S MART M ETERS IN T EXAS Overcoming Barriers to Smart Grids & New Energy Services University of Texas Interdisciplinary Energy Conference Austin, Texas April 7,

R ETAIL C OMPETITION IN T EXAS 6 million customers have choice of retail provider Separation of functions required: generation, delivery, retail sales Delivery service is regulated Distribution utilities perform metering Utilities transmit consumption data to ERCOT for settlement and to retailers for retail billing 2

A DVANCED M ETERS 2.5 million smart meters installed By end of 2013 over 6 million will be deployed Information tool for consumers and retail providers to track energy use, at Third parties authorized by customers will have access Home Area Networks (HAN) being deployed 3

P OLICY S UPPORT FOR A DVANCED M ETERS Statute permits surcharge and encourages deployment PUC rule prescribes required features and basis for approval of surcharge PUC has approved deployment plans for three utilities PUC involved in on-going stakeholder dialogue concerning implementation issues 4

K EY B ENEFITS Quicker service restoration after outages Reducing customer energy costs AMS data access Time of use pricing options More accurate assignment of costs to customers Remote service: switching providers, connection, disconnection, meter read Faster service, lower fees for customers Better pre-paid services 5

C USTOMER R ESPONSE P ROGRAMS Smart meters create opportunity for retail providers to engage customers in wholesale market Physical hedging—shifting consumption to avoid high-price intervals Deferring consumption during electric system emergencies 6