exhibit to agenda item #1b
TRANSCRIPT
Powering forward. Together.
Board Finance & Audit Committee Meeting and Special SMUD Board of
Directors Meeting – Budget 2019
Thursday, November 8, 2018 scheduled to begin at 5:00 p.m.
Customer Service Center, Rubicon Room
Exhibit to Agenda Item #1b
Technology
2019 Proposed Budget & Initiatives
Stephen Clemons
Chief Information Officer
November 8, 2018 3 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
Chief Information Officer Organization
Note: SMUD resources support
Business Unit processes regardless
of organization/functional affiliation.
CHIEF
WORKFORCE
OFFICER
CHIEF
LEGAL
OFFICER
Dir, Reliability
Comp & Coord
Dir, Accounting &
Controller
Director, Planning,
Pricing & Ent Perf
Director, Treasury
Director, Facilities
& Security Ops
Dir, Substn,
Telecom, & Mtrg
Director, Power
Generation
Dir, Commercial
Development
Dir, Procurement
Whse & Fleet
Dir, HR, Diversity
& Inclusion
Dir, Org Capability
& Effectiveness
Dir, Environmental
Safety & Real Est
Deputy General
Counsel
BOARD OF DIRECTORSSpecial Asst to Board of Directors
Director, Audit
Services
CHIEF GRID
STRATEGY &
OPERATIONS
OFFICER
Director,
Grid Operations
Director,
Grid Planning
Director, Energy
Strat, R&D
Dir, Distribution
System Ops
CHIEF
CUSTOMER
OFFICER
Director,
Revenue Ops
Dir, Marketing &
Corp Communic
Dir, Adv Energy
Solutions
Dir, Retail Prod
Del & Sales
CHIEF
INFORMATION
OFFICER
Dir, IT Infrastruc
& Operations
Director, Energy
Trading & Contract
Manager, Executive Department
Director, Resource
& New Bus Strat
CHIEF
FINANCIAL
OFFICER
Dir, IT
Applications
Dir, IT Strategic
Initiatives
Dir, IT Information
Security
Deputy General
Counsel
Dir, Customer
Care
Director, Strategic
Services
Director, Line
Assets
Dir, Community
Energy Svcs
CHIEF EXECUTIVE OFFICER
& GENERAL MANAGER
CHIEF ENERGY
DELIVERY
OFFICER
November 8, 2018 4 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
Strategy, Planning
& Governance
Strategic
Initiatives
Infrastructure &
Operations
Information
SecurityApplications
Relationship
Management
Project Planning &
ExecutionOperational Support Cyber Security
Project Planning &
Execution
Project Management Operational SupportProject Planning &
ExecutionCompliance Operational Support
Contracts & License
ManagementProblem Resolution Privacy Programs Planning & Assessment
Problem ResolutionSecurity Engineering
and Operations
Threat Assessment and
ResponseService Requests
Service RequestsCompliance and
System SecurityQuality Assurance
Enterprise Architecture Service Management
Planning & Assessment
TechnologyBusiness Segments and Functions
$77.6
$16.8
$3.1
$28.9
$-
$20
$40
$60
$80
$100
$120
$140
2019 Proposed
$M
Keeping the Lights On Optimization/Operational Excellence
Risk Mitigation Embracing the Future
November 8, 2018 5 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
2019 Proposed Budget by Theme
$126.4M
November 8, 2018 6 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
Projects Completing in 2018
2018 Completed Projects
• Time of Day
• CCA Infrastructure
• Annual Line Patrol
• Auto Reconnect
• Bill Scenario Tool
• Energy Accounting System (EAS)
• Joint Pole Process Improvement
• Legal Matter Management
• Mobile App – Friends and Family
• Replace OC3 Loop & FP MW Radio
• Security Roadmap Program Network Access Control Lifecycle
• Omni Channel Billing Print Redesign
• Rate Change Automation
On Track to complete by end of 2018
• Avaya Expansion Final Phase
• Avaya Upgrade & Lifecycle
• Cyber Security Supply Chain Risk Mgmt.
