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SmartMeterTexas.com Access to the Smart Grid for all of Texas CenterPoint Energy Robert B. Frazier Director of Technology Houston Electric 1

WHO IS CENTERPOINT ENERGY? Public company traded on the New York Stock Exchange (CNP) Headquartered in Houston, TX Operating 6 business segments in six states Electric transmission and distribution Natural gas distribution Interstate pipelines and natural gas gathering Serving 5.3 million electric / gas customers $20 billion in assets $8.3 billion in revenue 8,800 employees Over 130 years of service to our communities Minneapolis Little Rock Houston To be recognized as America s Leading Energy Delivery Company and more Natural Gas Distribution Interstate Gas Pipelines Electric Transmission & Distribution

WHO IS CENTERPOINT ENERGY ELECTRIC? Houston Electric Division (CEHE) Houston (4th largest city in the US) Houston Metro Area (6th largest in US) 5,000 square mile service area Approximately 2.1 million electric meters Houston Electric Delivers 73.6 billion kilowatt hours yearly for about 100 certified Retail Electric Providers Transmission and Distribution System 3,640 miles of transmission lines 41,913 miles of distribution lines 225 substations Electric Challenge: Effectively monitor and control millions of meters, line devices and miles of delivery wire which, if laid end to end, almost circle the earth twice around the equator

THE TEXAS ELECTRIC MARKET DEREGULATED SINCE JANUARY 2002 Solar Energy Retail Electric Providers Customer Relationship Retailer Retailer REP QSE Contracts Generator Generator Customer Appliances il ERCOT ISO TDSP Smart Meter REP Retail Electric Provider QSE Qualified Scheduling Entity TDSP Transmission & Distribution Service Provider P

Texas Electric Market is ERCOT (Electric Reliability Council of Texas) SPP > 100 Retail Electric Providers in TX WECC 4 Transmission and Distribution Utilities SERC Generation Companies 5

SIGNIFICANT EVENTS LEADING TO ADVANCED METERING INITIATIVE IN TEXAS 1999: Public Utility Regulatory Act of Texas Senate Bill 7 (SB7) is Passed 2002: TX Deregulated Electric Market Goes Live on January 1st 2005: US Energy Policy Act - encourages time-based pricing and demand response 2005: TX House Bill 2129 is passed required the PUCT to plan for AMI in Texas 2007: PUCT Substantive Rule 25.130 Advanced Metering rule 25.130 provided the foundation for implementation activities involving: Automated Or Remote Meter Reading, Disconnect / Reconnect Time stamped Meter Data for Wholesale Market Settlement Near Real-Time Access To Customer Usage Data By Customer Or Customer s REP Meter Price Signal Updates Access to 15-minute Data by Customers, REP s, etc. On-Meter Storage Of Meter Data Home Area Network (HAN) Support Future Technology Advancement Support Access to Meter Information by ERCOT for Wholesale Market Settlement 6

ADVANCED METERING IMPLEMENTATION TEAMS (AMIT) Late 2007: PUCT Initiated Project #34610 to address changes in retail and wholesale markets as a result of advanced metering. Plan for settlement, Customer web portals, security, the Home Area Network, etc. Workshops all of 2008 and 2009 1. Security 2. Access to data 3. Web Portal 4. Standardization of Functionality 5. Home Area Network (HAN) 6. Retail Transactions 7. Settlement 8. Customer Education 9. Long Term Settlement 7

Gathering Requirements Reporting Requirement Business Use Case / User Interface Business Questions lead Requirement User Interactions / to Task Inputs & Outputs / assignments storyboards Map these supporting requirement deliverables to Business Requirements Use Cases Test Objectives Goal: Solution Acceptance Solutions Cube Group LLC http://solutionscubegroup.com Contact: Jenina Smith 972-786-0900 Jenina.Smith@solutionscubegroup.com 8

SMARTMETERTEXAS.COM (SMT) COMMONE PORTAL TO AMI FOR TEXAS 9

ADVANCED METERING MARKET PORTAL SMARTMETERTEXAS.COM Meter Provisioning Meter Interval Usage Meter Attributes Customer Premise Info HAN Messages Detailed Usage Demand Response Settlement Customer Messaging

SMART METER TEXAS - PORTAL TO AMI 11

CONNECTIVITY METER TO HOME AREA NETWORK (HAN) - ZIGBEE Itron Openway meter is also a communication portal that enables demand side energy management and Water Heater monitoring Smart Thermostat L V 1 2 0 V Celular Relay BPL Repeater RF (Radio Frequency) Zigbee Pool Pump Compressor

MORE INFORMATION Public Utility Commission, Competitive Markets Division Advanced Metering Implementation Project http://www.puc.state.tx.us/electric/projects/34610/34610.cfm Advanced Metering Rulemaking Project Webpage www.puc.state.tx.us/rules/rulemake/31418/31418.cfm HB 2129 www.capitol.state.tx.us/billlookup/text.aspx?legsess=79r&bill=hb2129 13

Thank you for allowing me to share the Texas advanced metering Smart Grid story QUESTIONS? Bob.Frazier@CenterPointEnergy.co m 713-207-7979 14

APPENDIX 1

BENEFITS Retail Electric Providers (REPs) Development Of Additional Pricing Options Pay in advance, Time of Use, etc. Home Area Network (HAN) devices (thermostats, pool pumps, water heaters, displays) Settlement On Actual Usage At 15 Minute Intervals More Innovation / Competition CenterPoint Energy Houston Electric Complete all orders on desired date including same day orders Less intrusion into your property Less company pollution with fewer truck rolls Automated outage detection and repair dispatch Higher electric availability - less and shorter service disruptions (automated switching, correct dispatch) Alternative Emergency Load Curtailment Alternatives 16

SYSTEMS AND ARCHITECTURE TO SUPPORT CNP S ADVANCED METERING AUTOMATION REP & Customer Portal Functionality Automated Meter Infrastructure (AMI) Electronic Customer Orders, Billing & A/R Intelligent Grid (IG) Power Reliability (Preventative & Reactive) SAP 2007 / Page 17

CUSTOMER MODIFIED METER INSTALLS

WORSE SITUATION 19

FUTURE CONCEPTS Consumer Pricing Signals Energy Management / Conservation Financial Incentive Real-Time Load Management ERCOT Integrate With Existing Load Settlement Processes Eventual ERCOT Governance Of The Smart Meter Texas Portal Opens Possibilities Settlement Outside Whole Day Ownership (Move Out at 3:15 PM) Real-Time Transactions Move Out, Move In, Switches Reduce Database Production Copies Enhancing Portal Concept To Support Authorized 3 rd Parties For Other Services 20

CNP INTELLIGENT GRID ELECTRIC DELIVERY ROADMAP/JOURNEY The CenterPoint Energy Intelligent Grid Roadmap aligns with the DOE s Grid 2030 and EPRI s IntelliGrid Framework Self Healing Grid Objectives The self healing grid is an important building block of the smart power delivery system Preventive Identify and repair intermittent grid problems to minimize outages Real Time Sensing & Responding Quickly react to disturbances to minimize impact Continuous Monitoring Dynamically optimize the performance and robustness of the system CenterPoint Energy INTELLIGENT GRID ROADMAP 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 21