Product Manager - Automation DISTRIBUTION AUTOMATION Scott Ware Product Manager - Automation Smart Grid and Lazer DA Strategy Competition Resources

Smart Grid and Lazer

Drivers The main current driver for Smart Grid investment are the American Re-investment and Recover Act (stimulus money). Estimated market for smart equipment and integration is estimated to go up and up and up.

Customer Value of Automating Increase reliability and uptime Improved performance metrics for rates (SAIDI, SAIFI, CAIDI…) Reduces human error Reduces humans Reduces need for emergency dispatches and time to find faults Performance Based Rates The reasons that customers are interested in automating their systems

Two or more G&W devices communicating and doing something DISTRIBUTION AUTOMATION Two or more G&W devices communicating and doing something Switchgear or reclosers Relays Communication Packaged Up to full SCADA package

Specific Value to You Customer future is automation Stimulus money Helps lock in our products Helps break commodity pricing Expand your value to the customer More $ in automated products than non-automated products Why is it valuable to the reps to sell automation and intelligent equipment.

Automation Up Sell There is more money in automation Two Viper ST’s - $40 K Two Viper ST’s communicating in an auto transfer scheme - $55K Two Vipers communicating to existing Vipers in an FDIR scheme - $100K 4 way SF6 or Trident Normal product - $55k Lazer Ready package - $75k

Strategy

Key Messages Lazer Ready Flexible Pre-packaged Familiar Switching devices Relays and logic Communication Flexible Relays (SEL) Familiar Vipers Tridents SF6 Switches Relays Lazer Ready Install now and automate later How we want our message to come across in the market.

North America – C&I Market and Coops / Munis Promote packaged solutions as individual products: No engineering department required Familiar products with flexibility Short start up time Examples – Kauai Electric, Camp Humphreys, Woodstock, Brantford Power, City of Newnan, UNC, Purdue, San Diego Airport Primary offering as SEL but open to others C&I Potential Customers Hospitals and universities Manufacturers requiring reliable power Engineering firms, EPC’s, and developers Military installations

North America – Major Utilities, IOU’s Lazer Ready products as primary offering High speed automated loops as secondary offering for specific areas Benefits: Products work with existing system Familiarity of SEL relays Open protocols Co-selling with SEL Build a Smart Grid one smart product at a time Examples – AEP, PSE&G

International C&I market - reliable power US Military Bases in particular Major utilities (independent or government owned) Look for partners Intelligent components Experience and reliability Help promote their Smart Grid initiatives with US reliability Products Submersible or other demanding applications where RMU’s won’t work. Trident solutions where greenhouse gas emissions are an issue.

Competition

Competition Primary Competitor – S&C Electric Secondary Competitors – Cooper, ABB, Third Tier Competitors – Siemens, Powell, GE, Schneider, Eaton, Noja, Lucy

Intelliteam Will push their own relays / controllers Can offer SEL as alternative More experience and bigger installed base Want engineering + design work too Other products that we do not offer (distribution level UPS, static VAR compensator…) Larger company - more resources.

Intelliteam vs. Lazer Intelliteam No zone protection Slower and less flexible Peer to peer communication only No central control Proprietary protocol – UIM required to interface with non-S&C products. Tied to their own products Zone protection capability Greater technical capability Optional open protocols Optional central control and communication Back up protection – multiple setting groups More product flexibility

Uses their own relays and protocols 4 tier marketing from independent products to peer-to-peer communication Market leading recloser EAS group, Cannon PLC, Cyme Big company service Will only use their own relays (inflexible)

Systems and packages Transmission leader True global company Not as interested in smaller projects Will only use their own relays Few distribution installations

Others – Third Tier Competitors Switchgear Manufacturers / Multi-Nationals Siemens General Electric Schneider / Square D Eaton / Cutler Hammer Powell Generally not interested in smaller projects and / or don’t have the products to do it. Product Manufacturers Noja Lucy Whipp & Bourne Koreans Haven’t shown and interest or competence in this yet.

Resources

Marketing Development More Lazer ads Individual As part of other product ads Application guides Currently 5 More added as new projects come Tradeshow promotion Distributech IEEE

Marketing Resources Standard FAT document to send with quote on request (May 2010) Standard designs System / functionality templates Drawings Webinars in 2010 (Dates coming) Updated website with more resources New catalog (June)

New Product Development Pre-packaged Lazer ready switch packages (Trident and SF6) Base level pre-packaged Lazer solutions (distributes auto transfer, main-tie-main…) Other relay solutions Critical Load Preferred Source Alternate Source SEL 351R SEL 351R

Services and Commissioning F.A.T. Training Field Service

Distribution Automation Switchgear Communication Relays Programming Support

Can G&W Do It? Yes we can!