2. Smart Grid City: A blueprint for a connected, intelligent grid community Dennis Stephens Director, Utility Innovations and Smart Grid Investments OSI User’s Conference September, 23 2008

3. 3 Drivers for change  Grid reliability  Aging assets, heightened demands  Environment:  Global climate change  Legislative mandates for green power  Energy Security:  Homeland security  Dependence on foreign oil  Customer Choices:  Growing needs and expectations  Desire for greater flexibility and options

4. 4 The Market – other efforts  Smart meters  Demand side management and distributed generation  Superconducting cables  Energy storage devices  Intelligent home/Smart appliances  Automatic power power restoration and correction for voltage, frequency and power factor issues  Renewable energy sector growth

5. 5 Xcel Energy - Smart Grid vision & approach  First to present a comprehensive solution  Broad portfolio of new technologies & projects  Encompassing the entire power pathway  Fuel source to end-use consumer  Collaborative model  Shared risk, shared rewards  Focus on environmental aspects  Uniquely positions Xcel Energy

6. 6  Accenture  Current Group  GridPoint  OSI Soft  Schweitzer Engineering Laboratories  Ventyx  Xcel Energy imagine. inspire. innovate.

7. 7 SmartGridCity™ - Boulder, Colo. “An international showcase of smart grid possibilities… a comprehensive demonstration of an intelligent grid community”  Test technology  Integrate smart grid portfolio of projects  Prove benefits

8. 8 Boulder’s Key Strengths  Ideal size (50,000 customers/meters)  Ideal geographic location (easy access to needed grid components)  Ideal Smart Grid consumers:  Web-savvy, early adopters  Environmentally aware  Collaborative opportunities with:  University of Colorado  National Center for Atmospheric Research  National Institute of Standards and Technology  City leaders

9. 9 SmartGridCity™  Involves the entire energy pathway from the power source to the home and all points in between  Rich in IT  High-speed, real-time, two-way communications  Sensors enabling rapid diagnosis and corrections  Dispatched distributed generation (PHEVs, wind, solar)  Energy storage  In-home energy controls  Automated home energy use

10. 10 Smart House Plug-in hybrid electric cars Added green power sources Smart thermostats, appliances and in-home control devices Real-time and green pricing Signals High-speed, networked connections Customer interaction with utility

11. 11 We will need to collect, store, analyze and act on information How we might use PI:  Commercial Operation  Virtual Power Plant  Substation  Condition Based Analysis  Distribution  System Status and Control  Customer  Demand Response/Distributed Generation

12. 12 Learn more  xcelenergy.com/smartgrid