Lets Get Ready, South Florida Power Center for Utility Exploration (PCUE)

Edison versus Alexander Graham Bell (c) SEGA 2012

Smart Grid Simplified Smart grid is essentially the use of a two-way communication platform built into todays electric grid that will enhance reliability, grid efficiency, and enable consumers to make smarter choices. The North American electrical grid is the largest interconnected machine on earth Smart grid technologies offer many benefits to utilities and consumers – enhanced reliability and energy efficiency (c) SEGA 2012

Why We Need a Smarter Grid Economy - electricity keeps the wheels of commerce spinning According to the US Department of Energy, customer demand is outpacing transmission capacity: Since 1982, growth in peak demand for electricity has exceeded transmission growth by almost 25% every year. Consumption driven by population growth, bigger houses, bigger TVs, more air conditioners and more computers Over the past 40 years there have been five massive blackouts and three of those five have occurred in the last decade. More blackouts and brownouts are occurring due to the slow response times of mechanical switches, a lack of automated analytics However investment/spending on research and development in grid modernization is among the lowest of all industries. (c) SEGA 2012

Power Center for Utility Exploration (PCUE)

Source: Electric Power Monthly March 2011 (DOE-EIA)

Did You Know? 1.Electric utilities generally do not know when a customer is with/without electricity 2.Smart grid will enable customer access to real time energy consumption 3. Smarter grid will enable electrification of transportation using electric vehicles (EVs) without sacrificing reliability 4.Store energy to offset peak periods using EVs 5.Manage intermittent nature of renewables 6.Enable future technologies and applications 7.Consumer empowerment/dynamic pricing (c) SEGA 2012

Consumer Benefits Smart Grid will drive down costs and place downward pressure on the price of electricity Empower consumers - manage consumption, cost, and make smarter decisions for their home and/or business Improve grid performance and reliability for the consumer through efficient use of real-time, integrated, end to end view of the grid Optimize generation of electricity, and minimize impact to the environment through load shaping technologies to benefit customers Reduce harmful air emissions (c) SEGA 2012

Current & Future Challenges Need for workforce training in the advanced power sector for current and future utility workers Customers will need education on new rates/dynamic pricing to fully maximize the smart grid (e.g., similar to the transition from landline phones to mobile cell rate plans) Electric Vehicle rollout will require multiple parties to manufacture EVs Who installs public charging stations? Utilities? Retail businesses? Will customer demand for the vehicles to support EV manufacturing efforts? Forecasting energy consumption with moving loads EV benefits: cheaper fuel and reduced tailpipe emissions – places more focus on fuels and technologies used for utility-scale electric generation Public policymakers addressing concerns re potential loss of revenue for roads and bridges with loss of sales tax from loss of gasoline sales (c) SEGA 2012

Florida Leading the Way G2P is a DOE/FPL/SEGA $12Million initiative which focuses on the development of innovative strategic electric power, renewable energy, smart grid training and educational program Goal is to fundamentally transform the traditional approach to electric power education to train students on the next generation of power systems including clean energy and smart grid technologies Energy Smart Florida(ESF) is the nations largest Smart Grid where SEGA is involved with FPL. ESF represents an overall investment of about $800 million. It is supported by a $200 million stimulus grant from the U.S. Department of Energy. The remainder will be funded by FPL as capital and operating expenditures

G2P Consortium Approach © SEGA 2012

Summary Empower consumers - manage consumption, cost, and make smarter decisions for their home and/or business Improve grid performance and reduce time of restoration following outages Optimize generation of electricity, and minimize impact to the environment Reduce harmful air emissions © SEGA 2012