HOW THE TRADITIONAL UTILITY MODEL IS BEING CHALLENGED BY DISRUPTIVE TECHNOLOGIES

Description

Today’s energy company is not the same company it was 30, 40 or 50 years ago. The Exelon family of companies has had a long history of proven reliability and performance that had to evolve along the way to meet customer demands.

With the increased popularity of distributed generation (solar, wind, biodiesel, etc.) along with introduction of micro grids, these resources are helping to change the foundation of the traditional utility to meet the demands of our modern economy.

Objectives

Topics of Discussion:• Brief overview of utility business• New trend and challenges in the utility business• Learn how clean energy, distributed generation and microgrids

have changed the landscape• New opportunities created by advanced grid technology• New opportunities for today’s engineering minds

Learning Objectives:• Understand the changes and challenges in transmission and

distribution world • Understand how new technology is being used to streamline

internal processes and improve customer experience

Meet Your Presenters

• Christina Barker, Senior Engineer (PECO)

• Eric Borden, Senior Engineer, NERC (Pepco Holdings)

Our Strategy, Defined

Exelon’s strategy is to:

Leverage our integrated business model to create value and diversify our business.

Each of our businesses features a mix of attributes that, when combined, offer our shareholders, customers and employees a unique value proposition:

• Our utilities – BGE, ComEd, PECO and Pepco Holdings provide a foundation for stable earnings and dividend support, which translates to a stable currency in our stock.

• Our competitive businesses in Exelon Generation and Constellation provide exposure to power and gas price upside and a platform to diversify into promising markets and technologies, while providing residual dividend support.

Get to Know the Exelon Family of Companies

Exelon Corporation: Company at a Glance

NEW CHALLENGESNew Technologies

Transmission & Distribution: Introduction of Wind & Solar Generation • Introduction of Solar and Wind generation has changed what is called

the “fuel mix” available to produce electricity.• Solar and Wind capacity cleared for 2017/2018 in PJM market has

almost doubled compare to 2012/2013 year period

Transmission & Distribution: Introduction of Wind & Solar Generation (Cont.)

• Renewables may introduce some challenges especially in the areas where these resources are concentrated

• Economic challenge to the traditional power plants (fossil, gas, nuclear)• Frequency due to less “steel in the ground”

• Operational challenges of electric distribution system• High Voltage, particularly during midday light load periods where maximum solar output is

expected• Distribution systems availability during periods of solar/wind reduced or non-existent generation

• Transmission Planning challenge

• Resource Variability (associated with some unpredictability/uncertainty) especially during peak hours

• Lack of large-scale economical storage capability.

• Several studies and reports have indicated that technology improvement from better weather forecast to advanced electronic controls are making it easier for both grid operators and planners to deal with the above challenges

ADVANCED GRID IS HERE!Exciting News:

Grid Evolution: 20th Century vs. 21st Century20th Century Grid 21st Century Grid

“Blind” Self-monitoring

Built for centralized generation Accommodates distributed generation

Check equipment manually Monitor equipment remotely

Electromechanical Digital

Emergency decisions by committee and phone Decision support systems, predictive reliability

Few customer choices Many customer choices

Few sensors Monitors and sensors throughout

Limited control over power flows Pervasive control systems

Limited price information Full price information

Manual restoration Semi-automated restoration and, eventually, self-healing

One-way communications (if any) Two-way communications

Prone to failures and blackouts Adaptive protection and islanding

Radial topology Network topology

What is Smart Grid?

Generation Transmission Distribution Consumers

A gas and electric transmission and distribution system

Integrated with communicationsand IT Networks For the purpose of . . .

What is Smart Grid?

Automation•Distribution•Substation•Auto-restoration•Capacitor Control

Fault Locating•Remote Indication

•OMS Integration

Outage Management•Outage Notification

•Restoration Notification

Line Loss Reduction•Reduced losses through volt / VAR management and circuit reconfiguration

Equipment Monitoring•Temperature•Load•Voltage

Telecom•Voice• Internet•Video

Improvements in utility operations, and . . .

What is Smart Grid?

Renewable Energy•Solar•Wind

Distributed Generation•Micro-Turbines

•Local generation

Vehicle to Grid•PHEV•EV

In-Home Displays•Smart Pricing •Real Time Pricing

•Event Notification

Energy Storage•Batteries•Fly Wheels• Ice

Demand Response•Thermostats•Load Control Switches

Home Area Networking•Appliances•HVAC•Lighting

…support of consumer products to enable cost savings and conservation.

What Does Smart Grid Do?

