Advanced Utility Infrastructure The Foundation for an Intelligent Electricity Delivery System

1. Advanced Utility InfrastructureThe Foundation for an Intelligent Electricity Delivery System “Energy Opportunities for West Virginia” Summit Teaming to Win / WVHTC Foundation May 27, 2009 John C. Ahr Allegheny Power

2. Allegheny Power Allegheny Power Allegheny Power delivers low-cost, reliable electric service to approximately 1.6 million customers in Pennsylvania, West Virginia, Maryland, and Virginia. West PennPower Potomac Edison Monongahela Power • Allegheny Power consistently wins high marks for customer satisfaction. • First in the Northeast Region in the 2008 TQS Research, Inc. Benchmark Survey of 60 large utilities. • Criteria of price, reliability, energy efficiency programs, power quality, account representative performance, handling inquiries, and image.

3. Challenges to the System Emerging delivery system requirements include: • Improve electricity reliability for the customer • Achieve higher levels of system efficiency • Increase energy conservation • Provide demand management programs • Support smart meters • Offer alternative rate structures • Furnish customer load / time-of-day usage data • Integrate usage data into multiple data systems • Monitor circuits to better achieve service restoration (self-healing) • Connect with end-use devices at the customer These result in the need for a more intelligent grid.

4. AUI is AP’s Solution Advanced Utility Infrastructure is AP’s: • Comprehensive approach to smart grid • Technology platform for addressing current grid concerns as well as incorporating future components and capabilities • Framework for meeting important customer, regulator and operational demands: • Demand-side management • System efficiency • Electricity reliability • Security and supply chain • Energy conservation

5. AUI Provides • Comprehensive, interoperable, intelligent solution that incorporates a host of devices important to utility operations beyond just meters • Unified network for the distributed integration, processing and communication of all types of data • Effective, real-time monitoring and control • Sufficient bandwidth on an as-needed basis

6. AUI is Built Upon • Platform technologies from Augusta Systems that enable plug-and-play integration of data from different devices and field-level processing and control • Multi-vendor monitoring and control devices to increase deployment flexibility • As-needed communications methods to increase deployment flexibility

7. What’s The Difference?AMR, AMI, AUI AMR is a one-way street with data flowing in one direction AMI is a two-lane road with data flowing in both directions AUI is a multi-lane expressway, with different types of information flowing in both directions

8. AUI Applications Grid modernization projects in West Virginia have enabled AUI technology testing… • AUI applications: • Developmental Field Test • WV Super Circuit • Research Ridge Test Facility • Substation Security … demonstrating the use of a unified communications and computational network to power advanced capabilities.

9. West VirginiaAn AUI Testbed • Developmental Field Test (DFT) • Increases electricity reliability (reduced outage time/preventative maintenance & self healing) through system automation via the AUI network • Supported by USDOE/NETL • WV Super Circuit • Expands upon DFT electricity reliability efforts, while also incorporating AMI meters and integrating distributed resources over the AUI network • Supported by USDOE/NETL • Research Ridge Test Facility • Demonstrates demand-side management through the use of multi-vendor smart meters, smart thermostats and AC/appliance control device that automatically manage demand in response to electricity price signals, integrated with line and substation monitoring devices at a nearby feeder and substation, all over the AUI network • Substation Security Project • Demonstrates remote monitoring/physical security at AP substation over the AUI network

10. Next Steps • Proposed AUI pilot deployment in Maryland • Addresses Maryland legal and regulatory requirements for increased energy efficiency and conservation • More than 1,000 customers • Demonstrates automated demand management via smart meters, smart thermostats and AC/appliance control in response to real-time pricing signals • Demonstrates improved system efficiency through line monitoring • Manages peak demand and improves energy savings • Based on pilot results, will develop business case for larger deployments

11. What It Means To the Customer • Manages load growth through demand reduction, loss reduction and usage reduction • Empowers customer with real-time information and control • Provides utility with real-time information on system health • Meets stakeholder calls/requirements for increased reliability, enhanced efficiency, demand response and others • Is less costly and more effective than a piecemeal approach (such as separate metering & monitoring infrastructures) • Provides a strategy for a successful, cost effective, reliable, efficient delivery system

12. Thank You Advanced Utility Infrastructure The Foundation for an Intelligent Electricity Delivery System John C. Ahr jahr@alleghenypower.com 724-838-6831