SAP FERC Enhancement Project

This summer, we conducted a top-level assessment of a utility's SAP IS-U/FERC module configuration and business processes, and identified a number of enhancements that would benefit the company—both in its daily operations and for its future plans to join the state ISO.

Next week, we begin the full-scale implementation to realize the following four goals:

1. A streamlined FERC process that can be run monthly.


2. An efficient and accurate process for handling actual labor charges, secondary cost element credits on cost centers, and related secondary cost element debits on non-capital PM/Internal Orders, such that payroll taxes and benefits currently included in fully loaded labor rates are calculated correctly and applied through overhead processes.


3. A consolidated process to manage Fleet costs and equipment charges, such that line item detail for maintenance of equipment does not appear in distribution/transmission O&M FERC accounts.


4. An efficient and automated way to determine appropriate allocations to FERC accounts without having to mimic the flow-of-cost trace outside of SAP.

This work will utilize key functionality of HPC's SAP-certified software solution Utility Financials Accelerator (UFA) that is not included in the standard FERC module, in order to increase the project's efficiency; reduce ongoing trace workload and errors; improve the speed and accuracy of new order creation; automate translation of natural accounts to regulatory categories; and facilitate better ongoing table maintenance.

Stay tuned for additional insights and results as the project unfolds in the coming months.