1. Rich Riazzi Chelan County PUD These are the views of Rich Riazzi and may not be representative of the policies of Chelan County PUD 1

2. Smart-Grid Has the industry created a common vision of Smart Grid? What questions should be asked before we create a Smart-Grid vision 2

3. Three Questions Have our policy makers created the right environment for the development of sustainable energy and environmental programs? Is the prescriptive approach the right approach? Is there a better approach? 3

4. The Prescriptive Approach Renewable standards Conservation standards/goals Greenhouse gas reduction goals Super-Grid standards Mandated vehicle emission standards Plug in electric hybrid goals Alternate fuel standards 4

5. Unintended Consequences One size fits all Impossible to optimize portfolio of programs Creates market anomalies Potentially creates negative environmental impact Dilutes smart-grid value potential 5

6. Is a Course Correction Needed Should we consider an outcome based approach What is the goal? Energy independence Reduced greenhouse gas emissions 6

7. Evaluation Framework Triple bottom-line approach Economic Environmental Social 7

8. Role of Smart Grid Optimize current portfolio Inform policy makers with real time data 8

9. 0 Decision Support Systems NW Generation Hydro Coal Nuclear Natural Gas Wind Solar Other Load/Storage Conceptual Elements of a Smart Grid Cyber Security Trading Desk Risk Management Information Bits/Bytes Real Time Information Load Wholesale Market Plug in Hybrid or Charging Stations Transmission Distribution Network Pump Storage Energy MWHs Load/Storage Industrial Commercial Residential Fiber/Wireless Network 9

10. Discussion 10