1. Presents: Smart Grid as a Process and a Life Cycle April 30, 2013 Robert Rowe Director of Smart Grid

2. CONFIDENTIAL Overview ■Service Territory ■LIPA’s Vision ■LIPA Experience  Technology Implementation Cycle  Distribution Automation  Reactive Power  AMI  Network Model ■DOE Projects Move Us Ahead  SGDP Overview

3. CONFIDENTIAL LIPA Service Territory (Nassau / Suffolk County) TOTAL CUSTOMERS = 1.2 million

4. CONFIDENTIAL Page 3 LIPA’s Vision for Grid Modernization The creation of an electric grid that has a robust and interoperable communications network supporting a secure control system, managing strategically deployed intelligent devices focus on: Enhancing Customer Service Improving System Reliability Optimizing cost Enabling the right information, at the right time to the right people. LIPA embarked on the path to modernizing the Grid before the term Smart Grid was developed. There is a firm belief that implementing technology and innovation in a manner that focuses on cost and flexibility leads to the best outcomes for the customer. Technologies required to modernize the grid are evolving. Many are unproven. Their interoperability with existing infrastructure and cost benefits have not been defined.

5. CONFIDENTIAL Identify Business Need Identify Technology Initial Deployment of Technology Limitations of Technology Intensive Effort To Invest & Upgrade Technology Continually Improve on the Technology Ongoing Process to keep Improving Continue the Brainstorming Process to Improve Make the Investment to Achieve Additional Benefits Technology Adoption Model

6. CONFIDENTIAL 48 V Josyln Vacuum Switch Communications using In-Band Radio channels to Control the Switch No Auto-sectionalizing No 3 Phase Mon of V Need better Comms 24V Joslyn Switch Added Ext Sensors Added RTU w/Asect Comm 900Mhz S&C Scadamate License Freq & Cellular Comm Built-in Sensors 2nd Generation S&C Switch Upgrade Head-End Concentrator Expand to AMI Comms Use of Fiber Comms Move to a Full DMS More Automated Switching New Technology comes at a premium & persistence that lead to solutions that meet the business need which is a perpetual process Distribution Automation Control of Switches On the distribution system Total Customer Interruptions Avoided 1994 ~ 60,000 Total Customer Interruptions Avoided 1994- 2011 ~ 5,100,000 90’s 2000’s Ongoing 80’s 70’s

7. CONFIDENTIAL Reactive Power Compensation Time Clocks Demonstration of DVAR Technology Distribution Capacitor Banks Fisher Pierce Radio Control One Way Communication Installation of DRSS Technology Home Grown 1 st Generation Pager Control Second Generation Pager Control Two way communication with Capacitor Controllers 90’s 2000’s Ongoing 80’s 70’s

8. CONFIDENTIAL Deployment of Itron Hand-helds for Residential Meter Reading and Billing AMR Residential and Commercial Meter Reading with MV90 using POTS Communication and Billing Implementation of Wireless Modem Communications to MV90 to Meters Reading of Cogeneration, Interties and Totalized Metering Accounts Pilot AMI Technologies Silver Spring Network and ACLARA, Lab Testing with Trialliant, Itron and Elster Lessons Learned Pilot L&G AMI Gridstream Network Deployment of New eMeter (MDM) Implemenation of Automated Customer Billing Expand to AMI Cellular Expand Billing to handle Totalized Meter Enhanced Customer Tools New Technology comes at a premium & persistence that lead to solutions that meet the business need which is a perpetual process Advanced Metering Infrastructure Need to Automatically Read Electric Meters 90’s 2000’s Ongoing 80’s 70’s

9. CONFIDENTIAL Data and Network Model Hand Drawn Paper and Microfiche Cad Based Drawings Computer Representations of the system in a Raster model GIS system Cyme/GIS based planning Tools Connectivity Based Model supporting OMS Impedence Based Connectivity Model to support DMS SCADA System Deployed Fiber Ring installed, SCADA expanded 90’s 2000’s Ongoing 80’s 70’s

10. CONFIDENTIAL DOE Projects Move Us Ahead The Department of Energy funded “Smart Grid Demonstration Project” provides the opportunity to evaluate, test and deploy multiple technologies in a monitored and controlled environment.  Advanced Metering Infrastructure Time of Use Rates Customer Direct Load Control  Distributed Generation  Visualization and Analytics  Distribution/Substation Automation  Communications (Radio, Cellular, Fiber)

11. CONFIDENTIAL Page 10 SGDP Interactions & Collaborations LIPA Distribution Automaton LIPA Energy Efficiency LIPA Smart Meter Initiative LIPAedge DLC Program LIPA Renewables Program SUNY Stony Brook AERTC SUNY Stony Brook CEWIT SUNY FSC Smart Campus SUNY FSC Renewables & Sustainable Ctr SMART ENERGY CORRIDOR L + G AMI Technology Cooper Industries/ Lindsey Cap. Controller/ Sensor efacec ACS DMS/OMS S&C DA ASU Telvent Substation RTU eMeter MDMS Navigant Consulting

12. CONFIDENTIAL Page 11 ASU Installations PMH Installations Cap 2-Way Controller Installations Substation RTU Upgrades Substation Digital Metering Substation Control House Solar Panels AMI Residential / Commercial & Industrial Installations Residential Direct Load Control Installations IHDs / Smart App Load Modeling and Forecasting Cyber Security Testing Visualization / Curriculum Development Solar Charging for EV Smart Home Resi / Comm Models Education, Training and Public Outreach SGDP Overview

13. CONFIDENTIAL Bringing it all Together System Automation and Intelligence Network Model Data Integration AMI and Customer facing Systems