EMS User Group Conference 2008 PHI EMS MIGRATION

EMS User Group Conference – 2008 PHI EMS MIGRATION TO COMMON PLATFORM PROJECT Manley Higgins Project Manager System Operations Pepco Holdings Inc. September 8, 2008

Project Goals l l l Implement state of the art technology EMS for all of PHI operating regions Maintain reliability of the PHI power system and meet current and future regulatory requirements Minimize System Customs and procure a baseline system to make it easier to support

Project Justification l l l NERC CIP Compliance for Pepco by December 2009 – Existing Pepco system was older vintage EMS and would have been difficult and expensive to make compliant Common EMS platform at Pepco, Atlantic City Electric and Delmarva Power will better support PHI Blueprint for the Future initiatives Provide the opportunity to leverage PHI’s collective EMS knowledge and experience across the company, and allow improved decision making. Improved allocation of support and training resources across all regions of PHI Need to upgrade or replace Pepco’s EMS to provide long term maintenance and reliability – Existing system was highly customized and expensive to maintain due to it’s age

Project Core Team Established a cross regional team representative of all of PHI PEPCO Manley Higgins Brian Chabot Bob Krug Bill Disney Chris Koch George Menefee Pam King ACE/DPL Linda Stevens Phil Vavala Ken West Donna Hare Ray Cichocki Diane Burns Monte Bellon Sunil Pancholi - Liaison to Business Transformation Team Karen Lefkowitz – Executive Sponsor Michael O’Grady and Vic Davis – Sponsors and Support Managers KEMA Mark Bruen Joe Moran

Project Began Early Spring 2007 l l PHI Team formed Solicited bids from two vendors – l l Decided to request bids from incumbent vendors only Technical, Business and Commercial evaluations performed Site visits conducted by PHI Team Performed Qualitative Risk Analysis of all offerings Vendor Selected in December 2007

Process l l Statement of Work completed December 2007 Purchase Order issued February 2008 Project Implementation Work began immediately Contract consisted of two purchase orders due to Pepco lease constraints

Overall Project Plan l Phased Project Approach – – l l Common Software Platform for both System Common System Design and Requirements – l Phase 1 for Pepco Phase 2 for ACE/DPL Ensures that both systems have the same version software and hardware Utilize PHI Expertise with the incumbent system during the design and implementation process

Major System Capability l The EMS – l The BCS – l l Includes redundant systems QAS – l Consists of redundant systems NERC requirement for separate system for test board PDS DTS

System Functionality l l Basic EMS capability including SCADA, power applications, DTS, and custom applications such as DVD & RLBVC Interface with PHI’s ISO (i. e. PJM) Interface with the OMS Support future DA programs

EMS Implementation Project Status l l l The PDS hardware for Pepco’s EMS was received the week of May 28 th. The software was installed on the system prior to shipment. Vendor resolved performance issues with the PDS affecting the PHI Database, Display, and Standards work. The PDS has been installed and operational. The initial Pepco database build has been completed and was loaded on the PDS in June. The prototype display building effort has begun on the Pepco PDS with assistance from ACE/DPL. Vendor is assisting with display design and build. The ACE/DPL PDS has been staged at the vendor this month and is scheduled for delivery in October.

PHI/Pepco Project Status – September 2008 l l l Hardware Staging complete for Pepco EMS, BCS, QAS and DTS. ACE/DPL PDS is being configured and tested. Building initial PHI Power Systems Applications database. PHI validating converted SCADA database at site. PHI reviewing Power Systems Custom Designs and SCADA Custom Requirements. Design review nearing completion. On-site Database and Display training has been conducted.

Upcoming Activities l l l Complete Pepco PSA database build. Pepco detailed database verification. Load ACE/DPL converted database and checkout PDS. Coding of Power Systems customs. Implement Custom Designs. Evaluating and selecting security configuration.

Project Milestones - PEPCO Milestones Contract Completion Date Current Completion Date 1 Contract Executed 01 Feb 2008 2 Delivery & Installation of PDS 13 May 2008 20 May 2008 3 Submittal of Requirements Specifications 04 Apr 2008 28 Jul 2008 4 System Hardware Staged. Design Approvals. 18 Apr 2008 29 Aug 2008 5 Approval of Test Plans 24 Oct 2008 05 Dec 2008 6 Completion of FAT 05 May 2009 11 Jun 2009 7 System Shipment 30 Jun 2009 30 Jul 2009 8 Completion of SAT 30 Jul 2009 27 Aug 2009 9 System Cutover/Acceptance 16 Dec 09 22 Jan 10

Project Milestones – ACE/DPL Milestones Contract Completion Date Current Completion Date Delivery & Installation of PDS 15 Jul 2008 2 System Hardware Staged 15 Sep 2009 08 Oct 2009 3 Completion of Integration Testing 24 Nov 2009 21 Dec 2009 4 Approval of Test Plans 25 Nov 2009 22 Dec 2009 5 Completion of FAT 12 Mar 2010 06 Apr 2010 6 System Shipment 03 Jun 2010 28 Jun 2010 7 Completion of SAT 01 Jul 2010 26 Jul 2010 8 System Acceptance 16 Dec 2010 10 Jan 2011 1

In-Service Dates l Pepco In-Service Date is – l January 2009 ACE/DPL In-Service Date is – January 2011

Challenges Remain l l Database checkout and point - to - point testing to minimize schedule and maintain safety and security Display Building – l l Lots of work Operator Training on Change Management Complete System Testing – More work to be done

ON-Going EMS Integration Program Initiatives l l l Risk Mitigation Resource Acquisition for PHI tasks PHI Team Building with Pepco and ACE/DPL – Integration of PHI support and operations organizations

One System – One Process l l Complete Standards for System Displays and Symbologies for PHI EMS by December 2008 Other Efforts from EMS Project l l l Investigate further integration of regional support teams Assess operational/business processes for additional areas of commonality and potential effectiveness Develop change management program to ensure success of common platform initiative

Display Standards and Conventions Effort l l l The effort to determine display standards and conventions (symbols, colors, layout, etc. ) for all of PHI EMS’s is progressing. The initial draft agreement that is going to be prototyped for display types, display guidelines, substation one lines and symbology has been completed. Initial development of the prototype displays and screens is in progress. A draft summary of the Display Symbology and Standards Workshops has been completed and is being reviewed by the team. Finalization of the agreements and prototypes should occur after review of the results of the prototyping effort. Resource availability and stability issues with the PDS has affected progress on the display prototyping and symbology effort.

Lessons Learned (so far!!) l l l Advanced work with Procurement Group to Ensure quick transition to contract Never trust the EMS salesman for schedule related issues Database Build and Conversion is never as simple as the vendor states – l l Be prepared to do it in house Display Building is a Major Effort when changing vendors Dedicated Resources are a must for both Vendor and Customer

Questions? Thank You