enabling the intelligent energy future

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A collaboration of: Enabling the Intelligent Energy Future Gary Hayes Division V.P. and CIO, CenterPoint Energy

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Page 1: Enabling the intelligent energy future

A collaboration of:

Enabling the Intelligent Energy Future

Gary Hayes

Division V.P. and CIO, CenterPoint Energy

Page 2: Enabling the intelligent energy future

Houston •

• Little Rock

• Minneapolis

About CenterPoint Energy

• Public company traded on the New York Stock Exchang e (CNP)

• Headquartered in Houston, TX

• Operating 6 business segments in six states• Electric transmission and distribution

• Natural gas distribution

• Interstate pipelines and natural gas gathering (recent master limited partnership formed – Enable Midstream Partnership)

• Serving 5.4 million electric & gas customers• Managing 2.3 million electric smart meters in Houston electric service area.

Delivering 77 Gigawatts for 115 Retail Electric Providers in the Texas Competitive Electric Market

• $22 billion in assets, $8.5 billion in revenue

• 8,827 employees

• Over 130 years of service to our communities

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Page 3: Enabling the intelligent energy future

Topics

Drivers

Intelligent Design – Solution Frameworks

CenterPoint Intelligent Energy Reference Architecture (CIERA)

Building the future – work in progress

3

Final Thoughts and Questions

Page 4: Enabling the intelligent energy future

Intelligent

Energy

Solutions and

Services

Consumer Technologies

Information

Technologies

Operational & Business

Technologies

Convergence

� Smart Phone and Tablet Technologies

� Multi Channel Interaction & Social Media

� Affordability Information accessibility and sharing

� Internet of Things

� Smart Meter

� Intelligent Grid & Demand Management

� Software as Service, Citizen Software & Services

� Mobility, Preferences, and Real-Time

� Big Data and Complex Event Processing

� New Service Models.. Cloud

� Cyber Security

Convergence is driving new thinking,

strategies, and services - and requiring

innovative approaches and

technologies….

We are being driven to a different future, an “intelligent” future…

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Page 5: Enabling the intelligent energy future

How do approach future design?“Evolution versus Intelligent Design” – A look to complex biological systems

• Evolution is a process that results in changes in a population spread over many generations. Biological evolution, simply put, is descent with modification. This encompasses small-scale and large-scale changes

• Intelligent Design states that only the guidance of an intelligent power can explain the complexity and diversity that we see to day -- that life as we know it could not have developed through random natural processes

Many of our utility technologies “evolved” requirement by requirement;

however, as we look to the future “intelligent design” will be essential

because of the sophistication and complexity happening today

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Page 6: Enabling the intelligent energy future

WMSWork

Management

CISCustomer

InformationSystem

DSDispatching

System

OMSOutage

Management

MDMobileData

System

GISGeographicInformation

System

1

2

364

5

7

9

10

811

Operational Integration Chart for Utilities – Vintage pre-2000

13

12

MRMV90Meter

Reading

14

SCADASupervisory

Control & DataAcquisition

Before we look forward, let’s look back…

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Page 7: Enabling the intelligent energy future

WMSWork

Management

CCSCustomer

CareSystem

S&DSScheduling

& DispatchingSystem

OMSOutage

Management

MDMobileData

System

GISGeographicInformation

System

1

2

364

5

7

9

10

811

Operational Integration Chart for Utilities – Vintage 2010

13

12

MRMV90

IDR MeterReading

14

15

DCEData

CollectionEngine

MDMMeterData

Management

16

17

18

DADistributionAutomation

System

SCADASupervisory

Control & DataAcquisition

Grid & Customer transformations driving change…

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Page 8: Enabling the intelligent energy future

EAMEnterprise Asset

Management

CCSCustomer

CareSystem

PS&DPlanning, Scheduling

& Dispatching

OMSOutage Analysis

andManagement

MDMobileData

System

GISGeographicInformation

System

1

2

364

5

7

9

10

811

Operational Integration Chart for Utilities – Future (by 2020?)

13

12

MRMV90

IDR MeterReading

14

IGIntelligent

GridSystem

15

DCEData

CollectionEngine

MDMMeterData

Management

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17

18

CRMCustomer

RelationshipManagement

19

DMDemand

Management& Response

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21

CEPComplex

EventProcessing

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SASituationalAwareness

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OAEOperational

AnalyticsEngine

22

MoMNetwork

Manager of Managers

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SCADASupervisory

Control & DataAcquisition

The “Intelligent Energy” future will demand more…

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Page 9: Enabling the intelligent energy future

Challenge: The “Borg Effect” – “Resistance is Futile”

• Right out of Star Trek, the Borg have a singular goal, namely the consumption of technology.

