The Chairperson noted that the role of the GAB is to provide advice to the IMO in setting initial rules for the Gas Bulletin Board (GBB) and the Gas Opportunities Statement. The Chairperson noted that the IMO had a technical consultant looking at NBB functions at AEMO and it might be useful for the consultant to make a presentation to members. However, the IMO will consider whether it would be worthwhile for AEMO to make a presentation.
The Chairperson assured that the IMO was providing the most cost-effective way to implement the GBB. The Chair informed the GAB that the IMO would rely on the expertise of members to provide advice and recommendations on what should be included on the Emergency Management page. 2 2011 IMO to assess whether it would be worthwhile for AEMO or IMO's technical consultants to make a presentation to members at NBB.
3 2011 The IMO will conduct a gap analysis to analyze the GBB requirements compared to what the NBB can provide. Since the last meeting of the Gas Advisory Committee in December 2012, the IMO has undertaken the following activities regarding the GISP. The IMO Committee has finalized and approved the project plan for the GISP.
A "port" of the AEMO GBB system to IMO IT systems, to be operated by the IMO;.
BACKGROUND
GOVERNANCE, ROLES AND RESPONSIBILITIES
GISP R OLES AND R ESPONSIBILITIES
Responsibility for accepting and signing off on key deliverables, budget and output and any significant variations thereon. Key responsibilities include strategic relationship management, oversight of content and budget, and final sign-off of project results. Responsible for providing free and candid advice to the project sponsor on the management of the GISP, the business cases, costs and risks, and any issues related to the transition to business as usual.
Also provides a forum for providing advice and assistance to the Project Sponsor and Project Manager to help resolve issues arising from the project, particularly issues related to the project overall or more than one project work stream. The Project Manager is responsible to the Project Sponsor for the delivery of the GISP, its overall management, including the maintenance of this project plan, preparation of business cases and implementation plans, financial management and a smooth transition to "business as usual". Workstream leaders are responsible to the Project Manager for delivering work within their workstream, including, reporting on milestones, signing off on final outputs and embedding changes in their parts of the business.
The Work Stream Managers will be supported in their role by the Project Manager, IMO staff and consultants/advisors (where applicable).
G AS A DVISORY B OARD
R EPORTING
Office of Energy Through monthly progress reports against the Services Agreement for GBB and GSOO and at biweekly Implementation Steering Group meetings.
KEY MILESTONES AND TIMING
WORKSTREAMS
- GIS D ESIGN AND R ULES D EVELOPMENT
- GBB S YSTEM , T ESTING AND O PERATIONS
- GSOO D EVELOPMENT AND P UBLICATION
- G OVERNANCE AND A DMINISTRATION
This work stream is responsible for the development and publication of the first GSOO, including information gathering, information analysis, forecast development, GSOO design and publication. While it is envisaged that the GIS Rules will contain fairly high-level guidance regarding the information to be published in the GSOO, this workflow will need to work closely with the GIS Rules Design and Development workflow regarding the development of the GSOO methodology. This work stream is responsible for the administration of the GISP and for developing arrangements for the governance of the GIS, determining the costs of running the GBB and publishing the GSOO on an ongoing basis and for recovering these costs through the fees charged. for market participants.
These governance and cost recovery arrangements must be included in the initial GIS regulations.
BUDGET AND RESOURCES
F UNDING A RRANGEMENTS
The Office of Energy has provided $350,000 seed funding to IMO for the establishment of the GIS project via a service agreement during the period 1 October 2011 to 30 June 2012. This funding will enable IMO to establish the GIS project, assist the Office of Energy in the development of the regulations under the Gas Services Information Bill 2011, and examine IT options for the delivery of GBB. The IMO is seeking loan funding from the Western Australian Treasury Corporation (WATC) to fund the remaining $2.965 million for the project, with $482,000 required in 2011/12 and.
This funding request is being considered as part of the 2012/13 WA State Budget process and the IMO anticipates receiving advice on the approval of the agreements by April 2012. Without additional loan funding from the WATC, the IMO will not be able to complete the implementation of the GIS Project as there are no cash reserves or other borrowing facilities available to cover the costs and it is unable to cover the costs from the participants of the Wholesale Electricity Market (WEM). The IMO will only withdraw actual cash up to the above amounts required to finance the necessary work.
Decisions on such expenditure are subject to internal IMO approval procedures, including approval by the IMO Council when required. The actual amounts will be capitalized in subsequent years and recovered from the GIS market participants as fees. It is envisaged that these cost recovery arrangements will be enshrined in the proposed regulations and rules established under the Gas Services Information Bill 2011.
IMO R ESOURCING
GISP, and ongoing GIS operations, are likely to require additional staff in a number of IMO operational areas.
STAKEHOLDER COMMUNICATION PLAN
K EY M ESSAGES
GIS S TAKEHOLDERS
A GIS Stakeholder contact list will be developed as a sub-set of the IMO's Master Contact list. Stakeholders will be identified for inclusion on this list via a number of mechanisms including existing IMO WEM contacts, traders on the temporary GBB operated by the IMO in 2008, contacts known to the Office of Energy and general invitations to be included on the list. become, as e.g. on the IMO website and other IMO communications (eg Watts on). Communication with the IMO Board and Management Team will take place via the reporting arrangements set out in section 2 above.
In addition, IMO staff and managers will receive regular updates at weekly meetings and staff will be invited to industry briefings and consultation sessions during the project.
F ORMS OF C OMMUNICATION WITH E XTERNAL S TAKEHOLDERS
The full GISP will also consider any changes or additions that would need to be made to the existing IMO website and publications (eg graphics used) to integrate IMO's GIS functions with its existing WEM functions.
RISK MANAGEMENT PROCESS
- W HAT IS R ISK ?
- P ROJECT R ISKS
- W HAT IS R ISK M ANAGEMENT ?
- P URPOSE OF R ISK M ANAGEMENT
- GISP R ISK M ANAGEMENT P ROCESS
Risk management is a proactive process that seeks to identify and manage any impact or change to the original plan. It is an important aspect of any project because it analyzes the impact of any risk factor that may affect the successful completion of the project. Dealing with a risk proactively is cheaper and more efficient than dealing with project issues, or making changes to the project.
The GISP Risk Management Process covers the actions to be taken to analyze and manage all GISP risks. Identification – requires an assessment of the overall risk of the project, areas of general risk and specific risks that the project may face;. Probability and impact – a degree of importance is assigned to each risk, based on an assessment of the likelihood and consequences of occurrence;
Resources – identify and allocate resources to be responsible for the work required to avoid/manage individual risks; and. The level of each risk, as determined by its likelihood and impact, can be considered according to the following risk assessment matrix. Once the level of risk is identified according to the risk assessment matrix, each risk must be evaluated and a plan developed and implemented to control the risk.
Actions to control these risks must be approved by the Project Owner and implemented immediately. Actions to control these risks must be approved by the Project Sponsor and implemented immediately. The appropriate form or control will depend on the level of the risk together with the cost and feasibility of different risk control strategies, and must be assessed for each risk on a case-by-case basis.
Mitigation or "optimization" involves the manipulation of project variables and/or environmental characteristics to reduce or optimize risk. Recognizing that risks can be positive or negative, optimizing risks means finding a balance between negative risk and the benefits of the operation or activity; and between risk reduction and action. Containment involves deciding to live with the risk and to take the occurrence of the risk as a possible contingency to be considered in the planning process.
Risk retention is a viable strategy for small risks where the cost of insuring against the risk would exceed the total losses incurred over time. Risks relevant to the project will need to be assessed and assessed on a regular basis.
