BC HYDRO UNDERTAKING NO. 30 · This pro1ect will s•Jpport and impl,,ment pP,:ple, proces:; and tecrnology ch.rnc'!S to enable a consistent, transparent and more objective approa

B-48

BC Hydro Fiscal 2020 to Fiscal 2021 Revenue Requirements Application

BC HYDRO UNDERTAKING NO. 30

HEARING DATE: February 25, 2020

REQUESTOR: CEC, Mr. C. Weafer

Exhibit B-48

TRANSCRIPT REFERENCE: Volume 11 , Page 1842, line 26 to Page 1843, line 6

TRANSCRIPT EXCERPT:

MR. C. WEAFER Q And that is a good goal we would agree with that. Now I wou ld like to give you more opportunity now to elaborate on what exactly it is . So the $5.8 million , is there a business case for it that's been filed in this proceeding or is there a better and more detailed explanation in the line in Appendix I to Exhibit B-1?

QUESTION:

Please file the Definition Phase business case for the Asset Investment Planning Tool project

RESPONSE:

The public version of this response has been redacted to maintain confidentiality over commercially sensitive information. If the project proceeds, BC Hydro expects to use a Request for Proposal process for procurement. If the redacted information is disclosed, it may negatively impact the integrity of the procurement process and BC Hydro's negotiating positions with potential suppliers and contractors. BC Hydro can make the information available to interveners with a legitimate interest in seeing it, upon signing the BCUC's form of undertaking.

Please refer to Attachment 1 to this undertaking for the Definition Phase business case for the Asset Investment Planning Tool project. The business case was signed in August 2018. Due to knowledge BC Hydro has gained during the early stage of the Definition phase of the project, we are revisiting the preferred alternative.

Page 1 of 1

Yvonne.Lapierre

F2020-21 RRA

PUBLIC Undertaking No. 30 Attachment 1

Information Technology Project DEFINITION (DEF) Business Case

BC Hydro Power smart

This document reque;ts approval to proceed tc Deftr, ,l ,on {DH) phase

Summary . .

Project Name Ass~ lrwestment Planning Solution Initiator: Andy Darby IT Owner: Enn Kiu-:lor:

Project Roles

Identifiers

Descrip tion

Request

Benefit Summary

Z017-ll-15

Spomer : >,Liureen Da:(rux

SAP. Project Ii:

Portfolio 10 Ii:

Inves tment Category :

Portfolio Name:

IT Advisor:

Solution Lead:

YT-00853

1537

Grow

Enterprise Applt(J tior-;

This pro1ect will s•Jpport and impl,,ment pP,:ple, proces:; and tecrnology ch.rnc'!S to enable a consis tent, t ransparent and more objective approa ch to asset investment planning and man-,g~menl across BC Hydro BC Hydro requires a more effect ive way to plan and optimize the scope and l iming of asset i•westn,ent, in order to maximize b!!<lnes, value

This proj,~cl will implement an off-the-shelf software product a•d ac11uIre pNpetuJI user lice, ,,, tc address tne asset investmen t pla nir c requirement:; across BC Hyd,c Re!~JSes uN'.er t:iis project:;,:! deliver as:;et Investment planning capabll1ttes to multiple groups within BC H·1dro The project w'll a ; '

include, a, part of the overall solu tion, the development and implern• nt·Jtton of a corpora•e VJlue framewor'<. The value framewor'<. w\ll lnccrp >ra •e the elements of the e,lsting corporate r\sk matrix alon •sid :! other benefits metr\cs t:, enable a more obj'!ctl'/e ccnipJn;on of investments trat ccnsid,,,, both risks and benefi ts

Integrated Planning, as the lead Business Group and on behalf of mu ltiple end-user groups {Integrated Planning, Technology, Fleet and Properties), request:; approval fer a ,.,pital exp<?nd,ture of

$513,7K ~nd a• IOMA expen diture of $44.S K to proceed with a Defin ition phase for F19

The project has ar. e.<pected total pro,Pct cost of $6,205 1K ; and estimated a1nu,I. ,rcre"1entJ1, d,r2ct opera'.1,-,g cost of $6S0K

ldentificat•on phase act,vities for this ~ro1ect were conducted ur.der the Generat,on Operat1nJ Moc el Progra'7 (GM-024 I)

The primary ob1ect1vc of this projec• 1s to address t:,e capabili ty gaps_(people, process and technology/ prev,?ntin;:i t-ie business f·om making optimized portfolio lnvestTien t decl;l,Jns which ma~im,ze bt.sines<i v31 e, i,.. 3 ... 0 ff1ci•~nt obji:·t'.V'=', C"t1!.1Sten~ 3n~ tr3"Spar~nt rnar:12' T,~ .. ecorn'T'~rd--~ alt-?fl"dtP,•~ W i

D ,,J.?p a-,d 1mplerr~nt an ent,,prise 11;•,e;tment value fnmcwcrk t,,at pt!rm,ts 3 TO'E

consiste0: 3nd cb,e,t,,,c appro •ch to compatirg the ri-ks 31d be:•~fits of d;ifuent 1r\es(mr,,ts wher opt'rn,~lng p r fol·o,

li"lpl:mert an ·ntegrated, enkrpr'o2 ;,:ilution that is ccnLgured ard 3d3pL,d t:i 3j;g, 'NF"

business needs.

T~mp!Jte "'i:.(:!!~ ,~·; ~t" 3 .. 3C '-1y,:-;:, (810::Jerit:.11 :,; tr:~~ ·,~r~~crs =f ,!,is 1Ccur::!',,. 1r~ 101 :crtpc,1,~rJ

BC Hydro Fiscal 2020 to Fiscal 2021 Revenue Requirements Application Page 1 of 23


,1nformat1_9nTech~~log/ Project · - - · - ---- ----;-""1

~D~FIN~!!Q~ (DEF) Business Case ~ BC Hydro

Power srrart

:Th c d ~t~..3.p~•~•~ ~?, ro,ee1 ~:' Dd,nit,on (DEFi ph~se. _ _ __ . _ *

Risk

Summary

:~17-11-!S

I • Provide change management support and establish business ar;d technology suS1ainment

st ructure to ensure our capabilities can evolve and be sustained.

T· s proje,,"t has t'1e foliowif'g benef;t.;

Fir.ar.cial benefits associated with il"plernentlng tools and pr:::ce~ses (vali;e framework) to objectively optimize the scope and timing of investments ar.d ellmhatc investments tha t do

net merit execution in order to ma:dmize portfolio value acro~s the ent~rprise.

Based on experience and feedback from otrer ut'!ities we expect to identify

w:t'i n 2-•,ears cf L,q::Lementir,g this solution.

Otte er r,ori-fi nancial benefits are described below

Effdency gains will have more people focus rg on n,gh value work Tf\ere will be reduced user

frustratlcr\ errors and non-~rodu~t!ve t me br

o Eliminating the need tc manually move data Ir, and out of the chosen /1.sset Investment Planning sof:'N3re sys,em to facill:ate portfolio updates and review of

investment proposals.

c Eliminating the need to manage the rolling 10-year asset investment plan (~$24B) In Excel.

c E!lminating effort for activities such as. - Manually applying constraints to the portfollo - Developing portfolio in•1estment scenarios with manual prccessP.'> ;;nd spreadshee1;

• Manual reporting of portfolio informat;on to different user groups {from field te~r.is

to the executive level)

lmplementng more consistent business precesses and solutions for d.xumenting,

valuing and tracking Investments across BC Hydro.

Enhanced business continuity: mere objective and consistent solutions and processes supports lnstitutionalliing our capabilities, moving away from more subjective, manual methods of

evaluating & prioritizing inves•ments that are heavily reliant on tribal knowledge.

Improved understanding of the total econilmlc value of Investments ar.d the optimal Investment timing based or resou 0 ce a.,d budget constraints

• Enhanced business reporting. a cecica:ec enterprise sol-it:on will enable more consistent portfolio reporting and transparency or. the impacts of portfollo-!e•Jel decisions (~.g. retained·

risks}.

Improved reputation: impleme!'lt:ng a consistentar.d objectlv':! approach to as.set investment planning will enhance comMunicatior regard1rg •tie le•1el of rigour aopliec! to making the r gi-t

irvestm':!nt decisions at the right tine

1 T~.e ki!y risk.s associated with t~e reconcfl'ended a•:ernatbe a'e prlr.iar\1•1 re•ated to char,;;e

rraragement and 'esour:e capacity as sur1raned belcw Additio,a' deta.'s can i::e fou r.d 1n

a't~rrati es se~tion of t'-.e business :ase.

• Moving the l:lusiness from a 'rls~-b.ised' approach tc lrwestm~nt plarnlng to a "vallee-t:ased'

lconslde•l ,~ g ·isk ard ber.e'its} approa~h usl'lg 3 v3h.:e hnework wil' reqa·re engagemen:

a~ ail levels ~f _Q-e organ12aticn r~ere Is ;; rlsl< t'lat t~ls e~.er~.;e cc-uld take a consldera~e

T~11.pl;;te ;)3;:X4g2 v'~('o;:o," 3 3 BC Hydro Confidential P,ga 2 Pr.rted 'J~nio;is CT tnls :Soc-.1-ner.t u~ 1ct :crtrc1)e~

BC Hydro Fiscal 2020 to Fiscal 2021 Revenue Requirements Application Page 2 of 2 3




Thi, document request s approv~I to proceed to Def1n1t1on (Di:Fj ph;,se

Justification

Statement

Business Need

Background

lC l i 11 L;

amount of time. The project intends to begin early engagement in the Definition Phase so that detailed rr.etrics can b'= established in the Implementation Phase.

BusIn-1, units r,.:iy ha•,e d,ffcrl:'nl leve-s cf chang<c: r~,diness for ln1pl~111enting sorr-e or a' of th;? defined cap,b1ht1es (inclu-Jirg 3 v~ U': framework and solution ;pecif;c appr:nrh)

Earl'/ engagement is tr.e n,it11pt;on 5trJt, gy and has alrt3dy ce:;n ongo, g wi:h repr~ent t tlv<:>s from the major business groui:s through the En'erpri~e Investment and Priort tI2~t!on Project (cr:,•,s ('.)rpcr~t, ir,itJ,1'.i·,e to a'1gn and Improv~ asset Inv<:stroer. 1

plann,nc at BC f-lydrc

There is ~ risk that the mult ipl E' use, gro;ps will not be able to bulld consen,u~ en conrro<"

processes or requirements The proje(t manager will estabkh an Issue resolution precess t: eic?'la:e ke·t doccisions, as requir ed

T"ie,e Is a ri~'.< around ava·1at:1lity .if tre bu; nc,; a:id tcchniL.11 rcsour;:e. du2 to d~rr1.111 j

from p,Halle! pro1ects and init1Jt.ves such as the Genent :on Op rating Model lnit1aliv•~ (GM 0244). lntegr~ted Pl ,n ,,ing lnltlat,ve; er tt-e SAP Suppl•/ Chain pphcat ions {YT-00-13 ~•any of the required subjt!ct mat~er e:<perts will also be imolvcd In the F20- F29 10 Ye,' Capit.il Plan update arid the F20+ RRA f;l'r,g. The project team 'Niil ldenllfy re;cu;c,~

requirements at an early stage and will be working clo,el'I with the Impacted busine~s groups to Identify key resource-; . Proj,~ct team resources will be outsourced, where required The Project Man,1gPr has secured resource comrnllments for all resource, requ ired for the execution of the o, flnitlon phase

