rfp 17-14 u-34658 concordia electric louisiana public service … - lpsc... · 2017-11-06 · rfp...

1 | P a g e © 2017 UtiliWorks Consulting, LLC

RFP 17-14 U-34658 Concordia Electric Cooperative, Inc., ex parte.

for Independent Technical Consultant

Louisiana Public Service Commission

Due Date: November 6, 2017 Deliver to: Kim Trosclair Louisiana Public Service Commission Office of the General Counsel 602 North Fifth Street (Galvez Building) (70802) Post Office Box 91154 Baton Rouge, Louisiana 70821-9154


Table of Contents

COVER LETTER................................................................................................................. 3

UtiliWorks Consulting Profile and Qualifications ........................................................ 5 1. Company Overview ......................................................................................... 5 2. UtiliWorks Consulting Subject Matter Expertise ........................................................ 6 3. Project Map .................................................................................................. 6 4. Minimum Requirements .................................................................................... 7

UtiliWorks Consulting Project Approach ...................................................................... 7 1. Plan of Action ................................................................................................ 7 2. Period of Representation .................................................................................. 8 3. Proposed Consulting Team ................................................................................. 8

Price Proposal ................................................................................................................. 9 1. UtiliWorks Consulting Hourly Rate ........................................................................ 9 2. UtiliWorks Consulting Estimate of Cost for the Commission .......................................... 9

Appendices .................................................................................................................... 10 Appendix 1 – Project Team Resumes ........................................................................... 10

List of Figures Figure 1 –UtiliWorks Client Map............................................................................6 Figure 2 – Project Phase Diagram………………..………………………………………………………………………………8

List of Tables Table 1 – Company Profile……………………………………………………………………………………………………………5 Table 2 – UtiliWorks Consulting 2017 Rate Sheet…………………………………………………………………………9

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© 2017 UtiliWorks Consulting, LLC

COVER LETTER

To: Ms. Kim Trosclair Louisiana Public Service Commission Office of the General Counsel 602 North Fifth Street (Galvez Building) (70802) Post Office Box 91154

Baton Rouge, Louisiana 70821-9154

Date: November 6, 2017

Re: Proposal for RFP 17-14 U-34658 Concordia Electric Cooperative, Inc., ex parte. to

review Concordia Electric Cooperative, Inc.’s application for approval of an Updated Advanced Metering System Program and Request for Cost Recovery and Related Relief

Dear Ms. Trosclair, We appreciate the opportunity to present this proposal to the Louisiana Public Service Commission (the Commission) to review Concordia Electric Cooperative, Inc.’s application for approval of an Updated Advanced Metering System (AMS) and request for cost recovery and related relief. UtiliWorks Consulting, LLC, (UtiliWorks) is an independent technical consulting company located in Baton Rouge that offers professional services to assist clients in the assessment, design, procurement, and implementation of advanced metering system solutions for utilities. This is the exclusive focus of our company since our inception in 2005. Working in conjunction with the Commission and Concordia Electric Cooperative, Inc., personnel, we will assist the Commission in analyzing Concordia’s application to implement an Updated AMS and request for cost recovery and related relief. We would like to highlight key areas we believe differentiate UtiliWorks from other consultants:

1. Local Presence and Track Record of Success in Louisiana. UtiliWorks Consulting is headquartered in Baton Rouge, Louisiana. This means that we have a local presence and a unique understanding of the needs of Louisiana utilities, having worked closely with them for years. Your UtiliWorks Project Manager, Nicole Griffin, is based in Baton Rouge and has experience leading several advanced metering efforts across Louisiana from Shreveport to Plaquemines Parish, including projects with significant results for the City of Ruston and the City of Monroe.

