Comprehensive EAM for Electric and Gas Utilities IBM Maximo Asset Management in the Utilities Industry Briefing

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Comprehensive EAM for Electric and Gas Utilities IBM Maximo Asset Management in the Utilities Industry Briefing Slide 2 Agenda Utility Industry Challenges IBM Maximo in the Utilities Industry IBM Maximo Offering for Multiple Business Units Slide 3 Aging Assets Under investment in T&D requires $300B over next 20 years Average age of generation facilities puts reliability at risk Slide 4 Aging Workforce Workforce Strategies Workforce Strategies Knowledge Capture More Contracted Labor Partnerships with Local Colleges Engineers and Crafts are Mobile Slide 5 Aging application portfolio Develop Assets Network Analysis/Design Operate Assets Outage Management SCADA Metering Maintain Assets Customer Information System ERP System (Finance, HR, Supply Chain) Capital Projects Investment Planning Operate and Maintain Assets Outage Management SCADA Planning & Scheduling Plant Digital Control System Supply Chain/Material Management HR, Finance CPM Scheduling Engineering Work Management Asset Management Work Force Management Document Management Contractor Management Operator Rounds Service Management Develop Assets Network Analysis/Design Construction Work Mgmt. Workforce Management Operate Assets Outage Management Meter Work Mgmt. Workforce Management SCADA Metering Maintain Assets Maintenance Work Mgmt. Workforce Management Geographic Information System Customer Information System Develop Assets Network Analysis/Design Construction Work Mgmt. Workforce Management Operate Assets Outage Management Meter Work Mgmt. Workforce Management SCADA Metering Maintain Assets Maintenance Work Mgmt. Workforce Management Geographic Information System Customer Information System ERP System (Finance, HR, Supply Chain) Supply Chain/Material Management HR, Finance Duplication of Functionality Legacy Code Point to Point Integration Slide 6 Convergence of Information Technology (IT) and Operational Technology (OT) The business is depending on IT to meet the challenges of aging assets, aging workforce and aging systems, as well as, increased regulatory compliance, customer reliability expectations and system integrity concerns. The dependence on IT has created new cultural challenge. In the past the LOB have purchased OT to meet immediate needs without concern for corporate architecture policy. Now they have multiple silos of solutions. Regulators are mandating reliability Companies that look to the IT department to bring a competitive edge and drive the revenue growth may find themselves facing an unexpected roadblock: Their CIO and COO are butting heads Information Week, August 1, 2006 Maximo offers a unified platform to support physical and IT assets in support of increase dependence on IT systems across all LOB. Slide 7 Extraction Geophysical evaluation Field development Drilling operations Crude oil & gas Production Gathering & processing Mining Coal & Uranium GenerationDistribution Retail Customer Commercial Customer Fossil Generation Hydro Generation Nuclear Power Wind Power Emerging Technology High Voltage transmission Substations Mobile Inspection Work Management Operations Management Mobile dispatch ARM CRM Maximo across LOB CROSS-FUNCTIONAL & SUPPORT PROCESS AREAS Engineer & Maintain plants & equipment Procurement & Logistics Finance & Accounting Project Planning & Control Information Technology Transmission Energy & Utilities Value Chain Slide 8 Extraction Field development Drilling operations Crude oil & gas Production Mining Coal & Uranium GenerationDistribution Retail Customer Commercial Customer Fossil Generation Hydro Generation Nuclear Power Wind Power High Voltage transmission Substations Mobile Inspection Work Management Operations Management Transmission 300 + utilities worldwide using MAXIMO Generation (160), transmission (38), distribution (21), Gas pipeline & distribution (23), water/wastewater (120) 5 of 10 Global 500 Energy Companies 7 of 10 Fortune 1000 Energy Companies 17 of 30 Fortune 1000 Utilities Companies Energy & Utilities Value Chain Slide 9 Duke, NYPA, LCRA, Mirant, Calpine, Dynegy, APS, Entergy Nuclear, Powergen, iPower, Jpower(EPDC), ADWEA, ESKOM, Yalhourn Energy, Columbia Gas, El Paso, Bureau of Reclamation,Sydney Water, LADPW, Clark County 22% of Sales, 300+ Utilities Clients, Nuclear Generation, Fossil Hydro Generation, Gas & Electric Transmission & Substation, Gas, Water & Electric Distribution, Water & Waste Water Collection & Treatment Utility Segments Key Customers Key Facts Constellation To meet our business objectives, it is essential that we have a strategic approach to asset and work management. We selected Maximo as our asset and work management platform for nuclear and fossil Wynne Hayes, CIO Constellation Energy's Generation Group. Xcel Energy We strive for continuous improvement