\f/i:h an agirg as~et 1nfrastructur~ and enterpn~e lnve,tm~nt df'rnarid; trat e;<ceed finan(i ,1 a:id c:t-2, cc.nst;alnt,, the existing processe, and multitude of tools used to plan 6C l iydro's larile and c.:irnple,

portfolio cf asset investment. requ11 t· cnh,rncement. BC Hydro requi res conmtent and scalabh!

processes with dedicated, enabling tocls to justify its 11westments and demonstr dte that it is mMlmlzlng t;u,ines' 'l:Jli~e from th "e lnvcstrncr 's Tris proje_ will develop and impleriert a, im1e\\ment valu-e framework and ar L!nterpme solution fer asset investment planning. The i:roject will

increJs_ tre busines, value derived from $2B per ye3r of capital lnv~stments, liml'. the need for r1a.-ua 1

processrs to updJte and prioritize imestin,~nts, reduce the t ime required to develop investment sccnJrlO$ a1d drive consistency and tr,mparcncy f r BC Hydro', approach to asset investment planning

In 2D13 3nd 2014, Generation Asset Management (YT-00376) and T&D Asset Investment Management

(YT 00477) eacr {individually) adopted

software Eo~h of tlie implementations were approached as interim solutions, meeting only the Immediate bas:c needs :i' the two asset mdnagement teams, whlle awaiting the po;sible implernentJtion of a more permanent en•0 •prlse inves.tment planning solution at some poirit Ir t~?

futve Lrc!er the pr• m·se t:-iat tre ch::se- asse, m,;nagement solution was rre.r: as 3 'stop g •r mea;ure, t'ie 1mpl rrwrtatlon was limited ;"ch t~at the full ;oftw ,re funcl.•on.JI l:'f w,; r.ct 1mpl~rn.,nt~d (? g work!1c,;, ·r:il e frn,~·.,or'< ;:ortfolio opt1m1ntlon). tre ;oftw1re w3; nvt

n!2gr3ted w th any ether sys•.,.-n; 2 g. S~P F1nJl'c1al. SAP/Passport fer Asse: lnfor~•Jt;c-r Ar'• 'E ~" Asset Hea:t;, Datab,m,s) a:id the software nclud~ a lirr.ited number of read arid w,:te licen•es

(Generation has 3 tota' of fifteen licenses while T&D has three wrkh exph: ir October 20 L8) D.:e tc the limited fu11cl1on.,hty of the interir:, solution, t~t? twc Asset Management ;;ser g'oups suppli:rnent

w'tr ,p,ed~shee•; a-d wed pr Jl'.e,~1ng tocl; to deve1op n;~-b tiPd i<"·14:s1ment scen,1'I,~

ar1d create report. Technology FIeet Ser•1lces and Properties do not ha'✓e df1Y dedicated tools tc

T ,.,...:hr-. :1 JS~ .l!!~-;01 J 3 SC 1-.-,:;fr:, :.:-r·ldrott,11 .:Jr,,.t~~ '/':!r~ian· -:f •his icc:.irr••r: 1r~ .. c; tort#~l'-2::::-




' BCHydro Power scnar t

This document requests approval to proceed to Oe t1n1t1on (DEF) phase

Problem or Opport unity

support their portfolio planning activities and 'ely complet e i·t on sp read,h,;i>t•, cta· Jbase, and Nor::

processing tcols, t o capture information al::out thGlr indivi du al portfolim cf investments Tr<' output

frorc, hes,; va:i:C proc.esses ,nd tools is reiied ui;cn in a number of w-:i·1s including: a; tne irput to the

R.:venue Requirements Apphcat,on [RAAi as th~ t:as1s of the arcn .. a updJt,:, to t~2 ~<'·•/'~a. c,;µ1tdl i:I•·,

and to prov•de s2ricr ex~cut,v•s witn crit!Cc bu ;inic;s intt?ll1gr:nce th;:•1 r ·q,

The BC H·1d10 Entt?rprise Investment ard Pr:om,zJt;on Project (crn•,.,-coq:.orJte ,n,ua:.ve to a'.,gn and improv,1 asset 1.,vestnient planmr.g a'. BC H•1dro) and the Generation Op,,rat1ng M'.l >ei init,al,ve (3~,'-

0244) ((je,i rJtion, pr'or to Ouob,:r 2•~ 15 '~-Ng, pr;:ie;r1m to imcro·,P. bu;in~s; effcctiven ; a·.c fr,, l,1n,~1 aco,; th~ t;u,iress) ~a ;e t0•r c ·u,J.d tr.a: 3ddi•i,1n.1I f, ":r :i<1,1l1\/ a,d al !Jn11'".'' :

nt1ce,,ary tc r,eet BC Hydro's e•1oiv111g a;sat investmi!nl pla:.ning ar.d mJn.1gemt1nt r.eecs

Id ntif ~atlon work and engagement with key business groups (GEN T&D, 1~ ~!.et, rropicru-•,) N:;s

carr cj o·st Ul"Ce' the Genera11on Op~, ~ting Medel init1Jt1,,e

In ~loven,orr 2017, ai:er tne ec hydro r ~ orgJ11 Ht,on, tr." As,ei lrvest,..,,.,t P1 1•1n1r5 Sdu\•or· oort,,"

of w:,rk (a; outl,ned In this bu ,,ness □se; was removed from the Geno?rauon Operating rv•::del proc:rr

Through d,scu,s,on,. with 5lakehaldP.rs it was deter r ined that the pro1ect would D-:St pr·c -ed as, staid-alone project with business lead~rship from the new Integrated PIJnning line of busiress ( M ict1

iric!udes Asset MdnJ gement for Gene1 ~t1on, 1, arsm1ssiun a'ld D,;uib 111(.'n). TI;! new pr::ij~'l

consolidated prior wor~ t o corr.ple te the ldent1ficat,on Pnase requirement-, and carried out s'.eps tu

prPpare for Gate 2 Preliminary Re•,iew.

The BC H•,dro G•!nerat,on, Tran;m1s ion & Di;lr1hutio11, Tt!chro1015 1 Fleet Srrv1v., an:i Fr::ipt!rl ~,

gr:;1.,ps "'13·,e h1,t, rioll·1 wo•~~d ir1d,.,pr,nd, 0rtly t::i develop pr:c •~es a·c ""d tc,,s :: ;up~c1t, ·. 1 ;, i,·

inform 1tlun a"!d ma~lrg investm,;nt • •c1 ,iom reg 11ding their in; 0 ~tment port:olio, ,\5 a r3.,1t ec Hydro does no ha•,e a set of standardlir.d and aligned proces:;e5 and a~ enlerprisc IT solution t:ia:

en:ibles eff, tiv<:? and efficient inve~tr"'l rlr 1ing and portfolio c _ i,,on r.Bhrig The resJltirg blJ' 1\1' , pr L-1 >fl', lnclu i,;,

• There Is no s'rgle so ,rce of t·u'.h t:,at links ~ss21s, r·s'G / ·1a''..o a•:i 111•11;,tmcnt, Ce a :•":n: a:;set based risk r >gistcr)

• There Is no s!rgle source cf truth for lnv~stment in fo rmation er m-1 thod; used to opt1mlz,,

portfolio value, run in•,e;trnrn' ;cen mo; and meas~re tr~d·! of

• There is no means to obJect1v'.'ly assess tne trade of:, or. the s~cpe and tir.iing of va::cus lnvestment5 (project·, p rograms) to m.ixim ize por tfo lio (or sub-portfolio) value. The curr:n·

pcrtfolio dedsion making ,1ppo1rh Is driven by rislc ard Is h 0 -1vll·1 r:liart en ;ubject mat:;;,

e;pert input. This approJch s tc-<tremcty IJbonous and 1n,1dcqu.J e co11slder<nti t~e fa::t tha: tr,

portfolio is made up of hundred; cf potential investr,er,13, many of which have 0t1xib,lity o~

scope and timing

• Due to limited functionality a'1d tt>e h;;iited current l,ce,se bas! t,e•e is riea•,y r~l,ance C",

manudl transfers aid m;in,pulation of investment information to facil1tate re•,'e•;., ·h1· ,· 3'.(·,

t'1e proces,es time co, s1Jm1ng. es tr;insparen and rr.cre cr::ire :o er·c·

rer: ;5 no .: 0 ntr1ked ri-', tn(kl ~- pcrtloliu ~11alyt,cs & rro,j,•11ng :,fl0n 't"' n,.o,•(""f"''

~eds 35 a'iset 1r-vestment 1nf,;rr,-11t,on , re' ir'egr3te t'"' '<?t s-rH~r~,; I? i S!.~ A II

a.;set con,lit1on inform 1t1un

Trere a·e ro in egrated wor '1i:;·" ru3nJ.;~ 1,~rt :a;:ab,1,t 'C'S':· d~v<:I0t)fn,:! :;, a,;r:r: • r •

nv•~strnen 1nforr,,at1on ,.h,,:i crea:es the reed fer rr.a-•,al Ncr~ aroun · "''t" r:: a~c tr-: • T"'ere are ro asset n·1es r,~•1 plar>nmg bu;1ness anc: te,:hnology su ;t llnMer,t r:I:;; or ·Jn&: ·,;

go•,ernance structure tt,ai •'~ 1r-tpgr,tec! in"J t--;e org;ir1Iat1on fr,c support a"d .:cr,!1n1,:, ·

irnorovn1 ent

3~ ro ,e,c (i:,l\•1d~f'l 1•

?r·-,rec '/?fl --1.:..' ;:,-15, .fo-c..;rr.:~rt 1· !! ~c: .::c"l·r- r:f




0 BC Hydro Power smar t

This document requests approval to proceed to Defin,t,on (DEF) phase

Urgency

Key Objective; (De.sired

Outrn,11,•,j

2C.!.7<!•:.:

rn~ BC Hydro Enterprise Ir.vestment ar.d Pncr•tizat,ori Project lstart~d in 2017 with represen d\l'IC?,

from Generation, Tr3nsmis.sion & Di'itributicn Techno!og'{, F!~: Serv,cPs arcl Prop<>r:ies) .ind the Gentr;;t,on Opera •1ng Model initlatl'.e (stJrt<!d in 2015) ha•,e beth concludd th~t moving be-10,'\d t,". c,1;nbilitiPS of the current, i:iterim A.sset lf'l~':?3tmert Planning (AIP) -;olt:ti0n:; i: neces~ary to meet ec H1dro'3 cLrrent a~,d future asset :n,·estm •nt p,Jrniril; ~;;:!;;

D,;:•,elopin5 a consistef'l t and sca lable rnterpris~ appro;:;c.h tc a:;.;et lnve,trnent pla• ning (::ottom up planning through porthlio optimization)',; orie oi tr= k:f priorltI"; f0; tre rew Integrated Pb ·ning li"e cf business and tr•is project is essential t:i achia:vin.i ,t. Proc~edI11g nc-,11 i, c;sent1~I tc cnsur·ng tr.at BC Hydro can develop, test and fully implement the rew cJp,1bil1tle; ahead of the F2O+. A va Iue frJmework {clear definition of sources of business v:lue: rls'<, b,,n~f1ts) and a rcea·s of intelligently implementing !t a·e reriuircd to enal;le an objective port folio optlrnlut1on approach that c;;n maxlmlLC bu;ines:; valu,, Fer ea:r, p!Jnning cyde that does not use th,s appru-1~h tt,~ fi11,nciJI a1d efficlenry ben~ lits cannot \::e re.1lilf'd

Organl.at1onal mdttirity for evolving the a.sset investrnent p!Jnnlnc appro~ch Is high, based on the exp •rl •nee ipined by the asset m maccment tear,; t:slng the lr:terirr solutwn; and the eng3gernc'1t that ras occurred through the Enterpr,sc lnveslrnert & Prionllnticn inIt,~t;ve and the Genera•,on Operating Model lnitia ti',e.

