Energizing Stakeholders:

Transcription

1 Energizing Stakeholders: How PNM Resources Amped Up Project Management to Comply with Government Regulations PNM Resources Carter Cherry, Director, Supply Chain & General Services Evelin Wheeler, Executive Director, Planning, Strategy, Analysis & Generation Camille Lovato, Group Manager DENVER FALL 2014 SU MMIT

2 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing How? Option 1: App 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session 5. Scroll to Description 6. Click on the Evaluation link Option 2: Browser 1. Go to 2. Select Session (#ws10) DENVER FALL 2014 SU MMIT

3 Energizing Stakeholders: How PNM Resources Amped up Project Management to Comply with Government Regulations CARTER CHERRY, EVELIN WHEELER, CAMILLE A. LOVATO OCTOBER 11, 2014

4 PRESENTERS Carter Cherry Director, Supply Chain Carter is responsible for sourcing, purchasing, warehouse, fleet operations, facilities, corporate real estate, asset recovery, mail, security and business continuity for the enterprise. Carter has led PNMR s supply chain organization for 5 ½ years and prior to that led the sourcing organization for 3 years. Evelin Wheeler - Executive Director, Generation Development - Ms. Wheeler is a strategic leader with broad industry experience including, finance, budgeting, strategic planning, technology development and operations. In her current role, she is responsible for developing renewable plants, fossil-fuel generating plants and coal-fired retrofit projects. In the past two years, she has negotiated over $1 billion in contracts. Camille A. Lovato - Group Manager, Supply Chain - Camille has over 15 years of public and government sourcing experience including project management, strategic planning, and operations. While at PNM she has been responsible for leading complex sourcing initiatives including renewable generation technology, construction and compliance initiatives. SLIDE 4

5 PNM Resources Overview NYSE Ticker PNM Market Cap $2B PNM Resources is a regulated electric utility holding company focused on providing a top quartile total return to shareholders Generation Resources and Service Territories Energy holding company Based in Albuquerque, New Mexico Located in New Mexico 509,879 customers 14,707 miles transmission and distribution lines 2,572 MW generation capacity Top quartile reliability Affordable rates Located in Texas 236,399 end-users 9,137 miles transmission and distribution lines Top quartile reliability Affordable rates

6 PNM RESOURCES SUPPLY CHAIN OVERVIEW Supply Chain currently includes: sourcing, warehouse fleet, general services (security, business continuity, mail/graphics, facilities and real estate) Three distinct sourcing groups that support the business: Generation Transmission & Distribution Corporate Services SLIDE 6

7 AGENDA ENERGIZING STAKEHOLDERS: HOW PNM RESOURCES AMPED UP PROJECT MANAGEMENT TO COMPLY WITH GOVERNMENT REGULATIONS How the team developed creative project plans to manage requirements, while following internal processes. How procurement achieved stakeholder buy- in and maintained their seat at the table What happened after the agreement was signed, sealed and delivered How PNM managed multiple internal stakeholders including Risk and Legal parties to meet critical schedule requirements SLIDE 7

8 PROJECT OVERVIEW Scope Install selective non-catalytic reduction (SNCR) emission control technology on two units at the San Juan Coal-fired Generating Station and convert these units to balanced draft operation. Schedule Project began February, 2014 Scheduled finish January, 2016 Cost Estimated at $150 million SLIDE 8

9 PROJECT OVERVIEW--SNCR SLIDE 9

10 PROJECT OVERVIEW BALANCED DRAFT CONVERSION San Juan Generation Station, Waterflow, NM SLIDE 10

11 PROJECT SCHEDULE Project Initiated Owners Approvals Unit 1 Unit 4 Project Design & Engr Unit 1 Unit 4 Construction Mobilize at SJGS Unit 1 balanced draft Unit 4 balanced draft SNCR Construction Performance Testing Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SLIDE 11

12 HOW PROCUREMENT ACHIEVED STAKEHOLDER BUY-IN AND MAINTAINED THEIR SEAT AT THE TABLE Be the Sourcing Expert Understand scope, and customer needs including schedules, impacts and timeframes Communicate and over communicate (good and bad) Deliver results and value add services Document sourcing activities SLIDE 12

13 HOW PNM MANAGED MULTIPLE INTERNAL STAKEHOLDERS TO MEET CRITICAL SCHEDULE REQUIREMENTS Achieve stakeholder engagement Use existing tools and create tools and templates Talk to other companies Review and document project plan (include input and output from internal stakeholders) SLIDE 13

14 CREATIVE PROJECT PLANS TO MANAGE REQUIREMENTS Keep it simple Value (A=Actual, Issue Contract Suspension Package Type of Contract Contract Type Bidders E=Estimated) Specification Issue RFP Bids Due Award Date Awardee Date Signed Requisition notice 1 Documentation Services stand-alone Aconex (sole source) Complete N/A Aconex n/a 2 Consulting Services stand-alone Tricon (Sole source) Complete Tricon suspended 3 Design Engineer Services Master S&L (Sole Source) Dec-13 S&L 2/14/2014 scope chg 4 SNCR Design/Furnish FuelTech, Steag $4,600,000 A 5/20/2013 Steag 11/15/2013 Contract Number/Contract Req Contract Type Modified PO Modified PO Constraints/Issues Event Responsible Due Date Delierable Date See Procurement 18 & 19 Tab 18 - Ductwork and Expansion Joints Unit 1 See Procurement 18 & 19 Tab 19 - Structural Steel Unit 1 Refine Bid List Mike Patscheck 1/10/2014 1/15/2014 Gail Chambliss/Mary Financial Analysis Rose 1/23/2014 1/23/2014 Analyze Financial Analysis Camille A. Lovato 1/30/2014 1/30/2014 Consolidate PO Comments Camille A. Lovato 1/28/2014 1/30/2014 Original Due Date S&L for Ductwork Tech Specification 2/6/2014 Scope of Work #18 2/6/2014 3/5/2014 SLIDE 14

15 WHAT HAPPENS AFTER THE AGREEMENT WAS SIGNED SEALED AND DELIVERED Maintain relationships Utilize and develop tools Communication preparation No one size fits all SLIDE 15

16 THANK YOU Carter Cherry (505) Evelin Wheeler (505) Camille Lovato (505) SLIDE 16

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18 Session #WS10 Energizing Stakeholders: How PNM Resources Amped Up Project Management to Comply with Government Regulations Carter Cherry (505) Evelin Wheeler (505) Camille Lovato (505) DENVER FALL 2014 SU MMIT