1. © 2001 San Diego Gas and Electric. All copyright and trademark rights reserved. Real Time Energy Metering (RTEM) A Step Into The Future Robert Brice San Diego Gas & Electric Company Metering Americas 2004

2. 2 Challenging Questions What internal and external systems (hardware and software) will be required to facilitate widespread dynamic electric rates? What will our customers want and need to help them adapt and respond to dynamic electric rates? What impact will this very fundamental change have on utility operations, infrastructure and budgets?

3. Metering Americas 20043 Search for Answers Researched the AMR Industry Extensive RFI / RFP Process System Demonstration and Evaluations Proposal Evaluation and Analysis Supplier Selections

4. Metering Americas 20044 Findings from our Search Apparent disconnect with an AMR industry focused on replacing meter readers Limited industry focus on electric interval data collection and processing for dynamic rate billing No one product would meet all of SDG&E’s needs No “off the shelf” solutions were available Product development would be required

5. Metering Americas 20045 Technical Requirements Collect electric interval data at the meter Solid state ANSI / IEEE compliant meters Built in data recovery method Sufficient memory at the meter to support data integrity Restrict and Enable customer access to meter data C&I Real Time Access via KYZ output C&I and Residential via next day Web data presentation C&I and Residential via limited RF direct access (future) Consumption gas and water meter reading Full intrinsic safety compliance for Gas AMR device Adaptable to majority of current meter inventory No external wiring between meters

6. Metering Americas 20046 Technical Requirements Two Way Communications Leverage existing public and private networks Adaptable to changing communications industry Scalable System C&I customers in phases (25,000) Spot deployable to a geographic area Residential expansion to all customers (1,300,000) Economies of scale: decreasing average O&M and Capital costs as meters are added to the network

7. Metering Americas 20047 AMR System Supplier Silver Spring Networks (formally Innovatec Communications) Had the appropriate system architecture to meet our technical requirements Wanted a utility ‘proxy’ to aid in further system development efforts System Development Relationship Provide utility requirements (gas and electric) Provide technical development assistance / testing Data systems integration Communications systems integration Hardware testing and certification Deployment planning

8. Metering Americas 20048 System Architecture Solid state ANSI / IEEE compliant IDR Meters Single and poly phase C12.19 data tables Integrated two-way communications Under glass, plug and play installation Wireless 900-MHz LAN (.1 watt) between gas and water meters and the electric meter (1.0 watt) between the electric meter / relay / gateway Multiple WAN options Land line (POTS) Cellular (CDMA – circuit and packet switched) Private (DataTac, others)

9. Metering Americas 20049 System Architecture CIS Gateway Meter Communications Underglass Relay Gas Public / Private Networks Utility Operations

10. Metering Americas 200410 System Architecture Meters and communications devices self configure to the network with redundant communications paths Gateway manages schedules and consolidates data for LAN/WAN transmission Gateway communicates with host using a combination of public and private SDG&E owned networks Host software is Web-based application server that manages data export to utility measurement and billing systems Host software facilitates scheduling, alarm management, on-demand reads, etc.

11. Metering Americas 200411 Accomplishments Successful Integration with the GE kV2 single and poly phase electric meter Integration with the Qualcomm CDMA circuit switched modem Engineering of SSN gateway to accommodate Motorola DataTac and SDG&E fiber assets Design and integration of multi-hop relay capability at the electric meter Design and integration of a pole top stand-alone relay device Design and integration of scaleable system operating software Demonstration of very robust and reliable communications system performance

12. Metering Americas 200412 Going Forward Kearny Mesa C&I Pilot 50 meters in 2004 Mission Village Residential Pilot (electric, gas and water) 50 meters in 2004 San Clemente C&I and Residential Pilot 50 meters in 2005 RTEM C&I Expansion 500 - 1,000 meters in late 2004 – early 2005 Balance of approved RTEM deployments will be dependent upon the outcome and timing of the current Statewide Pricing Pilots (SPP)

13. Metering Americas 200413 Findings Lack of a true “standards compliant” meter makes communications integration difficult and costly for any AMR supplier Some meter companies are entering the AMR market and are slow to work with other AMR system providers who are now looked at as competitors Meter industry is slow to produce a low cost interval meter (single phase or poly phase)

14. Metering Americas 200414 Findings Utility back office systems may require a lot of reengineering / development to move to interval data processing and billing Public communications technologies are changing at a rapid pace

15. Metering Americas 200415 Conclusions Strategic Planning is absolutely necessary Understand the changes facing our industry Invest in defining requirement up front Think long term Keep your options open Watch the industry Look for flexibility over the long haul Don’t forget your sister utilities Develop partnerships Be relentless, don’t settle for less than you need

16. Metering Americas 200416 Questions Real Time Energy Metering (RTEM) A Step Into The Future