1. Stephen Nees Technology Development Manager Anaheim Public Utilities forges ahead with its AMI

2. Population > 340,000 10 th largest city in California Mediterranean climate 70 degrees F average 9.8 inches annual rainfall – but not this year! 50 square miles City of Anaheim

3. 24 th largest US public power utility 2700 GWh annual energy sales 593 MW summer peak (07/06) 110,000 customers Lowest power costs in Orange County Anaheim Public Utilities

4. Commercial advanced metering 700 largest customers Account for over 50% of usage and revenue Advanced metering pilot Multiple vendors Demand response pilot What have we done?

5. Completed Jan, 2007 4 options evaluated Long payback periods Recommendation Strategic deployment MDMS key component Multiple AMI vendors Business Case Analysis

6. Build the core infrastructure Why? Prepare for the future Legislative Regulatory Customer Information Improved operations and service More Business Case

7. Consultant retained RFP development RFP scoring Key factors Future enterprise service bus Multi-vendor AMI support System integration CIS – Sungard H.T.E. OMS – Advanced Control Systems Work and asset management – Oracle/SPL MDMS Request for Proposals

8. Review board established All divisions represented Reviewed and scored the proposals Vendor demonstrations/presentations Evaluated risk factors Financial stability Management stability Architecture/technology MDMS Selection

9. Review board consensus Recommendation to Anaheim PUB Anaheim City Council Approval 8/21/07 – Last night!! More MDMS Selection

10. Two vendor ‘head-end’ systems already in place Large commercial/industrial Residential – capable of supporting commercial Currently two vendor systems - bidirectional Public data network(s) for large commercial/industrial Hybrid mesh RF network (licensed/unlicensed) Planning on adding a third tested system Mesh network Master agreements for equipment What about AMI?

11. Increased options for AMI New vendors New/different communications technologies Wi-Fi BPL Increased competition Upside – reduced costs Downside – confusion at all levels Education Internal Customer Local regulators in our case Observations

12. Questions?