1. Smart Metering in ERCOT: Implementation Update CCET Board of Directors Meeting August 3, 2011 Presented by Christine Wright, Competitive Markets Division Public Utility Commission of Texas

2. Overview  Over 6 million smart meters will be deployed by the end of 2013.  As of August 2011, over 3.6 Million meters are installed:  Uncork – 62% complete  Center Point – 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. 2

3. Timeline 3

4. Rulemaking  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 4

5. Putting the Pieces Together 5 MetersMeters Smart Meter Texas Utility Infrastructure & Back Office In Home Devices (IHDs) ERCOT Implementation ESI ID Look-Up 15-Minute Settlement TX SET 4.0 Revisions to work with Nodal Demand Response Load participation in SCED Stakeholder Requirements Developed Plans to turn over to ERCOT Rulemaking Requirements HAN, DR, Prepaid Tool Upgrades Retail Product Support Progress Reports Filed Monthly Upgrades a regular occurrence Outage Management System Switching Processing Service Orders Meter Reading Alarms (tampering) 15-minute data VEE REPs, TDUs, Vendor Testing Interoperability Events Trial and Error

6. Comparison of Deployments *Center Point requested to accelerate its deployment in its AMS Reconciliation as part of its rate case in Docket No. 38339, Application of Center Point Energy Houston Electric, LLC for Authority to Change Rates. ** AEP TCC residential surcharge is $3.15 during the first two years, $2.89 during the next two years, and $2.26 for the remainder of the surcharge period. *** AEP TNC Residential surcharge is $3.15 for the first two years, $2.27 during the next two years, and $2.35 for the remainder of the surcharge period. 6

7. Low Income Customers  The commission has approved the expenditure by utilities to provide in home devices to eligible low- income customers for free  Recent study by DOE reported that 7 out of 10 people expressed “high interest” in a unit that keeps them apprised of their energy use as well as dynamic pricing.  Low Income customers in Texas are defined by Commission rules:  An electric customer, whose household income is not more than 125% of the federal poverty guidelines, or who receives food stamps from the Texas Department of Human Services (TDHS) or medical assistance from a state agency administering a part of the medical assistance program 7

8. Commission Approved Expenditures  Approval for TDUs:  Center Point Energy – up to $7.5 million  AEP-Texas – $1 Million  Uncork Electric Delivery - $10 Million  TNMP - will be added in at a future date  Expenditures include:  The in-home device, distribution and education related to operation and installation 8

9.  Smart Meter Data provided in a 15-minute, day after basis  300 Million data points per day (3 million customers / 15-minute data in June 2011)  Service for Customers, REPs, 3 rd Parties  Standard tool for all Utilities in ERCOT – different vendors, 1 format for data files  Joining of In Home Devices for Customers, REPs, and 3 rd Parties 9

10. SMART METER TEXAS™ 10 Current Statistics 3,587,458 ESI IDs 18,634 Residential Customers 271 Non-Residential Customers 2,547 Home-Area- Network (HAN) Devices 57+ REP Entities ~2.5 TB per Month 7 Years of Historical Information Access & Controls Meter Interval Usage HAN SEP 1.0 Messages Meter Attributes Customer Premise Info Meter Provisioning Energy Management Demand Response Settlement Pricing Text Messaging Presentment

11. Retail Products & Services  In Home Devices are being installed in customers homes today:  Champion Energy  Direct Energy  TXU Energy  Reliant Energy  500 IHD rollout – CNP  500 IHD rollout – Uncork  Usage Insights services  Time of Use Rate Plans  Electric Vehicles 11 Retail Services provided remotely (avoid truck roll) – Switching from REP to REP – Disconnection, and Reconnection of Service 3 rd Parties – Customers in Texas can authorize a 3 rd Party to have their 15-minute data – Plan to finalize business rules in 2011

12. REP Products Snapshot  Green Mountain Time of Use Pilot  Direct Energy:  Pay As You Go, Web Portal, Home Energy Monitor, Appliance Pilot (Whirlpool)  TXU Energy:  Weekly Usage Email, Web Portal, Time of Use Rate Plan, In Home Display and Thermostats  Reliant Energy:  Weekly Summary Email, Web Portal, I Google Gadget, Time of Use Rate Plan, SMS Alerts, In Home Monitors, Mobile App  Prepaid Services – smart meter enabled  More than 11 REPs offering services using smart meters 12

13. Contact: Christine Wright Public Utility Commission of Texas 512.936.7376 Christine.Wright@puc.state.tx.us 13