Microsoft Enterprise Agreement Renewal...1 day ago · Microsoft Enterprise Agreement (EA) What does it cost? • 3-year total price is $1,372,037.52 • 3 annual payments of $457,345.84

Powering our way of life.

Commission Briefing – October 2020Derin M. Bluhm, Chief Technology Officer

Microsoft Enterprise Agreement Renewal

Microsoft Enterprise Agreement (EA)What is it?• A 3-year agreement for Microsoft software licenses, subscriptions and cloud services

• Sold through an agreement (Contract No. 430-10632 ) with CDW Government Inc.

• Governed by the Washington State government negotiated agreement “Washington

NVP Software (ADSPO16-130652 06016)”

• Covers nearly all Microsoft software products and cloud services used across Grant

PUD enterprise and all business units

Microsoft Enterprise Agreement (EA)What do we get?• Ability to split the investment over 3 annual payments

• High volume pricing tier (Rate Class “D” – about a 20% discount)

• Rights to all updates and upgrades of products included in “software assurance”

• Ability to add additional software anytime, but wait to pay until “true-up” at annual

payment time, effectively giving us free authorized use in period before true-up

• Ability to add an annual subscription anytime with 12-month minimum use

Microsoft Enterprise Agreement (EA)What does it cost?• 3-year total price is $1,372,037.52

• 3 annual payments of $457,345.84

• Represents an increase of ~$100k over 2019 payment for final year of prior EA.

We added new services and switch from a per device to a per user license model

• Enables us to sunset 11+ legacy software renewals by contract end totaling >$127k

($88k+ in year 1 and 2, $127k+ in year 3)

Microsoft Enterprise Agreement (EA)What goes away?

Eliminated Legacy Product Replacing Microsoft Tool Annual Cost of Legacy ProductWebEx Teams $ 21,000 Slack Teams $ 1,200 Airwatch InTune $ 7,900 R-Directory Delve $ 3,200 Metalogic ControlPoint SharePoint Online $ 9,500 Metalogic StoragePoint SharePoint Online $ 7,000 MPlus Archive for Exchange Exchange Online $ 21,000 McAfee email gateway Exchange Online $ 11,000 SPDocket SharePoint Online $ 5,200 Misc SharePoint tools SharePoint Online $ 5,000 Nintex Forms (*drop in 2022) PowerApps $ 35,000

$ 127,000

Microsoft Enterprise Agreement (EA)What are the additional benefits?• “Vouchers” for Microsoft training, implementation support or contracting

• Pathway to move on-premise software to cloud hosting by migrating licenses

• Centralized management of the Microsoft services/products

• Enables IT to add new products and services on-demand

• Microsoft “Home Use Program” gives employees 30% discount on Microsoft software

• Licenses give rights to install on 5 devices (personal or corporate) for no additional

cost, including installation on employee’s home computer (tracked by employee)



October 13, 2020

Enterprise Risk Management Update

Team Structure

Insurance & Project Risk Management(Brianna St. Marie)

Operational Risk Management(Leah Knopp)

Quantitative Risk Management

(Bryndon Ecklund)

Enterprise Risk Management Team(Paul Dietz)

Damage to District Claims

Management(Tina Sisich)

Third Quarter Successes

• Risk Team Development & Training• ISO 31000:2018 Enterprise Risk

Management Standards Selected• Work Plan for Front – Mid – Back

Office Risk Management model Stand-up

• Reporting Revolution• Insurance Renewals – SOV’s• Operational Risk Development

Enterprise Risk Management

Mission: The Enterprise Risk Management (ERM) group promotes greater efficiency and alignment across Grant County Public Utility District by forming resilient financial outcomes and enhancing the organization’s access to capital through identifying, measuring, and recommending the disposition of beneficial and harmful risks throughout the District’s operations.

Vision: Grant County Public Utility District endeavors to develop peer-leading risk management by integrating the principles of Enterprise Risk Management (ERM) into the culture and decision making of its business functions. ERM will promote the success and enhance the accountability of Grant County Public Utility District by incorporating risk assessment into its strategic objectives.

Enterprise Risk Management• ISO 31000:2018 Enterprise Risk Management standards selected to

inform our ERM development

DRIVERS OF RISK MANAGMENT

Energy Portfolio

Front – Mid – Back Office

Stand Up

All actions tracked by a

detailed system wide Audit Trail

Ticket Entry by Front Office

Dealer

Approval by Front Office Manager

Back Office Verification of

Ticket by Verifier

Back Office Authorization of

Ticket

Limits check

Settlement begins

Limits check

Book to Accounts (GL)

Returned if required



Tickets can be returned if needed before booked to GL

Middle Office

responsible to enforce and review risk limits

and exceptionsBack Office

responsible for settlement,

confirmation and accounting.

