COMMUNICATION FOR THE SMART GRID

1. Your Power. Your Data. One Wireless Network. COMMUNICATIONFOR THESMART GRID Eric MurraySenior VP, Sales & Business Operations Smart Metering West Coast August 2007 w w w . t a n t a l u s . c o m

2. Facing Challenges Numerous, Daunting Challenges: • Changing Supply:Demand Balance •  Environmental Impact Concerns • Aging Infrastructure • Disappearing Knowledge Base • Evolving Pricing Rules/Expectations • Complex Regulatory Environment • Increasing Customer Expectations • Growing Distributed Device Count • Varied Data Needs • Data Mgmt & Analysis Critical Increasingly complexbusiness and technology environment

3. Change Drivers • Smart Meter Data requirements expanding to include all aspects of energy use:- consumption - demand - power quality - end-use information (equipment & processes)- voluntary and controlled grid - outages and event records - billing data - general customer service data • Inter-relationship of data sets becoming increasingly critical • Timeliness of data dramatically impacts usefulness Multiple SourcesMultiple UsesDriving Change

4. Smart Meter Evolution 2000 Wish List • AMR only: Automated Meter Reading • Dominated by limiting technologies: • Save money via remote, automated meter reads • Improve reading / billing accuracy • Identify outages • Daily data Today’s Wish List • All that and more…AMR / AMI • Demand Response - dynamic pricing / load shedding • Geared to Improving Billing, Regulatory & Conservation Efforts • End-User Engagement: Conservation, Emissions • Data Integration with MDM(R) & AMI Bus • Support Multiple Resources – electricity, water, gas • Voltage & Network Stability Measurements • Real-Time Communications: • Meter reads, device interactions • Multi-application functionality:- OMS, PQM,CIS, remote disconnect • Surgical deployment • Regulatory accuracy: SAIFI / SAIDI

5. Moving Forward • Develop ways to process and manage electric, water, gas data. • Expand customer interactions & communicate more frequently on increasingly complex issues (relevant). • Perform more meaningful and complex analyses to predict network & asset performance. • Accurately anticipate changes in demand to optimize price margins and keep pace with load growth. • BUT THAT’S JUST THE BEGINNING Need to embrace proactive business practices to streamline operations & improve efficiency.

6. Smart Meter Essentials What Makes a Meter “Smart?” • Interval measurements: – what was consumed and when • Automatically transmits data: – no manual reads • Capable of two-way communications: – listens & talks • Over the Air Reconfiguration What Makes it a Smart Network? • Scaleable capacity as applications grow • Multiple applications, running simultaneously • Supports device interaction – asset synergy • Delivers operational enhancements • Enables other applications through data • Evolves as Drivers Change (Evergreen) Defined: a meter thatcan intelligently measure electric, gas or water consumption and interact within a Smart Network.

7. Point-of-Sale ParadigmThe “Cash Register” isn’t an Isolated Device • Wal-Mart revolutionized retail- Point-of-Sale data collection - Take costs out of supply chain for Just-in-Time purchasing • Collected data and distribute to multiple stakeholders:- warehouse / inventory control- purchasing- accounts payable / receivable- marketing – consumer profiles- shipping • Became essential decision making tool for multiple stakeholders • Made it possible to tightly control operations - access to real-time data Balanced. Simplified.Synchronized.

8. New View • Leverage Smart Meters to collect a full range of data • Distribute to stakeholders within the organization • real time for critical situations • broad based for operations & customer service • post mortem for analysis & optimization • warehoused for reporting& regulatory purposes • Support advanced services • prepaid billing • load control & optimization • dynamic pricing • network optimization • distributed generation • web presentment • medical alerts • Evolve to Smart Grid Applications Optimize Information.

9. Chatham-Kent Hydro Goals • Full, two-way communication to support critical peak pricing, real-time outage, and customer signaling • Validate impact of Smart Metering • Multi-commodity: electric, water & gas • Engage end-users in Conservation efforts Results • Smart Metering program runs at ~40% Ontario Energy Board’s estimated cost • Interfaces between TUNet and billing, CIS, and MDM/R • Future plans for OMS, GIS, and SCADA • Online usage presentment via web; 6% net reduction in customer heating bills • Operational improvements from automated real-time voltage monitoring, outage/restoration reporting • More accurate readings on customer moves, and verification that service is restored after outages • Now deploying load management as an integral solution in pilot mode to learn how to engage end-users in conservation efforts. Profile • Based in Southern Ontario • Local Distribution Company • 32,000 residential & 450 C&I customers • Leader in provincial Smart Metering initiative – full AMR by 2007 • 1800 sq. mile (4800 sq. km) service area • 22 substations – CK Hydro & Middlesex Winner 2006 :: Utility Planning Network Best Metering Data Integration Initiative

10. Saint John Energy Goals • Stabilize costs & energy consumption • Introduce advanced metering and establish backbone network to support dynamic pricing and load control • Rapid deployment & freedom to install anywhere in service territory Results • Private utility RF communications network provides reliability, cost stability and no unexpected rate increases • Single radio tower enables SJE to place smart meters anywhere within service area – targeted 40 distinct locations / demographics • Reliable communications during critical events • More accurate SAIDI / SAIFI reports • System for cost & labor saving programs:- virtual disconnect / reconnect- shortened billing cycles- line loss location- improved load factor • Easy & economical expansion of TUNet to include load management, interval billing and water metering. Profile • Based in Saint John, New Brunswick • 35,000 customer municipal utility • Frequently hit by North Atlantic gales & ice storms • 125 sq. mile service area (323 sq. km) • 13 substations / 75 distribution feeders

11. TUNet – Simple Infrastructure • Two-way, real-time data communications for electric, gas & water utilities • Long-range 220 MHz WAN provides nominal range of 16 miles (25 km) – urban, rural & challenging areas • Multiple radio channels provide room for growth – high density and low density metering / advanced services including DA • Other communications options include cellular and Ethernet networks • 900 MHz LAN interconnects local network – multiple meters communicate with Sharkfin • Suitable for residential, apartment, and commercial & industrial accounts as well as with distribution infrastructure

12. Wireless Hybrid Networks • Flexible System Design: • Design in Contingencies • Surgical Deployment  Improved NPV • Scaleable to Meet Future Needs: • Expand as Applications Added • Add Capacity as Access Frequency ’s • Service Area Coverage: • Supports Multiple Commodity Connection (W,G,E,P) • Rapid WAN Coverage – Assurance & Prioritization • Connection Redundancy at All Levels: • Self-authenticating, Self-healing Network • Multiple Paths to Network Server • Future WAN Network Options • Ease of Deployment: • Single Endpoint sku’s by Application • Simple Coverage Validation • Relevant Data Delivery: • Ability to Prioritize Data Delivery • Data Independent of Power System Operation • Ability to use TUNet to Reprogram Endpoints It’s about identifyingthe root cause!

13. What’s Next • Smart meters are quickly becoming the standard – for metering. • Smart Grid becoming less about individual applications, and more about interoperability. • Main focus is providing relevant information into the organization, not collecting data. • Enable automated activities • Drive/support new applications • Regulation and Market driving other application requirements. • Networks trending toward fixed (RF)- easier connection: water, gas, electric- next challenges like DG also require stand-off connection- not limited by capacity, network performance, etc • No one-size-fits all solutions, but some better suited than others for smart metering Multiple SourcesMultiple UsesDriving Change

14. Your Power. Your Data. One Wireless Network. www.tantalus.com Eric MurraySenior Vice PresidentSales & Business Developmentemurray@tantalus.com Thank You