1. Texas Paves the Way in Smart Metering Presented by: Christine Wright, Public Utility Commission of Texas Thomas Olinger, CenterPoint Energy Donny Helm, Oncor Electric Delivery Craig Tinder, Reliant Energy Larry Kohrmann, Oncor Electric Delivery

2. Contents 1.Introduction – Christine Wright 2.CenterPoint Energy - Tom Olinger 3.Oncor Electric Delivery – Donny Helm 4.Reliant Energy – Craig Tinder 5.HAN Lessons Learned – Larry Kohrmann 2

3. Introduction Over 6 million smart meters will be deployed by the end of 2013. As of August 2011, over 3.6 Million meters are installed: – Oncor – 62% complete – CenterPoint – 74% complete – AEP – 32% complete – TNMP – 5% complete Data Access: Customers with a smart meter can access their usage data and join an In Home Device (IHD) through Smart Meter Texas Services for Customers: REPs are offering products and services that utilize smart meter functionality, such as energy monitoring, time-of-use pricing, or pre-paid service. 3

4. Overview The Texas Legislature recognized the benefits that can accrue from smarts meters, expressly supporting the deployment of smart meters in Texas, and directed the PUCT to develop a non- bypassable surcharge to recover costs associated with the deployment of smart meters. HB 2129 (2005): “In recognition that advances in digital and communications equipment and technologies, including new metering and meter information technologies, have the potential to increase the reliability of the regional electrical network, encourage dynamic pricing and demand response, make better use of generation assets and transmission and generation assets, and provide more choices for consumers, the legislature encourages the adoption of these technologies by electric utilities in this state.” – “The commission shall establish a nonbypassable surcharge for an electric utility or transmission and distribution utility to use to recover reasonable and necessary costs incurred in deploying advanced metering and meter information networks to residential customers and nonresidential customers” 4

5. Further Smart Meter Support HB 3693 (2007): “[I]t is the intent of the legislature that net metering and advanced meter information networks be deployed as rapidly as possible to allow customers to better manage energy use and control costs, and to facilitate demand response initiatives.” 5

6. Texas Requirements Commission Rule, Subst. R. 25.130 – Set requirements for functionality, deployment plans, data access, open standards and included cyber security requirements Deployment Plans - deployment is voluntary Data Access - Customer owns the data Customer privacy - addressed in commission rules Cyber Security Requirements - – Annual security audit of utility system; – Commission ordered additional security audits of Smart Meter Texas Stakeholder working group necessary for implementation 6

7. Commission Rulemaking Smart Meter functionality set out in 25.130(g), includes: – automated or remote meter reading, – two-way communications, – remote disconnection and reconnection, – the capability to provide direct, real-time access to customer usage data, – means by which the REP can provide price signals to the customer, and – the capability to provide 15-minute or shorter interval data 7

8. Implementation Project 34610: Implementation Project opened following adoption of the rulemaking – The purpose of this project is to identify and implement changes needed in retail and wholesale markets as a result of advanced metering. Project has addressed 15-minute settlement, Access to data and development of Smart Meter Texas, Security, the Home Area Network (HAN), demand response, product support and customer education. Compliance Reporting: each utility following approval has to file a monthly report with the Commission. Additional rulemakings have addressed functionality provided by smart meters – Prepaid Rulemaking – Further refining of service order timelines in the TDU Tariff. 8

9. Tom Olinger CenterPoint Energy

10. Who Is CenterPoint Energy? Electric Transmission & Distribution Interstate Pipelines Field Services Natural Gas Distribution Competitive Natural Gas Sales & Services Who Is CenterPoint Energy? Natural gas sales and delivery Over three million residential, commercial and industrial customers in six states Competitive gas services Nearly 10,000 commercial, industrial and wholesale customers across the eastern U.S. Electric transmission and distribution 2.2 million customers in Houston area 16.3 GW peak demand Interstate natural gas pipelines Two pipelines in the mid-U.S., connecting to over 20 other pipelines Natural gas gathering and processing 150 separate systems in major producing fields in Arkansas, Louisiana, Oklahoma and Texas

11. 2009 – 2012 Smart Meter Deployment Visit www.CenterPointEnergy.com/energyinsight Advanced Metering System (AMS)  1.5 million smart meters deployed  Smart Meter Texas portal deployed  Upgrading firmware in 750,000 +/- meters AMS Benefits achieved  1.3 million meters being read for billing electronically  1.2 million service orders completed electronically – 96.6% success  Average electronic service order execution time is 30 minutes  1,500 HAN devices deployed and functioning

