AMIs place in the future AMI is THE

AMIs place in the future AMI is THE

AMIs place in the future AMI is THE key enabler for the future smart grid The intelligent grid is not intelligent without AMI Customers are not empowered without AMI The grid cannot be optimized without AMI There is no true electric market without AMI Electricity & gas can never be utilized in an efficient, environmentally responsible manner without AMI DR is not enabled efficiently for the mass residential market 1 Interoperability = Future Proofing Endpoints Must last minimum 15 years (20-25 preferred) Two-way Downloadable firmware & Downloadable reconfiguration Strategic & Intelligent deployment (network topology and operation considered for each endpoint choice) Communication network Two-way with future interoperability capability Constant R&D and evolution Always backwards compatible (cant obsolete endpoints) Leveraged to limit number of networks within utility enterprise Easily integrated into utility backbone communications infrastructure Data Standards

Hardware/Comm always change Data has to be there Increased leverage of data for enterprise value must be delivered Integration Enterprise considerations for full value proposition. Long-term view key to success in incremental advancement of enterprise integration. 2 EPRI ESFF AMI is the first step in this transformation 3 Enabling the Reality of Advanced Infrastructure Baseline AMR Benefits Baseline Benefits for walk-by/drive-by systems Meter Operations Reduction labor force Workers issues Fewer bills 4 in Comp estimated Meter Reading Reduction in clerical staff Revenue Management Customer Service

& Billing Compressing More Database Less Read-to-Bill time cleanup unbilled customers More accurate metering devices accurate meter reads estimated readings Faster reads off-cycle Enabling the Reality of Advanced Infrastructure Baseline AMI Benefits Basic Benefits of Fixed Networks Operational Improvements Outage Management Capabilities Leak Detection Theft

Detection Decreased cost of tenant turnover and off-cycle reads Bill reconciliation (in deregulated market) Trouble call reduction 5 Supply-Side Savings Load balancing and forecasting Distribution / Transmission Planning Asset management and utilization Transformer Load Management New Revenue

Opportunities Notification monitoring services / Power outage / water and gas leakage Threshold alerts Online customer profiles Consolidated Billing Customer Service Improvements Billing dispute resolution Increased number of pricing plans Billing cycle flexibility Enabling the Reality of Advanced Infrastructure Advanced AMI Benefits Advanced Benefits of Fixed Networks Operational Improvements

Supply-Side Savings Distribution Demand- SCADA Spinning Automation Functionality Application Water Electric Capacitor Controls Control Automated Switches Advance Power Quality monitoring 6 Response programs Reserves Load control solutions Additional Asset management and

utilization New Revenue Opportunities In-Home Displays Customer Service Improvements Physical Remote connect / disconnect In-Home Displays Smart Thermostats Pre-Payment Closing the Gap Future Device Enablement For every 1,000,000 meters there are approximately: 200,000 distribution transformers. 5:1 250+ substations 1000+ dist feeders 5000+ dist switches Thousands of reclosers Thousands of capacitor banks Thousands of switchgear Thousands of fault circuit indicators Tens of thousands of fuses Thousands of vaults Etc etc etc etc 7

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