1. Deployed AMI Value – Real World Examples Scott Durham Vice President, Strategic Accounts Elster Integrated Solutions

2. Elster: The global leader in metering solutions  170 years of experience providing solutions for Electric, Water, and Gas utilities  Over $1.8Billion in annual revenue  200 Million meters installed  The largest provider of metering systems in the world – Names you know  American Meter – Gas – Now Elster American Meter  ABB Electric Meters – Now Elster Electricity  AMCO Water Meters – Now Elster AMCO Water  A leader in 115 markets and 38 countries  $35Billion in assets  9,000 Worldwide employees  Energy Axis – Complete electric, gas, water AMI system - Over 1 Million Smart Meters Deployed  Raleigh, North Carolina, Headquarters of Elster Integrated Solutions and Center of Excellence for AMI/AMR Technologies

3. Functionality% responses Theft Detection52% Outage Monitoring32% Customer Energy Management26% Remote Disconnect23% Revenue Assurance23% Load Forecasting19% Time of Use (Residential)16% Time of Use (Commercial)16% Load Control13% Demand Response10% Asset Monitoring/Distribution Automation 6% Distribution Generation3% Leak Detection3% AMI top functional choices, market comments… Chartwell 2006 Industry Report  2007 Planning, development, test…  2008 $$$  2009+ $$$$

4. Energy Axis Network Showing Repeater Levels Active Collecto r All 227 REX meters registered using 7 hops (6 Repeater levels) Alternate Collectors All 227 REX meters registered using 5 hops (4 Repeater levels) Active Collecto r 4000 ft. 2000 ft.

5. Demonstrated Demand Response… Applications:  In-Home displays  Thermostat control  Load Control  Integrated Prepay Open and Interoperable with multiple 3 rd party vendors: Riga Thermostat Riga Appliance Control Module Riga 4C Energy Solutions 2.4 GHz EnergyAxis 900 Mhz Radio Blueline 433 MHz

6. Payback - EnergyAxis Remote Disconnect…  Fully integrated 200A disconnect switch  No visual equipment signifying disconnect capability…meets regulatory non-discrimination requirement  Available demand limiting threshold  Monitors load side voltage for safety and tampering  Alerts via MAS if there is load side voltage when switch is open  Integration with Prepayment metering  Designed for safety  Switch will not be closed if load side voltage is detected  Leading the market in integrated disconnect deployment

7. AMI Business Case  All values based on customer test deployment  Planned 175,000 Electric Meter Deployment, 40,000 with Disconnect Feature  IRR53.49%  Payback1.65 Years  Total Capital Investment $ 23,984,975  Average Yearly Savings/Cash Flow $ 14,560,322  7-Year Calculated Savings$101,922,253  AMI will reduce meter reading cost, charge offs, past due accts, theft, field service orders and increase responsiveness, cash flow and revenue while reading 99+% of meters every day.

8. AMI Business Case Savings Not Included in the Analysis  TOU and/or load profiling  Reduction in estimated billing  Reduction in retraining meter readers  Reductions from inflation & population growth  Reduction in injuries to meter readers  A new one…the benefit of redirecting meter readers to collection  The benefit of DR capability…  The benefit of outage management/analysis…

9. Customer Experience SRP – Phoenix, AZ  AMI in areas that have a high volume of service calls.  10k/mo., nearly 200k smart meters installed  90,000 remote disconnect meters  Over 150,000 remote service calls since system installed.  Completing over 1,000 remote disconnect/connects per week

10.  Reduce meter reading costs.  Identifying outages and leaks.  Monitoring conservation.  Improve customer service.  Hourly water usage profile, water usage billed at tiered rate.  Pole mounted repeaters for water only areas  F’burg is a GREAT town… Fredericksburg, TX – AMI rollout for electric and water Customer Experience

11. AVEC - AK  Alaska Village Electric Cooperative uses AMI to read meters in remote villages.  Villages are several hundreds of miles away and are not accessible in the winter.  It is impossible to manually read meters in the winter.  Meters are read remotely from office in Anchorage, Alaska.  AVEC is able to localize and react to power outages. Customer Experience

12. CFE  Fully integrated CIS generates disconnect/connect actions  Greatly enhanced safety for employees  Significant revenue assurance improvement, theft losses down  Many meters not accessible  Reading meters in mountainous area via satellite phone Customer Experience

13. High Rise Applications  Controlled Access  High Transient Rates  300 Electric Meters  300 Water Meters  300 Chilled Water Meters  Mesh communicates between floors  All read every day… Solaire Tower in Orlando Customer Experience

14.  Coalition of Large Distributors (CLD) went through a lengthy procurement process in 2006  Toronto Hydro, Hydro Ottawa, Enersource, Horizon Utilities, PowerStream, Veridian  Selected 5 Vendors of Record  Each utility then selected a supplier and negotiated a contract  Elster signed contracts with 5 of the CLD utilities  2 ASP’s have Energy Axis systems installed o ffering reading services  230k Energy Axis smart meters delivered in 2006  Delivery at a rate of 40-50k per month in 2007  Expect to deliver 500 – 800k in 2008 Elster in Ontario

15. Thank You…  Contact Information: Scott Durham VP, Strategic Accounts Elster Integrated Solutions scott.durham@us.elster.com 241-912-0671