Westar Energy Smart Grid June 23, 2009

What is a Smart Grid? Supports Energy Efficiency Modernization of Grid Demand Response Supports Renewable Generation Support Distributed Energy Resources

Energy Efficiency Large untapped resource - 50% load growth can be met with programs Time based rates Customer feedback via Home Area Network In home displays, Home Energy Management Billing Options such as pre-payment

Grid Modernization Existing New Goal Requirements Substation protection Feeder automation Distribution automation Volt-VAR optimization New Home area networking Distributed monitoring & control Distributed energy resources Goal Integrate existing grid monitoring & control to new distributed & customer focused resources Requirements New generation of distribution management systems Pervasive & secure communications Advanced analytics Dynamic control

Demand Response Key element is dynamic energy pricing Allows consumers to see and react to pricing before they use the energy Studies show consumers are interested if they can save 10% or more Demand response uses: Economic dispatch to reduce generation costs Socioeconomic dispatch where consumers respond for the benefit of society as whole Reliability dispatch to reduce/eliminate service interruptions Key Success Factor - Consumers will want something simple and accessible to interact with the grid. Set it and forget it.

Renewable Generation Major sources Issues Wind : 2008 US overtook Germany as world’s leading source (25 of 121 total GW) 1000 MW of Wind in Ks by end of year Solar: US expected to take world lead this year Issues Distributed nature of supply Intermittency of supply Forecasting supply (availability, adequacy) Potential for decreased reliability

Distributed Energy Resources Micro-generation Micro-turbines Fuel cells Energy storage Ice energy storage for AC Rechargeable batteries Plug in Electric Hybrids (PHEVs) Vehicle-to-grid = source for on-peak supply & energy storage Goal of all distributed energy resources is efficiency, demand distribution / peak shaving, environmental impact reduction & other ancillary services

Smart Grid Enablers Integrated Communications – Robust, integrated, two-way communications Sensing and Measurement – Enhanced synchronized distribution system measurement and monitoring Advanced Components – Power system devices that apply the latest in materials, energy storage, and electronics to determine the grid’s behavior Advanced Control Methods – Methods to monitor essential grid components and enable rapid diagnosis and timely, appropriate, response to any event Improved Interfaces and Decision Support – Seamless, real-time applications that enable grid operators to make decisions quickly Applications – Linking consumers to producers and all elements of the energy/resource value chain

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Westar Smart Grid Components Smart Meters Customer Engagement Meter Data Management Outage Management System Distribution Automation Talk about Westar objectives for a smart grid – give customers choice on energy usage, reduce costs, protect environment, enable energy efficiencies, accommodate renewable. Needs to be achieved incrementally, provide security and reliability, deliver value to customers and shareholders. 10 10

Smart Grid Benefits Customer Notification of outage and restoration Detailed energy usage information Manage energy usage Supportive of renewable and distributed generation Dynamic time based pricing Personalized customer services, products and programs Westar Operational efficiencies Supports comprehensive energy plans Manage peak load Talk about the study done by KU school of business students. Survey results, findings. **** Enables validation of time based pricing options Mention product examples: thermostats, home energy management systems 11 11

How does Smart Meter support Smart Grid? Distributed Measurement Nodes Time synchronous interval data measurement for entire grid Sense & Measure today, control tomorrow Outage & restoration notification Momentary outages, restoration efforts Voltage monitoring & control Loss detection – theft and line losses Power quality monitoring & control Load flow & monitoring 2 way common, secure communications system to support distribution automation monitoring & control Enables demand response solutions PCT’s, DLC, HAN, IHD with command acknowledgement & verification

Recovery Act Opportunity Smart grid investment program Awards from $500K to $200M Up to 50% DOE match DOE FOA rules pending ?? First filing deadline 45 to 60 days after FOA Two year program Strict reporting requirements Shovel ready projects required FOA – Funding Opportunity Announcement 13 13

Opportunities IT Development – From Basement to Dryer Federal and State Policies/Incentives Meet Changing Customer Expectations Managing Cultural Changes Products and Services Inter-operability and Security Organization Readiness Future Technologies