Fixed Network Solution Overview. Chris Bernardi Sr. Product Manager Itron User s Conference October 20, 2008

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1 Fixed Network Solution Overview Chris Bernardi Sr. Product Manager Itron User s Conference October 20, 2008

2 Agenda What do you really need? The cash register analogy Business Drivers What is ChoiceConnect Fixed Network? Advanced AMR with ChoiceConnect Fixed Network

3 To Better Manage the Resource you need to Measure the Usage Frequently Utility Industry collects only monthly usage data from their customers. The Retail Industry has been measuring at the point of sale for years

Analogy: From Cash Registers to Scanners Original: Cash registers were simple devices for manual input Reasons for new technology: improve efficiency and data accuracy Additional value from

4 Analogy: From Cash Registers to Scanners Original: Cash registers were simple devices for manual input Reasons for new technology: improve efficiency and data accuracy Additional value from scanners: Supply chain management Inventory management Customer relationship management Result: Business process transformation through enterprise-wide application of point-of-purchase data

Perspective... The reality Compared to some other industries, the utility industry operates with less knowledge of how, when, and where customers use their product.

5 Perspective... The reality Compared to some other industries, the utility industry operates with less knowledge of how, when, and where customers use their product. The vision New technologies for collecting, managing and analyzing energy usage data create opportunities to improve efficiency and meet industry and regulatory objectives.

6 Applying Transformational Energy Intelligence Sharing knowledge across boundaries gets the right information, to the right people, at the right time, in the right form. Use it to > optimize delivery > optimize use > optimize operations > optimize market operation

7 Not just a Meter Read An Energy Information System Itron believes in leveraging accurate and timely information to transform utility performance through knowledge. Data Creation Data Collection Data Management Data Analysis Metering Meter Data Collection Meter Data Management Knowledge Applications Timely Data Usable Data Useful Data Bottom line: Superior utility performance is enabled where data is converted to relevant knowledge; a digital revolution is occurring across the utility value chain.

8 Business Drivers

9 Traditional Business Drivers Meter Reading Cost & Efficiency - Cost per read Revenue Cycle Improvement - Meter to cash Deregulation - Daily Settlement Operational Improvements - Off-cycle reads Revenue Protection / Theft Detection - Tampers

10 Current and Emerging Drivers Supply Concerns - Shifting demand strategies Reliability - Outage notification and restoration Public Policy - Regulatory and legislative landscape Security - Heightened awareness and requirements Customer Service - Increases in service levels Increasing Uncollectible Revenues - Role of rate recovery Meter Data Management - Now seen as a key strategic resource

11 Advanced AMR Defined Advanced Automated Meter Reading Provides interval data for TOU and demand response Supports daily or more frequent readings Higher levels of reading accuracy and efficiency Reduce operational costs Outage Detection and Reporting Presentment of usage data to customers for informed decisions Does not dramatically change what it is that utilities do, but to do it better Advanced Metering Infrastructure ( AMI ) Business transformation at enterprise level Focuses on utility side for savings AND customer action for conservation Two-way communications to meters and fully addressable endpoints In-home communications for direct load control Smart grid

Why Advanced AMR Advanced AMR is optimized for utilities; Focused on reducing operational costs That must justify a business case for automation With immediate operational problems to solve Wanting

12 Why Advanced AMR Advanced AMR is optimized for utilities; Focused on reducing operational costs That must justify a business case for automation With immediate operational problems to solve Wanting the flexibility to get monthly read or interval data Seeking advanced theft detection Concerned about outage management Considering advanced billing or rate options for residential customers That want to share usage information with customers Striving for customer service improvements

customer service and billing Positive outage & restoration notification Flexibility to deploy surgically or to

13 Fixed Network Advantages Collect daily consumption reads Collect interval data messages from electric meters Improved tamper detection through frequent collection of tamper & usage information Timely on-request reads for customer service and billing Positive outage & restoration notification Flexibility to deploy surgically or to fully saturate your territory Endpoint interoperability with Itron handheld & mobile solutions Network Collector (CCU)

