2018 General Rate Case

Transcription

1 Application No.: A.1-0- Exhibit No.: SCE-0, Vol. A Witnesses: J. Kelly D. Bauder D. Bernaudo T. Boucher J. Castleberry T. Condit G. Haddox T. Inlander P. Joseph J. Kelly D. Kempf J. Lim S. Nagoshi D. Pierce M. Provenzano J.P. Shotwell J. Tran (U -E) 01 General Rate Case ERRATA Information Technology (IT) Volume Capitalized Software Before the Public Utilities Commission of the State of California Rosemead, California September 1, 01

2 SCE-0: Information Technology Volume Capitalized Software Table Of Contents Section Page Witness I. INTRODUCTION...1 T. Inlander A. Summary of SCE s Capitalized Software Request...1 B. Compliance Requirements...1 J. Kelly C. 01 Authorized versus Recorded... D. Capitalized Software Estimation... II. OPERATING SYSTEM SOFTWARE... M. Provenzano A. Operating System Software Project Description.... Need for the Project... a) Business requirements.... Scope and Cost Forecast...11 a) Recorded Expenditures...11 b) Forecast Expenditures...1 III. CYBERSECURITY & IT COMPLIANCE...1 G. Haddox A. Perimeter Defense Program Description...1. Need for Program...1. Scope and Cost Forecast...0 B. Interior Defense Program Description...1. Need for Program...1. Scope and Cost Forecast... C. Data Protection... -i-

3 C. 01 Authorized versus Recorded Figure I-1 01 Requested, Authorized and Recorded (Constant 01 $000) ($1,) $1, 00,000 10,000 $1,1 $1, $0 $,1 ($1,) $1,00 10,000 10,000 10, ,000 0,000 0,000 0,000 0, Request 01 Authorized Cybersecurity Variance Enterprise & Operating Software Variance OU Capitalized Software Variance Cybersecurity & Compliance Enterprise & Operating Software OU Capitalized Software 01 Recorded As shown in Figure I-1, SCE s overall capital expenditures were approximately $ million below the Commission s 01 authorized level. SCE manages our portfolio of capitalized software work in consideration of available resources, competing business priorities, and technology deployment strategies. In 01, SCE invested more in enterprise and operating system software to make needed upgrades to our server, storage, and desktop operating systems environments prior to vendor-published end-of-life support for Microsoft, Cisco, and VMware Enterprise License Agreements, and in preparation for our migration to Microsoft Office. Additionally, SCE underspent its authorized levels for OU capitalized software. This was largely due to the deferral of the Customer Data Warehouse Refer to WP SCE-0, Vol. Bk A pp. -.

4 b) Need for Project Customers are becoming more technologically savvy and expect to be able to complete day-to-day transactions online themselves such as receiving and paying bills, turning service on and off, and accessing news and information. Easily transacting with their electricity provider should be no exception. Failed digital transactions result in dissatisfied customers and, more often than not, a higher-cost transaction to SCE. Part of the Customer Service Strategy is to make it easy for customers to use channels like digital. Enabling and optimizing digital features allow customers to self-serve at their convenience. When a digital transaction is properly designed and reliably built, it will shift and maintain volume to the digital channel, meeting basic customer needs and leading to higher customer satisfaction. Mobile devices are driving the growth in the digital marketplace, and the transition to mobile is affecting how SCE designs our future digital interactions with our customers and how we provide that service on their preferred channels. Sixty-five percent of smartphone users say paying and receiving bills on a smartphone increases their satisfaction. On SCE.com, over 0% of our traffic today is generated by mobile devices and is forecast to grow to 0% by For SCE to meet customer expectations we must develop solutions that work on mobile devices and make completing transactions secure and easy. c) Scope The scope of this project will leverage the enhancements established by the WebSphere Platform discussed in the SCE.com Upgrade project. The project scope includes an integrated set of solutions: Device Support, Electronic Billing and Payment transactions, Security and Authentication, and Website Functionality Improvements. These project scope components are discussed below. Refer to WP SCE-0, Vol. Bk B pp. -. Refer to WP SCE-0, Vol. C pp Refer to WP SCE-0, Vol. Bk B pp. -0. Eric Leiserson, Mobile Billing and Payment: Consumer Preferences and Billers Strategic Response, Fiserv, p. 1. Refer to WP SCE-0, Vol. Bk B pp. 0.a - 0.b 0 Refer to WP SCE-0, Ch. VII-X, p. 1.

