1. Smart Grid and the Game Changing Applications Phenomena Lisa A. Dalesandro ISG - Industry Solutions Group Strategic Principal Service Industries.

2. Agenda “The intelligent grid is an electric transmission and distribution network that uses information & communications technology (ICT) to predict and adjust to network changes autonomously. The intelligent grid more efficiently integrates operational and revenue generating business processes (e.g., generation and trading). At the same time, it allows utilities to connect with end users and the premise-based assets that allow for improved management of electric usage, distributed generation, and customer experience.” DC Energy Insight Analyst 2010 What is a Smart Grid?

3. Intelligent Grid Market Drivers Enable Energy Efficiency and Demand Response Programs Address Mandatory Grid Reliability Standards Enable Future Carbon Emissions Restrictions such as cap & trade Meet Smart Metering PUC Mandates Leverage U.S. Federal Government Economic Stimulus Package and ARRA Enable Integration of Renewable and Distributed Energy Resources Challenges of Game Changing Applications: Inexperience with Emerging Technologies Slow Consumer Adoption and Need for Societal Marketing Lack of Standards and Interoperability Between Vendor Solutions Complex Regulatory Requirements across Multi-state Service Territories Declining Utility Industry Revenue due to Economy Capital Market Access – EPA Credit Risk Areas of Change in Utilities Industry

4. In-Home Devices Multi-vendor Communication Architecture MDM Back- Office Customer Interaction Endpoint Devices Home Area Network Smart Meter Local Area Network (LAN) CollectorWide Area Network (WAN) AMI Head End Data collection & storing CRM / Billing / Asset Mgmt Internet / IVR / Call Center Devices in the home that can be remotely updated and controlled by the utility. Network connecti ng consume r products and endpoint devices Measures, collects, transmits and stores energy and event data. Configured remotely. Transmits data between meters and a collector. Collects, stores and transmits messages to and from multiple meter points. Transmits data between collector and AMI head end. Controls meters & comms network. Central repository for meter & event data collected from all AMI Head Ends. Dispatches AMI Head Ends. System of record for customer &comme rcial data and the related processe s that leverage AMI. Most processes are directly or indirectly initiated by the customer and are the consequence of or result in customer services and have an impact on the customers bill. Meter-to-Back Office Smart Grid Value Chain

5. Thank You Lisa A. Dalesandro ISG - Industry Solutions Group Strategic Principal Service Industries SAP America, Inc. 3999 West Chester Pike Newtown Square, PA 19073 T 610 661-1489 M 610 662-5075 F 610 661-1490 lisa.dalesandro@sap.com About SAP SAP is the world's leading provider of business software, offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With more than 92,000 customers in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol "SAP." For more information, visit www.sap.com.www.sap.com