Learn from the results of the Duke Ohio’s Auditor’s Assessment and other case studies from around the world where real utilities are performing at 99.7 – 100% levels of reliability daily, and achieving the business case benefits of a smarter, future-proof grid. Learn about: * The true value of having a proven communications network that delivers true reliability on day 1 of deployment * The connection between having a reliable and multi-application grid * Research and observations from MetaVu from recent smart grid assessments

1. THE TRUE VALUE OF GRID RELIABILITY
WEBCAST

2. Agenda
 True Value of Grid Reliability
 Paul Alverez, Principal and Practice Leader MetaVu
 Role of Communications in a Reliable Grid
 Jeff Norman, Senior Consultant, Emerging
Technologies, SAIC
 Reliable Energy Control Networking Platform
 Sebastien Schikora, Director Product Management,
Echelon
E h l
 Q&A
2

3. True Value of Reliability
l f li bili
The Role of AMI and Benefits to Customers
Paul Alverez, Principal and Practice Leader
p
MetaVu, Inc.
M t V I
2240 Blake Street
Denver, CO USA 80205
+1.303.679.8340
www.metavu.com

4. About MetaVu
Celebrating 10 years of sustainable business excellence
Environmental & Social Responsibility Advisory Build the
• Corporate sustainability strategy & planning Business
Case &
• SSustainable operations execution
i bl i i Roadmap
• Environmental/Social/Governance
Smart Grid
performance and benefits evaluation Optimize
Experience Implementation
Utility Practice Focus Areas
Measure
• Renewable generation & energy strategy Performance,
Value
• DSM program design and optimization
• Smart grid planning execution and
Smart grid planning, execution, and
performance measurement “Smart Innovator Award – Top Sustainability Consultant”
Representative MetaVu Clients….
© 2002 ‐ 2011 MetaVu, Inc. Echelon Webinar: True Value of Reliability │ 4

5. Smart Grid Performance and Value Measurement
Comprehensive, Independent Deployment Assessments
Duke Energy Ohio Xcel Energy SmartGridCity™
• 800,000 premises • 46,000 premises, half with AMI
• Full AMI and DA • Full DA on selected feeders
• Scope of Assessment • Scope of Assessment (by Capability)
 Estimated economic benefits: Fuel,  Actual economic benefits: Fuel, Capital,
Capital, Expenses, Revenue Capture Expenses, Revenue Capture
 Estimated reliability benefits
Estimated reliability benefits  Actual non economic benefits: reliability,
Actual non‐economic benefits: reliability,
environmental, safety
 Meter accuracy and RF emissions
 Relative value of capabilities from
 Cyber security guideline conformity
customers perspective (market research)
customers’ perspective (market research)
 Systems/operations integration level
 Organizational and operational change
• Public version of report released management in event of roll‐out
June 30 on PUCO website
June 30 on PUCO website  Projected roll‐out costs based on actual
© 2002 ‐ 2011 MetaVu, Inc. Echelon Webinar: True Value of Reliability │ 5

6. Two‐way Data Flows in AMI systems
Utility
Backhaul
Today’s Topics
(AMI) Reliability Opportunities
• Meter Polling
• Voltage Exception Reporting
• Interval Data Aggregation
• Sectionalization
S ti li ti
Customer
Premises
Smart
Meters
Data
Collectors
‘Big Picture’ findings on Reliabili
© 2002 ‐ 2011 MetaVu, Inc. Echelon Webinar: True Value of Reliability │ 6

7. Meter Polling
Goal:
• Identify Outage Locations Faster
• I
Improve Extent Prediction
E t t P di Utility
ti
Backhaul
Reliability Benefits:
• Faster Time to Restoration
Economic Benefits:
• Increased Revenue Capture
Customer Smart Data
• Reduced Restoration Costs
Premises Meters Collectors
© 2002 ‐ 2011 MetaVu, Inc. Echelon Webinar: True Value of Reliability │ 7

8. Voltage Exception Reporting
Goal:
• Proactively identify
power quality issues
lit i Utility
Backhaul
Reliability Benefits:
• Dramatically reduce
power quality complaints
Economic Benefits:
• Reduces investigation costs
Reduces investigation costs
Customer Smart Data
Premises Meters Collectors
© 2002 ‐ 2011 MetaVu, Inc. Echelon Webinar: True Value of Reliability │ 8

9. Interval Data Aggregation
Goal:
• Improve distribution
capacity planning
it l i Utility
Backhaul
Reliability Benefits:
• Identifies capacity
issues before outage
issues before outage
occurs
Economic Benefits:
• Prioritizes and right‐sizes
Customer Smart Data
Premises Meters Collectors capacity upgrades
© 2002 ‐ 2011 MetaVu, Inc. Echelon Webinar: True Value of Reliability │ 9

