Driving Technology
Through Everything We
Do
How We Think About Business
Process Improvements and
Culture Change
2004 Analyst Conference
November 11-12, 2004
Business and Technology
Alignment
Intelligent Expansion/Utilization of
Infrastructure
Superior Regulatory Impacts
Lean and Productive Workforce
Energy of Choice for Consumers
Unsurpassed Safety and Reliability
Business Goals
Example Technology Initiatives
Work Management System
Marketer Interface Automation
OpenLink ETRM
Work Management
Ralph Cleveland
Vice President, Engineering and Construction
Improving Workforce
Efficiency
Primarily due to reductions in overhead
employees with net customer growth
Managing Capital Deployment
$ in Millions
Technology & WMS
Distribution
Pipeline
MGP
Pivotal
Manage cash
Time to achieve earnings
Interior Department deputy secretary applauds canal partnerships
Augusta Chronicle, November 10, 2004
"Without public-private partnerships, like we see right here, you won't have the opportunities for restoration and preservation
that we see here today," said Steven Griles, Assistant Secretary of the Interior.
Natural gas cleanup showdown averted
AUGUSTA FOCUS, June 4, 2003
A dispute that threatened to shutdown a multimillion dollar contamination clean up in Augusta's inner city has apparently been
resolved. Attorneys for Atlanta Gas Light Company and Augusta-Richmond County have met and the original agreements -
widening and re-watering the Augusta Canal, building bicycle paths on the canal, and improving drainage problems - have
been put back into the plan. Atlanta Gas Light has agreed to complete the public works aspect of the canal job but the city has
to foot $9.4 million of that bill for the aesthetic restoration of the canal.
Rediscovering the PAST, Third Level Canal excavation yields artifacts
The Augusta Chronicle,April 2004
Mr. Dayton Sherrouse, the executive director of the Augusta Canal Authority said he hopes to eventually display artifacts (found
in the cleanup effort) in the Augusta Canal National Heritage Area Interpretive Center at Enterprise Mill, where visitors can
learn how Augusta used its waterways to “reinvent itself and define its destiny,” according to the center’s Web site.
Canal Project Brings Promise
METRO SPIRIT, August 19-25, 2004
“There’s a tremendous amount of work going on and I think the community’s going to be amazed what’s happened over
there.” Sherrouse said of the work being done in conjunction with an Atlanta Gas Light Company environmental cleanup
project. “and one day they’re going to go through there and it’s going to be essentially finished and they’re going to go,
“’Whoa! What happened?’”
Managing Our Cost To Add A Customer
$984
$1,000
$1,169
140
125.5
$850
$900
$950
$1,000
$1,050
$1,100
$1,150
$1,200
2002
2003
2004 - Projected
120
125
130
135
140
145
150
155
160
Infrastructure/Meter
Approved Meters
53061
68385
40000
45000
50000
55000
60000
65000
70000
2003
2004
Environmental Recovery Program
Distribution Personnel
Service Personnel
Distribution Equipment
Backhoe
Current Resource Utilization
WORK
VISIBILITY
&
PLANNING
RESOURCE
SCHEDULING
& SUPPLY
PROCUREMENT
INVENTORY
& RESOURCE
LOGISTICS
UTILIZATION
RESOURCE
AVAILABILITY
& BUSINESS
RULES
SERVICE
TERRITORY
OPTIMIZATION
Resource and Work Management
26.7
5.3
12.0
9.4
Total
17.4
2.9
8.3
6.2
Capital
9.3
2.4
3.7
3.2
O&M
Total
2006
2005
2004
Costs*
* Cost in millions
Projected Implementation
Timelines
Improved
Resource
Planning
Efficient
Routing
Improved
Information
Flow
Time Tracking
Truck Delivery
Resource De-
Coupling
Materials
Kiting
Improved
Work Design
Overall
Resource
Effective-
ness
Enabling
Tools
Right
Resources
Business case (A+B)
Work Management System
Benefits
A
Admin
Travel
and
Dead
Time
Available
Time for
Works
Efficiency of
enterprise
processes
Available
Time for
Works
Travel
and Dead
Times
Admin
B
Average
Work Order
Time
Efficiency of
field
technician
Average
Work Order
Time
Before
After
Before
After
Asset, Resource, and Work
Management - Current State
Asset, Resource, and Work
Management - WMS Phase I
Asset, Resource, and Work
Management - WMS Phase II Plus
Desired Outcomes
Maximized
Financial
Performance
Optimized
Resource &
Asset
Performance
Optimized
Workforce
Efficiency
Streamlined
Supply
Chain
Service
Response Time
Customer
Satisfaction
Customer
Retention
Planned Work
Predictive Work
Emergency Work
Asset Downtime
Warranty Work
Travel Time
Response Time
Resolution Time
Contract Labor
Tech Overtime
Repair vs. Replace
SLA Penalties
Warranty Cost
Travel Cost
Inventory Line
Items
Inventory valuation
Emergency
Reorder Costs
Service Part Stock
Outs
Secured
Customer
Loyalty
GPS and Routing Capability
Work Management Solutions Phase I
Automated Dispatch System Consolidation
Work Management Solutions Phase II
Work Management Solution Efforts
Per Customer Metrics
12 months Ended September 30
Building A National
Reputation for Customer
Service Excellence
Beth Reese
Vice President of Customer Service
Customer Service Basics
Different industries set different expectations on
service levels.
