1. COMMUNICATION FOR THE SMART GRID Your Power. Your Data. One Wireless Network. Eric Murray Senior VP, Sales & Business Operations Smart Metering West Coast August 2007 w w w. t a n t a l u s. c o m

2. Facing Challenges Increasingly complex business and technology environment Numerous, Daunting Challenges: »Changing Supply:Demand Balance »  Environmental Impact Concerns »Aging Infrastructure »Disappearing Knowledge Base »Evolving Pricing Rules/Expectations »Complex Regulatory Environment »Increasing Customer Expectations »Growing Distributed Device Count »Varied Data Needs »Data Mgmt & Analysis Critical

3. Change Drivers Multiple Sources Multiple Uses Driving Change »Smart Meter Data requirements expanding to include all aspects of energy use: - consumption - demand - power quality - end-use information (equipment & processes) - voluntary and controlled grid - outages and event records - billing data - general customer service data »Inter-relationship of data sets becoming increasingly critical »Timeliness of data dramatically impacts usefulness

4. 2000 Wish List »AMR only: Automated Meter Reading »Dominated by limiting technologies: »Save money via remote, automated meter reads »Improve reading / billing accuracy »Identify outages »Daily data Today’s Wish List »All that and more…AMR / AMI »Demand Response - dynamic pricing / load shedding »Geared to Improving Billing, Regulatory & Conservation Efforts »End-User Engagement: Conservation, Emissions »Data Integration with MDM(R) & AMI Bus »Support Multiple Resources – electricity, water, gas »Voltage & Network Stability Measurements »Real-Time Communications: –Meter reads, device interactions »Multi-application functionality: - OMS, PQM,CIS, remote disconnect »Surgical deployment »Regulatory accuracy: SAIFI / SAIDI Smart Meter Evolution

5. Moving Forward Need to embrace proactive business practices to streamline operations & improve efficiency. »Develop ways to process and manage electric, water, gas data. »Expand customer interactions & communicate more frequently on increasingly complex issues (relevant). »Perform more meaningful and complex analyses to predict network & asset performance. »Accurately anticipate changes in demand to optimize price margins and keep pace with load growth. »BUT THAT’S JUST THE BEGINNING

6. Smart Meter Essentials What Makes a Meter “Smart?” 1.Interval measurements: – what was consumed and when 2.Automatically transmits data: – no manual reads 3.Capable of two-way communications: – listens & talks 4.Over the Air Reconfiguration What Makes it a Smart Network? 1.Scaleable capacity as applications grow 2.Multiple applications, running simultaneously 3.Supports device interaction – asset synergy 4.Delivers operational enhancements 5.Enables other applications through data 6.Evolves as Drivers Change (Evergreen) Defined: a meter that can intelligently measure electric, gas or water consumption and interact within a Smart Network.

7. Point-of-Sale Paradigm The “Cash Register” isn’t an Isolated Device »Wal-Mart revolutionized retail - Point-of-Sale data collection - Take costs out of supply chain for Just-in-Time purchasing »Collected data and distribute to multiple stakeholders: - warehouse / inventory control - purchasing - accounts payable / receivable - marketing – consumer profiles - shipping »Became essential decision making tool for multiple stakeholders »Made it possible to tightly control operations - access to real-time data Balanced. Simplified. Synchronized.

8. New View »Leverage Smart Meters to collect a full range of data »Distribute to stakeholders within the organization –real time for critical situations –broad based for operations & customer service –post mortem for analysis & optimization –warehoused for reporting & regulatory purposes »Support advanced services –prepaid billing –load control & optimization –dynamic pricing –network optimization –distributed generation –web presentment –medical alerts »Evolve to Smart Grid Applications Optimize Information.

9. Goals » Full, two-way communication to support critical peak pricing, real-time outage, and customer signaling » Validate impact of Smart Metering » Multi-commodity: electric, water & gas » Engage end-users in Conservation efforts Chatham-Kent Hydro Results » Smart Metering program runs at ~40% Ontario Energy Board’s estimated cost » Interfaces between TUNet and billing, CIS, and MDM/R » Future plans for OMS, GIS, and SCADA » Online usage presentment via web; 6% net reduction in customer heating bills » Operational improvements from automated real-time voltage monitoring, outage/restoration reporting » More accurate readings on customer moves, and verification that service is restored after outages » Now deploying load management as an integral solution in pilot mode to learn how to engage end-users in conservation efforts. Winner 2006 :: Utility Planning Network Best Metering Data Integration Initiative Profile » Based in Southern Ontario » Local Distribution Company » 32,000 residential & 450 C&I customers » Leader in provincial Smart Metering initiative – full AMR by 2007 » 1800 sq. mile (4800 sq. km) service area » 22 substations – CK Hydro & Middlesex

10. Profile » Based in Saint John, New Brunswick » 35,000 customer municipal utility » Frequently hit by North Atlantic gales & ice storms » 125 sq. mile service area (323 sq. km) » 13 substations / 75 distribution feeders Goals » Stabilize costs & energy consumption » Introduce advanced metering and establish backbone network to support dynamic pricing and load control » Rapid deployment & freedom to install anywhere in service territory Saint John Energy Results » Private utility RF communications network provides reliability, cost stability and no unexpected rate increases » Single radio tower enables SJE to place smart meters anywhere within service area – targeted 40 distinct locations / demographics » Reliable communications during critical events » More accurate SAIDI / SAIFI reports » System for cost & labor saving programs: - virtual disconnect / reconnect - shortened billing cycles - line loss location - improved load factor » Easy & economical expansion of TUNet to include load management, interval billing and water metering.

11. TUNet – Simple Infrastructure »Two-way, real-time data communications for electric, gas & water utilities »Long-range 220 MHz WAN provides nominal range of 16 miles (25 km) – urban, rural & challenging areas »Multiple radio channels provide room for growth – high density and low density metering / advanced services including DA »Other communications options include cellular and Ethernet networks »900 MHz LAN interconnects local network – multiple meters communicate with Sharkfin »Suitable for residential, apartment, and commercial & industrial accounts as well as with distribution infrastructure

12. Wireless Hybrid Networks »Flexible System Design: –Design in Contingencies –Surgical Deployment  Improved NPV »Scaleable to Meet Future Needs: –Expand as Applications Added –Add Capacity as Access Frequency  ’s »Service Area Coverage: –Supports Multiple Commodity Connection (W,G,E,P) –Rapid WAN Coverage – Assurance & Prioritization »Connection Redundancy at All Levels: –Self-authenticating, Self-healing Network –Multiple Paths to Network Server –Future WAN Network Options »Ease of Deployment: –Single Endpoint sku’s by Application –Simple Coverage Validation »Relevant Data Delivery: –Ability to Prioritize Data Delivery –Data Independent of Power System Operation –Ability to use TUNet to Reprogram Endpoints It’s about identifying the root cause!

13. Multiple Sources Multiple Uses Driving Change What’s Next »Smart meters are quickly becoming the standard – for metering. »Smart Grid becoming less about individual applications, and more about interoperability. »Main focus is providing relevant information into the organization, not collecting data. –Enable automated activities –Drive/support new applications »Regulation and Market driving other application requirements. »Networks trending toward fixed (RF) - easier connection: water, gas, electric - next challenges like DG also require stand-off connection - not limited by capacity, network performance, etc »No one-size-fits all solutions, but some better suited than others for smart metering

14. Your Power. Your Data. One Wireless Network. www.tantalus.com Eric Murray Senior Vice President Sales & Business Development emurray@tantalus.com Thank You