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PUCT Staff
September 19, 2011
Current Status



    Advanced Metering System
        1.6 million smart meters deployed
        Smart Meter Texas portal deployed
        Meter accuracy was validated by PUCT/Navigant Consulting

    Benefits achieved
        1.5 million meters being read for billing electronically
        1.4 million service orders completed electronically
        Average electronic service order execution time is 30 minutes
        1,500 HAN devices deployed and functioning
        About 150 direct and 400 indirect jobs have been created/retained as of Q2 2011

    Project is on Schedule
        $200M DOE grant accelerated project completion from 2014 to 2012
        2.2 million meters will be deployed by mid-2012




                                                                                           2
How are we doing?


●   Deployment of Smart Meters is on schedule (73 percent complete)



●   Design of Advanced Distribution Management System is underway


●   Installation of Intelligent Grid infrastructure is underway with work in
    six substations and installation of 186 switching devices complete

●   Invoiced $190M and received $190M in reimbursement from our
    $200M Department Of Energy Smart Grid Investment Grant


●   Recognized globally as a leader in smart metering
                                                                               3
$200M DOE Stimulus Grant


DOE Grant Awarded – December 24, 2009

Advanced Metering System (AMS)
 Accelerate installation of 2.2 million AMS meters from 2014 to 2012
    Moved from 44,000 meters/month to 80,000 meters/month
    Moved from 120 cell relays/month to 200 cell relays/month
 Impact of DOE grant was incorporated into our surcharge reconciliation,
  reducing the cost of AMS to end-use consumers


Intelligent Grid (IG)
 Automate 226 distribution circuits and 29 distribution substations
 Install software systems to monitor and control the smart grid
 Establish bi-directional communication network to support IG, by leveraging
  the AMS communications system

                                                                            4
Global Recognition


•   Our Energy InSight Center has hosted nearly 700 tours with local, state,
    national, and international guests
        Delegations from many countries (France, Germany, Brazil, Canada,
         Russia, South Africa, UK) visited our facilities in the past year
        Three FERC commissioners made site visits
        Representatives of the Department of Energy spent three days on site
        We participated in a US delegation to Russia on behalf of US Energy
         Association
•    A successful audit by the Inspector General of the Department of Energy was
    conducted in December
•   A media celebration was held in February commemorating the 1,000,000th
    meter installed, with widespread coverage by media channels
•   A press conference with DOE Deputy Secretary Poneman was held in July to
    announce consumer adoption of HAN devices with widespread coverage by
    media channels                                                                 5
Components of our
     Advanced Metering System (AMS)


                                                                              Data Collection      Meter Data
                                                     Digital
                                                                                   Engine         Management
                                                  Communications
                                                                              (Itron DCE 3.0        System
                                                    Backhaul
                                                                                    SP1)        (eMeter MDM 6.2)

Itron Open Way
HW 2.0 SR 3.0
                                                                                                    Legacy
                                                                                                    Systems



                  Wireless Communications
                        Environment                                Legend
                   (GE WiMax with GSM                                                             Smart Meter
                          Backup)                                  Existing                       Texas Portal
                                                               Recently
                                                               Deployed


 Combined with back office computer systems and integration, our AMS provides:
     Daily register reads                     Remote connect / disconnect / on-demand reads
     Daily 15 minute interval reads           Access to data via Smart Meter Texas portal
                                                                                                                 6
Some Components of our
Intelligent Grid (IG)




  Combined with back office computer systems, our IG technology, when fully
deployed, will automatically identify the location of power outages, isolate faulted
sections of the main feeder portion of the network and re-route power from other
                    sources, essentially “healing” the system.
                                                                                       7
Consumer benefits of smart meters


   Available NOW
        Remote meter reading
        Faster, automated move-in/out, switching
        Pre-paid service, time-of-use rates
        15-minute usage data to promote
         energy conservation
        Easier integration of distributed generation and renewables
   Available SOON
                                                        71 percent of participants in CNP’s
        Automatic outage notification                  In-Home Display pilot program
   Available in the FUTURE                             indicated that they have…”changed
        Energy analysis and cost comparison tools      their electric consumption behavior…”
                                                        as a result of the information available.
        Support for plug-in hybrid electric vehicles
        Consumer remote control of thermostats and appliances (HAN)
        Energy management systems
        Ability to participate in Demand Response programs
Consumer benefits of intelligent grid


   Initial Benefits
        More precise identification of outage
         locations, resulting in faster
         restoration of electric service
        Reduction in time required to perform
         circuit switching to isolate fault


   Long-term Benefits
        Improved reliability and faster
         restoration, especially during major
         weather events
        Enhanced and improved customer
         communications and notifications
The Customer Benefits in a
More Robust Electricity Market

