enterprise technology plan – customer care & billing (cc&b ...€¦ · 14/05/2019 ·...

Powering our way of life.May 14, 2019

Enterprise Technology Plan – Customer Care & Billing (CC&B) Upgrade

Enterprise Technology Plan

CC&B UpgradeGrant PUD’s Customer Care and Billing (CC&B) system requires an upgrade by October 2020 and staff has analyzed the options:

Options OutcomeDo Nothing CC&B (version 2.4) would be

unsupported post 10/2020Replace CC&B with a new Customer Information System (CIS)

Significant costs, significant internal resources, significant organizational change management

Continue CC&B (on premise) and upgrade to next version

Short-run option as CC&B will eventually be replaced with Oracle’s current utilities platform

Upgrade to Oracle’s Customer Cloud Services (CCS), a cloud based platform, software as a service (SaaS)

Combines the power of utility meter-to cash solutions with the scale, agility, and simplicity of the Oracle Cloud. Built on the foundation of the market-leading CC&B and Oracle’s Meter Data Management (MDM)

Why Software as a Service (SaaS)• No hardware responsibility

• 24 x 7 system monitoring

• Software upgrades are scheduled and consistent

• Automated database optimization

• Scalability when needed

• Higher level of cyber security than can be maintained

• Pre-configured system using Oracle learned best practices

• Difficulty maintaining current technology skills

• Dedicated Service Levels

• Full suite of products available

Benefits of a MDM• The AMI/MDM systems helps to quickly and more efficiently identify orphan meters that are not tied to a

customer account

• Remote disconnects will be fully automated using our Customer Information System (CIS)

• The AMI/MDM systems will enable Grant PUD to obtain automated outage notification from the meters, receive specific location information and verify when power has been restored. MDM can monitor outage events and forward to other systems whether it is a outage management system or a outbound customer notification

• The MDM/CCS has the ability to calculate complex billing all within one system

• It has the ability to validate, edits and estimate (VEE) meters that might not be able to be reached and possibly resolve the exception

• The technological advances of AMI/MDM networks and meters will allow Grant PUD to collect richer data than ever before, the MDM will provide analytics

• The MDM can aid in the early detection of meter tampering and energy theft by the analytics and functionality of:

• Detect usage on inactive service points• Identify meters with excessively high number of tamper alarms• Detect meters with sudden increase/decrease in consumption

Cost to Upgrade versus CCS Implementation

CC&B ImplementationNov 2013 – Feb 201516 month project

Cost CCS ImplementationJul 2019 – Jun 2020 (tentative)

12 month project

Cost

CC&B Software $563,100 CCS Licensing $442,100Hardware $128,300 Hardware $32,700Contractors (SI only) $3,016,300 Contractors (SI and PM) $3,763,339Internal Labor $1,843,400 Internal Labor (~50%) $943,200

Total $5,551,100 Total $5,181,339

Project Team• TMG Consulting is providing Assessment and Project

Management• CCS implementation services are being completed by

Oracle Services• A Steering Committee will oversee the success of the

project• The Stakeholders will be the departments that use the CIS

system• The Project Team will be from IT and Customer Solutions

areas

Contracts

Contractor Contract CostOracle• Cloud Services• System Implementation

130-9537 7-year total $6.4M• $3.1M• $3.3M

TMG Professional Services Assessment and Project Management

430-9096 Up to $500,000

Cost/Benefit Analysis

SummaryResults

10 YrModel

Total Cost - Solution $10.6MTotal Cost - Alternative $21.8MNet Benefit (escalated) $12.1MNet Present Value $8.5MInternal Rate of Return (IRR) 74.6%Payback Begins in Year 1

Future Projects

• Customer Self-Service Portal & Mobility Solutions• Outage notification• Usage Data• Pre-Pay

• Service Order Management• Mobile Workforce

Powering our way of life.

Q1 2019 BUDGET TO ACTUALS

May 14, 2019

5/9/2019 1

Grant PUD | BUDGET TO ACTUALS Q1 2019

5/9/2019 2

• At the end of Q1 2019, O&M and Labor have both spent less than 25% of their annual budget target. Year End Projections for both O&M and Labor are currently expected to be near their budgeted targets.

