1 NAESB Data Privacy Task Force January 2011

2 Data Access and Privacy Access to customer usage information has national attention and implications ENERGY INDEPENDENCE AND SECURITY ACT OF 2007 (EISA) TITLE XIII—SMART GRID SEC STATE CONSIDERATION OF SMART GRID. All electricity purchasers shall be provided direct access, in written or electronic machine-readable form as appropriate, to information from their electricity provider WHITE HOUSE OFFICE OF SCIENCE AND TECHNOLOGY POLICY (OSTP) RFI – Consumer Interface with the Smart Grid February 2010 Department of Energy (DOE) Data Access and Privacy Issues Related to Smart Grid Technologies October 2010 SGIP Cyber Security Working Group NISTIR 7628 Guidelines for Smart Grid Cyber Security Vol. 2 Privacy and the Smart Grid August 2010

3 Data Access and Privacy - continued The Smart Grid potentially enables new parties access to additional customer information that could reveal things about their person, personal behavior, and personal communications The diversity of data access standards and regulatory rules throughout the nation presents a significant challenge to achieving interoperability and hinders the mass deployment of customer products.  Utilities are required to protect customer usage information under existing laws and regulatory rules  No rules currently apply to third parties who would offer customers energy services that utilize customer usage data  Third party access is being addressed jurisdiction-by-jurisdiction »Texas – PUCT Substantive Rules »California - Privacy Rules related to Third Party Access »Illinois - Statewide Smart Grid Collaborative »Ontario – Privacy by Design

4 Data Access and Privacy - continued The logical interface where customers and third parties are authorized to gain access to customer usage data Governs who is allowed access to customer usage data and what are the responsibilities for protection of customer privacy There are two facets to achieving interoperability with respect to access to customer usage data TechnicalPolicy Development of a standard interface is currently well under way SMT is an early interface enabling Third Party data access NAESB REQ.21 Energy Services Provider Interface (ESPI)  Currently under development with an expected completion by 2Q11  Requires adoption by state regulators for their distribution companies  Includes SGIP CSWG NISTIR 7628 security requirements to protect the data at rest and in transit  Uses NAESB Energy Usage Information standard No standard best practices for third party access to customer usage data currently exists State PUCs will address third party access in lengthy projects and rulemakings

5 NAESB Data Privacy Task Force A new NAESB task force has been formed to achieve interoperability with respect to third party access to customer usage data, including privacy protection NAESB Data Privacy Task Force Co-Lead:Christine Wright – PUCT Co-Lead:Robin Lunt – NARUC Timeline:Expected completion by 2Q11 Kick-off Meeting:February 16, 2011 at the NARUC meeting in Washington, DCNARUC meeting 1pm to 4 pm EST Web access will be provided Meetings:Bi-weekly TBD at the kick-off meeting Distribution list:Contact Jonathan Booe at NAESB Documents:located at NAESB Retail Electric Quadrant (REQ) Committees, Subcommittees and TF REQ Executive Committee

6 Source Documents 1. NISTIR 7628 Guidelines for Smart Grid Cyber Security, Vol. 2 Privacy and the Smart Grid NISTIR 7628 Guidelines for Smart Grid Cyber Security, Vol. 2 Privacy and the Smart Grid 2. DOE Data Access and Privacy Issues Related to Smart Grid Technologies DOE Data Access and Privacy Issues Related to Smart Grid Technologies 3. Illinois Statewide Smart Grid Collaborative Report Illinois Statewide Smart Grid Collaborative Report 4. Ontario Privacy by Design; Achieving the Gold Standard in Data Protection for the Smart Grid Ontario Privacy by Design; Achieving the Gold Standard in Data Protection for the Smart Grid 5. CPUC Privacy Rules related to Third Party Access to usage data and prices CPUC Privacy Rules related to Third Party Access to usage data and prices 6. National Research Institute: Smart Grid Data: Must there be Conflict Between Energy Management and Consumer Privacy? National Research Institute: Smart Grid Data: Must there be Conflict Between Energy Management and Consumer Privacy? 7. Department of Commerce Internet Policy Task Force: Commercial Data Privacy and Innovation in the Internet Economy: A Dynamic Policy Framework Department of Commerce Internet Policy Task Force: Commercial Data Privacy and Innovation in the Internet Economy: A Dynamic Policy Framework