Wired Group Measuring Distribution Performance: What Will YOU Do with the Capability? Utility Evaluator™ Demonstration NASUCA Mid-year Meeting June 7, 2016 Unleashing Latent Value in Distribution Utility Businesses

Wired Group Wire Group 2 AMI & DA $ Benefit-Cost/Customer, Ideal Case Copyright Wired Group. All Rights Reserved Utility “Throughput Incentive” Penalties Utility “Rate Case Timing” avoids sharing w/customers

Wired Group The Importance of Performance Measurement Copyright Wired Group. All Rights Reserved 3

Wired Group Wire Group 4 Utility Evaluator™  Data on 137 IOUs; Publicly available; Self-reported  FERC Form 1; EIA Form 861; JDPA; Platts’ UDI  Internet-based, password-protected  20 pre-defined metrics in 6 performance categories  19 characteristics available to define peer groups in 6 descriptive areas  Financial and Most Operating Data back to 2010  Reliability and DSM Program Data back to 2013  IP protection strategy in development; provisional patent filed Copyright 2012 Wired Group. All Rights Reserved 4

Wired Group Wire Group 5 TURN Case Study  PG&E filed rate case  Record-sized capital request ($1,900/customer)  Wired Group hired as distribution capital SME; Utility Evaluator™ outputs used in testimony  PG&E requested and received work papers  PG&E did not object to the data presented  Hearings scheduled for July Copyright 2013 Wired Group. All Rights Reserved Go to software

Wired Group Wire Group 6 Copyright 2013 Wired Group. All Rights Reserved Note: TURN’s cost expert on the PG&E rate case elected not to use this chart in testimony

Wired Group Wire Group 7 Copyright 2013 Wired Group. All Rights Reserved

Wired Group Wire Group 8 Copyright 2013 Wired Group. All Rights Reserved PG&E’s assets are 29% higher than the average US IOU despite 42% lower peak kW PG&E’s distribution assets grew 25% while the average US IOU’s grew just 17%

Wired Group Wire Group 9 NEXT STEPS  Obtain more experience using Utility Evaluator™ in regulatory proceedings  Pursue group purchase discount with NASUCA?  Pursue funding opportunities  I commit to use funds to further develop software at NASUCA members’ direction  Roll-out and training at Annual Meeting? Copyright Wired Group. All Rights Reserved

Wired Group Thank You! Copyright Wired Group. All Rights Reserved 10 Paul Alvarez, President, Wired Group Mobile Office , x NASUCA MEMBERS: Please me to get your copy of Smart Grid Hype & Reality: A Systems Approach to Maximizing Customer Return on Utility Investment

Wired Group APPENDIX

Wired Group Reliability* CAIDI with & without Major Event Days, in total and by state SAIDI with & without Major Event Days, in total and by state SAIFI with & without Major Event Days, in total and by state Costs O&M Spending per Customer O&M Spending per Distribution Line Mile Billing & Customer Svc. Spending per Customer G&A Spending per Customer Operations Energy Losses Circuits with Voltage Optimization Customers with Advanced Meters Customer Engagement Customer Satisfaction Customers on Dynamic Rates Assets & Equity Assets per Customer and per Distribution Line Mile Increase/Decrease in Assets per Customer Years to replace Distribution Grid Return on Equity DSM Programs EE Program Conservation EE Admin Cost Demand Response as Percent of Peak Demand Response Admin Cost Metrics: the Key to Performance Measurement Copyright Wired Group. All Rights Reserved 7 * Reliability Metrics are available for utilities using either IEEE 1366 method or “Other” methods Soon available by state In development

Wired Group All IOUs (137) Load Characteristics Peak Demand per Customer Annual Energy per Customer Capacity Factor Distribution Characteristics Customer Density per Distribution LIne Mile Customer Density per Service Area Square Mile DG as a percent of peak demand Utilities that use IEEE 1366 to report Reliability Business Characteristics Owned Generation Percent Also Distributes Natural Gas? Size by customer count Size by peak demand Size by energy distributed Regulatory Characteristics Retail Competition? Decoupled? Generation Ownership? State ACEEE DSM Scorecard Rating Demographics Principal State of Operation ISO/RTO Parent Company Characteristics/Peer Groups: The Key to Credibility Copyright Wired Group. All Rights Reserved 8

Wired Group Subscription Fees Non-profit subscribers receive a 50% discount Fees are payable monthly; a 20% discount is awarded for paying one year in advance Want to shape development? Be one of the first 5 customers to pay one year in advance to secure a spot as a beta tester No charge to beta testers during beta test period 5 concurrent users per license User‘s manual (Hardcopies and real-time online access) Up to 5 hours initial user training Unlimited help during business hours Attendance at annual conference for up to 5 users Copyright Wired Group. All Rights Reserved 14 For-Profits $3,000/month or $30,000/year; Non-Profits $1,500/month or $15,000/year SUBSCRIPTIONS INCLUDEINTRODUCTORY OFFERS