Moving to the Enterprise

1. Moving to the Enterprise February 2, 2013 Aaron Zurborg PG&E Senior Director, IT Energy Supply

2. About PG&E • 20,000+ Employees across Northern and Central California • Serves 15 million customers for Gas & Electric services across 70,000 square miles • 42,000+ distribution miles of Natural Gas lines • 6,000+ Transmission Miles of Natural Gas lines • 141,000+ Distribution Miles of Electric lines • 15,000+MW’s of available PG&E and 3rd party Generation Sources • Focus is on Safe, Reliable and Affordable Power Draft – For Discussion Purposes Only

3. Technology Standardization

4. Project Management Technology Disparate Systems Line of Business Solution Establishment Of Standards Enterprise Decisions • Focus on business solutions • Disparate systems across Enterprise • Commonality on project governance and process • Commonality on tools • All lines of businesses consistent in process and technology • Corporate focus & analysis is simplified • Lack of systems in business • Tribal Knowledge • -Inability to manage large scale projects Draft – For Discussion Purposes Only

5. Project Management Process Evaluation Approach - Sample

6. What Have We Done? • Line of Business Solutions • Nuclear • Implemented Primavera in the Nuclear organization in 2005 • Leverage for Outage Management • Power Generation • Implemented Primavera and Long Term Planning Tools • Leveraged for project planning and basic schedule management only • Gas • Implementation on-going of Primavera for large projects in concert with Integrity Management Analysis • Long-term analysis through project execution • Transmission & Distribution • Implement Primavera to replace disparate project tools • Implement Long Term Planning tools in concert with Primavera to deliver Integrity Management Analysis Draft – For Discussion Purposes Only

7. Challenges • Challenges • Each organization is implementing toolsets to fit their business needs • Even alignment achieved at the highest level for tools was not agreed to • Enterprise Project Management process / governance was unenforceable • Long term planning was disparate for the entire organization • Real financial impact in prepping for General Rate Case • Lack of standards has lead to large scale implementation costs for IT • No way to assess financial, resource or delivery risk for any organization • Organizations wanted to integrate with enterprise systems but were challenged to do so • Approach • Establish a Project Governance Steering Committee for the enterprise Draft – For Discussion Purposes Only

8. Roadmap Steering Committee Charter: Mission Statement & Key Objectives • Mission Statement: • EPC sponsored governing body established to champion Roadmap implementation efforts, ensure respective LOBs meet Roadmap commitments, and benefit from lessons learned/best practices from prior internal/external implementations. • Key Objectives: • Define enterprise standard PM toolset and configuration requirements (PM Toolset) • Supports the IT “Financial Control & Risk Management” initiative • Ensure Roadmap implementation procedures and supporting business processes are established • Review & approve exceptions to PM Toolset • Review & track implementation progress • Provide quarterly status updates to EPC • Resolve significant implementation issues/concerns • Ensure individual LOB Roadmaps reflect implementation of PM Toolset • Ensure adequate funding is secured for implementation of PM Toolset Draft – For Discussion Purposes Only

9. Roadmap Steering Committee Charter: Roles/Responsibilities General Responsibilities: Guide direction and strategy of PG&E’s Roadmap implementation efforts/activities Act as a liaison to respective LOBs PM organizations Steering Committee Responsibilities: Attend and actively participate in monthly meetings (~1 hr/mo.) Review and approve working committee deliverables that support of key objectives (slide 2) Communicate steering committee decisions to respective LOB leadership (directors & VPs) and PM organizations Working Committee Responsibilities: Attend and actively participate in bi-monthly meetings Perform groundwork and analysis for Steering Committee deliverables Committee Chair & Lead Responsibilities: Organize and facilitate meetings Report Roadmap implementation status to EPC on quarterly basis Review and organize working committee deliverables in advance of steering committee meeting Act as a liaison between Steering Committee and Business Technology Leads EPC Roadmap Committee Chairs / Leads Business Tech Leads Roadmap Steering Committee Roadmap Working Committee Draft – For Discussion Purposes Only

10. Recommendations and Benefits Draft – For Discussion Purposes Only

11. Roadmap Steering Committee Charter: 2012 - 2013 Deliverables Draft – For Discussion Purposes Only

12. Initial Discussion Points on Integration Spreadsheets (Risk Analysis, Resource Analysis, etc.) Other Project Tools (MS Project, PPMC, etc.) = Gas Draft – For Discussion Purposes Only

13. The Future (T&D Example) Planning Engineering Staging Construction Closeout 26 points of interconnection between systems and processes will reduce duplication of efforts and eliminate redundant sources of data

14. Preliminary/Draft PM Technology Roadmap Draft – For Discussion Purposes Only

15. Lessons Learned • Establish a Governance Organization early • Focus on the Quick Delivery • Minimize Customization for the Enterprise • Perform Gap Analysis for Processes Early • Gain Agreement on Technology Standards • Let Representatives Drive Decisions Draft – For Discussion Purposes Only