1. Consumer Education Challenge 1000 kwh x rate/kwh = $ Billed Amount When asked about energy usage, the customer receives this…… But really understands this…………

2. Smart Grid Roadmap PHASE 1 Enabling Infrastructure PHASE 2 Introduction of New Technology & Programs PHASE 3 Widespread Consumer Adoption Rollouts Capabilities Customer Education

3. Smart Grid Roadmap PHASE 1 Enabling Infrastructure Rollouts Capabilities Customer Education AMI Back Office Integration 2-way communications LAN / WAN / HAN Meter reading Security Interoperability

4. Customer Impacts / Perceptions of Meter Accuracy Changes to rates New rate structures (TOU, but no behavior change) Fuel increases Base rates Dynamic rate schedules Weather Normal effects of weather on consumption Meter replacement process Large replacement of end-of-life electromechanical meters (0.3% < 90% actual consumption) Transfer of closing read from old meter to new meter While process may be automated, “data splicing” adds complexity and opportunity for error Changes in billing periods Due to holidays, billing period can be as long as 35 days

5. Smart Grid Roadmap PHASE 2 Introduction of New Technology & Programs Rollouts Capabilities Customer Education Distribution Automation Consumer devices Dynamic prices / TOU Demand side management programs (DSM) Voltage Control Grid Monitoring Transformer load monitoring Power Quality Switching On/Off

6. Utility Operations / Business Process Real time meter reading Remote connect / disconnect Outage reporting Distribution automation Prepay Plug-in hybrid vehicles (PHEV) Distributed generation / renewables Call Center Work Management / Service Orders Service Restoration Workforce Management NEW

7. Smart Grid Roadmap PHASE 3 Widespread Consumer Adoption Rollouts Capabilities Customer Education Behavioral changes Distributed / Renewable generation PHEV

8. Systems Integration Work Mgmt Web Portals OMS IVR Demand Response CIS

9. Copyright © 2010 Elster Thank you!

10. 10© 2009 by Elster. All rights reserved. Elster - A world leader 200 million installations in the last ten years 6,800 employees 38 major locations 130 global markets 170 Years providing utility solutions Elster/Kromschroeder/Instromet (Gas) American Meter (NA Gas) Westinghouse/GEC/ABB (Electricity) Kent (Water) Coronis (RF) / PowerOneData (GPRS)