Comprehensive EAM for Electric and Gas Utilities

IBM Maximo Asset Management in the Utilities Industry Briefing

Agenda

 Utility Industry Challenges

 IBM Maximo in the Utilities
Industry
 IBM Maximo Offering for
Multiple Business Units
Aging Assets

Under investment in T&D requires $300B over next 20 years

Average age of generation facilities puts reliability at risk

Aging Workforce

 Workforce Strategies
– Workforce
Knowledge Strategies
Capture
– More Contracted Labor
– Partnerships with Local Colleges
– Engineers and Crafts are Mobile
Aging application portfolio
Customer
Plant Digital
Information
Control System
System Customer Information System

DevelopProjects
Capital Assets Operate Assets
Operate Maintain
and Maintain Assets Develop Assets
Assets Operate Assets Maintain Assets

Investment Metering Work Force Metering

Planning &
Planning Scheduling Management
CPM SCADA
SCADA Document SCADA
Scheduling Management
Network Outage Network Outage
Analysis/Design
Engineering Outage
Management Operator Analysis/Design Management
Management Rounds
Geographic Information System
Work Contractor
Management Management
Construction Meter Maintenance
Work Mgmt. Work Mgmt. Work Mgmt.
Asset Service
Management Management Workforce Workforce Workforce
Management Management Management

ERP System
Supply (Finance, HR,Management
Chain/Material Supply Chain) ERP System
Supply (Finance, HR,Management
Chain/Material Supply Chain)

HR, Finance HR, Finance

 Duplication of Functionality
 Legacy Code
 Point to Point Integration
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.
“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

 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

“Maximo offers a unified platform to support

physical and IT assets in support of increase
dependence on IT systems across all LOB.
 Energy & Utilities Value Chain

Commercial
Customer

Retail
Extraction Generation Transmission Distribution Customer

• Crude oil & gas • Fossil Generation • High Voltage • Work Management • ARM
Production • Hydro Generation transmission • Operations Management • CRM
• Geophysical • Gathering & • Nuclear Power • Substations • Mobile dispatch
evaluation processing • Wind Power • Mobile Inspection
• Field • Mining Coal & • Emerging Technology
development Uranium
• Drilling Maximo across LOB
operations

CROSS-FUNCTIONAL & SUPPORT PROCESS AREAS

Engineer & Maintain plants & equipment

Procurement & Logistics
Finance & Accounting
Project Planning & Control
Information Technology
Energy & Utilities Value Chain

Commercial
Customer

Retail
Extraction Generation Transmission Distribution Customer
• Field • Crude oil & • Fossil Generation • High Voltage • Work Management
development gas • Hydro Generation transmission • Operations Management
• Drilling Production • Nuclear Power • Substations
operations • Mining Coal • Wind Power • Mobile Inspection
& Uranium