2. Work with Other Public Utility Commissions and Consumer Groups. UtiliWorks has experience with other public utility commissions, including the California Public Utilities Commission (CPUC). UtiliWorks provided expert review and testimony for two major projects involving San Diego Gas and Electric (SDG&E) and Pacific Gas and Electric (PG&E). We worked closely with CPUC to evaluate SDG&E’s request for cost recovery and demand response. Dynamic pricing included a detailed analysis of IT impacts and costs as well as evaluation of potential impacts in terms of costs, benefits (to the utility and to customers), and evaluation of public relations aspects. We also worked closely to evaluate a Real Time Pricing initiative proposed by PG&E. Detailed costs analysis and potential impacts to both customers and to the utility were reviewed and validated, also including public relations impacts for PG&E.

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3. Specialization in this Market Space. UtiliWorks is an agile and adaptable consulting firm with subject matter experts (SMEs) who have deep roots in the automated metering market. While our initial engagements with clients are typically feasibility studies, business cases, and planning activities like the one we are currently handling for the Sewerage and Water Board of New Orleans, our team is known for our “hands on” experience with technology, vendors, and owners in both pilot and full production environments. You will see evidence of our work with virtually all the leading vendors in this space. We believe our team has more true deployment experience (versus theoretical understanding) than any other consulting firm in this sector. Our references are the best way to confirm this.

The UtiliWorks team is very excited about the opportunity to work with the Commission. We think you will find that our firm’s personnel and experience exceed all minimum requirements as listed in this proposal. In summary, we believe that UtiliWorks is an excellent fit for the work requested by the Commission to conduct an analysis and review of Concordia’s application for approval to implement an updated AMS and request for cost recovery and related relief. We look forward to additional opportunities to demonstrate our interest and capabilities.

As the Managing Director of UtiliWorks Consulting, I am authorized to bind this proposal and will be your primary contact person for communications with the Commission.

Thank you for your consideration.

Respectfully submitted,

Dale Pennington 2351 Energy Drive Suite 1010 Managing Director Baton Rouge, LA 70808 UtiliWorks Consulting, LLC P (225) 766-4188 [email protected] F (225) 612-6404

mailto:[email protected]

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UtiliWorks Consulting Profile and Qualifications

1. Company Overview

Table 1 – Company Profile

Contact Information

2351 Energy Drive Suite 1010 Baton Rouge, Louisiana 70808 Website: www.UtiliWorks.com

Dale Pennington, Managing Director Phone: 225-766-4188 Fax: 225-612-6404 Email: [email protected]

Business Focus, Attributes

· Professional services firm · Advanced metering and associated technology design and implementation support · Project management

Company Information

Founded: 2005 Limited Liability Company FEIN: 20-5167904 DUNS: 825164713

Services

Feasibility Studies | Strategic Planning | Financial Modeling and Data Analytics RFP Development and Procurement | Business Process Re-Engineering Systems Design and Integration | Program Management Public Awareness and Education | Expert Witness Testimony Revenue Assurance | Grant Writing and Reporting | Rate Studies

Company Mission

Together with our clients, UtiliWorks advances business and technology solutions that strategically enhance utility operations. We focus on the delivery of your technology system and the requisite business process changes that will drive performance throughout your organization.

Location · Corporate Office in Baton Rouge, Louisiana · Associate offices in California, Florida, Georgia, Kansas, North Carolina, New York,

South Carolina, and Tennessee

Banking

Chase Bank 451 Florida Street, 7th floor, Suite 726, Baton Rouge Louisiana 70801 Attention: Michelle Boudreaux Phone: 225-332-7718

Legal

Graves-Carley, LLP 2137 Quail Run, # B, Baton Rouge, Louisiana 70808 Attention: Allen Graves Phone: (225) 757-7676 Fax: (225) 757-1771

http://www.utiliworks.com/

mailto:[email protected]

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2. UtiliWorks Consulting Subject Matter Expertise

UtiliWorks employs engineers, project managers, subject matter experts, and consultants across the organization. Our associates have on average more than 20 years related industry experience. Our subject matter expertise includes, but is not limited to:

Automatic Metering Reading (AMR) Advanced Metering Infrastructure (AMI) Communications Backhaul Design Customer Information Systems Customer Web Portal Cyber Security Meter Data Management Systems (MDMS) Enterprise Service Bus (ESB)

Payment Kiosks Prepay Programs SCADA Systems Leak Detection IVR Systems Utility Meter Configuration Geospatial Information Systems (GIS) Energy Management Programs

3. Project Map

Over the past 12 years, UtiliWorks has worked across the United States and abroad. The map and matrix that follow indicate the breadth of our experience and speak to UtiliWorks ability to provide benefits for our clients regardless of their geography or topology.

