HPC America Created the FERC Module for Utilities on SAP®
More than 20 years ago, Josef Heck, founder of HPC, was asked by the co-founder of SAP, Prof. Dr. h.c. Hasso Plattner, to help him solve a problem with cost of service reporting at Pacific Gas & Electric Company (PG&E), the first utility in the United States to implement SAP. Jerry Cavalieri, now CEO of HPC America, was the PG&E manager responsible for designing a solution. Mr. Heck and the team of HPC consultants worked together with Mr. Cavalieri to develop the very first Federal Energy Regulatory Commission (FERC) module for SAP. After two years of development, the FERC module was in production and working. To this day, PG&E and many other utilities use the SAP IS-U/FERC module for Cost of Service ratemaking, and reporting to state commissions, municipal boards, and FERC.
FERC on SAP S/4 HANA: Request our new FAQ about FERC on S/4 HANA to learn how SAP’s latest technology may impact your derivation- or transaction-based regulatory reporting model.
Video recording: Watch the SAP Controlling 2015 utility panel discussion with FirstEnergy, RPU, NTUA, and Sharyland Utilities.
HPC America has implemented, enhanced, or assisted with the FERC module at many utilities, including Pacific Gas & Electric, Southern California Edison, FirstEnergy, Sharyland Utilities, Oklahoma Gas & Electric, Rochester Public Utilities, We Energies, NTUA, AEPCO, Trans Bay Cable, and Pepco Holdings. Read about our customer success stories.
Learn more about optimizing the FERC module with HPC Utility Financials Advisor.
What Should You Do with Your FERC Module?
While there’s certainly no one-size-fits-all-answer, HPC typically recommends three different approaches to utilities running (or considering) the SAP Regulatory Reporting (IS-U/FERC) Module:
- Get rid of it and go “real-time” with your FERC data
- Improve responsiveness and accuracy to regulatory inquiries with CO module data and HPC UFA
- Expose every single dollar in your complex SAP cost flow with HPC CFF
- Get rid of it when you move to SAP S/4HANA and use line-item FERC accounting
The first step, of course, is to talk with us about your regulatory accounting processes.
HPC AG’s and SAP’s Shared History
HPC AG of Germany was started 30 years ago by Josef Heck. Previously, Mr. Heck was the 18th employee of SAP AG and was responsible for writing the initial code of the Financial Module (FI) and Asset Management (AM) in particular. SAP AG engaged HPC America to write the FERC module for general availability as part of SAP’s vertical market offering for utilities.
HPC America Today
HPC America is a utility industry expert with 25+ years of experience of consulting experience and software development for SAP Financials, Regulatory Reporting (FERC) and Work Management for utility companies. From assessments and design recommendations, to new implementations and optimization of existing systems, HPC’s SAP consulting services deliver greater accounting transparency, tighter integration of Finance and Operations, improved back office efficiency, and, ultimately, stronger rate case positions.
January 21, 2020: Utegration completes acquisition of HPC America.
Today’s compliance requirements mean far more stringent standards and transparency in accounting. We designed our solutions Utility Financials Accelerator (UFA) and HPC DECIPHER to provide even greater functionality for cost of service ratemaking and regulatory reporting than the SAP IS-U/FERC solution we originally invented.