Transformation of the Energy Grid

Implications of Smart Meter Rollouts “Smart Electric Utility Meters Intended to Create Savings, Instead Prompt Revolt” - NY Times “Smart Meter Backlash Again: This Time in Texas” - Earth2Tech Copyright © 2010 Elster

Walking in the Consumer’s Shoes Utility Industry Perspective Home Area Networking Demand Response TOU / Critical Peak Pricing Load Control KWH How will this industry get the consumer engaged in the smart grid? This is a paradigm shift for most of us involved in the industry. While we say we are focused on the consumer and trying to get them to engage, we are still think in terms of AMI, Demand Response, Connect/Disconnect, Energy Efficiency, Distribution Automation, Home Area Networking, LANs and WANs. -We as industry experts forget that our language is foreign to the average consumer, yet we continue to communicate through tools and messages that perpetuate this confusion. -Consumers as a general rule also have virtually no understanding of how the utility system works. They assume the grid is already smart and just want to flick a switch and have the lights come on. - And as evidenced by the recent backlash in California, consumers are very motivated when it come to their pocket books and have become skeptical of smart metering and its benefits -How does the utility industry engage the consumer and have them become active participants in the consumption of energy? -Do they even know what a kwh is? Not sure, ask your neighbor, your family member. -We must do a better job of meeting the customer on their terms, not ours. Wireless communications providers – by effectively bundling services and applications driven by individual behavior and desire, are examples we can look to as an industry.

Technology enables new consumers empowerment, but……. Consumers are being empowered More information Historic usage, usage during day In-home displays, control More notification Bill projections Outages Usage information In-home displays / control e-Notification Dear Christoffer, Your electric usage has reached your preset threshold of $200. Please login to www.xxxnet.com to view your daily usage totals. John Smith Manager, Residential Customer Services e-Notification Dear Christoffer, Your electric meter has reported an outage at your Main Street residence. Please visit www.xxxnet.com for more information. John Smith Manager, Residential Customer Services Outage notification Usage notification 4 © 2009 by Elster. All rights reserved.