10. Open
Sectionalization
Goal:
Power Flow
• Reduce number of
F
customers impacted by
an outage
P Reliability Benefits:
Reliability Benefits:
• Reduces Customer
Minutes Out
Closed
Economic Benefits:
Economic Benefits:
• Increased Revenue
Customer Smart Sectionalizers Switches
Premises Meters Substations
© 2002 ‐ 2011 MetaVu, Inc. Echelon Webinar: True Value of Reliability │ 10

11. Open
Sectionalization
Goal:
• Reduce number of
customers impacted by
Reliability Benefits:
an outage
• Reduces Customer
Economic Benefits:
Minutes Out
• Increased Revenue
Closed
Customer Smart Sectionalizers Switches
Premises Meters Substations
© 2002 ‐ 2011 MetaVu, Inc. Echelon Webinar: True Value of Reliability │ 11

12. Closed
Pow Flow
Sectionalization
wer
Goal:
• Reduce number of
w
customers impacted by
an outage
Reliability Benefits:
y
• Reduces Customer
Minutes Out
Economic Benefits:
conomic enefits:
Open
• Increased Revenue
Customer Smart Sectionalizers Switches
Premises Meters Substations
© 2002 ‐ 2011 MetaVu, Inc. Echelon Webinar: True Value of Reliability │ 12

13. The Big Picture
Additional Perspective on Smart Grid‐Related Reliability Issues
• Reliability improvements significant in percentage terms, but
not likely enough for customers to perceive
 99.95% reliability = 4.4 hours out per customer per year
 A 20% improvement translates into 3.5 hours
• Beauty (reliability value) is in the eye of the beholder
• The law of diminishing returns applies (big time!)
g pp ( g )
• Smart grid’s greatest reliability value may lie in the future
 Distributed Generation (PV Solar) and Storage
Distributed Generation (PV Solar) and Storage
 Electric Vehicles
• What’s the value of an insurance policy on future reliability?
What s the value of an insurance policy on future reliability?
© 2002 ‐ 2011 MetaVu, Inc. Echelon Webinar: True Value of Reliability │ 13

14. Thank You
Paul Alvarez
Principal and Practice Leader
Principal and Practice Leader
MetaVu, Inc.
pja@metavu.com
303 679 8340
303‐679‐8340
14

15. Energy Consulting and Engineering
September 21, 2011

16. Agenda
 Introduction to SAIC
 Energy Consulting and Engineering
 Emerging Technologies
g g g
 Benefits of developing a communications
approach to enhance grid reliability
16

17. SAIC
Energy Consulting and Engineering
We are a group of technically based engineers and business
We are a group of technically based engineers and business
consultants serving public and private industries and financiers
worldwide. We develop sustainable solutions specific to engineering,
economic, financial, planning, operational, and organizational
, ,p g, p , g
challenges.
We are part of SAIC, an $11 billion science, engineering, and
technology company serving the energy, health, environment, and
defense industries.
17

18. SAIC
Industry Rankings
Engineering News Record, 2011
#8 Top 50 in Program Management
#9 Transmission & Di t ib ti
T i i Distribution
#14 Top Construction Management for Fee
#19 Top 200 Environmental Firms
#20 Top 20 Firms in Combined Design and CM/PM Professional Services
#21 P
Power
#42 Top 500 in Design
#61 Top 100 in Design-Build
FORTUNE, M
FORTUNE March 2011
h
#5 World's Most Admired Companies: Information Technology Services
Newsweek, October 2010
#192 500 G
Greenest Bi Companies i A
t Big C i in America
i
Verdantix, 2010
#4 Green Quadrant Sustainable Engineering Firms
CM/PM = Construction Management/Program Management
18

