486. This account shall include the cost of labour, materials used and expenses incurred in operation and maintenance of owned or leased Information Technology (IT) systems which is assignable to transmission operations and is not provided for elsewhere. Telecom sites exist at all AltaLink facilities, including 42 stand-alone telecom sites. The scope of this work includes: Geographical Information Systems, drawing support applications, operational network monitoring and management tools and services, outage reporting and management systems, data reliability applications, radio support services, mobile dispatch systems, telecom engineering standards and design, ensuring compliance to applicable government rules and regulations.
487. The Network Communications (NetCom) team has experienced an increase in workload due to
several key business initiatives. These programs, namely the MPLS deployment and migration, Alberta Reliability Standards (ARS) compliance, cyber security review and analysis, and ongoing operational support for asset growth, have driven forecasted increases in operational costs. For example:
• MPLS Project – deployment at over 200 sites so far, with an additional 200 more sites to deploy and commission;
• ARS Standards and compliance – development of new telecommunications standards; • cyber security assessments and mediation programs;
• asset management and monitoring development, Network Operations Centre(NOC);
• cooperation with the AESO to develop consolidated, longer-term capital plans and project identification documents;
• participation in AESO workgroups focusing on SCADA and Telecom engineering standards; • day-to-day troubleshooting and remediation of new trouble-tickets and events (excessive
tower twist, MPLS network optimization, microwave radio link performance review, network security assessments, etc.); and
• co-ordination, review and planning of third party use of NetCom infrastructure by industry partners including independent power producers, distribution partners and community demand for tower co-location space.
Table 5.2.11-1 - USA 575 - Operation & Maintenance IT Support ($M)
Expense 2010 Actual 2011 Actual 2012 Mgmt Update 2013 Forecast 2014 Forecast Labour 0.7 0.9 1.3 1.4 1.6 Contracted Manpower 0.1 0.6 0.0 0.0 0.0 Other (GOE) 0.7 1.5 1.6 1.7 1.8 Total 1.6 2.9 2.9 3.2 3.3
Totals may not add due to rounding.
488. Approximately 45% of USA 575 is attributable to labour expenses with an additional 2% attributed to contracted manpower, while over half of this account is made up of General Operating Expenses (GOE) directly related to vendor support costs, increased third-party data and communications charges, and staff and training related expenses for staff.
Table 5.2.11-2 - USA 575 – Operation & Maintenance IT Support Forecast Increase ($M) Forecast Increase 2013 Forecast 2014 Forecast Average Labour 0.1 0.1 0.1 Contracted Manpower 0.0 0.0 0.0 Other (GOE) 0.2 0.0 0.1 Total 0.3 0.2 0.2
Totals may not add due to rounding
489. AltaLink forecasts operating expenses to increase by $0.2M per year on average. Approximately $0.1M of this increase is attributable to labour expenses, and $0.1M is attributable to general operating expenses. Labour, contracted manpower and other general operating expenses are discussed in turn below.
Labour
490. USA 575 includes the following roles in support of O&M IT support including Telecom Engineers, Network Architects, Maintenance Analysts, Project Managers, Developers, IP Specialists and three Network Operators who run the Network Operations Centre.
491. Examples of typical activities:
• network communication system-level planning, technology review and integration, annual priority maintenance expenditures, and day-to-day operational support;
• hands-on engineering support of the programs and events that occur when operating a wide-area network;
• support the development and upkeep of engineering standards and integration of new technology and equipment into the utility telecom network;
• planning and support of third party use of the NetCom infrastructure such as tower co- locations and IPP interconnections;
• the IP Network Architect is responsible for the planning, implementing, and commissioning of transport and routing services related to the daily operation of the routed network services ensuring business and operational needs are met in a resilient, safe, secure manner compliant with industry standards;
• responsible for implementing network services and infrastructure including network switching hardware, wireless (WiFi networks), network security appliances, and network monitoring tools & software;
• the network maintenance analyst, planner, and scheduler, responsible with identifying needed maintenance, prioritizing it, and scheduling field crews day to day; and
• monitoring and providing telecom services on the network as needed and alerting
operations staff when network events occur. The real-time eyes on the network, focused on tracking network services and restoring them as soon as possible after an outage.
