Let LandisGyr lead you The into the smart

Let Landis+Gyr lead you… The …into the smart grid future 1 Challenge

Technology Terminology + AMR Automatic Meter Reading + LAN Local Area Network (link from meter to collector/concentrator) + WAN Wide Area Network (link from LAN to host) + HAN Home Area Network (link from in-home-display or appliance to AMI) + MDM + PEM + PLC + BPL + AMI + DRI + SGI 2 Meter Data Management Personal Energy Management Power Line Carrier Broadband over power line Advanced Metering Infrastructure (Two-Way Smart Metering) Demand Response Infrastructure – customer response to time varying rates Smart Grid Infrastructure

Advanced Metering Infrastructure (AMI) AMI includes the communications hardware and software, advanced meters and all data management systems necessary to store, validate and transmit the vast amount of data that will be collected via a true advanced metering system. Advanced Metering Meters and communications hardware capable of recording energy either in real-time or other time-measured increments, such as every 15 minutes, and able to transmit data two-way on demand or in predefined schedules. Advanced Metering can refer to solid-state meters pre-equipped with a two-way AMR device or older meters with an advanced metering device retrofitted on them, thus providing the same two-way capabilities. 3

Utilities face a dynamic market … + + Supply & Network Constraints Technology Advances Environment and Political Pressure Competitive Power Markets “Electricity use nationwide will grow more than twice as fast as committed generation resources over the next 10 years” -NERC 4

…Placing demands on limited resources You face tough choices about what investments to make, and how to allocate resources across various technology and system purchases. OR F ED TISE E N ER P EX E 5 TE CH CH N O OL IC O ES GY R TU UC S TR DE AS RA FR PG U IN E C R NS U O TIO S RE ITA M LI F O ST ERY O C IV L DE

Do We Really Need AMR? What is the Ca current sta te of the in dustry? ot to use n d r o f f n we a What if t R? M A ord ff 6 omethin g better AMR? What so of util lution work ity? s best for my type ea w n a C here is s next yea r? eat? a thr l l i t s tion egula r Is De ? Wh at we w ill w e do with the data we c o e h t h o wit d e w ill w t a ? s r Wh e d a e r r e met llec t?

Primary Reasons for Installing AMR +Hard-to-reads +Cost savings +Safety +More frequent read requirements Ø Daily k. Wh usage charts Ø Daily demand analysis Ø Revenue protection 7

Utility Drivers / Benefits + Automation of High Revenue Meters (C&I) Ø Retention of High Revenue/Margin Customers Ø Allow introduction of new/more complex billing options + Cost Reductions Ø High-Cost-To-Read Meters: Access, Safety, Geography, Weather High Cost of Off-Cycle Reads: move in/out Ø Customer Service Efficiencies: Connection & Bill Inquiries Ø Integration With Other Systems (SCADA, DSM) + Remote Connect/Disconnect Ø + Improved Customer Service Ø Reduced estimated bills and resulting high bill complaints Real-Time Billing & Operations Data to CSRs Ø Outage Notification and Data Ø Advanced Customer Options - e. g. Web based payments Ø On-demand reads Ø + Potential enhanced Revenue Reduced Theft of Energy through tamper and theft detection Ø Improved Read-to-Bill Ø + Demand Response (EPACT) TOU, LP Ø Enabling Technologies (Load Control, In-home displays, PCTs) Ø 8

… Driving interest in smart grid technology Smart grid networks have the ability to revolutionize energy management and grid reliability across the globe Utility Benefits reduced costs greater management control regulatory compliance improved customer service and satisfaction 9 Consumer Benefits lower energy costs greater transparency reduced carbon footprint

The emergence of the smart grid + Automate critical functions, provide essential information, and make more informed decisions in a timely fashion + Transform to a dynamic, market driven model that balances energy demand with supply + Provide information and control necessary to reduce energy consumption DISTRIBUTION AUTOMATION ADVANCED METERING 10 PERSONAL ENERGY MANAGEMENT DATA MANAGEMENT

Anticipating future demands and managing risk +Significant challenges exist to implementing a high-performing, fully integrated smart grid +To address these challenges requires – flexible solutions – broad technology and implementation expertise – proven combination of technologies that fit your organization, geographic & regulatory needs 11

Your business requires… Underlying any technology choice is the need for flexibility, integration and custom options during and after implementations 12

