LAS VEGAS, Nev., Nov. 11, 2002 — The next utility industry leaders will be companies and independent transmission organizations who invest in their IT infrastructure even while uncertainty exists around the Federal Energy Regulatory Commission’s (FERC) latest standard market design provisions, Stephen Behrens with Cap Gemini Ernst & Young said during a presentation recently.
Behrens, a utility restructuring specialist with Cap Gemini Ernst & Young, gave his presentation at the 50th annual Energy Information Technology Conference & Expo in Las Vegas.
In addition, an application-independent technical framework now exists to support the business requirements for enterprise-wide risk management in the utility industry, according to Terry Butler, a vice president for Cap Gemini Ernst & Young, a global IT and management consultancy.
Butler also presented his thoughts at the Conference & Expo. In a breakout session discussing the implications of Standard Market Design on IT investments, Behrens explained why companies should resist the temptation to rest on their haunches while waiting for a final industry plan. “By the time the final SMD is decided — and I estimate it might be 2006 before that happens — it will be much too late for companies to begin their technology planning and implementation. In order to thrive in this new market environment, RTOs, ISOs and other market participants need to become ‘adaptive enterprises’ through strategic investments in IT.”
In a session titled “Technology Solutions for Enterprise Wide and Strategic Risk Management,” Terry Butler, vice president for Cap Gemini Ernst & Young, led a panel discussion on how the technology that enables the new risk management landscape is here today.
“Risk management is evolving from control-based processes that are reactionary to forward-looking processes that attempt to influence risk,” Butler said. “The goals of an evolving risk management program are to control earnings surprises and anticipate future scenarios by focusing on risk drivers and their distribution. By using data warehouses to enable real-time decision support, the utility industry can move beyond operations support and make better informed decisions on their enterprise-wide risk management strategy.”
About Cap Gemini Ernst & Young
The Cap Gemini Ernst & Young Group is one of the largest management and IT consulting organizations in the world. The company offers management and IT consulting services, systems integration, technology development, and design and outsourcing capabilities on a global scale to help businesses continue to implement growth strategies and leverage technology in the new economy. With more than 5,000 dedicated consultants engaged in Energy, Chemicals, Mining and Utilities projects across Europe, North America and Asia Pacific, the Group’s Global Sector Unit – Cap Gemini Ernst & Young Energy, Utilities & Chemicals – serves the business consulting and information technology needs of many of the world’s largest players of this industry. More information about individual service lines, offices and research is available at www.cgey.com/energy.