BC HYDRO SUPPLY CHAIN APPLICATIONS PROJECT EXHIBIT A-8

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1 Patrick Wruck Commission Secretary Website: Sixth Floor, 900 Howe Street Vancouver, BC Canada V6Z 2N3 TEL: (604) BC Toll Free: FAX: (604) Log No VIA EFILE April 20, 2017 BC HYDRO SUPPLY CHAIN APPLICATIONS PROJECT EXHIBIT A-8 Ms. Summer J. Trudell Account Executive ABB Enterprise Software Suite Perimeter Center Terrace Atlanta, Georgia United States Dear Ms. Trudell: Re: British Columbia Hydro and Power Authority Supply Chain Applications Project Application Further to your April 6, 2017 filing of intervener evidence, enclosed please find the Commission s Information Request No. 1. In accordance with the regulatory timetable set out in Order G-53-17, please file your responses electronically with the Commission on or before Friday, May 12, Yours truly, Original signed by: Patrick Wruck JR/dg Enclosure PF/BCH Supply Chain/GC/A-8_BCUC IR No. 1 to ABB on Intervener Evidence

2 A. GENERAL INFORMATION ON ASSET SUITE BRITISH COLUMBIA UTILITIES COMMISSION INFORMATION REQUEST NO. 1 TO ABB ENTERPRISE SOFTWARE British Columbia Hydro and Power Authority Supply Chain Applications Project Application 1.0 Exhibit C-3-3, p. 2 Asset Suite 1.1 Many of the following information requests seek responses that may rely in whole or in part on having access to specific information relating to British Columbia Hydro and Power Authority s (BC Hydro) current IT platform and/or intended detailed project scope. Please explain any assumptions ABB has made where ABB does not have specific information, and/or discuss any limitations ABB would place on the accuracy of its responses. 1.2 Please provide an overview of the difference between Asset Suite 8 and Asset Suite 9. In the response please include discussion on the relevant high level capabilities provided by Asset Suite 9 that are not available in Asset Suite 8 and whether Asset Suite 8 and Asset Suite 9 operate on the same platform/database. When were they released? On page 2 of ABB s Evidence, ABB states that the 13 gaps identified by BC Hydro are not true Asset Suite software gaps, but issues derived from ineffective or incomplete use of current software. 1.3 What is meant by current software? Is ABB referring BC Hydro s current software (Asset Suite 8) or to ABB s current release of Asset Suite 9? Please indicate the extent to which the discussions/assertions put forward in your evidence filing are predicated upon an upgrade to Asset Suite 9 or whether they can be accomplished within Asset Suite If ABB views the continued use of Asset Suite 8 as a viable option, what customization and custom interfaces are required to close the gaps identified by BC Hydro? To what date has ABB committed to provide support for Asset Suite 8? If ABB has not made a specific commitment to continue to support of Asset Suite 8, for how long after the release of Asset Suite 8 did ABB continue to support its predecessor? For Asset Suite 9, what customization and custom interfaces are required to close the gaps identified by BC Hydro? Please compare the amount customization required with the amount of customization required to interface SAP Supply Chain to Asset Suite Work and Asset Management. 2.0 Exhibit C-3-3, pp. 2, 14-15; Exhibit B-1, Attachment P, pp Cost of alternatives On page 2 of ABB s Evidence, ABB states that in its view an upgrade of Asset Suite is a far more costeffective means of eliminating or reducing the 13 identified gaps than implementing SAP Supply Chain. 2.1 What does ABB mean by an upgrade of Asset Suite? Is this statement specifically referring to an upgrade to Asset Suite 9 or meant as a more general statement, i.e., including the upgrading Asset Suite 8? BCH-Supply Chain Applications Project 1 BCUC IR No. 1 to ABB Enterprise Software

3 2.2 What does ABB mean by far more cost-effective? If applicable, please provide a percentage range difference. Please provide specific evidence to support this statement. The following tables were copied from Attachment P in the Application: Table 8: Technology Alternatives # Alternative Description 1 PassPort Base (will not deliver full capability) 2 PassPort Enhanced (will deliver full capability) 3 SAP (will deliver full capability) Deploy additional capabilities on PassPort that are not currently in use to meet as many of the business requirements as possible. No significant customizations would be made to PassPort or other systems under this alternative. This alternative would not deliver the full capabilities described in the Supply Chain Business Model. Deploy additional capabilities on PassPort, but where functional gaps exist in PassPort they would be closed by customizing PassPort. Additional interfaces would be built between PassPort and SAP to improve the integration. This alternative would deliver the full capabilities described in the Supply Chain Business Model. Deploy SAP for supply chain, keeping PassPort for work management and asset management, deactivating inventory management and purchasing in PassPort. This alternative would deliver the full capabilities described in the Supply Chain Business Model. Table 9: Alternatives Cost Analysis Objective Criteria Measure Alternative 1 PassPort Base Project Costs Capital + IOMA Base OMA OMA / year Costs Future anticipated Total lifecycle cost (Based on 10-year asset life) Capital I year Project + Base OMA + future anticipated capital costs over expected life of asset Alternative 2 PassPort Enhanced Alternative 3 SAP In 2015, BC Hydro estimated the project costs to upgrade the Asset Suite 8 in the table above. Are the project costs estimates of the PassPort Alternatives consistent with ABB s experience? Please elaborate providing relevant comparable examples. On page 14 of ABB s Evidence, ABB states that the Asset Suite 9 platform has actually proven to be a lower-cost technology platform to support. 2.4 Please provide an estimate of the average percentage reduction in annual support costs Asset Suite users can expect when they upgrade from Asset Suite 8 to Asset Suite Please provide evidence to support the assertion that the Asset Suite 9 platform has lower support costs. BCH-Supply Chain Applications Project 2 BCUC IR No. 1 to ABB Enterprise Software