12. Consumer benefits of smart meters Available NOW - Remote meter reading - Faster move-in/out, switching - Pre-paid service - 15-minute usage data - Simple Text, Load Control and Current Price messages to HAN devices Available SOON - Automatic outage notification Available in the FUTURE - Energy analysis and cost comparison tools - Distributed generation and renewables - Plug-in hybrid electric vehicles - Consumer remote control of thermostats and appliances (HAN) - Energy management systems 70 percent of participants in CNP’s In-Home Display pilot program indicated that they have…”changed their electric consumption behavior…” as a result of the information available. 70 percent of participants in CNP’s In-Home Display pilot program indicated that they have…”changed their electric consumption behavior…” as a result of the information available.

13. In-Home Energy Monitor Pilot CNP recently conduced a pilot program among 500 participants:  100 employees and friends  300 customers  100 key stakeholders As part of the pilot program, participants were invited to provide feedback by completing online surveys via email. The aim of the online email surveys were to gain a better understanding of:  How easy or difficult the monitor was to use  The level of support and assistance customers required  Frequency of using the in-home energy monitor  Whether the monitor was impacting electricity usage  Level of satisfaction with the in-home energy monitor

14. Key Findings: In-home energy monitors were positively received, but employees were less satisfied than customers and key stakeholders Setting up the monitor was easy for most A third of customers received support in month one, few required ongoing support Employees required more support, mainly via email and in-office discussions Getting started Monitors maintained good connectivity to smart meters throughout the pilot Most found monitors easy to use Most viewed their monitor at least once a week Most have taken steps or plan to adjust energy consumption as result of monitor Usage Usage information displayed on the monitor closely matched customers' electric bill Two-thirds of customers agree their monitor helped them reduce their electric bill Electricity Bill Most are satisfied with their in-home energy monitor Majority will recommend monitor to their family, friends or colleagues Nearly all customers plan to continue using the monitor after the pilot has ended Overall high satisfaction with pilot, almost all customers are interested in future pilots Overall Evaluation

15. Per the DOE Grant Agreement,: “If you publish or otherwise make publicly available the results of the work conducted under the award, an acknowledgment of Federal Support and a disclaimer must appear in the publication of any material, whether copyrighted or not, based on or developed under this project, as follows:” Acknowledgment: “This material is based upon work supported by the Department of Energy under Award Number [DE-OE0000210]” Disclaimer: “This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Referenced herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinion of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.” Department of Energy Disclaimer

16. Donny Helm Oncor Electric Delivery

17. Texas AMI Solution - Customer 17

18. Texas AMI Solution – SMART METER TEXAS™ 18

19. Texas AMI Solution – Electric Utility 19

20. Texas AMI Solution – REP or Third-Party 20

21. Texas AMI Solution – ERCOT 21

22. Texas AMI Solution – End-to-End 22 Retail Electric Provider - or – Third-Party Consumer ERCOT Electric Utility SMART METER TEXAS™ (Host) Market Transactions ( Daily Meter Readings and 15- Minute VEE Data ) Daily Readings and 15- Minute Settlement Data Meter / HAN Services ( “Day After” Daily Meter Readings and 15-Minute Data) Optional Path for Retail Electric Provider or Third- Party HAN Services Historic Daily Meter Readings and 15-Minute VEE Meter Data, limited Meter / HAN Services Meter / HAN Services (“Day After” Daily Meter Readings and 15-Minute Data) Daily Meter Readings and 15-Minute Data / HAN Transactions Over Utility Infrastructure “Integration Challenge”

23. Craig Tinder Reliant Energy

24. More than 250K customers benefiting from at least one Smart Energy product or service Multiple, distinct Smart Energy products/ services. Products & services enabled by Smart Meter Texas portal. Created or retained over 60 jobs First electricity provider to host a booth at the Consumer Electronics Show (Jan-11, Las Vegas, NV) Competitive retail market drives innovation and customer focus Smart Energy is an evolution…Insights, Choices, & Controls/Convenience The Customer Defines a Job Well Done I thought you might appreciate feedback on your current services. I LOVE the weekly usage emails that I receive from Reliant. I am more aware of my electricity needs because of this, and that alone will make me a happy customer, for what I hope is years to come. Thank you for the excellent service! J. Tarvin - Houston, TX Customer Engagement - Accomplishments and Key Learnings 24

