Building the Smart Grid

© 2011 Silver Spring Networks. All rights reserved.

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Agenda

Introduction

What We Do

Two Case Studies:

Pacific Gas & Electric

Oklahoma Gas & Electric

Possibilities ….

© 2011 Silver Spring Networks. All rights reserved.

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Unprecedented Disruptive Forces and Opportunities

Historical

Reliability Operational

Efficiency

Non-technical

Losses

Security

Recent

Environmental

Regulation

Customer

Involvement

Emerging

Renewables New Sources of Demand

These forces will require utilities to change

Carbon

Monetization

© 2011 Silver Spring Networks. All rights reserved.

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Company Overview

About Us

• 2002, Born to solve the utility challenges of connecting devices on the grid

• #1 share in networking technology

• ~8M+ homes/businesses networked to date; over 18M under contract

• Smart grid projects on 5 continents

Awards

Growing Deployments Worldwide

© 2011 Silver Spring Networks. All rights reserved.

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Agenda

Introduction

What We Do

Two Case Studies:

Pacific Gas & Electric

Oklahoma Gas & Electric

Possibilities…

© 2011 Silver Spring Networks. All rights reserved.

4

Silver Spring’s Role

Silver Spring provides a Unified Smart Grid Platform that maximizes utility business value, now and in the future

Residential

Devices

Open, IPv6, secure

© 2011 Silver Spring Networks. All rights reserved.

Utility Operation

Smart Grid

Devices

Multiple apps and transports

Commercial &

Industrial Devices

Millions of endpoints deployed

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What We Do – Delivering the Smart Grid Platform

A Complete End-to-End Solution

© 2011 Silver Spring Networks. All rights reserved.

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Smart Grid Helps Utilities Address These Challenges

Examples

Energy

Generation

Transmission

& Distribution

Consumer

Operational Efficiency

• Meter Reading (AMI)

Environmental targets

Distributed renewables

Electric vehicles

Smart Grid = Intelligence

Non-technical Loss

• Secure Metering +

Analytics

Reliability

• Automated Switching

(Distribution Automation)

Outage Management

Customer Involvement

Energy awareness and control tools

Demand response programs

Information can be leveraged across multiple applications

© 2011 Silver Spring Networks. All rights reserved.

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Smart Grid Platform Requirements

Strict and Complex

Cost Effective

Open Standards

High Performance

Reliable

Broad Coverage

© 2011 Silver Spring Networks. All rights reserved.

Secure

Extensible

Scalable

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Agenda

Introduction

What We Do

Two Case Studies:

Pacific Gas & Electric

Oklahoma Gas & Electric

Possibilities ….

© 2011 Silver Spring Networks. All rights reserved.

9

Example: Smart Metering

Pacific Gas & Electric

System live 90 days after contract signing

After 2 ½ years:

Over 4.2 million fully communicating smart meters on the network

Installing 60,000 per week

5.5 million meters by end of 2011

• Meters from Landis+Gyr and GE

• > 500 remote connect/disconnects/day

Now adding: Home Networking, Electric

Vehicles, Distribution Automation, Integration of Renewables…

Smart Meter Communications Can Create The Foundation For Smart Grid

© 2011 Silver Spring Networks. All rights reserved. 10

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Devices

Meters

Connecting Homes and Businesses

© 2011 Silver Spring Networks. All rights reserved.

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Network Infrastructure

Access Points Relays

It Starts with the Network – Very Low Capital and Operational Cost

© 2011 Silver Spring Networks. All rights reserved.

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AMI Benefits

PG&E

Remote Service Operation

Description

• Silver Spring Networks enabled meters allow

PG&E to provide remote switching service without sending a truck

~$500M per year

Operational cost savings

&

Results: PG&E conducted ~215k remote operations during 2010

Improved customer service

Source: PG&E; Silver Spring estimates

© 2011 Silver Spring Networks. All rights reserved.

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A New Perspective

“We thought we were undertaking an infrastructure project but it turned out to be a customer project.”

- Chris Johns, President, PG&E

© 2011 Silver Spring Networks. All rights reserved.

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Champion the Consumer Benefits of Smart Grid

“Energy efficient products have given our business a 33% return on investment.”

© 2011 Silver Spring Networks. All rights reserved.

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The people with the power in the energy industry of the 21

st

century are the demanding energy customers who will rule as never before.

© 2011 Silver Spring Networks. All rights reserved.

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OGE Engaged Customers with an Open and Unified Platform

Show immediate value to consumers

Avoid customer backlash

Improve energy efficiency

Lower customer bills

Enhance your brand

© 2011 Silver Spring Networks. All rights reserved.

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Multiple Touch Points with Your Customers

© 2011 Silver Spring Networks. All rights reserved.

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Customer Information – Your Energy Use

© 2011 Silver Spring Networks. All rights reserved.

Customer Information – Compare to Your Neighborhood

© 2011 Silver Spring Networks. All rights reserved.

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The Results

57%

Maximum Demand

Reduction during

Peak Period

11-33%

Average Energy

Reduction On the

Highest Price Days

96%

Customer

Satisfaction

Rating

© 2011 Silver Spring Networks. All rights reserved.

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Building the Bridge with Information

© 2011 Silver Spring Networks. All rights reserved.

An Open and

Unified Smart Grid

Platform is

22 fundamental

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“The Opportunity: A smart grid platform builds a bridge with your customers in our common challenges”

New York Regulators Announce “Rules of the Road”

Announcement on August 18 th , 2011

“ Provide Return on Investment to Consumers ” --- show me the money

“ Work with Proven Smart Grid Technologies ” --- this is not YouTube

“ Invest in Comprehensive Customer Education Plan ” --- customers not a meter

“ Protect Customer Privacy ” --- this is not Facebook

“ Increase Grid capabilities to add new technologies ” ---

“ Rate recovery via traditional methods ” ---

© 2011 Silver Spring Networks. All rights reserved.

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Getting Started

From our experience

Define Your Long-

Term Vision

Identify set of challenges

& opportunities to address over the next 10+ years

▪ Avoid “series of tests to discover a vision”

Choose the Right

Platform

Select a proven communication platform that can support your vision

Avoid choosing fragmented “parts”

Unified

Smart Grid

Platform

IPv6, end-to-end security

Deliver Maximum

Benefits Quickly

Deploy 1-2 solutions to address urgent issues

Implement at scale to realize benefits

Accelerate and de-risk the journey toward your future vision

© 2011 Silver Spring Networks. All rights reserved.

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Utility Business Value from Silver Spring Platform

True smart grid platform – with successful customers

Innovation – market leading investments

Future-proofed – built on open standards

Leading cost-performance

Proven, lower risk, cost-effective

© 2011 Silver Spring Networks. All rights reserved.

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Gracias

© 2011 Silver Spring Networks. All rights reserved.

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