Transcript Slide 1

Project Management in the Natural Gas Utility Industry
Gil Soto
Vice President – Operations
Mobile Gas
February 27, 2013
Sempra Energy Overview
Fortune 500 company
► 2011 Revenues: $10 billion
► 17,500 employees serving more
than 31 million customers worldwide
►
California
Utilities
Global
Infrastructure
San Diego
Gas & Electric
Southern California
Gas Co
Sempra
International
• 3.5 million customers
• 4,100 square mile
service territory
• Largest US gas utility
• 20.7 million
customers
• 20,000 square mile
service territory
• Gas/Power Utilities in
Latin America
• Gas Pipelines in
Mexico
• LNG
Sempra U.S.
Gas & Power
• US Natural gas
infrastructure
• Renewable electric
generation
• Southeast gas
distribution assets
• Commodity services
California Utilities
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SDG&E
– Provider of electric and
natural gas services
– 3.5 million consumers
– 4,100 square miles of service
territory
– 2.3 million electric & gas
meters
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SoCalGas
– Provider of natural gas
services
– 20.9 million consumers
– 20,000 square miles of
service territory
– 5.8 million gas meters
Sempra International - Mexico
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Sempra is the largest private energy
investor in Mexico
Operations
– LNG regasification
– Combined cycle power plant
– Natural gas Pipelines
– Propane pipeline
– Natural gas distribution
Five natural gas pipelines
interconnecting with the U.S.
Sempra International – South America
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Luz Del Sur
– Electric utility serving eastern,
central and southern Lima
– Over 930,000 customers
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Chiliquinta Energia
– Electric distribution company
serving greater Valparaiso and
Vina Del Mar area
– Over 610,000 customers
Sempra U.S. Gas & Power Footprint
Mobile Gas
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Continuous operations since 1836
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Approx. 89,000 customers in Mobile
and Baldwin counties in southwest
Alabama
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Diversified customer base, including
residential, small and large commercial
and industrial customers
Gil Soto
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30 years of natural gas distribution experience
Worked many of the different field positions
Worked many of the different manager/supervisor positions
Worked with the Southern Cal Gas Company
Work with the Sempra International group
Currently working under the USG&P group
• And currently working for Mobile Gas
• Earned a bachelor’s degree and an MBA
• Honorably discharged from the U.S. Marine Corps Reserves
• Worked on many company teams, projects and initiatives, not only in gas
distribution, but also with IT, labor relations, safety, and many other areas
Regulatory Agencies
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U.S. Department of Labor’s Occupational Safety and Health
Administration (OSHA)
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U.S. Department of Transportation (DOT)
• Pipeline and Hazardous Materials Safety Administration
(PHMSA)
• Enforcement – Alabama Public Service Commission, Pipeline
Safety Division (APSC)
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49 CFR(Code of Federal Regulations) Part 192
• Part 192 – Guidelines
49 CFR Part 192
Part 192
• Subpart (1970)
A – General
B – Materials
C – Pipe Design
D – Design of Pipeline Components
E – Welding of Steel in Pipelines
F – Joining of Materials Other Than by Welding
G – General Construction Requirements for Transmission Line and Mains
H – Customer Meters, Service Regulators and Service Lines
I – Requirements for Corrosion Control
J – Test Requirements
K – Up-rating
L – Operations
M – Maintenance
N – Qualification of Pipeline Personnel (1999)
O – Gas Transmission Pipeline Integrity Management (2003)
P – Gas Distribution Pipeline Integrity Management (2009)
Project Management (Scope)
Basic Main and Service Line Replacement Projects
 First item is to create a clearly identified project scope
• An average local distribution company job is about 2 miles (@ 10,560
feet) of mainline with about 150-200 service lines
• Identify requirements for the project
• Permits (city, state, railroad. etc.), right of ways, special materials and
equipment, substructure information, project schedule & goals and
others
• Special conditions and/or exceptions
• Special conditions and or exceptions that may apply to the
project include: inclement weather, work zones/times,
environmental issues, and others
Project Management (Resources)
Basic Main and Service Line Replacement Projects (continue)
 The second item is to create a resource list
• With the information obtained from your project scope and from past
history of other projects you should be able to estimate your need for
resources for the project
• Items include: people (company and contract employees), basic and
special materials & equipment and others
• As a reminder, most of these folks are working for you on this project,
but don’t actually report to you
• Communication and relationships are important
Project Management (Budget)
Basic Main and Service Line Replacement Projects (continue)
 The third item is to create an estimated project cost
• Again, with the information obtained from your project scope, past
history of other projects and your resource list you should be able to
create a good estimate for your project
• Create a line item cost sheet even if you will go out to bid for a total
price project
• Companies use different templates for cost estimating
• Some companies allow for a contingency in your budget
• Change orders and approvals
• Create final budget
Project Management (Time Management)
Basic Main and Service Line Replacement Projects (continue)
 Lastly, the PM has to create a project plan
• The plan should include tasks, schedule and if needed a critical path
• Task – Identify major task
• Schedule – How long will it take to complete the task
• Critical Path – Identify task that have to be completed before other
task can start
• I believe this is where a PM makes a name for himself or herself
• If the PM is involved with the previous steps (scope, resources, and
budget) and has prior experience then the PM should be able to create
a schedule and execute the project on time and within budget
• If the PM was not involved in any of the previous steps, it would
behoove him/her to get up to speed on the project as soon as possible
• NOTE!!! The Schedule is subject to change and often does
Project Management (Risk)
Basic Main and Service Line Replacement Projects (continue)
 Steps for risk management planning
• Identifying the risk
• Quantifying the risk – assess the probability and impact of the risk
• Respond to the risk – avoid, transfer, mitigate or accept the risk
• Monitor/Control the risk – change of status or the risk turns into an
issue
 Risk Management associated with the project
• Permits – usually a very long lead time is needed to obtain RR crossing
permits
• Materials – there may be a long lead time for special materials
• Equipment – there may be a long lead time for special equipment
• Project Scope Creep – small changes to the project, but collectively are
significant
• Schedule – Need to built in some schedule float
Project Management (Tools)
 Some identified tools to assist with project management
• Policies, processes and procedures
• Excel spreadsheets
• Microsoft Project
• Gantt Charts
• Change Orders
• Journal
• Meetings
• Check-In Points
• And many others
• Final Steps Include
• Complete documentation, obtain sign off for the project, report
project results, document lessons learned and thank those that
assisted with the project
Project Management
 Questions
Thank You