MEPAV 2010 CONFERENCE. AMI MANASSAS Gregg S. Paulson, P. E MEPAV 2010 CONFERENCE AMI MANASSAS Gregg S. Paulson, P.E. Deputy Director of Electric Utilities City of Manassas VA May 28, 2010 Customer Portal Internet Network Monitor

MEPAV 2010 CONFERENCE AMI (Smart Grid) MANASSAS Agenda Why AMI in Manassas? Load Management Expenses/Savings AMI Deployment

The AMI Decision?? AMI is the foundation of the “Smart Grid” and fits well into our Five Utility Strategic Plan Focus Areas Affordable rates for City Customers AMI helps keep rates low by reducing Supply Capital and O&M costs and provides for future TOU rate structures Safe, Adequate, and Reliable Service Improves outage notification and response time, helps proactively identify system disturbances improving reliability Quality and Safe Work Environment Improves Safety by limiting exposure of personnel to hazards of reading and connecting/disconnecting service. Excellent Customer Service Provides faster response to customer requests, more accurate meter reads and billing statements Strong Environmental Stewardship Reduces energy resource and fuel needs thereby reducing GHG’s Affordable Rates AMI helps keep rates low by reducing Supply Capital and O&M costs and provides for future TOU rate structures Safe, Adequate, and Reliable Improves outage notification and response time, helps proactively identify system disturbances improving reliability Quality and Safe Work Environment Improves Safety by limiting exposure of personnel to hazards of reading and connecting/disconnecting service. Excellent Customer Service Provides faster response to customer requests, more accurate meter reads and billing statements Strong Environmental Stewardship Reduces energy resource and fuel needs thereby reducing GHG’s

Why AMI in Manassas? Demand Reduction Strategies Generation Peak Shaving Voltage Reduction Load Management

AMI Benefits Purchased Power Cost reduction Emissions Footprint Reduction Position the Utility for the Future Advantage of New Technologies (HAN) New Legislation & Regulations Operational Benefits New Business Opportunities Take advantage of current technology so the Utility will be prepared for the “Smart Home” and other technologies Be proactive in having systems in place to support current and future energy legislation Position the Utility for new Business opportunities ( Customer Web Portal, Security Monitoring & Video Surveillance, etc. ) More timely meter reading and response to customer requests/complaints, outages, service requests, etc. Combining and growing existing systems. Utilizes the existing BPL network. This system is in place throughout the service area.

AMI Benefits Purchased Power Cost Reduction Load Management/Demand Response Gain increased participation in Load Management Verifiable impact of Load Management 1.5KW+ reduction in demand per participant per month $16.92 per KW per Month under the current contract Expected to change under new contract in 2011 ($17.50) Operational Cost Benefits Reduced Annual O&M costs Meter Reading Costs Avoided cost of Distribution Improvements Customer Service Benefits Outage Management

AMI/Load Management

AMI/Load Management

AMI/Load Management Customer Benefits No cost to Participate Provides Daily Usage Detail Ability to Control Appliances Utility Cost Savings Credit on Your Bill Ability to Manage Costs Reduces GHG Emissions Free Home Energy Audit Take advantage of current technology so the Utility will be prepared for the “Smart Home” and other technologies Be proactive in having systems in place to support current and future energy legislation Position the Utility for new Business opportunities ( Customer Web Portal, Security Monitoring & Video Surveillance, etc. ) More timely meter reading and response to customer requests/complaints, outages, service requests, etc. Combining and growing existing systems. Utilizes the existing BPL network. This system is in place throughout the service area.

Load Reduction Savings Updated New Contract

Electric Expenses

Electric & Water Savings

Electric & Water Savings/Expenses

Electric & Water Savings/Expenses

Advanced Metering Infrastructure Wireless mesh meter-node network Utility Provided Applications Network Manager Smart Thermostat MDM CIS Billing Application Server Outage Management System Network Manager Client Collector Customer Portal Database Database Web Applications Application Server Load Control Device

AMI Deployment Pilot Deployment Full City Wide Deployment Point of Woods East & adjacent areas 450 Residential & 50 Commercial Customers Goal of 50 Thermostats & 50 Water Heaters Over the next three months (June-Aug) Full City Wide Deployment 15,500 Electric & 12,500 Water Meters Goal of 3000-5000 LM Devices Two Year Full Deployment (2010-2012)

Summary AMI is the Foundation of the Smart Grid AMI LM/DR allows partial recovery of lost Generation Benefit Many Operational Benefits Allows New Rate Structures Water Meter Expense recovered through Lost Revenue Recovery Electric Expense recovered through LM/DR and O&M savings Payback in Two Years After Full Deployment Utility Commission Approved Pilot Award in March 2010 City Council Approved Pilot Award in April 2010

QUESTIONS?