AMI project for Israel Electricity Corporation Beeper-Larotech Ilan Friedland - CEO

Israel Electric Company - Background Information Yearly income - 6.3B $us Total no’ of consumers - 2.5M Production capacity - 12,500 MW Electricity supplied (sold) - 57,145,000 MWh Average Unavailability per consumer/year - 132 minutes (exceptionally low) * IEC 2011 statistical reports

USA - Largest Utilities IEC Rank Entity State Class of Ownership Number of Customers Sales (MWh) Revenue (1,000 $) Average Retail Price (c/kWh) 1 Pacific Gas & Electric CA Investor Owned 5,212,602 84,045,146 11,633,791 13.84 2 Southern California Edison 4,880,765 75,597,423 9,738,965 12.88 3 Florida Power & Light FL 4,515,032 105,003,376 9,835,774 9.37 4 Commonwealth Edison IL 3,743,215 43,609,598 4,957,578 11.37 5 Consolidated Edison NY 2,677,350 24,141,995 5,546,422 22.97 6 Georgia Power GA 2,359,765 87,160,371 7,508,794 8.61 7 Dominion Resources VA 2,304,117 76,895,671 6,454,222 8.39 8 Detroit Edison MI 2,117,878 42,490,936 4,164,536 9.80 9 Public Service Enterprise Group NJ 2,115,116 26,613,454 3,982,564 14.96 10 TXU Energy TX Power Marketer 2,080,686 52,921,258 6,094,807 11.52 IEC

IEC AMI - Project Background Israel Electric Corporation (IEC) decided to implement Smart Metering Why smart metering? Billing & Collection Customer service Improvement Demand Respond – peak shaving and production planning Deployment in few stages First stage : 8.5K Industrial customers (the largest AMI project in Israel) Next stages: extend to 30K – 50K C&I

Israel Electric Company – Larotech AMI Project Annual KWh Supply – Breakdown by Customer Type AMI Phase II 60% of Annual Income 3.8B$)) AMI Phase I

Israel Electric Company - AMI Project ROI for AMI Project 8,500 meters - 53% of total revenues Large customers billing - ~250K $US per month Project cost per year - 500 K $US 2 faulty meter reading per month = AMI project cost per year Customer service Improvement Demand Respond – peak shaving and production planning

AMI - Typical Architecture Objectives: Meter reading & management by either Web2MTM system users or third party servers Monitoring and control of the communication infrastructure Main Larotec’s system components: Interface & Communication Units (ICU) interfaced to the meters Communication Server – management of meter reading, communication and asset management The Web2MTM is integrated with additional system components: Metering server: Reads the meters via the ICU Radius Server: Responsible for the network IP assignment GIS Server: displaying end device (ICU + meter) location and status on maps

IEC AMI - Robust Architecture Comm. Server Radius Server Metering Larotec’s ICU Fixed IP Industrial Meters Private APN via GPRS Network reading success rate - 99.7%

Web2MTM – Consumption Reports

Web2MTM – Readings of Current value (1st phase)

Web2MTM – Readings of Power Factor value

Multiple operating modes Transparent mode: “Transparent Bridge” between 3rd party Metering Server and the system Listening mode: ICU waits for requests from the metering or communication servers while still performing its regular procedures Command mode: FOTA (firmware over the air) Data on Demand Configuration update

Additional features for IEC project Communication Management Monitoring: Cell ID: tracking the active cell serving the ICU Rx level: tracking level of GPRS Radio Frequency signal reception Commands: Get Data Now: enabling data acquisition at any required time Activation: remotely enable/disable meter reading services Communication parameters: Configure parameters on the fly from remote location Remote s/w update Templates: pre-defined profile assigned to any hierarchical group via the communication server

Project Status - 2012 6,850 installations Deployment – Nation Wide since 2010 Meter Reading success – 99.7% Data Collection Interval – 2 times per day Meter Reading Interval – 15 min

Why 2/3G for Smart Grid ?

Why 2/3G for Smart Grid - Cellular Data Cost

Why 2/3G for Smart Grid – Cellular Capacity

Why 2/3G for Smart Grid – Total Cost Of Ownership

Why 2/3G for Smart Grid - Technology Selection Consideration

Why 2/3G Cellular for Smart Grid - Summery

Why 2/3G for Smart Grid – Benchmark

Thank You!