• As a comparison, at the end of 2018 Q1 the O&M spent was 13% of budget and Labor was 22% of budget.

• Capital is at 11% of total 2019 budget target as of 2019 Q1. Year End Projections for Capital spending are currently expected to be 10% under the budget target.

• As a comparison, at the end of 2018 Q1, Capital spent was at 10% of its budget target.

• Year End Projection net direct charges (O&M, Labor, Capital) are forecast less than the 2019 budget by $12M, which is due primarily to lower than planned Capital spending.

2019 DIRECTS YEAR-END PROJECTION OVERVIEW2019 Budget 2019 YTD

% of Annual Budget

2019 Year-End Projection

YEP Variance $YEP

Variance %

Under Budget /

Over Budget

Direct O&M 53,571,106$ 9,520,467$ 18% 53,824,561$ 253,455$ 0% Over Budget

Direct Labor 70,696,771$ 15,557,343$ 22% 70,497,168$ (199,602)$ 0% Under Budget

Direct Capital 121,283,874$ 13,389,828$ 11% 109,036,583$ (12,247,291)$ -10% Under Budget

2019 Directs Total 245,551,751$ 38,467,638$ 16% 233,358,313$ (12,193,438)$ -5% Under Budget


5/9/2019 3

2019 DIRECT O&M BY FUNCTIONAL AREA

• At end of Q1 2019, Direct O&M has spent 18% of its annual budget target. Year End Projection for 2019 Direct O&M spending is currently expected to be slightly over budget.

• As a comparison, at the end of Q1 2018, Direct O&M spending was at 13% of the budget target.

• The Chief Customer Officer group: HR up $400K, Rates up $200k.

• The Chief Financial Officer group: CFO Office down $525K, Internal Services down $280k, FP&A up $180k.

Direct O&M by Group

Department Functional Area 2019 Budget 2019 YTDYTD % of Annual Budget

2019 Year End Projection

YEP Variance $

YEP Variance

%

Under Budget /

Over BudgetAA0000 Board of Commission 60,000$ 5,779$ 10% 160,000$ 100,000$ 167% Over BudgetBA0000 General Manager 743,172$ 384,410$ 52% 743,172$ (0)$ 0% Under BudgetCA0000 Attorney 536,790$ 193,301$ 36% 536,790$ -$ 0% Under BudgetDA0000 Chief Customer Officer 4,654,895$ 660,842$ 14% 5,415,247$ 760,352$ 16% Over BudgetEA0000 Chief Operating Officer 30,335,936$ 5,686,508$ 19% 30,243,174$ (92,762)$ 0% Under BudgetFA0000 Chief Financial Officer 17,144,750$ 2,582,649$ 15% 16,630,616$ (514,134)$ -3% Under BudgetGA0000 Merchant Wholesale Telecom 95,563$ 6,977$ 7% 95,563$ -$ 0% Under Budget

53,571,106$ 9,520,467$ 18% 53,824,561$ 253,455$ 0% Over Budget

2019 Direct O&M


5/9/2019 4

2019 YEAR-END PROJECTION LABOR BY FUNCTIONAL AREA

• At the end of Q1 2019, the Year End Projection for FTR and FTE head counts is above the budget target. Current FTR head count is 606.

• For comparison, FTR head count was 590 at the end of Q1 2018 and 592 at the close of 2018.

• FTE is a cumulative figure that reflects part-time and seasonal employees. • For comparison, the FTE utilization at close of 2018 was 19% over the 2018 budget.

• The Overtime Year End Projection is forecast to be 6% (~$330k) over budget. Overtime is both event-dependent and used to partially cover insufficient FTR.

• For comparison, at Year End 2018 Overtime was 31% or $1.35M over budget.


5/9/2019 5

2019 DIRECT LABOR BY FUNCTIONAL AREA

• At end of Q1 2019, Direct Labor has spent 22% of its annual budget target. Year End Projection for 2019 Direct Labor spending is currently expected to be slightly over budget.

• For comparison, at the end of Q1 2018, Direct Labor spending was at 22% of the budget target.