19. SAIC
Utility Life-Cycle Support Services
Life Cycle
Independent and Systems
Information
Consulting Owner’s Engineering and Design-
Design-Build Technology
Engineering Integration
• Smart grid roadmap • Project valuation • Requirements • Renewable energy • Application
• Stakeholder • Specification definition, design, plants management
facilitation development systems engineering • LEED® building • Infrastructure
and integration projects management –
• Strategic messaging • Developer selection
• Program and project • Energy efficiency telecommunications/
• Capital investment • Independent management networks/NOC,
planning and engineering for projects
• Micro grid design desktop, help desk
management lenders, developers, • Community energy
owner’s engineers and implementation efficiency design • ERP/enterprise
• Transmission systems support
planning and market • Due diligence • Grid operations, • Critical infrastructure
rules support decision support projects • CIS, MDMS, asset
systems, integrated management, GIS
• Rates • Procurement distributed
di t ib t d energy • Build own operate
Build, own, operate, implementation and
i l t ti d
• Power markets, fuels management resources, load maintain business integration
market • AMI, EMS, GIS, management, models
• Business process re-
• Revenue bond SCADA, T&D SA demand response engineering
finance selection and • Cyber security and
implementation • Project management
• Business process information and integration
oversight
i ht assurance
modeling • Outsourcing
Research & Development: Wave, Wind, Solar, Algae, Data Mining/Decision Support, Data Analytics
AMI = advanced metering infrastructure; CIS = customer information system; EMS = energy management system; ERP = enterprise resource planning;
GIS = geographic information system; MDMS = meter data management system; NOC = network operations center; SCADA = supervisory control and data acquisition;
T&D SA = transmission and distribution security architecture;
LEED i a registered t d
is i t d trademark of th U.S. Green Building Council i th U S and/or other countries.
k f the U S G B ildi C il in the U.S. d/ th ti
19

20. Emerging Technologies
Smart Grid Infrastructure
Services offered: Technologies evaluated:
 Technology screening and prioritization  Smart Grid communications infrastructure
 Technology due diligence  Home area networks (HANs)
 Technical and business case analysis  Home energy management systems
 Vendor partnership development (HEMS)
 Pilot and technology demonstrations  Distribution line sensors
 Bench and field testing
 Transformer monitors
 Plug-in electric vehicles (PEVs)
 Smart meters
20

21. Emerging Technologies
Key Strategies Drive Smart Grid Efficiency
 Use a standards-based approach
 Apply standards in developing smart grid infrastructure to
economic and longevity reasons.
 Use IP-based communications systems
IP based
 Apply Internet-based protocols (where available) as the standard
for transport layer.
 Buy versus build
 Utilize existing publicly available communications infrastructure
where it makes sense.
 Used distributed processing/intelligence systems
 Distribute processing/intelligence to help alleviate latency and
cost-of-transport issues associated with heavy volumes of data.
p y
21
Source: Duke Energy

22. Emerging Technologies
Smart Grid Architecture
Source: Duke Energy, “Developing the Communications Platform to Enable a More Intelligent Grid” WEBINAR
22

23. Communications Approach
Benefits of Using Public Carrier Networks
Real‐time communications
Real time communications Average latency of milliseconds (1)
‐A l f illi d
Large coverage ‐ 98% US population is covered (2)
Standard‐based ‐ Backed by 3GPP & 3GPP2 bodies
$ Affordable cost ‐ Connectivity cost decreasing continuously (3)
High scalability ‐ 5B+ connections worldwide (4)
Reliability & security
R li bilit & it ‐ Used in government & finance sectors
(1) CDMA Development Group; “Mobile Broadband Comparison”; March 2008
(2) Federal Communications Commission; “Connecting America: The National Broadband Plan”; March 2010
(3) SmartSynch webinar; June 9, 2010 (http://energycentral.fileburst.com/Product_webcasts/20100609_Cellular_Smart_Grid_SSI.swf)
( )
(4) Wireless Intelligence estimate
g
Source: Qualcomm M2M = machine to machine
23

24. Communications Approach
Wi-Fi Technology B i
Wi Fi T h l Brings U i l d S
Unrivaled Success
 10 percent of the world’s population uses
Wi-Fi
 Approximately 2 billion cumulative
shipments of Wi-Fi to date
 Annual double-digit growth
 Ubiquitous in home, enterprise, industry,
education, and government environments
 Consumers love Wi-Fi:
Wi Fi:
 7 out of 10 users would give up
chocolate before Wi-Fi
( e o
(Kelton Research, 2008)
esea c , 008)
 73 percent of university students say
Wi-Fi helps them get better grades
(
(Wakefield Research, 2008)
, )
Source:Wi‐Fi Alliance
24
Wi-Fi = wireless fidelity

25. Communications Approach
Wi-Fi IC Shipments to Double by 2015
25 Source:Wi‐Fi Alliance
Wi-Fi = wireless fidelity IC = interchange carrier