• 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

Constellation
Commercial “To meet our business
Customer 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
Retail for nuclear and fossil”
Extraction Generation Transmission Distribution Customer
Wynne Hayes, CIO
• Field • Crude oil & • Fossil Generation • High Voltage • Work Management Constellation Energy's
development gas • Hydro Generation transmission • Operations Management Generation Group.
• Drilling Production • Nuclear Power • Substations
operations • Mining Coal • Wind Power • Mobile Inspection Xcel Energy
News Southern Company, NiSource, Salt River Project We strive for continuous
improvement in our
maintenance processes,
Utility Nuclear Generation, Fossil Hydro Generation, Gas & Electric and MAXIMO will be a key
Transmission & Substation, Gas, Water & Electric enabler for improving
Segments Distribution, Water & Waste Water Collection & Treatment reliability centered
maintenance. In addition,
having a common system
Key Duke, NYPA, LCRA, Mirant, Calpine, Dynegy, APS, Entergy will allow us to deploy best
Customers Nuclear, Powergen, iPower, Jpower(EPDC), ADWEA, practices throughout the
entire generation fleet.
ESKOM, Yalhourn Energy, Columbia Gas, El Paso, Bureau of
Reclamation,Sydney Water, LADPW, Clark County David Wilks, Xcel
Energy’s president of the
energy supply
Key Facts 22% of Sales, 300+ Utilities Clients,
Clients Around the World
Adu Dhabi Water & Electricity Abu Dhabi, UAE New South Wales Origin Energy Australia
Alstom Network Services Australia & New Zealand PowerGen Liverpool, UK
Arizona Public Service Phoenix, AZ Salt River Project Phoenix, AZ
Atco Energy Alberta, Canada Seabrook Nuclear Power Station Seabrook, NH
Barbados Light & Power Barbados South Carolina Electric & Gas Columbia, SC
BIOENERGI Luleå AB Västerås Stads Kraftvärmeverk Stadtwerke Chemnitz AG Germany
Bureau of Rec (US Federal Dams) Denver, CO Tata Electric India
Canjun Electric Power Cooperative Baton Rouge, LA Tenaga Nasional Berhad Malaysia
Chelan County PUD Wetatchee, WA Texas Utilities Dallas, TX
Chilectra SA Chile Western Area Power Admin Denver, CO
CINergy Cincinnati, OH Windsor Utilities Windsor, Ontario, Canada
Cia Energetica de Brasilia Brasil Xcel Energy Denver, CO
CitiPower Victoria, Australia Yallourn Energy Victoria, Australia
Colorado Springs Utilities Colorado Springs, CO Yorkshire Electric UK
Connexus Energy Ramsey, MN
Consolidated Edison New York, New York Keyspan Energy Boston, MA
Daya Bay Nuclear Power China El Paso El Paso, TX
Duke Energy Charlotte, NC GPU Gasnet Australia
Dynegy Houston, TX SPP Solvenia
East Kentucky Power Cooperative Winchester, KT Santos Australia
Electranet Adelaide, Australia Southern California Gas San Diego, CA
Entergy NE Nuclear Operations White Plains, NY
Eskom South Africa Brisbane Water Queensland, Australia
Gesa Gas & Electricity Spain City of Bellevue Bellevue, WA
Hydro Quebec Quebec, Canada City of Surrey Surrey, B.C. Canada
Huang Tai Power. China Clark County Water Las Vegas, NV
International Power UK LA County Public Works Los Angeles, CA
LA Department of Water & Power Los Angeles, CA Lyonnaise Des Eaux France
Lakeland Electric & Water Lakeland, Fl Metro Water District of SoCal San Dimas, CA
Louisville Gas & Electric Louisville, KY Orange County Water Utilities Orange County, FL
Lower Colorado River Authority Austin, TX Pinellas County Clearwater, FL
Jacksonville Electric Authority Jacksonville, FL Philadelphia Water Philadelphia,PA
Keyspan Energy Long Island, NY Saur UK
Mirant Atlanta, GA Seattle Water Seattle, WA
Minnesota Power Duluth, MI South East Water UK
New York Power Authority White Plains, NY Sydney Water Corporation Australia
National Power Supply Thailand Thames Water International UK
United Water Australia
T&D Clients
Distribution
 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
Transmission
 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
Generation Clients
Fossil & Hydro
 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)
Nuclear
 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
Colorado Springs Utilities

 Four-Service Municipal Utility— natural gas, electricity, water and

wastewater distribution and power generation
The Company  650,000 combined customers, 500 square mile service area, 1800
employees

 Industry Restructuring Separates Generation, Transmission & Distribution

 Increasing customer expectations and regulatory requirements
The Challenge  Leverage IT Investments with Key Initiatives
 Desire to have one system to handle multiple business units
 Developed Corporate IT Strategic Plan with Executive Sponsors
 Subject-matter experts coordinate usage of technology
The Solution  Standardized on Maximo for Work and Asset Management plus Inventory
and Purchasing with integration to GIS, CAD and CUE.

 Lower cost of ownership to manage all assets in one system

 Higher service levels, reduced O&M expense,
The Benefits  Increased asset reliability
 Consistency in design and constructions methods
DTE Energy

 Large, Multi-Business Unit Utility Service 3.2 M Customers

 Nuclear, 9 Fossil Stations, Gas & Electric Distribution
The Company  Variety of non-regulated businesses including railroad for coal
transportation, biomass, merchant generation

 Consolidate numerous systems into one set of applications for all

business units.
The Challenge  Develop and Implement standard processes for Financial Management,
Human Resources, Supply Chain and Work & Asset Management

 Industry Solutions: Maximo for T&D and Nuclear Power

 Integrated to SAP Financials and Supply Chain
The Solution  MDSI for Mobile and ESRI for GIS
 Hub and Spoke Integration Architecture

 Standardized Processes across the enterprise

 Numerous benefits including; Higher service levels, reduced O&M
The Benefits expense, Increased asset reliability
 $90M annual post implementation benefits
Texas Genco (NRG)

Wholly owned subsidiary of NRG (as of Feb. 2006)

One of the largest wholesale electric power generating companies in the
The Company US, 10 Fossil generation plants with a generating capacity of 11,000MW.

