Transcript Agenda and Presentation-Preliminary List of 2015 Business
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 2015. Obtain initial feedback.
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2015 BRP - Steps Status Update
Step Activity
1.0 Invitation to Stakeholders Initiate annual consultation process 2.0 AESO Business Initiatives 3.0 Develop Own, Ancillary Service and Line Loss Forecasts 4.0 Technical Review Meeting 5.0 AESO Board Decision 6.0 Dispute Process Present preliminary list of business initiatives and solicit stakeholder feedback Develop Own Costs (G&A/Capital/Other Industry) budget, Ancillary Services and Line Loss Cost forecasts Present and solicit feedback on Own Costs budget, Ancillary Services and Transmission Line Loss Cost forecasts Draft AESO Board Decision Document AESO Board meets with stakeholders to discuss issues AESO Board issues final decision Available for instances where stakeholder disagrees with the AESO Board Decision 3
2015 BRP - Steps Calendar (revised)
1.0 Notice to Stakeholders 3.0 Develop AESO Own Costs, Ancillary Service and Line Loss Forecasts
(internal) June - September
2.0 Updated Business Initiatives 5.0 AESO Board Decision
November 14 – Stakeholder presentations
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
(continued) - finalize 4
BRP Participants Confirmed Stakeholders The following stakeholders have confirmed their participation in the 2015 BRP: • 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
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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
2014 Business Initiatives – Review Progress highlights against 2014 plan
Following are status updates on various initiatives outlined in the 2014 business plan: • • • • • • 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 • • • • • • 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 Q2 2015 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) www.aeso.ca Q2 2014 Financial Report - provides a complete initiative update 7
Strategic Objective 1 – FRAMEWORK Note New initiatives identified in red text
Business Initiative System Performance
Intertie restoration Storage integration Frequency response validation ; Align Rules & practices
Market Evolution
Transmission Constraints Management (TCM) revisions (AUC direction) Framework monitoring and ongoing assessment of stability
Market Systems Replacement
Market Systems Replacement and Reengineering (Phase III - Implementation)
Major Projects
Initiate Competitive Process for Fort McMurray East Competitive Process integration for Fort McMurray West
Transmission Cost Monitoring
Amend ISO Rule 9.1 - Transmission Facility Projects (Rule 9.1) Review and develop related business practices
Expected Achievement 2014
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 Consult Design, rules development Consult, Design Implementation Consult, design and file rule with AUC Design, Implementation Implementation Design, Implementation Complete Phase II (complete RFP phase & develop go/ no go recommendation); Receive Board decision Initiate implementation Prepare for implementation Design Implementation Design, Implementation (i.e. contract management) Implement changes Consultation, Design Implementation Implementation
Plan 2015
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Strategic Objective 2 – VALUE Note - New initiatives identified in red text
Business Initiative Expected Achievement 2014 Plan 2015 Connection Process Efficiency Opportunities
Abbreviated Need Approval Process Market Participant Choice
Enterprise Wide Customer Service Strategy Implementation
Implement 3-5 year customer service program (per roadmap)
Energy Management System
Energy Management System (EMS) Upgrade
Reliability Coordinator (RC) Program
Implement RC type Alberta Reliability Standards NERC operational assessment Consult, Design, Implementation Consult, Design, Implementation Scheduled deliverables (roadmap) implemented Implementation of EMS revised strategy roadmap Implementation (TBD) Implementation (TBD) N/A Design, Initiate implementation Consult, Design, Implementation N/A Implementation Design, Implementation
Transmission Program
Revised Technical Standards Program HVDC (high voltage direct current) operations Intertie, Metering, AS, Generator, Load, Sub and TX Line Operating procedure revisions progressed, training program initiated and review loss calculations Implementation Implementation
Security / Critical Infrastructure Protection Standards (CIP) Program
Alberta Reliability Standards (CIP) implementation program IT and Cyber Security advancements Design (Development of reliability standards) Plan, design/develop and implementation
Process and Efficiency Improvements
Perform ongoing reviews of activities, processes and information technologies to determine where business efficiencies can be realized (annually 2014 - ongoing) Design, Implementation AESO Website Refresh N/A Initiate implementation Design, Implementation Design, Implementation Design 9
Strategic Objective 3 – PEOPLE Note - New initiatives identified in red text
Business Initiative Continue to progress the maturity level of our Human Resources processes Expected Achievement 2014
Continue to advance the Integrated Talent Management program Implement roadmap
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 needs Design Build external partnerships to create and enhance talent networks N/A Implementation Implementation Design
Plan 2015
Implementation and integration of AESO Connect 10
Appendix 1
AESO Strategies – 2014-2018 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.
Appendix 2
2014 Business Initiatives – Review
Strategic Objective 1. Market Development 2. Electric System Development 2014 Business Initiatives
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Continue to consult on, design and implement Rules, tools and products for:
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wind integration phase II ( long term);
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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);
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market system replacement project.
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Update 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 Objective 3. Customer Access Services 4. Electric System Operations 2014 Business Initiatives Implement customer service enhancements:
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Reduce Customer Connection cycle time by implementing initiatives including the abbreviated need identification approval process, market participant choice and
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connection process enhancements; Implement enterprise wide customer service strategy (i.e. project and ongoing services).
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Integration of new rules, transmission requirements and technologies:
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Reliability programs (EMS infrastructure/application upgrades); Reliability Coordinator (requirements for AESO to perform RC function); Transmission programs (integration of new transmission facilities and HVDC
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preparation); Security/Critical Infrastructure Protection programs (Assessment and ARS
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implementation program); Physical facilities program.
2014 Business Initiatives – Review
Strategic Objective 5. Enabling our Core Business Areas through our People 6. Enabling our Core Business Areas through Technology 7. Enabling Our Core Business Areas by Engaging our Stakeholders 2014 Business Initiatives Continued development of internal talent management resource strategy to attract and retain quality staff. 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).
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