Chip Merriam, Vice President, Legislative & Regulatory Compliance, OUC

1. OUC Rolls out Best Smart Infrastructure with Oracle Utilities Applications                      The Perspective from OUC Chip Merriam, Vice President, Legislative & Regulatory Compliance, OUC Guerry Waters, Group Vice President, Oracle Utilities Beth Kearns, Managing Partner, Red Clay Consulting Hedi Ago, IT Director, OUC

2. Agenda Introductions The OUC Story OUC Dynamics/Imperatives/Goals The Approach The Results Questions

3. The OUC Story Why we chose Oracle and its MDM product…..

4. OUC Dynamics • Smart Grid: introducing new business opportunities & challenges • Full AMI for both water and electric • Infrastructure • Leverage big data • Data mgmt & governance more critical • Emerging technologies: enabling operational efficiencies • Maintain reliability: already one of the most reliable utilities in the nation • Shift in reducing rates and customer focus: customer interactions area priority and access to meter data is a cornerstone of strategy

5. OUC Imperatives • Leverage technologiesto be the one of the best utilities in the United States. • Full AMI for water and electric • Achieve the best reliability ratings • Full IVR / Web capabilities • Implement the best MDM system • Aim for extensive pre paid metering • Be Green

6. OUC Goals • Provide a foundation to support Smart Grid, Smart Customers and Smart Programs (easy access to usage and program information) • Reallocate staff (meter readers and customer experience people) • Drive customers to the websiteto answer questions • Add online chat services • Display additional data online • Reduce service calls • Fast and accurate turnaround from meter reading to billing(eliminating the manual collection of no-reads) • Identify issues proactively and automate corrective action • Educate & empower customers (to engage in activities, enable automation of efficiency with customers & to implement demand response programs) • Improve on-time & accurate billing (with integrated meter-to-cash operations)

7. OUC Customer Interaction Costs Cost per Call Center Call Cost per Paper Bill $5.73 $0.50 26,000/month Cost per Walk-in Customer Cost per e-Bill $5.00 $0.22 125,000/month Cost per IVR Call Cost per Web Transaction $0.50 $0.05* * estimated

8. OUC Customer Research Objectives

9. The COMPLETE picture

10. MDM is the Foundation of OUC’s New Customer Experience Functionality

11. Why is Meter Data Management Important? • Improve on-time billing & accuracy • Enable new pricing, tariff design & analysis • Increase infrastructure efficiency • Improve forecasting & system planning • Reduce revenue leakage, theft & bad debt • Create operational efficiencies to lower operating expenses • Increase meter information accessibility • Allow internal & external customers to manage usage & energy costs through actionable info • Identify & conduct preventative maintenance

12. History of the MDM Project MyOUC.com OUC was heading down a more customized solution path using multiple vendors.  No long term implementation strategy Spending significantly more money customizing a solution than we ultimately spent on the Oracle solution.

13. Historical Timeline of MDM Projects OUC began Smart Grid initiatives in 2007, MDM started in 2010 2013 2010 2011 2012 Oracle Phase II Oracle Phase I Another Vendor Phase I Phase I completed within original approved Budget

14. OUC’s Chosen Implementation Approach 1 2 3 EXTENDED MDM ADVANCED AMI/ MDM METER TO CASH • Single Service • AMI/HES integration • Single CIS integration • Validation (VEE) • Billing calculations • Exception management • Additional Integration • FAs to/from CIS • Complex Billing Determinants • Custom validation & Estimation rules • Web Presentment • Meter Move In/Out & Provisioning • Reporting / Analytics • OMS Integration • Load Research Output • Additional Services (Water, Chilled Water, etc) • Demand Response • Additional Device Integration WALK REFINE RULES AND SHARING INTERVAL DATA RUN LEVERAGING THE DIGITAL NETWORK CRAWL AMI-BASED BILLING

15. OUC’s Future Strategy & Next Steps • Accelerated Roll Out of all Smart Meters • Integration of ~240,000 Elster AMI Electric Service Meters • Integration of ~145,000 Elster AMI Water Service Meters • Estimated 385,000 total AMI meters in MDM • Ability to load data from the field from HFF files • Billing data for all AMI meters coming from one source, MDM • Advanced revenue protection capabilities • Automated Device Communications • Phase III • Meter Analytics – Revenue Protection, Billing • Increased volume of meters collecting interval data • FUTURE - Consumption Dashboard and AMI Integration

16. Process Flow Meter Data Management

17. The Results

18. A BEAUTIFUL THING……. Customer Reconnection — “Old Way” Real-Time Opportunity Defined with OUConnect (All forms of interaction: web, payment centers, IVR, call center) 24+hours Goal: < 15 minutes

19. Leveraging the Seamless Highly Integrated Infrastructure 12 minutes elapsed time from payment at a location to service reconnection. Less than 7 minutes for the IVR/Web. OUC won the “Smart Grid Infrastructure Award” for Large Utilities in CS week 2014

20. Why Oracle • Oracle Utilities Meter Data Management & Smart Grid Gateway • The most complete and cost effective applications for our business needs • Consolidates vast amounts of data into central data source for all departments • Improves on-time & accurate billing with comprehensive integration of meter-to-cash operations • SmartGridGateway (SGG) • Proven track record of Oracle Utilities Meter Data Management implementations • “Crawl, Walk, Run” approach • Pre-configured options and fully robust “out of the box” functionality • Low risk & affordable • Rapid deployment (fully tested & requires minimal customizations) • Complete core meter-to-cash MDM solution with endless possibilities for enhancement

21. OUC Key Lessons Learned

22. Questions?