March 24 th, 2004 © eMeter Corporation Larsh Johnson President, CTO eMeter Corporation Meter Information Management in the New Environment

2 Confidential –- DATE, 2003 Presentation Outline What’s different? New role of metering Metering Lifecycle: Then & Now Advanced Metering Infrastructure – increasingly complex relationships Meter Information – beyond usage data Systems and Applications Advanced metering systems architecture Example: California’s State-wide Pricing Pilot Summary

3 Confidential –- DATE, 2003 What’s different? A new environment for Metering Several trends are changing the face of utility Metering and Meter Information Electronic meters – Increasing use of solid state electric meters makes new measurement parameters including power quality information available Communicating meters – have become more affordable and can provide data every day, every hourly or every few minutes Demand response programs – depend on metering support for advanced tariffs and driving frequency of data requirements Customer rate options – Some states requiring utilities to provide small customers with rate options as an alternative or supplement to retail competition Web Services – Utilities are implementing more and more online services to ease call center loads and improve customer services – key services such as electronic billing have led to providing end customers with access to their meter data and billing analysis applications New customer services – such as demand billing alerts, outage notifications, budget billing, etc drive requirements for advanced metering Outsourcing – considerable interest in 3 rd parties providing meter reading, maintaining meters, billing services, web services changes the information flow Deregulation/restructuring – continues to highlight to customers the value of metering and online meter information and drives requirements for timeliness and quality

4 Confidential –- DATE, 2003 New role of metering Was: Registration of monthly energy usage for billing purposes Is or Will Be: Registration of usage for billing purposes Information resource for consumers Platform for outage and restoration event reporting Distribution asset management resource Foundation for demand response/rate choice programs Basis for new customer services Power quality & performance monitoring

5 Confidential –- DATE, 2003 Metering Lifecycle – Then and Now Blanket orders Commodity purchase Shop/Truck Inventory Meter Install Meter In Service Meter Test Retire Scrap Complex Contracts Detailed Product Procurement Site-specific Work Order Meter Install Meter In Service Requisition from inventory Product Configuration Network Activation Network Configuration Verify Provisioning Data Collection Trouble Report Meter Test Repair /Replace Communications Test Product Configuration Network De-Activation Retire Scrap Was: relatively simple commodity process Is: highly tailored and configured process

6 Confidential –- DATE, 2003 Advanced Metering Infrastructure – Managing complex relationships Network User Name Circuit Meter Network Module Carrier Contact Premise Service Point Account Service Provider Outage App Billing App Web App Dist. App Data Center Static and Dynamic relationships must be maintained for meter data to be useful

7 Confidential –- DATE, 2003 Info TypeWasIs MeasurementskWh, CT/PT and scaling, monthly cumulative readings TOU schedules, interval size, demand configuration, kwh, kvarh, kvah, voltage, current, PF, PQ CommunicationsManual read on monthly billing cycle network type, network ID, read frequency, data to read, coverage, time to read, communications costs & performance, carrier/service provider, trouble contacts, activation/deactivation status, Distribution networkN/a Circuit identifier, outage/restoration events, load aggregation group, line voltage, outage statistics CustomerAccount, Meter ID, Rate/Tariff, Contact name account, rate/tariff, contact name, user ID/password, phone, , contact history AssetsBulk tracking of inventory and in- service assets Serialized information with service history, configuration, ownership, communications type, etc, Meter ServicesMeter install, read and test Communications service, data collection, user presentation, outage reporting, billing, distribution management, Meter Information – beyond usage data

8 Confidential –- DATE, 2003 ApplicationCurrent Issues Meter Asset Management No history, communications module info, service tracking, or serialized device tracking CIS & BillingLimited contact and user info, monthly bill cycle only, little advanced tariff support Remote Meter Data Collection (e.g. MV90) Only interval data, no TOU/Demand readings, mostly billing cycle reads Electronic Meter Reading (Handhelds) Billing cycle reads only Outage ManagementNetwork status from customer calls, no links to meter data systems Field Work Management No support for advanced meter trouble/maintenance work, field installation Customer Energy Web Presentation Point applications for certain customer classes, not a scalable solution Load ResearchSample size limited, no ad hoc sampling, Load ManagementPoint applications for certain customer classes, not a scalable solution Distribution System Management Limited use of load data, planning based on historical data Generally no integration Typical Systems and Applications