Smart grid vision A smart grid Solution is any combination of our products, systems, and services that provide: + + + 13 AMI Personal Energy Management DA/SCADA Demand Response Data and Asset Management Advance Application benefits

Recognize the benefits… + Network performance + Operating Performance + Energy Efficiency/ Conservation + Customer Service + Integrated utility infrastructure 14

AMR / AMI BENEFITS PROGRESSION AMR • Least cost substitution • First level of automation = reduced meter readers. • Improved billing accuracy. • Reduced customer service calls. • Increased energy theft detection. • Walk-by, Drive-by, 15 1 -Way Fixed Network • Operational benefits with • Increased automation • Daily usage • Real time event data. • Outage management efficiencies. • Distribution engineering. • Reduced capital expenditures. • Fixed network 1 way, partial 2 way AMI – Two Way • Strategic benefits. • Hourly data • Enabling demand response and Critical peak pricing • Intelligent Grid • EPAct 2005 compliance. • New revenue opportunities • Remote disconnect. • In home displays • Smart metering • 2 way to meter.

AMI Adoption – Recent Studies from 2007 +100+ utilities surveyed – 50% electric, 35% gas, 15% water +The percentage of utilities planning near-future AMR/AMI installations doubled from – 9% in 2006 to 18% in 2007. +Electric and water utilities see AMI differently – Electric utilities generally see it as two-way metering along with advanced utility applications – Water utilities see AMI as fixed metering. 16

AMI Adoption – Recent Studies since 2007 +Trends – Percentage of utilities using AMI for demand response is – – – 17 expected to grow over the next 2 -5 years Price endpoint (meter/endpoint combined) continues to fall due to increased demand integration of module into meter platforms Typically utilities with electric and more than 500, 000 endpoints are using MDM (meter data management) products for access and delivery of data across all functional areas of the utility California and Texas Commission requirements for AMI metering solutions to have – Remote disconnect – TOU/LP/Demand – Home Area Networking (HAN) – for all automated meters is setting a new benchmark for AMI suppliers.

The Return for Investment +Automatically retrieved meter read +Improved outage management +Preventive maintenance +Virtual disconnects/reconnects +Improved line loss statistics +Fleet cost reduction +Improved safety record for field revenue collection division +TOU metering +Remote “hard” Disconnect/Reconnect +Load Control 18

Electric Advanced Metering Growth 19 Compliments of Chartwell

The AMR Market Today - AMI Tomorrow HIGHEST TWO-WAY RF VALUE TWO-WAY PLC ONE WAY FIXED DRIVE BY LOWEST WALK BY AMR/AMI FUNCTIONALITY 20 AMI

AMR/AMI Systems • Drive By / Walk By • One Way Radio Frequency (RF) AMR 21 • Power Line Carrier (PLC) • Broadband over Power Line (BPL) • Two Way Radio Frequency Technology (RF) • GPRS/CDMA • Wi. Max AMI

PLC System Overview Data Backhaul Two-Way One-Way via Public or Private Wide Area Network System Software • Monitoring • Command & Control • Analytical Tools • Data Processing • Data Warehousing 22 • TCP/IP Based Wireless • GPRS • IDEN • CDMA 2000 • Ethernet • Wi. Fi • T 1 • Frame Relay • DSL • Fiber

PLC 23 Advantages Disadvantages Supports rural applications Possible loss of information in a power outage Communications infrastructure in place, managed by utility. Subject to loss data during switching activities Can support load management, tamper, and power outage indication Bandwidth Limitations for advanced metering applications Supports interval data/TOU/Demand Response Electric utility of the future may not operate as they do today

Two Way RF Mesh AMI System Software • Monitoring • Command & Control • Analytical Tools • Data Processing • Data Warehousing Collector Transmitonly or Two-way RF • Electric • Gas • Water 24 • Water/Wastewater Applications • Reservoir Management DA/PEM System Software • Monitoring • Command & Control • Analytical Tools • Data Processing • Data Warehousing Nth Collector • Reclosers • Switches • Sectionalizers • Capacitor Bank • Distribution Automation • Home Automation • Load Management Residential Products: • Remote Disconnect • Smart Thermostat • Load Management