Front Office responsible for booking and

executing trade.

Energy Risk Management Policy Implementation Update

• The ERM has been acknowledged by key personnel covered by the policy • Market & Portfolio Risk Modeling has been incorporated into EROC

Processes• The ERM team has been working to design and implement our Model

Register and our Critical Input and Assumption Roster (CIAR) to help us to identify and better manage model risk

• Implementation of ERM will occur through the remainder of 2020

Mid-Office Update Market & Portfolio RiskExample Document Showing GCPUD’s Market Portfolio and Risk Model Valuation:

Market Porfolio and Risk Model (MPRM) 9/25/20202020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total Sep-2020

Load Requirements xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xxGeneration Resources xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx

xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx

Broker Physical Forward Sales xx.xx xx.xx xx.xx xx.xx - - - - - - - xx.xxBroker Physical Forward Purchases xx.xx xx.xx xx.xx xx.xx - - - - - - - xx.xx

xx.xx xx.xx xx.xx xx.xx - - - - - - - xx.xx

Counter Party A xx.xx xx.xx - - - - - - - - - xx.xxCounter Party B - xx.xx xx.xx xx.xx xx.xx - - - - - - xx.xxCounter Party C xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx - - - - - xx.xx

xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx - - - - - xx.xx

EUDL xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx

MPRM Value xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx xx.xx

Energy View

HLH

LLH

Net Position

Detail View

MWh

aMW

Dollar Total

Insurance Update

• Starr Property Risk Assessments• Occurred virtually on 9/16 with great participation from District employees• Combustibles storage concerns have been addressed and removed from

recommendations (with exception of one location)

• 2020-2021 Insurance Renewal• All insurance applications and property statement of values (SOV) have been

submitted to the market for quotes (estimated mid-Oct 2020)• Estimating 15-20% increases across insurance coverages due to hardened

markets and other external factors

Operational Risk UpdateContinuous Training:• LogicManager – This platform will be used as a tracking tool to identify risks and

controls across the District.• Economics of Energy and the Environment – Fundamental concepts of competitive

electricity markets, their potential efficiencies, incentive structures created underrestructured markets, and retail rate design and the economics of environmentalregulation.

Projects:• Vehicle/Equipment usage for Contractors and Employees• Turbine Upgrade Analysis• Federal funding reimbursement options for COVID-19 expenditures

COVID-19 Modeling

• Extensive ongoing modeling has been occurring since March 6th and will continue as the crisis evolves

• Participation in Incident Management Teamand Executive BriefingTeam

• Participation in Systems Analysis Task Force

• Participation in Business Continuity Team

• Developing processes for tracking FEMA related costs

• Reviewing the effects of COVID-19 on expected GCPUD retail loads

Near-Term Look Forward

• Development of ISO 31000:2018 Enterprise Risk Management Work Plan

• Singles and Doubles over Upcoming Quarter• Complete Insurance Renewal• Continue Developing Power BI Reporting• Continue Developing Model Risk Register• Perform Key Risk Assessments

• Complete Stand-up of the Front – Mid – Back Office Risk Management model:

• Provide key policies and risk controls• Delineate roles and responsibilities

• Continue Development of Operational Risk Management capabilities

Medium-Term Strategic Plan• Implementation of ISO 31000:2018 Enterprise Risk

Management work plan

• Provide resources to risk owners to enable growth of risk understanding, influence risk ownership behavior, and promote mitigation of risks through establishment of risk controls.

• Develop and extend our Risk Library using Logic Manager

• Develop and leverage strong ties between related departments including Legal, Internal Audit, Safety, Physical Security, CIP, Corrective Action Team

• Market & Portfolio Risk Communication & Reporting

Long-Term Strategic Vision• Risk – The Effect of Uncertainty on Objectives

• Provide Stable and Predictable Long-Term Rates• Maintain a Strong Financial Position• Operate Responsibly and Safely

• Risk Management - Coordinated Activities Intended to Direct and Control GCPUD's Risk

• Development of Risk Management Framework

• Complete Implementation of ISO 31000:2018

• Enterprise Risk Management Care and Feeding

• Review and Enhancement

GCPUD ERM: Budget June

• The Risk Department budget is dominated by insurance premiums• Based on June 2020 Actuals

