John Kratzinger Jim Roscovich PECO Energy John Kratzinger Jim Roscovich Introductions for Jim and myself. Topic is AMR and the impact to investigating energy theft. AMR 1/3/2019 Copyright 1996-98 © Dale Carnegie & Associates, Inc.

Peco Energy AMR History AMR Project started in 2000 Four Year Project Over 2.5 Million Meters Installed Only 8,700 Meters Left to Install AMR is a great undertaking and the cost benefits are well worth it. A brief history on the installation of AMR on the PECO system. AMR 1/3/2019

Breakdown of Meters 2 .1 Million Total Meters .5 Million Gas Meters Started with over 375 different types of Meters Ended with 28 AMR types of Meter More history. AMR 1/3/2019

SAFETY Most Important Issue for PECO Energy Customers Employees Equipment Safety is our number one issue with any operational effort undertaken by PECO Energy and that holds true for the AMR project and the Revenue Protection Team who investigate theft of service. The Revenue Protection team has celebrated 8 years without a lost work day this past June. A clear sign that we mean safety is our number one issue. AMR 1/3/2019

Traditional – Prior to AMR Meter Readers Reported once a month Broken/Missing Seals Tampering Illegal Hook-up Cut-Thru Many companies have meter readers who are the eyes for theft of service. Other utility companies have invested in AMR and our using the technology to read the usage on customers meters. How well are they fairing against energy theft is the key question that many revenue protection teams are asking? But first, more information on PECO Energy and the revenue protection team’s efforts to identify and investigate energy theft. AMR 1/3/2019

Traditional Presentation to All Departments in Company Presentation to Police and Fire Presentation to Bell and Cable Companies Handouts with Hot Line Number Revenue Protection incorporates yearly a plan to communicate to various teams, groups and organizations information on energy theft and how it is a crime and dangerous. These meetings have a positive effect in that more hot line tips come into the revenue protection team and these tips are about a 90% success rate in identifying theft. The next few slides will show some of the ways that individuals have tried to steal electric on the PECO Energy system. I’m sure many of you have seen these methods but I want to highlight one point. Here we go. AMR 1/3/2019

Here a individual put a timer on the pot latch Here a individual put a timer on the pot latch. Control the usage at his property by way of a timer. AMR 1/3/2019

Customer drilled a hole into the glass globe to insert something to slow down the dial. The red straw is just to demonstrate were the hole is. AMR 1/3/2019

There are two meters here There are two meters here. The one on the right is good meter, the one on the left has been tampered with jumpers on the jaws that reduces the proper usage. AMR 1/3/2019

This is another meter that has been tampered with, this is a switch attached to the pot latch. AMR 1/3/2019

AMR Reads Meters every 5 Minutes System identifies flags associated with theft daily Analysis Jobs Entered into Dispatch System All the tampered meters you just saw were reported to the revenue protection team by AMR reports. These reports were analysis and put into our dispatch system to have a revenue protection technician investigate. These reports come to us every two weeks. Gas meter is every 15 minutes. AMR 1/3/2019

Non Traditional Pro Active Sweeps – Using AMR Data Special Projects – Using AMR Data Collateral – Using AMR Data Previous Vendors on System – Using AMR Data Fixer – Investigation by PECO Security In addition to AMR reports, the PECO Energy Revenue Protection Team uses other non traditional methods to find energy theft. Sweeps, special projects, collateral and previous employees. The key in using these methods is a common dominator of using the AMR system to support our findings. FIXER – there out there and when we find one we prosecute to the fullest. AMR 1/3/2019

Relationship with Vendor Schlumberger Cellnet Same Management Team Working Relationship with Vendor The AMR vendor started out as Schlumberger then they were bought by Cellnet. It maintained the same management team and was seamless to PECO Energy. Since then Cellnet was again bought by another company. Regardless, this vendor has been very helpful in making sure that the revenue protection piece is in place. AMR 1/3/2019

AMR Reports Power Outage Exception (POE) Reverse Rotation (REV) Magnetic (Mag) A sample on the type of reports we get from the vendor. POE is a report that hits a threshold indicating this account has too many outages and needs to be investigated, first from the office using the ARMD system, if the system supports an investigation then a RPT will go out on the job. This has over 90% hit rate. Rev Rot – is unique, the meter reports back that I’m upside down but reading right side up, these are 100% hits. We do go out on these jobs to make safe, exchange meter and place additional locks on meter board. Mag, is the only report that has no real value to our system at this time, the reason I’m saying that is so far we haven’t found a theft at any of these jobs. In the future the Maj could provide a different reading and be very helpful in preventing theft. AMR 1/3/2019

NEXT STEPS Work in Progress Gas Meter Reports Narrow the current Parameters to the right level to detect theft Close Relationship with Vendor I believe we can do more with AMR, the vendor believes we can do more with AMR. Lowering parameters on the POE could increase more hits on switches. This is only possible with a strong partnership with the vendor. That concludes the formal part of our presentation. If anyone has any questions Jim and I would be happy to try and answer them. AMR 1/3/2019