5 databases are used by planners, project managers, and Resource Planning and Performance Management (RPPM) to track the status of work order tasks (e.g., planner-related tasks such as design and permitting), key work-order dates (e.g., customer commitment, regulatory compliance dates, and material delivery dates), and contractor crew scheduling status, among other tasks. The current tools and processes have the following issues: There is not a comprehensive view of T&D s construction and maintenance work, requiring multiple tools to gather and reconcile resources and work status. Resource forecasting and demand management across all T&D capital and O&M work is therefore manually intensive. The current independent trackers have no automated work management capabilities, are not integrated with core systems such as Design Manager, SAP or Click Schedule, and require employees to manage work in multiple systems. This results in extensive duplicative data entry, as the same data fields are entered into multiple trackers. This manual process of redundant data entry can cause data quality and accuracy issues. The siloed tools are not developed according to standards and are difficult to maintain. They are prone to lock up and crash, which results in lost time while the system and data are restored. (1) Benefits The WM Dashboard provides an integrated system that will update automatically to address the current data quality and accuracy issues, while eliminating duplicate data entry. The WM Dashboard will also provide a comprehensive view of T&D s construction and maintenance work by replacing multiple tools with one integrated tool. The Dashboard tool will improve management of resource demand and capacity planning for all capital and O&M work. The solution will provide near real-time access 1 to data; allow reporting based on current data; and provide enterprise standard technology to support operation activities. c) Scope and Cost Forecast The first component of the WM Dashboard project is the development of a work management dashboard that provides an integrated view of work across departments at a level of detail 1 Near real-time in this case pertains to the ability to report on new contractor-provided data multiple times daily as needed. Near real time in this case recognizes that availability of data in the reporting tools may be slightly delayed, to account for the time it takes to process the data.

6 the safety and reliability objectives. This also allowed SCE to avoid the costs of customizing a COTS product. In addition, SCE elected to use a cloud-hosted solution, instead of building up the additional infrastructure within SCE s environment. Both these decisions resulted in reduced project costs. b) Need for Project The current VM process involves manually entering information from paper forms into an Access database. The current Access front end and the SQL database used for VM are antiquated and are operating near peak capacity. The VM group manages regulatory compliance of 1. million trees and 00,000 to 00,000 annual tree trim records. Managing this large volume of work within the current process and tools has inherent risks. These risks include keeping data current while processing a large backlog of paperwork, and controlling data errors resulting from manual data entry. By replacing the current paper-intensive process with a digitized, map-based system, and providing the data and tools to perform better analytics and work management, the VM project will: (1) Increase SCE s ability to track and report on the quality of its contractors performance, () Increase the ability to prioritize work, including the ability to prescribe work proactively instead of reactively, which will help expedite the removal of potentially dangerous trees, and () Reduce the risk of non-compliance with requirements from federal, state, local and environmental agencies (including General Order (GO), Rules and, and Public Resources Code (PRC) and ). This will be achieved by integrating the VM with our Comprehensive Geographic Information System (cgis) to enable monitoring of trees in areas with drought conditions, and align prioritization of tree trimming regarding the distribution and transmission facilities. c) Scope and Cost Forecast The project will be implemented in three phases. Phase One (deployed in 01) focused on the deployment of the field data collection software and hardware. 1 Phase Two will configure and deploy a COTS VM system, and Phase Three will complete the project integration to SCE systems such as SAP and cgis. Total project capital costs are $. million. 1 The capital forecast for this project was developed using SCE s internal cost estimation model. This model utilizes industry best practices and SCE subject matter expertise to 1 The preliminary planning activities of this VM project were funded through O&M costs, and therefore are requested for recovery in this GRC. 1 Refer to WP SCE-0, Vol. Bk B p. 1. not