Smart Grid Workforce Education Presentation Smart Grid – A Framework for Change Brad Gaskill, CEO - Poudre Valley REA May 29, 2009

Who is Poudre Valley REA, Inc. (PVREA)  Incorporated in A not-for profit rural electric cooperative serving 35,500 accounts in the Front Range.  2008:  Purchased 1,048,547,659 $64,473,005.  System Peak Demand in August - 192,976 kW.  Operating revenue of $85,437,375.  Operating Margins were $714,545.  Signed contract with Landis & Gyr for AMI project. The “Hybrid” AMI system will include Power Line Carrier (PLC) and Radio Frequency (RF) as a means of communication. Will start testing in July and deployment in Oct.

What is Smart Grid  Smart grid delivers electricity from suppliers to consumers using digital technology to save energy, reduce cost and increase reliability.  Modern Smart Grid functions must:  Motivate consumers to participate and save  Provide higher quality power that will save money wasted from outages  Accommodate generation and storage options  Enable electricity markets to flourish  Optimize capital assets while minimizing operations and maintenance costs

Why install a Smart Grid System Legislative Green power mandates Reliability requirements Security (Physical & IT) Employee regulations Technology Communications Information & web application Renewable Distributed Generation Energy Storage Market Aging infrastructure Changing customer base Customer demands Process improvement Customer growth Challenges facing electric utilities are driven by internal and external forces that may be grouped into one of three areas: legislative, technology and market. How and when these forces will impact electric utilities is unpredictable.

PVREA’s AMI Project:  Summer 2005 to summer 2007 PVREA internal committee and AMI vendors discussed/reviewed the various systems.  Fall 2007 to Fall 2008 utilized private consultant to review systems with PVREA committee.  Winter 2008: PVREA selected a Hybrid - Radio Frequency (RF) & Power Line Carrier (PLC) AMI System and began negotiations. Concluded winter 2008 and signed contract.  Winter 2008/Spring 2009: System design & planning.  Summer 2009: PLC system tests are scheduled begin in late June, and RF tests in Sept.  Deployment: PLC begins July and RF begins in October.

Workforce Requirements  PVREA will hire a contracting firm to install the equipment. This will employ 5 or 6 people for a period of 2 to 4 years.  After installation, PVREA will reassign the 5 Meter Readers and 2 Field Service Reps. to other duties within the Association. No layoffs!  In addition, we will need at least 1 new position for Data Management, 1 new position for Engineering/SCADA duties, 1 or 2 new positions for the new load control and member education programs. Future plans include 24 hour dispatch requiring additional new employees with various customer service and technical skills.  Recap: 5 or 6 positions during installation – up to 4 new positions and retain the current 7 employees.

Drivers and Benefits – Service & Cost  Cost Reduction: 1.High cost-to-read meters. (Access, safety, weather) 2.Faster meter reads for move in/out accounts 3.Remote Connect/Disconnect 4.Detection of meter tampering (lost revenue) 5.Load control options  Improved Customer Service: 1.Reduced estimated bills/high bill calls 2.Optional rates to promote efficiency 3.In-home displays of usage, energy conservation 4.On demand reads

Drivers & Benefits – Load Control reduced costs greater management control regulatory compliance improved customer service and satisfaction Smart grid networks have the ability to revolutionize energy management and grid reliability across the globe Utility Benefits Consumer Benefits lower energy costs greater transparency reduced carbon footprint

AMI Beyond Meter Reading Improve Service to Customers  Fast on-demand reads = one-call resolution  Customer Service – Info.  Resolve bill issues  Power Quality  Real-time detection  Faster response  Rate Flexibility  Real time pricing  Time of Use optional rates Improve Utility Operations  Pinpoint outages  Send crew to correct location faster  Verify power restoration  Get all outages before leaving the area  Identify outages for seasonal accounts  Verify proper transformer loading, equipment operation  Reduce line losses

Summary  PVREA is committed to offering the best service to the member/owners.  PVREA is committed to full AMI deployment in the shortest time possible.  PVREA plans to move ahead aggressively with the installation of AMI for; meter reading, load control, energy use education, outage management and remote connects and disconnects for move-ins/move-outs.  5 or 6 positions during installation – up to 4 new positions and retain the current 7 employees.  PVREA sees the Smart Grid – AMI solutions as the next step in offering better services, more options, lower costs, and higher efficiency to our member/owners.