1. A N EW T ECHNOLOGY FOR M AINTAINING P OWER G RIDS Paul Bielowicz, Maj Gen, USAF (Ret.) Vice President, Kell-Star Services, LLC Service Disabled Veteran Owned Small Business Dr. John F. Ayala, PE, PMP President, Falcona Management & Technology, LLC SBA Small Disadvantaged Business Texas Historically Underutilized Business San Antonio Small Minority Business Enterprise July 12, 2011

2. Smart Grid AspectsSmart Grid Aspects 1 Customer OutcomesCustomer Outcomes 2 Electric Power Grid ImprovementElectric Power Grid Improvement 3 Summary and Q&ASummary and Q&A 4 Todays Overview

3. Situational Awareness/Military Readiness The Opportunity The cost of energy is contained in the Operations and Maintenance (O&M) account. DoDs objective is to have the most reliable source of energy possible, especially to support critical operational capabilities. Looking for the most cost effective solutions to meet their objectives while operating within the constraints levied on the Department. New technologies capable of providing monitoring and fault detection prior to failure – providing a predictive tool set to enhance maintenance and support capabilities.

4. Smart Grid Aspects What are the key components? What are the costs drivers? What are the long term prospects? What actions can be taken to reduce costs while not compromising services? Power grid reliability impacts all aspects Power Grid Reliability Energy Source Energy Storage Central Station Generation Energy Facilities Renewable Energy Bulk Power Distribution

5. Operations and Maintenance Programmatic Support – 70/30 Rule Smart Grid is a modernization of the electricity delivery system so that it monitors, protects, and automatically optimizes the operation of its interconnected elements – from the central and distributed generator through the high-voltage transmission network and the distribution system, to industrial users and building automation systems, to energy storage installations, and to end-use consumers and their thermostats, electric vehicles, appliances, and other household devices.

6. Benefits of the Smart Grid 1)Provides Power Quality for the Digital Economy. The Smart Grid provides reliable power that is relatively interruption-free. 2)Optimizes Asset Utilization and Operational Efficiently. The Smart Grid optimizes assets and operates efficiently. 3)Anticipates and Responds to System Disturbances (Self-heal). The Smart Grid independently identifies and reacts to system disturbances and performs mitigation efforts to correct them. 4)Operates Resiliently against Attack and Natural Disaster. The Smart Grid resists attacks on both the physical infrastructure (substations, poles, transformers, etc.) and the cyber-structure (markets, systems, software, communications).

7. Benefits of the Smart Grid 5)Allows Direct Participation by Consumers. The smart grid consumer is informed, modifying the way they use and purchase electricity. They have choices, incentives, and disincentives. 6)Accommodates all Generation and Storage Options. The Smart Grid accommodates all generation and storage options. 7)Enables New Products, Services, and Markets. The Smart Grid enables a market system that provides cost-benefit tradeoffs to consumers by creating opportunities to bid for competing services. (Continued)

8. An Innovative Technology Distribution Fault Anticipation (DFA) System utilizing digital signal processing methods to extract feature vectors (electrical signatures), in conjunction with pattern-matching technologies to report specific anticipated and current failure modes. Continuously monitors distribution feeders using intelligent automated algorithms to detect, characterize, and predict failures or faults in electrical power. Enables advanced situational awareness and decision processes to improve reliability by detecting, alerting, and enabling repairs before equipment failures and outages occur. Works autonomously without the need for personnel to spend time analyzing waveforms.

9. Electric Power Reliability Methods Distribution Fault Anticipation (DFA) – Proposed Technology

10. Distribution Fault Anticipation Map Condition-Based Maintenance of Electric Power Measuring fault current at substation and putting it in feeder model reduces search area to sections shown in red. Recognizing recloser characteristics and putting them in model further reduces search to two circled areas (still based on substation measurements only). Distributed measurements further reduce search to single area. Map of feeder 48836. DFA detects failures and incipient failures in order to locate them for proactive corrective actions.

11. Alabama Power/Southern Company Oncor Electric Delivery TVA/Pickwick Electric Bryan Texas Utilities Arizona Public Service project starting CenterPoint Energy (Houston) project starting Others in negotiation Current Utility Demonstrations Distribution Fault Anticipation Technology Ready for Military Applications We can set up a meetings at your location or via Web-X with the inventors from Texas A&M University and Power Solutions, Inc. at your convenience.

12. B. Don Russell, PhD, PE Texas A&M University Electrical and Computing Engineering Department Regents Professor and Harry E. Bovray Jr., Endowed Chair Texas Engineering Experiment Station Director, Power Systems Automation Lab Power Solutions, Inc. – Director and President Carl L. Benner, PE. Texas A&M University Electrical and Computing Engineering Department Senior Research Engineer Texas Engineering Experiment Station Assistant Director, Power Systems Automation Lab Power Solutions, Inc. – Director The Inventors Distribution Fault Anticipation

13. Summary Power grid – Reliability is agnostic to the energy source – O&M Costs will be reduced using DFA Improved situational awareness using DFA – Focuses on predictive-preventative maintenance than corrective Lower occurrences in power outages Lower occurrences in catastrophic failures – Reduction in troubleshooting and analysis – Restores power to customers sooner Follow on meetings – Contact Kell-Star and Falcona to set up meetings with the inventors

14. Questions & Answers

15. Points of Contact LeadContact information John Ayalajayala@falcona.net 210-704-1489 Paul Bielowiczpbielowicz@kellstar.com 210-393-5291