me prn ,Hy objecti e of this project is t:i address th<? cJpal:itlly (people, process and technology) ga;;s pr .•,ent,ng the busiriess from makirg port folio in ,estmcnt decisions. which m ixirrme bu,irt ,,alue, if' ar Fft rh~nt o>Jj~,:.tl',P 3 d ccn-;1,;t~rt r.,3rn~r T"'"> C:s'.red:, Jtcomc') i1<r:cludc

An lntegratec, el'terprise ;clu1Ion that ' eas·t to use ard pro•,•d~, • ~ ra;r; L> r.- ,H, 111:, portfolio valt!e in an obJectivc and st 111d.irdi!ed way The ability to leverag:1 business data to au tomatically op t'mi! 11 pert folio v.lue. run Invest'"1e'1t scenJrios and measure portfolio-level trade ofi;

• An Integrated asset risk registry that al!g~,s to t~e defined asset h1er,rchy A solu tion tha: seamlessly Integrates to key system, (e.g SAP f:Jr f:n;ind~I updat s. report,111;, asset regist ry, AH i/EHR for asset co•·dition information) to erable port folio anal'{tics & modeli ng of investment reed.;

• A solution that includes secur~ workflow mJ ugcment c 1pab1lit1e~ wit~ tr:1ceable a~c': rec:::~s a,d processes

• A single source of truth for asset ,nve~tmo::nt plannl!,g ln'or11,at1on (e 5. in,,_;tme• t '3'.trib1.;t., optimiz.Jtion functions, etc.) and method; to enab 1 e effkiPnt repcr!ing and trend anJly~

• B\Jslnes; and ted1nology sus•ainml!nt roles and governancA structures :ha: are integrated in:c t .,? or~'lnization fo, support and ccnt•nucu impro,ement

Immediate Outcomes

Near Term Outcomes (first 18-months)

• Si;:gle sot. -ce cf t,<..t1 a0 d ;tandJ-d pr~ces;e, a:Goted across t. J

ent.lrp:"i;e

• Accept0d V3l ~e f l'"'eY.. )r1 .,.. ~r f'5tlt-, h, C g•.P~ern "r::::=

bundat1~n for a;se;,ing and trad•ng off al, ,rvestment, Eff1c1-2ncy and data qu ,1it•11mr;rcv,!m~rit; ·r appl,cati ~, fl.r.:_tior'¼hly Including a 4optIon c' wor~flo•,.~ a\J1li'.:' ta "J"

:n,.,; trn.,rit scenJrlus. integrat,on ·,11i:h key system;

• Le·,erage t,e r.ew framework to 1dcr,tif,, ,nvcstments th: do rot meri: execution f-or., a cost-benefit pcrsoectIve

l~r-,ptJ"t ?:icqp, ?r:;,,.n 3 3: 9C t1-.,d·:. Co·1'lJ1mtlaf "r:rit.::d V~r;lan . -:if t!"lis 1cc~--.,c!r: J~? "Ct :;;n•·cUe~



.1nformat1on Tech~ol~;; P~oject · · u ... -- -· --- - - ·- - - • - · ~ "' ElCHydro

•DEFINITION (DEF) Business Case 1

Power smart

lhli:~J:~~nu~uests a;ii:,rova: to rroceed to Def1nit'.on (DEF) pha,e. _ _ I

Key Requirements (Opt ional)

2C":.~-ll-1S

, long Term Outcomes

• Demonstrate how to maximize portfolio value b•; leveraging the an.il•;t ics so lut ion to optimize the timing of investments

• Improvement In cycle times to develop invf'stment scenaric,s, update the portfolio with actuals co,t data and foreca,t fr:im ongoing projects, produce key reports and dashboards for consumption by various user groups

• Improved collaboration ,lfld information sharing across business groups with integrated systems end report,

• Increased transparency on Investment declsiors enhances engagement and builds trust in the precess

• Data consolida tion and improved enterprise report ,ng thr:iugh data lir:ks to the SAP Business Warehouse (BW)

• Streamlined processes by optimizing the scope and timing of Investments to maximi z? portfolio value.

• 1-nproved asset analytics for projecting Inves tment needs over longer periods cf time.

• Ability to leverage asset heal th and performance data from the futur e SAP EAM system to Increase rellabllit'f of lnvestm~nt optimization decisions

• Process and solu tion sustainment embedded within the organiza tion to enable c_ontlnu_ous lmpro•,ement

The mission critical business requiremen ts include: Developing a value framev,ork and governance to enable a value-based ap~roach to portfolio optimization

The ability to chara:terize and captJre the r,s'<; and benefits of performing a'1 investment as it relates to key business prior ities.

o The ability to value all lnvestmerHs In common economic uni:s to d1rectl ·1 compare different Investments and assess t rade-offs.

c The ability to understand how the risk and va!;;e as; cciated with assets and investments will change over t ime (typically a 10 to 20 year w'ndow).

Ha ·,ln g an l1tegrated, enterprise Asset Investment Pia, nir. g So lu tion (AIP) that Is configured and ada;:,ted to align wit h cur bus iness need;, this inc lvd es

o A centralized risk registry consolidating Informat ion rela:i.ig to as5;:t5 (based on the a,set hierarchy), the a;sociated risks, an~ 1nvest:nen:s

The abil ity to maintain an accurate, up-to-date and complete inventory of e::: Hyd·o investr.ents and key i•westrnent attributes i" a si'lgle systerr trat a'lows user grou ps to directly update :heir relev3'lt i1·1est,;e,1t in'orna:10·

0 rovlding se:1.,·ec sys'.em a~ces; tc t,: ·1g'lt 1.se·s t:: s~:ipor: t ": i'l1~str-e": oro;,osal, appcc•:al ard pr cj •ct re e3s~ w-:r'<f o·,i (')::::Jr.·ao o an", r;; t. rough to po·:b ,c opt.'71iBt c.-)

: /lb1rty to ccmpa·e r·,estrre1t; 1l. act:ira'.ica I; :::;i: "'11,e ,!'>e J:Jr::: 0 tJs~d on va 1u e, 1d:ntified a :~rna::v=s arc r2s0"·:2 & fi1 arcia c:,s:o·-:s

T' e abi ' ;y to dyra-nlcali·i upcat: the portfo ,o th•our tre 1,t2gr~t or wit~ other ke y s·1stems (e.g. SA P, Pc , EHR, A-II. etc .)

Templdte 03:1<CG~ \e.-•fcn 3 1 ec >,~dro ~onf'dent.a, F ·n~~d iers:cn;; o.f th-.s dornne,t a·~ r~: C!:"tr: 1eC



Information Technology Project

DEFINITION (DEF} Business Case BC Hydro Power smart

Th,s document requests appro11.i[ to proceed to Defm1t1on (DEF) phase

Strategic Fit

H~ving updd ted ard en l erpri:;e aliened proces;es, tha! lev:rage industry best practice, fer v;lu,rg, app r.:ivlng and priorit i zing Inves tments

[ri,1bline C'l·d~r,Jnd q•J~ri O a,d 3r13I f"~ cf var,,:,•I Invr 0 tm~rl atcr1IJ,1t~ ~

KP!s/metri,:s for reportint: to supper! e:<<!cut,,,~ t:ec1,1on making

H 1 , ,n;; tr dined and kr,ow\ede~ab! ~ users and the appropri,lt~ e·,=I of b;,, e ad t 0 cl'r1ot,,;r1 ,ustainment g0v>:r1anct! a,d slr•J::tur!". to en;.,'e au, C3pabtltll':, c~' te ,,,,t i'n >d an::l enh3rci?d O\,er t'l~ t,1n:3-la:,m

Corporate Priori ti es Alignment

Makel e2s-1 for customers tc do NA bus1nes, with us

Deliver capital ~rcjPcl5 en time

and on burJeet An integrated and fuliy c;1pJ, le Al? solution provide. tne deci,1on making t0 er sure

that we are making the right Investments at the right tlr:ie The solut,on will supper\ optimiz,1 t1on of projects that are relea;ed for deliv ry as well as re-optimiz~tion of the portfolio to consider changing condi t ions or foreca, ts durirg the d elivery

lifccycle (e g. If t:1.; scoµe and costs of projects chdnge dra111dtlcdll•/j. This capabiilly will bu!ld confiden1.e tiat we are alloc.itin& re;ource; (p0<Jple money an:i ti~e) in t, ,,; r.cst appropriat manr;.;r, a:,d we are also able t;: mJke dyr. mic charg~~ if r,e·,,

information become, a11,1il ble

Explore the full potential of NA energy conservation

Strengthen our proud a ·d val~ed By eliminating the need fer l.iborious mariua1 work-around~ we a'.e er.abhr.i; tea:-rs workforcu to do crore hig'i value wor'.<. In addition, thr01 g~ the pt1n1ization of inveslme1l

portfolios and in;t lJt1on of geed pro jects/higher value inv"!stments, emi:;loyecs g~· to work on high 113lue work. A:sc, this can increa,e pred:ctab!l,ty/early visibility t:

resource demand and balJnced work!oad

Cc tinue to ir•1pr;;v'.'! the -lwl/ we Cap;,ibiht1es of the lntegnted AIP sol ,t!on will Improv<> the exi,tlni; capab,liti,·, ir ,!-2 ·, criP following precess areas

~Ot • ! L l_; ~ .. ,,...::;i1ta. J2cnj., • "'l.c-

Financial risk analyst.; and managerne"' Investment portfolio opt1m1zation

ForeCil~ting of capital portfolios across the or33nIzatIon C~p1t.1I pIO1ec ;ele.: t,on and release witr ;tre:imllnlng and enhar,cernent d the proiect portfolio management cap;ib1!It1e~ The hlgh-leve! full cycle

vision fror, a process architecture per;pect,ve include;

1 A;set 11,,,1Jrd1v/ir•1°nt:ir·t of a;•e· c~·3 ~. - pr•,,,.:1 asset luJ• :n a

equlpn1en da~a

St,mdard Asset pcrt'ol•os/suo-por\lol 0 ' tha: car ce pr~sentP.d/gr, "JP"d by LJne•of-Bu<ine< w't~ ,.on1,on ,r L ::-- 3 • :a- tnappe':l to the as,e• t-I.;rarc y on pr ,e"t ;;set -ea·1r ar,d pf'rform.1ric 0 d3:3 3, aggregate or det,1led le;els (roll up 'drill c,Jv." vie,,,) c~ntr all:~d In-,e,tn1ent ,i_;k r.;,,•i~ter a,~d ~nJlyt,,:-- capabiliti,'<: :c

suµµort 1ntelli~enl proI~ct ;el~c11 n and r~1ease c~p~b1l1ty

s,:: i-yc·o (Jnfidcnt, l ,:f ... ~d V=-:;:~"'5 -;' :i..;s :.1'lCJn1C'.. If "\I,). i:;nt,dl~;



=•- ··----.-·~~------ ·--,

n Technology Project : N (DEF) Business Case

eqvests approval to proceed to Definition (DEF; phase. - ~..... -- - ·- -- --- - -·- -- -- ._...., __ ,. ·-- . -- . . - - -- -CHydro NfH srra,..t

4- Improved process and dJta interface with project deliv1=ry units

5- Abllity to receive project forecast and p~rforrr.ance tlala from tre

project management tool (e.g. up-to-cate portfolio f:::r?.casts a~c ri;'.<

Indicators)

6- Visibility to total cost nf asset (cradle to gra•;e), ass?.t rnndit:or (future

SA? EA.',l lrt:graton) and an.ilysis of r.air er.3~ce ~l;i~·:/req•Jir2,.,.,ent.;

to create/predict to fu ture projects.