Grid Stream System – Enabling AMI, DA & PEM Smart Grid Solution PEM 25

Smart Grid Infrastructure Command Center Two-way PLC and RF Host System AMI RF Collector Other Applications TCP/IP • Distribution Automation • Home Automation • Load Management DA Collector Router Power-line Carrier • Electric • Gas • Water Transmit-only or Two-way RF • Electric • Gas • Water 26 • Water/Wastewater Applications • Reservoir Management • Reclosers • Switches • Sectionalizers • Capacitor Bank Residential Products: • Remote Disconnect • Smart Thermostat • Load Control

Blended Solution 27 Advantages Disadvantages Optimizes technology for various meter types Disparity in feature sets Provides dual source More complex inventory/asset management 100% Coverage More complicated deployment

Technology Options In Summary Two Way Power Line Carrier Two-Way Radio Frequency • Utilizes proven RF communication • Typically supports gas and water metering • Stable cost, scalable based on territory • Infrastructure costs increase in lower density regions • Not a 100% solution 28 • Utilizes existing infrastructure • Typically supports add-on distribution activities • Serviced by utility personnel, utility owns WAN and LAN • Available wherever there is power • Abbreviated outage notification • Emerging installed base of gas or water • Available wherever there is power, can be a 100% solution BPL • High Band Width to support multiple applications • Internet • Video • Telephone • Meter Reading • Distribution Automation • Business Case Unproven/No large installed base • Costs Traditionally high • Add on services uncertain

Recent Trends Preference Toward Two-Way AMR vs. AMI Enables Smart Grid Remote Disconnect Option to Prepaid Metering Integrated vs. collar Load Limiting vs. whole house 7 -15% of population, highly transient or revenue challenged TOU EPACT 2005 Driven Demand Response Green Initiatives Alternate Revenue Streams Load Profiling HAN – Home Area Network Zigbee or other standard protocol 29 Enable Control Near Real-Time Feedback Plug-In Hybrid Vehicles (PHV)

Controlled Devices – Remote Service Switch +Remote Operation Over Network (Connect, Disconnect, Arm) +Remote status verification ØMonitor both line and load voltage +External status indication +Diagnostics available on site and remotely +Underglass solution available ØIncorporates TOU, Demand 30 30

Direct Load Control CSE Direct Load Control Switch + Communication method – Two-way Stat+Utili. Net mesh radio – In-home + Full range of programmability & control – i. e. By substation, feeder, customer groups, etc + Multiple command capabilities – Load shed/restore – Under-voltage – Under-frequency – Tamper detection + Small size for easy mounting + NEMA 4 enclosure 31

Home Area Network Strategy Provide … + HAN Choice with Focus AX meter – No one HAN technology will provide cost-effective coverage for all conditions in a Utility’s Service Territory – Endpoint devices have been designed to allow rapid development of additional HAN physical technologies – Support Zig. Bee today; Home. Plug and 6 Lo. WPAN under evaluation + Flexibility – Support of industry standard HAN protocols ensures interoperability with all compliant third party applications + Future-Proofing – Upgradable FW to the HAN technology allows the Utility to remotely upgrade network stacks and protocol changes to utilize the most current features of the selected HAN technology – The endpoint has memory and processor power to support the implementation of future features in the HAN technology. 32

Personal Energy Management Wireless Outlet Dimmer In Home Display Wireless Thermostat AMI Network AC Load Control Home Heartbeat TM Wireless Water Sensor Direct Load Control 33 Wireless Wireless Dimmer Switch Keypad Switch Dimmer In. Home TM Wireless Contact Switch Home Heartbeat TM Wireless Contact Switch

eco. Meter Features + Consumption Awareness: – CO 2 – $ Cost/Watts – k. Wh + Trending Consumption: – Today – Yesterday – last 7 days – last 28 days + Instant Demand Indication thru the LCD backlight: RED, YELLOW, GREEN – Easily read histogram side bar shows current demand – Customizable ‘Home Energy Audit’ feature allows user to set their own reference usage for future comparison 34

eco. Meter Functionality Consumption in $’s (today, yesterday, last 7 and 28 days) Carbon foot print (lbs/kg of CO 2) Stop-lighting shows current demand 35 Near real time Zig. Bee Communication with meter Current temperature Rate of consumption ($/hr) A/C power supply

Consumer Portal Usage Viewer 36

Migration path +Software +Hardware – Upgradable – Multi-purpose network components – Single platform for multiple products – Quick & easy updates – Flexible protocols Software and MDM integration; Advanced Data Management One-way AMR -RF -PLC Two-way AMI PLC, RF Mesh, DA 37 Multi-purpose networks; personal energy management