Table 5.2.11-3 - USA 575 - Operation & Maintenance IT Support Labour Forecast Increase ($M) Forecast Increase 2013 Forecast 2014 Forecast Average Inflation 0.1 0.1 0.1 Other 0.1 0.1 0.1 Total 0.1 0.1 0.1
Totals may not add due to rounding
492. The forecast $0.1M per year average increase to labour expense is a function of inflationary assumptions and FTEs. Less than $0.1M on average is attributable to AltaLink’s labour inflation assumptions, which are discussed in Section 1.8 Forecasting Methodology. The remainder of the forecast increase is less than approximately $0.1M of the total increase which is attributable to one forecast additional operating FTE in 2014.
493. AltaLink has reviewed the current forecasted workloads and work processes for the test period and confirmed current FTEs along with the following proposed changes to the existing staff compliment.
494. FTEs dedicated to this operating function are forecast to increase by one FTE in 2014 related to compliance with new security and reliability standards for transmission system communications. Forecast FTE additions are shown in the following Table 5.2.11-4.
Table 5.2.11-4 - USA 575 - Operation & Maintenance IT Support FTEs 2010 Actual 2011 Actual 2012 Mgmt Update 2013 Forecast 2014 Forecast
Total Year End FTEs 7.0 9.0 11.0 11.0 12.0
Table 5.2.11-5 - USA 575 - Operation & Maintenance IT Support FTE Additions
Position Title 2013
Forecast
2014 Forecast
Total
Senior Cyber Security Specialist 0.0 1.0 1.0
Total 0.0 1.0 1.0
495. The implementation of Alberta Reliability Standards, Critical Infrastructure Protection (CIP) is resulting in a number of new cyber related activities and accountabilities. According to the AESO published standards project work plan, May 2012, there are 10 CIPs that will be phased in starting Q3, 2012. These standards have resulted in the need for a new role. The Senior Cyber Security Specialist will define the cyber security program at AltaLink. This position leads the development and implementation of the cyber strategy including security policies and procedures. In addition, this position oversees and participates directly in security-related technology implementations and associated configurations, to align with AESO and NERC CIP requirements. Responsibilities include:
• designing and manage the development and implementation of global security policy, standards, guidelines and procedures to ensure ongoing maintenance of security; • manages and approves vendors to ensure appropriate resources and scope for cyber
projects. Engages outside consultants as appropriate for independent security audits or penetration tests;
• manages the development and implementation of AltaLink’s AESO and NERC CIP program, including representing AltaLink at any AESO or industry cyber meeting or work groups; • provides technical expertise in the investigation of security breaches and assist with
disciplinary and legal matters associated with such breaches as necessary;
• manages all implications of mandated and regulated security requirements such as the Alberta Reliability Standards, Canadian Sarbanes-Oxley (C-SOX), and privacy standards; and • leads and facilitates annual threat and vulnerability assessments.
Contracted Manpower
Table 5.2.11-6 - USA 575 - Operation & Maintenance IT Support Contract Manpower Forecast Increase ($M)
Forecast Increase 2013 Forecast 2014 Forecast Average
Inflation 0.0 0.0 0.0
Other 0.0 0.0 0.0
Total 0.0 0.0 0.0
496. The annual Contracted Manpower forecast for the test period is materially less than $0.1M and AltaLink is forecasting no increases in contracted manpower for USA.
Other (GOE)
Table 5.2.11-7 - USA 575 - Operation & Maintenance IT Support GOE Forecast Increase ($M)
Forecast Increase 2013 Forecast 2014 Forecast Average
Inflation 0.0 0.0 0.0
Other 0.1 0.0 0.1
Total 0.1 0.0 0.1
497. In 2013 and 2014 GOE is forecast to increase on average by $0.1M due to the following forecast activities:
• Vendor software maintenance and emergency support costs as part of AltaLink’s Multiprotocol Label Switching (MPLS).
• PC software, government radio fees for licences and increases in lease telecom circuits to provide improved reliability and bandwidth to AltaLink sites with leased fiber serving the Acheson and Lethbridge offices.
• As AltaLink’s network continues to grow and expand so does AltaLink’s need for bandwidth and high-reliability telecom to use the communication network. As such, AltaLink has begun a consolidation of IT and Operations data-centres at its backup location. To facilitate high capacity to the backup site, AltaLink has leased additional dark-fiber services to off-set the need for additional microwave radio construction at two locations (Janet 74S and ENMAX 65S).