AMR Deployment Strategies Obstacles

1. �AMR Deployment Strategies & Obstacles� Presented March 28, 2006 Nic King Texas Meter & Device Co. Waco, Tx

2. Keys to a Smooth Deployment Select a Technology and understand the capabilities and limitations of that technology Develop a sequential list of all activities and task that must be completed both in preparation for and during deployment. Establish a date to begin and end the project. Appoint a team to oversee the deployment and assign key task. Set drop-dead dates for each task and stick to it. Change out meters by Cycles and establish blackout times before and after the existing meter reading cycle. �Just In Time Inventory� is ok for Dell not for AMR deployments��order early and often� If using a contractor, choose one with experience and give them good documentation of what is required.

3. Keys to a Smooth Deployment Do a trial run on meter exchange, data entry, and billing. If electronic exchange data will be used make sure file formats are compatible and contain the required information. Educate your customers about what is going on, set up procedures for notification and customer complaints. Generate meter reading cycle maps. Very important � Make sure out read is correct and take digital photo of old meter in service prior to removal. Integrate exchange data every day to prevent getting behind. Take the opportunity to fix problems as discovered during the deployment. Communicate with contractor about which cycles are being worked and which cycles are next.

4. Keys to a Smooth Deployment Identify critical care customers and establish special protocols for exchange of their meters. Train installers or require contractor to notify you of diversions and have personnel available to go to the site to assist and document. Clean up problem exchanges as you go. Plan deployment pace so that cycles can be completed prior to the next reading cycle. Make sure you are ready to begin using the new system and have properly trained personnel to begin within 1 billing cycle after starting the project. Allocate personnel to handle any problems with new system. Once you start receiving data from the new system, do spot checks to verify that the register read equals the AMR data.

5. Big Decisions Do I use a contractor or not? Other than the decision to do an AMR project and which technology to use, the biggest decision you will make regarding the eventual success of the deployment is �contracting or not�. Here are some things to consider: Don�t underestimate all that must be done by your people and how many people that will take. Consider that contractors can do it cheaper and faster. If you plan on fixing any problems with your meter points such as bad sockets, etc. consider the use of a contractor so that you have field resources available. How will meter reading personnel be used after deployment? How fast do we deploy and over what time period? How are we going to handle exchange data�paper/manual entry or electronic data files? Are we going to change meter reading cycles? Are we going to send out a �short bill� or combine into next full cycle read and can out system handle it? How are we going to educate and inform our customers.

6. Change Out Statistics Average Exchange Rates (per man day) Dense Urban Areas�.50 to 80 meters per day Average 65 Rural Areas�.25 to 50 meters per day Average 40

7. Be Prepared for: Materials delays � Due to the high volume of AMR projects and factory capacities, there is a chance you will deal with delays in receiving materials at some time during the project. This can have a very significant affect on the project from installation to billing. Customer complaints � Regardless of how you educate and notify your customers of the impending change, you will deal with customer complaints. The most common are: my TV no longer works, my gate is broken, my air conditioner does not work, my computer is dead, my dog is gone, etc. Some mistakes � You will make some mistakes and some things will not go according to plans. Don�t sweat it�fix it and move on. Being flexible � If some aspect of the project is not working, be prepared to change your procedures or practices.

8. Educating the Customers TV/Radio broadcasts notification Include notes on the customer�s bill Leave door hangers at time of change out Focus on the positives with customers: Explain the technology Cost savings Efficiency gains Accuracy We will not have to come into your yard to read the meter

9. Miscellaneous Don�t forget: Seals Locking rings Keys Sockets Maps Inventory management Storage capacity Safety procedures Safety equipment Customer complaint documentation Complaint resolution policy Misc. Supplies: Seals, Rings, Barrel Locks, Misc. Supplies: Seals, Rings, Barrel Locks,

10. AMR Statistics Public Power: 5% of meters are AMR Co-Ops: 23% of meters are AMR IOU�s: 18% of meter are AMR From 2001 to 2002; went from 19.2 million meters having AMR to 24.9 million. 14.4% growth rate for AMR Data taken from The Scott Report, 2003