                                            Educate
 Encourage                              consumers about
   demand                               electricity usage
  response




                                          Help consumers
                                          save money on
                                             utility bills




                                              Facilitate
                                             Distributed
                                            Generation and
 Enhance customer         Improve            Renewables
     service              reliability
                                                             10
Energy Efficiency (EE)
Customer Engagement Programs


The following initiatives involve direct customer engagement:
   •       2011
             Residential Energy Feedback R&D Project - Approx. 800 IHDs
             In-Home Display REP Pilot Program - Approx 1,500 IHDs
             “Smart Partners” R&D Project
             –    Residential Direct Load Control Demand Response – (39 thermostats, 104 Switches)
             –    Residential/Small Commercial Standby Generator Demand Response – (3 Homes)
   •       2012
             Energy Efficiency Ambassador Program: Community-based outreach to
              educate customers on energy conservation, smart meters and PEVs
             Retail Electric Provider (REP) Pilot Program - $3.5 MM¹ set aside
              program for the REPs: structured as a cafeteria plan to pick participation
                   In-Home Displays (IHDs)                         Time-of-Use Rates (TOUs)
                   Direct Load Control                             A/C Tune Ups
                                                   (1) 2012 Budget could include 25K IHDs or 18K DLC/LM or
                   Load Management                    70K Tune Ups depending on participation from REPs
                                                                                                             11
What’s Next?
 Smart Meters Are Just The Beginning



Smart Meters
                                                              Phase 1:
               HAN Devices        Smart Appliances            Customer
                                                              Insight
               Intelligent Grid    Intelligent Load Shed

                         Price control / load control          Phase 2:
                                                               Customer
                         Electric vehicles          Storage    Engagement

                    Phase 3:          Micro Grids
                   Customer
                  Co-Creator
                                      Advanced Self-Healing Grid
                     of Value         Aggregated Demand Management

2010      2011         2012        2013      2014                    2020
                                                                            12
DOE Acknowledgement and
Disclaimer

Per the DOE Grant Agreement,:
 “If you publish or otherwise make publicly available the results of the work conducted under
the award, an acknowledgment of Federal Support and a disclaimer must appear in the
publication of any material, whether copyrighted or not, based on or developed under this
project, as follows:”

Acknowledgment: “This material is based upon work supported by the Department of Energy
under Award Number [DE-OE0000210]”

Disclaimer: “This report was prepared as an account of work sponsored by an agency of the
United States Government. Neither the United States Government nor any agency thereof,
nor any of their employees, makes any warranty, express or implied, or assumes any legal
liability or responsibility for the accuracy, completeness, or usefulness of any information,
apparatus, product, or process disclosed, or represents that its use would not infringe
privately owned rights. Referenced herein to any specific commercial product, process, or
service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute
or imply its endorsement, recommendation, or favoring by the United States Government or
any agency thereof. The views and opinion of authors expressed herein do not necessarily
state or reflect those of the United States Government or any agency thereof.”


                                                                                                13

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Houston's Smart Grid: Transforming the Future of Electric Distribution & Energy Consumption

