EnergyAxis® AMR System Overview Elster EnergyAxis System Overview 03/2003 EnergyAxis® AMR System Overview Elster Proprietary and Confidential (c) 2004

Presentation Overview Elster EnergyAxis System Overview 03/2003 Presentation Overview Elster Electricity – who we are History and Experience The Elster AMR Solution Product/System Delivery Schedule Detailed Discussions on: MAS Communications Server A3 ALPHA Collector REX Meter RF Network Operation Elster Proprietary and Confidential (c) 2004

Elster EnergyAxis System Overview 03/2003 Elster Electricity – Who We Are Elster Electricity, located in Raleigh, NC, is the former Electricity Metering division of ABB Inc. and Westinghouse Electric Corp. Elster Electricity is a subsidiary of Ruhrgas Industries (RI), headquartered in Essen, Germany, which in turn is now owned by E.ON a large German conglomerate (over $35B in revenues). In the USA, RI owns Elster Electricity, the former ABB Water Metering group, and American Meter Company (gas metering). Together, we are the world’s largest supplier of gas and water meters, and a leading supplier of electricity metering. Elster Proprietary and Confidential (c) 2004

History and Experience – We are not new to AMR Our AMR, Load Management, & Distribution Automation experience began with Westinghouse and extends over 35 years 1960s Pilot-wire meter reading and Telephone AMR 1970s Encoding meter registers 1975-1980 EPRI trials of 2-way carrier and 900 MHz radio 1982 EMETCON power line carrier system introduced 1980s Solid state recorders & communications 1985 -1997 Load Management and Distribution control systems (Carrier, Ripple, VHF & FM/SCA RF) 1990s TranstexT home automation (Telephone & CEBus) 1990s - Telephone, Cellular, CDPD, satellite and RF communications solutions for C&I metering 1999 AMR Server data collection and enterprise meter data repository 2003 EnergyAxis 900 MHz AMR system = Commercialized systems

Elster AMR Philosophy Provide two-way options whenever possible Favor meter data “from the meter” solutions Direct electronic register reads Billing data auditable at meter NO intermediate pulse storage errors or network computations Integrate meters and communications for cost-effective solutions Provide Meter Information solutions, not just “AMR”

Technology to Empower Utilities Elster EnergyAxis® System Technology to Empower Utilities Cust. Info. System Billing / Settlement Systems Work Order Mgt./ Inventory Engineering and Operations Outage Mgt. System Load Research MarketingServices Enterprise LAN / WAN MAS-EE AMR Server Large System Coordination (fut. option) Meter Data Telephone / Cellular / Paging WANs Data Collection Systems MAS Comm Server Residential / C&I Fixed Networks Meters & Communications

EnergyAxis AMR System Elements MAS Data Collection Systems RS-232/ RS-485 Analog Cellular Telephone or Cellular WANs RS-232 with CDMA/1XRTT or GSM/GPRS ALPHA Meters with Communications Commercial, Industrial, Residential EnergyAxis 900 MHz LAN REX Meters with RF Communications Residential, small Commercial A3 ALPHAs with RF Communications Commercial / Industrial Future Water & Gas with RF Communications

NEW Elster EnergyAxis AMR System Entirely meter-based AMR system Residential, commercial, industrial Electric solutions, future Water and Gas Uses proven 902-928 MHz unlicensed radio for local area networks and public Wide Area Networks New Elster-designed repeating RF “mesh” LAN architecture Elster MAS Data Collection systems on Windows 2000 PC platform can support up to 200,000 meters each

Elster EnergyAxis AMR System for Residential Integrates 900 MHz communications into REX and A3 ALPHA electronic meters 900 MHz repeating RF LAN Solution for single-phase Residential and small Commercial applications Future RF WANs Telephone MAS Comm Server

Elster AMR Functionality - Commercial & Industrial Public Networks (Telco / Cellular) 1-ph REX Meters EnergyAxis 900 MHz LAN REX meters for single-phase Commercial available today Public Networks (Telco / AMPS / Digital Cellular / Paging) Single or 3-phase ALPHAs Polyphase ALPHA meters with multiple WAN AMR options available today 3-ph A3 ALPHAs Polyphase A3 ALPHAs with repeating RF LAN communications now available for energy & demand metering only Small Commercial sites, Strip Malls, Shopping Centers, Large Industrial Sites MAS Comm Server

Single-Tier Drive-by AMR Systems Suitable only to replace monthly meter reads One-way inbound only Limited data collection capability Energy only for residential Energy & demand or limited TOU for C&I (Elster A3 ALPHA with Itron ERT50ESS)

Single Tier Fixed AMR Networks Collectors are pole-mounted Difficult to site Required bucket truck and crew to install or service Costly to wire for power & comms In Star topology, range of sub-networks is limited to one 900 MHz hop (100-800’) Meters cannot communicate around obstacles Requires many more collectors to cover a given area Needs more alternate “fill-in” technologies Collector 100-800 ft Systems function as one-way inbound AMR Modules have limited functionality, basically Energy pulse counts

A Mesh Network Assumes Obstacles Elster employs a ‘controlled’ mesh where the Collector meter sets up the meter/repeater network Algorithms emphasize reliability to each meter and allow paths to change in an organized fashion when needed. Network configuration and changes are transparent to the operator. C Mesh networks were developed for battlefield conditions where units are moving. Every radio repeats every message it hears. This is chaotic and can lead to interference when units are fixed.

