The Secrets to Successful AMI Deployment – The Ontario Experience Paul Murphy, President & CEO Independent Electricity System Operator February 19, 2007

Ontario at a Glance (year-end 2006) Installed Capacity30,000 MW Record Summer Peak27,000 MW (August 1, 2006) Record Winter Peak25,000 MW (December 20, 2004) Total Annual Energy Consumed 151 TWh Customers4.5 million Ontario Import Capability4,000 MW Transmission Lines30,000 km (18,600 miles)

$$ BillingPayments Dispatch Offers/ Schedules Bids The Ontario Electricity Market Suppliers Generators ~30 Wholesale Sellers ~20 Consumers Local Distribution Companies ~90 Wholesale Consumers ~90 Retailers 9 active Transmitters 5 Tariffs$ Contracted/Regulated Prices $

Ontario’s Smart Meter Initiative 4.5 million smart meters to be installed in total –800,000 smart meters to be installed by end of 2007; remaining by 2010 –Almost 400,000 installed to date Total investment of $1 billion (CAN) Cost recovery through distribution rate base

The Smart Metering System  Advanced Metering Infrastructure (AMI) Control Computer Regional Collector Local Area Network Meters    Communications Device Wide Area Network Meter Data Management/ Repository Functions (MDM/R) Wide Area Network Customer Information & Billing Systems LDCs, Retailers and other Billing Agents Monitors and Displays

Customer Benefits

Current Time of Use Rates Summer WeekdaysWeekends and Holidays Winter Weekdays On-Peak 9.7 cents per kWh Mid-Peak 7.1 cents per kWh Off-Peak 3.4 cents per kWh

Load Duration Curve – 2006 Load Duration Curve Percent of Hours 20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 28, MW Ontario Demand 125 (1.4%) hours – Average Price 11.9¢/kWh 58 (0.7%) hours – Average Price 14.3¢/kWh 32 (0.4%) hours – Average Price 15.0¢/kWh

Focus on the Customer

The Secrets to Successful AMI Deployment – The Ontario Experience Paul Murphy, President & CEO Independent Electricity System Operator February 19, 2007