1 AMI’s place in the future AMI is THE key enabler for the future smart grid The ‘intelligent grid’ is not intelligent without AMI Customers are not empowered without AMI The grid cannot be ‘optimized’ without AMI There is no true electric ‘market’ without AMI Electricity & gas can never be utilized in an efficient, environmentally responsible manner without AMI DR is not enabled efficiently for the mass residential market

2 Interoperability = Future Proofing Endpoints –Must last minimum 15 years (20-25 preferred) –Two-way –Downloadable firmware & Downloadable reconfiguration –Strategic & Intelligent deployment (network topology and operation considered for each endpoint choice) Communication network –Two-way with future interoperability capability –Constant R&D and evolution –Always backwards compatible (can’t obsolete endpoints) –Leveraged to limit number of networks within utility enterprise –Easily integrated into utility ‘backbone’ communications infrastructure Data Standards –Hardware/Comm always change – Data has to be there –Increased leverage of data for enterprise value must be delivered Integration –Enterprise considerations for full value proposition. Long-term view key to success in incremental advancement of enterprise integration.

3 EPRI ESFF AMI is the first step in this transformation

4 Meter Operations Reduction in labor force Workers Comp issues Fewer estimated bills Meter Reading Reduction in clerical staff Revenue Management Compressing Read-to-Bill time Database clean- up unbilled customers More accurate metering devices Customer Service & Billing More accurate meter reads Less estimated readings Faster off-cycle reads Baseline Benefits for walk-by/drive-by systems Enabling the Reality of Advanced Infrastructure Baseline AMR Benefits

5 Operational Improvements Outage Management Capabilities Leak Detection Theft Detection Decreased cost of tenant turnover and off-cycle reads Bill reconciliation (in deregulated market) Trouble call reduction Supply-Side Savings Load balancing and forecasting Distribution / Transmission Planning Asset management and utilization Transformer Load Management New Revenue Opportunities Notification / monitoring services ― Power outage / water and gas leakage ― Threshold alerts Online customer profiles Consolidated Billing Customer Service Improvements Billing dispute resolution Increased number of pricing plans Billing cycle flexibility Basic Benefits of Fixed Networks Enabling the Reality of Advanced Infrastructure Baseline AMI Benefits

6 Operational Improvements Distribution Automation Functionality SCADA Application Water Electric Capacitor Controls Control Automated Switches Advance Power Quality monitoring Supply-Side Savings Demand- Response programs Spinning Reserves Load control solutions Additional Asset management and utilization New Revenue Opportunities In-Home Displays Customer Service Improvements Physical Remote connect / disconnect In-Home Displays Smart Thermostats Pre-Payment Advanced Benefits of Fixed Networks Enabling the Reality of Advanced Infrastructure Advanced AMI Benefits

7 Closing the Gap Future Device Enablement For every 1,000,000 meters there are approximately: 200,000 distribution transformers. 5: substations dist feeders dist switches Thousands of reclosers Thousands of capacitor banks Thousands of switchgear Thousands of fault circuit indicators Tens of thousands of fuses Thousands of vaults Etc etc etc etc