Utilities migrate to standards built into tariffs, not
what’s best for the customer
Utility systems are notoriously difficult
Regulatory standards tend to represent lowest
common denominators of service
Large part of volume is effectively credit counseling
and payment arrangements
Customer Service pre-MIA
Customer Needs Service – Who Do They Call?
Not Atlanta Gas Light – They Must Call Marketer
BUT Marketer has to call AGLC to schedule appointment
Inefficient
Can’t schedule appointment directly
Can’t tell if customer has to be on premises
Cumbersome order and confirmation process
Customer Service NOW
Customer on call shorter time
Can schedule most convenient appointment
Will know if they even have to be there!
Immediate confirmation of appointment
Not Atlanta Gas Light – They Must Call Marketer
Marketer can now directly schedule appointment in system
Customer Needs Service – Who Do They Call?
AGL’s annual volume for 2003 was 1,189,922
(YTD through September 842,789)
61 Agents in 2003
YTD AGL annual volume for 2004 is 757,006
54 Agents in 2004
AGL Call Volume Comparison
AGLC email annual volume for 2003 was 566,748
42 agents in 2003
AGLC email annual volume for 2004 was 279,048*
8 agents were transferred to phone agents in May 2004
20 temporary agents were phased out through August 2004
AGL Email Volume Comparison
One Call –That’s All
Responding to the customer’s request – the first time
AGL* NUI
Average Speed of Answer (sec) 31 358
Abandon Rate (%) 2.9 25.7
Customer Complaints (9 mos) ** 241 1,394
Number of Customers 1,850,000 369,000
*All 3 utilities combined.
** As filed with the respective regulatory authorities.
One Call –That’s All
Anticipating the customer’s needs – focused on the voice
of the customer
IVR technology – NUI uses natural language with no
ability to use touch tones
Connecting the customers with needs to the organizations
with help
Understanding the customer complaints to improve service
quality
Leveraging the lessons from the MIA technology
implementation to solve the CIS conundrum
A Future CIS?
CIS
Meter Read
Credit/Collection
Financial
Rates/Billing
Cust/Acct/Premise
Service Order
Meter History
Automated Dispatch
iTron EnScan
PeopleSoft
IVR
Pipeline
Bad Debt
Marketer Interface
EnerAct
Users
Contractors
Presentation
Service
Order
Leaks
Enroll
PWQ
Operations
Business Logic
AGLC
VNG
CGC
ETG
Data
Services
Business
Processes
Integration
Logic
Data
Translation
Automated
Dispatch
SO
Service Order
Automated Dispatch
Meter Reading
MR
Billing
Meter Reads
Meter History
iTron
iTron EnScan
Financial
Credit & Collections
Rates & Billing
People Soft
PS
Bad Debt
B
Logica ARM
Pipeline
Marketer Interface
IVR
Marketer Interface
Eneract
IVR
Cust/Acct/Premise
CAP
CGF
FM
DR
Energy Trading and Risk
Management (ETRM)
System Update
Bob Flavin
Executive Vice President, Business
Support
The Challenge
Rapidly growing business
Need for tighter controls
Current system too manual
Organization structure siloed
Post-Enron world realities
Need for accuracy, scalability, flexibility and auditability
Old Trading System Architecture
The Process
Sapient engaged to assist management on project
Hired VP of IS&T
Conducted due diligence on available packages
Chose OpenLink-Endur/gMotion
Core team of subject matter experts assembled
New Trading System Architecture
Deal
Management
Subsystem
Scheduling
Subsystem
Pipeline EBB
Systems
Accounting
Subsystem
PeopleSoft
Contract
Management
Subsystem
Mid Office
Data
calculation
engine
Electronic
Exchanges
Price Sources
Traders
Asset Managers
Schedulers
Accounting
Contract Admin
Credit
Subsystem
Credit
Trading
Subsystem
Asset
Management
Subsystem
Reporting tool
Centralized Active data
Database should be
implemented in
MS SQL Server
ETRM SAMPLE
SCREEN SHOTS
ETRM
Single point of deal capture – Trade Blotter
ETRM
Real-time Position Page
ETRM
Gas Scheduling Nomination Creation
ETRM
Gas Scheduling Quantity Management
Quarterly Volumes
0.0
0.5
1.0
1.5
2.0
2.5
Sep-01
Dec-01
Mar-02
Jun-02
Sep-02
Dec-02
Mar-03
Jun-03
Sep-03
Dec-03
Mar-04
Jun-04
Sep-04
Quarter Ended
Counterparties & Pipelines
Storage Volumes
Sharing with Affiliates
Counterparty Credit Ratings
(As of 9/30/2004)
Customer Mix
(As of 9/30/2004)
Value at Risk
Sequent's High-Cut Daily Trading & Origination P&L vs. One-day VaR
95% Confidence Interval
($1,150,000)
($650,000)
($150,000)
$350,000
$850,000
$1,350,000
$1,850,000
$2,350,000
$2,850,000
$3,350,000
1-day Historical P/L
1-day VaR Limit
Historical 1-day VaR
The Sequent Trading & Origination P&L data is the unadjusted daily gross margin that does not include
fixed costs such as transport but includes non-affiliate storage capacity for Jefferson Island and Egan.
Management Reporting and
Metrics That Drive Business
VaR is generally not relevant control
DPR sensitivity; 98-10 versus LOCOM
Credit concentration and exposure
Committed capital
Tenor and liquidity