2016 Budget Review Process (BRP) Preliminary List of Business Initiatives Stakeholder Meeting

2016 Budget Review Process (BRP)
Preliminary List of Business Initiatives
Stakeholder Meeting
September 21, 2015
Agenda
• The 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 2016. Obtain initial
feedback.
2
2016 BRP - Steps
Status Update
Step
Activity
1.0 Invitation to Stakeholders Initiate annual consultation process
2.0 AESO Business
Initiatives
Present preliminary list of business initiatives and solicit
stakeholder feedback
3.0 Develop Own, Ancillary
Service and Line Loss
Forecasts
Develop Own Costs (G&A/Capital/Other Industry) budget,
Ancillary Services and Line Loss Cost forecasts
4.0 Technical Review
Meeting
Present and solicit feedback on Own Costs budget,
Ancillary Services and Transmission Line Loss Cost
forecasts
5.0 AESO Board Decision
Draft AESO Board Decision Document
AESO Board meets with stakeholders to discuss issues
AESO Board issues final decision
6.0 Dispute Process
Available for instances where stakeholder disagrees with
the AESO Board Decision
3
2016 BRP - Steps
Calendar (revised)
3.0 Develop AESO Own Costs,
Ancillary Service and Line Loss
Forecasts (internal)
June - September
1.0 Notice to Stakeholders
2.0 Updated Business Initiatives
5.0 AESO Board Decision
November 20 – Stakeholder presentations
AESO Board
Decision
4.0 Technical Review
Meetings with Stakeholders
September 21 - Business Initiatives
October 5 (Calgary) and October 7 (Edmonton) Ancillary Service, Transmission Line Losses Costs
Forecast and Own Costs
5.0 AESO Board Decision
(continued) - finalize
4
BRP Participants
Confirmed Stakeholders
• The following stakeholders have confirmed their participation
in the 2016 BRP :
– Alberta Direct Connect (ADC)
– AltaLink
– Arctic Institute of North America (ANIA) and International Energy,
Environment and Legal Services Ltd. (IEELS)
– ATCO Electric
– Capital Power Corporation
– EnerNOC
– Industrial Power Consumers Association of Alberta (IPCAA)
– TransCanada Corporation
– TransAlta Corporation
– Utilities Consumer Advocate
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Preliminary List of Business Initiatives
Process to date
• Steps
– Strategic Objectives defined - Appendix I
– 2015 business initiatives review - Appendix II
– Develop preliminary list of 2016 business initiatives for consultation
• Results
– Strategic Objectives (no changes from prior year – 5yr plan)
•
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 2015 business initiative progress and 2016 plans
follows
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Business Initiatives – Review
Progress Highlights against 2015 Plan
Strategic Objective
Strategic Objective
1 - Framework
2 - Value
• Energy storage – recommendation paper
completed
• Abbreviated Need Approval Rule approved
• TCM – implementing system and operating
procedure revisions supporting new Rule
• Interties - implemented new LSSi contracts;
revised operating limits
• Reliability Coordinator (RC) type ARS
implemented; Operations engineering
studies completed; NERC assessment to
be completed Q4
• MSR Phase III – (Implementation) design and
consultation ongoing
• Revised Technical Standards program in
progress
• Competitive Process – Fort McMurrary West
project awarded (Alberta Powerline Ltd.),
integration activities underway
• ARS CIP/Cyber security advancements
ongoing
• Cost Oversight Management pilot completed;
Enhancing Rule 9.1 Business Practices
• Market Participant Choice operationalized
• EMS Phase III – Implementation
consultation completed; Board decision
received consistent with recommendation
• HVDC Operations – Preparation in
progress; Supporting TFO commissioning
activities
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Strategic Objective 1 – FRAMEWORK
Note - New initiatives identified in red text
Business Initiative
Expected Achievement 2015
Plan 2016
Market Systems Replacement
Market Systems Replacement and Reengineering
Design (Iteration I - definition)
Implementation (Iteration I - build)
Storage Technology Integration
Consult, Design
Consult, Design, Implementation
Framework monitoring and ongoing assessment of
stability
Design, Implementation
Design, Implementation
Market Evolution
Voluntary Extended Generator Withdrawal from Energy
Consult
Market Merit Order
Consult, Design, Implementation
Major Projects
Intertie Restoration
Implementation (Frequency Response review, Product
Implementation (MATL converter or equivalent NID,
and Procurement review, ATC rule review, Regulating
OR products, ATC rule considerations)
Reserve review, new LSSi contracts )
CP Integration
Design, Implementation (contract management)
Implementation
Consult, Design, Implementation
Consult, Design, Implementation
Cost Accountability
Rule 9.1 Practices
8
Strategic Objective 2 – VALUE
Note - New initiatives identified in red text
Business Initiative
Expected Achievement 2015
Plan 2016
Reliability Program
Energy Management System (EMS) Upgrade
Design (Phase III - definition),
Implementation (Phase III)
Implementation (Phase III)
SCADA/Wide Area Network Implementation
Design, Implementation
Implementation
System Control Centre (SCC) Facility Expansion
Design (planning activities)
Design, Implementation (RFP,
