The Regulatory Environment

Ed MayDirector of Business Development, AMIItron Inc.

Agenda• Highlighting State Compliance

with EPACT 2005 Section 1252

• Legislation Moving in110th Congress

• Status of Technical Standards(ANSI, ZigBee®)

AMI

AMR

• Meter Reading Cost & Efficiency

• Revenue Cycle Improvements• Operational Improvements

• Voluntary Time Based Rates / Opt In

• Revenue Protection / Theft Detection

• Outage Reporting

• Support for Intelligent Grid

• Mandatory Time Based Rates / Opt Out

• Remote Disconnect / Prepayment

• Demand Response

• Enterprise Meter Data Management

• Smart Meter

• TOU / Demand / Net Metering

• RTP / CPP / Hourly Rates

• New Products & Services / Voluntary TOU

• Home Automation

Walk-byDriv

e-byFN-AMR

2-WayOpen Protocols

Definition of Advanced Metering

• FERC: A metering system that recordscustomer consumption [and possibly otherparameters] hourly or more frequently and thatprovides for daily or more frequent transmittalof measurements over a communicationnetwork to a central collection point.

What is AMI?

“In the course of Department of Public ServiceStaff’s review of the utilities’ AMI plans, itbecame apparent that the utilities do not have aconsistent understanding of what physicaland/or functional characteristics an AMI systemshould include.”

AMI Defined

• AMI is the use of smart meters, with advanced two-waycommunication technologies, that enables utilities to:

– Meet their business & operational needs for meterdata collection

– Empower ALL their customers to actively andfrequently participate in demand response andenergy conservation

– Help move toward a smart grid

Section 1252: Procedures, Not Outcomes

� Section 1252 says: “Not later than 18months after enactment, each electric utilityshall offer each of its customer classes…atime-based rate schedule to enable them tomanage energy use and cost throughadvanced metering and communicationstechnology”

� PURPA Section 111(a) says: “Each stateregulatory authority…shall consider eachstandard” and then “make a determinationconcerning whether or not it is appropriate toimplement such standard”

EPACT 1252 Proceedings Status Summary

• States with open proceedings: 27• States with closed proceedings: 12• States deciding to adopt 1252: 3• States declining to adopt 1252: 13• States deferring decision: 5

True, not many states have said “yes,” but…

• Because a state declined adoption of1252, that doesn’t mean it’s notpursuing time-based rates anddemand response– For example, California, Texas,

Oregon, New York

• Some states have deferred actionuntil individual utilities file their nextrate case or IRP

Notable states

• New York– Declined to accept EPACT Section

1252 standard, but are requiring AMIbe offered to all customers “to theextent feasible and cost effective”

– PSC is currently reviewing IOU’s AMIplans

• Ohio– Accepted EPACT Section1252

standard– Currently hosting AMI workshops

Notable states, cont.

• California– Did not open docket for Section 1252– All three IOUs are in various stages of

major AMI deployments and/or PUCauthorizations

• Maryland– Deferred Decision on Section 1252– PSC created 2 AMI initiatives:

PHI Collaborative andAMI/DSM Collaborative

Notable states, cont.• Texas

– No EPACT Section 1252 decision to date– PUC recently finalized advanced metering

rules– Rules require compliance with open

standards• Connecticut

– Did not open EPACT docket for Section 1252– Legislature passed energy bill that required

IOUs to submit AMI plans and TOU pricingplans to commission, which are currentlyunder review

Legislation in 110th Congress

• Smart Grid Legislation– Senate Bill – HR 6– House Bill – HR 3221

• Energy Tax Legislation– House Bill – HR 2776– No companion bill in Senate– Accelerated depreciation for

qualified energy managementdevices, including smart meters

Legislation in 110th Congress, cont.• Highlights of Smart Grid bills

– Creates Grid Modernization Commissionto facilitate smart grid technologies,including interoperability protocols

– Smart grid assessment andreport to Congress

– R/D funds for DOE– Federal matching funds for

smart grid investments– Requires states to consider cost

recovery for smart grid technologydeployments by utilities

“The success of AMI systems further requires an openstandard that enables multi-vendor, interoperableequipment.”

PUBLIC SERVICE COMMISSION

Open Standards make for Interoperability

– Five key standards• Services Oriented Architecture• Web Services• ANSI C12.19• ANSI C12.22• ZigBee®

ANSI C12.22– Standard addressing for network datagrams containing

C.1219 data tables– Application-layer standard– Can work across any network/medium: BPL, PLC, WiFi, RF,

IP, telephone– In the stages of ratification

ANSI C12.22

BPL WiFi

Private WiMaxPLC

What is ZigBee?

• 65,536 network (client) nodes

• Full Mesh Networking Support

• 27 channels over 3 bands[2.4GHz, 915MHz, 868MHz]

• 250Kbps data rateNetwork coordinatorFull Function nodeReduced Function node

Communications flowVirtual links

Data Rate (Mbps)

Ran

ge

ZigBee802.15.4

802.15.3802.15.3a802.15.3cWPAN

WLAN

WMAN

WWAN

WiFi802.11

0.01 0.1 1 10 100 1000

Bluetooth802.15.1

IEEE 802.22

WiMaxIEEE 802.16

IEEE 802.20• Standards based

• Radio + protocol

• Mesh networking

Ret ail Ap ps

Customer Self-Service

Utili ty

Ap p s

Portal

WaterHeater

LV120V

Meter Relay

BPLRepeater

BPLRepeater

ZigBeeZigBee

Compressor

PoolPump

Utility PriceSignals

Utility PriceSignals

SmartThermostat

Visionfor Energy Management and Conservation

Simple Awareness

Direct Load Control

Price Response

DR + Conservation

•New Regulation•Enhanced Competition•Mandatory Programs•Voluntary Participation•Demographics•Economics•Social Acceptance

Energy Management

Tendril

Comverge

Aztech

ZigBee Members Involved with EnergyEfficiency

Open Standards Working Together

Regulatory Bodiesare charting the course

“…a HAN communications system in support of demandresponse applications based on an open standardarchitecture that complies with nationally recognizednon-proprietary standards such as ZigBee,HomePlug or equivalent…”

Advanced Metering rules approved May 10, 2007

“open standards and protocols that comply withnationally recognized non-proprietary standardssuch as ANSI C12.22…”

Regulatory Bodiesare charting the course

DEPARTMENT OFPRIMARY INDUSTRIES

Adoption ofopen communications protocols and standards for the

Victorian Advanced Metering Infrastructure (AMI) program

“The current Victorian approach:The Victorian approach will achieve open communications ateither end of the AMI system… That is, the open standardZigbee AMI profile is likely to be prescribed for the HAN…”

Regulatory Bodiesare charting the course

PUBLIC SERVICE COMMISSION

The following list provides the features and functions proposed by Staff forinclusion in a standard for AMI systems to be adopted by the Commission:

a) ANSI compliant (must meet all ANSI standards).h) Utilizes open standards-based communication protocols and platforms, e.g.,broadband, PLC, internet, XML, MV-90, Zigbee, DNP3, etc.

Notice seeking comment - defining AMI

Ed MayDirector of Business Development, AMIItron Inc.214-906-4330ed.may@itron.com

Thank You.