© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 1 The following content applies to this page only Presenter Name: 12pt Arial Bold, black Presenter Title: 12pt Arial Italic, black Company Name: 12pt Arial Regular, black Location Name: 12pt Arial Regular, black Date: 12pt Arial Regular, black Background Image and Itron Logo can not be altered APPA Uses, Costs, and Implementation of AMR/AMI Sharelynn Moore Product Line Manager, Energy Solutions September 24, 2007

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 2 Topics of Discussion  Discuss Market & Business Drivers (Uses)  Evaluation of AMR and AMI  Review of what is being done today  Key Concepts & Summary

Presentation Subtitle Style 20pt Arial Regular White Maximum number of lines: 3 Presentation Title Style 28pt Arial Bold Black Maximum number of lines: 1 Copyright Style 6pt Arial Regular Black © 2005, Itron Inc. The Globe graphic, Energy Market Segment descriptor and Itron logo are integrated into the background and can not be modified, moved, added to, or altered in any way. Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Template release: October 2005 For the latest, go to my.itron.com Market & Business Drivers Traditional and Emerging Drivers

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 4 Traditional AMR & Metering Market Drivers  Primarily driven by Revenue Management & Customer Service >Meter Reading Cost & Efficiency - Cost per read Increased read rates Hard to access Reduced Call Center activity Safety concerns Door Key management >Revenue Cycle Improvement - Meter to Cash Reduced read to bill window –Same Day Billing Increased reading & billing accuracy –Reduced manual data entry –Electromechanical to solid state metering Reduced estimates Reduced rebilling and adjustments

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 5 Traditional AMR & Metering Market Drivers  Secondary Market Drivers Have Included (Most require FN) >Deregulation (Daily settlement) PECO Duquesne United Illuminating >Operational Improvements Off Cycle Reads –Turn on / Turn off –Read On Request Forecasting Accuracy Potential Asset Value Improvements >Outage Management >Revenue Protection / Theft Detection >New Products & Services Consolidated Billing Selectable Billing Cycles Energy Efficiency Reading for other Utilities

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 6 Emerging Drivers  Supply Concerns: Shifting generation strategies >Expiring Supply Contracts Transition structures and associated rate caps lapsing >Demand Response: Peak load reduction At both the residential and C&I levels >Net Metering: Increased interest in distributed generation >Conservation: Establishment of a “culture of conservation” (Ontario) Heightened awareness of renewable generation  Reliability: Highly visible and politically sensitive >Delivery Constraints – Location Marginalized Pricing (LMP) >Asset Management – Underinvested through deregulation activities >Smart Grids: Intelligent Grids to the meter level  Public Policy: Still with no clear direction >Energy Bill: True impact to be determined at the state level. >Smart Metering: California, Ontario, Texas, New York >Time Based Rates: Directly linking price to generation cost

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 7 Emerging Drivers  Security: Heightened awareness and requirements >Reduced or complicated site access >Increased internal security requirements  M&A Strategies: Automation key to achieving financial results >National Grid >Progress Energy  Increasing Uncollectible Revenues: With Decreasing Rate Recovery >Remote Disconnect >Load Limiters >Prepayment  Deregulation: Multiple energy market players require access to the consumption data for forecasting, scheduling and settlement >System Operators (ISO/RTO) / Choice of Energy Supplier >Day Ahead Markets / Location Marginalized Pricing  Meter Data Management: Beginning to be seen as a key strategic resource >Sarbanes Oxley – Consistency of data and business rules >CapEx Planning – Complicated by multi-jurisdictional asset >Emerging as an enterprise requirement – Fundamental to deliver emerging drivers

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 8 Definitions  Automated Meter Reading (“AMR”) – mobile & fixed Automating the current meter data collection process to achieve higher levels of accuracy and efficiency while reducing operational costs >Does not dramatically change what “it” is that we do Provides a means for utilities to do “it” better >Primarily provides a monthly read to support existing rates Consumption, TOU, Demand Some support for Daily Reading for deregulation Interval data available with storage within the “Smart” Network >Non-deterministic outage reporting  Advanced Metering Infrastructure (“AMI”) An infrastructure that fully integrates Smart Metering, Demand Response and (potentially) an Intelligent Grid into a single systems architecture >“Smart Meter” vs. “Smart Network” >Focuses on utility side for savings AND customer action for conservation >Designed with two-way, fully addressable end points

