1. AMI/Smart Energy Pricing (SEP) Update
Mark Case - SVP Strategy & Regulatory Affairs
Mike Butts – Director Business Transformation
Wayne Harbaugh – VP Pricing & Regulatory Services
October 15, 2008

2. Agenda Regulatory Background AMI Pilot Update
Smart Energy Pricing (SEP)
Overview of Dynamic Peak Pricing (also known as Critical Peak Pricing) and Peak Time Rebate
Initial Impact Analysis
Timeline and next steps
DSM/AMI

3. AMI/SEP Program Regulatory History
On January 23, 2007, BGE first filed a proposal for AMI programs with the Maryland Public Service Commission
On April 13, 2007, the Commission conditionally accepted BGE’s proposed AMI pilot. The Commission’s approval was contingent upon “BGE developing and proposing a comprehensive pilot, inclusive of a viable critical peak pricing pilot component to gather statistically significant, measurable and meaningful information as to the potential positive effect of AMI on reducing peak system demand.”
On March 31, 2008, BGE filed with the Commission its Smart Energy Pricing pilot proposal pursuant to the April 13, 2007 order
The Commission approved the Smart Energy Pricing pilot on April 23, 2008
DSM/AMI

4. AMI Pilot Vendors
BGE initiated a competitive bid process and contracted with the following vendors to execute the AMI pilot project:
AMI Technology
Sensus
Aclara
Meter Data Management (MDM) System – Oracle (Lodestar)
Field Installation – VSI
Program Support Services – Accenture
Systems Integration – Accenture
DSM/AMI

5. AMI Pilot Technology Aclara Advantages
The AMI team selected Sensus and Aclara to participate in a dual vendor competition:
Aclara
RF 450 MHz Band
Licensed
Pole Mounted Collector to Multiple Meters
~1,500 Collectors
Advantages
Battery in every meter
Best outage reporting
Licensed frequency
450 MHz band provides best penetration
~1500 Collectors
450 MHz (LAN)
Wireless (WAN)
Head-End
DSM/AMI

6. AMI Pilot Technology Sensus Advantages RF 900 MHz Band Licensed
Tower to Multiple Meters
~90 Collectors (Towers)
Advantages
Few pole attachments
Good outage reporting
Good coverage footprint
Licensed frequency
Few takeout points (~90)
~90 Collectors
900 MHz (LAN)
Wireless (WAN)
Head-End
Single Hop Meter
Small Percentage
DSM/AMI

7. AMI Pilot Design
21157
21202
The AMI team designed the pilot to test the most varied and extreme conditions
Roughly 5,300 electric meters and gas modules
2 zip codes
2 vendors
Indoor and outdoor
Suburban and urban
Large buildings and high terrain
Basements
DSM/AMI

8. AMI Pilot Design The scope of the AMI pilot includes:
Installation of meters, collectors, head-end computers, meter data management system and integration to CIS test region for bill comparison
Testing of RFP requirements
Vendor evaluations
Business case development
The scope of the AMI pilot does not include:
Integration with production IT systems
Testing of ZigBee and HAN capability (vendor technology in this area will not be available until 2009)
DSM/AMI

9. AMI Pilot Current Status
The AMI Team has
completed the following
work to date:
Meter installations
Communications infrastructure installs
Head-End system installs
Meter Data Management System install
Integrations to transfer data from meter to MDM to CIS test region
Meter and Modules Installation Detail
Environment
Aclara
Sensus
Gas Inside
624
619
Gas Outside
590
664
Electric Inside
540
525
Electric Outside
657
1055
Total
2411
2863
Note: Fewer Aclara meters were installed than Sensus
meters due to a late delivery of Aclara material. However,
the Aclara sample population is still statistically valid.
DSM/AMI

10. AMI Pilot Current Status
By the end of the pilot, the AMI team will also achieve the following:
Performance testing to verify the dozens of RFP requirements. Key examples include:
Routinely receive 99.5% of interval reads within 3 days
Operate electric meter connect/disconnect switches
Perform on-demand reads
Monitor voltage
Remotely update firmware
Validated outage detection signals
Verification that AMI reads match meter register values
Verification that AMI bills match CIS production bills
Evaluation of network capability and reliability
Evaluation of vendors
Business case development
Final report to the PSC
DSM/AMI

11. Smart Energy Pricing (SEP) Pilot Overview
Obtained pre-pilot customer consumption Summer 2007
Pilot of over 1,300 residential customers in Summer 2008
Pilot included:
Dynamic Peak Pricing (often called Critical Peak Pricing)
Peak Time Rebate
Customers had day ahead notification of critical peak day
, telephone call, text message (up to 5 of each)
A sample of customers had the Ambient Energy Orb that signals relative prices through the use of varying colors
Sample of customers had enabling technology (smart A/C switch and Orb)
Survey of customer acceptance/behavior now in progress
Load research survey meters for pilot; AMI meters required for full deployment
DSM/AMI