permit applications)
Security / Critical Infrastructure Protection Standards (CIP) Program
Alberta Reliability Standards (CIP) implementation program
Design(develop), Implementation
Design(develop), Implementation
IT and Cyber Security advancements
Design(develop), Implementation
Design(develop), Implementation
Process and Efficiency Improvements
Perform ongoing reviews of processes and information
technologies to determine business efficiency opportunities Design, Implementation
(annually)
Design, Implementation
AESO Website Refresh
Implementation
Design
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Strategic Objective 3 – PEOPLE
Note - New initiatives identified in red text
Business Initiative
Expected Achievement 2015
Plan 2016
Continue to progress the maturity level of our Human Resources processes
Continue to advance the Integrated Talent Management
program
Program development of cross functional practice and
learning opportunities
Implementation (2015-18 HR
Strategy and Roadmap)
Implementation( Promote lateral
career approach)
Enhance learning and development programs to meet future
Design, Implementation
needs as identified in strategic plan
Implementation
Implementation
Implementation
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Planning Uncertainty
Items that may impact identified initiatives
There is some uncertainty related to the AESO’s business
initiatives for 2016.
• Transmission Planning
– AESO’s Long Term Outlook (LTO) to be completed Q1 2016
• Competitive Process
– Fort McMurray East competition process initiation date is LTO
dependent
• Climate Change
– Dependent on current Alberta government process ongoing
AESO 2016 budget may need to be adjusted for the impacts
for these initiatives as they will not be reflected in the AESO’s
2016 budget.
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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
Strategic Objective 1 – FRAMEWORK
Note - New initiatives identified in red text
Business Initiative
Expected Achievement 2014
Plan 2015
System Performance
Intertie restoration
Implementation of phase I operating
horizon transmission studies (OHTS)
Continue implementation, monitor
results; Phase II OHTS studies
and report on results
commenced, joint ; BCHydro study
completed
Storage integration
Consult
Design, rules development
Frequency response validation ; Align Rules & practices
Consult, Design
Implementation
Market Evolution
Transmission Constraints Management (TCM) revisions (AUC
direction)
Framework monitoring and ongoing assessment of stability
Market Systems Replacement
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
Initiate Competitive Process for Fort McMurray East
Prepare for implementation
Implementation
Competitive Process integration for Fort McMurray West
Design
Design, Implementation (i.e.
contract management)
Amend ISO Rule 9.1 - Transmission Facility Projects (Rule 9.1)
Implement changes
Implementation
Review and develop related business practices
Consultation, Design
Implementation
Market Systems Replacement and Reengineering (Phase III Implementation)
Major Projects
Transmission Cost Monitoring
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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
Consult, Design, Implementation
Implementation (TBD)
Market Participant Choice
Enterprise Wide Customer Service Strategy Implementation
Consult, Design, Implementation
Implementation (TBD)
Scheduled deliverables (roadmap)
implemented
N/A
Implementation of EMS revised
strategy roadmap
Design, Initiate implementation
Consult, Design, Implementation
N/A
Implementation
Design, 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
Transmission Program
Intertie, Metering, AS, Generator,
Load, Sub and TX Line
Operating procedure revisions
HVDC (high voltage direct current) operations
progressed, training program
initiated and review loss calculations
Security / Critical Infrastructure Protection Standards (CIP) Program
Plan, design/develop and
IT and Cyber Security advancements
implementation
Process and Efficiency Improvements
Perform ongoing reviews of activities, processes and
information technologies to determine where business
Design, Implementation
efficiencies can be realized (annually 2014 - ongoing)
AESO Website Refresh
N/A
Revised Technical Standards Program
Implementation
Implementation
Design, Implementation
Design, Implementation
Design
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Strategic Objective 3 – PEOPLE
Note - New initiatives identified in red text
Business Initiative
Expected Achievement 2014
Plan 2015
Continue to progress the maturity level of our Human Resources processes
Continue to advance the Integrated Talent Management
program
Organizational Effectiveness and Agility
Implement roadmap
Effective knowledge transfer for critical roles with ageing
demographics supported by the Retirement Transition
Implementation
program
Development of talent and skills to increase our ability to
Design
adapt to changing needs
Build external partnerships to create and enhance talent
N/A
networks
Implementation and integration
of AESO Connect
Implementation
Implementation
Design
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Thank you