Smart TheThe FutureFuture ofof….…. Smart Energy Network

Alliance presentation from Energy Motorola, OZZ & NERTEC For Union Gas UtilityUtility DataData July 12, 2004 Connectivity Connectivity Network

FromFrom OZZOZZ EnergyEnergy SolutionsSolutions Inc.Inc. OZZ Corporation

Ontario Energy Board Smart Meter Implementation Initiative September 17, 2004 Open System Platform z Open Infrastructure Standards – ANSI meter communications – IEEE communications – Internet – e.g. W3C – Data Exchange – e.g. SQL, EDI – Application – e.g. Java z Shared Use Networks – Published protocols – Multi-source of connectivity – Multiple application uses z Information Exchange SMI Proposition z Smart Metering Infrastructure is Not Meter Reading – Smart Point-of-Service Device z Cost and Quality – Integral Part of the Distribution Grid – Opportunity to serve the consumer Smart Energy Value

Ontario – Responsive Distribution Infrastructure: SmartGrid Integrated networks Unified Infrastructure using intelligent device zSmartMeters Infrastructure automation zSmartControls –SmartPipes –SmartWires –SmartAssets

SmartGrid Integrated demand Smart Solutions Solutions response, efficiency & zCustomer participation reliability zPeak response zReliability response Alliance Difference

1. ECONOMIC FLEXIBILITY 2. RISK MITIGATION z Shared Infrastructure z Smart Network Solutions – Mobile asset utilization Solutions – Wireless – Fixed data applications z For the North American grid – Mobile voice & data applications Systems – Wired z For addressable applications z Scalable Solutions Smart – High priority first Energy z Resources & Experience – Layer additional projects NetworkNets z Utility processes & standards – Expandable to mass market – Canadian smart metering expertise – Multi-utility participation – Measurement Canada compliance Devices – Communication network expertise z – Energy networks issues Economic Development Services – Canadian labor base z terrestrial, frequency and through put planning – Canadian technology Smart Energy Network – Ontario-resident resources – Ontario industry growth

z Standards Compliance – Future ready – Supplier choice SMI Requirements Input

Solutions Systems

Smart Energy NetworkNets

Devices Services Smart Energy Network General Considerations

z Market – Regulatory minimum that support flexible and dynamic price signals z Operational – Utility and consumer features that ensure ease of operation and use z Future – Flexibility features that allow for sustainable growth and avoidance of stranded assets z Performance – Data quality and reliability, access-to-information z Standards and Compliance – Maximization of Open Standards (ANSI, IEEE, etc.) – Hurdles to ensure participation z Quality of Service – Outage frequency and response z Cost Smart Meter Infrastructure

BASIC SMI PRINCIPALS: z The market requirements for SMI, should anticipate an evolving market and the integrated communications relationship with energy consumer. z Under SMI the meter should become a smart point-of-service device and an integral part of the real-time distribution Grid. – SMI is not AMR or Meter Reading! – In addition to measuring load , it must be price signal and demand response ready, reliability response, quality-of-service preventative maintenance tracking (e.g. momentary outages) z To avoid stranded assets, SMI should be based on open systems principals using standards at every possible level, ensuring fair and equitable supplier participation both today and in the future. z SMI should be economically flexible, minimizing the current cost burden of future features SMI Requirements

1. Smart Energy Devices (meters) z Why? – Resident device allows – Interval data resident in the for data recovery in the device case of communication z Hourly for residential failure z 15 minute for commercial – Delivery of information z Bi-directional meter data support to non-web connected – Support variable interval periods consumer devices z Ability to change intervals as – Support for demand needed response – Hourly, 15 & 5 minutes intervals – Temporary granularity to support demand response periods and responsive customer EMS tools – 2-way communications SMI Requirement

2. Smart Reporting z Why? – Daily reporting – Different applications sources require different reporting periods: – Hourly z Billing – monthly z Customer Service – daily, – Peak period on-demand – Customer service requests – Outage for call centers operations – Change of service z Demand Response – Exception – May need hourly or exception reporting for verification – On-Demand z Customer – at least daily – On-line customer – Real-time information z as long as costs are considered z Quality of service – event – Filtered reliability information to assist service restoration, preventative maintenance z Settlements – daily SMI Requirements

