Enterprise Technology Plan Customer Care & Billing (CC&B) - - PowerPoint PPT Presentation

Powering our way of life.

May 14, 2019

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

Enterprise Technology Plan

CC&B Upgrade

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

• ptions:

Options Outcome Do Nothing CC&B (version 2.4) would be unsupported post 10/2020 Replace 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

• utage 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 Implementation Nov 2013 – Feb 2015 16 month project Cost CCS Implementation Jul 2019 – Jun 2020 (tentative) 12 month project Cost CC&B Software $563,100 CCS Licensing $442,100 Hardware $128,300 Hardware $32,700 Contractors (SI only) $3,016,300 Contractors (SI and PM) $3,763,339 Internal 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 Cost Oracle

• 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

Summary Results 10 Yr Model Total Cost - Solution $10.6M Total Cost - Alternative $21.8M Net Benefit (escalated) $12.1M Net Present Value $8.5M Internal 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 OVERVIEW

2019 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

Grant PUD | BUDGET TO ACTUALS Q1 2019

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 YTD YTD % of Annual Budget 2019 Year End Projection YEP Variance $ YEP Variance % Under Budget / Over Budget

AA0000

Board of Commission 60,000 $ 5,779 $ 10% 160,000 $ 100,000 $ 167% Over Budget

BA0000

General Manager 743,172 $ 384,410 $ 52% 743,172 $ (0) $ 0% Under Budget

CA0000

Attorney 536,790 $ 193,301 $ 36% 536,790 $

• $

0% Under Budget

DA0000

Chief Customer Officer 4,654,895 $ 660,842 $ 14% 5,415,247 $ 760,352 $ 16% Over Budget

EA0000

Chief Operating Officer 30,335,936 $ 5,686,508 $ 19% 30,243,174 $ (92,762) $ 0% Under Budget

FA0000

Chief Financial Officer 17,144,750 $ 2,582,649 $ 15% 16,630,616 $ (514,134) $

• 3%

Under Budget

GA0000

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

Grant PUD | BUDGET TO ACTUALS Q1 2019

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.

Grant PUD | BUDGET TO ACTUALS Q1 2019

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
• ver their Labor budget targets for 2019. The Chief Finance Officer group is projecting to be slightly

lower than their Labor budget target for 2019.

Grant PUD | BUDGET TO ACTUALS Q1 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 Budget Fiber Expansion 15,300,000 $ 1,456,844 $ 10% 15,300,000 $

• $

Under Budget PR Generator Rewind 11,052,111 $ 1,861,802 $ 17% 10,289,582 $ (762,529) $ Under Budget PR Embankment Improvements 8,792,000 $ 170,969 $ 2% 4,335,495 $ (4,456,505) $ Under Budget PR Spillway Stability Improvements 5,850,000 $ 61,867 $ 1% 2,106,867 $ (3,743,133) $ Under Budget WAN Generator Upgrade 5,771,290 $ 198,703 $ 3% 7,289,203 $ 1,517,913 $ Over Budget WAN Spillgate Rehab 4,115,940 $ 710,516 $ 17% 3,790,516 $ (325,424) $ Under Budget Randolph Road Substation Expansion - Substation 3,896,222 $ 155,241 $ 4% 3,805,241 $ (90,981) $ Under Budget Broadband Customer Connectivity 3,100,000 $ 1,153,921 $ 37% 4,603,921 $ 1,503,921 $ Over Budget Fleet Replacement Program 2,810,000 $ 271,330 $ 10% 4,002,665 $ 1,192,665 $ Over Budget Class 4000 breakout - Distribution Feeder Lines 2,750,000 $ 460,670 $ 17% 2,703,670 $ (46,330) $ Under Budget 10.13 Firewall Replacements 2,653,132 $ 7,932 $ 930,932 $ (1,722,200) $ Under Budget 9.1 Access Control and Video Management System 2,267,056 $ 24,835 $ 1% 1,074,835 $ (1,192,221) $ Under Budget Mountain View Lineups 10 & 20 2,193,566 $ 1,296,238 $ 59% 2,196,238 $ 2,672 $ Over Budget 11.1 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

Grant PUD | BUDGET TO ACTUALS Q1 2019

O&M Capital Labor Benefits* Capitalized G&A Inventory 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 Variance Under Budget / Over Budget O&M 123,312,247 $ 125,322,125 $ 2,009,878 $ Over Budget Capital 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

Grant PUD | BUDGET TO ACTUALS Q1 2019

5/9/2019 8

Questions?

2019 Semi-Annual Audit Report Commission

5/ 14/ 2019 GCPUD Int ernal Audit Depart ment 1

Meeting Objectives

• 1. Current State of Audit Department
• 2. Moving Forward
• 3. 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 Audits

1.

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 Plan

Key Focus Areas for Audit Activities Planned Assurance Audits

• 1. 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 2021

2018 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 Audit Wholesale Marketing Supply Audit Power Production Audit Net Metered Loss Audit Generation to BA Load Customer Request /Metering/ Billing of Kwh Usage Emerging Risks, Trends, and Focus Emerging Risks, Trends, and Focus Emerging Risks, Trends, and Focus Follow-Up: Monitor Audit Recommendations Follow-Up: Monitor Audit Recommendations Follow-Up: Monitor Audit Recommendations Continuous Monitoring Audits Risk Based Assurance Audits 2018 Voucher Audit Emphasis on PO's and Procurement Process

Three Year Audit Plan

Approved 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 Tot al Labor O&M Travel and Training

9

Questions? Comments? Concerns?

10

2019 Federal and State Legislative Update

May 14, 2019 Commission Presentation

Federal Priority Issues 116th 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 Issues

2019 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.

Safety Bid Limits Wildfires

 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 Interest

2019 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.