1. NW Demand Response Symposium Open Standards + Interoperability September 28, 2016 Jason Salmi Klotz Climate Change Lead

2. 2  Smart grid networks yield their full potential benefits when based on open standards.  Enable interoperability, which in turn ensures that the broadest possible set of products work together.  Standard technologies deliver a wide range of benefits to customers, most important of which is vendor independence.  Customers benefit from greater choice because of heightened competition, as well as higher quality solutions, lower pricing, and reduced risk by avoiding vendor lock in.  Standards also open a market to new players and speed the pace of innovation.  Standards have been at the heart of every technical revolution. Industries ranging from transportation, telecommunications, industrial manufacturing – and especially the Internet – have established sets of common standards to benefit consumers and to catalyze the growth and health of their respective industries. Benefits of Open Standards

3. Challenges of the Smart Grid Why Standards Matter Geographic reach: Utilities manage vast networks. Topographical complexity (varied terrain): Networks must function properly across dense urban, suburban sparse/rural, and subterranean environments. Long lifecycle: Utilities expect equipment to last 20 years, or longer. Smart grid technologies and standards must support such longevity. Unpredictable environment: Smart grid networks offer utilities minimal administrative control over their operating environment. Support for a range of device types: Smart grid devices have limited processing power and memory 3

4. Machine-to-machine communications: Smart grid uses machine-to-machine communications and supports automated functions. Massive scale: A smart grid network must support millions of endpoints, in contrast to the thousands of devices on a typical enterprise network. Unparalleled uptime: Smart grids are held to a different and higher standard than enterprise networks. Replicating existing network models or repurposing standards may limit a vendor when delivering a smart grid network solution. Smart grid requires standardized technologies that have been proven to work in the utility environment. And utilities need partner who are commitment to open standards-based products. 4 Challenges of the Smart Grid Why Standards Matter

5. The Regulators Challenge What is the regulator’s place Regulatory Compact – the economic regulator. FERC (EISA ’07), US DOE vs State Role (PUC or Dept. of Energy) Concerns of the PUC (Cost) Do open standards save money? Where to engage and at what scale (bandwidth) How to help the regulator help you. Regular engagement Create regulator specific forums or invitations 5