Commercial & Industrial Customer Implications of Smart Metering Allan Boucher Capgemini Canada

C&I customer implications  Commodity price considerations  CIS / billing issues  Communication and coordination of C&I conversions  Customer focussed implementation  Critical success factors

Commodity price considerations Commodity Price Options SpotRPP - TOURetailer Hourly prices TOU & critical peak pricing Price certainty +/- depending on Load Profile vs. NSLS Deferred spot & variance recovery on exit (the wolf in the sheep’s clothing) Premium for price certainty Highest potential but hardest to achieve on a hourly basis Limited ability to reduce/shift from on-peak for many C&I accounts N/A unless retailer offers structured product Many C&I accounts are ineligible for Time of Use Regulated Price Plan. Their choices are “rock” or “hard place”. Commodity Cost TOU Savings Volatility

CIS billing issues for C&I accounts  Change to smart meter affects: – Commodity pricing (hourly vs. NSLS) – Bill timing (may change bill cycle) – Other tariffs (e.g., Provincial Benefit) –Retailer EBT and billing  There are winners and losers—the losers will want to come last in the conversions  #1 priority is to convert customers to smart meter without interrupting billing by LDC and/or retailer

Communication and coordination of C&I conversions  Commodity decision  Retailer impact  Direct mail, workshops, etc.  Site visit  Outage timing  Order equip.  Install telecom  Upgrade installation  Ensure Telecom OK  Outside CIS bill window  Change CIS tariffs  Success measured by first electricity bill NotifyPrepConvert lead time 6+ months lead time 2+ months lead time 1-2 weeks

Customer focussed implementation Tier 2 Later Conversions  Retailer enrolled (unless priority conversion requested)  Spot priced “unfavourable” load profile Tier 3 Deferred Conversions  Complex service upgrades  Conversions requiring extended power interruption Tier 1 Early Conversions  Customer requested conversion  Mandatory (>1000 kW existing, >500 kW new)  Easy technical conversions  RPP or spot priced “favourable” load profile

Critical success factors for C&I conversions  An informed customer, aware of the impacts of Smart Meters and their options for commodity rates  Tight coordination of meter and billing changes to ensure no interruption in billing  Prioritization of conversions sensitive to customer impact  Access to information, continued development of rates & incentives, and practical methods of reducing C&I consumption