Implement systems to support operational excellence and future growth

Implement new systems (finance, asset management, HR, time entry ) to
The Objective support newly formed company after divestiture from Reliant Energy
Move all Texas Genco and NRG plants across the country onto Maximo

Develop a “best of breed” implementation team. Texas Genco acted as

“System Integrator” for overall program, with the Maximo team acted as
The Approach “prime” for asset management activities,
Core implementation team moving from plant to plant

Live system in 8 months (work and asset management, inventory,

The Outcome purchasing)
 Plants nationwide accessing data center in Princeton for Maximo
Keyspan Energy
 Largest natural gas distributor in the Northeast
2.1M customers and 12,000 employees
The Company

 Outsourced operator of LIPA’s distribution system with 1.2M customer
 Operates 4000 mw fossil generation on Long Island
 Deregulation (19 90s) forced Boston Gas (now Keyspan) to cut costs
Replace numerous legacy system
The Challenge

 Improved crew productivity
 Implement a common platform
 Maximo WAMS (Work & Asset Management System)
Later, Maximo rolled out in the generation business
The Solution

 Followed by Keyspan implementing Maximo in Electric Distribution

 Common platform, lower total cost

Improved customer satisfaction
The Benefits

 Improve work productivity
Duke Energy

 $20B Global Energy Company operating in US, Europe, LA and Asia

Top 10 in US electric power generation- Top tier gas marketer
The Company

 Build and operate 25,000 MWs, regulated and unregulated plant
 25,000 employees worldwide
 Duke needed a standard, scalable platform for Work Management and
Financials across multiple business units
The Challenge  Replace legacy mainframe systems with server/web based systems
 Minimize IT and station support at the plant level

 Maximo/PeopleSoft provides common design for inventory

management, purchasing and accounts payable, while incorporating
The Solution business unit requirements. 61 Plants implemented
Used by Fossil/Hydro, Electric Transmission, and Gas Pipeline

 “Best Practices” enforced with standard software footprint

 Reduced total cost of ownership and support
The Benefits  Seamless information sharing across the supply chain from work
management through accounts payable
Xcel Energy

 Xcel Energy is the fourth-largest combination electricity and natural

gas energy company in the United States with revenues of $15B
The Company  Operate 15,000 MWs, regulated fossil,hydro and alternative energy
 14,000 employees across 12 states on 69 different sites

 Xcel Energy is the result of the mergers of three different utilities

Replace legacy systems modern XML capable systems
The Challenge

 Integration with multiple back-end systems
 Manage culture change among different plants
 Maximo/PeopleSoft/JDEdwards provides seamless interoperability
while incorporating business unit requirements.
The Solution  Maximo offered scalability to server the smallest hydro and largest coal
plants with the same solution – 72 Plants Implemented in 12 months

 “Best Practices” enforced with standard software at all 69 sites

Enabled reliability centered maintenance processes
The Benefits

 Seamless information sharing across GL, HR , and supply chain
 5 years Revenue Enhancements $33.7M Cost Reduction $7.9M
New York Power Authority
 Largest State-owned public power
 Generates 5245 MWs from 21 Facilities
The Company  1400 miles of high voltage transmission
 Mission: Low cost, “best practice” operations

 Reduce $150M O&M budget by 10% per year

Improve direct utilization of 800 craft
The Challenge

 Reduce dependence on outside contractors
 Perform more “life extension” projects with less O&M budget
 MRM – Maintenance Resource Management Program instituted 1995
Maximoi integrated to SAP is used throughout NYPA
The Solution

 Allows for Quantitative Management Decisions and Benchmarking
 Institutionalizes Maintenance Planning and Scheduling
 O&M Budgets reduced ($90M 2000) with increase backlog
Large recurring tasks (e.I, turbine overhaul) completed with less hours
The Benefits

 Displaced outside contractor work (and cost) with internal resources
 Worker utilitization improvement to 85% equaled $6.2 saving per year
Analyst View: Gartner EAM Magic Quadrant for T&D

21 September 2007
© Gartner, Inc.
Kristian Steenstrup
Dan Miklovic
D: G00150970
The Magic Quadrant is copyrighted 2007 by Gartner, Inc. and is
reused with permission. The Magic Quadrant is a graphical
representation of a marketplace at and for a specific time period.
It depicts Gartner's analysis of how certain vendors measure
against criteria for that marketplace, as defined by Gartner.
Gartner does not endorse any vendor, product or service
depicted in the Magic Quadrant, and does not advise technology
users to select only those vendors placed in the "Leaders"
quadrant. The Magic Quadrant is intended solely as a research
tool, and is not meant to be a specific guide to action. Gartner
disclaims all warranties, express or implied, with respect to this
research, including any warranties of merchantability or fitness
for a particular purpose.
Overall Maximo Solution
Single Platform for Multiple Business Units Value Proposition