Assumptions, Constraints and Dependencies

Assumption

Leadership Is sJppomve ol

mo.,ing to a value-based

approach to erable portfolio

cptlrr.lzatlon

Solution can be ir:egra:ed

with key systefT's

Focus will be on meeting

the requirements through

configurations in the

Com171erclal off the Shelf

Solutions(COTS:

).(l'-l:-10 ... ?r~lote Pac\3&!: /~rs10" 3 _;

De~crlption

Enterprlse Portfolio Planr11r1g & Optlmizat;cn

has been identified as a key Integrated Planning

priority and there has been early endorsement

of evolving the approach to characteri2lng and

prioritizing investments. Shift ing awa•/ from a

purely risk based approach for the release of

projects will require strong support and will

llkefl1 Impact many processes outside of investment planning (e.g. b•Jsl ·,es£ cas2

d!!velopment for ca_pltal p_roj.ec~).

The system will add significant efflclercy if it Is

Integrated to other enterprise S'/S ems to

facilitate seamless data exchange. This solution

Is In line with BC Hydro's long te;m E.R? strateg-1 This solution will provide access to

investment optimization data by leveraging

ether SAP modules such as the existing SAP

Flna:ice and tre future SAP Enterprise Asset

Management (EAM). In the longer term, It Is

assumed tha: the system will also be linked to

condition databases (such as AHi/EHR) to

support predictive analytics. Requirements and

feaslbilll'{ of integrating tr:e Al? system to o~her

BC Hydro applications will be assessed during

the _!)efin_!!!~n_ phJse.

Project team will be working with the business

stakeholders to Identify tr:e requlremerts and

will be following the 80-20 rule to ensure 80%

of the requirements will be met by out-o'-t~e

box funct'onallt es o' the tool as q:posed tc

'cust::mlzini tne solut:o,. Rema -if".g 2"°• :;' the requ 1rements will ce addressed by 11,orkarounds, ac-hoc reporting or busir.esc

process changes. When re ,iired, b1..sines;

practices and PJies w'll be standa~dlzed or enhar.ced tc afign ,.-,it'-! t'-.e star>dard design 'J'

t:ie tool.

X Hyd'o C:o:"ific~nt!al

Impact If False

If this assu;-nptlcn is false then we wil:

need to re-assess the options for how

to maximize ,alue from the portfollo

optimization process.

Tre abilit'f t:: supi;or. s·{ste11

lntegr3t;on will be a requirement. I',

for sor:,e unknown reason, i cannot

be achieved, this would impact the scope of work and would reduce

pr Jcess elflclency.

Customlzec: solu~ions are ccstly to

deveiop a'ld w'II beco.ne a chai,erige

fo~ tre 1- groJ~ to maintalr tr-em.

They ma1 alsc net r1eet tre long te'"" s:, aoi'l~1 •;:~u1r~....,c~-:s re :'.h~r

cr:j=c~ cb_e:~~-,,..1-~

?r·,":ci:d V~rs:cns :f t""b dcc.Jr--t'"'t 3-~ 1ct =~r~;~. e·:



Information Technology Project DEFINITION (DEF) Business Case This document requests approval to proceed to Def1n1t,on (DH) phase

Constraint

Planning cycles

Description

Cut-over plan for releases needs to be sched...ile<l to a:ign with t,rn ng for the annual

pl •n,~ing process and other 9C Hydro's fisc-cl

pl~n n~g Etcle · Asset Hi rarchy Foundation Project will deiiver a foLndauon element of SA?

project (YT-00904) change ccre functi::naEt/ that ras be-?r iJ~nt1f 0ed in BC

wlndov, 1-'td,c's SAP stra•.o:5 / a .!nif"ed design fer lrJ,-Vi1n1.:-::icn Station· a;-C Gu~•~rntlon's 335,e~

h,erarch•1 within SM'

Dependency Description

Asset hierard1y information The t iming of fu ..ire changr~ to the str,,cture

r~posltory (YT-00904) This or system lc(at on or enlerprl· ~ as et r-roj,:,: is to design a:id lnformatio'1 is uni nil•,,11

configure a unified stlucturc• fer the Sta•icnJry asset a,:J eq !lpmenl hierarchy in SAP, ir:1plement a new lnterf.ice

from PassPort to SAP tc integrate the asset Inventory d3ta w 1th SA? tlirough an auto,nated data n.appirg srh,,rna

Alternatives Analysis

Best Alternatives

Alternative #1 (• RECOMMENDED')

Name Expansion and lnt~gr~ticn of the curren• .A.JP sclution

requirements

Description Wcr'<. directly with to: Develop 3 Value Framework


Impact

Detailed release sch~dJlc will nc.!:l t:,

be e;tabl1shed icr implerne;itdt!on.

Potential un~act of chang.::s will b;,

con5idered ir Defi"Jtion whe:, ti-~

det3iled lmplPn'Pillaticn ~ta ·e sr.hedul,' w 111 be um'·,1ned

Impact

The anticip1ted shift to 5.,1,P may require

enh.incem1,nt; or modification of

lnterfJc~s to the AIP tool. Tho ·e

changes do not impact the expectea efllcicncy an: bujines:; improvt.rn~nt benefits tha: will be ach:e,,ed by t~i:;

projecl As per BC Hydro's :RP rcadmap, the Al?

tool will receive the StJtionary a3s2t data frcm SAP via an interface (mdnu 11 er autornated) Tri:; ln:erface will ha;= rn1nim,1 I impa.: on tre deliv~ry ci the

Al? solut:on Howe•,er, bture

Integration with the asset informat1cn In SAP will 111,prov'? the qualit'/ and

ace ; ~bil!_ty of :lata in the AIP tccl.

' to addre ;s key b~sir.ess

Exp ind/evolve the use of tre Cl."2nt A:P ,<JliJt1cn for :h~ ent~•prl~,,

U,2, stae;ed 1mo!em~nt~t-cn •::i ma,a11e ·'s'.1

Benefits 'f;2•, b~n;,flts ci this a·te:rnat,ve 1n:lu e

Z017•1L·l) if••Tlphte :>1.:):J~~ •?'";.c"'. 3.)

r~duced char,ge ma nagem~nt - b,icec er. familiarity 1,i:h the e ,, ;ting ,ystem cJpatil:t1e

reduced tin,e, effort and cost fer procuremen• activities by working with the current ;olu:1ur

.rov1der that has a fully capable Industry leading solution -shorter t1melines for implef"lenl 1•.io11 as is 3\r~ady familiar wltr BC Hydro

Bl l""yCro ;:!;11fld\!r.i:11 ;)r···iti!'C ', us~cns ~f :!1i~ ,J!;",:11f'T'I r- y~ , .. ::, : ~!r-:•!c!:




DEFINITION (DEF) Business Case BCHydro Power srrart

This document requests approval to proceed to Definition (DEF) phasf>

Impacts

reduced cost and increased accessibility to solution experts:

EC Hydro would be able to lr,ve1 3ge

P11s alterrutive provides

An enh,nced inv?stment ~J 1uat.on frJ.ne,,•,ork

·.n enhanced portfolio e•1dlua'.! □ n & out~o,ne,

& so\i1tion configured to !"1ect b,Jsi1'ess a1d user n,ql:Irernt,,t;

F1n,1nc1al lJ-0 nefits are expect=d to corre through elimin,1tlng ln'✓e.;trnenls tl"at de no: merit execution a-:! by sh,ft,ng In ,estment.s In lime to maximize portfolio valJe. B.a:;ed en f,,r-dba~~ a'.id experienc , fror,

o•her 11t1I tI~s,■■■■■■■■■■■■■■■I e,o»'t ,,1 w•t 1"1 7. ye Jr; cf im;,I~1"1<:'nting :r 0

solution

Add1t'onal b~nef,t.; description inform.1t1,,n is pro•;1d:,d bel:;•,r

S1gn1fi:.Jnt impr:i~ement in cyde: tines to develop In 1•.ist;,1cnt_ s,:i:nario ;, update the .ortfoli·J

with actuals from of"goh, pr :JJ• cts and prodUCP. !<.':'! re!)ort, ar,d dashboards for consu plion t 1

\larious user groups ~0stead of spcnCii,r !cr.g h L'n o;; mJ11ual oct,·;itH..:s tf,:, rx.Jmplc baldi,d:- r. r.umhP.rs J;-1 spr::ad•;hz=eL; to 3d"'.=i•2 ~s- a targ• 1 '.) L.)-:-:s r1 1 : ~.: .e 5.~lut ,)n~ t.J cf'jciertly te:it rea· bL,1nes3 scenrio~ ir ordei :o creJ'.': t:,e rr,os• ·,,'Je fr:ri :,-e oo·tfol,o User gr:ups "'ill ra',e the ability to lev•r 1ge c··ll,,c1 "d ~sset ,r,formJtlon t:J prn,ict,vely dewlop inves t ment scenJno~

and manage the portfolio to meet o~; b•Jsin,s; ob j•cct •1e, (: 2 maxi" 1:<' v;1iu<:>) o,,~, the long

term.

D• mon;trated fina'lcial value from using the righ'. tools ta nake ca- 'llex portfolio level

oplIm,zatIon decisi0ns The ab:lity to matherPJt1cJlly optlrn1£e ver,u, using more of a r.u:-lir 2

approach is expected to result In more efficient use of resources and drive business value. In

terms of quantitative benefits, a white paper produced by the Universi ty of Southampton {,,it'i support from a leading vendor ,n t;,is area) conclud"d trat or;prnz~•,ons that optimize ('-i cortra;: to prioriti ze) their asset Inve;tme11t pi rtfol10; ~an del vH 7%-20·:, more value from

t!'eir pcrtfolios when faced with the sJrre financ at constrJ,n•s (Quorit,fy:ng t/>e beriefi' of ,nvestfTwnt portfolio opt.m1sat1or. vers:.,s pr;orit,~r,•1011 fer asser investment organizottors T;;r;, e: al.) havm1; a single source cf truth with rnnmtP.nl data requ•remenli an; opt1r,,i~alion

f1Jnct10ns will enhance data qJality. a•tcid duplir.3•lcn of effort ar,d impro•,e in•,estn'e ,t

d•: :Is,ofls

• ~-., ircreJ,~d trrispare• cv fr t C::)mes ;,cm havm~ a mere ~,,fed ,;.,Iuc1cr anc set of pr0,.b

1~ 1lsc P.~p•"cted t imi:rav-:, co!IJborat,on a!ld informatlol' sharing across r.-.= ~,,,;;•,~,, gra,;:s

a·d build tr1.st ir. tre asset 1r·1-?s'm nt plJ!lntng p ·cces

nl ir~ it r b :L.i~ .. s..,lJt cri :r- t:-- _ ele•.tr ca .sy~t~r.1 ass~:.; f11 ;: (::1~ ~,.v·: .;i. 3 .l_,-!r.~ .1: .. ~ 1 h "' e .. ;:.~-...3tL ... .! 1· 1~~t,r~~t 1t;3,C::r~r...~fi:1...11L• a~ttpi:ttC:, ~1.1'"'1l:C" 1 ~ ~l

e1r\y 35 p,::c.; tie

-rr- ~ i:""r:t n,cal ntegralr:m ~ark ar.d solut ~:"' 1rrp:0 rnentatior. ·s no~ c .. s,der .J:, ~ prir Jn1 Irr•p 1 ·u are tr,cse rela'.ed to change manageiner.t pdrt1cui3rly·

• Achieving consistency 'r prcces ·es across dive,;e busi ess g·c..:o; • Ensuring bL.y-,, and tra ining on implementing a corporate v3!u2 frarNmr(

Trn;It1cnil,g rn\Jlt1ol,! b.Jsine,, grcu -; cn:c, ce·.v ;olut1or \Is111g new pc ~




DEFINITION (DEF) Business Case BC Hydro Power sm art

This document requests approval to proceed to Defin,t,on j DEF) phase

C~sts

Zill/ 11 L r . clJt•• ,_ -< ••

• Managing eJ<pectations for the re;ea se a'ld staging of w1Jrk (i.e cifferent busir.es:; group~ mJ{ t:e en differen t releases in a staged appro1 : h}

?l-:!3Si? s ,~ prOJ''!Ct C05t sect1cr.