2020 Budget Q2 Budget Q2 Actuals Variance Fav/(Unfav)

Enterprise Risk O&M Directs 37,300 18,672 4,965 13,707

Insurance Risk O&M Directs 2,283,750 1,141,896 998,914 142,982

Total 2,321,050 1,160,568 1,003,879 156,689

2020 Budget Q2 Budget Q2 Actuals Variance Fav/(Unfav)

Enterprise Risk Labor 228,186 107,222 102,665 4,557

Insurance Risk Labor 303,209 149,105 91,425 57,680

Total 531,395 256,327 194,090 62,237

https://app.powerbi.com/groups/me/reports/f7d7b873-1e48-4ec6-97e1-817dae6c863a/ReportSectionca67fcb1f4bd97d22fd8?pbi_source=PowerPoint


Grant PUD Commission Meeting – October 13, 2020

Grant PUD Lands & Recreation 2020 Q4 Business Report


Departmental Purpose and Goal• Lands & Recreation manages Priest Rapids Project lands and

recreation facilities, and provides company-wide real estate and geographic information system (GIS) services in alignment with Grant PUD’s safety, financial, and compliance goals.

Q3 Business Review • Safety• Recordable incidents = 0• Non-recordable incidents = 2• Safety meeting attendance = 100%• Job Briefs = 40• Job Site Reviews = 6

• Regulatory Review• FERC filings by Grant PUD = 0

• Filings by third-parties = 3

• FERC approvals/orders/notices = 0

• Summary of filings: • Complaint about PRRA boat launch

congestion• Complaint about Vantage Rec Area O&M

• Withdrawal of complaint about Vantage Rec Area O&M

Q3 Business Activities • Property Services support

• Wholesale Fiber – Easement acquisitions and permitting for current and outyear projects

• Power Delivery – Land and easement acquisitions and agreements, property appraisals, land-use actions, approach permitting, etc. for DB2 projects and Quincy and Moses Lake transmission expansions

• Power Production – Easement acquisitions, agency agreements, and permitting for Priest Rapids Right Embankment Stabilization project

• Internal Services – property assessments/appraisals and lease negotiations

• GIS support

• Power Production - Dam Safety field data collection; Fish & Wildlife publications and Priest Rapids Right Embankment Stabilization mapping; Environmental Affairs data collection and analysis, mapping, and signage

• Incident Management Team – COVID contact tracing survey tool – went live 9/21

• Wholesale Fiber - mapping and analysis for grant funding

• Power Delivery - Esri GIS conversion project

Q3 Business Activities•Shoreline Management

• Ongoing encroachment activities (buoy anchors, Colockum Creek roadways, personal property, debris, etc.)

• Implementation of Columbia Cliffs Land-Use Authorization (coordination, signage, monitoring, etc.)

• Approval of the Quilomene Yacht Club land-use authorization

• Termination of the Riverstone Marina application process

• Sunland shoreline windstorm cleanup –continued

• Developed Sunland shoreline newsletter

Q3 Business Activities

• Parks and Recreation• Ongoing COVID-19 response actions prioritize employee

and public safety

• Record number of visitors, despite abbreviated season

• Security challenges (e.g., illegal parking, noise, vandalism)

• Addition of Vantage Rec Area O&M

• Placement of Crescent Bar office trailer


• Parks and Recreation• Compliance recognition for the Crescent

Bar Wastewater Treatment Facility from Washington Dept. of Ecology


• GIS, Property Services, Shoreline Management

• Ensure business continuity by prioritizing real estate/GIS support of Power Production/Power Delivery/Wholesale Fiber projects

• Resolve existing shoreline encroachments and continue monitoring for new ones

• Finalize revised SMP Procedures and Standards Manual

• Continue communicating shoreline policies with adjacent residents

• Continue work on transferring historical tract files to File360


• Parks and Recreation

• Ensure safety of field crew/staff when operating and maintaining recreation areas

• Compile and analyze license-required recreation monitoring data

• Complete replacement of fire-damaged Buckshot Recreation Area facilities

• Complete designs and coordinate internal labor for Wanapum Upper Boat Launch float replacement project

• Resolve connectivity issues at the Crescent Bar Wastewater Facility

• Continue addressing safety issues in the Crescent Bar maintenance area

• Improve advance campground reservation system

• Consider options for commercial vendors for 2021 season

Q4 Forecast

• Safety Goals• Non-recordable incidents = 0

• Recordable incidents = 0

• Safety meeting attendance = 100%

• Regulatory Outlook• Anticipated FERC filings = 1

• Anticipated FERC approvals = 0 Any regulatory threats or risks =none known/anticipated

https://app.powerbi.com/groups/me/reports/879ef998-a59a-48d9-80df-37dd79b7e719/ReportSectionca67fcb1f4bd97d22fd8?pbi_source=PowerPoint

https://app.powerbi.com/groups/me/reports/879ef998-a59a-48d9-80df-37dd79b7e719/ReportSection9b55166916e110545c9d?pbi_source=PowerPoint

Lands & Rec –Total Net Annual Costs

Crescent Bar –Total Net Annual Costs

Questions?

