Multi-state electric utility to optimize SAP FERC with HPC America

We're starting 2015 with a terrific long-term project to modernize the SAP Regulatory Reporting (FERC) design of a multi-jurisdictional utility company, including SAP FICO and FERC consulting and the implementation of HPC Utility Financials Accelerator software, which extends the capability of the original FERC module and is certified by SAP as powered by the NetWeaver® technology platform.

Our client is one of the largest electric distribution utilities in the United States, serving six million customers across five states. After having revamped its SAP Financials system in recent years, the utility determined that optimizing SAP Regulatory Reporting is the next step in modernizing its SAP ERP.

Late last year, a joint team of HPC's SAP consultants and the client's subject matter experts identified a number of key regulatory reporting challenges the utility faces. The Rates Department does not have easy, independent access to complete SAP FERC data; cost flows are unusually long and complex; the allocation model is not currently visible to the SAP FERC process; and SAP FERC run times are unusually long and error-prone.

To address these issues, HPC will replace the utility's legacy FI-centric (GL-based) cost model with a modern CO-centric model that traces all primary and secondary costs, eliminates reconciling differences between SAP FI, CO, and FERC, and simplifies cost flow complexity with little disruption to current business processes. Through HPC's system design and Utility Financials Accelerator software, the utility will benefit from a faster monthly FERC close, improved rate case support, and greater end-user self-sufficiency for regulatory reporting activities. The new system is slated to go live in January 2016.

Rochester Public Utilities optimizes SAP FERC with HPC America

Earlier this year, we wrote about our FERC optimization work at RPU. Our latest customer success story describes how the Minnesota utility company now enjoys streamlined FERC reporting and automated assigned of costs to FERC accounts; a more accurate way to calculate actual labor charges; and a consolidated process for managing Fleet costs and equipment charges. RPU's enhanced regulatory reporting on SAP utilizes HPC Utility Financials Accelerator, which is certified by SAP as powered by the NetWeaver technology platform. Read the complete case study.

New Project: Automated SAP FERC Processing

This week kicks off a new project for another utility company on SAP. We're going to assess the utility's SAP FERC processes, many of which have become manual and are now conducted outside of SAP over the years. Our customer understandably wants to automate these labor-intensive steps, so we'll be considering a number of different ways to optimize their current configuration of the SAP regulatory reporting module and streamline its processes. 

We'll also take into account some related initiatives the company may undertake in the future -- such as leveraging Plant Maintenance further, utilizing the HR module, and migrating to the SAP New General Ledger -- and factor these elements into our FERC automation recommendations.

The net result of HPC's assessment will be a highly actionable report for the utility company. It will lay out several optimization paths to automate currently manual processes and to manage labor, fleet, and cost center costs more effectively within SAP, thereby minimizing the use of external spreadsheets and applications.

In our experience, many utilities that have been running SAP for years benefit from this type of rapid evaluation and action plan. Over time, the configuration of their FERC module and related business processes morph into something less than ideal, and the best way forward is an outsider's fresh look. If your regulatory reporting processes aren't easily managed within SAP, such that management can't get the data it requires quickly and efficiently, contact us to talk about your own assessment. And if you're considering a New GL migration as well, let's talk about prototyping it for you.