14 Fixed Network Migration As meter data needs change overlay fixed network for advanced metering, selectively or territory wide Add MDM for more analysis tools and storage Add demand response devices

15 Architecture of the Fixed Network Collectors Timestamps all data and events using GPS. Repeaters Cost Effective, Flexible, Increases network redundancy and read reliability Endpoints and Meters Over 62 million Endpoints and meters deployed Proven technology. Flexible WAN Options GPRS, Wi-Fi, Fiber, Ethernet, other private IP based networks Fixed Network Administrator Transitory Database provides filtering, short term storage, and event/alarm processing User Interfaces- Provide system administration, reporting and Fixed Network management tools

16 Collector and Repeaters Pole Mounted Repeater Decorative Light Repeater CCU with Motorola Canopy at Tucson Electric Power Wall Mounted Repeater

17 Inherent System Redundancy CENTRON/100G to CCU ½ mile CENTRON/100G to Pole Repeater ¼ Mile Pole Repeater to CCU ¾ Mile Typical CCU spacing 1-1 ½ Miles Average 3x Redundancy

Timely tamper and usage information to improve detection Areas where advanced metering

18 Deployment Considerations Areas with high turnover Universities, Apartment complexes Areas where outages are common (momentary and sustained) Areas were theft is suspected. Timely tamper and usage information to improve detection Areas where advanced metering and billing are required Collect interval data to support advanced billing (TOU, CPP, Demand)

19 Outage and Restoration Detection Outage and Restoration Challenges Identify and respond to outages sooner Reduce OK on Arrivals Diagnose nested outages Support analysis of Momentaries & Sustained Outages for external reporting purposes How Fixed Network Can Help Outage and Restoration alarming from the meter Power Verification Requests Power Restoration flags in IDM messages Outage indicated visually in the User Interface Outage Statistics & Blink Reporting CCU Outage Alarming Receive a daily report with the total amount of outages, time and duration of each

Omaha Public Power District- Storms in June 2008 Utilized Itron Fixed Network and MC to determine the scope of the outages and monitor restoration efforts.

20 Omaha Public Power District- Storms in June 2008 Utilized Itron Fixed Network and MC to determine the scope of the outages and monitor restoration efforts. OPPD validated outages using Network data and by creating MC routes, by circuit. Drove the MC through affected areas and determined what homes were without power. They reconciled this data with the data in their OMS. Estimate that the PON/AMR functionality will reduce outages by 5 minutes per residence per year. Estimated that outages cost OPPD 20 cents per minute so $1 savings per customer per year = over $250,000 in annual savings.

21 Fixed Network & Meter Data Management Long term storage Analytics of interval data Calculates TOU and Demand using IDM Analysis for usage profiling, trending, reporting Stores outage and restoration data for utility performance metrics (MAIFI, CAIDI, SAIDI)

22 Fixed Network & Demand Response Introduce 3 rd party load control devices to facilitate Demand Response programs Deploy load control/smart thermostats/remote connect/disconnect where you need it, not burdening entire system In home displays

Advanced Metering with Fixed Network Advanced metering for low cost Demand management Time-based rates support Advanced meter analysis Improve customer service Present meter data to customers for

23 Advanced Metering with Fixed Network Advanced metering for low cost Demand management Time-based rates support Advanced meter analysis Improve customer service Present meter data to customers for informed usage decisions Positive outage notification Resolve bill complaints with usage data Operational advances Off-cycle reads, on-request reads Reduce field work for meter reading Staggered deployment schedules to spread costs Avoid stranding field assets when migrating systems

24 Questions? Thank You! To know more, start here:

The Value of Enterprise Meter Data Management Phyllis Batchelder Itron, The Netherlands

The Value of Enterprise Meter Data Management Phyllis Batchelder Itron, The Netherlands Topics The Evolution of the Value of Meter Data Business drivers for an Enterprise Meter Data Management Solution