Using ArcGIS for Regulatory Compliance ..... and Beyond
Using ArcGIS for Regulatory Compliance.....and Beyond
Brazilian Electric Sector Overview
Free Market
Consumers80.0 million Consumers4
1,882 Consumers5
114 TWh of billed energy2
Captive Market
79.0 million Consumers4
346 TWh of billed energy2
Transmission
• 104 Companies³
• 129,713 km of transmission lines4
• Eletrobrás: ~47% of total assets
Distribution
• 63 Companies
• 460 TWh of billed energy2
• Top 5: ~45% of the market
Competitive Power Supply
Generation
• 143 GW of installed capacity1
• 82.74% Renewableenergy1
• Eletrobrás: ~32.4% of total assets
UHEs
A Little Bit About CPFL… Largest private player in Brazilian electricity sector
EBITDA: US$ 635 million and Net Profit of US$ 123 million
Presence in the most developed regions of Brasil
Leadership in distribution segment, trough nine companies and market share of 14,3%
High potential in per capita consumption
Distribution, 40%Generation;
34%
Comercial. & Services,
18%
Renewables, 8%
EBITDA per Segment
CPFLPaulista
CPFL Piratininga
CPFL Jaguariúna
CPFLSanta Cruz RGE RGE Sul Total
Cities 234 27 18 27 255 118 679Substations 270 52 44 27 76 62 531Distribution Grid (‘000 km) 122 23 11 10 81 65 312
Concession area (‘000 km2) 90.4 6,8 8.8 11.8 90.7 98.5 307
Customers (millions) 4.3 1.7 0.23 0.21 1.5 1.3 9.24Energy (TWh) 29.2 13.5 1.6 1.0 10.0 8.0 63.3
Distribution Companies
In the Brazilian Regulatory Framework, all of a utiltity’s revenue is determined through a strictregulatory review process
Utilities make no money on the sale of electricity – it’s just a pass trhough agentRevenue and tariffs/rates determined by a periodic regulatory review process (RTP)
In other words, and as far as revenue is concerned, utilities are viewed strictly as serviceproviders (deliverying power) and not as suppliers of electricity (energy) as a product
This tariff review is carried out by the Federal Electrical Regulator – ANEEL – with theutility every 4 or 5 years
The Challenges Brazilian Utilities Face
ANEEL – National Agency for Eletric Energy
ANEEL began operations in December 1997, having as its main responsibilities:
Regulate the generation (production), transmission, distribution and commercialization of electric energy, establishing and implementing government policies and regulations regarding the electrical sector
One of the its main duties within its mission is to establish electrical tariffs and rates
The main regulatory mandates and rules are established through:
MCPSE / MCSE – Electrical Sector Asset Accounting Manual and Accounting ManualsPRODIST – Distribution ProceduresPRORET – Tariff Review Procedures
The PRODIST and MCPSE/MCSE procedures set out what needs to be handed in to the regulator
PRORET sets out how the regulatory rate review process is carried out
The Regulatory model is one of incentive-based regulation, not cost-plus
ANEEL – National Agency for Eletric Energy
Distribution Geo Database (Esri)
GIS Server with applications to validate data
WEB GIS to internally share data
Online Content and
Services
Access Security
ANEEL Users
ETL
AM/FMAsset Accounting DataBilling DataLosses dataQoS (SAIDI/SAIFI Data)
Utility Companies
ANEEL Side
Internet
Why is this important?
WHY IS THIS IMPORTANT?
Why is this important?
Why is this Important?