12. Controlling loads for just 60 hours per year can have a dramatic impact on capacity needs and prices…
DSM/AMI

13. Distribution of Summer Hours
Distribution of Critical Peak, Peak and Off-Peak Hours
June - September
Off-Peak Period
2,503 Hours
(85%)
Peak Period
365 Hours
(13%)
Critical Peak Period
60 Hours
(2%)
DSM/AMI

14. Dynamic Peak Pricing - Overview
$1.30
Pilot Pricing
All – in Rate*
Critical $
Peak $
Off-Peak $
* Includes generation, transmission and delivery
$0.14
$0.09
$0.09
DSM/AMI

15. Peak Time Rebate - Overview
A Mirror Image of the DPP Rate
Schedule R summer rates are $0.14 / kWh for all summer hours
Up to 12 critical peak days will be called by 6 p.m. the prior day
Customers who use less during the critical period (2 – 7 p.m.) on any critical peak day will receive a rebate. Two levels being tested:
$1.75/kWh
$1.16/kWh
DSM/AMI

16. Smart Energy Pricing Pilot Design
BGE’s SEP Pilot: 1,300 accounts, a statistically significant sample
DSM/AMI

17. Energy Orb Device for Signaling CP Event
Frosted glass ball with wireless chipset, microcontroller, LED lights
Plugs into an AC outlet
When a CP event is declared
the Orb will begin to pulse slowly
, voic , and text messages are sent
For DPP the Orb is
green off-peak
yellow during peak periods
red during critical peak events
For PTR the Orb is
green off-peak
red during critical peak events
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18. Smart Energy Pricing 2008 Critical Events
Sun 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
June 2008
Sun 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
July 2008
High Temp 96 90 92 92 92 89 91
Sun 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 31 25 26 27 28 29 30
August 2008
Sun 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
September 2008 92 92 92 73 72
DSM/AMI
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19. Smart Energy Pricing - Summary of Savings
DSM/AMI
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20. Distribution of DPP Customer Savings in Summer 2008
DSM/AMI

21. Distribution of PTR Customer Savings in Summer 2008
DSM/AMI

22. Average Customer Usage during a Critical Peak Event in June…
DSM/AMI

23. SEP – Preliminary Analysis of Average Load Reductions Over 5 hour Critical Period for First 7 of 12 Events
DPP = Dynamic Peak Pricing, PTRL = Peak Time Rebate Low ($1.16), PTRH = Peak Time Rebate High ($1.75), ORB = Customer Group that had an Orb only, ET_ORB = Customer Group that had Orb and Smart Switch
DSM/AMI

24. SEP – Preliminary Data Analysis Changes in Critical Peak Demand
DSM/AMI

25. SEP – Preliminary Data Analysis Changes in Total Consumption during Summer
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26. PTR Has Several Advantages vs. DPP
PTR is sometimes described as the “All Winners Rate Structure” -- rates are no higher than standard tariff prices even during peak periods
Avoids the “Opt-in” vs “Opt-out” debate – all customers are automatically eligible for bill rebates
DPP cannot be monetized in the PJM energy market
DPP can encourage customers to increase their overall consumption, even while reducing peak demand
Almost identical peak load reductions were achieved in the two different pricing structures
DSM/AMI

27. Value of Demand Response in PJM
BGE will monetize the energy reductions and the peak load reductions in the PJM markets
Value of energy reductions will be realized in the day-ahead and/or real-time energy market
Value of peak load reductions will be realized in the Reliability Pricing Model (RPM)
Energy value will be based on Locational Marginal Price (LMP) during the critical events
Peak load value will be based on the cleared unforced capacity price in the Base Residual Auctions and the Incremental Auctions
DSM/AMI

28. AMI/Smart Grid Technology is Evolving
New vendors are entering the field and existing vendors are upgrading their offerings
Vendors are working on both hardware and software upgrades to increase meter reading efficiency
Home Area Network (HAN) communication protocol is shaking out (e.g. Zigbee, Bluetooth, WiFi)
New in-home energy monitors are coming to market
Plug-in electric vehicles (PHEVs) coming to market starting in 2010 will offer new challenges. We believe that hourly metering, dynamic pricing and load control to give customers an incentive for off-peak charging will be critical to accommodating this new transportation technology.
DSM/AMI

29. Next Steps for AMI/SEP 2008 Wrapping up Sensus and Aclara AMI pilots
2009
Create BGE’s Smart Grid and HAN Strategies
Work with EPRI on their PHEV and Smart Grid initiatives
Monitor new AMI/Smart Grid technology, and other installations
Continue SEP pilot for second summer to help ensure sustainability of load reductions
Work with PJM to validate PTR results and plan for monetization of energy and demand response value
Update AMI RFP and select vendor
Present AMI business case to PSC for approval
DSM/AMI

30. Next Steps for AMI/SEP
2010
Continue system development and IT integration work
Pre-deploy several thousand AMI meters for operational testing
2011
Start full deployment of AMI meters and related infrastructure
2012 (Summer)
Begin Peak Time Rebate program for all AMI enabled customers
2014
Finish full deployment of AMI meters and related infrastructure
DSM/AMI

31. BGE’s Estimated Peak Load Reductions (MW)
DSM/AMI