Quarterly Commission Briefing 10/13/2020


Power ProductionStrong Performance……Despite Unique Challenges

Fulfilling Our MissionChampions of Safety … Guardians of Power

• Purpose: Provide safe, secure, economical, reliable and compliant power generation under the Priest Rapid Project Federal Energy Regulatory Commission (FERC) License Project No. 2114 while supporting the Wanapum relationship.

• Goal: Execute the aforementioned tasks while championing a culture of safety and operational excellence with continuous focus on the guiding values of safety, innovation, service, teamwork, respect, integrity, and heritage.

Acronym ListOne Playbook

• PP – Power Production• HPI – Human Performance

Improvement• PRREIP – Priest Rapids Right

Embankment Improvement Project• JHA – Job Hazard Analysis• WMC – Wanapum Maintenance

Center• ICL – Incident Criticality Level• PR – Priest Rapids• WAN – Wanapum• PRP – Priest Rapids Project

2020 Q3 Business ReportContinuous Improvement

Key Operational Metrics • Safety Execution• Plant Performance• Budget Analysis

Short & Long Term Focus• Maximo Update• Capital Projects• 5 Year Strategic Planning

Team & Next Quarter• Personnel• Q4 Forecast

Safety Champions

Impact of COVID - 19

Improving Virtual Capabilities

Safety Day

AcceleratingManagement

On-SiteImpact of COVID - 19

Working Towards Zero HarmFocused in the Current Environment

COVID-19 Response

• Administrative positions – working remotely

• Field positions - ~98% working on site

• Management – encouraged to get into field to perform JSR’s and support field employees

Data as of 9/28/2020

Incidents Recordable Non-recordable VehicleQ3 0 7 1YTD 2 11 4

Plant Performance

88.5 88.5

83.4 83.4 83.4

90.0

95.094.0

65.0 65.0 65.0

90.0

60

65

70

75

80

85

90

95

100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Availability Estimate vs Actual

Estimate PR Estimate Wan Estimate PRP Actual PRP Target PRP

Exceeding TargetCOVID Effects

P08 Delay

Plant Performance

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Project Forced Outage Factor

Goal <.43% Actual YTD Percentage

https://app.powerbi.com/groups/me/reports/e815b16f-c360-4617-b22d-37236f4cbbd7/ReportSectionca67fcb1f4bd97d22fd8?pbi_source=PowerPoint

https://app.powerbi.com/groups/me/reports/e815b16f-c360-4617-b22d-37236f4cbbd7/ReportSection9b55166916e110545c9d?pbi_source=PowerPoint

Leveraging Maximo PlatformImprovements Progressing

• Maximo Upgrade – Complete• Allow anyone to attach info to work orders

• Increases front line use and data integrity

• Foundation for later features

• Six Week Maintenance Schedules• PR – Complete

• Wan – In progress

• WMC – Next in line

• Scheduling Software / Resource Loaded Schedules• Engineering – In progress

Capital Project UpdateInvesting in Assets

Priest Rapids Right Embankment Improvement Project

• Draft EA Received – Complete

• Rest of License Amendment process to complete

• Construction Start – 12/7/2020 – 1/4/2021

• Wanapum Unit Upgrades

• W04 Generator/Controls upgrade – Complete

• PR Unit Rehab

• P08 delayed; expected completion 10/23

• Wan Powerhouse Roof – Delayed; completion 7/31/21

• Station Service Upgrades – exp. Start 7/1/21

2021-2025 Strategic PlanningSetting a High Bar for the Future

Purpose• Set High Level 5 Year Goals• Provide roadmap for annual strategic improvements

Method• Understand customer needs, market drivers and threats• Evaluate our competencies & areas of improvement• Set goals to close the gap

Cultural Benefits• Develop purpose around customer focus• Measure success• Motivate and reward customer-focused decisions

