Chelan PUD takes first formal step toward major business systems overhaul

WENATCHEE — Chelan County PUD commissioners have taken the first formal step toward what staff describes as a major transformation of the utility's business operations, approving a request for proposals for a partner to help plan the overhaul.

The commission unanimously approved issuing the RFP Sept. 8 for enterprise resource planning system implementer services. The action does not commit the PUD to implementing a new system but begins the process of determining the project's detailed scope, staffing requirements, schedule and cost.

Commissioner Steve McKenna asked that the resolution be voted on separately from three other procurement resolutions because of its significance.

“This is such a big deal,” McKenna said. “And I think having this on a separate vote just sends that message that this is transformational. It is a big deal.”

The PUD has been publicly examining its enterprise resource planning, or ERP, systems since a July 21 workshop, when staff described siloed workflows, manual workarounds and systems unable to adapt to modern ways of working.

Staff recommended moving toward an Oracle Cloud and Maximo application suite while minimizing customization. That would mean changing some existing PUD business processes to work with the new systems rather than extensively modifying the software to replicate current practices.

“Ultimately, this is a business transformation project,” David Lodge told commissioners.

Rather than moving directly into implementation, staff recommended first hiring an experienced system implementation partner to help plan the project.

Once a partner is selected, staff will return to the commission for authorization to award a contract. The PUD would then begin an enterprise design process to develop the scope, resources, schedule and cost information commissioners would need before deciding whether to proceed.

“So again, today's action is simply to advertise the RFP,” Lodge said. “It is not the decision to implement. That will come later when we have more information to make an informed decision.”

Commissioners nevertheless made clear they view the potential overhaul as a major infrastructure decision.

“I just put this on the same level as making the decision to build this building,” McKenna said, referring to the PUD's Service Center. “This is a big deal. And I commend you for taking this one on.”

Commissioner Carnan Bergren said he was particularly interested in how long implementation could ultimately take.

“So I hope you consider that and keep that in mind as we move forward with this, that time is money,” Bergren said. “I know it's a challenge.”

Commission President Kelly Allen said the project may be less visible than the utility's physical infrastructure but is no less significant.

“Many will not probably see the parallels to this infrastructure replacement as a substation or transmission lines, transformers, all those other things that the public gets to see,” Allen said. “But this is just as important. And some might argue even more so.”

Allen also asked staff to keep commissioners informed as difficulties arise.

“There should not be a panacea in this,” Allen said. “It's going to have its hiccups along the way.”

Lodge similarly warned that the transformation “will not be easy” and will require sustained leadership, difficult decisions and significant organizational capacity.

The Sept. 8 vote authorizes only the search for an implementation partner. Commissioners would have another decision before awarding that contract and a later decision on whether to approve the broader ERP implementation.

Andrew Simpson: 509-433-7626 or andrew@ward.media