COMMUNICATIONFOR THE

SMART GRID

Your Power. Your Data. One Wireless Network.

Eric MurraySenior VP, Sales & Business Operations

Smart Metering West CoastAugust 2007

w w w . t a n t a l u s . c o m

Facing Challenges

Increasingly complexbusiness and technology

environment

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

Change Drivers

Multiple SourcesMultiple Uses

Driving Change

» 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

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

Smart Meter Evolution

Moving Forward

Need to embrace proactive business practices to

streamline operations & improve efficiency.

» 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

Smart Meter Essentials

What Makes a Meter “Smart?”

1. Interval measurements: – what was consumed and when

2. Automatically transmits data: – no manual reads

3. Capable of two-way communications: – listens & talks

4. Over the Air Reconfiguration

What Makes it a Smart Network?

1. Scaleable capacity as applications grow

2. Multiple applications, running simultaneously

3. Supports device interaction – asset synergy

4. Delivers operational enhancements

5. Enables other applications through data

6. Evolves as Drivers Change (Evergreen)

Defined: a meter that

can intelligently measure electric, gas or water consumption and interact within a

Smart Network.

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.

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 ApplicationsOptimize Information.

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

Chatham-Kent Hydro

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.

Winner 2006 :: Utility Planning Network Best Metering Data Integration Initiative

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

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

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

Saint John Energy

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.

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

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!

Multiple SourcesMultiple Uses

Driving Change

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

Your Power. Your Data. One Wireless Network.

www.tantalus.com

Eric MurraySenior Vice PresidentSales & Business Development

emurray@tantalus.com

Thank You