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.
2
2015 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
2015 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 14 – Stakeholder presentations
AESO Board
Decision
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
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
5
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
• Compliance Monitoring – Outstanding ARS audits
completed; Program revised and new audits
concluded on or before target (120 day window)
• Alberta Reliability Standards (ARS) - Continued
implementation of standards; Alberta CIP
version 5 standards expected to be filed by
year end
• Competitive Process – Successful RFP bidder for
Fort McMurray W. expected to be selected 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
• 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
Expected Achievement 2014
Plan 2015
System Performance
Intertie restoration
Implementation of phase I operating horizon
Continue implementation, monitor and report on
transmission studies (OHTS) results; Phase II OHTS
results
studies commenced, joint ; BCHydro study completed
Storage integration
Consult
Design, rules development
Frequency response validation ; Align Rules & practices
Consult, Design
Implementation
Transmission Constraints Management (TCM) revisions (AUC direction)
Consult, design and file rule with AUC
Implementation
Framework monitoring and ongoing assessment of stability
Design, Implementation
Design, Implementation
Market Evolution
Market Systems Replacement
Market Systems Replacement and Reengineering (Phase III - Implementation)
Complete Phase II (complete RFP phase & develop go/
Initiate implementation
no go recommendation); Receive Board decision
Major Projects
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
Transmission Cost Monitoring
8
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
Consult, Design, Implementation
Implementation (TBD)
Scheduled deliverables (roadmap) implemented
N/A
Implementation of EMS revised strategy roadmap
Design, Initiate implementation
Implement RC type Alberta Reliability Standards
Consult, Design, Implementation
Implementation
NERC operational assessment
N/A
Design, Implementation
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
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
Design (Development of reliability standards)
Initiate implementation
IT and Cyber Security advancements
Plan, design/develop and implementation
Design, Implementation
Process and Efficiency Improvements
Perform ongoing reviews of activities, processes and information technologies to determine
Design, Implementation
where business efficiencies can be realized (annually 2014 - ongoing)
Design, Implementation
AESO Website Refresh
Design
N/A
9
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
Implement roadmap
Implementation and integration of AESO Connect
Organizational Effectiveness and Agility
Effective knowledge transfer for critical roles with ageing demographics supported by
Implementation
the Retirement Transition program
Implementation
Development of talent and skills to increase our ability to adapt to changing needs
Design
Implementation
Build external partnerships to create and enhance talent networks
N/A
Design
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
2014 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 Development
•
•
•
•
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
2014 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 Operations
Integration 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 Objective
2014 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
2 OSI
Soft software
Initiative complete and embedded into operational process.
Thank you