,,. . • f -· • ··- 7 ' I • , , I

L ! _ I .

Business Readiness

Oef,very/5cope

Schedule/Cost

Business units may have different levels of change readiness for implementing some or all of the defined capablllt les There Is a risk that the multiple user groups will not be able to build consensus on common processes or requirements.

If sccpe is too broad er undefined it will be more challenging to assess the ievel of engagement and effort for the total pro ject.

If scope is too broad er undefined it will be more challenging to assess the evel of engag<ement 2nd effort for the tcta l project

The project team wlll assess the change readiness of different stakeholder groups during the Definition phase and the implementation scope and timelines will reflect the appropriate change management requirements.

The project team will work with business groups to validate, design and Implement processes for groups with more change management requirements.

The project manager wlll Identify an Issue resolution process to manage key decisions

Project team will be engaging the impacted st,keholders at an early stage of the Definit ion phase to receive and Incorporate their feedback Into the solut ion delivery roadmap

Manage expectations fer approach options early In Defini tion. The project Implementation schedule will be validated with proponent based on Input/ experience on successful Implementat ions In comparable organizations. The anticipated apr;rcach is

to limit the early releases to groups with the highest business readiness who can commit resources to support the effort. W~ will establish a cfe3r re1ease schedu1?

fo, lmplementat,on to mit1ga e ,coce creep ard manage e,pectat.cn,

3C -1tdr,,, :Jn'1d.rnt1JI

Dr ,t.:-d •, ,, .. :;·crs ::i ~ -t·c1 . .-,,pr1 i ·~ 1('' :c"1~c11 .. r!


.



"' BC Hydro Power ST art

This document requests approv.; I to proceed to Def1nit1on (DEF) pha,e

TrJde -of! s {w.#.in t"ils

oltunat1ve}

Ul . l! l

Resource Availability

Technolo(ly

Organizational structure

J\vailability of tre business and t:chnical re.;ource, dJe to demand frcm paral lel project. 3nd Initiatives such as the Generation Operating Model

lr.it1a tive or the SAP Supply Chain Applications lack of resources could Impact project sch edule.

SAP Enterprise Asset Managem,•nt (EAM) n~t fu lly 1rnplementen ar.c timelines are TBD. This could limit the ability to lay out the capability release plan.

BC Hydro und<?rW•=n t an organizational change in late 2017 Additional organizati< nal changes arl! considered likely, particularly In the new Integrated Planning organization, wr ere the asset management tearr.s reside.

Toe project team has identified resource requirements dllrlng the Identification ph.1 ; e Technology resources fer tbe Oefi rnuon ?hase have l:een confirmed

The Pro,ect Manager w\11 be working closely with the project sponsor and the Impacted business groups to confir"" a;signment cf business resources for the Defini t ion P~ase. The mcst likely outcome from a delay in the confirmation of business resources would be a delay in the Definition Phase schedule. If th is were to occur, it may also impact the project budget which could trigger the need for a, EAR revision to secure ad =itional fur.ding

To further mitigate the risk of technical resource a•,ailabil1ty, the project team will procure external expertise to address resource gaps.

The Enterprise Application group o' BC Hydro's fT department is currently d,~•,elopir.g a, ER!' strat e&'I tra: wlll la 'y' out c vision and roadmap for transl• lcn1rr, the core asset management functionali ti es Into SAP. Project team will wcr< closely with that team to validate assumptiom a.id key design decisions when needed

Organizational structure ~ay impact worknows and the number system users required. These are details that will need to be clarified during the Definition Phase.

> - .t1t;r ) 1rt 0 r •p-:j !o rnee-: ai' cf t ... -c <-, "'b:~(':· ,c.;,; f"'.· 3 :::l.r 1: t -.,~ t'"rr .... rp:- ·" 3Jf .t c· ·- '."'1J"' r· ...1

op~ rr '= .:- e p ,tf )i',J of 1nvestrr,ert; ~ .... J .. --~aii:·miz...1 s ·1J\ . .::1 to 5C h ,d· Q~,j•h.:rg s..:.c.c.e,) ~.---: e•€1. ·11 a•

s·,st~"1 o--rt ,-.iocld redL.ce S'(Stern imph:fT'1...,ntJ~1cr'I :t""d sustain'T'~nt cr;~s ::,1.;" ~,ct. 1~ al.;~ d ♦~-r~~,.

ben~fitr !o ~'"'C)'? 00rtfcl1c areas

BC ~·:~r: C~:1f•11ertl 1

.>· rit.,,..J .... ~n .... n; ~' c~1s .:!c.:-'"'"~""' 3 ·'I "~ • :=,~:r:: ':?.:




DEFINITION (DEF) Business Case • BC Hydro

Powe r srrart

This document requests approval to proceed to DPfin111on (DEF) phase

Alternative #2

Name Conduct an RFP for an AIP so lution

Description T~is opl!rn h3S the sar-ie abje,;li'; , .;; Al' H1'ot;. ! 1, i;i ter,.,, cf rnd ,.;t,, •·Jnd•on~l t·1 but we 11c achie,,e tr,e solu t ion by conducting a; RFF to

Benefits

lmp~ct;

Develop a V3lue Fra-ne·.-,crk

Pur,;hase and configur ~ a k1..nd.1t·enJI e11t2rprt.;e Al? sol,ition

A kc'/ br:ncfit oft·,, altern ,tiv!! Is t:•a i: cre:i:=s a~ c::en bidding proce~:;

ConJ 1icti11s ~ R=P to expa ·d cur cJpabili11,•s whe:i we already ha,,e ar. lnd11stry leadinb ;olut1•Jn !hJ'.,

when fully Implemented, can meet BC Hydro's requirements would require additional time, effort and

cost. Based on feedback and experience from other major utilities an RFP Is not likely to add

V3 lue to !be procurement process In this solution space.

Costs Costs for this altPrnat,v~ are e~prctP.d to l::e slightly highP.r thar Alt !rnJti1,e 1 to conduct arldition1I ¼er\ to cJrry-out an RFP.

Additional clnnge management and train1116 cos:s would l::e c~pccted if a proponent ot~e t."an were Jw:ird,)d the contra-,

Rlsk5 There Is a risk that a proponent with no or minimal experience In the Ut11iti P.s workspace 's WJd,ded a

contract and ac Hydro Is subjec ted to a !arge d,Jnee management xer 1se that eroces 211'/ cost~ 11·nr benefit

Trade- offs (within this alternative)

Alternative #3

Name

rnere Is 3 rls'< of e~tend1ng tne DEF schedule by roughl 116 months to carry out activit t. rel;ited t, a~ RFP. This effort •;.ould draw on rcsou rc •.; tha~ ro\.'ld t:e deployed to other Jtt ivI•1es

Similar to Al ternative l ;the implen·ent;ition would be staged in a wa•1 to minimize deliveP/ a-id chJn;\•' management risks. approach is Intended to mee" the business objP.ctives but is expectP.d to be more costly and time consuming without prov;ding incremental busin ess benefit over Altern-Jtive l

solc!!:on,

Description This option wouid lnc:ude 1mplemcnltng addi t ional funct,oml;t'/ within the two indepe d,nt ir tare,,·:'

Benefits

(eY:stmg AIP solutions) without e•panding tre user base or adding new modules. Thi would address some fur.ct!cnal requirements a: the sub-portfolio le•,e! for Genentio,, arid T&D investment,

F•v :~T 1ol-..t1r ,, t e fol o•.sinlci .~oul:! a~~• f

NJ p·11, 1•,•' :' add1t1or,I licf ntT l'jo purch 1se o' addit1oral mcdulc·s Continue wi,h 2 ,eparat-: lnstarc~s fo, T&J a0 d G (;.IT'1 ar~ d,fi.,rPnti

Pr,p0 rtIe~ / Feet/ r. do not ge! 3 solution Some improved fur~t1ona 1It1 based on 'T",1,,ng f,,,' use of t~a rrodul,;· a ready purer-Lei:! 1 e the optlmi.:er)

Key ben<!fits of ths alternat ve include u,er -base tam1liarity with the exIstirg s~ste'TI caoabili\1es a -d tl-':

lik2l1ho0d of shorter t!rnelme• fer 1rr'plementat1on P,is Jlternat:ve would ha•;e reduc-:d demanrl f.~r

bu me~, and IT resources, r~duc,;d change m~ ,a~•~mP.nt and sustdlnment efforts as new users or user

3C '-,·,:!·-:: C,·r&~11t ;ii P rt!!·! v~r<:c,s ::if .. :ir cu """' It'll i,; ,.. ... r •~.:!

BC Hydro Fiscal 2020 to Fiscal 2021 Revenue Requirements Application Page 13 of 2 3



r BCHydro Pmver sr,1art

This document requests approval to proceed to Defin,t,on (DH) phase

Costs

Risks

Trade-oHs {,./rhin this a f.-rm1t1ve)

Alterna tive #4

Name

Description

Benell t s

I •tpacts

Costs

Risks

Trade-offs /within this alt rnaft\l~}

g.-c~ps •r.o,.!d r:t be added Dev~·opm nt cf the ·.ralu = frariev.ork ar-c -,a-,:,1 pron,~.; 1mpro·,'c'r.iei·•

would s'.'11 :ie po,sible a;;d existir5 Jser; wou:d get ,m,iortanl ad,J,tion.;I funct1on,11ity through h2 potf~lic opt,m1n11011 capability.

F :· ther d·'e-:-: li\:cstnient ir the ind-.:~er·d,_:nt ;1 $tnn.:; afjiiiiiiiiil r,i;;;:;r,, t,.1C::"r s .... 11t•.~·f"I ,,,i!

n~'cd tc t:e r:-anJ5c,d ;epantely v.ri,h wi:i ~rea:~ ch;illePges for malnt3inlng cons!1tet1C'/ a~d Jci:s ~;;;e-1.11!·1 a' 1o ~, u Jd· 0,f; acr-Js:; tr~ port'r:>I 0. tJ ':)-: rade. r~cr.•~:~~t rr-.H·ai rn~~'it gr::t;;$ w· 1 r-o~ f'J _ 1 ..