PersonnelPromoting From Within

Fish & Wildlife• Mark Woodward – Environmental

Services SupervisorPlants

• Mark Riggs - Supervising Foreman PR• Stan Havens – Supervising Foreman Wan

Operational Excellence• Mark Beattie – transitioned to COO team

Q4 ForecastStaying Focused on Safety & Efficiency

• Strategic Planning

• Complete 5-year strategic plan

• Begin planning 2021 strategic improvements

• Improve

• Ability to plan and schedule work

• Use of data to drive decision making

• Flexible use of craft resources

Continue Efforts at Managing COVID-19 Effects


OUR PLAN FOR DELIVERING VALUE TO OUR CUSTOMERS

2021 BUDGET PRESENTATION

Topics Covered

Budget Initiatives & Process Strategic Initiatives

Summary of Results Appendix – Scenarios

Keys for the Budget & Planning Process

Invest in Assets

Invest in Key Technology

Contain Controllable

Costs

Reduce Need for Future Rate

Increases

1. Provide value for current and future Grant PUD customers

2. Maintain the utility’s financial health

Major Budget Initiatives & Budget Process

01

Major Budget Initiatives & Process

2021 Budget aligned with customers’ top priorities:• Provide reliable electric power with few outages.• Good customer service.• Provide real-time information and communication on energy, use and outages.• Keeping electricity prices as low as possible.

Source: 2019 Customer Satisfaction Survey


Major 2021 Budget Initiatives:1. Grant PUD’s financial position2. Implementation of data optimization – continuation of process3. Labor / headcount needs to be balanced with strategic initiatives4. Refinement of Enterprise Project Portfolio Management (EPPM) for Capital


2021 Budget Process:1. Bottom up input from all cost centers for O&M and labor2. Chief executive officer (CXO) review and request for revisions3. Refinement of O&M and labor with cost centers4. Capital spending expectation refinement with EPPM and Project

Management Office (PMO) 5. Second round CXO review6. Budget for Public Presentation

Strategic Initiatives Overview

02

Strategic Initiatives Overview:Operational Excellence

Organization: Human Performance Improvement, Corrective Action Program, Continuous Improvement, and Organizational Change Management, that coordinate with Organizational Leadership and Development.

Defined: Operational Excellence is a mindset from which the organization can continuously improve, provide value to our customers, and increase our competitive advantage and reliability.

Vision:Every employee can see the flow of value to the customer and improve, maintain or fix that flow before it breaks down.

When something goes wrong, employees have the principles and tools to fix the problem without being dependent on management to provide the solution. Employees focus on improving, maintaining and repairing the flow while management focuses on growing and improving the business of the organization.

Results:Increased organizational reliability and resiliency.Increased visibility for meeting customer needs and providing valued services.

Strategic Initiatives Overview:Organizational Leadership & Development

Strategic Plan Objective #2: Design and sustain an engaging & fulfilling Grant PUD culture.

Mission: We exist to support organizational health by creating clarity around how we lead, train and treat people at Grant PUD.

Vision: To reinforce a people-centric culture where employees acknowledge problems, focus on possibilities and share responsibility for their growth.

Key Actions (examples, not complete list):

Education and Training – Leadership Training, Building Resiliency Series

Onboarding Orientation – Minimize anxiety and early unknowns, ensures early alignment & awareness of organizational culture, values & norms, increases speed to productivity

Employee Engagement – Surveys on organizational health, rewards & recognition, effective management skills

Workforce Development – Job shadows, education reimbursement, long range resource planning, succession planning

Strategic Initiatives Overview:Tech Roadmap

• Technology Roadmap is under refresh to incorporate lessons learned since rollout in late 2018, and to incorporate changes in direction from new business leadership.

• Budget reflects a slowing in the pace of change for technology to allow business and IT to stabilize and normalize operations for technology deployed in 2020 (CCS and HCMS).

• GEN2/ESRI will consume significant resources from IT and T&D in 2021 to enable successful roll-out in early 2022.

• Key opportunities in 2021 include Enterprise-wide Asset Management and Core Financial System refresh.

