© Copyright 2007, Southern California Edison Edison SmartConnect ™ UCA/UtilityAMI OpenHAN Task Force May 10, 2007 © Copyright 2007, Southern California Edison

SCE Edison SmartConnect ™ Program Objectives Empower customers to manage their energy costs and provide new services through smart technology –Create lasting customer value through cost-effective advanced metering technology solutions –Design to support Federal and State Energy Policy Objectives Create 1,000 MW of new peak demand response –Support SCE’s strategy of modernizing our infrastructure with smart technologies toward an intelligent grid

© Copyright 2007, Southern California Edison Smart Connections with our Customers 2007 Smart Grid Outstanding Leadership Award Gridweek 2007 Customer Experience Circuit of the Future SAP Smart Metering Empowered Customer Experience EE and DR are critical to meeting our energy needs in an environmentally friendly way. To meet the needs of our customers, meet environmental goals and manage the grid efficiently and effectively we need to do even more - smart meters are a key component

© Copyright 2007, Southern California Edison Technology Overview  Replace meters on SCE’s 5 million small commercial and residential customers (<200kW) Electronic meters with 200A integrated service switch, home network gateway, outage detection, voltage measurement, theft/tamper detection & remote upgradability Robust & secure two-way RF telecom network New meter data management system and interface to SAP, Outage Mgmt, Load Control, Load Forecasting & Wholesale Settlement  Technology Procurement in Process  Deployment Cost Estimate $1.2 billion in deployment capital

© Copyright 2007, Southern California Edison Top 10 Reasons for HAN in SCE’s Meter 1.Five million potential connections to enable energy innovation for customers 2.Enable near real-time energy data access to customers with no incremental cost 3.Smart communicating thermostats, In-home energy displays for those without internet access, Plug-in Hybrid & Solar sub-metering 4.Its cost effective based on initial limited use 5.Societal option value dwarfs potential stranded technology risk 6.Viable open standards based protocols exist 7.Effective long-term technology compatibility mitigation strategies – “wall warts” anyone? 8.Effective security and network management techniques available 9.We are in the 21 st century – its now or at least Incremental HAN in meter cost is <2% of program capital costs - we spend more on postage to our customers in 3 months

© Copyright 2007, Southern California Edison System Requirements Architectural Requirements –Meter must be capable of implementing premise interface function –Must be capable of utilizing external customer owned gateways –Must coexist with consumer side technologies –Must be deterministic – e.g. functional assurance –Must isolate the consumer network from utility network –Must be cost effective (supports the business case) General Interface Requirements –Must support demand response and load control use cases –Must support basic principles of being standards based and open –Must be capable of evolving with technology change –Must support application level information models –Must support security policy

© Copyright 2007, Southern California Edison Interface Technologies Evaluated WiFi –Standards based, multi-channel, widespread application, industry association –Complex configuration, no inherent mesh/range extension –Transport only – no application layer application models ZWave –Mesh network, robust, products available, industry association –Proprietary, single frequency ( MHz), no agility mechanism –No well defined information models – work in progress ZigBee –Mesh network, robust, products available, industry association –Standards based, multi-channel, interference mitigation –No well defined information models – work in progress HomePlug PLC –Simple, robust, products exist, industry association –Proprietary power line carrier based –Transport only – no application layer application models –Cannot reach thermostat without a gateway Echelon Lonworks –Robust, products exist primarily in commercial building automation –Proprietary power line carrier based –Cannot reach thermostat without a gateway Wireless Power line carrier

© Copyright 2007, Southern California Edison Utility/Consumer Interface Architectures Considered Meter as sole gateway to HAN –Support use cases –Lowest cost, meets business case –Can be implemented over 4 years ubiquitously to all 5 million customers –Seen as starting point for eventual shift to customer gateway controlled HAN Meter as interface to in-home gateway (with protocol converter as needed) –Supports use case –Higher cost, may require customer knowledge / configuration –Seen as eventual end state over life of system Third party gateway(s) only to load control devices –Slow market adoption – could take 10 years to reach 70% market penetration like internet –Does not support near-real time access to energy data from meter at no incremental cost to customer –Security, network management, QOS more challenging –If challenges met, compatible with overall architecture –Avoids meter interface technology obsolescence

© Copyright 2007, Southern California Edison Scenario A: Meter as Gateway Utility Owned Consumer Owned Private Fixed Networks WAN/LAN Meter 2-way T24 PCT RDS/FM or pager broadcast (disabled when utility network operational) 1-way Appliance Sub-meter Display Devices 1.e.g., b, proven mesh LAN protocol, etc. 2-way interval energy time billing start time peak power messages acknowledgements price signals reliability signals RF-TX 1 Third-Party Provider

© Copyright 2007, Southern California Edison Scenario B: Evolution to Multiple Gateway Model Utility Owned Consumer Owned Private Fixed Networks WAN/LAN Any interval meter or pole-top collector PSTN/DSL/Cable/Satellite WAN/LAN 2-way Any gateway (protocol xfr) Special box Internet modem Router Media PC Security panel …….. HAN Protocols ³ Zigbee Z-wave Insteon Wi-Fi EIA709 HomePlug Bluetooth 2-way T24 PCT RDS/FM or pager broadcast 1-way 2-way HAN access using expansion port Sub-meter Appliances Display Devices 1.e.g., b, proven mesh LAN protocol, etc. 2.To be determined 3.Up to 45 active protocols worldwide Broadband TV, music 2-way interval energy time billing start time peak power messages acknowledgements price signals reliability signals RF-TX 1 PLC-TX ² and/or Third-Party Provider 2-way Ron Hofmann 2-way

© Copyright 2007, Southern California Edison Scenario C: 3rd Party Communication Channel/Gateways Only Utility Owned Consumer Owned Private Fixed Networks 2 WAN/LAN Any interval meter PSTN/DSL/Cable/Satellite WAN/LAN 2-way Any gateway (protocol xfr) Special box Internet modem Router Media PC Security panel …….. HAN Protocols ³ Zigbee Z-wave Insteon Wi-Fi EIA709 HomePlug Bluetooth 2-way T24 PCT RDS/FM or pager broadcast 1-way 2-way HAN access using expansion port Other Appliances Display Devices 1.Utility information to/from utility network 2.Up to 45 active protocols worldwide Broadband TV, music 2-way interval energy time billing start time peak power messages acknowledgements price signals reliability signals Third-Party Provider Ron Hofmann SCE.com

© Copyright 2007, Southern California Edison Conceptual HAN Roles Viable Strategies Exist to Enable Innovation for Customer Choice and Near Term Demand Response