April 19, 2017 Columbus, OH

GRID OF THE FUTURE: THE UTILITY EXPERIENCE IN SMART CITY EFFORTS

Ryan Houk- Smart City Program Director

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THE PREMIER REGULATED ENERGY COMPANY

5.4

MILLION CUSTOMERS

11 STATES

26,000 MW GENERATION

40,000

MILES TRANSMISSION

224,000

MILES DISTRIBUTION

$63.5 BILLION ASSETS

17,600 EMPLOYEES

$16.4 BILLION

REVENUE (2016)

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THE CHANGING PARADIGM

New technologies, combined with the reduction of costs, have advanced their adoption by customers and public policy officials, which has fundamentally changed the traditional paradigm.

Technology “Scale in a One-way

Power System”

Public Policy “Least Cost”

Customer “Rate Payer”

Technology “Advancing to the

Grid Edge”

Public Policy “Get the Rules

Right”

Customer “Energy

Collaborator”

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NEW ENERGY CONSUMER

New Energy Consumer Research program: 7 years of insights

Energy as a Platform

Digital by Design

Satisfaction Paradox

Innovative Business Models

Asymmetric Competition

Digital platform implementations require design thinking. Business and operating model transformation are a key element of the digital investments required to provide a desired level of user experience.

Customer operations and retail are becoming an important strategic lever requiring new and innovative business models.

Millennials stepping into the energy market are more digital-savvy and demanding, blurring the lines of traditional segmentation.

The energy ecosystem complexity is accelerating as new technologies emerge and new entrants are coming from everywhere.

The next generation of integrated energy management home solutions require energy efficiency adoption to be enabled by other technologies like DER, storage, mobile connectivity and digital apps

Source: Accenture New Energy Consumer (2016)

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CHANGING CUSTOMER EXPECTATIONS

2010 2012 2014 2016

Technology

recycling

Loyalty

program

Home energy

efficiency

products

Energy saving

consultations

Home energy

efficiency

products

Energy saving

consultations

Energy

management

devices and

services (with

automation)

Connected

home

(integrated with

mobile app)

Home generation

(DER)

Electric vehicle

Home

generation

(DER)

Smart meter

Time of use

tariff

Connected

home

Automated

energy supplier

switching service

Home

generation

(DER)

Home

generation

(DER)

Energy

management

devices and

services

Energy

management

devices and

services (with

back-up energy

storage)

Connected

home

* Back-up energy emerging in 2014 and analytics driven home energy management applications becoming common in 2015-2016.

Single product to integrated propositions…

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THE TRADITIONAL ONE-WAY GRID IS BEING TRANSFORMED…

GENERATION CUSTOMERS

TRADITIONAL GRID

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...INTO AN INTERACTIVE, TWO-WAY, INTELLIGENT SYSTEM.

Storage and Grid Power Balancing

Distributed Generation Integration

Solar and Wind Balance with Distributed Energy Resources (DER)

Clean Energy

EV Charging

Automated Demand Side Management (ADSM)

Reduce Peaker and T&D Upgrades

Microgrid integration

Grid of the

Future

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THE GRID OF THE FUTURE

Decarbonized Cleaner, greener more sustainable energy options

Digitalized Network services across multiple platforms providing customers with greater control over energy products and services

Decentralized Intelligent devices from substations to customers’ homes and premises – Industrial Internet of Things

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THE ROLE OF TECHNOLOGY

8

Customer Generation Distribut

ion Transmi

ssion

Meter

Improve the efficiency, reliability,

flexibility & maintainability of

the existing generating fleet. Develop and deploy new generation

technology, systems and equipment to support the integrated grid of the future.

Explore opportunities

“Behind the Meter” to improve overall grid efficiency and

maximize customer benefits.

NGCC Large-scale Wind & Solar PV Innovative Power Cycles Clean Fossil (CCUS) Advanced Nuclear

Community Solar PV ICE Engines & Aero Turbines Energy Storage Combined Heat & Power Microgrids Hybrid Technologies Fuel Cells

Rooftop PV Energy Storage “Smart” Home

Data / Feedback / Preferences Improved Technology

Monitoring & Diagnostics Lean Principles

Options / Solutions / Satisfaction

8

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HOME AUTOMATION

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ENERGY APP AND ECOSYSTEM

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SMART STREET LIGHTING

Communication

System

Street

Light

Control

Software

Street

Light

Monitoring

Software

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A GLIMPSE AT THE FUTURE OF ELECTRIC VEHICLE CHARGING

http://www.fleetcarma.com/electric-vehicle-charging-future/

Ultra-Fast Charging

Autonomous Park & Charge

Charging Pads

Wireless Road Charging

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BACK TO THE FUTURE LEARNING FROM THE PAST, SHAPING THE FUTURE

Source: http://www.american-automobiles.com/Electric-Cars/Columbus-Electric.html

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