Customer Gateway• Advanced Metering

Infrastructure (AMI)

Customer End-Use• Advanced Pricing & Billing• In-home Devices

Grid Modernization• Distribution Automation• Smart Substations• Renewable Interconnection

Distributed Energy• Plug-in Hybrid

Electric Vehicles• Self-generation

Smart Home/Business• In-premise network composed

of smart devices and equipment that respond to the price of energy

• Distributed energy devices to offset usage or sell back into grid

Smart Utility• More efficient data

collection, processing and back office functions

• Asset utilization strategies (PM, CM, run-to-failure)

Smart Meters (AMI)• Time of usage and bi-

directional measuring• Two-way data flow into/out of

the premise• Power on/off status, tamper

status and other meter events

Smart Distribution System• Real-time reporting of status and

outages• Automated controls of relays and

reclosers. Efficient field force management

• Effective interconnection of distributed energy sources

Leveraging integrated communication systems and information processing is critical

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What’s Important to the Customer?

J.D. Power measures customer satisfaction with electric and gas utility companies by examining six factors: • Power Quality and Reliability• Price• Billing and payment

• Corporate citizenship• Communications• Customer service

Key Benefit: Power Quality and Reliability• Smart grid technologies are helping utilities to speed outage restoration following

major storm events• Reduce the total number of affected customers, • Improve overall service reliability to reduce customer losses from power

disruptions • Smart meters provide meter “pinging” capability, which allows the utility to

determine when a meter is in service. • Utility can avoid expending resources to verify customers have service• Saves resources, reduces cost and reduces outage restoration time

• Customers can see outages on an outage map on their phone or computer• Utilities can text outages to customers and notify them of the outage with an

estimated time of restoration• A Smart Grid system supports the installation of microgrids, which are localized

grids that can disconnect from the main grid to operate independently during outage events.

Summary of Benefits for Customers• Fewer and shorter outages with better communication• Consumer savings, choice and control with advanced meters,

consumers could save on energy costs by:

• Better managing energy use• Using new energy management technologies, such as smart appliances

or home area network devices• Participating in available pricing structures and programs for smart

meters• New technologies available like Smart Street Lighting and Distributed

Generation

JOIN THE EXELON TEAMLooking for More?

Our Innovation Pillars

The Exelon Promise – Diversity and Inclusion

Diversity and inclusion is one key to our success. Companies have stronger collaboration and achieve better business performance from diverse groups of employees. In the crucial skill sets of problem solving, conflict resolution, vetting ideas and creativity, diversity always wins.

Five goals compromise the Diversity & Inclusion strategy.Workforce, Workplace, Suppliers, Communities, Leadership

Exelon’s Enterprise-Wide Intern Program

• Program tracks include Engineering, Finance, IT, Retail, Corporate, and MBA.

• Many of our interns complete multiple internships at Exelon and go on to receive offers for full-time positions with the company upon graduation.

• The internship is a 10 week, paid program. • The 2017 program will run from June 5 - August 11

What to expect as an Exelon Intern

Academic Learning: Interns will work on value-add projects that will allow them to apply knowledge learned in the classroom to the workplace. At the end of the summer, they will present their projects to a panel of business leaders and their peers.

Skill Development: Exelon internships mirror full-time positions, and will allow interns to develop decision-making and critical thinking skills, increased confidence and self-esteem. Continuous feedback is integrated into the program, through initial Goal Setting, Mid-Term Evaluations, and End of Summer Evaluations.

Career Development: Opportunities to meet and interact with Exelon employees helps interns gain knowledge of the qualifications and duties of specific positions so students can explore their interest in the field.

Peer Networking: Organized intern program events provide an opportunity for interns to get to know each other in a more casual environment. Typical events include a plant/site tour, community service outing, and intern picnic.

2017 Summer InternshipsExelon is currently seeking highly motivated students for summer internships. Paid internships will last approximately 10 weeks between June and August 2016. Interns will work on projects designed to help them gain real-world, hands-on experience.

We are seeking students who meet the following criteria:• Currently enrolled in Bachelor’s or Master’s program• Minimum GPA: Cumulative 2.8/Major 3.0• A track record of outstanding academic performance• Eagerness to contribute in a team-oriented environment• Ability to work creatively and analytically in a problem-solving environment• Excellent leadership, communication (written and verbal) and interpersonal skills 

Engineering Majors Include:

Non-Engineering Majors Include:

• Mechanical Engineering• Electrical Engineering

• Business• Computer Engineering• Computer Science• Cyber Security

• Economics• Finance/Accounting• Information Systems• Marketing

• Mathematics• Statistics• Supply Chain

Thank You!

Any Questions?

Visit Exelon at Booth 208www.exeloncorp.com/careers

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