Jim Sheppard, Director of Business Processes CenterPoint Energy, Texas, USA

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1 Jim Sheppard, Director of Business Processes CenterPoint Energy, Texas, USA

2 About Us... Public company traded on the New York Stock Exchange (CNP) Headquartered in Houston, TX Operating 3 business segments in six states Electric transmission and distribution Natural gas distribution Interstate pipelines and natural gas gathering Serving nearly 5 million electric / gas customers $17 billion in assets $8.5 billion in revenue More than 9,000 employees Over 130 years of service to our communities October 27 28, 2009 New York, NY Minneapolis Little Rock Houston Natural Gas Distribution Interstate Gas Pipelines Electric Transmission & Distribution

3 CenterPoint Energy Houston Chartered in ,000 square-mile service area 2.1 million electric metered customers 73.6 billion kilowatt hours delivered yearly for about 60 certified competitive retailers Transmission and Distribution System 3,640 miles of transmission lines 41,913 miles of distribution lines 225 substations Advanced Metering System deployment underway: 205,000+ Itron OpenWay meters installed to-date 99.6+% register read rate 97.0+% interval (15 minute) read rate 100% Connect/disconnect capable (200 amp / 1 phase) 49,000+ avoided truck rolls since 7/21/09 5 year project 2.4 million electric October 27 28, 2009 New York, NY

4 Major Smart Grid Program Components In December, 2008, CenterPoint Energy (CNP) obtained PUCT approval for full smart meter deployment (2.4m meters over 5yr period). Meter Data Management System - emeter s Energy IP Wireless WAN Communications Network System GE s Mercury 3650 WiMax Radio End to End Systems Management and Operations IBM s Tivoli Suite of Products Smart Electric Meter Itron OpenWay meters User Portals IBM s WebSphere Portal Software Texas Common Data Repository - Joint effort with Texas Electric Utilities Home Area Network (HAN) Wireless system incorporated into meter using Zigbee Smart Energy Profile

5 Smart Grid Roadmap Preventive Identify and repair intermittent grid problems to minimize outages CenterPoint Energy INTELLIGENT GRID ROADMAP Self Healing Grid Objectives The self healing grid is an important building block of the smart power delivery system Real Time Sensing & Responding Quickly react to disturbances to minimize impact Continuous Monitoring Dynamically optimize the performance and robustness of the system Event Avoidance Remote Load Profiling / Mgmt Grid Event Diagnostics Advanced Data Analysis Grid Condition Sensing & Predictive Response Self-Healing Grid Improved Asset Mgmt / Visibility Real time Grid Condition Monitoring Automated Grid switching, etc. Meter as a Sensor Transformer Load Mgmt Condition Based Crew Dispatching Grid Event Detection and Location Automated Meter Infrastructure (AMI) Meters Meter Interrogation Meter Connect / Disconnect 5

6 Cost Effective Technology that Empowers Consumers and Retail Energy Providers ANSI C12.19 Data Tables ANSI C12.22 Data Transport Retail Energy Provider End Customer Authorized 3 rd Parties Fire Wall Portal Access AMM System Wireless Communication CiCo Advanced Metering System ZigBee ZigBee ZigBee Zigbee Enabled Devices Home Area Network In home displays Control devices Monitors Retail Domain Regulated Environment Energy Conservation Demand Response Texas Retail Environment

7 Creating a Business Ecosystem Automated Meter Management Utility Automation Sensing and Controls Intelligent Grid Utility Apps Portal Retail Apps Customer Self-Service Utility Benefits Grid Diagnostics Automated Meter Reading Outage Management Street Light Management Customer Satisfaction Informed Choices Increased Reliability Information on Demand Retail Opportunities Energy Conservation Smart Home Support Demand Response Support Virtual Pre-payment Programs Dynamic Pricing

8 Smart Grid Needs Model Service Management AMI Business Needs Terms & Conditions Timely and accurate On demand reads PUC Advanced Metering Rules: TOU High read frequency Performance tied to cost recovery Analysis and usage reporting tools Operating cost reductions Remote meter connect/disconnect Service status verification Self healing systems Self service sessions Voltage Profiling & Load Modeling Technical Needs Advanced metering functionality Voltage alerts & real time measurement Time / Date stamped data Open architecture Data repository Mechanism for access Data security Meters as distribution sensors Heterogeneous meter population Firmware push capability 2-way communication sessions Outage / Restoration reporting Remote device control Meter status reporting Distribution analytic and diagnostic support Theft / Tampering flags

9 AMS Field Overview HAN Metering Communications Back Office Systems Web Portal FIBER LINK Internet Web Services High Voltage Lines Wind Generation Medium Voltage Line Wireless Tower Cell Relay RF Wireless Repeater Residential Consumer Local Home Area Network Smart Meter

10 Home Area Network (HAN) HAN offers additional control options: Non-essential vs. comfort appliance control Improved customer usage awareness: Time sensitive rate making Load shaping Energy conservation Home, Work and Public Charging A Few Vendors offering HAN Devices: GE Smart Appliances Tendril Ecobee Forest Comverge Rain Control4 LS Standard Interface w/ Smart Charging Capability Plug-In Vehicle

11 Smart Grid Functionality and HAN Functionality (non-inclusive) Texas Common Data Repository and Portal 15 Minute usage data Remote service connect / disconnect Remote interrogation for power status and register read Tamper notification Full security for multiple access Web access to usage data Meter reports outage and restoration Enables real time communication between AMS meters and HAN devices Distributed Generation/Renewables metering After 2010, HAN support for: (Note: Future HAN services and products supported by AMS will be greatly influenced by future standards development and regulatory direction.) Pre-payment services PHEV monitoring & controls Support for TOU, CPP and dynamic pricing Improved HAN device control HAN messaging over AMS network Customer HAN device access permission/authorization HAN device performance evaluation

12 Home Area Network (HAN) Consumers Consumers REP s Wireless Zigbee Wireless Home Area Network Devices Broadband Connection CNP Consumer / REP Basic HAN Device Provided by REP / Consumer - operates on CNP Communication Broadband Communication, Interface & Device Provided by Consumer or REP Utility APPS (DSM, Basic Device Controls, Near Real Time Consumption Feedback ) Complexity of HAN Devices Complex High End HAN

13 The value of an integrated, remote service switch can be realized in several areas Key Feature Integrated within AMS meter design Enables remote power disconnect/ reconnect Configurable load (current) limiting set points Single-site or multiply addressable On-demand or scheduled actions Safety switch and load-sensing lockout Potential AMI Benefit Reduces installation cost (vs. collared solution) Reduces potential device tampering costs Reduces credit/ collections costs Supports pre-payment services Reduces field service orders/ truck rolls Improves employee field safety Enables peak load limiting programs Enables more flexible pricing and service plans Supports emergency grid reliability actions Supports demand response programs Improves customer convenience/ satisfaction Reduces potential grid impacts for cold load pickup Complete disconnection for inactive service locations Emergency reconnection for medical reasons Short term disconnects for customer-side wiring work

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