Today’s Economic Realities

1. Today’s Economic Realities Civic leaders face many issues… Improving safety & security Risk management Improving productivity How to cut operating cost Leveraging investments Predictable cash flow Regulatory compliance Energy management

2. Cities for a Strong Americaand2005 Urban Water Summit Joe O’Connor – East Sales Leader, Meter Services: Tom Pautz – West Sales Leader, Meter Servics: Date: September 30, 2005

3. Augusta, Georgia Commercial AMR Meter Installation Project

4. Performance AMR • Project period July 1 2003 – May 31 2005 • Installed 7000 Commercial Badger potable water AMR meters • Overall Meter reading accuracy is calculated at 99.3% exceeding the performance guarantee value of 97% • Modernized a 50 year water meter infrastructure

5. Large Meter Installs • 486 Large Meters Installed, 3” – 10” • Each site received a comprehensive survey to confirm correct meter type and size.

6. Medium Meter Installs • Installed 1,323 meters, 1.5” and 2” • in a variety of conditions (dirt, sidewalk, parking lots, etc…) • Confirmed correct meter application and sizing

7. Small Meter Installs • Installed 4,191 , 5/8” and 1” • 1,000 residential meter installs • in a variety of conditions (dirt, sidewalk, parking lots, etc…) • Infrastructure repairs, modifications, or replacement

8. Work Order Statistics • 7,613 work orders received • 7,014 work orders completed • 599 work orders deactivated • Duplicate work orders • Utility requested • Unable to install, returned to Utility • Bottom line result total completion

9. 2005 M&V Process • Testing was conducted in the field during the 4th Quarter of 2004 and 1st Quarter of 2005 • Testing was performed in accordance with AWWA guidelines • Each meter was tested at 3 different flow rates to simulate different water demands • Overall performance of meter accuracy was weighted based on the 3 flow rates; Low = 5%, Medium = 15%, and High = 80%

10. Maintenance Plan • Began on January 1, 2005 • Maintain 97% meter read accuracy for a period of 10 yrs through a scheduled maintenance plan (Currently guaranteed for 2 yrs with a Client option for a 3rd year) through a 3 step process • Monitoring and Cleaning • Annual Rebuild • Measurement and Verification

11. Itron Technology Innovative AMR Solutions

12. Itron, Inc Itron, Inc. • Broadest Array of Data Collection Systems & Communication Technologies • Mobile, Handheld & Network AMR • Radio, Telephone, Private & Public Networks • Hardware, Software & Systems Integration • Wireless Work Force Management • End-to-End Systems Implementation Expertise • Compatibility with All Major Meter Manufacturers • Water, Electric and Gas • Non-proprietary/hardware neutral

13. Walk-by/Drive-by Automatic Meter Reading • Functionality: • Accurate and Timely Readings • Strategic Applications: • Reduces high-cost-to-read meters (bad dogs, locked gates, basement meters) • Leak and Tamper detection • First step in the migration to Fixed Network

14. City of Akron, OhioResidential AMR Meter Program

15. Residential Water Meter Program • Deployment period October 2003 – August 2005 • Honeywell served as general contractor to install an Itron Mobile Radio AMR system with Badger Meters. • 78,500 Indoor residential meters • 12,000 Outdoor pit meters • Single point of contact for meter installation, technology deployment and integration

16. Maximizing Success Competency High Service Level Real Time Information

17. Akron Project Results • Final Read Rate 99.9% • Seven complaints per 10,000 installations • 100% of all the complaints were resolved • Completed deployment three months ahead of schedule • 100% installed

18. Great Partnerships Produce Great Successes