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Helping Indianapolis Power and Light to develop a new energy efficiency tracking system to address an evolving regulatory framework


“I was very satisfied with MCR’s analysis and the final work product. Beyond enabling our tracking system development process, this provides us with the process documentation that we had neither the time nor the discipline to complete.”

—Jake Allen, DSM Program Development Manager


Background

The Indiana Senate Enrolled Act 340 of 2014 rolled back mandated annual energy efficiency savings and eliminated joint, statewide delivery of several programs in favor of utility-specific program portfolios and goals based on utility integrated resource plans. Subsequent regulatory guidance clarified tracking and reporting requirements while also providing utilities the opportunity to recover lost sales revenue and earn a performance incentive. Indianapolis Power & Light (IPL) had been reliant on the prior statewide program administrator for most of its energy efficiency tracking and reporting, so it found itself in need of a robust tracking system capable of meeting reporting requirements and capturing information required for calculating lost sales.

Solution

MCR worked with IPL to develop a business requirements definition and scope of work leading to a set of options and a business case for how to proceed with development of a new tracking system. We interviewed IPL program management staff and third party implementation vendors to understand and document the “current state” of IPL’s data, reporting and business processes, providing a presentation on the current state in a workshop with the IPL project team to ensure alignment around our observations and findings. Next, we developed a “future state” for the new tracking system by conducting a process-driven discovery to establish and document the specific needs, features and functionality of the system, presenting and validating the future state in a second workshop. Using the current and future state results, we developed a business requirements and system specification document which defined the options for implementing either an “off the shelf” or custom tracking system solution. Finally, MCR created a business case that considered costs, timelines and risk/reward assessments for each option.

Results

IPL assessed the results, the options and the business case, and concluded that a request for proposal (RFP) for an off the shelf tracking system solution was in its best option. Using MCR’s pre-screened bidder list, insights into potential vendors, business requirements and system specification materials, the MCR-IPL team began development and execution of a solicitation. The resulting RFP yielded substantially consistent proposals that were able to be evaluated efficiently. The turnaround time from completion of the MCR analyses to execution of the RFP solicitation and selection of a vendor was under three months. IPL was able to undertake contracting and begin implementation quickly and efficiently.