  • 2. Current Status  Advanced Metering System  1.6 million smart meters deployed  Smart Meter Texas portal deployed  Meter accuracy was validated by PUCT/Navigant Consulting  Benefits achieved  1.5 million meters being read for billing electronically  1.4 million service orders completed electronically  Average electronic service order execution time is 30 minutes  1,500 HAN devices deployed and functioning  About 150 direct and 400 indirect jobs have been created/retained as of Q2 2011  Project is on Schedule  $200M DOE grant accelerated project completion from 2014 to 2012  2.2 million meters will be deployed by mid-2012 2
  • 3. How are we doing? ● Deployment of Smart Meters is on schedule (73 percent complete) ● Design of Advanced Distribution Management System is underway ● Installation of Intelligent Grid infrastructure is underway with work in six substations and installation of 186 switching devices complete ● Invoiced $190M and received $190M in reimbursement from our $200M Department Of Energy Smart Grid Investment Grant ● Recognized globally as a leader in smart metering 3
  • 4. $200M DOE Stimulus Grant DOE Grant Awarded – December 24, 2009 Advanced Metering System (AMS)  Accelerate installation of 2.2 million AMS meters from 2014 to 2012  Moved from 44,000 meters/month to 80,000 meters/month  Moved from 120 cell relays/month to 200 cell relays/month  Impact of DOE grant was incorporated into our surcharge reconciliation, reducing the cost of AMS to end-use consumers Intelligent Grid (IG)  Automate 226 distribution circuits and 29 distribution substations  Install software systems to monitor and control the smart grid  Establish bi-directional communication network to support IG, by leveraging the AMS communications system 4
  • 5. Global Recognition • Our Energy InSight Center has hosted nearly 700 tours with local, state, national, and international guests  Delegations from many countries (France, Germany, Brazil, Canada, Russia, South Africa, UK) visited our facilities in the past year  Three FERC commissioners made site visits  Representatives of the Department of Energy spent three days on site  We participated in a US delegation to Russia on behalf of US Energy Association • A successful audit by the Inspector General of the Department of Energy was conducted in December • A media celebration was held in February commemorating the 1,000,000th meter installed, with widespread coverage by media channels • A press conference with DOE Deputy Secretary Poneman was held in July to announce consumer adoption of HAN devices with widespread coverage by media channels 5
  • 6. Components of our Advanced Metering System (AMS) Data Collection Meter Data Digital Engine Management Communications (Itron DCE 3.0 System Backhaul SP1) (eMeter MDM 6.2) Itron Open Way HW 2.0 SR 3.0 Legacy Systems Wireless Communications Environment Legend (GE WiMax with GSM Smart Meter Backup) Existing Texas Portal Recently Deployed Combined with back office computer systems and integration, our AMS provides:  Daily register reads  Remote connect / disconnect / on-demand reads  Daily 15 minute interval reads  Access to data via Smart Meter Texas portal 6
  • 7. Some Components of our Intelligent Grid (IG) Combined with back office computer systems, our IG technology, when fully deployed, will automatically identify the location of power outages, isolate faulted sections of the main feeder portion of the network and re-route power from other sources, essentially “healing” the system. 7
  • 8. Consumer benefits of smart meters  Available NOW  Remote meter reading  Faster, automated move-in/out, switching  Pre-paid service, time-of-use rates  15-minute usage data to promote energy conservation  Easier integration of distributed generation and renewables  Available SOON 71 percent of participants in CNP’s  Automatic outage notification In-Home Display pilot program  Available in the FUTURE indicated that they have…”changed  Energy analysis and cost comparison tools their electric consumption behavior…” as a result of the information available.  Support for plug-in hybrid electric vehicles  Consumer remote control of thermostats and appliances (HAN)  Energy management systems  Ability to participate in Demand Response programs
  • 9. Consumer benefits of intelligent grid  Initial Benefits  More precise identification of outage locations, resulting in faster restoration of electric service  Reduction in time required to perform circuit switching to isolate fault  Long-term Benefits  Improved reliability and faster restoration, especially during major weather events  Enhanced and improved customer communications and notifications
  • 10. The Customer Benefits in a More Robust Electricity Market Educate Encourage consumers about demand electricity usage response Help consumers save money on utility bills Facilitate Distributed Generation and Enhance customer Improve Renewables service reliability 10
  • 11. Energy Efficiency (EE) Customer Engagement Programs The following initiatives involve direct customer engagement: • 2011  Residential Energy Feedback R&D Project - Approx. 800 IHDs  In-Home Display REP Pilot Program - Approx 1,500 IHDs  “Smart Partners” R&D Project – Residential Direct Load Control Demand Response – (39 thermostats, 104 Switches) – Residential/Small Commercial Standby Generator Demand Response – (3 Homes) • 2012  Energy Efficiency Ambassador Program: Community-based outreach to educate customers on energy conservation, smart meters and PEVs  Retail Electric Provider (REP) Pilot Program - $3.5 MM¹ set aside program for the REPs: structured as a cafeteria plan to pick participation In-Home Displays (IHDs) Time-of-Use Rates (TOUs) Direct Load Control A/C Tune Ups (1) 2012 Budget could include 25K IHDs or 18K DLC/LM or Load Management 70K Tune Ups depending on participation from REPs 11
  • 12. What’s Next? Smart Meters Are Just The Beginning Smart Meters Phase 1: HAN Devices Smart Appliances Customer Insight Intelligent Grid Intelligent Load Shed Price control / load control Phase 2: Customer Electric vehicles Storage Engagement Phase 3: Micro Grids Customer Co-Creator Advanced Self-Healing Grid of Value Aggregated Demand Management 2010 2011 2012 2013 2014 2020 12
  • 13. DOE Acknowledgement and Disclaimer Per the DOE Grant Agreement,: “If you publish or otherwise make publicly available the results of the work conducted under the award, an acknowledgment of Federal Support and a disclaimer must appear in the publication of any material, whether copyrighted or not, based on or developed under this project, as follows:” Acknowledgment: “This material is based upon work supported by the Department of Energy under Award Number [DE-OE0000210]” Disclaimer: “This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Referenced herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinion of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.” 13