1. CURRENT ® Smart Grid Overview July 2007

2. 2 SMART GRID = ENHANCED FUNCTIONALITY Smart Grid delivers more than advanced metering infrastructures: -safe and reliable, self-healing “future-proof” grid -two-way, real-time diagnostic command-and-control system deployed throughout electric distribution network -distribution automation: real-time management of capacitor banks, switch controllers, etc. -up to 1-minute meter-reads; real-time pricing -voltage and current monitoring at transformer -energy theft detection and other services -remote fault location and power quality management -detection of incipient equipment failures (transformers & conductors) -“head end” system can control millions of DSM devices at virtually any power outlet with built-in measurement & verification -real-time outage avoidance, detection and restoration -distributed and renewable energy resources measurement and coordination -provides utility-planner information to optimize capital investment in distribution system -substation monitoring and connectivity

3. 3 SMART GRID IS COST EFFECTIVE  Smart grid > AMI, cost spread over more applications  Small to medium utility can save tens to hundreds of millions of dollars, and large utility hundreds of milions to more than 1 billion dollars, over 15 year period  Forms of savings include line loss prevention, theft & tampering prevention, network efficiencies, and other O&M costs  Savings from outage & power disturbance management (approx. $80B-$100B/year losses in U.S.)*  Supports grid and end-user efficiency (distribution network losses can exceed 10%)  High-speed, 2-way path between utility and end users maximizes DR savings, enables true real-time pricing  Future-proof grid avoids costs of replacing soon obsolete narrowband system  Third party model can even put capital risk on smart grid network operator * Outage figure source: EPRI & Lawrence Berkeley National Labs

4. CURRENT® Smart Grid installation Aerial Underground 4

5. “Future-Proof” Advanced Metering  Monitored by network management system, CURRENT Look ®  “Under the Glass” Smart Grid communications technology  Comprehensive functionality  1 minute increment reads  On-demand reads  Remote software upgrade capability  Proactive alarming for “Unusual” events  Demand-response tools  Real-time or peak pricing  Time-of-use pricing  Greatly reduced service costs  Real-time meter data information can avoid truck rolls  Real-time power outage and restoration detection 5

6. Customer Energy Management Direct Load Control Demand Response  Smart Grid-enabled direct load control – Multiple vendors  Two-way communications  Real-time verification of load reduction through AMR  Synchronization of DLC devices with distribution network management system to allow for surgical DLC application to optimize distribution network operation 6

7. 7 Distribution Management Outage and Restoration Detection Present Utility Practice  Utilities learn of power outages when customers call  The Outage Management System (OMS) analyzes customer calls to determine location of outage and restoration  Utilities have to call or visit customers to verify that power has been restored CURRENT Utility Practice  CURRENT Collector™ notifies the utility’s OMS of power loss at a transformer similar to a customer call  CURRENT Collector notifies the utility’s OMS of power restoration at a transformer and meter similar to a utility call  The OMS analyzes CURRENT notifications to determine location of outage and restoration

8. 8 Distribution Management Voltage and Current Monitoring  Analyze power flows across feeders to improve efficiency  Compare to meter data to detect theft  Allow for user-defined data collection and analysis  Proactive alarming and reporting High Voltage Report Low Voltage Report Voltage Imbalance Voltage Planning Report

9. 9 Distribution Management Transformer Overload  Timely, accurate data specific to the transformer  Determine the sources of the overload  Proactive transformer replacement  Proactive alarming and reporting Acute Transformer Overload Notification Duration Transformer Overload Notification Transformer Equivalent Load  Automated Transformer Size Recommendation to improve efficiency

10. 10 Distribution Management Equipment Deterioration  Transformer – Detect transformers with shorted high side windings before faulting  Proactively replace a transformer before it faults  Open Neutral - Detect an open or loose neutral conductor prior to customer complaint or damage  Proactive alarming and reporting  Transformer Incipient Failure Notification  Secondary Neutral Failure Notification