T&D Management Solutions Outlook -

A Sanity Check

Randy Rhodes

Manager, Network Planning

PacifiCorp

InfoNetrix TDMS Executive Market Summit Dallas, Texas

September 7, 2003

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Agenda

– Brief Corporate Background– Power Delivery Business Technology Processes

CAPEX Strategy Formulation Project Planning & Development Project Review & Approvals IT Project Management Post-Investment Appraisal EAI Standards

– Current Major Project Examples– Sanity Check w/InfoNetrix

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33%

8%44%

4% 8% 3% Oregon

Washington

Utah

Idaho

Wyoming

California

FY-2003Oregon 505,098 Washington 119,666 Utah 680,163 Idaho 58,171 Wyoming 122,576 California 42,699

Total Customers 1,528,373

Customers by State

PacifiCorp’s Service Territory

Portland

Salt Lake City

633 Miles

Glasgow

London

352 Miles

Distribution 69,400Transmission 15,000

Line Miles

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Power Delivery Key Facts

– $2.4B Retail Revenues in FY04

– 135,000 Square Miles Of Service Territory Covering Six States

– Approximately 2,900 Employees in Power Delivery

– 39,000 New Customer Connects Projected for FY04

– Asset Breakdown

– Average Annual Projected Ten-year Energy Sales Growth Of 2.6%.

Oregon 1.5% Idaho 1.0%Washington 1.9% Wyoming 1.6%Utah 4.0% California 1.3%

FY-2003 Year-End Assets - Billions $ Gross Net

Distribution $3.90 $2.50Transmission $2.30 $1.50Other $0.90 $0.50Total T&D $7.10 $4.50

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PD I/T CAPEXPower Delivery’s FY04

Capital Expenditure Plan (US GAAP)

Investment Reasons

FY04 T & D Plan

Driver

Discretionary?

Comments

New Customer Connects

20% Obligation to serve new customer

Non-discretionary

39,000 new connections forecasted for FY04

Delivery System Reinforcements

29% Inability of delivery system to meet increasing load requirement

Non-discretionary

Includes Quantum Leap Project

Public Accommodations

5% Regulatory or jurisdictional requirements

Non-discretionary

Mandated undergrounding of lines, relocations for highway projects

Asset Replacements

27% Deterioration or obsolescence of aging delivery system and failed assets

Mix of Non-Discretionary (failed assets) and Discretionary 1/

Some replacements required by code or Commission rules

System Upgrades / Reliability

10% Company objectives to improve delivery system reliability or economics

Partially discretionary

Includes merger commitments to improve reliability

Information Technology

9% Primarily completion of existing replacement and economic projects

Partially discretionary

Includes EMS/SCADA and SPS

Total FY04 > $0.3B

1/ Note: Items that are discretionary in the short-term build risk exposure and are non-discretionary in the long-term.

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PD Business Technology CAPEX Budget Process

Project Prioritization• Business Strategy

– Safety– Customer Service / Reliability– Efficiency / EBIT

• PD Organizational Alignment• Technology Blueprint Alignment

PD IT Strategy

BusinessUnit

Needs

CorporateCAPEX

Allocation

PD IT Budget

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Ten-Year PD I/T Budget – Areas of Focus

Project Forecasts Come From Business Unit Project Needs, Are Prioritized by Business Unit Strategy, and Depend on Corporate CAPEX Allocation

Power Delivery IT-Enabled Projects FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13EMS/SCADASingle Person SchedulingPole Attachment Data Management SystemTransmission Wholesale Billing SystemMapping & Connectivity EnablerOutage Management System UpgradesAsset Inspection/Reporting SystemsGraphical Information / Asset Register SystemsCrew & Resource Work ManagementCustomer Service Systems Upgrades/ReplacementsOther Distribution Systems Upgrades/ReplacementsOther Transmission Systems Upgrades/ReplacementsPower Delivery Systems Upgrades/Replacements

% of PD I/T CAPEX0 - 10%

10 - 20%20 - 30%

> 30%

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PD IT Project Approval Process

– Business Units Sponsor New Projects

– PD Controller & PD Business Technology Director

Allocate Project Planning And Development Seed Money For Preliminary Project Cost, Schedule, Scope, And Business Case

Assign Project Manager

– Power Delivery Technology Strategy Committee (PDTSC)

Directs Strategy And Priorities. Reviews And Approves Projects

Based On Strategy Alignment, Business Case, And CAPEX Allocation

PD ControllerEVP Power

Delivery & CIO

CEO - PacifiCorp

Largest Projects Are Reviewed by PacifiCorp Board, or Scottish Power Board

PDTSC PIC

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Power Delivery IT Project Life CycleAnnual

CorpPlanningProcess

? Sets PD

project budgetfor fiscal year.

