1. Smart Integrated Infrastructure The Progression of Smart Grid Presentation to National League of Cities Martin G. Travers – President, Telecommunications

2. 2 September 10, 2010BOD(71) - 2 At the core, being “Smart” is understanding how to plan, integrate and operate technologies holistically Added infrastructure intelligence enables increased reliability, efficiency and security while enhancing the end user experience and creating a sustainable future Financial, social and political pressures drive infrastructure owners to improve end user service in more cost- and resource- efficient ways

3. 3 September 10, 2010BOD(71) - 3 Evolving Infrastructure Landscape Integration Progression lowhigh low high Strategic Impact Industry Average Industry Best Industry Defining I.Smart Network Device Connectivity Smart Grid II. Smart Information Data Aggregation and Analysis Smart Single-Use Infrastructure III. Smart Utility Multi-System – Multi-Facility Aggregation IV. Smart Infrastructure Multi-Utility Integration Physical – Cyber Integration Market Today The convergence of energy, heating/cooling, water, waste management, communications, security, and transport will drive increased efficiencies and reliability Data InformationKnowledge Wisdom

4. 4 Smart Network - Defined Key elements Installation of network/connectivity Installation of additional sensors/linkages and intelligent devices Specialized tools and processes to collect, and transmit the data securely Technology that provides monitoring and control data for infrastructure operations. September 10, 2010BOD(71) - 4

5. 5 Smart Information - Defined Key Elements Aggregation or ability to see multiple assets as a collection, allowing large number of distributed assets to be grouped for control, planning, and other needs. Apply knowledge of present/past in concert with view of the near- term future (with consideration of price signals, market, weather, or other factors that shape demand) to FORECAST requirements. Tools to organize data to support multiple business decisions/ objectives September 10, 2010BOD(71) - 5

6. 6 Smart Information - Benefits Identification of impending failures awareness of magnitude of losses and inefficiencies within a physical system (water, energy, or otherwise), or performance bottlenecks) Allows needs to be compared to overall capabilities – this is key for demand response techniques. September 10, 2010BOD(71) - 6

7. 7 Smart Utility - Defined Point of coordination and planning address how both existing and new assets will play together. Key Elements New-build design, integration of new/existing assets, extended opportunity for knowledge management. Develop understanding and implications or action required at both the aggregate as well as at the asset level Knowledge of and ability to model complex assets Leverage of high-level statistical math or AI tools in concert with tools/capabilities to assess/model what individuals asset can/will do. September 10, 2010BOD(71) - 7

8. 8 Smart Utility - Benefits Application of knowledge to how the actual pooled assets perform, implicit constraints/options Understanding of how off-line assets (like energy storage) can be best combined to meet overall requirements. A move towards optimization as forecasting improves to address longer period of time with good predictability Improved ability to efficiently plan/commit various resources into the pool September 10, 2010BOD(71) - 8

9. 9 Smart Infrastructure - Defined Consumption shaping through data aggregation, demand/supply matching, demand response, (within various plants, systems, homes, etc.) is “controlled” (like air conditioning, recharging of vehicles, etc.) across all utilities Key Elements Systems engineering principles applied to help design integrated use/multi-utility systems required for smart cities. Market based principles driving economic behaviours / actions September 10, 2010BOD(71) - 9

10. 10 Smart Infrastructure - Benefits Better multi-utility coordination of the industrial customer with the regional utility (water, electricity, steam, waste product reuse, etc.). OSI has noted that their analysis shows that managing interactions of top 30% of industry will allow for 80% of load management to addressed September 10, 2010BOD(71) - 10 An exciting component of this model is that this cycle is repetitive… Smart Infrastructure leads back to Smart Networks.

11. 11 Smart Integrated Infrastructure Benefit Statements Utility Cost Savings – OpEx and CapEx Reduced Labor Force Consumers Reliability Price Savings Community Resource Efficiency Environmental Efficiency September 10, 2010BOD(71) - 11

12. 12 September 10, 2010BOD(71) - 12 SII Platform is the way to keep pace with the societal and industry imperatives Winners understand: Customer circumstances How to successfully leverage technologies How to adapt solutions The Smart Integrated Infrastructure is a natural progression of today’s Smart Gird initiatives SII Technology is a dynamic component of Building A World of Difference

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