUD’s first Chief Zero Carbon Officer, I have been tasked with leading this transition.

Leading change is never easy, but it is a skill I have developed throughout my 18 years in the utility industry. Over the years, I have led major initiatives that required changes in procedures, job duties and technologies that impacted a large portion of our organization. Whether or not you are leading a major transition, change leadership is one of the most critical competencies for effective leadership, as our world is constantly evolving. Below is a list of traits and characteristics that I believe are needed to lead people successfully through a transition or change.

Have a clear vision. It is essential to have a clear understanding of where you are trying to go so that you can clearly communicate the mission and inspire others to embrace it. Having a clear vision also enables everyone to work towards the same goal. Our goal is to be a leader in the fight against climate change.

Be authentic. Being authentic creates higher levels of trust which creates a positive working environment and increases productivity. Be transparent with your employees about all aspects of work and performance, including your own mistakes and weaknesses. Being authentic helps to create an environment of psychological safety in which people are comfortable with expressing and being themselves.

Be inclusive. Achieving zero emissions is our goal, but how we get there is not set in stone. By being flexible, you allow for the input of others. Creating space for personal initiative and decision-making helps to foster a sense of ownership. A simple method is to facilitate brainstorming sessions to discuss concerns and develop solutions. All too often, leaders feel that they need to provide the answers; instead, they create a space for open dialogue and promote the sharing of different perspectives.

"Our goal is to achieve zero emissions in our power supply by 2030 and to help facilitate the region’s decarbonization efforts through the electrification of vehicles and buildings"

Stay connected. It is important that you are visible and responsive to your employees. This helps to build open communication and trust. With almost 300 employees within my business unit, this can be challenging. I have found that “town halls” or “all-hands” are effective when trying to disseminate information quickly but is usually one-sided conversation. What I have found to be more effective when trying to promote open dialogue is attending smaller group meetings, dropping into staff meetings, and having regular one on ones with my entire leadership team (supervisors, managers, and directors). This allows you to stay up to date on progress and keep informed on challenges that may require additional attention.

Normalize failing and celebrate successes. You will never fail if you never try, but you will never succeed. Failure is a normal part of progress; it is how we grow and develop. We must destigmatize failure to help reduce the fear of trying something new. My leadership team discusses failures openly; we focus on what was learned or gained, and we pivot as needed.

Be persistent. There will always be setbacks and challenges. Persistence is simply the refusal to give up. What helps is to know the reason behind your goals. It is simple, and I want to leave this world a better place for our children and grandchildren.

The energy industry is going through a significant transformation. Regulations will continue to require increases in renewable resources, electrification will challenge local grid capacity, distributed energy resources will change how energy is delivered, and rates will need to evolve to eliminate inequities in the cost and benefits of distributed energy resources. Fear, anxiety, and denial are normal responses to change, but this transition is happening. Effective change leadership is an essential skill that is needed to help employees navigate through this transformation.