Jr.tel:izt:r,t .,al .tier. to implenent a VJI le framc!'..✓ork RC Hydro Ni'J rot rav= a s1"'5.~ 1/5te, fer

ir1,Fs,, f-l ,t p .. 3r~n,,,g ard pcrtfolio optmiz.3"'1l)ll Pr'JcesiC.:. eff1c;en :~'i I .,~ ">-d t:, :be s'11uticn ·1,i t:·~

ili""tt::id to tt:-:le relJ:cd to pcrtfollt"> opt rn1z,1t;"r

Ccsts f"'~ t1:s al•i.;r'\Jt11,eN~u'd te lc'tler ti.a, t~e r~co,nmerded J.t2r111•,4~ : ... t t::: t-e r 0 du· ":! 5::c;~;

the 1mplernenLit1011

Outcomes will not address the objcct1vr;; of :h,s pro,ect. Del,v-ered 1olu11cn Jrder tbis alt rnJt.•,< s nc: scal;iblr (to support non-electric portfolio er ~xp,md user ta; witnln asset m.ina r>ment) w1thou• f _ -'.~='

dir~c: 1rv~;t1nent N Jn competitive, p,~ccrnc1I approach ;r J~ increa1e t'ie total inve1tmr, t c;;:;

F1r.Jr.c,1I b~nelits f-or e ,abling p,Jrtf:il10 op 1nin~:1'Jn fc, as;?t mJnJ\P'tv• t pc.rlfJII ·~ r2'1 te ,~3li:-'•'.

bu~ this w'i! nc, ext2r;d tc ctht:r portf io .,.nis Jil ~rnJt ve "'' ..,ot ~er •,e tr e same ie•1:I cf p ·cc;,;;

eilic, •nc1l'S er the transparensy/st:md.Jr•:J1;Jt1on be, cf,15 cf a cor,mcn entPri:;ri ,, 1p;:,rnac:s

Status quo [Inves tment deferral)

Continu e usl. g tt-e existing interim tools and suppl f'mental sprea she~ts u1t'l ec H•1dro hJ; omp'et,,d ,ts ERP transition to SAP. NA

The e,(1;t.ng ~pp, oad, ,e11e; h~. ,11•1 or. rra.., _.J po .. es, '" a ~c! m31<;q1.1:F~ S/, ~,..,., fLn -ncn 1.,•, , , -,01u, ,

,n,,e.:;t 1nt 3t'r,bu 1.~ a"ld ma1<2 pn<lf l11J !t.?•1et tr\te">tm·?nt do?r.:1. ·or-) BC H•1dic t:J'Jlc: ~t,e st=f: ·r .. Ji3

2014 t:, 1-pr,,•-, 11 f\:r\C On.-i11ly w\tf-\ 1 ,t .. ·•nr·,~ ,Ci' t r,r'. bu '":t.:" ~r,...,·,, .-'.'' 3 lj r-: < cf int!?r,1 • )01s, a--.!

spre,1d ;h2et; ar2 s~ill not canfgu·ed to be efficien t er ccmpl •'>!ly effJct,ve ,r merUng O'.!r org:1"1~.31 :,r, 1

obJect.ve; (e.g. mJ'<mg the right 1n•,e~trnents at th= right t1rne ton J.«IT'1.:·1 val~~ frorr cLr a.-i,•,I. •_, a

crown corporation with overs,ght from a •J•illtles cornmlss!on, this appr0-1rh i~ ur1•,kel1 to rerrair

acr.eptdble over th • lo11g terfT'

The cost of this alterna tive is much lower ~ran the recommended alterna t ive as the only required cos:s

are those associated with negotiating a, ex t 2n;lon of the

NA

Busines process efficiencies wql not be fully real,:eo w1tl-iout a ;oluti.m to 11~plement the,.. A vai•.e framework co.i!d t:e develcpe on its own but w:;•J!d bed ",cu't !J p,, .'CJ!ly acply wii"ou 3~ ,n, •11 • ,.,,

s:il1.,t1 n thr ,h wl-i!ch • c •~ 1 e impli!t"" t, ,.J

Recomrnendation and Jus•ification

r11. ~t;;"Jr~ ~t-.E CL '"en: svlut10n ~c :neet t;,e de'?ned t.ius1•,~"'; ob1cct1'1t.s fcro erilf!rpnsf! .ii~: 1n ,c t, t=,· t p 0n;0b 1., ... ii '!·P ·

t -~ j ,,i:-l')CfT'IY-r.t a,..d pl~rn ntJt tJn ,·,! a ' .. 3h.J:°? fr~'11;:lh r'~ Ti-- 15 3 t·rna· ·,~ t~,· ;.Jcnrrt· ~~"!? b•1 rr- ~=r'l":t,tP 3-c

r~qurrement., a,~d w'II pr 1' d, lon1p~r,., effrc1~:1cf a-,d frJrc .JI b n,,fi'..i b; ;tr~1"'ll,n1ni; pr[ 0 - ,, 3, j en3bi "i!l 2~

JbJe-•1,e ,rtellg~'lt apcr~,irr to cp\ m1:1Pg trie scc~e a-,d tirirg o' ,r•,~s:r•<c!rt; foe lr,picrc~t,t 0" Pt,3se o' tr~ project can be staged to mltgat? tr.e r;s!( cf al:gnhg t:-e prcc~H•JS a d ;olut1or 1sed ':Jy n,1,lt1ol" t:ser gr:,L;:! P• 'r,111Jr•1 ·ev1ew by the E'lterpr ~P J\rchitecture tear-, has 1r.d1cat d t:-ia! tl-e technical solut cri rt>qu1rnrnr>nl, 3' 0 m r ,,r 101,• Tr.;,

reccn,mend~d altern 1tlve w~5 endorsed ~t t~,e Executlv'! Te3..., meetin6 on Jun<! :2 2•) t8


--



w BCHydro Power smart

This document requests approval to proceed to Definition (DEF) phase

,\- cur :-...:r:-en! soli.;f<;n pro 11id :r i3 considered indust:-·1 lcaJ;ng a:".d r 2ccrrT'c1:1d!:?d b't c the,. ,...,. J~'~f util;ti-.::s, ::,nc:::..,-:Lng, 3 "'l

Rr:P (I'll 2rr 11 :v? 2·1 i:_ rct e.(pPct =;d to pr:.•,iCe a:-1 b, <nr:· - !:.~r--::'lc a-d co-es a": 1c!,:1--:or 11 ~T·,~ a-:c ::c ~t ~r j r,3 / c~:-,·e

mcie r:s'c if r:-ie ~.-~•=2~; s net man.:ized s2Jr.il~:,:sl f

,\.:!d'r.g capab1lit',' to tr: 1nd"pender.t instances oft~.~ curre;,t s:;lut,<Jn f Y selecteJ gr::up, ( ~aernati·,e 3 ·. re=:;:..\; ir :-2

need to continue to maintain multiple so lutions run b·t different groups. This approach Is not aligni!d ,,.,ith dril'.''s a consi;tent approach t:i enterpme in·,-2stment d,:,cisions Def~rrinJ this ir.·,e;trren ( \I· rndt:v" 4) r,:d~~es th0 ir·i:remc:r.r ,I effo'"t cf Alttrri 1trvl! 3 and also req1J1r-=s the org,ll"~1zat1on to 3cc1?pt ttia~ businPs:; gr cup; v.:!I c Jr,tm h<1·;e ind~picnd,;n: 1nvestmt:r1t pl,inning solJ,1ons ,ha: do rot mc~t the de,lred b_s'nes~ r~quirer ,;nt,.

Recommended Alternative !

Name

De;cr iption

E <p,1r-.J ae.c ,nt~er,t•' the curr _rt AIP solution , to adcress ke'{ bu;,ne;s r~q Jir~m~nt,

Wor~ d re(tly with to: D-'v0 Iop a Value Frameworr

ExpJn J/evoive the use of the curre·t A.IP ~~IJt on f:,· ,re e<1t,:rprb~ Use a st,,g,~d 1rnpler1entat1cn to, 1r.;16,, ris'<

Scope and Delivery Approach

High Level

Scope

20"!. ,_U lS

i~•"ilrlHP ,.,-:'ta:;~ '~-

Th, '< ~, componerw of the [J.,r,n. •ion ph3:;c cf t~ .; pr.JJ•.c• i11.-1utk Conduct prel1m111ary r2vi2w of the high le•,el ;olution ar· it 0 ctu,, J3,css" tt?grati0n r.eed; J",j

,al1dJte archit~ctural assumptions arc constr:11nts Ident ify key resources tha · will be rPqulrt'd by tn2 proJ.:ct fer the lmpl.,mentat,on phase Conduct work;hops to validate the curre:;t st3,e bus1r,(: ;3 proce;;e · ard design the fu:ure ;ta\': Level 1 & '2 proces,e; for the key stakeholcf,,r g·oucs (A;5e1 MaP>g~rren t groups, Technoioi;v

;:;;:et, Properties). Gather, analyze and refine the detailed fund1onal and no l1Jnctional reqt1irernen t~ with k2•r stJkcholder grou;is as an input to t:ie dP ,Ig-1 activiti es. Nee~t1,Jt.0 3 cortract and appro ich d·r"ctly w'th

Develop a high level rnlu t1on design O,,velop a delivery roadmJp w;th a ;t;igd cel~3.:;e plJ fo- tre lr,pl,,IT'Prtatlon phase

Otrer ITDSP dehverables as defined Ir tre ITDS0 T1iloring Worl<,nee, incJuj111g :re t.rcl 1t~c1.0 ,,,,

Definiticn Document. DetJiled fu Ktron,1I and Mn-fun -ct 0n 11 reqvIrer· <:nts. prcci>:w d.,.;,6n

docurrentation, suppo-t Impact assessmnnt, RACA, PIA a,d the I 1j:lcrnentJt,on c ar\ 0 r tusires; ca;e, detailed _chedule and e~, ,niatP,

D--;•.i::1.::~~n=nts::q:,r·se1.t.3\.2fl'::::n,,e·.,,1 ◄ •3.:".:(: ,."Ir lf"" •-3- ., C1 ,-:...1:;--· .... , .. ::J.r- f

c•••for'l1!r g obJective portf:llic o~ti•rnn\:o, r:e frJrr.C'J.,Or~ wil· argn 1,1:h (2.'f Cu iltl -> ')I,# .t .-L~ t-. ~ .... ,:...;.; t ,:::• ,..,,e:>t · ,~ r ..;I..

and benef,t; are considered v.he n•akil\is ot!c ;I,:;n.; T'· s ,sork is beir,: cor.e ;.i'.",;, fr,0

proJect to c<1able leverag;,,g ve!1dcr e~Fen~r.c 0 3-d :;,-_,t ,;g libr;;-ies :;' fr'ct·•--, t'n:

they rray h,·;e de•ieloped for s1"1il3r c'i=r· '.:;

• U•1c'"rtd<e change manag~ment Jct,vIt.Ies :c enable the bu~iness to transit•o'l fr~:-r u-;Inp_ t"1;; n;'< -,a:Ti:i to tre v3i.:2 fn,~,",1,::irk

g; '1yd.Vi :onfidt.ritldl F"'nt~:j '/C(SiOii or t!--is 1Cn m,,...,r 1·~ - ;~ ::,.it . nj



- - - - -- -

Information Technology Project DEFINITION (DEF) Business Case This document requests approval to proceed to Definition (DEF) phase

wh2n a'.;s2:;si11g r oten ci:i l inwstrrent;

~ BC Hydro Power smart

:, enable the busir.eso to tram: l1on to using a .i~w cnt2rpr ,c !col for a;sct in ,,es tnirt plann;ng

Techn:1iag1

• Configure and implemen t an emer,ir;se ver;,0,1 of■■■■ /c one irllt!C,-dt~u ,c:luti,in)

Su ppcr t th, transfer of exis t ine asse t in•,es t r.i,mt plannirig data t J tre new sysl~'1'i

lntegr;, • the rnlut.011 with otrer key sys tems (I.e. S/\P, equipment cond1t1cn dat3ba;e,s) to

enable efficiency a-id :cn;i·;tency in data tr .imf ~r analy,11 anc re;:io• ting Delivery Approach