Elster AMR System – Key Differentiating Feature New Advanced Elster RF network Proven 900 MHz unlicensed communications Intelligent 2-way communications to all meters Mesh Network RF LAN architecture Any meter can be a repeater Mesh networks controlled by A3 ALPHA Collector Meters Architecture provides up to 7 Repeater Levels (8 ‘hops’ ) Allows communications around obstacles… fewer coverage “holes” Expands Collectors’ coverage area… fewer units = lower costs System Algorithms: Optimize communications reliability to each meter Support Automatic RF registration for “Plug and go” installs Allow Self-healing communications – Units will re-register via alternate paths when local RF conditions change

Cost-Effective for Both Targeted or Mass Deployments High-cost, Hard-to-Access, Dangerous, or High-Turnover Areas Mass Residential and Commercial Areas Apartments Student or Military Housing Industrial Campuses

New REX Electronic Meter New, all-electronic single-phase Elster meter Supports Elster AMR communications on main board Utilizes unlicensed 902-928 MHz band Frequency-hopping spread-spectrum communications 1/4-watt transmit power Two-way communications support Scheduled & On-request reads of any meter ANSI 0.5 accuracy class (0.2 except at temp. extremes) Forms 1S, 2S, 3S and 4S (12S in 2Q2005) Voltage: 120 and 240V + 20% -40° to +85° C rating (inside the meter) Class 20, 200, or 320 self contained

Elster AMR System – Key REX Features REX meter supports flexible rates without costly equip-ment changes or site visits. Any meter can measure: Energy (Delivered, Received, Sum, or Net) TOU (4 Tier, 4 Season Energy) Demand (Total + 1 Tier or 2 Tiers) Real-Time / Critical Tier Pricing at any time 15, 30 or 60 minute Load Profiling NO batteries needed for TOU or LP functions in most meters… time is kept by system and Collectors Lowers initial meter cost Eliminates battery maintenance

Elster REX Meter – Other Key Features Tamper Detection Outage / blink counts Reverse energy always metered Meter failure statuses End-point Voltage data Utility-specific LAN ID in each meter allows overlapping service territories without operational conflicts Optional 200 A. Service Disconnect internal to the REX meter with demand limiting capability Outage and Restoration data

A3 ALPHA with 900 MHz LAN Board A3 Nodes provide polyphase AMR metering functions with LAN operation similar to REX Units can function as an RF network repeater and can reside on same Collector networks with REX meters Currently available in Form 12S Forms 9S, 16S, 35S, 36S to be available 1Q2005 Limited initial functionality kWH energy and kW demand metering only Future units will support TOU, LP, Reactive

A3 ALPHA Collector Overview A3 Collectors can be either single-or polyphase meters Meets ANSI standards, including C12.18, 19 & 21 Consists of A3 ALPHA meter with 2 internal boards: WAN: Available with internal telephone outage modem; optional external CDMA or GSM cellular modem, other future RF options LAN: 900 MHz RF Internal LAN Controller Board (ILC) Manages LAN of up to 1,024 meters, including auto-registration and re-registration processes Includes a Lithium TOU battery to maintain LAN system time, which is broadcasted periodically to all AMR meters in the RF LAN Maintains current and optional TOU Tier schedules for downloading to REX meters (up to 8)

Elster AMR System – Future Flexibility EnergyAxis system adaptable for: Broadcast messaging In-home communications Energy Management & Load Control In-home Display for customer messaging (Rates, kWh, kW, $) Pre-pay metering services Home Automation features RF or PLC communications REX unit supports up to 3 option boards CUSTOMER MESSAGES ENERGY PRICING In-home Display 72 THERMOSTAT CONTROL

Elster AMR System – Future Gas & Water AMR Elster EnergyAxis RF LAN will support RF AMR modules for Gas or Water meters or other devices Units will operate one-way inbound to extend battery life Latest REX can store up to 8 gas or water messages for forwarding to Collector Battery powered AMR Module development has begun with Elster sister companies AMCO Water and AMCO gas metering Prototype field test units will be deployed later this year Expected commercial release in 2Q2006 (water) and 2007 (gas)

