To support informed financial decisions and consolidation of multiple financial tools, NewGen worked closely with CPS staff to develop an integrated financial planning and reporting tool. The tool is designed to perform real-time scenario analyses and is integrated with existing budgeting, generation planning, and rate models or reports. Interactive, visual dashboards and custom reports summarize and communicate scenario results, sensitivities and financial KPIs to facilitate senior management decisions.
NewGen conducted multiple planning workshops with CPS finance and accounting staff to identify model requirements including appropriate inputs, desired outputs, and overall structure. The model is capable of running multiple, real-time scenarios representing various business plans. The model was integrated with CPS Energy’s budgeting, cost of service, and generation planning models, as well as other financial and operating inputs. A key element of the model includes a customized data input module that allows CPS staff to automate the input of data using standardized forms and batch inputs.
Integrating visual dashboards and automated reporting allows the users to optimize debt, rate, and capital funding options while calculating key financial performance and reporting metrics. The model allows CPS Energy to perform two-year financial projections on a monthly basis while allowing for 25-year projections on an annual basis.
Key issues addressed during the project included:
- Automation of input data from other sources/systems
- Streamlined process for updating the financial model, significantly reducing CPS staff time required for financial reporting
- Embedding scenario analysis tools allowing instantaneous comparisons of multiple scenarios and the ability to recall and benchmark previously saved scenarios at any time
One of the key outcomes and benefits of the project, was the creation of a custom dashboard available on the CFO’s desktop, allowing for real-time scenario analysis and review of financial performance and Key Performance Indicators at any time. NewGen continues to support CPS Energy and the financial planning model providing updates to the model and increasing the capabilities of the model as requested by staff.