Deployed AMI Value – Real World Examples Scott Durham Vice President, Strategic Accounts Elster Integrated Solutions Elster: The global leader in metering solutions 170 years of experience providing solutions for Electric, Water, and Gas utilities Over $1.8Billion in annual revenue 200 Million meters installed The largest provider of metering systems in the world – Names you know American Meter – Gas – Now Elster American Meter ABB Electric Meters – Now Elster Electricity AMCO Water Meters – Now Elster AMCO Water A leader in 115 markets and 38 countries $35Billion in assets 9,000 Worldwide employees Energy Axis – Complete electric, gas, water AMI system Over 1 Million Smart Meters Deployed Raleigh, North Carolina, Headquarters of Elster Integrated Solutions and Center of Excellence for AMI/AMR Technologies AMI top functional choices, market comments… Chartwell 2006 Industry Report Functionality % responses Theft Detection 52% Outage Monitoring 32% Customer Energy Management 26% Remote Disconnect 23% Revenue Assurance 23% Load Forecasting 19% Time of Use (Residential) 16% Time of Use (Commercial) 16% Load Control 13% Demand Response 10% Asset Monitoring/Distribution Automation 6% Distribution Generation 3% Leak Detection 3% 2007 Planning, development, test… 2008 $$$ 2009+ $$$$ Energy Axis Network Showing Repeater Levels All 227 REX meters registered using 5 hops All 227 REX meters (4 Repeater levels) registered using 7 hops (6 Repeater levels) 2000 ft. Active Collecto r Alternate Collectors Active Collecto r Demonstrated Demand Response… Applications: In-Home displays Thermostat control Load Control Integrated Prepay Open and Interoperable with multiple 3rd party vendors: EnergyAxis 900 Mhz Radio Riga 2.4 GHz Riga Appliance Control Module 4C Energy Solutions Blueline 433 MHz Riga Thermostat Payback - EnergyAxis Remote Disconnect… Fully integrated 200A disconnect switch No visual equipment signifying disconnect capability…meets regulatory non-discrimination requirement Available demand limiting threshold Monitors load side voltage for safety and tampering Alerts via MAS if there is load side voltage when switch is open Integration with Prepayment metering Designed for safety Switch will not be closed if load side voltage is detected Leading the market in integrated disconnect deployment AMI Business Case All values based on customer test deployment Planned 175,000 Electric Meter Deployment, 40,000 with Disconnect Feature IRR 53.49% Payback 1.65 Years Total Capital Investment $ 23,984,975 Average Yearly Savings/Cash Flow $ 14,560,322 7-Year Calculated Savings $101,922,253 AMI will reduce meter reading cost, charge offs, past due accts, theft, field service orders and increase responsiveness, cash flow and revenue while reading 99+% of meters every day. AMI Business Case Savings Not Included in the Analysis TOU and/or load profiling Reduction in estimated billing Reduction in retraining meter readers Reductions from inflation & population growth Reduction in injuries to meter readers A new one…the benefit of redirecting meter readers to collection The benefit of DR capability… The benefit of outage management/analysis… Customer Experience SRP – Phoenix, AZ AMI in areas that have a high volume of service calls. 10k/mo., nearly 200k smart meters installed 90,000 remote disconnect meters Over 150,000 remote service calls since system installed. Completing over 1,000 remote disconnect/connects per week Customer Experience Fredericksburg, TX – AMI rollout for electric and water Reduce meter reading costs. Identifying outages and leaks. Monitoring conservation. Improve customer service. Hourly water usage profile, water usage billed at tiered rate. Pole mounted repeaters for water only areas F’burg is a GREAT town… Customer Experience AVEC - AK Alaska Village Electric Cooperative uses AMI to read meters in remote villages. Villages are several hundreds of miles away and are not accessible in the winter. It is impossible to manually read meters in the winter. Meters are read remotely from office in Anchorage, Alaska. AVEC is able to localize and react to power outages. Customer Experience CFE Fully integrated CIS generates disconnect/connect actions Greatly enhanced safety for employees Significant revenue assurance improvement, theft losses down Many meters not accessible Reading meters in mountainous area via satellite phone Customer Experience High Rise Applications Solaire Tower in Orlando Controlled Access High Transient Rates 300 Electric Meters 300 Water Meters 300 Chilled Water Meters Mesh communicates between floors All read every day… Elster in Ontario Coalition of Large Distributors (CLD) went through a lengthy procurement process in 2006 Toronto Hydro, Hydro Ottawa, Enersource, Horizon Utilities, PowerStream, Veridian Selected 5 Vendors of Record Each utility then selected a supplier and negotiated a contract Elster signed contracts with 5 of the CLD utilities 2 ASP’s have Energy Axis systems installed offering reading services 230k Energy Axis smart meters delivered in 2006 Delivery at a rate of 40-50k per month in 2007 Expect to deliver 500 – 800k in 2008 Thank You… Contact Information: Scott Durham VP, Strategic Accounts Elster Integrated Solutions scott.durham@us.elster.com 241-912-0671