 Using IBM Maximo across the generation fleet supports

– Nuclear, hydro, fossil generation
– Regulated and non-regulated
– Shared maintenance best practices
– Right-sizing maintenance inventory
– Managing contracted workforce
– Optimization in-house workforce
– Complete supply chain management
 Using IBM Maximo across T&D business units supports
– Intelligent grid and Advanced Metering Infrastructure
– Water, gas and electric
– Work and asset management processes
– Transmission and substation maintenance
– Distribution work management
– Crew management
– Compatible Unit Estimating
 IBM Maximo supports IT assets, facilities, vehicle fleet ops, rail
and telecom
System Consolidation

 Many business systems have

already been combined
 While some systems consolidated,
Asset, IT and Service Management
systems continue to be fragmented

Asset
Management

Distribution Work
Management

Facilities
Management

Power Generation
Asset Management
Transmission
IT Asset
Management
System Consolidation

 Consolidation of Asset and Service

Management
 Strategic alignment of systems
focused on assets and service
 Benefits of “suite”
– Reduced Cost of Ownership
– Lower Risk
 Companies often have many “rogue”
application with can be absorbed
Maximo Enterprise Suite: Asset and Service Management

 Addresses business challenges of

Operations and IT
 Powerful Business Process
Management
 Consolidates point solutions for
Asset and Service Management into
a Rational Suite
 Next generation J2EE Technology
Platform
Systems Integration

ENTERPRISE OPERATIONAL
MANAGEMENT SYSTEMS

Mobile
Customer Dispatch
Information
System GIS

Financial Outage
Management Management

SCADA/DCS
Human Resource
Management
Document
Management
Business Intelligence
& KPIs Data
Historian
Unitization &
Reporting Condition
Monitoring
Industry Solutions

Providing deep functionality for differentiated markets.

IBM Maximo for Nuclear Power

IBM Maximo for Pharmaceutical

IBM Maximo for Utilities

IBM Maximo for Oil & Gas

IBM Maximo for Transportation
Product Expansion Model
• IBM Maximo Asset Management as the foundation for product offerings
• Industry Solutions built on top of the Maximo platform
• Customer Specific Configuration built on top of Industry Solutions
• Industry Solution Partners positioned as part of Total Solution

Customer Configuration
Oil & Gas Industry Solutions

Transportation

Maximo
Pharmaceuticals
Standard Functions
Web-Architecture
Utilities
SOA Integration

Nuclear Power
The IBM Maximo Approach to Product Development
“In Partnership with Clients”
GROUP CHARTER/ EXTERNAL INTERNAL
TYPE OBJECTIVE MEMBERS RUN BY Maximo
Maximo Executive
Advisory Set Direction
C-Level Industry Committee &
Council By Invitation
Marketing Industry Mktg
Special Exchange of Customers Industry Mktg
Interest Users Sales
Best Practice Users
User Groups Services

Develop Subject Maximo P&T

Development
Requirement Matter Products & Services
Partners
By Invitation Experts Technology Industry Mktg

