1. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Donivon Hettich Director Applications Engineering MSGS San Diego, CA June 5, 2012 Understanding Your Options Licensed & Unlicensed Spectrum Options

2. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Who is S&C? Established 1911 in Chicago, IL 2500 employee owners in 5 global facilities Specialists in power protection & automation Leading innovator of hardware and technology

3. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. S&C’s Communication Systems Your consultative integrator of communications solutions specific to electric utilities.

4. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Localized fundamental processing Centralized processing with remote access Distributed Intelligence articulating with central Ubiquitous many to many communications Evolution of Information Processing

5. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Difference of Potential The story goes like this: If Alexander Graham Bell were somehow transported to the 21st century, he would not begin to recognize the components of modern telephony – cell phones, texting, cell towers, PDAs, etc. – while Thomas Edison, one of the grid’s key early architects, would be totally familiar with the grid. Alexander Graham Bell Thomas Edison Source: US Department of Energy: The Smart Grid: An Introduction What would Marconi think?

6. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Ubiquitous Connectivity

7. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Network of Networks Use Cases NAN AMI-WAN DA-WAN RTUs IEDs Backbone Field Area LAN RTUs IEDs Large Substation NOC WAN What spectrum should be utilized? No single communication system does it all Differing use cases

8. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Option: Public Versus Private Networks UTC response to DOE request for information Decision could be a hybrid Network of Networks ̶ Public normally licensed ̶ Private licensed or unlicensed Control and Cost Coverage Availability Reliability Latency Security System Lifecycle

9. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Unlicensed or Licensed? Unlicensed spectrum: ̶ Ideal for: AMI, AMR, SCADA, Distribution Automation ̶ 902-928 MHz, 2.4 GHz, 5 GHz ̶ Easily and quickly deployed ̶ Spectrum is free Licensed spectrum: ̶ Provide extended level of reliability (less interference) ̶ Spectrum ownership cost

10. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Licensed Frequency Trends Cost of Ownership, Operability 4G Cellular 3G Cellular 3.65 and 4.9 GHz

11. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Licensed PSBN: Future Option 700MHz Public Safety Broadband Network (PSBN) ̶ Middle Class Tax Relief and Job Creation Act 2012 ̶ Nationwide 4G LTE network that allows Utilities as secondary users to First Responders AdvantagesChallenges 700 MHz Spectrum Access to Utilities Network Sharing with Public Safety (Prioritization) Network Operations Cost ReducedNetwork Standards Timeframe Potentially Good Backhaul ConcentratorNetwork Use Charge to Utilities Potentially Good for Workforce Mobility Applications Build-Out Time-frame Coverage Mitigation

12. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Current Option: Licensed Frequency 4.9 GHz In 2003, the FCC opened 50 MHz of the 4.9 GHz Public Safety Band to all U.S. state and local government entities, including municipal power companies ̶ Point-to-multipoint are primary users (general license) ̶ Permanent point-to-point are secondary users (separate site license), which must be used within 18 months of grant

13. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Current Option: Licensed Frequency 4.9 GHz Considerations: Apply at wireless.fcc.gov/uls, no charge, swift processing Can’t interfere with radio astronomy observatories 18 channels ranging from 1 MHz to aggregated 20 MHz

14. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Unlicensed Frequency Trends Cost of Ownership, Operability 5 GHz 2.4 GHz 900 MHz

15. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Frequency Diversity 4.9 GHz 5.4 GHz 5.8 GHz 2.4 GHz

16. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Interference Mitigation 4.9 GHz 5.4 GHz 5.8 GHz 2.4 GHz 5.2 or 5.3 GHz

17. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Aspects of Key Importance Flexible frequencies Post deployment Control and Cost Coverage Availability Reliability Latency Security System Lifecycle

18. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. Getting Started… Future Needs Assessment Legacy Networks Assessment Gap Analysis Roadmap Planning Project Implementation Deploy, support and maintain

19. www.sandc.com/comms ©2011 S&C Electric Company. All Rights Reserved. www.sandc.com/comms Donivon Hettich Director Applications Engineering S&C Electric Company donivon.hettich@sandc.com