• The Chief Customer Officer group and Chief Operations Officer groups are projecting to be slightly over their Labor budget targets for 2019. The Chief Finance Officer group is projecting to be slightly lower than their Labor budget target for 2019.


5/9/2019 6

2019 YEAR-END DIRECT CAPITAL BY PROJECT

• The table shows projects with a $2M or larger budget. As of end of Q1 2019, Direct Capital spending is at 11% of targeted budget. Direct Capital 2019 Year End Projection spending is forecast to be 10% under budget.

• At the end of Q1 2018, Capital spending was at 10% of budget.

Project Title 2019 Budget 2019 YTD

YTD % of Annual Budget

2019 YEP YEP

Variance Under Budget / Over Budget

PR Turbine Upgrade 18,011,594$ 1,458,926$ 8% 19,509,506$ 1,497,913$ Over BudgetFiber Expansion 15,300,000$ 1,456,844$ 10% 15,300,000$ -$ Under BudgetPR Generator Rewind 11,052,111$ 1,861,802$ 17% 10,289,582$ (762,529)$ Under BudgetPR Embankment Improvements 8,792,000$ 170,969$ 2% 4,335,495$ (4,456,505)$ Under BudgetPR Spillway Stability Improvements 5,850,000$ 61,867$ 1% 2,106,867$ (3,743,133)$ Under BudgetWAN Generator Upgrade 5,771,290$ 198,703$ 3% 7,289,203$ 1,517,913$ Over BudgetWAN Spillgate Rehab 4,115,940$ 710,516$ 17% 3,790,516$ (325,424)$ Under BudgetRandolph Road Substation Expansion - Substation 3,896,222$ 155,241$ 4% 3,805,241$ (90,981)$ Under BudgetBroadband Customer Connectivity 3,100,000$ 1,153,921$ 37% 4,603,921$ 1,503,921$ Over BudgetFleet Replacement Program 2,810,000$ 271,330$ 10% 4,002,665$ 1,192,665$ Over BudgetClass 4000 breakout - Distribution Feeder Lines 2,750,000$ 460,670$ 17% 2,703,670$ (46,330)$ Under Budget10.13 Firewall Replacements 2,653,132$ 7,932$ 930,932$ (1,722,200)$ Under Budget9.1 Access Control and Video Management System 2,267,056$ 24,835$ 1% 1,074,835$ (1,192,221)$ Under BudgetMountain View Lineups 10 & 20 2,193,566$ 1,296,238$ 59% 2,196,238$ 2,672$ Over Budget11.1 ESRI ArcGIS Implementation for Power Delivery 2,009,004$ -$ 0% 2,009,004$ -$ Under Budget

121,283,874$ 13,389,828$ 11% 109,036,583$ (12,247,291)$ Under Budget


O&M Capital Labor Benefits*Capitalized

G&AInventory Loaded YEP†

O&M Elec 18,672,918$ -$ 25,464,001$ 10,517,306$ (3,519,335)$ (695,211)$ 50,439,679$ O&M PRP 35,151,643$ -$ 30,944,834$ 12,781,035$ (2,933,460)$ (1,061,606)$ 74,882,446$

O&M 53,824,561$ -$ 56,408,835$ 23,298,341$ (6,452,794)$ (1,756,818)$ 125,322,125$

Cap Elec -$ 43,315,943$ 7,377,373$ 3,047,050$ 3,519,335$ -$ 57,259,701$ Cap PRP -$ 65,720,640$ 6,710,960$ 2,771,804$ 2,933,460$ -$ 78,136,864$

Capital -$ 109,036,583$ 14,088,334$ 5,818,855$ 6,452,794$ -$ 135,396,566$

Total Expenditures 53,824,561$ 109,036,583$ 70,497,168$ 29,117,196$ -$ (1,756,818)$ 260,718,691$

Loaded Budget Loaded YEP†Loaded

VarianceUnder Budget / Over Budget

O&M 123,312,247$ 125,322,125$ 2,009,878$ Over BudgetCapital 149,245,983$ 135,396,566$ (13,849,417)$ Under Budget

Total Expenditures 272,558,230$ 260,718,691$ (11,839,539)$ Under Budget

Year End Projection Components

†other factors will influence the O&M loaded YEPs in Financial Forecast such as other revenues & expenses

5/9/2019 7

2019 YEAR-END PROJECTION LOADED O&M & CAPITAL

• Direct O&M YEP and Loaded YEP are over budget

• Capital and Total Expenditure YEP is under budget due to lower Direct Capital spending


5/9/2019 8

Questions?

