Case Study: SIPmath Group helps gas utilities reduce risk with ANAGRAM from Lumina Decision Systems

SIPmath Group speeds gas risk analysis with Lumina Decision Systems for 50-year-old pipelines

The SIPmath Group, working on behalf of a large gas utility, faced the challenge of prioritizing billions of dollars in infrastructure mitigation projects to meet regulatory requirements for risk-spend efficiency (RSE). They partnered with Lumina Decision Systems to develop a decision-support tool, as using spreadsheets for such a complex, multi-dimensional problem was impractical and custom software would have been prohibitively expensive.

Lumina implemented a solution using its Analytica platform to create the ANAGRAM web application. This tool models risks across hundreds of thousands of pipeline segments, simulates the effectiveness and cost of various mitigation projects, and calculates their RSE. It utilizes a patent-pending Sparse Monte Carlo algorithm to dramatically speed up rare event simulations. The solution provides gas utility risk managers with an interactive, map-based dashboard to define, analyze, and compare projects, enabling them to optimally allocate ratepayer funds to achieve the greatest risk reduction.

SIPmath Group