• Mantra - "We are the Borg. Your biological and technological distinctiveness will be added to our own. Resistance is futile."

Over the recent years we have seen the “Borg Effect”

across the utility technology footprint and it is

increasing. Acquisitions to consolidate previous a single

dimension bolt-on into larger footprints, larger systems

acquiring niche solutions and so on. This creates

challenges for implementation integration, master data,

error management for the utility…intelligent design will

not be without its challenges!

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Page 10: Enabling the intelligent energy future

Challenge: Transitioning IT to the intelligent future while addressing these opportunities…

• Event Explosion

• Big Data

• Analytics & Automation

• Modernization

• IT / OT

• Mobility

• Innovation

• Sustainability / Talent

• Consumer transformation (technology, generational…)

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Page 11: Enabling the intelligent energy future

A successful approach requires deploying anchors to create the intelligent energy future…

Customer Choice:Enabling consumers with the knowledge, information and capabilities to understand and control their energy

choices

Intelligent Grid:advancing the capability to systematically manage and control the grid as a “self-

correcting” system, improving reliability, improving

recoverability during natural events, and providing for demand management &

response programs Information:

the collection, security, translation and presentation of information through monitoring, reporting, analysis and communications which

allow operating organizations and consumers to understand, manage and control their energy responsibilities

Advanced Metering

Customer Choice

Intelligent Grid

Information

Advanced Metering System:the capability to systematically record customer consumption,

to remotely monitor and control metered services, and the collection of consumer based device information

IntelligentEnergy Future

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Intelligent Energy:• Grid Control• Sensing• Usage, Outages• Reporting, Analytics, Alerts• Remote Diagnostics• CRM / Billing / Pricing• Competitive Retail Offerings• Appliance Diagnostics and Offers• Smart Energy Wizards

A successful approach requires changing the view from “operations out” to “consumer in”…

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A successful approach incorporates “enterprise architecture as a strategy” and “solution framework” thinking…

• Business Strategy Driveno CenterPoint Business Strategy

o Business Unit Strategieso IT Strategy

• Utility of the Future (Business View)o Empowered Consumerso Increased Open Markets

o Utilization of Demand Management, Response, Renewable Energy, Electric Vehicles…

o Maintained and/or Enhanced Grid Reliability, Resilience, Security, and Efficiency in the Face of Increasing Complexity

o Increased Worker Safety and Productivity• Utility of the Future (Technical View)

o Advanced Communications Infrastructure

o Sophisticated Consumer Systemso Automated Grid Operations and Control

o Integration of Traditional, Renewable and Distributed Energy Resources

o Effective Grid Planning and Asset Efficiency

o Increased Workforce Effectiveness

� Mobility & Smart Devices� Information / Analytics� Collaboration & Communications� Core Applications� Customer Communications

Company Strategy

Business Strategy

IT Strategy

Business Capability

Technical Architecture

Enterprise ArchitectureFrameworks

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This approach produced forward thinking and resulted in ourCenterPoint Intelligent Energy Reference Architecture (CIERA)

• Framework Overview:o Business Driverso Business Objectiveso Business Scenarioso Business Capabilitieso Business Benefits

• Guiding Principles

• Scenario / Use Cases• Maturity Model

• Technology Building Blocks• Technology Building Block Gaps

CIERA is comprised of frameworks underlying Business Services

6

Fra

mew

ork

Com

pone

nts

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Enterprise Architecture Approach - Key ComponentsBusiness Vision, Enterprise Architecture, Building Blocks and Technical Architecture Articulate the Li nkage Between Business Strategies and IT Assets

The Business Vision Describes & Interrelates Mission, Vision, Goals and Strategies with Business Components & Interfaces

The Technical Architecture Describes the Physical Implementation of the CNP Technology, Standards and Services

The Enterprise Architecture Associates Main Business Components with Enabling Technical Elements from a Business-Driven Perspective

The Building Blocks are Logical Components of Select Technical Services and are the Basis for Technical Design, Selection or Creation

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Business Vision

Enterprise Architecture (CIERA)

Technical Architecture

• Consumer Business Vision• Business Strategy• Major Interdependencies

• Common Business Components• Diverse CNP BU’s• Smart Energy • Major Interdependencies

• Technical Infrastructure• Applications• Network• Data / Information• Service Management• Security

Solution Building Blocks“Frameworks”

• Mobility & Smart Devices• Information / Analytics• Collaboration & Communications• Core Applications• Customer Communications

Solutions Roadmap

• Business Initiatives Aligned to IT Technical Projects• Multi-Phased / Multi-Year• Building Blocks and Supporting Architecture