25. Engage consumers through information and convenience Provides platform for new services Choice Controls Display Portal/ email Alerts Peer Compare Mobile Devices Use/Spend Analysis Efficiency Tips Pricing Plans Payment Plans Partnership Offers Load Response / Economic Dispatch Insights Choices Thermostat Solar Switches/ Plugs Appliances EV and Fleet Vehicles Carbon Credits Smart Energy enables a new experience that transforms the way customers use and value electricity Enable new product choices to empower consumers Smart Energy Product Progression 25

26. At-a-glance overview of electricity usage each week Comparison to previous week Estimated bill for the month Energy savings tips In-depth view of historical usage via web Email/SMS Alerts –High usage –Bill target Peer comparison Remote access Snap-shot overview of electricity usage –Per Day –Per Week –Per Year “Mini-Portal” Concept (not Google PowerMeter) Links to Web Portals Weekly Summary EmailOnline Web Portal iGoogle Gadget 26

27. Save money by shifting usage Tiered pricing structures Off Peak, Standard, and Summer Peak pricing Receive Bill Due notifications SMS Text on Demand Usage Cost Time of UseSMS AlertsPrePayment Plans Enables enrollment without deposit No bills to pay SMS, email, web, and outbound dialer notification of balance, disconnect warnings, and payment confirmations Energy Management Solutions – Customer Choice 27

28. Home Energy Monitor Real-time view of current electricity usage –Communicates with advanced meter every 7 seconds Alerts/notifications Graphing ability Mobile App Mobile “Snap-Shot” overview of electricity usage –Per Day –Per Week –Per Year “Mini-Portal” Concept Links to Web Portal Allows customers to determine their meter status Simple to Use Enter your address and find out your status Smart Meter Check Energy Management Solutions – HAN and More 28

29. Pay-As-You-Go Plan Web Portal Home Energy Monitor (Open Peak) Appliance Pilot (Whirlpool) Additional Competitive Retailer Smart Energy Solutions Weekly Usage Email Web Portal Time Of Use Rate Plan Brighten TM Power Monitor (not smart grid enabled) Brighten TM iThermostat (not smart grid enabled) Many Others with Pay-As-You-Go Plans… First Choice Power, Ambit, Clearview, Nations Power, Payless, Pocket Power, Centric, Tara, Amigo, etc. This information is not intended to be comprehensive and may be dated or inaccurate based on competitor product/service changes. 29

30. Larry Kohrmann Oncor Electric Delivery

31. HAN Lessons Learned Lesson #1 - Interoperability doesn’t just happen – Texas was first production deployment of ZigBee SEP 1.0 HAN devices – Required almost 1 year of interoperability testing to solidify meter ZigBee firmware – Required development of a documented interoperability test program for verification of new HAN devices 31

32. HAN Lessons Learned Lesson #2 – Everything is more complicated than it looks on the surface – A utility smart meter system is a system of systems Data Repository Meter Data Management System Smart Meter Head End Application Wide Area Communication Network Field Area Communication Network Meters 32

33. HAN Lessons Learned Lesson #2 - continued – Texas deregulated model adds additional layers of complexity Smart Meter Texas Portal REP Application Interfaces Future 3 rd party access – All systems have to integrate and work flawlessly to enable full HAN functionality 33

34. HAN Lessons Learned 34 AMI HEAD END Repeater/Router Collector MDMS HAN RF Mesh Network Backhaul Network RF Mesh Network Meter Customer Account Data HAN Smart Appliances REPs Consumer Smart Meter Texas Portal Enterprise Service Bus (ESB ) DATA REPOSITORY Example: HAN Device Registration Wide Area Network (backhaul) Field Area Network External Interfaces Utility Network

35. HAN Lessons Learned Lesson #3 – Open a market and they will come – Number of verified HAN devices continues to increase – Additional vendors are interested in testing – Seeing initial signs of retail availability for HAN devices 35

36. Questions?

37. Contact & Information Christine Wright Public Utility Commission of Texas Christine.Wright@puc.state.tx.us Thomas Olinger CenterPoint Energy thomas.olinger@centerpointenergy.com Donny Helm Oncor Electric Delivery donny.helm@oncor.com Craig Tinder Reliant Energy ctinder@reliant.com Larry Kohrmann Oncor Electric Delivery Larry.Kohrmann@oncor.com Smart Meter Texas Portal www.smartmetertexas.com Smart Metering Rulemaking http://www.puc.state.tx.us/agency/rulesnlaws /subrules/electric/25.130/25.130ei.aspx Implementation Project http://www.puc.state.tx.us/industry/projects/electri c/34610/34610.aspx 37