NewEnergy Associates has completed a complex integration project for Allegheny Energy Inc. The primary goal of the project was to streamline daily practices associated with energy transacting and related accounting processes by reducing the number of “handoffs” between operational groups. As a result, data-entry requirements were reduced and data flow became synchronized across the organization.
To accomplish this goal, NewEnergy worked with Allegheny to replace several legacy applications, as well as various spreadsheet-based processes. NewEnergy’s solution is built on two software applications: MarketManager for ISO/RTO scheduling and settlement and Monaco for comprehensive trading and risk management. MarketManager works with Monaco to automate the scheduling and settlement of PJM transactions in Allegheny’s portfolio. The systems also provide the ability for multiple users to work simultaneously, equating to fewer process interruptions. Together, they allow for the seamless exchange of information between the trading floor, scheduling desk, risk, credit, accounting and billing departments.
Allegheny Chief Risk Officer Ray Bummer said, “It was important for us to work with a single vendor to eliminate implementation complications and obtain an integrated solution. NewEnergy was appealing because of the foundation of their integrated operations and trading risk management system. This common framework replaced more than a dozen special-purpose systems, allowing us to manage complex data from a single source.”
Other improvements include custom reporting and valuation engines, enhanced trading controls and integration with Allegheny’s corporate accounting software from SAP. As a whole, the implementation of Monaco and MarketManager supports deal validation/execution/confirmation, generation offers, load bids, counterparty activity management, credit risk management/measurement/reporting, profit and loss analysis and reporting, energy transaction accounting and other critical daily activities.