Bluewater Power Distribution
Bluewater Powers Up with
Quick facts
Industry
Utilities
Revenue
CAD 100 million (US$97 million)
Employees ments processes
90
Location system
Sarnia, Ontario, Canada
Web Site • Ability to rapidly implement within stated
www.bluewaterpower.com
SAP® Solutions and Services
SAP® ERP application; SAP for Utilities
solutions, including the SAP Customer
Relationship Management and Billing for
Utilities and the SAP Customer Financial
Management packages and the SAP
Energy Data Management application
Bluewater Power Distribution
Corporation serves approximately
35,000 residential customers, large
industries, international companies,
financial institutions, and commercial
establishments in the province of
Ontario. Bluewater Power provides
the connection to the provincial
electricity grid, distributes electricity
locally through its distribution net-
work, and provides billing and
metering services for water and
electricity to consumers.
SAP Business Transformation Study
Utilities
SAP® Software
Key Challenges
• Redesign business structure and processes
to comply with new standards brought on
by energy market deregulation
• Provide unbundled bills and accommodate
and automate retail and wholesale settle-
• Retire highly customized, ineffective legacy
• Prepare for board-mandated growth
directive
Implementation Best Practices
• Use of utility-based templates and best
practices
• Dedicated internal cross-functional team
• Use of ASAP methodology
• Streamlined business processes via
automation
Financial and Strategic Benefits
• Greater ability to respond to new business
opportunities
• Increased confidence in regulatory compli-
ance and financial information
• More visibility and control of costs across
operations
• Improved statistical tracking
• Tighter controls to help ensure correct time
and materials allocated to work orders
Why SAP Was Selected
• Support for changing market regulatory
requirements via configuration rather than
customization
• Integrated platform with comprehensive
functionality
• Scalability to accommodate future industry-
related technological developments, such
as evolution of smart meters
• Speed and flexibility to support regulatory
compliance and new business opportunities
timeline
Low Total Cost of Ownership
• 6-month implementation (on time)
• No need for middleware (business connec-
tor provides gateway to run settlement
processes and market-related electronic
business transactions)
• Train-the-trainer approach; superuser
model to train new users
• Elimination of customized legacy system
Operational Benefits
Key Performance Indicator Impact
Effort for complex billing -50%
Effort for wholesale settlement -50%
Effort for inventory count -30%
Inventory write-offs -10% to -15%
Inventory -10% to -15%
“We experienced minimal disruption during the implementation. We were able to www.sap.com /contactsap
generate bills and continue offering quality service, without customers noticing
that we were in the midst of transforming our business.”
Janice McMichael-Dennis, President and CEO, Bluewater Power Distribution Corporation

Pulling the Plug on an Aging based templates and best practices as well decrease write-offs by up to 15%. The
Legacy System as the ASAP methodology, delivered by an company also reduced the time to count
experienced systems integrator. A cross- inventory by 30%.
Located in Ontario, Bluewater Power functional team dedicated to the project
Distribution Corporation provides elec- was housed in a separate work space to Seeing Clear Blue Water Ahead
tricity distribution and services to approx- ensure all business requirements were
imately 35,000 customers. At the turn of met by the deadline. Bluewater utilized the Bluewater remains committed to using
the millennium, the company faced exter- train-the-trainer approach and a superuser SAP software company-wide and to
nal and internal challenges. First, the model, ensuring a smooth transition from making continuous improvements that
energy market was preparing to deregu- the legacy system. align its configuration more closely with
late, ushering in a host of new mandates. best business practices. The company
Utilities had to provide unbundled bills, Flipping the Switch on Benefits will continue to leverage and build upon
exchange customer electronic business its flexible platform to satisfy its growth
transactions with energy retailers, and Within the stated timeline of six months, objectives, including mergers, expansion
accommodate retail and wholesale SAP delivered an integrated platform with of services, and vertical extension.
settlements. Second, the board issued all necessary utilities processes bundled Bluewater will further evaluate how to
a growth directive to Bluewater. Together, together. The greatest benefit Bluewater use its SAP applications to manage its
these factors meant that the newly priva- reports is its ability to respond quickly to deployment of smart meters. Finally, the
tized corporation had to replace its highly frequent, urgent regulatory changes in a company feels confident in its ability to
customized legacy system with an inte- cost-effective, prudent manner, without evolve with the ever-changing needs and
grated, state-of-the-art solution. disrupting business or cash flow. The over- standards of the deregulated energy
all result: a sharper competitive advantage. market.
Powering Up with SAP® Software The company benefited from improved sta-
tistical tracking, giving Bluewater visibility
After a thorough analysis of a number of into consumer and seasonal trends. These
software solutions, Bluewater chose the improvements allowed the company to fur-
SAP® ERP application and the SAP for ther enhance customer satisfaction and to
Utilities solution portfolio, including the plan and execute its growth strategy
SAP Energy Data Management applica- effectively.
tion and the SAP Customer Relationship
Management and Billing for Utilities and When Bluewater implemented SAP Energy
SAP Customer Financial Management Data Management, it improved the accura-
packages. These scalable software cy and granularity of its data by eliminating
solutions were not only able to meet the the use of a niche solution and Microsoft
company’s present needs, they could Excel. The company now spends about half
accommodate future conditions in the the time it used to completing wholesale
rapidly changing energy market as well. settlements and generating complex bills.
The applications provided automated
support for customer transactions and Further, Bluewater gained increased insight
settlement processes – without requiring across operations. This enabled it to
middleware. Bluewater leveraged utility- reduce inventory by up to 15% and

50 086 179 (10/08) Printed in USA.

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