1. Advanced Metering Infrastructure (AMI) Project Update Mark Heintzelman June 2010

2. AMI System Requirements Demonstrated Ability @ Scale Retrieve hourly energy consumption from all (480,000) endpoints Two-way communications to reset displayed Peak Demand or kW, on command Two-way communications to support direct load control –Meet NIST – Critical Infrastructure Protection requirements Provide outage management process enhancements Reduce operational costs related to meter reading and customer movement processes

3. AMI Phased Approach Phase I – Test the AMI technology – 2004 -2008 –Test hourly data retrieval –Pilot Data Management & time variant pricing –Develop a business case Phase II – AMI Infrastructure Installation 2009- 2011 –Strategic Sourcing –Regulatory Filing –Infrastructure deployment –O&M cost reduction Phase III – AMI Full Implementation 2012 –Full data and system integration –System optimization –Additional Systems

4. Deployment Shcedule

5. Two-Way Automated Communications System (TWACS) Overview

6. Substation Control Equipment

7. TWACS Modules Meter applications –New Solid-state Meters with factory installed TWACS modules –Residential - Landis & Gyr –Commercial – General Electric Transponder Switch (outdoor) –AC Cycling/Irrigation Load Control Control circuit –30 Amp Direct water heater/pool pump

8. TWACS PLC Communications Outbound Communication From Distribution Substation Inbound Communication From TWACS Module 1357 4268 Inbound Bit

9. Communications Schedule/Shift

10. Residential Meter Display Scrolling (3) – Display Check - Peak Demand - kWh “PD” Peak-Demand OO. OO (08.12 or 20.11 or 00.95) Power Indicator/disc emulator (forward > Reverse <) Com Indicator (not used) Nominal Voltage (on)

11. AMI Data Flow

12. Data Display

13. Deployment Status 60+ Sub Stations Complete 260,000 meters exchanged – 750-1,000 per day MDMS IEE 5.3 in production On Schedule On Budget PUC Actions –Certificate of Necessity & Convenience (Dec 2008) –Recovery on investment (June 2009 – June 2012) DOE Stimulus Grant $47 M for Phase III

14. TWACS Outage Management - Trace

15. Ping

16. Response Displayed

17. Added Value Billing Error & High Bill complaint reductions Customer Satisfaction Access issues, Digital meters, Data availability - Web Enhance DSM (Green) Enable Time Variant Rates (Green) Enhanced C2T/GIS/OMS data Reduction In Vehicle Use (Green) Distribution Control? – Capacitors? System Monitoring & Reporting/Data Acquisition Voltage, Load, PQ, Energy use, Outage, Electrical location

18. Data Volume Monthly reading of 500,000 meters X 12 months = 6,000,000 meter reads annually 250,000 AMI meters X 26 reads daily = 6,500,000 meter reads daily (24 hourly reads + daily kWh & kW reads = 26 reads daily) 500,000 AMI meters X 26 reads daily = 13,000,000 meter reads daily 13,000,000 daily reads X 365 = 4,745,000,000 meter reads annually Additional reads (future) –Voltage –Power Quality –Transponder cycle counts Meter Data Management System (MDMS) – Bleeding edge

19. Hard AMI Cost Reductions (the business case) 99% of Meter Reading Costs ($5.5M annually) 90% of Customer Movement Costs ($1.5M annually) Reduction in outage scoping & restoration conformation costs ($363k annually)

20. Approximate Cost 3 Years $74,000,000 –$1.2M - IT – Systems & Interfaces –$13.3M - 142 Station + growth & Communications Equipment Installed –$55.5M – 500,000 Meters Exchanged or installed –10% contingency and loading $126 to $140 per endpoint

21. AMI Phase III (2012) Implementation of “Mass” Time-Variant-Rates, this will require additional investment (CIS) (stimulus) DSM Implementation (stimulus) –Direct load control –Indirect load reduction – price signals - TOU –Data analysis Other Value Added Services (stimulus) –Monitoring –Reporting –Control

22. Frequency Spectrum Exposure Hazard 1 Hz - 3 MHz3 MHz - 2000 MHz2000 MHz - 750 THz750 THz - 3000 EHz No recognized exposure hazard Potential hazard - prolonged exposure at extremely high power levels Hazards related to prolonged exposure at high power levelsExtreme exposure hazards Health risks generally increase with the signal frequency, strength of the signal and exposure duration.

23. Questions