1 “Communications Trends in Utility Automation/IT ( )” Presented by Ed Finamore, PE Practice Manager & Senior Research Analyst InfoNetrix LLC Pittsburgh, PA Tactical Perspective

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 2 Presentation Contents Introduction Today’s Utility Real-Time Communications Situation Market Data Quick Analysis Future Outlook

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 3 Introduction Real-Time communications used to be practically an after-thought in planning and implementing real-time systems  Assign an engineer  Include it in the SCADA RFP  Make sure it works (most of the time) Why has this changed?

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 4 Today’s Utility Real-Time Communications Situation Electric Utilities  T&D Operations Becoming more information intensive Have increasing needs for reliable communications Need more bandwidth  Installed Base Large numbers of leased-lines remain (although more are moving away from leased-lines every year)  Primary Application Areas SCADA/DMS/DA: Remote, often with difficult communications requirements Substation Automation: Typically “inside the fence” but often with its own set of special requirements

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 5 Today’s Utility Real-Time Communications Situation Water/Wastewater Utilities  Plant Operations EPA reporting requirements increasing (more data, more often) Have increasing needs for reliable communications Need more bandwidth  Installed Base Large numbers of leased-lines remain (although more are moving away from leased-lines every year) High and increasing concentration of LANs in plants  Primary Application Areas Process Plants: Good communications environment with high- quality media is typical Pumping & Lift Stations: More diverse, less sophisticated communications media with less rigorous data requirements

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 6 Market Data Quick Analysis InfoNetrix Project Activity Surveys  Conducted quarterly on a year-round basis  Address electric and water/wastewater market sectors Electric: IOUs, Munis, RECs & FSDs Water/Wastewater: Public & Private Systems  utilities surveyed annually in each market sector  Average surveys per calendar quarter  Reports on existing and planned projects include: Real-Time Automation & Controls (RTAC) Geospatial & Field Automation Solutions (GFAS) Intelligent Electronic Devices & Solutions (IEDS)  Separate programs for each market & business segment

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 7 Market Data Quick Analysis Electric Utility Market Data Summary, Q  287 Utility Interviews Completed  Analysts ask questions about communications media and protocol  First quarter for tracking Use and Planned Use of Ethernet (results are preliminary) 9 utilities currently using Ethernet 3939 utilities planning to use Ethernet  DNP is clearly the de facto standard 46% in use among existing systems 62% planned use in planned systems

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 8 Electric Utility Media Preferences Other includes hardwire, satellite, Microwave, and frame relay Percentage of Responses

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 9 Electric Utility Protocols Other includes Modbus, Modbus Plus, Proprietary protocols, etc. Percentage of Responses

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 10 Market Data & Analysis Water/Wastewater Market Data Summary, Q  214 Utility Interviews  Analysts ask questions about communications media and protocol  Protocol information is limited in this market, but Modbus is the most prevalent standard

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 11 Water/Wastewater Communications Media, By % of Responses Other includes hardwire, satellite, Microwave, and frame relay

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 12 Market Data & Analysis Supplier Snap-Shot  MDS is the “800-lb. Gorilla”  Upstarts/Challengers Fiber Optic Networks Increased Use of Ethernet Spread-Spectrum vs. Licensed Radio

© 2004 InfoNetrix LLC All Rights ReservedUnauthorized reproduction or distribution of this document is expressly prohibited. 13 Future Outlook Ethernet: A standard or THE standard?  Early data indicates that this is a real possibility within the next 3-5 years Key Driver: Increased data needs for asset management and improved “bottom line” management of utility networks  Utility management looking to manage networks as a BUSINESS; not merely a technical “function”  Will result in more attention, focus, and investment in improving system performance reliability and availability of network information Will real-time communications become the domain of the IT Department?  If IT is managing all of the other corporate networks, this begs the question: “Why not real-time communication networks too  Turf battles are emerging with telecommunications departments

14 Our Guest Speaker today is Dr. Tim Shaw. Tim’s topic today is… “Moving from ‘Real-time’ to ‘Real-world’ in Utility Automation/IT” FocusPoints™ InfoNetrix Advisory Services FocusPoints™ Online Market Briefing