Manitoba Hydro is a Crown Corporation and one of the largest energy utilities in Canada. The company serves 573,438 electric customers throughout Manitoba, and 279,268 natural gas customers in various communities throughout southern Manitoba.
The company generates nearly all of its electricity from self-renewing water power using 15 hydroelectric generating stations, and exports electricity to utilities in the mid-western United States, Saskatchewan and Ontario.
With capital assets-in-service at original cost exceeding $22.3 billion, the company needed a more robust process and methodology to optimize, communicate, and defend its asset investment and replacement strategy, both internally and to external stakeholders, including its regulator, the Manitoba Public Utilities Board (PUB).
Meeting long-term energy needs through Investment
The demand for energy continues to grow as a direct result of Manitoba's continued economic growth. Investment in the renewal of existing infrastructure and system expansion is an ongoing strategic priority for the company. To support this goal, Manitoba Hydro recognized an opportunity to improve the efficiency, consistency and transparency of its investment planning process.
In 2010, the company issued an RFP for the "Supply and Implementation of an Asset Investment Planning System" to help the company:
Streamlined investment approvals and process efficiencies
To address feedback from the PUB, Manitoba Hydro set out an ambitious goal to implement more sophisticated asset investment planning tools, processes and techniques prior to the next rate application. Over the past two years, Manitoba Hydro has initiated an enterprise-wide change to standardize how business cases are developed and managed through their lifecycle. Today, investment proposals are entered in C55 and can be evaluated on a more consistent and objective basis across the organization, enabling quicker approvals. This has also reduced the duplication and manual effort that went into preparing different versions of business cases and reports for different audiences.
Data consistency and integrity
C55 provides an enterprise-wide platform for all asset investment planning data through integrations with EAM, APM, ERP, GIS and a variety of other systems. At Manitoba Hydro, C55 is integrated with the company’s SAP system, exchanging critical financial data with various SAP modules. This ensures decisions are based on the most up-to-date data. Advanced analytics, planning, and decision making are carried out in C55, with project decisions relayed back to the SAP system for execution.
Fact-based decision making for project portfolio decisions:
The implementation of C55 has enabled Manitoba Hydro to include more sophistication in the development of capital plans across all lines of business. Standardizing on a common platform of technology, and a common platform to value all investments has enabled Manitoba Hydro to better prioritize and pace the way it invests in capital projects.
Consistent assessment of risk
Manitoba Hydro needed a capital and asset investment planning program that would provide timely and consistent information regarding the condition of its asset base. C55 enables Manitoba Hydro to identify and track asset-related risks and predict how these risks will change over time so that long-term risk mitigation strategies can be developed. C55's optimization capability allows Manitoba Hydro to evaluate the impact of alternative capital funding levels, and develop a long-term, risk-informed asset investment plan based on the optimal level of spend.
Best-in-class asset management governance
As the first Copperleaf customer to implement a corporate-wide value framework, Manitoba Hydro continues to lead in developing best practices in asset investment planning. The company recently implemented a corporate governance structure to ensure alignment of the asset management strategy and decision making across the enterprise on an ongoing basis. It consists of three tiers:
Corporate AM Executive Council
- Executive sponsorship: Provides oversight on the corporate asset management strategy
Corporate Asset Management Steering Committee
- Division management: Provides guidance on all corporate asset management functions, issues and projects/initiatives relating to asset management
Asset Management Advisory Group
- Line management or specialist advisory group: Resolves or advises on technical or financial issues pertaining to asset management activities and projects
This case study is the copyrighted work of Copperleaf Technologies. ARMS Reliability are authorized distributors and implementation partners for Copperleaf C55™