1. The Smart Grid Business Case: Creating a Secure & Reliable Energy Resource Steve Oldham Chair, USTelecom President & CEO, SureWest Communications

2. About USTelecom Premier Broadband Trade Association representing service providers and suppliers for the telecom industry Supports a wide range of services across wireless and wireline communications networks Diverse membership spans large national carriers to rural cooperatives

3. What is a Smart Grid?

4. The Goal Develop the ability to dispatch customer loads reliably enough to reduce critical peak loads and to provide system operators with another source of spinning reserve.

5. Crucial Elements to Smart Grid Success Reliable two way communication between electric provider and customer loads Secure and verifiable access to household energy consumption data by the customers Load dispatching capability equal to or superior to resource dispatching

6. Not Just a Distribution Problem GenerationTransmission Distribution

7. Key Challenges Customers will not accept a lower level of reliability to incorporate lower/no emission generation Renewable resources are intermittent by nature The Electric Vehicle…

8. Impacts of PHEV

9. An Engaged Customer?

10. Key Success Factors Customers must be able to willingly specify their level of participation – on an ongoing basis A successful program can’t come at the expense of reliability, comfort, or consumer lifestyle Ongoing customer support and device support can’t be ignored

11. How This Can Work 1.Leverage existing Networks 2.Enable the customer 3.Constantly monitor the devices 4.Aggregate customer profiles into dispatch- able load 5.Enable platform flexibility & scalability

12. Why Telco’s The network is already in place Our core competency is operating and upgrading communication networks to meet customer needs We take security seriously We already have a presence inside the home Ready to provide the ongoing customer support necessary to make this successful

13. Residential Demand Response Consumer Engagement Two-way Communication Security & Privacy Reliability Monitoring & Support

14. Closing Thoughts Smart grid is receiving plenty of attention today – but will take time Telecom is ready to enable cost effective two-way, IP-based demand response solutions Public policy must focus on encouraging investment while protecting rate payers