Project Brief& SeedMoney

Request

? Request to

fund BusinessCasePreparation.

? Task plan todevelopproject

approvalpackage.

PD BT

Approval

? Approval for

seed moneyto developBusiness

Case.

BusinessCase

? Proof of business

concept.? Data quality impacts

on budget must be

considered.? Financial analysis.? Cost benefit

worksheet.? End-to-end schedule

with detailed task

plan throughalternative analysisplus placeholders.

PDTSCApproval

ProjectDefinition

Document

? Formal Project Plan-

High-level work break-down and schedule.

? Risks identified.

? Resources & costsforecasted.

? "As Is" and "To Be"

business process mapsdocumented at theBusiness Line

Processes level.(Business DynamicModel-BDM)

? Data qualitycomponents identified.

PDDSign-Off

? Proj. Mgr. &

Proj. Sponsoragree to PDDcontract.

? Risk & changemanagementcontrols activated.

? (If cost, schedule,scope, or benefitsdifferent than

approved BusinessCase, must returnto PDTSC for

change approval.)

Detailed UserRequirements

? Funding

ApprovalthroughAlternatives

Analysis.? Set schedule,

benefits, scope,

and costexpectations forentire project.

? Data quality key

elements andmetrics defined.

? "To Be" business

process maps at theOperationalProcesses level

(System DynamicsModel-SDM) withApplication

integration pointsnoted. (GenericModel-GEN).

? Detailed task planand work packagesdefined.

OngoingProjects

SystemsFramework

Study

New ProjectProposals

TransitionInitiatives

? Go/No-GoFunding

Decision? May also

require

GTC andGITECapproval

BusinessFunctional

Specifications

Training

? Hand-overpreparation

completed.? Formal review

of

deliverablesto businessfunctional

specifications.

BusinessAcceptance

Implementation- Cutover

ProjectClose

PostInvestment

Appraisal

CBS

IT Work Stream

TechnicalDesign

Build Test

? Unit? System

? Integration

AlternativesAnalysis

? Compiling &evaluating

custom &vendor (RFP)solutions.

? SolutionRecommend-ation.

? Vendor Packagefunctional gapanalysis.

PDTSCApproval

UserAcceptance

Testing

Implementation - Cutover

"Go Live"Cut Over

CommissioningFormal

Certification

Staging

? Walk-through andformal sign-off to

assure thatTechnical Designwill deliver

BusinessFunctionalSpecifications

before Buildphase begins.

? Data Quality key

elements andmetrics designed.

? "To Be"business process

maps at theWork Procedurelevel (Function

DynamicsModel-FDM)with data

elementsmodeled onGeneric Model

for RationalRoseconversion.

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PD IT Project Management

– Business Units Have Project Ownership Project Sponsor Is Primary Stakeholder Who Owns Outcomes,

Benefits, & Business Process.

– Project Management Is Performed by PD Project Management Office (PMO) PD PMO Reports On Approved Cost, Schedule, Requirements,

Expectations, Risk And Quality Professional PMs (Often PMI Certified)

– PD Technology Strategy Committee Sets Strategy, Assigns Priority, Approves Projects Risk Is Reduced By:

• Rigorous Planning And Definition Of Projects Up Front

• Focused Tracking Of Progress Against Expenditures for The Life Of The Project

Power DeliveryTechnology Strategy Committee

Power Delivery IT Project Governance

Power Delivery BusinessTechnology

ProjectMgr.

ProjectSponsor

P.D.D."CONTRACT"

ProjectPlanner

InformationTechnology

ProjectComponents

FunctionalArea "A"Non-IT

Components

FunctionalArea "Z"Non-IT

Components

CBS ITLead

ProjectMgr.

ProjectSponsor

P.D.D."CONTRACT"

ProjectPlanner

InformationTechnology

ProjectComponents

FunctionalArea "A"Non-IT

Components

FunctionalArea "Z"Non-IT

Components

CBS ITLead

ProjectMgr.

ProjectSponsor

P.D.D."CONTRACT"

ProjectPlanner

InformationTechnology

ProjectComponents

FunctionalArea "A"Non-IT

Components

FunctionalArea "Z"Non-IT

Components

CBS ITLead

CBS IT Power Delivery Systems

CIO

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After PD IT Projects Are Implemented...