Figure 1 – UtiliWorks Client Map

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4. Minimum Requirements

The sections below provide a great deal of information regarding the background of UtiliWorks and its experience and expertise provided to clients. Specific to this proposal, UtiliWorks highlights the following areas in which the company is experienced and has filed testimony:

1. UtiliWorks and associated affiliates have detailed experience with accounting

standards and practices in the utility industry including cooperative utilities. 2. UtiliWorks and associated affiliates have a strong understanding of the Commission’s

Rules and Orders pertaining to acquisitions and capital outlays. 3. UtiliWorks and associated affiliates have a very clear understanding of Commission

rules and orders pertaining to outage management and service reliability, having worked with several Louisiana-based utilities.

4. One of UtiliWorks core competencies is working with utilities to improve operational efficiencies through a variety of services including business process evaluation and re- engineering, and optimizing the effectiveness of newly deployed technologies such as advanced metering and demand response.

5. UtiliWorks has worked with a number of utilities to ensure that their investments meet requirements of public interest criteria and based on our experience, we can clearly identify and make recommendations in this area in relation to the application filed by Concordia.

6. UtiliWorks and associated affiliates have a strong understanding of Commission-approved cost recovery mechanisms, including Concordia’s Formula Rate Plan adopted in Order No. U-33779 and Commission General Order U-21497 dated November 6, 1997.

UtiliWorks Consulting Project Approach

1. Plan of Action

Your UtiliWorks Consulting Team will thoroughly facilitate each stage of the proceeding including:

Mobilizing the Project UtiliWorks will establish communication with the Commission’s point of contact and schedule a formal kick-off meeting to initiate proceedings. From that point forward, the team will participate in status conferences, informal meetings, conference calls, depositions and any other proceeding related meetings through the final Commission vote on Concordia’s application.

Conducting Discovery UtiliWorks will provide the Commission with a comprehensive list of data and information requests that will include items such as: Concordia’s application, testimony, and exhibits, financial data, capital improvement plans, customer demographics and other data points. The data collection will begin shortly after the kickoff meeting. This phase will educate UtiliWorks on Concordia’s proposed AMS application, its drivers and challenges, the multiple technologies integration, and cost benefit analysis review while providing insight on potential future rate structures.

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Analyzing/Reviewing the Application

With the data and information collected from the data requests and meetings participation, UtiliWorks will be capable in analyzing Concordia’s operations, books, and records for purposes of determining the feasibility of their application for an advanced metering system. This analysis and review will be based on pertinent factors such as accounting standards and practices for electric utilities, the Commission’s Rules and Orders pertaining to acquisitions and capital outlays, outage management and service reliability, efficiency improvement, public interest, and the Commission’s rules on affiliate transactions and cost recovery mechanisms.

Reporting/Developing Expert Testimony UtiliWorks will review its findings and recommendations with the Commission and determine if additional development is required. Upon finalizing an expert testimony, UtiliWorks will present its findings and make recommendations in a final report to the Commission. Participation in a certification hearing will follow the presentation. Assistance in the preparation and defending of Commission direct testimony will be provided as well. UtiliWorks will also assist the Staff in the preparation of any post hearing briefs or filings, facilitate any settlement discussions and/or stipulation hearings and attend and testify at the Commission’s Business and Executive Session.

Figure 2 – Project Phase Diagram

2. Period of Representation

UtiliWorks is fully committed to helping the Commission assess this opportunity to take Concordia’s business processes and technology to the next level. As the Commission, itself mentioned in the RFP, the period of representation may vary greatly depending upon whether the matter is contested.

