Davies Consulting, Inc. has completed a major project to implement its Asset Investment Strategy (AIS) Model at Western Power in Perth, Australia. AIS uses a flexible, Web-based methodology to optimize capital and operations and maintenance budget portfolios. Western Power selected DCI because of its extensive asset management expertise as well as its successful implementation of AIS at 13 other utilities in the United States and Canada.
This project was initiated when Western Power was asked by its regulators to take risk mitigation of proposed capital and O&M projects into account in its funding decisions. Western Power’s short implementation timeline necessitated a global search for a solution that could be developed and implemented rapidly and effectively. DCI quickly implemented AIS on-site in two months, providing Western Power with the solution it required and meeting the mandated regulatory timeline for establishing a holistic risk assessment methodology. As a result, Western Power now has an integrated decision support process and tool that can maximize the risk mitigation of proposed projects as well as balance the risk assessment for each project.
Western Power identified the risks and established its relative importance. Proposed projects were then evaluated in terms of asset condition and life cycle, future costs, staffing, corporate initiatives, finance opportunity and changes in the level of risk. DCI integrated these risk elements, developed an evaluation method for mitigating the risk management factors, and created evaluation metrics for each project. Working with the utility, DCI established a complete evaluation framework and integrated this into the company’s decision making processes for risk analysis and funding decisions. DCI also supported Western Power in its discussions with regulators to ensure its understanding and acceptance of the new process and methodology.