More MDM Choices: A Hosted MDMS

More MDM Choices: A Hosted MDMS Jackie Lemmerhirt Director, Product Management Aclara Software February, 2008

Aclara Software (formerly Nexus Energy Software) Founded 1997, offices in MA, AZ, CA, VA over 100 utility customers Subsidiary of ESCO Technologies, NYSE Company (NYSE:ESE) with focus on leadership in Advanced Utility Communication technologies and related data management software Our utility clients serve over half of all households & businesses in the United States Aclara Software s Mission: Leading innovator enabling the vision of what can be accomplished with Energy Information Software and Project Performance Excellence 2

Significant Client Base 3

Market trends are creating an MDMS need for all segments Regulators are pushing evaluation of more innovative pricing Increased interest in smart devices Existing infrastructure begs to be leveraged more AMI systems continue to increase the amount of data created and available for use By customers By utilities 4

An Emerging View of the 21 st Century Utility Leveraging greater quantity and quality of information to improve operational performance and reduce costs Cost + Asset + Customer + Meter Data Customer Profitability Asset Profitability ROI and ROA Based Decision- Making Asset + Customer + Meter Data Customer + Meter Data Meter Data Only T&D Asset Optimization Complex Billing Customer Care Outage Detection & Response Pricing Design Forecasting Revenue Prot. Settlement Interval Meter Validation, Estimation, Editing Unbilled Revenue Reporting Centralized Database Repository System Loss Detection Increasing Value 5

Strategically, Meter Data Management Should: Ensure that the huge amount of newly available data is leveraged across the enterprise Drive more effective distribution management Increase flexibility in areas such as revenue protection and complex billing Improve customer service, reducing costs while increasing satisfaction Support pricing and other demand-response programs that achieve key utility objectives MDM is a part of a large infrastructure investment needs to be optimized to achieve all potential benefits 6

A Typical View of an MDMS Historically MDMS was licensed software Significant upfront software costs License Implementation Costs typically precluded all except the larger utilities from fully leveraging AMI Considered within a full AMI deployment scenario Performs VEE, Bill Calculation functions Integrates with Enterprise Systems such as OMS, CIS 7

A Hosted MDMS MDMS Software as a service unlocks many possibilities Functionality is provided as a service over the web Full user access to all functionality Transparency to users on location of data Uses the same internal business processes for delivery of data from an AMI system and to enterprise systems Significant cost advantages No license fee Minimal hardware purchases required Service level agreement in place for uptime and customer support 8

Benefits of a Hosted MDMS Support for pricing initiatives Pilots Partial deployments Opportunities for smaller utilities Many coops have the ability to collect interval data Software costs often constrain fully leveraging this data Interim solution for partial AMI deployments 9

Hosted support for pricing initiatives Lifecycle management Low upfront costs Minimal needs for IT resources Cost can better reflect participant group size Allows for testing of multiple scenarios Rate designs Rate and device combinations Rate, device, and communication methods Pre-configuration allows for quicker deployment 10

As the result of each new pricing pilot becomes available, a common story is developing customers respond to dynamic price signals Percent Reduction In Peak-Period Energy Use 14 12 10 8 6 4 2 0 Peak-Period Reduction on Critical Peak Days 13.1 11 11.9 12 CA SPP AmerenUE Anaheim Peak Time Rebate PSE&G Price Ratio: 4.1:1 4:1 4.6:1 6:1 Critical Peak to Off-Peak 11

Challenge How to achieve the really big impacts without buying the customer displays and controls Critical Peak Impacts By Rate Treatment Average Critical Peak Day Year 1 Hottest Critical Peak Day * 50% 47.4% Peak Load Reduction 40% 30% 20% 10% 0% 4.1% TOU Time of Use TOU 12.5% Critical Peak Fixed CPP-F 34.5% Critical Peak Variable With Automated Controls CPP-V Critical Peak Variable With Automated Controls CPP-V Source: Statewide Pricing Pilot Summer 2003 Impact Analysis, Charles Rivers Associates, Table 1-3, 1-4, August 9, 2004. 12

Turn-key Customer Program Delivery Lifecycle Requires a clear customer objective Integrated enrollment required to scale Getting the customer engaged on an ongoing basis is critical to most programs Measure results and refine the process 13

Aclara Software s Experience with Dynamic Pricing Programs California CPP Pilot Program 2004/5/6 Managed participant communications during and following critical peak events Personalized Program Report Card for participants Education on how the program works Specific guidance based on home profiles and monthly bill data Notifications and Report Cards provided on-line and via e-mail 14

Dynamic Pricing Example Ameren Residential Real-Time Pricing Program As the Technology Partner of the Community Energy Cooperative (CEC) Aclara Software will deliver this 4 year RTP program Illinois legislated policy starting in Q1 2007 Ramping to at least 25K customers over the term Day-ahead market-based price signals to the consumer Hourly usage and customer analytics provide guidance and performance feedback Bill Impacts from ComEd Customers Participating in RTP (CEC Report) Year Average Bill Average Monthly kwh Savings 2003 $51.10 630 20.1% 2004 $56.99 648 11.3% 2005 $77.82 758-6.3% 2006 $57.82 684 14.1% 15