Maximo Promote Brand Users Maximo All

World Exchange C-Level Marketing
Utilities Advisory Council

Council Members

Presentations by Industry Experts


T&D Roadmap
MaximoT&D R1
Crew Type & Crew Management
Crews – Assignment Manager
Crews – Work Order Planning
Crews – Labor Reporting
Combine T&D Admin
P1 – May 2006
MEA: Graphical Design,
Mobile Work Force
Management,CPR (Fixed Asset)
PM - June 06
Maximo Project Mgr for Crews
Compatible Unit Estimating
Compatible Unit Library
Compatible Unit Admin
Delivered: December, 2005
P1 May 06 – PM June 06
Maximo T&D R2
GIS – Maximo Spatial
Embed Map in Key Apps
Link GIS Feature to Mx Entity
Expose GIS controls via MBOs
Support Point, and Linear
Graphical Crew Assignment
Automate Work Order Closing
WO CUE Est. Reference
Overhead Costs in WO
Crew Type & Crew Management
Crews – Assignment Manager
Crews – Work Order Planning
Crews – Labor Reporting
Combine T&D Admin
MEA: Graphical Design, MWFM,
CPR (Fixed Asset)
Maximo Project Manager for Crews
Compatible Unit Estimating
Compatible Unit Library
Compatible Unit Admin
Delivery Date: 2007
Subject to change as required
Maximo T&D R3
Service Appointment Scheduling
Dispatching Application
Scheduling Route Optimization
Schedule Configuration
Extend Mobile - Field Completion
Service Address: Locations, Assets
Work Orders & Service Request
Service Centers
GIS – Crew, Person, Routes, PM,
GIS - Mobile
CUE Hierarchy Navigation Tree
MEA CIS, OMS
GIS – Maximo Spatial
Embed Map in Key Apps
Link GIS Feature to Mx Entity
Expose GIS controls thru MBOs
Support Point, Linear, Area
Graphical Crew Assignment
Automate Work Order Closing
Overhead Costs in WO
Crew Type & Crew Management
Crews – Assignment Manager
Crews – Work Order Planning
Crews – Labor Reporting
Combine T&D Admin
MEA: Graphical Design, MWFM,
CPR (Fixed Asset)
Maximo Project Manager for Crews
Compatible Unit Estimating
Compatible Unit Library & Admin.
Delivery Date: TBD
Maximo T&D R4
WO Crediting & Unit Reporting
Configurable PM Triggers
Capacity Planning
Scheduling – Task Dependencies
Extend Schedule Configuration
Service Appointment Scheduling
Dispatching Application
Scheduling Route Optimization
Schedule Configuration
Extend Mobile - Field Completion
Service Address: Locations, Assets,
Work Orders & Tickets
Service Centers
GIS – Crew, Person, Routes, PM
GIS Mobile
CUE Hierarchy Navigation Tree
MEA CIS, OMS
GIS – Maximo Spatial
Embed Map in Key Apps
Link GIS Feature to Mx Entity
Expose GIS controls thru MBOs
Support Point, Linear, Area
Graphical Crew Assignment
Automate Work Order Closing
Overhead Costs in WO
Crew Type & Crew Management
Crews – Assignment Manager
Crews – Work Order Planning
Crews – Labor Reporting
Combine T&D Admin
MEA: Graphical Design, MWFM,
CPR (Fixed Asset)
Maximo Project Manager for Crews
Compatible Unit Estimating
Compatible Unit Library & Admin
Delivery Date: TBD
T&D Solution Map Maximo Partner 3rd Party

Field Work Work Management Supply Chain Corporate

Project Work Orders
Systems
Mobile Mobile
Design GIS Online Human
Work Completion Inventory Commerce Resources
To Engineer Work Status
Design Field Data Work Details Labor Skills & Certifications
MXES Dispatch
Collection Mobile Management Operations Work Financial
Project
Schedule Management
Condition Assessment
Storm Restoration
Line Inspections Asset Details Construction
Standards Purchasing Financial
Management
Asset Management Routine Designs & Estimates
Asset Maintenance Work Fixed
Programs
Work Work CU Contract
Investment Generation Management Estimation Management Assets
Planning
Design Requests
Asset
Condition From Mobile
Design Switching
Maintenance Rules Requests
Asset Outage Switch
Performance Schedule CPM
Asset History Asset Optimization Scheduling Management Scheduling
Design Switching
RCM Database Standards Routines
Analysis Asset
Location

Service Management Installed

Facilities
Network Events

Service Service Level Network Data

Existing Model Historian
Catalog Agreement Asset
Attributes Geographic Facilities
Information Design
System
EMS / Load
Customer Service Service As-Designed Network Model SCADA Real-Time Forecasting
Requests Network Data
Voice Document
Response Customer Management
Real-Time Network Data
Network Operations
Information
System Asset Details
Meter
Billing
Engineering Real-Time Network Configuration
Reading
Load Forecasts

T&D SM Rev 4 8-15-06

Key Capabilities of IBM Maximo for Utilities
 Work & Asset Management
– Job Plans – Labor, Tools, Material
– Compatible Unit Estimating
– PM, CBM
– History
– Failure analysis
 Material Management
 Procurement Management
 Contract Management
 Service Management
– SLA
– Escalation
– Notification
 IT Service Management
 Support additional work related
applications – examples:
– Leak management
– Street light management
– Permits and Paving
 Mobile – Inspection, Inventory
 Crew Management
– Skills Level
– Qualification/Certification
– Tools & Equipment
 Design tools interoperation
 Mobile Dispatch
Summary

 System Consolidation
 IT – OT Convergence
 SOA Architecture
 Common Platform across LOB
 Leadership Position per
Research Analysts