2019 Semi-AnnualAudit Report

Commission

5/14/2019GCPUD Internal Audit Department 1

Meeting Objectives

1. Current State of Audit Department2. Moving Forward3. Review 2019 Audit Plan

Status of open audits Proposed changes to audit plan Three Year Audit Plan

2

Current State of Audit Department

1. Assessment of Internal Audit Practices Audit strategy and methodology Reporting structure and focus

2. Focus on Internal Controls Assessment of internal controls Testing of internal controls

3. Focus on emerging risks and trends LPPC, SAO, OIG and power industry

3

Moving Forward

1. Finalize open audits

2. Continual Risk Assessment Commission Executive Management Enterprise Risk Management

3. Continuing Education and Training

4. Senior Auditor Position

4

Status of Open Audits1. 2017 Voucher Audit

Post-field work (drafting report) June 2019

2. Small and Attractive Asset Audit Draft report May 2019

3. Ghost Employee Audit Final report May 2019

4. Design Build Contract Audit Draft report May 2019

5. Net Metered Loss Audit Field work TBD

5

2019 Audit Plan

6

2019 – Audit PlanKey Focus Areas for Audit Activities

Planned Assurance Audits1. Net System Losses Audit

2. Overtime & Upgrade Audit

3. 2018 Voucher Audit Emphasis on PO’s and procurement process

4. 2018 P-Card Audit

5. Rates and Customer Class Audit

6. Follow-up: Monitor Audit Recommendations

7

2019 2020 20212018 P-Card Audit 2019 P-Card Audit 2020 P-Card Audit

2019 Voucher Audit 2020 Voucher Audit

Vendor Trend & Employee Cross Check Payroll Roster Audit

Payroll - Overtime & Upgrade Audit

Power Distribution and Reliability Audit

Customer Deposit and Billing Audit

Rates and Customer Class AuditWholesale Marketing

Supply Audit Power Production Audit

Net Metered Loss AuditGeneration to BA Load

Customer Request /Metering/ Billing of Kwh Usage

Emerging Risks, Trends, and Focus



Follow-Up: Monitor Audit Recommendations



Continuous Monitoring

Audits

Risk Based Assurance

Audits

2018 Voucher AuditEmphasis on PO's and Procurement Process

Three Year Audit PlanApproved by Commission on 11/13/2018

8

2019 Budget To Actual – May 1, 2019

-

50,000

100,000

150,000

200,000

250,000

300,000

Total Labor O&M Travel and Training

9

Questions?

Comments?

Concerns?

10

2019 Federal and State Legislative Update

May 14, 2019 Commission Presentation

Federal Priority Issues116th Congress

2019 Federal Priority Issues:

Pro-Hydro / Sustainability

U.S. hydropower capacity can grow from 100 to 150 GW by 2050 (U.S. Dept. of Energy). There are 80,000 U.S. dams, but only 3% are hydropower. Water Infrastructure Act signed into law on 10/23/18 –

Sec. 3001 – Extends preliminary permits and start of construction deadlines for hydropower approvals. Sec. 3002 – Increases the capacity for exempt small conduit hydro up to 40 MW. Sec. 3004 – Establishes a 2 year permitting deadline for non-powered dams and closed loop pumped storage.Sec. 3005 – Consideration of Early Actions in Relicensing Term up to 50 years (previously 40 years).

President’s Memo to expedite FCRPS EIS to 2020 before his term expires.

Modernize the Columbia River Treaty

The U.S. Dept. of State is leading the effort to negotiate a modernized Treaty with Canada, which began in 1964. Our key objectives: Rebalance the power benefits. Funding for flood control should not be paid by electric rate payers, but by federal dollars. An ecosystem function added if a modern Treaty includes a net improvement to rebalancing the power benefits. Timely conclusion of Treaty negotiations (1-2 years).