1 and i Rationale

Tris projt?ct will be ca•r'ed cJ: ir rnmpl,1ncf witr e.c Hydrc's 1- Deliv,;,1 I Stand-Ji'rl ~ract:ce (iff,5P) fr ameworl,. The projed expects to u,e a m,:<ed resourcing r,,odel that includes contractur, and employees across the impac ted groups. Specific resources that will be required includ"! bu~ines·; proc~ss

designer~, changP rnJn.1ger:'~nt 51ipport, 11· s·1st.:rr d,;si{;ncr.,; atd 3rchitcct:; P~jlJUrc,~ so~nf '~ d:2c1Jion will be based on 3VadJbility o' 111•Prn'll resou::es to support t~e u i"'·-t Fer the lr.,ol.,mt>n! H,oq ?hase th: project Is expectinB t o use scheduled rele 01se, to rnan,1r,c r,s~

Benefits and Realization

Fi,1J.1ci.;\ Benefits

Benefit

Fina~c1al benefit· eliminating negative value investmen:s that do no t merit executioic and by shifting the timing cf investments to maximile portfo lio value. This Is ach·eved by evaluating liwestments wit h a valul-' framework (using cos';tenefi : analysis) and leverJging ,elu t ion c;ipabii ities to optI ,i:., :r;, porthlio

When measured

Affected KBU

lntegrate-:J Plannire;, IT Flee-, P·op, rti s

Metric

1) Expect ed value from Investment portfolio (meJ;urable once the v~ luc framework Is i1 pl,1ce)

2 Enterprije Capita' b•Jdget

Base line

l! I/ Jiu, of portloli,1 at project complet ion

2'. Capi t al budg,~t foreca~t at proj•'ct com r le t1on

Asses;mert will b" m;ide 'N1trin 2<! mc,-t. , aitr, pro,ec: comol-::t10,

:; ~her j ,· T hJP,ltl,11

r!'?.J, ~') er ;:f: 11s jc1;;:..rer: ~ ~ -i.;t ::J: t ), ~j


Goal

1 I 5 'r - 2C"lo mer.ease !n overall por t fcl:o value (finJnclJI + non-financ111 bi,nefits)

2 $20M $60M reduction In CAPEX In tre 10-ye;i Cdplt3l plan from eliminat1cn or shifting cf project,

Page 16 of 23


--Informat ion Technology Project DEFINITION (DEF) Business Case "This document requests approval to proceed to Def,nit,on {DEF) phase

Non-Financial Benefits

Benefit

P. 2~•1 tJtion.3l risk r ;,<:J11c t10r,

When measured

Affected KBU

eui

Metric lmi:;n v•?d putfr.lio investment pl.J.1nir appro,ch implemented

ec H1dro as,es,es risk and r.ot 1,;'1 2, sc has no obj:::t;ve mea-.; i ::' ri 1x1miz:;; v31ue fr~r, i~s a.;-et µcrtfd10 wh.ch ;s a prin>Jry 3;,_· rnanJg•'mrnl prnciplc

A-ae 'mr:nt w:ll 1.J 0 tr-Jd,~ 12 r.,onth after prop.Cl r.:::,nµI• t1-·n

Benefit

R~p•.t.1ti nal risk reduct;or bt,sln~ss con\1nuit·{, through consolidation of the v3r lous capital portfolio m1n1e,ement systems/solutions in U~€

When measured

Benefit

I-nproved budget man;igement decision; through th e ability to demonstrate the bu;111es, Impact of increasing er redu(1nr. burlget ; ever tir·e

Affected KB u

T&D /\11\1, GfN AM. Tcchriolcg-;, Prop e, ties, Fleet

Affected KB U

Metric

Nu•r.t,,r of s1~tcms/;ntut,ons fr,, document ng Jnd priontizing capital investments

Metric

Bu• rie'. s ·,al1.;e {a5 will be dcf1n~d hrougti th•' •1.1luP fr .imew ri<:) o, S

1,Wf' ;trr rt

Baseline

Portfol io 1 1·,e;trnent

planning base<1 en ri;k

Baseline

Baseline

~,1-'dsured at rro ject cu1 plec1on

· BC Hydro Power smart

Goal

Portfclic 1n1, estn1e·1t

pl mning b~,ed or

vi1~~

Goal

Goal

Clearly li"'k 1nvcstm~n·

levels to bu sine;~

outcom e·,

Ab1l,ty t.J r •' opvnIz~ capl!ll Not able Ahl,•

When measured

portfol,c, (" suf: portfoli os) u~de' variou, budg-'t rP.duction scena r:os

3C .... ,c·c :vnh .. ,11,• -11

0 ··rted i~'.":;k.,~ oF ,.,, "'••-..J"'""; :1 ~ ,(" , - t :I•~



Information Technology Project DEFINITION {DEF) Business Case This document requests approval to proceed to Definition (DEF) phase

Ber.efit

Effic1,-nc1 ga:ns (f~om add1t1 ,nal functi na\ity, sy~tem intEgration and aut,JrnJt.ng or strecJn11i ... ,~~;

fl' ·ess'.!:) w'il allow u:11,; t l more ~rcJct1vely manage t "s porthlic to dri1,e t u~1n~~1

13:'...ie b'/ cr~vine in;~st-1 ~fl ~(,_ r·dfl05 to ma:c in:z,_, 11 •., = d,~ten111ning the bu sin es:; ,mpJct; of different le·1e!; c• 1nvestrn,;nt, easii·t a15~ 1Vii1-ponfcLo impacts a;

con.Jttions chin6e

tr rouero:.i 1 tMe y~)'

When measured

Affected KBU

ln t2gra tcd Planning, Ti::r:hnology, Fkc:, Properties, CIPO. Fil'3"1Ce, O~•~r3t,cr s

Metric

Proc<?~scs where val•.Je 1s added by stre~mlininp,, automat'rg c (!,dbl,ng flJ • ·tiona',t·r

5._:: ,,j;'.'J ~,·/\d!1t,J

r :? :c '" ... , :t- s ::cir l = ... ~t ..:~""':r .. 1::.

Baseline

Currer.t stJt;, wrere t:~ act1'1t~ies 1r1 the b-.nefit din:;crit,tiC, c.rnnct C,! pr-r~r~rrr~r!


,. BC Hydro Power smart

Goal

Demonstrat~ the business outcomes frorr sh,f 111,!, oroduct,ve t:rn~ fror'1 ip~ff;denl, le,. valL,=: 3Ct 11t1n~

t-:, ,1IL.~ cr-:::,1~1r·1? -3 1 111l

Page 18 of 23

'


. ~


DEFINITION (DEF) Business Case v BCHydro

Pcwer smart

Thrs document request; approval to proceed to Def,ntt,on (DEF) ph;ise

Costs

Expected Project Cost

hpected Costs (S thousand;) I j F201~ I f2019 I f2020 I F2~1

Capl!a l

!OMA

Olsma ntth~'

Tot 11

--- --__ I -F2022 --

.. "'' ~ 1 Upper Lower

Total + SO% 15% - • ------. - -~ j

- I _,

- _I

N.;t~· Ccpital costs ircl_·-:i? oppro <i!norJ/1 5:! 5CO CK fur en •stilT'Oied lC-C per{:etcr:I .::ser /., t':J$ •;

Current Funding Request

($ thousands)

Lap! tl

Capit~I Con:i;,zeocyJ

Total Capital

OMA

!~MA Con•,ngency

Total IOMA

OSM 111

D11rnanl11ng"

Tota l

l

Prior Request

(Per Authorized

EAR)

( A)

Current Phase

Estimate at Completion

(EAC)

( 8)

Next Phase

Estimate to

Complete (ETC)

( C)

Esti mated Annual Incremental, Direct, Operating Costs (Savings )

Range Estimate ($ thousands)

Point Estimate ($ thcusonds)

Authorized EAR

Current Req Amount

(O-MC

( D) (A+D)

( E) -- ----------1 ....

-Ccs,s

'"' .oc•oted with license extensions fer the existing solut; ,,, w/11 continue to be allocated In the IT Operations s~stoinm!'nt budget (these are r.ot co.-,,d,,- 0 ,; rr • ' t, ,,

~: 1-1 .... ,. ~f"'f Jr.,n•11

;i ...... ~.o ~c .. ,;i!"'"S!.:◄~ r-~~·1·~ .. c•--.:rt , ":!1°1 ' '



-- --- --

Information Technology Project DEFINITION (DEF) Business Case This document requests approval to proceed to Def1n,t1on (DEF) phase

Expect ed funding sources

T~i! Requ=sting KBU (Integrated PIJnnir.t arknowledG ; :rn: 1n(r~'l1ent2I O~.!.l. ls requ,rd tci s~st3:n t;;:s

1- 1ti;,t,.,e Ongoing soft·..v:ire \-:'ldor m~int-'f'.ance arid 111pp"rt :cs'.s ,,,q, b2 co,er<?-J by lntecrated Pl1n111t,g

BC Hydro Po1Ne' smart

,nc~gratc· .. t FIJnn1ng T12.y ,le-: ?: r=cc,-e' a pot~,or er t .... ~..i::: .:c~ti fr.::t'!"" cc--e,. \..Se g".: 1.J!25 1 _ l h!"ol:::,ey, 'F ~ :~

P,cpe:ti•!s) i:i proport :n '.:J tl-e r.u!T'ber o'. Liser, lrlern;;' T1xnnclc!','/ iJJt::por. r2:cwc~s ,,.,,11 c,)r" •JP tot;.: ,••red through ths: r~cr cl ·u•, op,0 n1,ng bu •~e?'.

Resources

Resource Type

BCH Gusiness

Roles

Project li1i,iator • F fOj'~CI Sp• ~' ;,

P ·ojC'ct Cus>n•~

• Subject Matter Expert ( 10)

• .)ubjecl ~ 3t!er E:-q:, irt (S1,?n~r~t1,.:r. \

~ubject :'v'atter ~x;;e•t (i'rcr:-'rt "·1

SuhJect Matt:r Exp.:rt (.T)

Subject M3tter Expert (Flo!et)

Notes

And•; Dad~·, ~,,aur, en 0.1 ;r-.~r ,1 <

: e":?°< V, s. r

Tna L,u Jare'. Za,: J

Martin Fi;h

03•1td !1.1;:Dcn>., _

Aii.:a Pres:on

6CH lnfcrm,H1on T :hnolcgy IT Program ManJ(\Pr Mark Chrl,t.lJ'1iiln 'ndr-:"1•,v !<!ri

SJlm.a, Sh3~ic

~i3da K >'llC ,i

Ser.;iCE Fiovidet~

Contractor;

Schedule

Phase

Initiation (!NIT)

Identification (ID'l'

Definition ()EF

Implementation ('M?)

Phase

.:_,:: L l:• T.trr,,cJ 1 ~,1..:'•U ~ ,>,-: ... ~,

S0lut1on rct1ite 0 t

Enterprl;e ArchltP:t

• SJJStJinrnenl ce3~

• SAP 51 L t.dlllill!r" ,'.r,,1 1, )t

• Lh,r-er-..,an.1}?. rrr--• .::~~;

• Cba"~L l\n,1ly;l

• Te1us

• ProJe. M 1 .ig0 •

'< ,wen ( p> 1,1

CJ- ~I Wa•:

W•nd 1 Fo<

TEC'

• B,i:;1ne ; a,od F; cc:; Andi 1st, TED • Produ.:t Function.ii A,7,1'y,t (f,om TSD

tc► ol vr,ndor) T3C

Notes Start (YYYY.MM.O0)

End (YVYY.MM.DO) (Complete, Current, E.;timated)

Ccmµlete

Cur•ent & cof'lple1.rl] ur:e• t:ce Genera:,or

Opera_ting Mocel prog.am (.3M-02-l4)

"' lS c; 23 201902Cl CL"-=r~

0 tc {VVYY.MM.DD}


Notes

Page 20 of 23



(, BC Hydro Power smar I

Th,s documl'llt requests approval to proceed to Defin1t1on (DEF) phase

CEF (Key Milestone 1)

D:F ("/..2•1 Mtl~st::>ne 2j

D~C (~e'! l,ltle~tOr'C S)

DEF (KE'/ M,iestone 6)

C':' ( <e/ :,,,,.,.,st.:ire 7;

In vestment Risk

Risk Comr,onent

Bu~lness Risk -

ltkl'lihot.Jd tc d "lh?ve oui.comes

Technology Rl~k -

1\1.iturity and stat:I 11ly

.:>f lcchnolt.JB'I

Deli very Risk .

