Advanced Metering Systems Update

CenterPoint Energy Houston Electric

October, 2009

© 2007 CenterPoint Energy Proprietary and Confidential Information 2

Chartered in 1882 5,000 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:90,000+ Itron OpenWay meters (2.0/2.0) installed to-date

99.75% register read rate80 to 99.0+% interval (15 minute) read rate

100% Connect/disconnect capable (200 amp, 1 phase)10,600+ connect/disconnects since 7/21/09

5 year project – 2.4 million electric

CenterPoint Energy – Houston

© 2007 CenterPoint Energy Proprietary and Confidential Information 3

Major AMS Touch Points

Conventional

Transmission

Distribution

OperationsSmart Meter

REP / Customers

Substations

Intelligent GridSelf Healing Grid – Enhanced Reliability

Energy Independence

Renewable Generationwith Storage

“Clean Energy” Power Sources

Mid Grid Automation

In Home Automation &

PHEV’s

© 2007 CenterPoint Energy Proprietary and Confidential Information 4

AMS Roadmap

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Advanced Meter System (AMS)• Enables time and peak based pricing• Automated Meter reading and alerts• Enables prepay meter option• Remote Meter Connect / Disconnect• Enables demand management• Enables energy conservation• Enables Home Area Network

Self-Healing Grid• Improved Asset Mgmt / Visibility• Real time Grid Condition Monitoring• Automated Grid switching,• Meter as a Sensor• Transformer Load Mgmt• Condition Based Crew Dispatching• Grid Event Detection and Location

Event Avoidance• Predictive Failure System • Advanced Multi Source Data Analysis• Grid Event Diagnostics

CNP’s smart grid initiative focused on installing the smart metering system

first to allow consumers to capture the benefits more rapidly.

Grid Automation will:• Improve system reliability • Optimize business processes• Leverage technology to achieve operational efficiencies• Improve asset utilization • Prolong life of aging infrastructure• Improve customer satisfaction

© 2007 CenterPoint Energy Proprietary and Confidential Information 5

Major AMS Program Components

• 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

In December, 2008, CenterPoint Energy (CNP) obtained PUCT approval for full smart meter deployment (2.4m meters over 5yr period).

© 2007 CenterPoint Energy Proprietary and Confidential Information

AMS CommunicationsAMS Communications Network: • Consist of radio/microwave tower based GE WiMAX access points spread throughout CNP’s electric

service area that communicate to Cell Relays and provides a high speed/bandwidth communications path back to the CNP Backbone (see GE WiMAX Radio Network)

• The Cell Relays then communicate with many meters that form a mesh network (see Itron Cell Relay Network)

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Cell Relay Deployment Plan

GE WiMAX Tower Deployment Plan

Year-to-Date 2009 2010 2011 2012 2013

GE’s WiMAX Radio tower based Access Points will

communicate to Itron’s Cell Relays at a ratio of approximately 70:1

Itron’s OpenWay Meters will form a mesh network that will communicate to Itron’s Cell Relays at a ratio of approximately

400:1

Year End

© 2007 CenterPoint Energy Proprietary and Confidential Information

Typical AMS Communications Setup

Antenna

Cell Relay

WiMax Radio

AC Power Plugs

© 2007 CenterPoint Energy Proprietary and Confidential Information

AMS Functionality and HAN

• Functionality (non-inclusive) – Texas Common Data Repository and Portal– 15 Minute usage data– Remote connect / disconnect (connect within one hour)– Real time meter interrogation for power availability 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

© 2007 CenterPoint Energy Proprietary and Confidential Information

Home Area Network (HAN)

ZigBee Programmable Communicating Thermostat

In Home Device Monitor (& Control)

OpenWayMeter

NetworkZigBee

HAN Traffic(Limit Five Devices)

Load Control•Pool Pumps•PHEV •Electric Water Heaters•Electric Heaters•Washer / Dryer

Internet

CenterPoint Energy

Retail Energy Providers

Consumers

AMS HAN offers additional load control options:• Non-essential vs. comfort appliance control• Improved customer usage awareness:

• Time sensitive rate making• Load shaping• Energy conservation

© 2007 CenterPoint Energy Proprietary and Confidential Information

Home Area Network (HAN)Consumers

Consumers

REP’s

Wireless ZigbeeWireless

HomeArea

Network Devices

BroadbandConnection

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…)

Complex High End HAN

Complexity of HAN Devices

© 2007 CenterPoint Energy Proprietary and Confidential Information

The value of an integrated, remote service switch can be realized in several areas

Key Feature Potential AMI Benefit

Integrated within AMS meter design

Reduces installation cost (vs. collared solution) Reduces potential device tampering costs Reduces credit/ collections costs

Enables remote power disconnect/ reconnect

Supports pre-payment services Reduces field service orders/ truck rolls Improves employee field safety

Configurable load (current) limiting set points

Enables peak load limiting programs Enables more flexible pricing and service plans

Single-site or multiply addressable Supports emergency grid reliability actions Supports demand response programs

On-demand or scheduled actions Improves customer convenience/ satisfaction Reduces potential grid impacts for cold load pickup Complete disconnection for inactive service locations

Safety switch and load-sensing lockout

Emergency reconnection for medical reasons Short term disconnects for customer-side wiring work

© 2007 CenterPoint Energy Proprietary and Confidential Information

AMS Field Overview

Internet Web Services

Internet Web Services

FIBER LINK

Medium Volta

ge Line

Cell Relay

RF Wireless Repeater

Wireless Tower

Residential Consumer

High Voltage Lines

Wind Generation

Smart MeterLocal Home Area Network

Metering CommunicationsBack Office

SystemsTexas Common

PortalHAN