While the electric utilities industry is largely deregulated, the transmission and distribution components of the industry are subject to heavy regulation from state bodies. As a result, electrical providers in this space must balance heavy regulatory obligations with the need to stay nimble and execute business initiatives quickly.
The overseeing governing state body determined that a smaller distribution provider was unable to provide sufficiently affordable rates to their customers and directed a larger transmission and distribution company to acquire them. The governing body gave the larger company a specific date to close the deal for the acquired company’s distribution assets, which created a very tight timeline for post-merger integration planning and execution.
Due to a strong existing relationship and proven delivery on previous projects, the acquiring company engaged Sendero to help with this significant acquisition.
It was immediately identified that there would be a challenge in adapting the acquired company’s legacy technology and processes to the more modernized infrastructure at the organization; for example, while the client used digitized smart meters, the acquired company still used manually read meters with legacy hardware and software technology. Additionally, the acquired company had minimal system and process documentation.
This gap in infrastructure required detailed and investigative discovery sessions with the acquired company to understand how systems and processes worked on their end. Following the discovery session, we worked to develop immediate, mid-term, and long-term architecture solutions to accommodate the tight timeline while also strategically planning for the long-term seamless incorporation of new customers to the ecosystem.
We worked to develop immediate, mid-term, and long-term architecture solutions to accommodate the tight timeline while also strategically planning for the long-term seamless incorporation of new customers to the ecosystem.
Sendero facilitated workshops between key players at both companies to ensure people, process, and technology aspects were assessed appropriately for the transition. Following these workshops, Sendero created a milestone-based approach to migrate customers, staff, processes, and existing technology from the acquired company and conducted cross-functional workshops to assess the process and technology impacts across the organization. Lastly, the team worked to bridge the gap to enable the migration of legacy technology by layering interim technology solutions that were eventually migrated to the client’s full technology stack over time.
The project was delivered on time and within the dictated parameters. Sendero successfully facilitated the acquisition and integration using a collaborative and milestone-based approach for the PMI project, bringing a new distribution business and territory to the company.