1. Helping to Create a Culture of Conservation David J. Collie President and CEO An Update on Ontario’s Smart Metering Initiative

2. The Ontario Market

3. Ontario Supply Outlook Need to replace 25,000 MW of capacity over 20 years Desire to reduce coal Localized system constraints

4. Smart Metering and Conservation History in Ontario 2004 – the province directs the energy board to establish a plan for implementation of smart metering Local distribution companies are funded for 3 year program of conservation and demand management

5. Information Programs - Demand Response and Smart Metering - Large Consumers Launched for customers over 200 KW demand Provide market intelligence Alarms - Via email, fax or phone Customers can Adjust accordingly

6. Regional Centre of Excellence CDM – Smart Meters for Market Bidding

7. In-School Education Linked with Smart Meter Data

8. Provincial Target 800,000 smart meters by end of 2007 4.5 million (all accounts) by 2010 Condominium corporations – all by 2010

9. Implementation Staged Roll Out Selected utilities in first phase Over ½ million installed by end of summer* * estimated

10. Time of Use Pricing Numerous pilot projects being conducted Determining price sensitivity points

11. Meter Data Management/ Repository (MDM/R) Province-wide system on behalf of the government of Ontario Called the Smart Metering Entity – yet to be formally established Currently the MDM/R is being constructed Interface with 80 LDCs – 12+ systems Oversight committee Working groups ongoing

12. Public and Employee Communications – Toronto Hydro Used with permission

13. Regulation and Cost Recovery Smart Meters Dec. 2006 LDCs file implementation plans LDCs to receive an interim rate rider based upon plan Generic hearing in summer/fall of 2007 on costs MDM/R and AMI hearing by year end Time of Use rates – fall 2008 LDC rate rider

14. Occupant Benefits of Multi-Unit Residential Submetering Halton Condominium Corporation # 169 Case Study

15. Background Implemented late 2005 Smart meter pilot under CDM Space limitations required data collector technology Quadlogic chosen as vendor Monitor 83 units plus all major loads (common lighting, chiller, etc) Quadlogic Mini Closet-5 Data Collector

16. Customer Motivation Fair allocation of in-unit consumption costs (many residents are “snow birds”) Supports conservation efforts by occupants Will be mandated for all condominium units by 2010 through Bill 21 – Energy Conservation Leadership Act Space Limitations Require Data Collectors

17. Conservation Effect Data Weather Normalized & Adjusted for Lighting Retrofit Implementation Customer “Adjustment” Period20% Conservation Effect

18. Benefit as a Diagnostic Tool

19. Diagnostic Tool (Con’t) Why is Ramp Heater On? No Snow & 12°C After Repair, Normal Operation Resumes

20. Ontario-Wide Extrapolation Extrapolating these results to all of Ontario’s multi-unit residential buildings would result in these annual avoidances :  1,100,000 tonnes CO 2  1,650,000 mWh  4,900,000 Kg SO 2  1,000,000 Kg NO x

21. Helping to Create a Culture of Conservation David J. Collie President and CEO An Update on Ontario’s Smart Metering Initiative