AMR System Functionality - Residential Scheduled meter reads for billing or data collection On-request meter reads Outage and Restoration Call-ins Meter re-programming / RTP Connect/Disconnect Value-added services 1-ph or 3-ph A3 ALPHA Collector A3 ALPHA Collector with WAN & 900 MHz LAN Boards - AMR/Demand/TOU/LP - Network Management Time Synchronization of LAN meters - Outage/Alarm Monitoring Public Networks (Telco/Cellular) Apartments REX 1-ph Meter with 900 MHz LAN AMR/Demand/TOU/LP - Tamper Detection/ Alarms - Virtual Disconnect REX 1-ph Meter with 900 MHz LAN & Disconnect option AMR/Demand/TOU/LP - Tamper Detection / Alarms - Service Disconnect Load Profile may be enabled for any meter, subject to capacity of Collector memory

Public Networks (Telco/Cellular) AMR System Future Options - Residential Public Networks (Telco/Cellular) Planned Applications - TOU and Real-time Pricing with pre-set Load Mgt. Gas and Water Metering Pre-pay metering Home Automation A3 ALPHA Collector with WAN & 900 MHz LAN Boards REX1-ph Meter with 900 MHz LAN & Sec. Comm. Board Future Gas & Water Modules with 900 MHz LAN

Elster EnergyAxis Systems Experience Development started in 2000 Field Testing started in 2002 227 REX Meters and 3 Collectors System announced commercially in July 2003 Elster has placed hardware at over 35 utilities IOUs Public power US NW, SW, SE, International All installed systems are running at 100% success for daily reads Several Trial systems now being expanded SRP announced 125K unit expansion 10-04

Test Network Showing Repeater Levels Active Collector All 227 REX meters registered using 7 hops (6 Repeater levels) All 227 REX meters registered using 5 hops (4 Repeater levels) Active Collector Alternate Collectors 4000 ft. 2000 ft.

Salt River Project Installation 470 Meters Apartments .5 mi. Single-family Residences 230 Apartments 120 Patio Town homes 120 Single Family Residences Verified operation with stucco over wire construction Demonstrated highly reliable daily AMR reads Townhouses

Portland General Electric Installation Planning for Backbone System Test (approx. 1200 Meters over 12 sq. miles) Testing networks of 80-120 REX meter/repeaters per square mile using 1 Collector per square mile grid System will Provide ability to install AMR or TOU meter anywhere within the backbone network.

Orlando Utilities – 480 Meter Apartment Complex 0.5 mi. 2300 ft. 5 meters in Test Shed Apartment Complex with 480 Meters Collector

OUC EnergyAxis System Expansion

Elster System Benefits – Metering Operations Reduce or eliminate: Manual meter reading costs Meter reading errors Site-related personnel injuries and liabilities Out-of-cycle manual reads for: Move-outs / Move-ins High turnover areas (apartments, military, colleges) Estimated Reads at hard to access / Dangerous sites Bill complaints requiring read verification Costs of service disconnect/connect Allows Virtual or hard disconnect without visits Possible extension to prepay system

Elster System Benefits – Metering Operations Reduce costs of changing metering requirements Energy, Demand, TOU, RTP, LP… selectable at any time Allows truly random selection of load and rate research meters Eliminate site visits to change meter to match needs Eliminate site visits to update TOU calendar/schedules Greatly reduces cost of TOU battery change-outs Reduce lost revenue through early detection of meter tampering and alarms Reverse energy monitoring / summed energy Outage counters

Elster System Benefits – Rates/Load Research Eliminates cost of buying special purpose meters for load research Eliminates expense of moving meters when a new sample is required Allows truly random selection of load and rate research meter locations Allows new rates to be developed and applied without site visits

Elster System Benefits – Distribution Operations System Outage and Restoration data Verify non-restored power areas for crew dispatch Outage / Blink counts can pinpoint faulty equipment System Demands Since all meters measure with time synchronized demand, it is possible to summarize demands for transformers, line segments, feeders, etc. Voltage monitoring Improve customer service in low voltage areas Improve system efficiencies due to lower system losses

Maximizing Your AMR Investment Buy from a stable supplier that invests in R&D to support and upgrade their AMR systems Look for systems with increasing value and functionality Advanced features Connectivity Other Utility Metering C&I Residential DSM In-Home Display CTP Alt WAN 2007 Gas Water A3 Node Fm 12S 200A Disc CL 320 kWH, kW, TOU, LP 2003

Summary of Utility Applications The Elster 900 MHz Mesh Network AMR System is designed for: Urban and Suburban service areas… not rural Targeted AMR with high metering costs Hard to Access meters High turnover areas Hazardous areas Service Disconnect applications Full scale AMR - when higher functionality is needed or anticipated Residential and Commercial metering Energy, Demand, TOU, or Critical Tier rates Load Profile data Gas and/or Water AMR

Elster Product Release Schedule AMR system available today with: Form 1S, 2S, 3S, 4S REX meters w/ RF LAN Form 2S Class 320 REX Form 2S with Integral Service Disconnect Single- and polyphase A3 Collector Meters with Internal Telephone or external Cellular WAN & RF LAN MAS 5.1 Communications Server Form 12S REX 2Q2005 A3 ALPHA with 900 MHz LAN Card 4Q04 -3Q05 MAS 5.5 – A3 Node support for TOU 4Q2005 Load Profile

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