Driving Technology

EX-99 4 driving_technology.htm DRIVING TECHNOLOGY Driving Technology

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

Admin

Travel

and

Dead

Time

Available

Time for

Works

Efficiency of

enterprise

processes

Available

Time for

Works

Travel

and Dead

Times

Admin

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

Service Order

Automated Dispatch

Meter Reading

Billing

Meter Reads

Meter History

iTron

iTron EnScan

Financial

Credit & Collections

Rates & Billing

People Soft

Bad Debt

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