26. Communications Approach
Communications Node Enables Distributed Management
Communications nexus for an
integrated network
integrated network
 WAN communications
 LAN communications
modularity (Wi‐Fi, PLC, ERT)
y ( )
 Distributed grid
management enabled by
local processing and
memory
 Energy sensing applications
current, voltage, power
quality power factor
quality, power
Source: Duke Energy, “Developing the Communications Platform to Enable a More Intelligent Grid”
http://www.duke‐energy.com/pdfs/OP‐David‐Masters‐SmartGrid‐Comm‐Platform‐02‐01‐11.pdf
WAN = wide area network; LAN = local area network; Wi-Fi = wireless fidelity; PLC = power line communication;
Wi Fi
ERT = encoder, receiver, transmitter; RF = radio frequency; PEV = plug-in electric vehicle
26

27. Communications Approach
Communications Node Supports Multiple Functionalities
 Serves as a data aggregator for end points
 Performs remote analytics and appropriate control
 Provides short-term storage for end-point and local analytics data
 Provides integrated input/output options
 Provides embedded intelligence into the grid itself at key locations
 Serves as a router that forwards data between end devices, nodes, and servers
 Serves as a gateway and performs protocol conversion, as needed
27 Source: Duke Energy

28. Communications Approach
Communications Node and Potential Software Applications
Application Description
Utilizes voltage sensing at the transformer and meter to generate
Voltage Monitoring
exception reports which indicate voltage regulation problems
Monitors loading on transformers and provides real-time alerts when
Transformer Overload Monitoring
transformer is overloaded
Three-phase li d i
Th h line devices th t measure current (
that t (amps) and id tif th
) d identify the
Remote Fault Detection
fault current and location of a fault
Outage and Restoration Notification Remote and automated notification of power outages
Ability to remotely configure and control capacitor banks and regulators
Integrated Volt/Var Management
to achieve specific power factor and voltage objectives on the grid
Remote control of customer equipment to manage peak capacity and
Demand Response Event Management
grid operation issues
Street Light Monitoring Monitoring of streetlights to ensure they are operating appropriately
Remotely identify in real time where PEV vehicles may be located and
PEV Monitoring
charging
Source: Duke Energy PEV = plug-in electric vehicle
28

29. SEBASTIEN SCHIKORA,
DIRECTOR PRODUCT MANAGEMENT, ECHELON

30. Introducing Echelon
Echelon Energy Control Network:
open, intelligent, distributed control
Market Global Field Passionate
Maker Innovator Proven Customers
20 100 100M >1,000
years patents smart devices customers
First Energy Control HQ Silicon “Plant-to-Plug” Commercial,
Network Valleyy solutions Utilities
30

31. A Fundamental Shift Is Underway
YESTERDAY:
• Single source, local
• Steady-state
• C ti consumer
Captive
• Ubiquitous, cheap
• Single business model
TODAY:
• Distributed energy sources, global
• Erratic demand
• Consumer choice and participation
• K GDP component, price pressure
Key t i
• New business models
31

32. Taking the Smart Grid beyond metering
Starting now we make the “other end of the wire” smart
32

33. Why does the communications network
need t be reliable?
d to b li bl ?
33

34. Field Proven Reliability
Customer Reliability Load Profile Readings # of Meters
Data Tested
99 –100% Extended Hourly 600,000*
99.7 – 100% Extended Hourly 200,000
99.7 – 100% Extended Hourly 170,000
99.7 –
99 7 100% Extended
E t d d Hourly
H l 50,000
50 000
34
*tests conducted on a pilot sample of the total number of meters

35. Echelon Solution Components
 ANSI Meters
 System Software
 Data Concentrators
 Edge Control Node
35

36. The Edge Control Node (ECN) 7000 Series
P
Purpose-built f th S
b ilt for the Smart G id
t Grid
 Multiple communication p
p paths
 EV-DO, Wi-Fi, GPS, 900Mhz RF, …
 Variety of integrated sensor and input options
 Open for expansion
 No limits, no licenses, no restrictions
36

37. Join Leading Utilities On the Journey
g y
Co
Achieved a return on
$8M saved annually 600,000 smart
due to remote meter meters installed; high investment in 4
readings and $2M saved customer satisfaction with years: invested 2.2B
annually net ork
ann all in network and Euro and earn 500M E
E d Euro
communication costs remote control per year
From plant to plug:
Smart street lighting
lighting, Customer satisfaction
residential demand response increased 26% and
10% increase in customer sat in 1yr.
and smart metering complaints reduced with
370,000 smart meters
37

38. Discover
the power of control
Q&A

39. Thank You For Attending
You will receive two whitepapers:
 Duke Energy whitepaper referenced today:
“Duke Energy: Developing the communications platform
to enable a more intelligent grid”
 E h l reliability case study:
Echelon li bilit t d
“NES Load Performance Test in Kaiserlautern Germany”
NES Germany
39