Standards for Electronic Business Transactions in the Restructured Electricity Industry Presented to The Committee on Finance and Technology National Association of Regulatory Utility Commissioners By Peter H. Byrne Chairman, Utility Industry Group July 27, 1998

What are the universal business processes in restructuring? b Enrollment b Metering b Billing b Payment b Write-Off

What are the information flows? b Enrollment VolunteerVolunteer EligibilityEligibility Selection of EGSSelection of EGS Confirmation of selectionConfirmation of selection Switching to another EGSSwitching to another EGS TerminationTermination

What are the information flows? b Metering Meter informationMeter information Historical usageHistorical usage Current usageCurrent usage

What are the information flows ? b Billing Combined or individualCombined or individual b Payment RemittancesRemittances AdjustmentsAdjustments Funds transferFunds transfer b Write-Off

Why electronic processes for data exchange? b Allows information to be transmitted at higher speeds and lower costs b Reduces the opportunity to introduce errors b Provides a more easily navigated audit path

Why standards for data exchange? b Common language and format b Allows all parties to develop the business processes and automated systems needed to facilitate the exchange of business information in the restructured electric industry.

Why standards for data exchange? b Proven benefits of EDI include: Uniform communications with trading partnersUniform communications with trading partners Reduced errors, improved error detectionReduced errors, improved error detection Better auditability and controlBetter auditability and control More timely communicationsMore timely communications Rapid exchange of business informationRapid exchange of business information

Why standards for data exchange? b Proven benefits of EDI include: Reduced paperwork and associated costsReduced paperwork and associated costs One time data entryOne time data entry On-line data storageOn-line data storage Faster management reportingFaster management reporting Reduced clerical workloadReduced clerical workload

Customer System Materials System Financials System Company A's Proprietary Internal Formats Sales System Billing System Company Z's Proprietary Internal Formats VAN G VAN H Direct Connection The Internet ANSI X12 Standard National Formats... the dictionary, grammar, syntax, and spelling rules of our common 'language' TranslationTranslation TranslationTranslation TranslationTranslation TranslationTranslation Banks Customer System Typical EDI Relationships

What is the UIG? b The Utility Industry Group (UIG) is a voluntary, not-for-profit industry action group dedicated to the advancement of EDI and electronic business processes within the electric, gas, and combination utility industry.

What is the UIG? b The UIG encourages and promotes the use of national ASC X12 standards as the recommended method of EDI, in order to promote the growth and timely implementation of EDI within the utility industry. It support of this, it provides industry-specific implementation conventions for the use of EDI.

What is the UIG? b The UIG also provides a forum for the exchange of ideas related to Electronic Commerce/EDI and its influence on the business needs of the industry.

Who are the members of the UIG? b Members of the UIG represent electric and combination utilities, their suppliers, their customers, electric generation suppliers, and other interested action groups. We also think that there would be mutual benefit from the active participation of the various Public Utility Commissions in our organization.

What is the UIG role in the standard setting process? b The UIG does not create new EDI standards. It does participate in the ANSI ASC X12 process that creates cross-industry standards. b The UIG provides convention documents that help utilities, suppliers, and customers implement the X12 standards, so they benefit more fully from EDI.

What UIG standards have been developed? b Enrollment and Maintenance b Meter Information b Meter Readings b Billing b Collected Remittances b Payment b Write-Off

UIG EDI EDI Moving to EDI UIG Members Involved Investigating EDI UIG Members Involved UIG Members Involved Map credit: Energy Information Administration Status of EDI utilization

What is the value of the UIG to the regulatory agencies? b Experience b Neutrality b A single point of contact b National presence b Buy-in from utilities, suppliers, and major customers

What does the UIG want from this committee? b Make the NARUC members aware of the existence of the UIG and its documents b Recommend the adoption of EDI as the data structure for business transactions b Recommend the adoption of the UIG conventions as the implementation standards b Involve the UIG in the solution of problems

Where can I get more info? b Utility Industry Group b CA Direct Access Implementation Workshops b MA Electronic Business Transactions Working Group

Where can I get more info? b ME Notice of Inquiry Regarding Electronic Business Transactions, Docket b NH EDI Work Group b PA Electronic Data Exchange Working Group

Where can I get more info? b PA PUC Order on Standards For Electronic Data Transfer And Exchange Between Electric Distribution Companies And Electric Generation Suppliers, Docket M F LAW/pm0618/l-54.ziphttp://puc.paonline.com/agenda_items/1998/ LAW/pm0618/l-54.zip

Thank You