Summary of Results

03

Total expenses for 2021 (before offsets)All figures in Millions 2018

Actual2019

Actual2020 YEP

2020 Budget

2021 Budget

Operations & Maintenance –Total: $112.7 $126.4 $137.7 $126.6 $143.6

Electric System O&M – Total: $37.6 $52.2 $59.2 $55.7 $59.4

Electric System O&M – Direct: * * $20.9 $23.9 $22.4

Electric System O&M – Labor: * * $38.4 $31.7 $37.0

Priest Rapids Project O&M – Total: $75.1 $74.2 $78.5 $70.9 $84.1

PRP O&M – Direct: * * $32.5 $32.7 $39.5

PRP O&M – Labor: * * $45.9 $38.2 $44.6

Taxes: $16.8 $17.9 $17.7 $18.3 $18.1

*Historical breakout not

available

Total expenses for 2021 (before offsets) – Cont.All figures in Millions 2018

Actual2019

Actual2020 YEP

2020 Budget

2021 Budget

Capital –Total: $125.1 $123.7 $131.3 $140.7 $143.3

Electric System Capital – Total: $44.0 $57.2 $69.6 $61.1 $73.7

Electric System Capital – Direct: * * $60.4 $42.7 $60.7

Electric System Capital – Labor: * * $9.3 $18.4 $13.0

Priest Rapids Project Capital – Total: $81.2 $66.5 $61.7 $79.6 $69.7

PRP Capital – Direct: * * $49.6 $62.6 $52.4

PRP Capital – Labor: * * $12.1 $17.0 $17.2

Debt Service (net of rebates): $86.5 $87.8 $73.0 $85.2 $75.6

TOTAL: $341.1 $356.9 $359.7 $370.9 $380.6

*Historical breakout not

available

Operations and Maintenance Expense

• Operations and maintenance (O&M) expense includes both labor and operating expenses, net of labor to capital.• Total 2021 O&M of $143.6M can be reviewed programmatically in three categories.• Split by functional organization remains both largely constant over the five-year period and unchanged from

past budgets.

Cost Type 2021

Labor $81.6

Purchased Services $32.8

General & Administration $11.4

Operating Materials and Equipment $7.6

Information Technology $6.2

Risk $2.6

Transportation $1.4

Total $143.6

All figures in millions; non-operational adjustment allocations estimatedPurchased Services includes utilities

Power Production39%

Administrative and General39%

Power Delivery22%

2020 O&M by Functional Org

2021 Power Production O&M

Maintenance and Ops41%

Fish & Wildlife29%

Engineering13%

Lands & Recreation

8%Cultural Resources

6%

Wholesale Marketing3%

Cost Type 2021

Labor $30.6





Risk $0.0

Transportation $0.0

Total $55.8


2021 Power Delivery O&M

Construction and Maintenance37%

Fiber Crew31%

Engineering18%

Dispatch14%

Cost Type 2021

Labor $24.2





Risk $0.0

Transportation $0.0

Total $31.1


2021 Administrative & General O&M

Internal Services28%

Information Technology

23%

Employment Services11% Customer Solutions

10%

Risk, Audit and Compliance7%

Finance7%

EPMO - EPPM6%

External Affairs4%

General Management 4%

Cost Type 2021

Labor $26.8




IT $6.0

Risk $2.6

Transportation $1.4

Total $56.7


2021 Consolidated Capital Plan

Note: Costs exclude Internal Labor

$113 Million in 2021• RUN: Operational requirement to maintain current or core business/capabilities. - Something that is typical for a like situated firm to undertake on a regular

basis. Operate & Maintain

• GROW: Specifically done for expanding current business/capabilities. - Something that significantly improves efficiencies of scale or expansion of a core business/capability. Enhance & Expand

• TRANSFORM: Introduction of a new business/capability. - Something that introduces a new strategic capability. Innovate & Drive

$13,135 , 13%

$67,603 , 64%

$20,194 , 19%

$4,312 , 4%

Budget 2020 = $105.2M

Fitness/Purchases Run Grow Transform

$26,434 , 23%

$63,176 , 56%

$18,017 , 16%

$5,520 , 5%

Budget 2021 = $113.1M


$13,299 , 63%

$(4,426), -21%

$(2,176), -10%

$1,209 , 6%Current vs Budget = $7.9M


2021 Electric System Capital Plan


Major 2021 ELEC System Capital:• Fiber Expansion

o Expected to spend more than $11M of direct capital project dollars for 2021

• Design Build Phase 2o Expected to spend more than $26M of direct capital project dollars for 2021o 76% of the project dollars are associated with 4 projects

• Significant Facilities Worko Expected to spend more than $6M of direct capital project dollars for 2021o Major work for both the Ephrata and Moses Lake Service Centers

39%

40%

13%

8%

ELEC System, Budget 2021 = $60.7M

Fitness/Purchases ($23.8M)

Run ($24.6M)

Grow ($7.6M)

Transform ($4.7M)

Major Transmission/Distribution Capital:• Substations

o Design Build Phase 2 - Royal City Substation, Baird Substation, Burke Substation

o Mobile Substations (41MVA)o South Ephrata Substation

• Transmissiono Design Build Phase 2 - Mtn View Capacitor Bank, Red

Rock Transmission Lineo Rapids-Columbia (with BPA)

$60.7$57.3 $55.7 $54.1 $52.5

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

2021 2022 2023 2024 2025

Expected ELEC Capital (2021 Dollars, $M)

Miscellaneous (0.2%)

Transportation (2%)

Technology (2%)

Facilities (10%)

Fiber/Broadband (24%)

