Smart Meter Update Oregon Public Utility Commission August 14, 2018

Background and timing Smart Grid reports analysis culminated with a proposal Aug 1 2016 Pacific Power began installing 590,000 smart meters Week of Jan 8 2018 Advice No. 17- 001 was filed to modify tariffs January 4, 2017 Installations Complete Summer 2019 Sep 28, 2016 & Dec 13, 2017 Informal workshops were held March 23, 2017 Advice No. 17- 001 was approved. July 30, 2018 202,787 meters installed (~35%) 1,538 opt-outs .76% of installed meters; .26% of all meters

Smart meter benefits Benefits to customers Access detailed information about daily energy consumption Remote reconnect and disconnect Faster, more efficient outage restoration Ability to project future bill amount Text or email alerts to customers who establish a bill threshold Empowering customers identify ways to reduce power use Reduction in vehicle emissions Safer environment for our employees Newer technology incorporates lessons learned from first generation Established ANSI standards, FCC guidelines, and UL testing Newer meters outperform standards Advancements in communication and data encryption Heat sensors to detect changes in temperature

Opting out Basis of Fees Benefits of Opt-Out Options Opt-out options recognize that not all customers want a smart meters Opt-out options are a common component of smart meter installations The opt-out option must be carefully balanced against the benefits of smart meters for all customers To prevent degradation of smart meter benefits, opt-out fees are cost-based and assessed to the customers electing to opt- out Basis of Fees Recover costs of two meter exchange fees: Recover the costs to remove a previously installed smart meter and install a nonstandard meter. Labor plus costs of nonstandard meter. $169. Recover the future cost to remove the nonstandard meter and install a smart meter. Labor only $137. Recover costs of monthly meter reading: Average time of like work and labor costs of employee reading meter. $36 per month.

Customer Communications INSTALLATION 30 - 45 days prior: Installation postcard 15 - 30 days prior: Letter 10 - 14 days prior: Phone call Upon installation: Door knock and door hanger 6 to 8 weeks after: 2nd postcard OPT-OUT Customer requests opt-out pre-deployment: Letter confirming election and fees 2nd letter reaffirming election during local deployment Customer declines smart meter on day of installation: Letter mailed confirming election and fees Note: Opt-out customers are not charged fees until the area is fully connected to the network or 6 to 8 weeks after installation. Customers are allowed to retain current meter as long as it operational.