1

CenterPoint Business Initiates a Project or Initiative

2

Business and IT Develop Detailed Requirements and Validate Against Frameworks and IT Solutions

3

IT Capabilities Are Reviewed and Designed Against Business Scenarios, Frameworks and Architectures

The Roadmap is a Multi-Year Plan of Strategic Business and Technical Projects Linked to CNP Business Strategies

4

Required IT Solutions are Mapped to Support Business Initiatives and Planning Roadmaps

Actionable B

usiness-Driven

Technology Strategy

Actionable B

usiness-Driven

Technology Strategy

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CenterPoint Intelligent Energy Reference Architecture (CIERA)

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Customers RetailersService

Providers RegulatorsInfo

Workers Generators

RetailersService

Providers RegulatorsField

WorkersInfo

Workers Generators Vendors MarketsSmart

Devices

FrameworksConsumers

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Slide 17

Framework Use Case: Customer Multi-Channel Services

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Customer Channel Communications FrameworkTechnical Building Blocks

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Customer Communication FrameworkTechnical Building Blocks Gaps

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Working gap closure, for our Customer Vision Platform (CRM) implementation is our Predictive Analytics Engine, focused on improved customer interaction…

BRF -Predictiv

e Algorith

m

BRF -Predictiv

e Algorith

m

Rule Model

er

Rule Model

er

Alert Modeler

Alert Modeler

PREDICTIVE ANALYTICS

ENGINE

Business Rules Framework (BRF) Plus -PREDICTIVE ALGORITHM:� Currently Designed in CRM using

Business Rule Framework (BRF Plus)� Ability to turn on-off any Business

Rule(s)

Rule Modeler� Configurable in CRM to evaluate the

qualification Criteria for Super 8 Business Process in an interaction

� Prioritize Agent Alert Messages� Auto Insert “Categorization” in

Interaction Record to track the benefit of PAE

ALERT MODELER� Configure Alert Messages / Dynamic

Variables / Themes / Icons / Tool Tip� Navigate to Context based Web UI

Screens with related Data Populated

Input – BP No / Premise

Details

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PAE Data Sources and Interactions

BRF

RM

AMInput 1

Input 2

Input 3

Output 1

Output 2

Output 3

TRIGGER ACTIONPREDICTIVE

ENGINE

CRM PAE

First Preferred Data Source for PAE

PAE gets data

PAE Provides data

Based on the channel input, the PAE is triggered to solicit information and provide information…

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How PAE can be utilized in a Call Flow?

Proactive Communication:0. Use PAE to qualify the customer and initiate Pro -active Customer Communication

Intelligent IVR Menu: (Consulting Approach by IVR)1. Customer Calls Contact Center. IVR handles the c all 2. IVR calls CTI and provide the “Account Authenticat ion” information like ANI, Drivers License, Last 4-S SN3. CTI requests CRM about the Predictive Analytics Details based on Account Authenticated Information. 4. Predictive Analytics Engine, executes the “Analyti cs Algorithm” based on data from CRM / ECC / BI HAN A / Legacy System.5. Based on Predictive Analytics Algorithm,

A. The results are included in Contact Attached Dat a (CAD)B. IVR would provide “Intelligent Self Service Option s”

Smart Routing:C. Smart Routing to the correct agent based on Agent Skill Set / Availability and Customer Attributes

6. Agent receives the call and confirms the Custo mer

Proactive Customer Handling: (Consulting Approach b y Agent )7. Based on CAD, CRM raises appropriate alert messag es from Alert Modeler8. Agent acknowledge the issue to the Customer based on predictive details provided9. Agent Performs “ Consulting Interaction” with the Customer

CRM

IVR CTIPredictiv

e Analytics Engine

Alert Model

er

Customer Agent

1 2 3

4

5

7

6

8

9

0

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Predictive Process –Agent View (Working Example, In Realization Phase)

Messages are Categorized to “Super 8”

Business Process that accounts for about

76% of the total call volume

Most appropriate predictive process is

highlighted and subsequent details shown in

second level menu

Customer Specific Messages are generated

with Variables populated from various Data

Sources

Messages are presented in the Order of $$ /

Date / Caution and Information categories.

Agents would be trained to quickly identify

the information based on Icons

System automatically captures the Predictive

analysis output for future analysis

Deep Level Navigation that takes to the

appropriate subsequent screen

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Business Benefits Enabling Capabilities Building Blocks

Scenario

Overview

Business Data

Warehouse

Cube

Other Data

• Improved ability to take proactive actions, reducing unscheduled outages and overtime

• Improved customer satisfaction by reduction in forced outages , proactive and timely outage notification, and reduced time to repair

• Improved field crew utilization• Reduced loss of revenue due to forced outages

Detect chronic transformer overload condition, predict significant transformer life reduction, initiate work management ticket to correct or replace before failure.