3. Complete Automation Prioritizing over z Why? 50kW And Selective Demand – Complete automation Response Locations ensure fairness, – Geographic Coverage maximizes economies-of- z Urban, suburban, rural, mountainous scale – Commodity – Risk mitigation z Electric, heat, water, gas – Incremental cost on 50kW priority is likely under – Customer Classes $400 per commercial z Residential, schools, commercial, government customer and can have demand response benefits – Customer Sites 2 years earlier z Indoor, secure facilities, water pressure pumps, underground, high-rise, agricultural – Need verification (i.e. pumps), streetlights etc. information to support demand response – Variety of Meter Types and Suppliers programs, rate z Forms, suppliers development and program – Consistency with processes & procedures incentives z Labour practices, installation operating procedures, IT standards, change out, maintenance, customer communications SMI Requirements

z Why? 4. Economic Automation – Holistic costs and benefits – Capital Costs z Benefits derived from all participants z Equipment, installation, integration, customer notification – Operating Costs z Communications, replacement – Shared Benefits z Ability to deliver benefits to legacy applications, new systems and applications – Customer/Stakeholder Accessible z Web access, energy display z Complimentary, Compatible with Controls z Verification reporting access SMI Requirement

5. Adaptable Automation – maximize z Why? infrastructure that supports – Promotes broader participation demand response. – Protects against stranded – Standards Compliance assets z ANSI Metering Standards – Support for unforeseeable z Interoperable Among Operating Systems and Databases requirements z Data Exchange – Protect against operating z Web Access “bugs” – Remotely Configurable z Default and dynamic configuration – Remotely Programmable z New measurement requirements, reporting frequency, new network efficiency features, new programs and business practices SMI Considerations z Should the meter be a gateway? – Appliances – Load control –

NOT Necessarily Required – As long as there other paths

MAY BE BENEFICIAL, as long as… – It is economic, secure and equally-accessible and provides consumer benefit. – As long as it is based on standards Summary Recommendations

z Adopt industry standards on open smart metering infrastructure wherever possible z Advanced commercial meters with 15 minute data z Smart residential meters with a full billing cycle of interval data and 2-way communications z Variable reporting periods to support multiple applications and particularly demand response z Complete automation prioritizing 50kW and demand response locations z Maximize infrastructure that can support future needs for demand response End-To-End Solutions

Back Office Data Network Connectivity Smart Meter Integration Systems Commercial Smart Metering 1. Private Wireless ANSI Meters Gas Meters & 2. Public Wireless Secure Instruments Utility 3. Public Telephone Intranet 4. Wireless/Wireless 5. Telephone/Wireless Public •iDEN Rural Wireless •CDMA Network •GSM Utility Systems • MV-90 Private • LodeStar • Billing •DataTAC • EFM/SCADA •iDEN Multi-utility Wireless • CIS SCADA/DA Server Network (Instrumentation & IEDs) • Other Selective Urban/Suburban •PSTN •Paging

Smart Devices: Demand Response Gas Meter Gateway Multi-utility Electric Meter DR Control Telephone

Water Meter The Challenge Unify Diversity

1. Deliver Affordable and Reliable Solutions: – Multi-Utility Requirements z Electric, Gas & Water – Multiple Network Technology z Selective Networks – Telephone, Public Wireless z Shared Networks – Wireless WAN/LAN – New Applications z Commercial Smart Metering z Demand Response z Residential Smart Metering – Diverse Utility Legacy Systems

2. Deliver Implementable Programs SMART ENERGY NETWORK

Application Programs

Meter Data Systems

Networks

Meter AMR Devices Commercial System Architecture

Back Office Communication Integration & Data Servers Network Communication Electric & Gas Metering ANSI Standard Meters Under Glass

CellReader

ANSI &Non-ANSI C&I Meters

Public & Private CellGateway Networks • DataTAC, iDEN RS232/485 •CDMA/1XRTT •GSM/GPRS Gas Meters with Pulse Output • •POTS NC_L801

Secure Pulse Utility Intranet

Gas Instrumentation

TeleReader CellGateway Solutions

RS-232/485 Smart Energy Applications

STEP ONE: Targeted Programs z Commercial Smart Metering (CSM) z Residential Demand Response (RDR)

STEP TWO: Broad Scale Implementations z Residential Smart Metering (RSM)

STEP THREE: Shared, Incremental Programs z Share Utility Projects z Other Fixed Applications z Other Mobile Applications