Presentation on theme: "2015 Budget Review Process (BRP) Preliminary List of Business Initiatives Stakeholder Meeting September 22, 2014."— Presentation transcript:
2015 Budget Review Process (BRP) Preliminary List of Business Initiatives Stakeholder Meeting September 22, 2014
Agenda Purpose of this presentation is to: –Provide stakeholders with a BRP status update –Provide stakeholders with an overview of the AESO’s preliminary list of business initiatives for Obtain initial feedback. 2
2015 BRP - Steps Status Update 3 StepActivity 1.0Invitation to StakeholdersInitiate annual consultation process 2.0AESO Business Initiatives Present preliminary list of business initiatives and solicit stakeholder feedback 3.0Develop Own, Ancillary Service and Line Loss Forecasts Develop Own Costs (G&A/Capital/Other Industry) budget, Ancillary Services and Line Loss Cost forecasts 4.0Technical Review Meeting Present and solicit feedback on Own Costs budget, Ancillary Services and Transmission Line Loss Cost forecasts 5.0AESO Board DecisionDraft AESO Board Decision Document AESO Board meets with stakeholders to discuss issues AESO Board issues final decision 6.0Dispute ProcessAvailable for instances where stakeholder disagrees with the AESO Board Decision
2015 BRP - Steps Calendar (revised) Develop AESO Own Costs, Ancillary Service and Line Loss Forecasts (internal) June - September 4.0 Technical Review Meetings with Stakeholders September 22 - Business Initiatives October 6 (Calgary) and October 8 (Edmonton) - Ancillary Service, Transmission Line Losses Costs Forecast and Own Costs AESO Board Decision 5.0 AESO Board Decision November 14 – Stakeholder presentations 1.0 Notice to Stakeholders 2.0 Updated Business Initiatives 5.0 AESO Board Decision (continued) - finalize
BRP Participants Confirmed Stakeholders 5 Alberta Direct Connect (ADC) AltaLink ATCO Electric BP Canada Energy Group Capital Power Corporation EnerNOC Industrial Power Consumers Association of Alberta (IPCAA) Market Surveillance Administrator TransCanada The following stakeholders have confirmed their participation in the 2015 BRP:
Preliminary List of Business Initiatives Process to date Steps Strategic Objectives defined - Appendix I 2014 business initiatives review - Appendix II Develop preliminary list of 2015 business initiatives for consultation Results Strategic Objectives simplified (8 to 3) Strategic Objective 1- FRAMEWORK Strategic Objective 2 - VALUE Strategic Objective 3 – PEOPLE AESO’s business initiatives continue to be multi-year in nature An update on 2014 business initiative progress and 2015 plans follows 6
Reliability Coordinator Function (RC) – RC functionality for Alberta now being performed by the ISO Alberta Reliability Standards (ARS) - Continued implementation of standards; Alberta CIP version 5 standards expected to be filed by year end Wind Phase II – Major milestones completed Demand Side Participation – LSSi assessment review completed; Rules expected to be in place to allow non-aggregated load to provide spinning reserve by year end Transmission Constraints Management – Recommendation paper posted; Rule expected to be filed by year end Market Systems Replacement – Request for proposal (RFP) phase including recommendation expected to be completed by year end 2014 Business Initiatives – Review Progress highlights against 2014 plan Compliance Monitoring – Outstanding ARS audits completed; Program revised and new audits concluded on or before target (120 day window) Competitive Process – Successful RFP bidder for Fort McMurray W. expected to be selected by year end Transmission Cost Monitoring - ISO Rule 9.1 revision ongoing; revised Rules expected to be filed by Q Transmission Development – System reinforcement (regional projects) and ongoing connections Customer Connection cycle times –T-Reg amendments legislated and revised process options are in development (e.g. Market Participant Choice & Abbreviated Needs Approval Process) Transmission Rate and Impact – Long term transmission rate impact projection updated and posted (with accompanying fact sheet) 7 Q Financial Report - provides a complete initiative update Following are status updates on various initiatives outlined in the 2014 business plan:
Strategic Objective 1 – FRAMEWORK Note - New initiatives identified in red text 8 Business InitiativeExpected Achievement 2014Plan 2015 System Performance Intertie restoration Implementation of phase I operating horizon transmission studies (OHTS) results; Phase II OHTS studies commenced, joint ; BCHydro study completed Continue implementation, monitor and report on results Storage integrationConsultDesign, rules development Frequency response validation ; Align Rules & practicesConsult, DesignImplementation Market Evolution Transmission Constraints Management (TCM) revisions (AUC direction)Consult, design and file rule with AUCImplementation Framework monitoring and ongoing assessment of stabilityDesign, Implementation Market Systems Replacement Market Systems Replacement and Reengineering (Phase III - Implementation) Complete Phase II (complete RFP phase & develop go/ no go recommendation); Receive Board decision Initiate implementation Major Projects Initiate Competitive Process for Fort McMurray EastPrepare for implementationImplementation Competitive Process integration for Fort McMurray WestDesignDesign, Implementation (i.e. contract management) Transmission Cost Monitoring Amend ISO Rule Transmission Facility Projects (Rule 9.1)Implement changesImplementation Review and develop related business practicesConsultation, DesignImplementation