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 9 Definitions  Meter Data Management (“MDM”) A meter data repository applying the same business rules across the enterprise to deliver consistent information >A single “head end” for various AMR/AMI data collection engines >Consistent validation, estimation and editing rules >Moving meter data to an enterprise resource  Smart Meter (Also know as an “Advanced” meter) An “intelligent”, communicating meter which locally stores and calculates complex consumption data >Capable of storing and displaying time differentiated rates >Built in communications  Demand Response Providing consumers the information and tools to respond to price signals >Load Curtailment via traditional demand side management programs >Critical Peak Pricing to both C&I and Residential customers >Smart Thermostats and in-home displays to provide energy management >Same Day and Day Ahead Market support

Presentation Subtitle Style 20pt Arial Regular White Maximum number of lines: 3 Presentation Title Style 28pt Arial Bold Black Maximum number of lines: 1 Copyright Style 6pt Arial Regular Black © 2005, Itron Inc. The Globe graphic, Energy Market Segment descriptor and Itron logo are integrated into the background and can not be modified, moved, added to, or altered in any way. Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Template release: October 2005 For the latest, go to my.itron.com Evaluation of AMR and AMI What is the difference?

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 11 Differences between AMR/AMI  Why does anybody care about the differences?  AMR as we’ve known it  Origin and definitions of AMI  Comparing AMR and AMI There isn’t a definitive answer – but maybe there are some useful differences

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 12 Why Do We Care About the Differences?  Lots of hype about AMI but a lack of clarity about how it differs from AMR  Truth in advertising  Tendency by some to equate “AMR” with “old” and “AMI” with “new”  Important to define based on desired capability, not a simple label

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 13 AMR As We’ve Known it  Consisted of handhelds, mobile and “fixed networks” >Fixed networks one- or one-and-a-half way  Increasing cost continuum; presumably increasing functionality  All depended on traditional business drivers >Meter reading efficiencies, billing enhancements, reading flexibility, theft and tamper

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 14 AMR As We’ve Known it, cont. Source: “The Scott Report: AMR Deployments in North America,” 2005 and 4 th Quarter 2006

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 15 AMR As We’ve Known it, cont.  About three years ago, momentum started to gather for greater functionality in fixed networks: Outage notification and restoration Innovative rates (TOU, CPP) On-demand reads Remote connect / disconnect Revenue assurance Presentation to end users

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 16 “Fixed Networks” V. Mobile AMR Source: Howard Scott, Cognyst Consulting, July, 2006

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 17 “Traditional” AMR Benefits (Includes Fixed Networks)  Mostly operational savings: >Reduces labor costs >Eliminate manual data entry errors >Eliminate missed reads and repeat meter reader visits >Move-in, move-out reads (on demand reads) >Improves billing accuracy >Eliminates estimated meter reads >Improves employee safety >Reduces customer complaints >Improves management of delinquent accounts >Accelerates cash flow based on monthly billing >Decreased outage response times >Better detection of theft, outage, and leaks >Can bring back TOU reads

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 18 What is AMI?  “Advanced Metering AMR” used in 2003 Frost and Sullivan report  California used “Advanced Metering Infrastructure” when considering time-based rates in 2004  AMI = “smart metering” = “advanced metering?”

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 19 What is AMI?, cont. FERC says, “... a metering system that records customer consumption hourly or more frequently and that provides for daily or more frequent transmittal of measurements over a communication network to a central point.” It refers to “... the full measurement and collection system, and includes customer meters, communication networks and data management systems.” Less than 6% market penetration in the U.S. What is it, anyway? What’s real? What’s it mean?