3. Proposed Consulting Team

The proposed core team has significant experience successfully working together in advanced metering projects and technology reviews. Members include Executive Sponsor Dale Pennington, Program Manager Nicole Griffin, Statistical Analysis SME Kara Truschel, Integration/Communications SME Stephen Nees, Business Process SME Chase Berenson and Financial Analysis SME Jon Mitchell. Please see team resumes in the Appendix.

Project Mobilization

Conducting Discovery

Application Analysis/Review

Reporting/Developing Testimony

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Price Proposal

1. UtiliWorks Consulting Hourly Rate

Table 2 – UtiliWorks Consulting 2017 Rate Sheet Title Billing Rate Proposed Resource Managing Director $ 295.00 Dale Pennington Principal $ 260.00 n/a Senior Manager $ 220.00 n/a Manager $ 220.00 Nicole Griffin, Kara

Truschel Senior Associate $ 220.00 Steve Nees Associate $ 190.00 n/a Analyst $ 160.00 Chase Berenson, Jon

Mitchell Junior Analyst $ 115.00 n/a Administrative $ 115.00 n/a

2. UtiliWorks Consulting Estimate of Cost for the Commission

UtiliWorks proposes a total budget of $49,725, at an estimated 255 hours at a blended rate of $195. No additional expenses will be expected for travel in the city of Baton Rouge. However, travel and lodging elsewhere will be calculated as an expense. This budget assumes the scope identified in the Commission’s RFP and reflected in this proposal through a final Commission vote on Concordia’s Application and issuance of an Order.

*Please note: actual fees and costs incurred by the Commission will depend on the actual scope of work contracted.

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Appendices Appendix 1 – Project Team Resumes

Please find the resumes of UtiliWorks team for the Commission in the following pages.


Dale Pennington UtiliWorks Consulting LLC. Managing Director – Executive Consultant

Mr. Pennington is the Managing Director of UtiliWorks based in North Carolina with over 30 years of expertise working with utilities to deploy smart systems and integrated solutions. He has extensive knowledge of the intersection of business and technology in the utility space. By utilizing proven workflow and asset management techniques that he has mastered over the course of his career, Dale is able to assist clients in maximizing the value of their technology investments.

Specialization • Advanced Metering Infrastructure • Smart Grid Design & Deployment • Meter Data Management • Business Process Re-Engineering • Municipal Delegation Advisement

• Utility Publication Contributions • Technology Migration • ROI Maximization • Contract Negotiation • Routine Industry Event Presentations

Education and Certifications • MS Geophysics, Adelphi University, Garden City, NY (1982) • BS Marine Science and Political Science, Long Island University, Brookville, NY (1978) • BA Geology and American Studies, Long Island University, Brookville, NY (1978)

Relevant Project Experience

California Public Utility Commission, CA Mr. Pennington was an expert witness for both the Pacific Gas & Electric and San Diego Gas & Electric hearings before the CPUC. Dale’s role was to understand the utilities’ existing IT systems and whether the request to modify and augment them to implement dynamic pricing was reasonable. Dale also analyzed the proposed upgrades to the customer-assistance website to determine if these upgrades will carry out the desired functionality or not. Dale helped CPUC determine whether the costs associated were truly incremental and reasonable. Dale assisted the DRA in developing a litigation position, preparing written testimony and testifying before the Commission, and participating in settlement discussions. Chelan County Public Utility District, WA UtiliWorks was engaged by Chelan County PUD to perform a feasibility study and business case analysis to assess the viability of deploying an advanced metering system. The District is unique in that the service area is roughly 2,000 square miles which presents challenges when considering the deployment of the necessary communications technology to support AMI. Mr. Pennington provided Executive oversight and supported all board level advisory throughout the engagement.

rfp 17-14 u-34658 concordia electric louisiana public service … - lpsc... · 2017-11-06 · rfp...

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