Complexit•/,

,fopend ·ncies, chang" manag(!ment,

contrilr.t, firJnr."

: ): ' ~l L T•"T'rhr·J.,, s,:1,,,..

Definition Kick-Off 2018 07 23

DO:!t3iled functional d,d 201!' 09 27 n n-fJnct!,,,,al

rec.!_!1_:~menls ~or::>•1,J Hi;ih Leve: 00:!S:g;; 2')11 ! t n, Ap11ro•1~d

Gate 3 Full Fundine'. 20181!1•

Ar,p.-0•1al F.2·,12•;, C~l:nit'on Compl•••~u ~1.) ~q I) I F

Nature of Risk (Include specific risks if .irnown)

Scoi;:e vJria•ions a'1d

implementation roadb!oc~s (2 g. business readiness, erg cha~g;,s,

Executive support) car cause

;chedule de!a'/, which CO'JI j

turn Into cost overruns

Minirn31 rumbf:'' of apr,I JI.le '

and i11tegral1cr p0i,1ts 1mpact,•J is weli es:abl1;hc 1

with multiple ut;lity clients

ha•,lng hnplemMt-"d a si,-,iia'

solution tc wha'. we are s~ck1n,·

Ch.mge management ir adopting new process~s ar,d

using new tools. Staging

rele,J~es to alig'l with tie phnning c·1c!es

Trere .s also a d,!livery riS< w ~h

em;11rf~g busin•s; rescurce;

witr a higr nuniter c'

com;;ec ng in,tat ,,Es

Risk

Ra t ing

5/1'.l

e:- .dr, cr-l1d~I"'• 1·

Act!•~n.; and Corcdit1ans fr:im Gate fsevae'"' Completed

Potential M it igation

Project man J (l •r to e1tabli;h c!ear sccpe bcu n t;irl es and

steering co111mittee will be in place tc support cross-b11s1n1", d,•rIs1ons that ma•/ put pr,:,ssurc

01 pr J ,c l costs

~-'lJ• "t t2arr ;,ii w~r\: wi"h t-:2

Erterprlse l\r~h1tect :c ensure

tre overa!I design cornplit ·1✓ itr.

BC Hyd10'5 Jrchite<tJ·al 1trnrl 1rd;

Busine•;s lead and proj~ct

mJna '•'r to work c!osely with tha ,te•2nn[l committee 3nd workine

gr:::up and the Bu sines'. Ad,1;01y

Tear., (BAT) to er.swe change

mar>agemen: plan I; in place a~~ there Is dear co'llmunicJlion 2r.d

suppo rt r •gardir.g cut-ever to ne·,- proce;· ari ;ipplica·1or

Tre project team has rdert fiec: re~oJ·ce rrqu1'e'T'Prts d,,nng tr, •dcnt•f.cat•on ~t-1s~ T~c'1nC Ct;/

re::0 1 ... r:~::. f'a•, ~ beef" c:01,firr ,t;d

for t"'e Definil!cn PhaS2

n-e Projt>ct 11,1 rager w1I t:e

•;,cri<ing do;ely with the proi•.:ct

s;ior5:::r a-,d the impacted

business groups to confirtr

ds·,1gnment a' bus1ne1s 0 eso1.. :e.;

Resid ua l

Risk

Rating

3.'10

3 l .

P• ·: .. ~ '~~ ... -~.::ft'ili•:!C IJIT'l'f1 H•f)lt 'r\ 1r 11•




C BC Hydro Power smart

Thrs document requests approval to proceed to Oet,n•t1on (Oh) phase

Risk Component

Readiness Risk

Bu sine~, mJturit r capacity and

prep1redn, s

0 11erall Investment

Risk

Summary Risk

Statement

Nature of Risk

(/ncf'-'d: s.Jecific risks if k1Jown)

/l,;;2t i1we;tmt'n, plv,nirg 1.

considered n•3tur~ al BC H'{d,J

However, dJe to the f.Jct tha:

the \/;iriou, stakeholder grJu;:>s

have differe,t appro;icht'S

tcday, rcddines:; le'✓ e:s

(capacity, preparedness) to

adopt and align may net be con~.sterl

Risk Rat ing

5/10

Potential Mitigation

f-, tr; C'ef <11t er p~-~c- T'r 0

rrcst Pk~ly oc•,•crri,~ ftcm a Ccla"!' ,- t"l2 cc-r:rr~at:or r/ tusmf?~s

r -so~,-ces we id c~ a cela 1 :n the ()pfrnitinn °hase ,ch Pd vie Ii thi,

·,-,ere to cc:\.', It mJ'/ al~c 1mp.1ct

t •~ i;roj •rt bud6et 1~'ilr.h co•J-' t··gge· t:.e CJ,eed for an EAR r:,,•s .:i,, to s"c ire add,t,onJI

lundt Pi:, Ea;:,, er,lFlgt1rr.crn cf ·.J5::!r g~cc..,:l

will be carried 01,t In th~

Defi111t1on phase, includinf,

St!tt ing r2sou 0 c2 expectattorE,

vali d,1t1ng requirements and

r ·11ew•ng key bc;sines, proce~;e•; ard opportunities fer al1gnm •1\t

~roj_,:, r'.lrJgf'lr wi!1 1~c·rr fi u"-~

secure the requ1rPd rescu,ce; icr t~e ITT'piernPnt1tion ch.hi:-

Th s project mcli.des t~e rW<J 1dent1l1-:d ab(:',e with a, aggregat~ risk scar~ of S.

Residual

Risk

Ratine

T'i2 Bu,ines, ri,k i, assessed ~t Le•,el 4 It is s:il! ~cn,ldered uni' l'iy ( lOY 3C% 11~ 0 1 hocdJ th3t

the proi~ct will fail to acrievc t,·e e~p'"'ct-?d b,~nef1ts (ies; th3'1 20"(, 40"', 1rn0Jc t) part 1cu1a rl ·; with multip le benP.fjt sources ld~•nt1f1ed

The Tcchnolo~y risk 1:, s1s,1•~;ed a· Le·,,;!~ The technolog•1 is con;id,~red relatively matur;; :ir:l

ec H'fdro has t 'e necessa~, ~ ,p~r :1 ;i: a1c exp enc nee to support t~e l'npleme-tat1on

The O i'1er1 risk 1.:; r!.,:;es~-?d ;1• Le-.~ c; I ~ ccr ,,CP!"~d .:;:o.;;'itt:'1.- {3fl 1'> 5 u.;} t~a: t .... fT:? ,1,· 1 c~ 1

20"' 40% cost rmpact dt.?. to ,:hanp '1Hr'.J!; :m ~nt ch,iiteng~; Cl.~ tc th: ir•1clv2ri2nt ~f

multiple busin2ss groups 111 ti'.e moJ~ct

"'c RcJd r .,.~ rLk <.a as.;,::s:~c ~: .c·.ei l \'i':1 prCjPJ:l ;epcort ..,.or Sr Le-3(!._,5 2:i:.! ;r•~ 2ng •sement fr:,n -e~.re nrJl,., 1 er t~;, '<ri·t bt.r>H ~r; gio• ... ::'l 3.S Nell a> 1i t~c :ii\ al r-es.,~r 1t i con-;1der~ ,-:: ... , 1!k.,', .... a• err tr-? ,~ l-, ~· =~ 1 •)d '>•i· ,·r "', ~ " ~.:it,.,

a-c )l.: :,1ir ~rit r:.l ... 1., -I~ C '•,..,I

T'"'~prOJ~Ct!)jU:>~lfif:'11t~-~d.,. \i..._ ,.: .. ,ctt: 1,..- ... )t.:;", -='il"''.1f••~J.hc4-- 1 ri, Gt.,

rh.!ri•umlc-.,_·~fc:,e--'lr, -P• ' S'•• t Jr ... ~> 1 1,1 ·,'· ;~ 3 1 J. t ?. <.

c ,n~ ono:-nt) ~-<P:io•1y '3 .. ; t.:; ~r? • - ... r'1 'b-1 f,,,, >~-'" 1'- ,,,. 1 ;:.- -~ ·; ~ .. ,.). 1.,,""1er---=!11T.1t1L ,~ :::-.a··2 ~nd iso-li,,c'!

3,: .. '1:!roJ ~r,nt·c1 •:"ltJ.11

:,. ~~~~ 1'?rl C.""'; ~• (~I ~nr• "" rt; , ,t.•t i;"),ih-d j


I

' PUBLIC

Undertaking No. 30 Attachment 1

Information Technology Project DEFINITION (DEF) Business Case This document requests approval to proceed to Definition (DEF) phase

C, BC Hydro Power smart

Approvals ~

Initiator

Sponsor

IT Owner

Name: A;idy D3rby

S gnatur2: Notes {:f Required}·

Name: lvlau re-en Daschuk

S1gri,1 lur~ / J;.,!t.'(,_H/~JiJ:_,

fl.ame: En11 Kiudorf

SignJture

NJIT'e: Davor Ral.iog Project Del!very

~ IT Planning

Approv~r

CIO

EVP, Finance,

Technology,

Supply Chain and CFO

Reviewers

2CL-ll-1:.:

Signature: ~

Name: Helen Wh11take!r

5 l(t'J Ur· C..k.W~~

Marre K•p Momon

C. 1-1 w~ ~ -s,gna tur;;· •

Helen Whittdker or. bchal f of Kip M0nso11

Name: Davie Wong

Signature

Role

Proj,,ct Manager

IT P~DJ~ct Control;

r Pcrtfol o \lg•~·

1~ ,\dv1;or

Reviewer Name Date Review

(YYYY.MM.OO)

Arash l\tomer.i 2018.07.11

Laura S:01c-:s.:u 2lll8.07.I0

"a•, j 1,1-0on.,lr. 2018 07 \'7

=:::r;--;?-; .. \/'i"lgn .. 1r 2018.07.15

DC Hy1=": Cori· den! 1 :, .. -.~c;j iO:r'icC'l3 .::;' l:'115 jcc:.i,.,..,,... 1"? 1-:,t .:cr~r-,,ej


Date (YYYY/M M/00)

2018.07.2.i

Date (YHY/Mfl.i/OD)

20 18/07/27

Cate (YYYY/MM/00)·

2018.726

0;:;te (YYYY/ MM/"iJO)

2018.07.23

A

Date (YYYY/MM/DDi.

2018.08.03

Date (YYYY /rllMiOD)

2018 08.0J

Date (YYYY/lvlM/DD).

;.\ ,_

lnitlals

M <><.S

~~-

fa

Page 23 of 23

Documents

BC HYDRO UNDERTAKING NO. 30 · This pro1ect will s•Jpport and impl,,ment pP,:ple, proces:; and tecrnology ch.rnc'!S to enable a consistent, transparent and more objective approa