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1 March 2015 ComEd Grid Modernization

2 COMED S GRID MODERNIZATION VISION ComEd will fulfill the promise of grid modernization for northern Illinois consumers by: Improving system reliability and deploying new smart grid technologies Providing greater value to customers through better service and creating a new level of accountability for ComEd Preparing our region for the new demands of the 21st century economy and supporting a greener future Providing energy consumers more savings, choice and control Redoubling efforts to care for communities and customers who depend on infrastructure and service -1-1

3 ENERGY INFRASTRUCTURE MODERNIZATION ACT (EIMA) On October 27, 2011, the Illinois General Assembly enacted the Energy Infrastructure Modernization Act (EIMA), setting in motion a $2.6 billion investment by ComEd to strengthen and modernize the state s electric grid. o $1.3B for infrastructure improvements (cable, poles, manholes, storm hardening, etc.) and training facilities o $1.3B to deploy smart grid technology (smart meters, distribution automation, intelligent substations Performance-based formula rate brings greater stability to the regulatory process for significant grid investments. Annual Work Plans submitted to ICC Provides consumer benefits through grid modernization and installation of smart meters. Protects consumers throughout the 10-year investment period through performance metrics and strong oversight 2

4 EIMA RESULTS TO DATE Over 1.7 million customers have benefitting from work already completed Five substations completed, benefitting 89,500 customers, including O Hare and Midway airports 573,000 avoided customer interruptions as a result of distribution automation devices installed through EIMA 2,870 avoided underground cable faults averting over 519,000 customer interruptions Storm hardening programs have avoided 536,000 customer interruption hours Over 9,8 million automated meter readings for monthly billing 3 3

5 WHAT S NOW MICROGRID 5 YEAR PROGRAM Holistic data driven approach site selection with governmental agencies partnership o o Each section (1 mile x 1 mile) outside of Chicago and quarter section (0.5 miles x 0.5 miles) within the City was first rated with respect to each of the four primary factors. - Scale of 1-3 (Green, Yellow, Red). These four factors are then combined into a composite metric. This was calculated as a weighted average of: o Critical customer (50%), Reliability rating SAIDI (25%), Capacity rating (12.5%), Substation bus tie reliability ranking (12.5%) o Capacity planning combined metric includes weighted avg. of feeder loading (10%), terminal load(10%), and load at risk (80%) o An additional half point was added to the composite score if the location was on the most recent green board report, or had had a yellow greenboard rating on average over the past 2 years. Capacity Planning Combined Metric Reliability (SAIDI) Substation Bus Tie Risk Score Candidates include: 1.The Bronzeville Community of Chicago 2.The Illinois Medical District 3.City of Rockford Airport 4.Du Page County government complex 5.Aurora FAA facility 6.Chicago Heights water pumping & treatment facility -4- The resiliency metric was heavily influenced by critical customer information -4-

6 WHAT S NOW MICROGRID CONTROLLER DEVELOPMENT The DOE awarded approximately $1.2 million to ComEd and it s partners to develop and test a commercial-grade microgrid controller capable of managing two or more clustered microgrids. Chicago s Bronzeville neighborhood was identified as one of the ideal locations for siting a microgrid. Bronzeville includes a diverse mix of facilities and critical loads, including police and fire department headquarters, educational facilities, major transportation infrastructure, healthcare facilities for seniors, and private residences. POI1 IIT Microgrid B1 ComEd Microgrid POI3 ComEd playing a key rols in supporting IEEE microgrid controller standard development, IEEE/PES microgrid taskforce and Quadrennial Energy Review. POI2 B4 B6 2 2MW B2 B3 B5 Tie 4.16/12.5 kv GS BC CC DLI PD FC RC CO BES Roof-top PV MA Automated switches Vista Switch GL FC Fuel cell 5 MW POI

7 WHAT S NOW...SUPERCONDUCTOR: CHICAGO LOOP GRID RESILIENCY Developing plans to deploy high temperature superconductor cable in Chicago s central business district (CBD).The project will connect multiple substations in Chicago s CBD, greatly enhancing grid resiliency. The DHS program is designed to provide protection against the catastrophic effects resulting from the loss of critical substation facilities by allowing the sharing of capacity of nearby substations that cannot typically be accomplished through conventional means. o Support a project of sufficient length to allow high temperature superconducting cables and related components to achieve notable cost reduction o DHS is providing $60 million in funding o Project duration of 3-4 years High Temperature Superconducting Tri-axial Cable -6-

8 WHAT S NEXT SMART CITIES: AN ECOSYSTEM FOR INNOVATION Leverage ComEd physical assets, communications network infrastructure and capabilities to develop Smart City offerings for the communities we serve. Some initiatives ComEd is actively pursuing in this space include: o Smart LED Streetlights. A pilot deployment of 800 fixtures is currently underway in two municipalities. o AMI Network for Water Metering. Leveraging ComEd s AMI network to provide meter reading services to municipal water departments. o Hybrid AC-DC Nanogrids. ComEd in conjunction with the Illinois Institute of Technology, DOE, Argonne National Laboratory, Emerge Alliance, and Starline DC solutions is deploying a building level microgrid that has both AC and DC circuits that provide higher overall energy efficiency. -7-

9 WHAT S NEXT...OPERATIONAL VISION OF THE GRID OF THE FUTURE Currently developing transformational grid control algorithms and architectures that optimize the usage of flexible loads and a variety of distributed energy resources (DER). Reliably managing dynamic changes in the grid by leveraging the additional grid resources to mitigate operational impacts and improve quality of customer service A key focus is on supporting higher penetration of distributed generation (DG) such as solar -8-

10 WHAT S NEXT...A PATH TO ILLINOIS ENERGY FUTURE -9-

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