ManagedRevenue
Return onNetwork
Investments(WACC x gRAB)
QRR(Depreciation x
nRAB)
Losses andLoss Trajectory
QoS(XQ + identifications)
OPEXX
Benchmark
Regulatory Deliverables
The R-GIS (“BDGD”) – Georeferenced Electrical Distribution Database
Of special interest to us in GIS is the R-GIS
• Regulatorily required annual deliverable• Single data model at a National Level – ALL utilities have to use it!• Over 45 entities, 1400 fields and close to 1000 relationships• Covers:
• Asset description (technical data, location, entry into service dates);• Accounting data (mean or unit costs depending on type of asset);• Metering; and Billing;• Commercial;• Engineering;• QoS;• Balance of Energy, Technical and Non Technical Losses;• Management KPIs.
• Shapefile-based• Integrated by ANEEL into a national distribution database• Reconciled against other accounting deliverables (e.g. MCPSE/MCSE)
• If an asset doesn’t reconcile between the physical asset database (BDGD) and the accounting database (MCPSE), it’s coming out of the shareholder’s pocket
• All regulatory audits and inspections based on the R-GIS
Why is this Important?
ManagedRevenue
Return onNetwork
Investments(WACC x gRAB)
QRR(Depreciation x
nRAB)
Losses andLoss Trajectory
QoS(XQ +
indemnifications))
OPEXX
Benchmark
PGR:PCP
PGR:GPER
Regulatory Deliverables
PGR:ETLPGR:VER
PGR:GEAT
PGR:GQUAL
PGR:GSER
PGR
Tabular and Spatial Reports
Asset ManagementDashboardGIS
FI/AA and PM
CCS
Engineering
QualityAnalysis
KPIs
Data modelDomains
Validation
Reconciliation
Quality RegulatoryDeliverables
BDGD - ShapefilesRCP - Excel
BDGD
ETL
Importing andConverting
Regulatory Management Portal
RCPBDGD
PRO
DIST
Mod
ule
10
Regulatory LossManagement
Strategic AssetManagement
Corp
orat
e Sy
stem
s
... Simulation
Regulatory Compliance requires large investments in both financialand human resources
Compliance generates vast amounts of business and operational data
How can we leverage this data to generate internal business value,over and above complying with the regulator?
Digital Transformation is about effectively using information to bettermanage real-world assets and realities
Why aren’t we generating more value from this?
LossesRegulator sets out loss calculation parametersThese don’t always reflect real world situationLet’s use the data and framework we have:
To improve our losses,TechnicalNon-technical
To build a case for the regulator to consider our realityinstead of ad-hoc network parameters
Beyond Compliance: Two initial Applications
Asset Management
Where is the Money?Where and what in is my investment going toWhere and what in is my revenue coming fromWhere and in what should I be investing and where should I becutting backHow is my QoS affecting my revenue and my costs?
Beyond Compliance: Two initial Applications
Loss Calculations
Beyond Compliance: Two initial Applications
Loss Calculations
Beyond Compliance: Two initial Applications
Loss Calculations
Beyond Compliance: Two initial Applications
Loss Calculations
Beyond Compliance: Two initial Applications
Loss Calculations
Beyond Compliance: Two initial Applications
Loss Calculations
Beyond Compliance: Two initial Applications
Asset Management – Return on Investment (ROI)
Beyond Compliance: Two initial Applications
Asset Management – Regulatory Revenue
Beyond Compliance: Two initial Applications
Asset Management – QoS (SAIDI)
Beyond Compliance: Two initial Applications
Asset Management - QoS (SAIDI)
Beyond Compliance: Two initial Applications
Asset Management
Beyond Compliance: Two initial Applications
Asset Management
Beyond Compliance: Two initial Applications
Leverage the power of the Platform to:Get this data out to as many people as possible in theorganization
Use Portal for ArcGIS
Use new components and tools to effectively empowerpeople to use this information in multiple ways, reflecting themultidiciplinary nature of the electric business
e.g. ArcGIS for PowerBI
Beyond Compliance: Looking Ahead
Beyond Compliance: Looking Ahead
Thank You!
Beyond Compliance: Looking Ahead
Alexandre Nogueira AleixoCPFL [email protected]+55 16 993297058
Augusto César de [email protected]+55 12 996038991