in our maintenance processes, and MAXIMO will be a key enabler for improving reliability centered maintenance. In addition, having a common system will allow us to deploy best practices throughout the entire generation fleet. David Wilks, Xcel Energys president of the energy supply Extraction Field development Drilling operations Crude oil & gas Production Mining Coal GenerationDistribution Retail Customer Commercial Customer Fossil Generation Hydro Generation Nuclear Power Wind Power High Voltage transmission Substations Mobile Inspection Work Management Operations Management Transmission Southern Company, NiSource, Salt River Project News Energy & Utilities Value Chain Slide 10 Adu Dhabi Water & ElectricityAbu Dhabi, UAENew South Wales Alstom Network ServicesAustralia & New Zealand Arizona Public ServicePhoenix, AZ Atco EnergyAlberta, Canada Barbados Light & PowerBarbados BIOENERGI Lule ABVsters Stads Kraftvrmeverk Bureau of Rec (US Federal Dams)Denver, CO Canjun Electric Power CooperativeBaton Rouge, LA Chelan County PUDWetatchee, WA Chilectra SAChile CINergyCincinnati, OH Cia Energetica de Brasilia Brasil CitiPowerVictoria, Australia Colorado Springs UtilitiesColorado Springs, CO Connexus EnergyRamsey, MN Consolidated EdisonNew York, New York Daya Bay Nuclear PowerChina Duke EnergyCharlotte, NC DynegyHouston, TX East Kentucky Power CooperativeWinchester, KT ElectranetAdelaide, Australia Entergy NE Nuclear OperationsWhite Plains, NY EskomSouth Africa Gesa Gas & ElectricitySpain Hydro QuebecQuebec, Canada Huang Tai Power.China International PowerUK LA Department of Water & PowerLos Angeles, CA Lakeland Electric & WaterLakeland, Fl Louisville Gas & ElectricLouisville, KY Lower Colorado River AuthorityAustin, TX Jacksonville Electric AuthorityJacksonville, FL Keyspan EnergyLong Island, NY Mirant Atlanta, GA Minnesota PowerDuluth, MI New York Power AuthorityWhite Plains, NY National Power SupplyThailand Origin Energy Australia PowerGenLiverpool, UK Salt River ProjectPhoenix, AZ Seabrook Nuclear Power StationSeabrook, NH South Carolina Electric & GasColumbia, SC Stadtwerke Chemnitz AGGermany Tata ElectricIndia Tenaga Nasional BerhadMalaysia Texas UtilitiesDallas, TX Western Area Power AdminDenver, CO Windsor UtilitiesWindsor, Ontario, Canada Xcel EnergyDenver, CO Yallourn Energy Victoria, Australia Yorkshire ElectricUK Keyspan EnergyBoston, MA El PasoEl Paso, TX GPU GasnetAustralia SPPSolvenia SantosAustralia Southern California Gas San Diego, CA Brisbane WaterQueensland, Australia City of BellevueBellevue, WA City of Surrey Surrey, B.C. Canada Clark County WaterLas Vegas, NV LA County Public WorksLos Angeles, CA Lyonnaise Des EauxFrance Metro Water District of SoCalSan Dimas, CA Orange County Water UtilitiesOrange County, FL Pinellas CountyClearwater, FL Philadelphia WaterPhiladelphia,PA SaurUK Seattle WaterSeattle, WA South East WaterUK Sydney Water CorporationAustralia Thames Water InternationalUK United WaterAustralia Clients Around the World Slide 11 T&D Clients Keyspan Energy Colorado Springs Utilities Minnesota Power Connexus Energy Enwin Utilities Barbados Light & Power Arizona Public Service Lakeland Utilities ESKOM ENECO National Grid DTE Energy Scotia Gas Networks Constellation BGE Salt River Project NiSource Duke Energy New York Power Authority Consolidated Edison Western Area Power Administration Hydro Quebec TXU Energy Delivery Salt River Project Cinergy El Paso Columbia Gas Transmission Duke Gas Transmission National Grid Michigan Electric Transmission Distribution Transmission Slide 12 Generation Clients Keyspan Energy Duke Energy Mirant New York Power Authority LCRA Bureau of Reclamation Chelan County Arizona Public Service Yalhourn Energy Calpine Powergen DTE Energy International Power Xcel Energy Texas Genco (NRG) Energy Nuclear Northeast FPL Nuclear Seabrook Guangdong Nuclear Power Group TXU Nuclear Dominion Nuclear DTE Energy Fortum Heat & Power Electronuclear BNFL: Chapelcross, Caldor Hall Constellation Energy Southern Company Fossil & Hydro Nuclear Slide 13 The Company Four-Service Municipal Utility natural gas, electricity, water and wastewater distribution and power generation 650,000 combined customers, 500 square mile service area, 1800 employees The Challenge Industry Restructuring Separates Generation, Transmission & Distribution Increasing customer expectations and regulatory requirements Leverage IT Investments with Key Initiatives Desire to have one system to handle multiple business units The Solution Developed Corporate IT Strategic Plan with Executive Sponsors Subject-matter experts coordinate usage of technology Standardized on Maximo for Work and Asset Management plus Inventory and Purchasing with integration to GIS, CAD and CUE. The Benefits Lower cost of ownership to manage all assets in one system Higher service levels, reduced O&M expense, Increased asset reliability Consistency in design and constructions metho