Smart Energy Infrastructure Stuart Nachmias, Vice President, Energy Policy & Regulatory Affairs Con Edison

Evolving Energy Technologies

Evolving Electric Distribution System

Engaging Customers Smart meter infrastructure will help customers better manage their bills Allowing utilities and third parties to tailor energy advice for each customer Better information about energy usage Better customer experience and ability to meet ever-increasing expectations Expanded bandwidth provides secure communications with more devices Example High bill alerts Energy marketplace Remote information

Smart Meters Smart Meter & Communications Backbone Installation Timeline Benefits of the Smart Meter System Reduces overall costs to customers Allows customers to manage their bills in new ways, enables alerts Improves outage response and restoration Eases activation of new service Enhances reliability Enables voltage optimization Reduces emissions 2017 2018 2019 2020 2021 2022 Staten Island Westchester County Brooklyn Manhattan Bronx Queens Orange & (pending PSC Sullivan Counties approval) Rockland County Con Edison and O&R’s smart meter implementation timeline will see 5,000 meters installed each day at its peak

New Tools for a New Age

Leveraging New Resources Smart infrastructure will allow utilities to leverage customer energy resources to meet system needs We are evaluating a variety of business models where batteries located at a customer site could be used by the utility to manage system needs Smart homes could benefit from new rate designs that reward customers for managing their impact on the grid At the same time, customers can benefit with greater resilience on-site and lower overall electricity bills Marcus Garvey, a low-income housing complex, participated in Con Edison’s Brooklyn-Queens Demand Management Program

Managing our System in New Ways Smart sensors that monitor the health of our network transformers are already helping us drive down transformer failures and reduce operating costs Enhancing system visibility down to the customer level will also increase efficiency – Conservation voltage optimization has reduced peak usage by 16% in one area of our system All of these will contribute to lower costs for customers

Enhancing Safety & Reliability Today, utilities rely on customers to notify us of outages and safety events New monitoring devices can help prevent some of our most severe safety risks by continuously measuring key indicators Residential methane detectors for natural gas Manhole conditions (e.g., monitoring for precursors to smoke or flooding) Smart meters provide outage detection, notifying us when outages do occur and speeding restoration Residential methane detectors (above) would use our secure communications backbone (below) to alert emergency responders when a natural gas leak is detected

Stuart Nachmias Con Edison NachmiasS@coned.com

November 8, 2017 Broad Street Ballroom New York, NY