9 Confidential –- DATE, 2003 Multiple Technologies, Systems, Suppliers and Outsourcing Not only are there significant new challenges in managing advanced meters with communications, but… In most cases a utility will require multiple communications technologies, use two or more different systems and procure these through several suppliers. For example: Selection of a specific solution depends on: Service type – e.g. singlephase, polyphase, CT, PT, gas, water, etc. Network coverage and communications availability Consumer service and tariff requirements In addition, many utilities are considering outsourcing all or part of these functions. These new dimensions and options add significant complexity to the meter lifecycle management processes No more one-size-fits-all with generic functionality…

10 Confidential –- DATE, 2003 Meter Information Systems Architecture – Must Haves Relationships maintained in AMI data model Multiple technology support Web-based access utility & 3 rd party Support for legacy systems integration Generalized access to usage database

11 Confidential –- DATE, 2003 Program Management: California Statewide Pricing Pilot (SPP) project Process Target customers – multiple customers on one of four rates, info only, TOU, Critical Peak Fixed, Critical Peak Variable Contact and begin enrollment – verify contact info, phone customers, get initial acceptance, send enrollment package, capture all contact history Install & activate meter – confirm network coverage, schedule installation, install and activate meter Provide Educational materials – mail materials to enrolled customers Verify notification info –verify phone number for automated outbound notification process Generate savings estimate – provide customers with estimated savings based on prior billing data Generate billing summary – provide each customer with unique bill summary showing usage in each rate period Conduct survey – follow-up surveys performed to gauge customer reaction to the rate Evaluate customer response – use metered load data determine customer response to pricing signals, use customer surveys to determine reactions Objective: Determine residential and small commercial customer responsiveness to price signals Requirements: Track and manage all processes and capture data for program analysis.

12 Confidential –- DATE, 2003 Supporting Information Platform Outsourced AMI Mgmt, Meter Data Collection and Notification Services Multiple Meter Data Collection Technologies – phone & wireless Interval data – to consumer web site, to billing, to research team Customer, meter, enrollment, contact, installation and status info Interfaces to CIS, Billing, Notification Systems Web access for utility, contractors, consumers

13 Confidential –- DATE, 2003 Pilot Project Process Management Process and status tracking History retained Cross-functional coordination Web access

14 Confidential –- DATE, 2003 Customer Information – Billing Summary Metered usage data collected daily Billing Cycle maintained Pre-processing of usage data generates billing determinants Bill computation, taxes, surcharges added Billing information provided to rendering engine to generate billing summary pages.PDF rendered and posted to web site for customer viewing Billing summary mailed to customer on billing cycle

15 Confidential –- DATE, 2003 Customer Information – Web site Web services View interval usage data View billing summaries View/update notification info Download education materials Links to related information Future – online survey forms

16 Confidential –- DATE, 2003 Project Results – 2003 CPUC Pilot Program Ordered March 13, 2003 Customer Enrollment completed in 2 months ~900 meters installed in under 3 months Systems confirm readiness for Go Live July 1, 2003 First Critical Peak Event called July 17 th, 2003 >94% notification success Satisfaction: 88% of participants would recommend program be offered to other customers 20% less 49% less 24% less

17 Confidential –- DATE, 2003 Summary Metering and Information services no longer “one size fits all” Customer interactivity with time-based tariffs drives new relationships Today’s systems are typically “silos” and not integrated Multiple technologies further complicate this Outsourcing adds another wrinkle – additional systems interfaces Carefully consider the new processes and systems involved in demand response, rate option, and metering programs Plan for this new environment – don’t assume traditional models Build flexible processes and systems – more change not less Consider managing an Advanced Metering Infrastructure a new challenge, not a tweak to existing processes and systems