4 2.6 How long and how much does ABB estimate it would cost to produce a detailed estimate of the costs and schedule to upgrade Asset Suite 8 and Asset Suite 9. Please provide some detail of the process that ABB would proposed and the expected accuracy range of the resulting cost estimate. 3.0 Exhibit C-3-3, p. 16 Asset Suite market share On page 16 of ABB s Evidence, ABB provides a graph from ARC Advisory Group which shows ABB market share of Enterprise Asset Management software for electric power generation to be 31 percent in What is ABB s market share of Supply Chain software in the electric power generation and/or transmission and distribution market? How has it changed in the past five years? 3.2 What percentage of ABB s Asset Suite user base uses Asset Suite as their primary IT solution for managing their supply chain? 3.3 What percentage of ABB s Asset Suite user base has upgraded to Asset Suite 9? 3.4 What percentage of ABB s Asset Suite user base are considered large integrated utilities, and of those what percentage have upgraded to Asset Suite 9? 3.5 Has ABB s Enterprise Asset Management market share changed since 2010? If yes, by how much? If available, please provide additional historical ARC Advisory Group graphs. B. ABILITY OF ASSET SUITE TO CLOSE IDENTIFIED GAPS 4.0 Exhibit C-3-3, pp. 2-3 Gap 1: Inability to manage service-related spend On pages 2 and 3 of ABB s Evidence, ABB states that its software includes the Asset Suite Contract Management application and describes its functionality with respect to managing contracts. ABB also states that the Asset Suite Compose tool would allow BC Hydro to add, update, or rename fields, which should readily allow for all services to be defined as manageable work units and that it is questionable as to why Asset Suite would score a 2 on its ability to close gap Is the Asset Suite Contract Management application and Asset Suite Compose tool available to both Asset Suite 8 and Asset Suite 9 users? 4.2 Please confirm that the Asset Suite Compose tool allows for variable services to be defined as manageable work units. 4.3 Please explain the above statement should readily allow. Are there any know issues with the proposed solution that may prevent some services from being defined as manageable work units? Is the proposed solution to use the Asset Suite Compose tool to allow for all services to be defined as manageable work units a standard configuration and use of Asset Suite? Please provide evidence of users who have used Asset Suite as proposed. 4.4 Is it ABB s position that Asset Suite can fully close gap 1 without any customization? Please elaborate noting any differences in the ability of Asset Suite 8 and Asset Suite 9 to close the gap and separately describe any customization required. BCH-Supply Chain Applications Project 3 BCUC IR No. 1 to ABB Enterprise Software

5 5.0 Exhibit C-3-3, pp. 3 4; Exhibit B-1 (Application), p. 3-9 Gap 2: Limited contract management On page 3-9 of the Application, BC Hydro states that in SAP, more real-time operational contract information is available to users than in Passport and requisitions allow for both services and materials in one process unlike PassPort. On pages 3 and 4 of ABB s Evidence, ABB states that as part of Purchased Materials, users can enable the viewing of real-time operational contract information of both materials and services. 5.1 Is Purchased Materials available to both Asset Suite 8 and Asset Suite 9 users? 5.2 Do Asset Suite 8 and Asset Suite 9 allow for services and materials requisitions in one process? If not, please explain? 6.0 Exhibit C-3-3, pp. 3 4; Exhibit B-3, BCUC IR 7.1 Gap 5: Difficulty managing the supply chain for capital projects In response to BCUC Information Request 7.1, BC Hydro stated that the capability score for PassPort was adjusted down from a 2 (based on technical ability) to 0 after considering the high complexity of integrating PassPort with BC Hydro s existing project management as it did not believe that the integration could be reasonably built. On pages 3 and 4 of ABB s Evidence, ABB states that Asset Suite has multiple avenues for integrating to other business information systems including SAP Project Systems and that numerous utility installations can testify to this functionality. 6.1 Please list and describe the most common avenues used for integrating Asset Suite to SAP Project Systems. In the description please note whether the integration avenue is applicable to Asset Suite 8, Asset Suite 9 or both and the amount of customization required to implement. 6.2 Please confirm that ABB is aware of numerous installation where Asset Suite has been integrated to SAP Project Systems, please provide a list of the utilities that ABB is aware of who have integrated Asset Suite with SAP Project Systems. In each case what version of Asset Suite was integrated, what year did the integration take place, what integration avenue was used and how much customization was involved? BCH-Supply Chain Applications Project 4 BCUC IR No. 1 to ABB Enterprise Software