1. NH Grid Mod WG: Customer Engagement & Financial Remuneration Mtg. #3: June 24, 2016

2. Fall Dates September 21– Dept. Insurance Room 274 October 18—PUC Hearing Room A November 29--PUC Hearing Room A December 20--PUC Hearing Room A January TBD 2

3. Customer Engagement With Distributed Energy Resources 1.Customer Data 2.Rate Design 3.Advanced Metering Functionality 4.Customer Education 3

4. Customer Data Presentations by NHSEA and Direct Energy Discussion Questions: What are the systems and technologies needed for generating, communicating, providing customer data? Who will provide customer data and to whom? What are the challenges or obstacles to providing customer data? 4

5. Rate Design Review Rate Design/Incentivizing DERs HW Review Rate Design Table and Principles How well do different types of rate designs meet these principles? 5

6. Rate Design: TVR Should the electric utilities offer time-varying rates for generation services, through default service offerings? If so, how? Should the electric utilities offer time-varying rates for distribution and/or transmission services? If so, how? What role should competitive electric power suppliers play in offering customers time-varying rates? What are the barriers to doing so? 6

7. Advanced Metering Functionality (and TVR) What type of meter functionality is necessary to support TVR? Table 2 presents a summary of the metering functionality that each utility now has in place. What additional metering functionality would be required to support time-varying rates? Could such functionality be obtained by retrofitting existing meters? If so, how? Given the meters in place today, are the utilities able to offer time-varying rates to all customers? Can the utilities offer TVR without new meters? For example, using some other technology? 7

8. Advanced Metering Functionality (and TVR) Are the utilities able to offer time-varying rates by providing metering functionality to a subset of customers who express interest and adopt DER technology? If so, how? Over what time frame do the utilities expect to be able to have the functionality to offer customers time-varying rates? What are the steps required to implement this functionality 8

9. 9 Current Metering Functionalities Eversource* AMR & remotely read metersManually read meters LibertyUnitil ResidentialC&IResidentialC&I a. Drive-by meter reading 40,254All AMI487,71677,56300 b. Time-of-use register 1178All4001345 c. Reading of interval data 358 2170, currently expanding capabilities 12341121,815 d. Daily reading at the Company’s office 8All123400 e. On-demand / real-time meter reading 8All123400 f. Communication to meter from the Company 0All0000 g. Communication from meter to customer end-use equipment 0 None, but system capable 08161,537 h. Remote switch for service connection / disconnection. 0 451, but system capable 11,7991,01100 i. Power quality reading 0 1903, but system capable 0000 j. Outage identification and restoration notification 0All0000 k. Planning data (snap-shot demand and system reads). 0All0000 *Eversource also has 1,927 interval recording meters that are read manually (via probe) and not classified as either AMR or remotely read.

10. Customer Education What types of customer education will be needed to support grid modernization activities and promote customer engagement? Who should be responsible for providing each of these types of education (utility, 3 rd party, PUC, other)? How much will such enhanced customer engagement likely cost, and will the benefits exceed the costs? 10

11. Planning for Meeting #4 Customer Engagement With DERs Preparation for next meeting? Utility Cost Recovery & Financial Incentives Preparation for next meeting? 11

12. Utility Cost Recovery and Financial Incentives To what extent does the existing ratemaking paradigm in NH (with its implicit financial incentives) promote or inhibit the development of (a) grid-facing grid modernization, and (b) customer-facing grid modernization? What role, if any, should there be for pre-approval of grid modernization investments, either grid-facing or customer- facing? Is there a need for some form of performance-based regulation in New Hampshire to support grid modernization? If so, what form should it take? Should there be a required period between rate cases and if so, what should the period be? Should there be a revenue relief mechanism for load loss, and how should it be designed? 12

13. Utility Cost Recovery and Financial Incentives (continued) Is there a need for performance incentive mechanisms in New Hampshire to support grid modernization? If so, what form should they take? What areas of performance should they apply to? What metrics should be used to measure those areas? What targets should the Commission set for those metrics Should there be a system of financial rewards or penalties regarding those targets? Is a revenue decoupling mechanism needed to remove potential disincentives to utilities to invest in grid modernization investments? 13

14. Next Steps Fall Dates (9/21; 10/20; 11/29; 12/20; January TBD) Agenda for September Customer Engagement (Develop Recommendations) Utility Cost Recovery and Financial Incentives (Education and Discussion) HW Assignments Goals Footnote language—Ellen/Camilo Customer Engagement Polling in July Recommendations in September Utility Cost Recovery and Financial Incentives RAP put together presentation Short reading Working Groups: IRP/Grid Mod—Legislative Fixes Data Sharing/Platform—Jim, Pat, Justin, Chris, Melissa, Todd 14