T&D (61%)

Annual ELEC Capital

2021 Electric System Capital Plan –Load Growth

• Forecast over Forecast, load growth rates decrease by 2.1% for 2020-2029• Expected load growth continues to outpace the historical rate of 3.6%

o The increasing growth rate is associated with new large customers

2021 Priest Rapids System Capital Plan


Major 2021 Priest Rapids Project System Capital:• Powerhouse

o Priest Rapids Embankment Improvements - Expected to spend more than $16Mo Priest Rapids Project Station/Substation Refurbishment/Replacemento Priest Rapids Dam Unit Controls

• Priest Rapids Turbine Upgrade - Expected to spend more than $13M, PR Generator Rewind - Expected to spend more than $5.5M

• Othero Fish & Wildlife - Expected to spend ~$1Mo Wanapum Left Embankment - Expected to spend ~$1M

$52.4 $52.4 $54.0 $55.6 $57.2

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

2021 2022 2023 2024 2025

Expected PRP Capital (2021 Dollars, $M)

Miscellaneous (2%)

Technology (4%)

Turbine/Generator (12%)

Facilities (16%)

Powerhouse (67%)

Annual PRP Capital

6%

72%

20%

2%

PRP System, Budget 2021 = $52.4M

Fitness/Purchases ($3.4M)

Run ($37.9M)

Grow ($10.2M)

Transform ($0.9M)

2021 Capital Plan – Technology

2021 Capital Plan – Internal Services /Facilities

Expense Offsets for 2021 Budget

1. Contributions in Aid of Construction…………($6.5M)(Money paid by customers to build infrastructure)

2. Sales to Power Purchasers at Cost……......($17.8M)(As required by our Federal License)

3. Net Power (expenses minus revenue)……..($77.8M)(Net of market power purchases and sells)

4. Conservation Loans…………………………...($0.1M)(Money paid back from low-interest conservation loans to customers)

5. Total Offsets …………………………………($102.1M)6. Total Expenses after Offsets………….......$278.4M

Preliminary Budget Summary –Total Expenditures

Preliminary Budget Summary –Net Position

**Annual Rate Adjustments set at 0.1%

beginning 2021

**

Preliminary Budget Summary –Key Metrics

Appendix - Scenarios

04

Events that could have a significant impact on budget

Operational Scenario Descriptions6 Scenarios – provide metrics impact for movement in volatile parts of Grant PUD operations

• Scenarios that provide insight on Grant PUD's exposure to wholesale prices, that is selling and buying from the market when Grant’s resources don't match load needs.• High wholesale prices (P85, prices only higher 15% of time)• Low wholesales prices (P15, prices only lower 15% of time)

• Scenarios that show how Grant PUD's financial metrics respond when load growth (electricity sales to retail customers) slows down from expected growth.• Low load growth at ½ growth rate of base forecast• Low load growth (½ Base) combined with low wholesale prices (P15)

• Scenario that provides the impact of changing water conditions on the Columbia River• Low water (P15, water flow at dams only lower 15% of the time)

• Looked at scenario where wholesale slice deals, beyond Morgan Stanley are also netted. The only impact was to improve Days Cash on Hand for 2021.

Operational Scenarios –Comparison to Base Budget



Operational Scenarios –Priest Rapids Remaining Availability Load Growth

• Grant’s total rights (physical and financial) to the project are exhausted in 2023

• Grant County retail customers’ loads won’t surpass expected project capabilities until after 2030

COVID Scenario - Assumptions

Major Assumptions:• Sales/Loads

• Sales Forecast: Sales Reduction based on research from EIA, NRECA, CAISO, NY ISO, ISO NE, Southwest Power Pool, and Midwest ISO• Average of 5.3% expected retail sales reduction due to COVID recession

• Duration: 50% return to “Normal” post 2021 Q3, 20% post 2021 Q1, and 30% post 2022 Q1

• Wholesale Assumptions• Supply for wholesale increased due to less retail sales• Price decrease to match P15 scenario from base financial forecast scenarios

• O&M and Labor reductions in 2021 for COVID Scenarios• -2.5%• -5.0%• -10.0%

COVID Scenarios –Comparison to Base Budget




Gene AustinCompliance Manager

Reliability ComplianceOctober 13, 2020

Agenda˗ 2020 NERC Audit – Final Report ˗ Reliability Compliance – Mission

Organization ChartScope of WorkWhat’s in store…

˗ Potential Non-Compliances˗ Quarterly Business Review

Final Audit ReportAugust 10th – 21st; Started July 13th

– Standard Requirements Audited 19– Compliance Audit Findings 3 – Areas of Concern 1– Recommendations 4– Reviewed ‘Open Enforcement Actions’ 4

