Enterprise Technology Plan – Customer Care & Billing (CC&B) Upgrade Powering our way of life. May 14, 2019
Enterprise Technology Plan
CC&B Upgrade Grant PUD’s Options Outcome Customer Care Do Nothing CC&B (version 2.4) would be and Billing unsupported post 10/2020 (CC&B) system Replace CC&B with a new Customer Significant costs, significant internal requires an Information System (CIS) resources, significant organizational upgrade by change management October 2020 and staff has Continue CC&B (on premise) and Short-run option as CC&B will analyzed the upgrade to next version eventually be replaced with Oracle’s options: current utilities platform Upgrade to Oracle’s Customer Combines the power of utility Cloud Services (CCS), a cloud meter-to cash solutions with the based platform, software as a scale, agility, and simplicity of the service (SaaS) 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 Implementation Cost CCS Implementation Cost Nov 2013 – Feb 2015 Jul 2019 – Jun 2020 (tentative) 16 month project 12 month project 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 130-9537 7-year total $6.4M • Cloud Services • $3.1M • System Implementation • $3.3M TMG Professional Services 430-9096 Up to $500,000 Assessment and Project Management
Cost/Benefit Analysis Summary 10 Yr Results 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 2019 DIRECTS YEAR-END PROJECTION OVERVIEW % of YEP Under 2019 Year-End 2019 Budget 2019 YTD Annual YEP Variance $ Variance Budget / Projection 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 • 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. 5/9/2019 2
Grant PUD | BUDGET TO ACTUALS Q1 2019 2019 DIRECT O&M BY FUNCTIONAL AREA Direct O&M by Group 2019 Direct O&M YTD % of YEP Under 2019 Year End YEP Variance Department Functional Area 2019 Budget 2019 YTD Annual Variance Budget / Projection $ 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 • 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. 5/9/2019 3
Grant PUD | BUDGET TO ACTUALS Q1 2019 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 4
Grant PUD | BUDGET TO ACTUALS Q1 2019 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 5
Recommend
More recommend
