Building A Smarter Grid Through Distribution Automation DOE Projects OE & OE April 2013 Copyright © 2012 Consolidated Edison Company of New York, Inc.

Agenda Con Edison System Overview & Smart Grid Strategy Smart Grid Investment Grant Overview Smart Grid Demonstration Project Overview 2

Con Edison Service Area 3.3 million electric customers 1.1 million gas customers 1,760 steam customers Delivers 40% of NYS electric peak consumption Area: 604 sq mi Peak Demand: 13,189 MW Load Density: 21.8 MW/sq mi UG network distribution: 86% N-2 design Area: 47,214 sq mi Peak Demand: 33,939 MW Load Density: 0.72 MW/sq mi 3

Con Edison Electric Distribution System Generating Station (electricity generated at 13.8 to 22.0 kV) Transmission Substation Area Substation (voltage stepped down to distribution voltage) Transformers (voltage stepped down to 480, 208, or 120 V) Feeders Connection to Others 64 Network Systems Supply 86% of System Demand Overhead System Supplies 14% of System Demand 4

The World’s Largest Underground Electric System 94,000 miles of UG cable – Primary: 22,000 miles – Secondary: 72,000 miles 26,400 network transformers 5

Overall Con Edison Smart Grid Benefits Sustain unparalleled reliability Meet demand growth while reducing need for massive infrastructure expansion Increase asset utilization Reduce Capital and O&M Expenditures Enable targeted curtailment Increase customer engagement 6

Con Edison Smart Grid Strategy Expand T&D Smart Grid technology with proven benefits – DOE Stimulus Smart Grid Investment Grant Projects – $280 million Continue to develop / demonstrate emerging Smart Grid technologies with less certain benefits – Comprehensive Smart Grid pilot in Queens - $6 million – DOE Stimulus Smart Grid Demonstration Projects - $111 million Distribution Automation 82% 7

Progress Overview Cumulative investment through March $303 million – Smart Grid Investment Grants - $235 million – Smart Grid Demonstration Projects - $68 million DOE Reimbursement - $149 million – Smart Grid Investment Grants - $113 million current through January 2013 – Smart Grid Demonstration Projects - $36 million current through February

Con Edison SGIG Overview Smart Grid Investment Grant – $251 million for Smart Grid Deployment at Consolidated Edison Company of New York (CECONY) – $21 million for Smart Grid Deployment at Orange & Rockland Utilities (ORU) – Project Implementation: April April 2014* – Project Reporting: April 2010 – December 2015* * Rebaselined end dates 9

SGIG Project Investment 10 * Rebaselined budgets

11 Smart Grid Assets in Service Two underground autoloops and 30 UG switches in Flushing network Energized ~ 145 underground sectionalizing switches and ~ 400 overhead sectionalizing switches Initiated SCADA implementation on new cyber secure SCADA platform with 30 UG switches & 18 OH switches Increased system efficiency with 430 distribution capacitors Increased system monitoring with ~ 7700 PTO sensors and 6800 transmitters Remote monitoring and control of 38 network transformers in Staten Island Completed installation of all 14 Phasor Measurement Units (PMU) Streetlight Pole Top Router

Underground Smart Switches Risk Reduction for Distribution Network Installation of underground autoloop and underground wireless controlled switches Reduces severity and likelihood of a network event Increases flexibility during contingencies 23 Sub - Network B Sub - Network A Sub - Network C Substation

Underground Smart Switch 13 Directional Fault Indicators (3) Load Side (Feeder Cable) Indicator Window Open/Close Line Side Manual Block with Lock Provisions

Demonstration Project Interoperability of Smart Grid Resources 14

Smart Grid Customer Engagement Provide relief in emergencies – Demand Response Only 36 hours comprised the top 1200MW in 2011 Shave the Peak – Impact on capital spending – Impact on market prices

Con Edison Demonstration Project Con Edison Distribution System Status integrated with Customer Resources Targeted Demand Response from the following – Building Management System (BMS) – Controller Connected to Standby Diesel Generator – Controller Connected to Electric Vehicle Charger with Standby Battery and PV Generation – ThinkEco Modlets 16 Visualization Platform

Visualization - Demand Response Resources Curtailment capability sorted by network Link to network feeder map Snapshot of DR resource response capability in various time increments Total load curtailed and remaining to be curtailed 17 DR Resource Response Capability

Demonstration Project Visualization Platform – Current Capabilities Activate and track performance of project DR resources Utilize PVL & Wolf Decision Aid to make recommendations to mitigate overload conditions in the networks Area Substation one line display with aggregated DR and DG capability Provide automated event notification to DLRP/CSRP resources 18 Network Curtailment Capability

Building A Smarter Grid Through Distribution Automation DOE Projects OE & OE April 2013 Copyright © 2012 Consolidated Edison Company of New York, Inc.