Audit Service

The vendor is required to provide that audit service for a comprehensive management and operations audit provides a comprehensive assessment of a utility’s construction program planning progress and an evaluation of the utility’s operational efficiency.
- This management and operations audit will include a review of the following elements:
• Governance and management
• Physical and cyber security
• Information systems
• Electric operations
• Gas operations
• Procurement
• Project management
• Customer operations
- Services:
• Governance and management
o Agency objectives into the strategic planning process.
o Agency objectives in investment planning decisions.
o The utilities monitor and allocate capital and programmatic spending and account for potential impacts to disadvantaged communities
o The extent to enterprise risk management programs and internal controls regarding financial and non-financial risk areas provide adequate ratepayer protection and ensure adequate oversight.
o Executive management makes resource allocation decisions between regional jurisdictions
• Physical and cyber security
o The utilities protect critical energy infrastructure, including assets, sites, and physical and virtual systems.
o The utilities protect customer privacy, including but not limited to electrical and gas consumption data, and examine any cybersecurity/information security systems and procedures protecting customer personally identifiable information.
o Evaluate existing disaster recovery and security incident response plans and how the utilities test these plans.
o Assess the adequacy of the utilities’ comprehensive security plan.
o Evaluate the utilities’ processes for compliance with state and federal security event notification requirements.
o Evaluate the utilities’ process for hiring senior security staff, including, but not limited to, onboarding staff, communicating expectations and responsibilities for roles, and reporting personnel changes to the department.
• Information systems
o Determine if information systems effectively support current utility operations.
o Determine the adequacy of short- and long-term information systems plans.
o Assess changes in how the utilities monitor internal satisfaction metrics and it performance since the previous management and operations audit.
o The implementation of recent significant information systems programs to determine if they will achieve the intended goals in a cost-effective manner.
o Evaluate the capability of customer information systems to meet current and future needs and determine the adequacy of plans to update or support the existing systems.
• Electric operations
o Evaluate near- and long-term electric planning to meet future demand and capacity requirements, including but not limited to the extent to which the planning process considers:
- Asset condition
- Reliability
- Resiliency
- Climate change resiliency plan
- Distributed energy resources
- Electrification / electric vehicles
- Energy storage
- Energy efficiency
- Demand response
- Distributed generation
o Ensures accuracy in the processes for billing and tracking billing credits associated with vder and the creation of associated renewable energy credits.
o Review non-wires alternative project development and selection processes, evaluation criteria, and any changes to oversight of such projects since the last management and operations audit.
o The adequacy of staffing levels and determine the extent to which staffing resources are dedicated to.
o Evaluate the adequacy of resiliency planning, asset management, and replacement programs.
o Review implementation of reliability report mitigation strategies and how those strategies are considered in the overall planning process.
o Review approach to the selective undergrounding program.
o Changes to electric load forecasting processes since the previous management and operations audit and assess the accuracy of electric load forecasts.
o Various forecasts are synchronized and incorporated into the planning process.
o Incorporates the impact of incremental distributed energy resources in its load forecasting process.
o Incorporates probabilistic electric load forecasts into the planning process.
• Gas operations
o The utilities’ non-pipeline alternatives project development and selection processes and evaluation criteria and compare these processes to those employed for non-wire alternatives.
o The utilities implement ratepayer-funded economic development grant programs and ensure those programs are aligned with requirements.
o Evaluate changes to the gas load forecasting processes and assess the accuracy of the utilities’ gas load forecasts since the previous management and operations audit.
o Various forecasts are synchronized and incorporated into the planning process.
o The utilities incorporate the impact of decarbonization of heating in the load forecasting process.
o The utilities incorporate probabilistic gas load forecasts into the planning process.
• Project management
o Determine the extent to which project estimating processes support the development of accurate estimates of required customer contributions.
o The capital project decision-making process, including risk assessment, variables considered, and tools utilized
o The adequacy and accuracy of information provided to the department related to capital project selection, project/program ranking and prioritization, and schedule, budget, and rate plan adherence.
o The utilities integrate requirements into their project prioritization methodologies.
• Customer operations
o Evaluate modifications to customer operations internal controls and processes since the previous management and operations audit.
o The accuracy of reports filed with the commission, including the systems used to generate the reports, and assess any planned changes to the reporting process.
o Evaluate shared meter investigation processes, resources, documentation, staffing and training adequacy, and quality assurance measures.
o The utilities ensure the accuracy and timeliness of customer bills, including bill estimation procedures and efforts to minimize the number of estimated bills.
o The utilities monitor and manage complaint levels, work backlogs, billing and metering issues, and other performance problems.
o Assess the utilities’ outreach and marketing to customers regarding energy efficiency, low income, consumer protections, gas safety, and assistance programs.
o The utilities monitor staffing trends for customer service positions and assess the performance of hiring, retention, and training efforts.
o Assess procedures for remote electric service disconnection for residential customers through its advanced metering infrastructure to ensure compliance with the home energy fair practices act.
o The utilities ensure conformance with the commission’s energy affordability program.
- Contract Period/Term: 2 years