• Division of Dam Safety & Inspection Compliance
• Edge Firewall Lifecycle
• GIS - Transmission and Real Estate
• Internal Audit Software
• Lifecycle Printers (Print Anywhere)
• Next Generation Two-way Radio
• Office 365
• PI DOE Upgrade
• Replace Backup DC Power
• Security Roadmap Program – Data Loss Prevention
• SAP Real Estate Module
• SAS Upgrade and Optimization
• SIEM Upgrade/Lifecycle
November 8, 2018 7 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
Multi-Year Projects
Projects Completing in 2019 or Beyond
• ADMS
• Ariba Procurement Project
• Avaya/Verint WFO/WFM Upgrade
• CIP Supply Chain (CIP-013)
• Compatible Units -
• Design Tools - Design of Distribution Network
• Disaster Recovery
• Distribution Inspection Mobile Device
• Hydro Water DSS - Compliance
• Document Management for Grid Assets
• Employee Relations Case Management
• Energy Trade Risk Management (ETRM)
• Facilities McLaren
• G/Technology Upgrade and Implementation
of GIS Networks
• HR Express Transformation
• Modeling of the Distribution Secondary System
• Outage Communication Management (OCM) System Replacement
• PACS Redundancy
• Reliability Analysis - Distribution Grid
• OT Network Transformation (MPLS)
• OT Network Anomaly Detection
• SEELoad Upgrade for Demand Response
• Segregation of Duties
• SharePoint Upgrade
• Time of Day
– EAPR Automation
– EAPR Rate Redesign
• WFO Mobility & Scheduling
November 8, 2018 8 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
2019 New Project Work
Projects Starting in 2019
• AMI Access Point Lifecycle
• AMI Relay Lifecycle
• UIQ_AMI Upgrade - Application
• Asset Management Analytics
• Captiva Lifecycle
• Conference Room Technology
• DMS OMS Replacement (Planning)
• EDM UI D2 & Core System Upgrade
• Endpoint Detection and Response/Anti-virus
• SMUD Enterprise PPM Replacement
• Gas Site Network Resiliency/Capability
• GPO GIS Asset Master Data
• Telecommunications DC Battery Monitoring System
• Telecommunications GIS Fiber Audit
• Transmission Fiber Standards
• Underground Cable Failure Mapping
• Wireless Broadband Feasibility
• X86 Lifecycle - Fresh Pond Servers
• Interval Data Export - Meter Data
• Itron IEE Technical Upgrade
• Network Lifecycle – Corporate Network
• OC3 Loop MW Upgrade (Part 2)
• Rate Changes 2019-2020
• Secure SAP RFC with SNC/SSL
• ServiceNow APM
• Solano Windfarm Communications
Improvement
November 8, 2018 9 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
Technology Enhancement Requests
IT staff have completed over 300 enhancement requests and currently
have 192 requests open
• Smaller efforts than projects
– Less than 400 hours staff time to complete
0
10
20
30
40
50
60
70
80
90
100
CorporateServices
Customer &Community
Services
Energy Delivery EnergyOperations
InformationTechnology
Internal Services
Enhancement Requests
Open Requests as of Nov 1, 2018 Completed Requests, Oct 2016 - Oct 2018
November 8, 2018 10 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
Keeping the Lights On
▪ Keeping The Lights On ensures SMUD’s applications and technology
infrastructure are available, secure and in compliance – every day
▪ We maintain over 1,000 applications used across SMUD to high
standards of reliability
▪ We manage complex interconnections of systems and data
▪ We ensure security of systems through monitoring and updates
▪ In 2019, key upgrades and lifecycles support core business functions
▪ Meter to Cash
▪ Meter Data Management, AMI and Avaya upgrades
▪ Power theft detection system upgrades
▪ Board-mandated rate changes
▪ Ongoing lifecycle upgrades supporting a wide variety of enterprise
applications and infrastructure
▪ Communications with remote facilities
▪ Gas site operational monitoring
▪ Storage and network hardware replacements
▪ Deliver compliance efforts with SAP enhancement and Grid Asset
EDM projects
(SD-2, 4,
8, 16)
November 8, 2018 11 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
Optimization and Operational
Excellence
▪ Improve efficiency and reliability of technology applications and
infrastructure
▪ Deliver efficiency with Agile methods, Testing Center of Excellence
▪ Expand and mature best practice methodologies such as
Enterprise Architecture, Data Analytics and Business Relationship
Management
▪ Deliver technologies to improve efficiency, reliability and
communication across SMUD
(SD-2, 4,
8, 17)
▪ Improve system reliability and availability
▪ Monitor critical applications and systems with 24/7 support
▪ Improve disaster recovery infrastructure and processes
(SD-4, 6, 17)
▪ Strategic view of technology and human resources
▪ Use application rationalization methodology to develop a strategic
view of technology resources
▪ Benchmark staffing levels and skill sets to ensure talent required
to support the technology stack
(SD- 4, 8, 17)
November 8, 2018 12 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
Risk Mitigation
▪ Cyber security. Mitigate risk through audit remediation, monitoring,
training and education
(SD-8, 16,
17)
▪ Cyber attacks by nation-states on utilities
▪ Continuous network monitoring
▪ Expand programs to improve security posture, focusing on Critical
Infrastructure Protection, Operational and Information Technology
security and awareness
▪ Continue to comply with increasing regulatory and compliance
standards
(SD- 16, 17)
▪ Anticipate and respond to rapid changes in technology
▪ Research emerging technologies in the energy market
▪ Security plan review of cloud computing
(SD-10, 16,
17)
▪ Hire and retain IT talent
▪ Broaden recruitment channels, utilizing staff training to stay
abreast of changing technologies, leveraging Master Services
Agreement to fill gaps
(SD-8, 10,
17)
November 8, 2018 13 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
Embracing the Future
▪ Modernizing our power grid
▪ Continue efforts to integrate DERs through advanced technology
including ADMS, DERMS and next generation WAN
(SD-4, 16)
▪ Enhance the Customer Experience through digital self-service,
expanding use of texts and alerts and customer mobile applications
(SD-5)
▪ Workplace of the future – ongoing efforts
▪ Deliver technology to support a mobile and flexible workplace and
enhanced collaboration and productivity for field and office staff
▪ Provide secure platforms for delivering applications to all devices
(SD-8, 16)
▪ Deliver innovative technology
▪ Support R&D for Internet of Things (IoT) and augmented reality
▪ Deliver technology to support innovative rates and billing
(SD-2, 10,
16)
▪ Embrace market potential by delivering technology to support SMUD’s
role in the expanding Community Choice Aggregator (CCA) market
(SD-19)
$0
$10
$20
$30
$40
$50
$60
$70
$80
2018Plan
2018Forecast
2019Prop
2018Plan
2018Forecast
2019Prop
2018Plan
2018Forecast
2019Prop
O&M Capital Allocated (info only)
$M
Keeping the Lights On Optimization/Operational Excellence
Risk Mitigation Embracing the Future
Allocated Costs
November 8, 2018 14 Board Finance & Audit Committee Meeting and Special
SMUD Board of Directors Meeting - Budget 2019
Technology2019 Proposed Budget
$72.4 $42.2$45.5
$37.5 $39.3$34.6
$51.4 $59.8$52.1