• Complex Analytics • Advanced Reporting Tools• Asset sensing and instrumentation.• Historical data accessible for extended periods of

time.• Network connectivity is accurate and kept up to

date.

Web Information

Findings are entered into the model and the data analysts tweak the model and modify the predictive model as needed.

4

Work orders for transformer inspections or replacement are issued .

3

The data analysts build predictive models that are entered into the complex analytics engine . Transformers that match the modeled patterns are identified for inspection.

2

Engineers, working with data analysts use data mining and complex analytics to develop correlations between factors including voltage variations, weather, and maintenance records .

1

1 2

3

4

• Developer Report Authoring• Other Reporting Services• Complex Analytics• Data Mining Services• Data Management Services

Framework Use Case: Equipment Load Management

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Information Analytics FrameworkTechnical Building Blocks

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Information Analytics FrameworkTechnical Building Blocks – Gap Analysis

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Conceptual Data & Analytical FrameworkEnd-to-End Analytical Process

Adapted to utilities from SAS Fraud Framework

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Evolving Technology Data & Analytical Framework End-to-End Analytical Process

Situational Awareness

Systems of Systems Management

Advanced Simulations and Predictive Control

During our journey, we learned our original conceptual design was just the beginning. The look beyond requires even more sophistication to move us forward:• Situational

Awareness• Advanced

Simulations & Predictive Control

• Systems of System Management

??

??

??

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Outage to Restoration Framework: Technical Building Blocks with gap assessment and closure from 2012 to 2020…

2015 20202012

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Bringing it all together through analytics…

Slide 3030

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Electric OperationsAsset Life Cycle Management – Dashboard & Analytics

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• Identify Suspects: Analyze meter events, usage data and other enrichment data to deliver a prioritized list of suspects with a quantitative confidence level that a diversion occurred.

Diversion Analytics

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Diversion Dashboards

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Near-Real-Time View of Advanced Metering System Communications Systems: Situational Awareness in Telecoms Control Room

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Real-Time View Indicating Traffic Congestion with AlertsSituational Awareness in Telecom Control Room

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Real-Time Comms Dashboard in Use Today (Supporting High Data Rate)Situational Awareness in Telecom Control Center

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Traditional View of the Storm with Lightning: Streaming Information

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Meter Outage Events with No Matching Restoration & Length of OutageStreaming Meter Event Information

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Current Situational Awareness Release: PONs rolled up into Outage Cases (Circuit, Fuse, Local). Initial Crew visibility

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Real-Time Situational Awareness: Meters, Customers, Cases…9/13/2013 – Scattered Thunderstorms

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Real-Time Situational Awareness: Meters, Customers, Cases…8/16/2013 – Pop up late day severe thunderstorm and high winds, ~18:00

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Real-Time Situational Awareness: Meters, Customers, Cases…8/16/2013 – Pop up late day severe thunderstorm and high winds, ~22:00

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Near Real Time Outage Operational Dashboard (5 minute refresh rate)9/13/2013 – Scattered Thunderstorms

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Near Real Time Outage Operational Dashboard (5 minute refresh rate)9/13/2013 – Scattered Thunderstorms

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Near Real Time Outage Operational Dashboard (5 minute refresh rate)8/16/2013 – Pop up late day severe thunderstorm and high winds, ~18:00

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Achieving analytical and operational sophistication…intelligent design and maturity…

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Final thoughts to build the intelligent energy future…

Be “Intelligent Designers” and not “Requirement Evolut ionis t”o Creativity & Innovation Expected

Get ready!o “Increase leverage and tune” your core solution engines. Get them ready to be the “engines” of success

o Improve use & usability for internal users – help them move to the next level of performance to leverage the engines

o Turn the core “reporting” into interactive dashboards and information tools – enhance your current foundation

Customers – changes are on their way as new generati ons become “energy buyers”o Customer generations are and will be increasingly technology savvy and will demand the same from uso Customer facing simplification: easy interaction and personalized – “any time, any where, anything I need – simple”

Information Creates Value – next generation analytic s are hereo Information Value – next generation dashboard, correlation, user integration / ease of use / valuable

o Begin the analytical journey – correlation, intelligence, situational awareness, predictive modeling

o Build the analytics engine. High volume, high speed information management (processing, filtering, selecting, predicting, leveraging, modeling)

o Build, find, acquire or contract the talent for the future. Try new approaches to achieving results

Think to the futureo Solutions thinking, frameworks, have an IT strategy.

o What’s in your 2020 plan?

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Page 49: Enabling the intelligent energy future

A collaboration of:

Gary HayesCenterPoint Energy

[email protected]

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