Dynamic Pricing Case Studies

Digi International

Agenda Two case studies (Gulf, Tampa) The « choice » of the customers The scaling issue 3

Programs 4 Energy Select Program: Initiated in 2000 Largest CPP program in US Energy Select = TOU-CPP Automated Program Energy Planner Program: Legacy Direct Load Control: closed in 2005 Residential Variable Pricing approved Pilots in 2004, Permanent Offer since 2005 Program Goal: Offer a Residential advanced Energy management system that delivers Increased value to customers while providing Peak reduction benefits to utility system. Key components: - Variable price rate - Ability to pre-program devices to automatically respond to variable prices - “Set it and forget it” Program Goal: Develop a DR consumer offer fitting with Tampa smart grid implementation Strategy (act before AMI); Key components: - Utilization of smart meters on a smaller scale prior to large scale implementation (scalability) - Strong Customer interest on Variable Pricing - DR Network as source for data to compare with MDM data for verification of accurancy prior to AMI roll-out

Average results 5 Pilot : customers were selected along with corresponding control group: - Half new customers never used DLC - Half existing DLC customer switched Energy Planner program updgrade Fall 2011 New technology using broadband Communication Facilitate achievement of enrollment utility goals Price Responsive Load Management Demand reductions: Kw (winter) Kw (summer) Modest energy reductions: 1,154 kWh Energy consumers with enough level of consumption seems required, innovative and drop-in technology facilitate adoption

Residential Variable Pricing Rate 6 prices in the tiers reflect cost of producing and delivering electricity (“Tampa”)

Customer Selection & Segmentation ? 7 Voluntary programs, promotion of Control, Savings & Free installations Most effective way to reach customers is direct MAIL (Gulf) Bottom line: Customers are saving 8% to 15% on electricity bill. Bottom line: Customers are saving 8% to 15% on electricity bill.

Who’s the subscribers? household 230 m² (average) 2000(winter)-3000(summer) kWh/Month energy bill $ / month Live in specific areas (weather, hvac penetration, etc) 8

Surveys results 9

The 1m$ Questions Is it possible to « activate » the same pattern in EU and have high-end energy consumers in Residential & small commercial business engaged in a DR program with TOU-CPP? (regulatory & market issues?) Is it then possible to go from « small » to « big » without waiting full AMI roll-out? (scaling issue)

Automated Dynamic Pricing Solution leveraging cloud technology to accelerate consumer adoption 11

Cloud Device Management Growing Global Cloud Device Management Platform – 2 million devices * – 2,200 transactions * per second and growing Data Access – Protocol Translation – Direct or Cached – Data Streams Storage Console for … – Configuration and Firmware – Grouping – Alarming – Commissioning 12 *Tested and verified ISO controlled system Continuous security monitoring

Core Competencies More than 200 engineers on 3 continents

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