Business Impact of Using the Remote Disconnect Switch October, 2013

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1 Business Impact of Using the Remote Disconnect Switch October, 2013

2 Agenda Introduction Advanced Metering System Use of the Remote Switch Benefits What s Next? 2

3 CenterPoint Energy (CNP) Headquartered in Houston, Texas Serving 5.5 million electric & gas metered customers $22.8 billion in assets $7.5 billion in revenue More than 8,700 employees Over 135 years of service to our communities Electric transmission and distribution delivery business Electric Transmission & Distribution Natural Gas Distribution Interstate Pipelines Field Services Competitive Natural Gas Sales & Services Over 2.2 million metered customers in Houston area 17.3 GW peak demand 79 GW hours delivered annually 233 substations 3,739 miles of transmission 49,162 miles of distribution CNP owns a 58.3 percent limited partner interest in a midstream partnership - Enable Midstream Partners which closed on May 1, 2013, consisting of OGE s midstream business, Enogex LLC, and CenterPoint Energy s interstate pipelines and field services businesses, other than a percent interest in the Southeast Supply Header pipeline retained by CNP. 3

4 Understanding the Texas Electric Market Power Generating Companies Retail Electric Providers (REPs) Unregulated Transmission and Distribution Utilities (TDUs) Regulated Own and maintain power lines Deliver power to customers Read meters Restore power after outages Deliver data Execute disconnect, reconnect and off-cycle read orders Residential Customer Step-down Substation Unregulated Compete for customers Bill customers Issue disconnect, reconnect orders to TDUs Commercial Customer Responsibilities in red utilize the remote disconnect switch 4

5 Advanced metering systems in the Texas Electric Market Smart Meter Texas portal & repository Meter / HAN Services ERCOT Retail Electric Provider Market / Settlement Transactions Retail Electric Products & Services Pre-pay Time of use rates Energy analysis tools Meter / HAN Services (15-Minute Meter Readings) Market/Settlement Transactions Home Gateway Digital meter Consumer In-Home Display CenterPoint Energy AMS network Thermostat ZigBee Meter Data Management Smart Appliances PHEV 5

6 Components of our Advanced Metering System (AMS) Digital Communications Backhaul Data Collection Engine (Itron DCE 3.0) Meter Data Management System (emeter MDM 7.5) Itron Open Way HW 2.0 SR 3.0 Legacy Systems Wireless Communications Environment (GE WiMax) Legend Existing Deployed Smart Meter Texas Portal Combined with back office computer systems and integration, our AMS provides: Daily register reads Remote connect / disconnect / on-demand reads Daily 15 minute interval reads Access to data via Smart Meter Texas portal 6

7 Utilization of the Remote Switch Applies only to 200 amp and below service (93% of our metered customers) Over 2 million service orders are requested per year DNP and Reconnect (52%) Move-in and Move-out (18%) During deployment, use of remote switch began as soon as the meter was provisioned (about 3 days after install) Orders that fail when using remote switch are retried for a period of time before being turned-down and sent to the field for execution by a line crew Real-Time monitoring and diagnostics of service order success is critical Measure and report actual performance Identify and resolve technology issues rapidly Digital meter Cell Relay Take Out Point Inform field management that service orders are coming their way 7

8 Remote Switch Performance Number of Orders Completed Electronically 25,000 20,000 15,000 10,000 5,000 0 Digital meter Cell Relay Take Out Point 8 7/22/09 9/22/09 11/22/09 1/22/10 3/22/10 5/22/10 7/22/10 9/22/10 11/22/10 1/22/11 3/22/11 5/22/11 7/22/11 9/22/11 11/22/11 1/22/12 3/22/12 5/22/12 7/22/12 9/22/12 11/22/12 1/22/13

9 Remote Switch Performance Percent of Orders Completed Electronically % % % % % 80.00% 60.00% 40.00% 20.00% 0.00% Digital meter Cell Relay Take Out Point 9 7/22/09 9/22/09 11/22/09 1/22/10 3/22/10 5/22/10 7/22/10 9/22/10 11/22/10 1/22/11 3/22/11 5/22/11 7/22/11 9/22/11 11/22/11 1/22/12 3/22/12 5/22/12 7/22/12 9/22/12 11/22/12 1/22/13

10 Error/Failure Analysis Turn downs are analyzed and categorized daily by type of order and by error category Typical error categories include: Request timed out communication delay or failure Possible tampering load side voltage detected on a disconnect (potential jumpers) No response communication failure Production monitoring alerts provide notice of issues to various levels of the organization Sophisticated retry logic is used before turning down orders to the field Digital meter Cell Relay Take Out Point 10

11 Example Daily Performance Report 9/4/2013 at 7:00am There were 21,695 orders for execution on Tuesday 9/3/13. 20,699 of them executed successfully through the MDM and 913 were successfully cancelled for a total % success rate. 83 were turned down and sent to mobile. Successfully cancelled Retail Provider sent us a DNP cancellation or matching move-in following a move-out. 83 truck rolls were required compared to 20,699 that would have been required pre-ams

12 Benefits Over 2 million service orders are requested per year DNP and Reconnect Move-in and Move-out Off-cycle reads Electronic completion of service orders is faster Over 6 million to date Average time to execute was about 2 days, now < 30 min. Response to increased market expectations Service reconnects are now performed 7x24 (was 6x12) Faster recognition of potential tamper/diversion $24 million annual reduction in service order fees to customers Over 600,000 gallons of fuel saved Over 5,400 tons of CO 2 emissions avoided Reduced risk of employee driving or safety incidents Digital meter Cell Relay Take Out Point 12

13 Television - Move-in

14 CNP is being recognized as a leader in Smart Grid 14

15 Greentech Media ranks CNP tops in Smart Grid maturity 15

16 What s Next? Smart Meters HAN Devices Smart Meter Texas Phase 1: Customer Insight Biggest Energy Saver Power Alert Service Customer Vision Platform Phase 2: Customer Engagement Analytics Awareness Analytics Prediction Phase 3: Additional Value Advanced Self-Healing Grid ADMS and Infrastructure Aggr Demand Mgmt Volt/Var DR Pilot Before

17 DOE Acknowledgement and Disclaimer Per the DOE Grant Agreement,: If you publish or otherwise make publicly available the results of the work conducted under the award, an acknowledgment of Federal Support and a disclaimer must appear in the publication of any material, whether copyrighted or not, based on or developed under this project, as follows: Acknowledgment: This material is based upon work supported by the Department of Energy under Award Number [DE-OE ] Disclaimer: This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Referenced herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinion of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. 17

18 Office: Cell:

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