Deployed AMI Value –

Real World Examples

                                                               

Scott DurhamVice President, Strategic Accounts

Elster Integrated Solutions

Elster: The global leader in metering solutions

170 years of experience providing solutions for Electric, Water, and Gas utilities

Over $1.8Billion in annual revenue 200 Million meters installed The largest provider of metering systems in the world –

Names you know American Meter – Gas – Now Elster American Meter ABB Electric Meters – Now Elster Electricity AMCO Water Meters – Now Elster AMCO Water

A leader in 115 markets and 38 countries $35Billion in assets 9,000 Worldwide employees Energy Axis – Complete electric, gas, water AMI system - Over

1 Million Smart Meters Deployed Raleigh, North Carolina, Headquarters of Elster Integrated

Solutions and Center of Excellence for AMI/AMR Technologies

Functionality % responses

Theft Detection 52%

Outage Monitoring 32%

Customer Energy Management 26%

Remote Disconnect 23%

Revenue Assurance 23%

Load Forecasting 19%

Time of Use (Residential) 16%

Time of Use (Commercial) 16%

Load Control 13%

Demand Response 10%

Asset Monitoring/Distribution Automation

6%

Distribution Generation 3%

Leak Detection 3%

AMI top functional choices, market comments…

Chartwell 2006 Industry Report

2007 Planning, development, test…

2008 $$$

2009+ $$$$

Energy Axis Network Showing Repeater Levels

Active Collecto

r

All 227 REX meters registered using 7 hops

(6 Repeater levels)

Alternate Collectors

All 227 REX meters registered using 5 hops

(4 Repeater levels)

Active Collecto

r

4000

ft.

2000

ft.

Demonstrated Demand Response…

Applications: In-Home displays Thermostat control Load Control Integrated Prepay

Open and Interoperable with multiple 3rd party vendors:

Riga Thermostat

Riga Appliance Control Module

Riga

4C Energy Solutions

2.4 GHz

EnergyAxis 900 Mhz Radio

Blueline433 MHz

Payback - EnergyAxis Remote Disconnect…

Fully integrated 200A disconnect switch No visual equipment signifying disconnect capability…

meets regulatory non-discrimination requirement Available demand limiting threshold Monitors load side voltage for safety and tampering

Alerts via MAS if there is load side voltage when switch is open

Integration with Prepayment metering Designed for safety

Switch will not be closed if load side voltage is detected

Leading the market in integrated disconnect deployment

AMI Business Case All values based on customer test deployment

Planned 175,000 Electric Meter Deployment, 40,000 with Disconnect Feature

IRR 53.49%

Payback 1.65 Years

Total Capital Investment $ 23,984,975

Average Yearly Savings/Cash Flow $ 14,560,322

7-Year Calculated Savings $101,922,253

AMI will reduce meter reading cost, charge offs, past due accts, theft, field service orders and increase responsiveness, cash flow and revenue while reading 99+% of meters every day.

AMI Business Case

Savings Not Included in the Analysis

TOU and/or load profiling

Reduction in estimated billing

Reduction in retraining meter readers

Reductions from inflation & population growth

Reduction in injuries to meter readers

A new one…the benefit of redirecting meter readers to collection

The benefit of DR capability…

The benefit of outage management/analysis…

Customer Experience

SRP – Phoenix, AZ

AMI in areas that have a high volume of service calls.

10k/mo., nearly 200k smart meters installed

90,000 remote disconnect meters

Over 150,000 remote service calls since system installed.

Completing over 1,000 remote disconnect/connects per week

Reduce meter reading costs.

Identifying outages and leaks.

Monitoring conservation.

Improve customer service.

Hourly water usage profile, water usage billed at tiered rate.

Pole mounted repeaters for water only areas

F’burg is a GREAT town…

Fredericksburg, TX – AMI

rollout for electric and water

Customer Experience

AVEC - AK

Alaska Village Electric Cooperative uses AMI to read meters in remote villages.

Villages are several hundreds of miles away and are not accessible in the winter.

It is impossible to manually read meters in the winter.

Meters are read remotely from office in Anchorage, Alaska.

AVEC is able to localize and react to power outages.

Customer Experience

CFE Fully integrated CIS generates

disconnect/connect actions

Greatly enhanced safety for employees

Significant revenue assurance improvement, theft losses down

Many meters not accessible

Reading meters in mountainous area via satellite phone

Customer Experience

High Rise Applications

Controlled Access

High Transient Rates

300 Electric Meters

300 Water Meters

300 Chilled Water Meters

Mesh communicates between floors

All read every day…

Solaire Tower in Orlando

Customer Experience

Coalition of Large Distributors (CLD) went through a lengthy procurement process in 2006

Toronto Hydro, Hydro Ottawa, Enersource, Horizon Utilities, PowerStream, Veridian

Selected 5 Vendors of Record

Each utility then selected a supplier and negotiated a contract

Elster signed contracts with 5 of the CLD utilities

2 ASP’s have Energy Axis systems installed offering reading services

230k Energy Axis smart meters delivered in 2006

Delivery at a rate of 40-50k per month in 2007

Expect to deliver 500 – 800k in 2008

Elster in Ontario

Thank You…

Contact Information:

Scott DurhamVP, Strategic Accounts

Elster Integrated Solutionsscott.durham@us.elster.com

241-912-0671