– Upon Completion, Project Sponsor And Project Manager Presents Project Close-out To PDTSC Review Of Project Implementation Lessons Learned ID Areas For Future Development

– Business Improvement Groups Track On-going Benefit KPI’s And Business Process Improvement Implementation

– Business Units Become System Experts And Identify Incremental System Capabilities To Leverage For Further Benefits

– Post Investment Appraisals Required For Selected Projects 1-Year Following Implementation To Validate On-going Benefits,

And Process Improvements, With New Recommendations As Needed.

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DataWarehouse

SubstationAutomation

Outage Management

DistWiresModel

Transmission WiresModel

SCADA

CSS

VRU

AM/FM/GIS

DistributionAutomation

HumanResources

OutageReporting

The “Integration Bus” = EAI + Common Language

InformationExchange

Model

Event History WorkManagement

...

EMS

= Application Connector

The “common language” is based on the common information model (CIM) specified in IEC standards. The meta data for this language is maintained In the information exchange model (IEM). The physical implementation of the IEM varies based on selected technologies.

Standards and EAI at PacifiCorp

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Power Delivery CIM Implementation

– Pacificorp Has Successfully Used The CIM To Model Both Interfaces And Databases For Power Delivery

– We Are Well-positioned To Continue Using This Model

– CIM Has Been Used In Power Delivery Projects Retail Access OCHIP – Outage Call Handling Improvement Project Single Person Scheduling Transmission Wholesale Billing System Enterprise Data Warehouse SCHOOL – Substation And Circuit History of Operational Loading

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Example Project: SCADA/EMS Replacement

KWH

ROUTER

Firewall

ICCPGateway

ROUTER

FEP

ETAG

DTS

PDS

CADOPS

OASIS

PCCEMS/SCADA

WCC FEP

To RTU

Corporate WAN

Dispatch WAN

To WCC FEP

To SCC

3 T 1 and 256 K

256 K and 56 K

ROUTER

PCC EMS LAN

WSCCHCC

BPA

256 K and 56K

CADOPS

ROUTER

FEP

Corporate WAN

ICCPGateway

RTO West SALMS

BPA

To PCCROUTER

3 T 1 and 256 K

SCC EMS LAN

HCC

Firewall

To RTU

To WCC FEP

256 K and 56K

RTO WestCAL ISO

To RTU

ROUTER

WSCC

CAL ISO

SCCEMS/SCADA

Existing Obsolete Systems:

– 7 Disparate Systems

– Not Supported By Vendor

– 20-year Old Technology

– No Integration Capability

– SCADA Components Failing

– Spare Parts Not Available

New State Of The Art System:

– Single EMS System At Each Location With Disaster Recovery Capability

– Fully Integrated With Existing Systems

– Adaptable To Future Business Change

– Vendor Supported Integration With Outage Management Systems

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Example Project: Single Person Scheduling

SAN / DataWarehouse

Dispatch

Workstations

Planner

Workstations

PacificCorpLAN / WANConnection

Mobility ConfigurationPacificCorp SPS System

District One

District x

ClickAnalyze ReportingOLAP Server

Street-LevelRoutingServer

Scheduling

Server

DispatchServer

TIBCO - XML

Test - Development & Emergency Backup Environment

CIS

Backup

Mobility Router

SAN / Data

Warehouse

Backup

DispatchServer Webserver

Backup

Webserver

BackupScheduling

Server

Backup

SL RoutingServer

MobilityRouter

SchedulingServer

Mobility Router

ClickAnalyze ReportingOLAP Server

BackupOLAP Server

DispatchServer

SL Routing

Server

Off-Site Location

Dispatch

Workstations

PlannerWorkstations

BackupComms Server

Mirrored Backup

Emergency Backup /Development & Test

Host Systems

Production

Color Code

Comms

Server

Webserver Comms

Server

Mirror

Connection

CDPD

Radio Tower

WirelessLAN 802.11

Proprietary and Competition Sensitive - Theinformation contained within this documentis competition sensitive and containsinformation proprietary to AxiomCorporation. This information is not to bedisclosed

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Example Project: SCHOOL

– What Is SCHOOL? Substation/Circuit History Of Operational Loading Essentially, a Load Data Historian to the Asset Management Desktop Built on OSIsoft PI Software Platform

• Off-the-Shelf Software Designed for Efficient Storage and Fast Retrieval of Time Series Data

• 45 Gigabytes of Load Data Inspected and Imported

• 65,000 Tags of Load Information

– Benefits: No Data Ambiguity Easy Access and Navigation Powerful Analytical Tools Replaces Paper Reporting and

Thousands of Excel Files Used for Transformer Load Analysis

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CADOPS

Windows 2000

Analysis Workstation

Load History, Hourly Averages

MV-90MVStar

(Ver. 3.1 - SP 2)