Strategic Objective 2 – VALUE Note - New initiatives identified in red text 9 Business InitiativeExpected Achievement 2014Plan 2015 Connection Process Efficiency Opportunities Abbreviated Need Approval ProcessConsult, Design, ImplementationImplementation (TBD) Market Participant ChoiceConsult, Design, ImplementationImplementation (TBD) Enterprise Wide Customer Service Strategy Implementation Implement 3-5 year customer service program (per roadmap)Scheduled deliverables (roadmap) implementedN/A Energy Management System Energy Management System (EMS) UpgradeImplementation of EMS revised strategy roadmapDesign, Initiate implementation Reliability Coordinator (RC) Program Implement RC type Alberta Reliability StandardsConsult, Design, ImplementationImplementation NERC operational assessmentN/ADesign, Implementation Transmission Program Revised Technical Standards Program Intertie, Metering, AS, Generator, Load, Sub and TX Line Implementation HVDC (high voltage direct current) operations Operating procedure revisions progressed, training program initiated and review loss calculations Implementation Security / Critical Infrastructure Protection Standards (CIP) Program Alberta Reliability Standards (CIP) implementation programDesign (Development of reliability standards)Initiate implementation IT and Cyber Security advancementsPlan, design/develop and implementationDesign, Implementation Process and Efficiency Improvements Perform ongoing reviews of activities, processes and information technologies to determine where business efficiencies can be realized (annually ongoing) Design, Implementation AESO Website RefreshN/ADesign
Strategic Objective 3 – PEOPLE Note - New initiatives identified in red text 10 Business InitiativeExpected Achievement 2014Plan 2015 Continue to progress the maturity level of our Human Resources processes Continue to advance the Integrated Talent Management programImplement roadmap Implementation and integration of AESO Connect Organizational Effectiveness and Agility Effective knowledge transfer for critical roles with ageing demographics supported by the Retirement Transition program Implementation Development of talent and skills to increase our ability to adapt to changing needsDesignImplementation Build external partnerships to create and enhance talent networksN/ADesign
AESO Strategies – Plan Strategic Objective 1 – FRAMEWORK: We will enable Albertans to continue to realize the value provided by robust competition and reliable operations, while providing our stakeholders with confidence to invest in the province as we guide the evolution of the electricity framework. Strategic Objective 2 – VALUE: We will drive value throughout all that we do in the execution of our mandate by maintaining focus, striving for exceptional delivery, and upholding high standards of excellence while being adaptable to change. Strategic Objective 3 – PEOPLE: We will continue to strengthen our workforce capacity and talent to enable the AESO to meet the changing needs of the organization.
2014 Business Initiatives – Review Strategic Objective2014 Business Initiatives 1. Market Development Continue to consult on, design and implement Rules, tools and products for: wind integration phase II (long term); interties (restoration, merchant transmission integration, dynamic scheduling, jurisdictional seams issues, planning policy and criteria); demand response (load as spinning reserve); energy storage; market evolution (e.g. OR market review, transmission constraints management (TCM) revisions and TCM metrics); market system replacement project. 2.Electric System DevelopmentUpdate of Long Term Plan; Implement the Long Term Plan by advancing Regional and System projects; Implement the Competitive Process; Implement Transmission Cost Management recommendations.
2014 Business Initiatives – Review Strategic Objective2014 Business Initiatives 3.Customer Access Services Implement customer service enhancements: Reduce Customer Connection cycle time by implementing initiatives including the abbreviated need identification approval process, market participant choice and connection process enhancements; Implement enterprise wide customer service strategy (i.e. project and ongoing services). 4. Electric System OperationsIntegration of new rules, transmission requirements and technologies: Reliability programs (EMS infrastructure/application upgrades); Reliability Coordinator (requirements for AESO to perform RC function); Transmission programs (integration of new transmission facilities and HVDC preparation); Security/Critical Infrastructure Protection programs (Assessment and ARS implementation program); Physical facilities program.
2014 Business Initiatives – Review Strategic Objective2014 Business Initiatives 5.Enabling our Core Business Areas through our People Continued development of internal talent management resource strategy to attract and retain quality staff. 6.Enabling our Core Business Areas through Technology Establish high performing integrated business systems and supporting business infrastructure that adapts to business process and needs (lifecycle, capability and cyber security advancements). Provide Customers with access to business relevant solutions that are timely and secure (e.g. document management/collaboration program and PI 2 upgrade). 7.Enabling Our Core Business Areas by Engaging our Stakeholders AIES outreach program assessment and development. Continue refinement and implementation of AESO’s public outreach plan. 8. Enabling our Core Business Areas through Risk Management and Compliance Initiative complete and embedded into operational process. 2 OSI Soft software