Hosted MDMS provides opportunities for smaller utilities Preconfigured interfaces for common related software AMI, CIS Less up front costs Monthly costs can grow as smarter meter population grows Same functionality as an in-house MDM: VEE Billing Calculations Better allows smaller utilities to avail themselves of enterprise class functionality Especially suited to Coop and Municipalities 16

Interim solutions for partial AMI deployments Amalgam of pricing pilot and small utility benefits Can support partial AMI deployments More cost effective Lower commitment Access to other business applications which use AMI data stored in the MDM 17

Other potential integrated business applications Data Repository with VEE Segmentation and Load Modeling Multi-Dimensional Aggregation Configurable Calculation Logic Customer End Use Analytics Business Applications Revenue Protection Complex Billing Customer Care Load Research & Rates Forecasting Settlement Distribution Analysis Theft Detection Failed Meter Detection Wholesale Large C&I Demand- Response Gen. & Trans. Self-Service Bill Analytics CSR Support Demand Response Efficiency Load Profiling Market Segmentation Cost of Service CPP Shortterm Mediumterm Long-term Unbilled Revenue Supplier Aggregation UFE Allocation Capacity TLM Asset Planning GIS & OMS Integration 18

Issues to consider in hosted MDMS Enterprise costs are not just the MDMS Interfaces Determine what interfaces are needed and how many Can you incrementally grow these In number In sophistication Marry the contract length to the business activity Align costs to benefits Functionality deployed Number and breath of meter population 19

Issues to consider in hosted MDMS Determine what functionality is needed and when If pilots are being considered look closely at scope growth If cost is a key test needs against this An integrated AMI MDMS solution Lower interface costs Quicker deployment One stop shopping Consider additional business functionality Distribution planning Load forecasting Loss of revenue analysis 20

Aclara Integrated AMI-MDM Solutions capture, transfer, process, manage, analyze, present 21

Aclara Software: End-to-End MDM-Based Applications Aclara Software Solutions COLLECTION SYSTEMS AMI ENTERPRISE-FACING APPLICATIONS Revenue Management Distribution Analysis AMI Provisioning CUSTOMER-FACING APPLICATIONS Customer Care Efficiency & Demand Management UTILITY ENTERPRISE Billing (CIS) Manual Read Systems SOA/Standards-Based Data Integration Outage (OMS) WMS SCADA Systems METER DATA MANAGEMENT AMI DEVICE MANAGEMENT GIS/Load Modeling Apps Usage Data Device Data Other Bus. Apps 22

AMI Integration TWACS TNS Energy Vision supports a core interface with TNS that includes loading the following supported output files TNS Daily Shift Reads, looks up previous days usage to calculate consumption TNS Hourly and 15-minute Intervals TNS Blink Counts, increments for each outage TNS Reverse Rotation flags Nexus is supporting a growing number of relevant web service methods supported by TNS Optimum Meter and Account changes and updates On-Request Reads, etc. 23

Data Processing Through VEE Meter Vision AMI Interface Loads Raw Data ESB Validation of Data Validation of Data Estimation Calculates Values based on Validation Results User Enters Manual Edits (if desired) Approval Merges Working, Estimated and Edited Data Timing Based on Pre-Defined Scheduling 24

Billing Process Meter Vision Approved VEE Data for Bill Cycle Calculate Billing Determinants Validation of Data View Results or Exceptions (optional) Create Output File Timing Based on Pre-Defined Scheduling 25

Calculate Billing Determinants with Energy Vision Interval data is the calculation source Software-driven billing calculations Flexibility to calculate ANY rate using Logic Builder component, e.g. Billing cycle consumption and demands TOU Minimum and maximum demands, demand ratchet Rolling billing interval computations CPP Most cost-effective way to calculate complex rates no need to install TOU meters 26

Logic Builder: A User Tool for Defining Calculations, Including Billing Determinants Supports user defined tariff definitions for computing Billing Determinants Aimed at business users Accesses any variables within repository for use in calculations 27

CIS Interface Billing Cycle Reads: Initially we will configure this as a CSV output one of many CIS s standard file formats Will consider other format options in the future XML and web services Working with CIS vendors to settle billing format definition requirements Standard info includes date, time, readings or usages and meter number Aclara Software will productize and support these adaptors for leading CIS systems Updates to Customer & Meter Information: Meter and Premise changes - Add, Remove, Replace Account Attributes: Rate, Cycle Changes, etc. 28

Summary Aclara Software Hosted MDM Services Low-risk and quickly deployable solution for managing and cleansing interval data AMI and dynamic pricing pilots Designed for Smaller Utilities Support for interval data framing and billing determinate calculations Pre-integrated with Nexus leading customer applications Hosted in Nexus existing data center running the latest generally available version of the Energy Vision applications 29

Thank you! Jackie Lemmerhirt 1.781.694.3345 jlemmerhirt@aclarasoft.com 30