Modem Bank

Industrial

Meters & Recorders

Windows 2000

Field Workstation / Analysis

Substation Load & Operating Parameters

(50 workstations)

Area / DIstrict Offices

Windows 2000

OSI-PI Serve r(Production)

LCT Data Center

Windows 2000

OSI-PI Server(Development)

LCT Data Center

OC/S (PCC)Ingress DB

(Ver. 2.1.0.6)

1 minute interval

1 Minute Interval

Substation / Circuit History of Operational Loading

(SCHOOL)(Phase 1: Interim State - (3/03 - 11/03)

Substation

Windows CE 3.0 or PocketPC

Handheld Device

Auto download

(50 Handheld Devices)

PI Server Modules (50,000 tags)

Data Archive

UDS

MDB

Performance Equations Data Access Pack – ODBC, OLEDB, SDK

Batch Server

Real-Time SQC Server

PI Clients

DataLink

ProcessBookBatchView

ODBC ClientReal-Time SQC

Profiles

ActiveView

PI Clients with Handheld Device

DataLink

ProcessBookBatchViewODBC Client

Real-Time SQC

Profiles

ActiveView

Handheld Terminal

Manual Logger

Time Series Datav Analog

v DigitalAutomated Hourly Load Data - (Minimum)

Time Series Data

v Analogv Digital

Monthly Peak Load Data - (Minimum)

Time Series Datav Analogv Digital

Automated Load Data - (Hourly / Minimum)(CSV File Transfer via TIBCO)

PI Server Modules (1,000 tags)

Data Archive

UDS

MDB

Performance Equations

Data Access Pack – ODBC, OLEDB, SDK

Batch Server

Real-Time SQC Server

PI Interface

Batch

TCP / IP

TCP / IP

TCP / IP

OC/S (SCC)Ingress DB

(Ver. 2.1.0.6)

PI to PI Integration

PI Integration via TIBCO

SLC Operations Data Center

RTU

RTU

RTU

RTU

RTU

RTU

SCADA (SCC)

L & G 8500

EMS (SCC)

VAX

SCADA (PCC)

L & G 6800

EMS (WCC)

VAX

EMS (PCC)VAX

RTU

1

2

3

4

RTU

Printer

Commercial

PI Integration via TIBCO

LCT Data Center

Xcellenet - Afaria

Handheld Software Distribution Mgmt.

(UNDER REVIEW)

SCHOOL Project Architecture

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SCHOOL – Integration with New EMS

CADOPS

Analysis

Load History, HourlyAverages

(Excel)

Analysis

Load Forecasting , SpecialReports

( PTI)

AnalysisLoad History, Hourly

Averages(ProcessBook / DataLink

MV-90MVStar

Modem Bank

Industrial

Meters & Recorders

Power OperationsOracle

PacifiCorp

Transmission & Distribution Network

AnalysisMV-90 Load History

AnalysisSubstation Load & Operating

Parameters

Substation / Circuit History of Operational Load

(SCHOOL)(Future State - (11/03 - Future)

OSI-PI Server(Production)

SAP(Work Management)

OSI PI Historian(Inside Firewall)PCC EMS (ABB Ranger)

Refer to Detailed Configuration Diagrams

OSI PI Server(Development)

SCC EMS (ABB Ranger)Refer to Detailed Configuration Diagrams

OSI PI Historian(Outside Firewall )

OSI PI Historian(Inside Firewall)

OSI PI Historian(Outside Firewall )

RTU

RTU

RTU

RTU

RTU

RTU

RTU

RTU

EMS / SCADA Replacement Project

Frontline Project

Substation

Handheld Device

Auto download

Printer

Commercial

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SCHOOL System Future Development

– Special Load Studies Load Research Using

Deployable Monitors Improved Forecast

Granularity– Improved Asset Utilization

Support for Monitoring and Dynamic Rating of Transformers

Substation Equipment Inspection Using SCHOOL System Handhelds

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InfoNetrix Predictions – A Sanity Check

InfoNetrix Says PacifiCorp’s Position

Record Levels of Project Activity Are Coming Soon

Economy is On the Upturn – but Capital Markets Are Still Tight for Us

Top Market Factor Is Regulatory Policy & Governance

Our 6-State Regulatory Environment + RTO Development Is a Key Factor

Brain Drain Will Affect Utilities’ Ability to Implement Technology

Absolutely. Response: Power-Learning Centers, First-Career Programs

System Reliability Emphasis Will Drive Automation Requirements

Yes, But Not Immediately – Still Getting Asset Management in Place

Future Stress on the Power Grid May Produce Events Mandating Emergency Measures

Bingo!!!

Stay Tuned!!!