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 20 What is AMI?, cont.  IDC Energy Insights: >“A subset of AMR with three main characteristics: Solid-state or computerized meters that collect time-series (interval) energy use data, programmable to support features like TOU rates Two-way communication between meters and utility Able to support applications beyond meter reading, such as demand response programs”  Gartner, Inc. >“... A composite technology made of several elements: consumption meters, a two-way communication channel and a data respository (meter data management).”

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 21 AMR v. AMI Side-By-Side Comparison FunctionalityAMRAMI CommunicationOne way or one-and-a-half wayFull 2 way Read FrequencyMonthly (mobile); daily (FN)Daily to hourly Interval data and load profilingNone (mobile) to hourly (FN)Hourly to 15 minute On-demand readsOOR (mobile); lag time of mmmm minutes (FN) Yes; lag time of sss seconds Outage notification and restorationInferred or “last gasp”Positive notification and restoration Demand resetNoYes Support for time-based ratesTOUCPP-F, CPP-V, RT Revenue assuranceBasicEnhanced Disconnect and load limitingVirtual disconnect“Hard” c/dc +load limits Net metering200 kw and aboveAll customers Monitoring of meter quantitiesOnly C&IAll customers Remote device configurationLimited parametersUpgradeable firmware Prepay meteringNoYes, but not typical in U.S. HAN connectivityNoYes, plus presentment Meter data managementNoYes

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 22 Cost Comparisons (per endpoint) CategoryMobileAMR Fixed Network AMI All in costs$1 - $2 per meter$5 - $20 per meter $60 - $90 per meter

Presentation Subtitle Style 20pt Arial Regular White Maximum number of lines: 3 Presentation Title Style 28pt Arial Bold Black Maximum number of lines: 1 Copyright Style 6pt Arial Regular Black © 2005, Itron Inc. The Globe graphic, Energy Market Segment descriptor and Itron logo are integrated into the background and can not be modified, moved, added to, or altered in any way. Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Template release: October 2005 For the latest, go to my.itron.com What is being done today? AMI Activity

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 24 Current AMI Market Potential Over 30 million points represented; 20 million are “serious”

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 25 Why AMI ?  Key Emerging Drivers >Energy Supply - Not enough in the right places >Reliability  Resulting Public Policy >Energy Policy Act (“EPACT”) Net Metering (Section 1251) Smart Metering (Section 1252) Time Based Rates (Section 1252) Demand Response (Section 1252) Electric Transmission and Distribution Programs (Section 925) Daylight Savings Time Change (Section 110) Technology Advancement Collaborative (Section 127) Consumer Education Programs (Section 132)

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 26 California – Does this model apply in other markets?  June 2002: The CPUC issued its Order Instituting Rulemaking (OIR) on advanced metering, demand response, and dynamic pricing (all combined = AMI). >Goal of OIR is to determine whether the use of AMR and Demand Response can help the state avoid another energy crisis.  A Statewide Pricing Pilot (SPP) was implemented by the three IOUs (SCE, SDG&E, and PG&E) in the summers of The pilot consisted of 2500 electric meters statewide, divided into 25 groups of differing customer “treatments”, 100 customers per group. >PG&E piloted 1000 points, SCE tested 1000 points and SDG&E 500 customers. The various treatments included Load Profile (LP) information only, LP info and TOU rates, LP info and Critical Peak Pricing (CPP) rates, LP info with load control and CPP rates, etc. >For the most part, the SPP proved that a decent level of customer price elasticity exists. The debate continues about the magnitude and sustainability of the load reductions elicited, and the value ($/kW).  December 15, 2004: “Preliminary” AMI business cases from each of the three IOUs were filed. >Seventeen different business case “scenarios” (ranging from total saturated AMR, to surgical/partial deployments, to load control only) were evaluated and submitted by each utility. The state’s AMI requirement is for hourly interval data on mass mkt, and 15-min interval data on C&I customers.  March, 2005: Official AMI business cases (aka “applications”) were filed by each of the utilities. >PG&E’s and SDG&E’s recommending full deployment, while SCE’s recommended development of new Advanced Integrated Meter (AIM for AMI). The AMI applications of the utilities have since been separated into three different regulatory proceedings, each with unique schedules.

