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Price tag for troubled SAP project will skyrocket to nearly $1 billion, audit says

Chris Kanaracus | Oct. 7, 2014
The cost of finishing a massive SAP software overhaul at a New York gas utility will rise to nearly US$1 billion from an original estimate of $383.8 million, a newly released audit report has found.

In a letter released with the audit, National Grid said it didn't agree with all of its conclusions but "generally accepts" its recommendations.

The audit also includes a number of reasons National Grid gave for why the project stumbled, including an "overly ambitious design," lack of accountability, poor data quality from the legacy systems and ineffective training.

Company shareholders, and not ratepayers, will absorb the extra costs of fixing the system, according to the Public Service Commission.



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