1. Advanced Metering Implementation Team Update Christine Wright Public Utility Commission of Texas October 2008

2. Overview 1.Deployment Status 2.Report to the Legislature 3.Advanced Metering Implementation Team (AMIT) Update 2

3. 1. Deployment Status 3

4. AEP – Plans for a 5,000 pilot in 2008 – 50,000 in 2009 TNMP – Pilots in 2008 – Testing of technology and options in its diverse service territory 4

5. 1. Deployment Status CenterPoint Energy – AMIN, Docket No. 35620 127,000 meters REP funded Approved by Commission August 29, 2008 – AMS, Docket No. 35639 Full deployment, over 5 years Approximately 2.1 million meters Case ongoing 5

6. 1. Deployment Status Oncor Electric Delivery – Docket No. 35718 – Approved by Commission August 29, 2008 – Full deployment over 4 years, 3.4 Million Meters – $2.21 surcharge for residential customers – $10 million for low income customers – $15 million for customer education – Docket No. 36157 – Status reports 6

7. 2. PUCT Report to the Legislature Project No. 35770 - Recommendations: 1.“The Governor’s Competitiveness Council in its Texas State Energy Plan recommended that the Commission have the authority to order utilities to deploy advanced meters. The legislature should clarify that the Commission has the authority to order utilities to deploy advanced meters, as rapidly as possible, with the appropriate cost recovery provided under the Commission’s advanced metering rule.” 2. “The legislature should clarify whether the 2005 legislation relating to advanced meters, PURA §39.107, applies to utilities outside of ERCOT.” 7

8. 2. PUCT Report cont. 3.“State policy should also ensure that all retail customers have the option to have their billing determined on actual interval data captured from the advanced meters, so they receive the full benefits of changes in consumption behavior.” 4. “State policy should continue to recognize that the retail electric market will benefit from knowledgeable residential electric customers making informed purchasing decisions to meet their energy needs.” 8

9. 2. PUCT Report cont. Smart Grid – …“running today’s digital society through yesterday’s grid is like running the internet through an old telephone switchboard”. Reid Detchon, Energy Future Coalition Need for Infrastructure – The energy industry needs to prepare for a period of much higher capital expenditures. – CERA estimates that $900 billion of direct infrastructure investment will be required by electric utilities over the next 15 years. 9

10. 2. PUCT Report cont. 2007 Energy Independence and Security Act (EISA) Expands federal support for investments in smart grid technologies and addresses some of the regulatory and technological barriers to widespread installation. Title XIII is devoted entirely to the smart grid concept. Directs DOE to report to Congress on the deployment of smart grid technologies and any barriers for deployment, and conduct research on smart grid and assess the resulting energy savings and other aspects of implementation. 10

11. 2. PUCT Report cont. 2007 Energy Independence and Security Act (EISA) Directs the National Institute of Standards and Technology to establish protocols and standards to increase the flexibility of use for smart grid equipment and systems and directs DOE to create a program that reimburses 20% of qualifying smart grid investments. Directs states to encourage utilities to employ smart grid technology and allows utilities to recover smart grid investments through rates. 11

12. 3. Advanced Metering Implementation Team (AMIT) Security Access to data Web Portal Standardization of Functionality Home Area Network (HAN) Retail Transactions Settlement Customer Education 12

13. 3. Implementation Six Projects: Schedule: 1.Interim ProjectClosed 2.Web Portal ProjectNear Final 3.ERCOT Settlement Project Ongoing 4.Home Area Network (HAN) Ongoing 5.Retail Interface ProjectOngoing 6.Customer EducationClosed 13

14. Web Portal Project: Purpose: Establish standard AMS data transport, format, communication and acquisition mechanisms. Develop the requirements and prioritize the implementation of the functions of the web portal. Status: Requirements Developed. TDSPs are in the process of developing RFP to select a vendor to build the Joint-Portal. – Central Repository for purposes of Settlement – Security Audit as part of Oncor Settlement 3. Implementation 14

15. Home Area Network (HAN) Project: Purpose: To standardize the means of AMS communications with an in-home device consistent with the rule requirements. Status: Ongoing. Retail Interface Project: Purpose: Define and implement the retail market interface changes that may result from AMS. Status: Ongoing. 3. Implementation 15

16. Customer Education: Purpose: Provide consumer education about how and when customers consume energy, the cost of that energy, and what they can do to lower their bill. Status: closed. Education dealt with in each TDSP case. 3. Implementation 16

17. 25.130 (h) It is the objective of this rule that ERCOT shall be able to use 15-minute meter information from advanced metering systems for wholesale settlement, not later than January 31, 2010. 3. Settlement 17

18. 3. Implementation ERCOT Settlement: Purpose: Make available ESIID-specific, 15-minute or shorter interval data from the advanced meters to ERCOT, REP of Record, and Customers. Status: An interim-solution was developed and approved by the Commission and a PRR 766 was approved by the Board on August 19, 2008 Settlement is expected to take place by Summer 09 Up to 1 million ESI IDs Use ERCOT’s current system architecture MARS Task Force Long Term Solution – Study contracted by ERCOT Study completion expected Winter 2008 18

19. Study Purpose: 1.Recommend a long-term solution for ERCOT to change its systems to accommodate full settlement using 15 minute interval data from AMs, and report when the solution can be implemented. 2.Evaluate the use of a centralized data repository that would be used by ERCOT and the market for settlement calculations and other reports, and recommend and alternative if this is not the best solution. 3. Implementation 19

20. 3.Recommend an implementation approach for the long-term solution 4.Recommend the best way to sync the information from the TDSP systems, central repository of meter usage data, and ERCOT settlement processes in the long-term. 5.Identify the costs and benefits of outsourcing the building and hosting of the central repository, versus the TDSPs building and outsourcing the central repository of usage data, with a possible transition of hosting responsibility to ERCOT in the future 3. Implementation 20

21. Questions? 21

22. More Information Christine Wright Public Utility Commission, Competitive Markets Division christine.wright@puc.state.tx.us Ph: 512.936.7376 Advanced Metering Implementation Project http://www.puc.state.tx.us/electric/projects/34610/34610.cfm Advanced Metering Rulemaking Project Webpage www.puc.state.tx.us/rules/rulemake/31418/31418.cfm HB 2129 www.capitol.state.tx.us/BillLookup/Text.aspx?LegSess=79R&Bill=HB2129 22