– Additional Instances 0

Next Audit August 2023

2020 Audit Scope/ SMEsStandards Requirements Standard Owners Email

CIP-00X-X R2 Kyle Hussey, Eric Murray [email protected], [email protected]

CIP-00X-X R1, R2 Kyle Hussey, Eric Murray [email protected], [email protected] R1, R2 Fallon Long, George Hainer [email protected], [email protected]

CIP-00X-X R5 Jeff Mettler, Kevin Carley [email protected], [email protected] R1, R2 Jeff Mettler, Jeff Reams [email protected], [email protected] R2 Mike Stussy, Jennifer Booth [email protected], [email protected] R7 Will Coe, Chris Heimbigner [email protected] [email protected] R2, R3, R6 Ian Jones, Randy Kono [email protected], [email protected] R3 LeRoy Patterson, Mike Stussy [email protected], [email protected] R3 Ian Jones, Jacob Johnson [email protected], [email protected] R9 Matthew Truscott, Dennis Chesnakov [email protected] [email protected] R13 Mike Stussy, Jennifer Booth [email protected], [email protected] R4 Mike Stussy, Jennifer Booth [email protected], [email protected]

VAR-001-5 R2 Mike Stussy, Jennifer Booth [email protected], [email protected]

mailto:[email protected]



























GCPD Reliability Org

CIP Program LeadO & PStandard Owners/SMEs

Manager Compliance ProgramPrimary Compliance Contract

Gene Austin

CIP Standard Owners/SMEs

Reliability Council

Engineering – PP, PDOperations – PP, PDCraft & Technical Shops

Cyber SecurityPhysical SecurityNetwork OperationsSystem Support; EMS, GMS, EACM, PACSServiceDeskHR, TrainingProcurement

Reliability CouncilNERC Required Positions*

Regulatory Specialist – Karla WeaverRegulatory Specialist – Amy Jones

Chief Compliance Officer (CFO) Jeff Bishop*CIP Senior Manager (COO) – Richard Wallen*Primary Compliance Contract – Gene Austin*Chief Customer Officer – Dave ChurchmanChief Technology Officer – Derin BluhmPower Production, Managing Director – Ty EhrmanPower Delivery, Managing Director – Jeff Grizzel

Reliability Compliance ProgramMission – To support GCPD and its staff who have NERC Compliance responsibilities, through – Provide oversight, guidance, and direction of the District’s

Reliability Compliance Program; – Provide and maintain the tools necessary to ensure

compliance via notification, coordination, and tracking of Compliance obligations;

– Assure the District meets its NERC Regulatory obligations thoroughly and on a timely basis

– RC Staff shall be the liaison between GCPD and the Regulator, as well as the liaison between the District and neighboring Reliability Entities

GCPD Reliability Compliance

Karla Weaver

Gene AustinManager Compliance Program

OpenAmy Jones

[email protected]

Monitor Standards for

Changes;Gap Analysis

Communication & Reporting

Records Management;

Documentation & Evidence

Maintain Tools for Tracking &

Monitoring

Oversee Training and

Access Authorization

Continuous Training & Learning

GCPD Representative

Reliability Compliance


What’s in store – Q4– New Audit Period – May 12, 2020 thru ~May 2023

– Review and Verify all Evidence from start of new Audit Period

– Catch-up on all tasks, assignments, and deliverables

– Update all the CIP Tools that Track Roles & Assignments

– Wrap-up Internal Compliance Program Document; & Appendices

– PowerBI – Learn and Apply for Internal Controls

– New CIP Qualification Program design and deploy

– New Hire – on-boarding

– CIP ‘Role Acknowledgement Forms’ Annual Review

– CIP Annual Procedure Reviews

– Training RC Staff – on-going

‘Potential Non-Compliance’ Violations

15 Open PNC’s˗ 3 Audit PNCs – 2020 (New)˗ 3 Self-Report PNCs – 2020 (In Review WECC)- 9 Self-Report PNCs – 2019 (In Review WECC)- 15 ‘Potential Non-Compliance’ Violations

Quarterly Budget Review – YTD August 2020

https://app.powerbi.com/groups/me/reports/879ef998-a59a-48d9-80df-37dd79b7e719/ReportSectionca67fcb1f4bd97d22fd8?pbi_source=PowerPoint

Documents

Microsoft Enterprise Agreement Renewal...1 day ago · Microsoft Enterprise Agreement (EA) What does it cost? • 3-year total price is $1,372,037.52 • 3 annual payments of $457,345.84