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 27 Ontario – A “Culture of Conservation”  Not enough Energy Supply: >Have not built a power plant since early 1980s >Theoretical generating capacity of 26,000 megawatts >Practical generating capacity of 21,000 megawatts >Summer peak 26,000 megawatts, winter peak 25,000 megawatts  Election spring of 2008: >Rolling brownouts summer of 2005, very close to blackout If they have BO during the election period they will not be re-elected  Bill 100 & Bill 21: >Introduction of Flexible TOU pricing >Targeted reduction in Energy Consumption by 2007 >Commitment to Install 800,000 in 2007 and in every home by 2010 (5M)

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 28 So Just What is Being Done Today?  Views of Energy Bill vary significantly by region depending on: >Generation and delivery capacity relative to demand >Reliability of regional transmission grid  Approaches vary by state >New York: embraces advanced metering for Time Differentiated Rates ordered Time Of Use (“TOU”) rates to “largest” C&I at each utility >New Jersey: emphasizes load control through addressable thermostats  State Commissioners and Staff are devoting time and energy to implementing the new rulings >Texas: PUC commission hosted a workshop on Sept. 16 for developing a rule on advanced metering and demand response, in accordance with recent state law regarding advanced metering >Oregon: Holding a series of presentations about AMI technology and the demand response capabilities of smart meter >New York: Calling for “Automation Plans” in the next 6 months

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 29 Many States Already Pursuing Demand Response  Nearly half of all U.S. states are implementing or piloting technology for demand response and advanced metering %Load Change NY Capital Region = -3.2% Results in -20.1% LMP

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 30 Key Questions  What is/should be your generation/supply approach? >Wholesale Market Design? >Retail Mass Market Reality?  To what extent will functionality and technology be defined and compensated by the Regulator? >Low Cost: Driven by Operations Savings >High Function: “Smart” meter / preparing for the future  Will Time Based Rates and Demand Response be: >Mandated / Opt Out? >Voluntary / Opt In? Anticipated penetration rates?  What is / will be your approach to reliability and asset management? >Where do you see constraints / challenges around delivery congestion >To what extent do you subscribe to the concept of an intelligent / smart distribution grid?

Presentation Subtitle Style 20pt Arial Regular White Maximum number of lines: 3 Presentation Title Style 28pt Arial Bold Black Maximum number of lines: 1 Copyright Style 6pt Arial Regular Black © 2005, Itron Inc. The Globe graphic, Energy Market Segment descriptor and Itron logo are integrated into the background and can not be modified, moved, added to, or altered in any way. Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Template release: October 2005 For the latest, go to my.itron.com Key Concepts & Summarization In closing

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 32 Key Concepts  The cost of traditional AMR solutions continues to come down while functionality continues to incrementally improve  The delta between mobile and fixed solutions continues to close >The cost reduction of FN is accelerating faster then the more mature mobile solutions  Likely two distinct markets going forward (AMR/AMI) >Sometimes they may exist within the same utility  AMI depends on operational savings for much of its economics, just like AMR. >Additional cost for AMI has to be justified by added benefits like demand response and remote connect/disconnect.  AMI is a public policy issue >That means we must partner with our customers to command mindshare and formulate aligned concepts

© 2005, Itron Inc. The Itron logo is integrated into the background and can not be modified, moved, added to, or altered in any way. Slide Heading Style 24pt Arial Regular Red - R192 | G0 | B0 Maximum number of lines: 1 Template release: October 2005 For the latest, go to my.itron.com Indications in green = Live content Indications in white = Edit in master Indications in blue = Locked elements Slide Body Text Style 18pt Arial Regular Black Bullet Style 14pt Arial Regular Red - R192 | G0 | B0 Maximum number of bullet indents: 4 Copyright Style 6pt Arial Regular Black Page Number Style 6pt Arial Regular Black 33 To know more, start here: Thank You. The following content applies to this page only URL tagline: 12pt Arial Bold Italic, black Thank you: 40pt Arial Bold, black Background Image and Itron Logo can not be altered