Finance&

Telecom

Support S. 5003 (restore Advanced Refunding Bonds) – Opposed by Chairman Brady (R- TX). Support S. 1068 (Clean Renewable Energy Bonds) – Introduced by Senate Finance Committee Democrats. S. 2155 passed – Allows municipal bonds to qualify as high-quality liquid assets for federal bank liquidity standards. FCC – Support H.R. 530, which overturns FCC Order (Sept. 26, 2018) to regulate public power pole attachments. Monitor H.R. 6442 (by Rep. Kilmer, D-WA) – Tax credit to reimburse consumers for broadband infrastructure costs

in rural areas.

State Priority Issues2019 Legislative Session Wrap-Up

Top 5 State Priority Bills

Clean Energy Standard

PASSED – SB 5116: Governor’s 100% Clean Energy Standard Bill 2025: All coal eliminated from rates - Unspecified purchases are exempt from this requirement 2030: 100% carbon neutral standard for service to retail electric load

80% delivered carbon-free power (includes hydro & non-carbon emitting generation) 20% alternative compliance through either: (1) $60/MWh fee (for CCNG unit); (2) investment in energy

transformation activities; and/or (3) Renewable Energy Credits (RECs). Cost Cap: Incremental cost of compliance, including I-937 costs, is ≥ 2%, over a 4-year compliance period, of a

utility’s retail electric revenue requirement. Utility specific short-term reliability exemption

2045: 100% clean – Annual compliance, but no penalty.

Rural Broadband

PASSED – SB 5511: Governor’s Rural Broadband Bill (Grant PUD Bill) $21.5M competitive Grant/Loan program over 2 years ($7.1M Grant / $14.4M Loan). For unserved areas < 25 x 3mbps; Program administered by Public Works Board. ≤ $2M per project; except in econ. distressed co. (e.g. Grant Co.), then ≤ $5M & 90% of the project cost. Supported by Tribes, WA Farm Bureau, and WPUDA.

SafetyBid LimitsWildfires

PASSED – HR 1380: Utility Worker Safety – Increases sentences for assault of a utility worker. PASSED – SB 5418: Increases PUD Bid Limits – Procurement thresholds double in most cases since 2008.

Sunset clause was eliminated. PASSED – SB 5305: Creates Wildfire Task Force – Utilities and WA Dept. of Natural Resources (DNR) Task

Force to develop model agreement to mitigate wildfire liability.

Other Bills of Interest2019 Legislative Session Wrap-Up

2019 Other Bills of Interest:

Energy Bills that Passed

HB 1428: Simplifies the fuel mix calculation within Commerce. -Support HB 1512: Authorizes PUDs and cities to invest in EV infrastructure when cost effective. -Support SB 5588: Authorizes the production, distribution and sale of renewable hydrogen. -Support HB 1126: Includes distributed energy resource (DER) planning in power resource planning. -Neutral SB 5223: Modifies net metering by increasing system limits from 100 to 199 kW & 0.5 to 4% of peak capacity and allows

for meter aggregation in limited circumstances. -Neutral HB 1257: Energy efficiency for large commercial buildings. -Neutral HB 1444: Appliance efficiency standards -Neutral

Other Bills that Passed

HB 1594: Applies National Electric Safety Code (NESC) to wiring in power supply space and safety space for advance telecom installations. -Support

HB 1295: Lowers cost threshold for use of design-build contracts from $10M to $2M. -Support SB 5106: Work group to promote government resiliency and disaster mitigation. -Support HB 1102: Capital Budget -$5.575M for rehabilitation of the Beverly Bridge for vehicular use. -Support

Interim Work:

SB 6012 – Hydro Tax Parity SB 5418 – Bid limits study for consistency among public entities by Capital Projects Advisory Review Board. SB 5981 – Cap and Trade legislation. HB 1110 – Low Carbon Fuel Standards / tax incentives SB 5116 (Clean Energy Standard) Rulemaking and Low income energy assistance outreach.

Powering our way of life.

enterprise technology plan – customer care & billing (cc&b ...€¦ · 14/05/2019 ·...

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