Jill M. LyonVP & General Counsel

May 20, 2008

RELIABILITYSystems built to withstand disastersSystems built to work everywhereNew solutions always considered, but vendor

and technology must be proven Maintaining existing spectrum viability Access to sufficient spectrum (shared or

dedicated) to meet significant future needs

InteroperabilityWithin utility, among systemsBetween utility and others (emergencies)Among utilities at data level (Smart Grids)

First time Congress thinks of utilities and communications/IT together!

Lays out Congressional thinking about what is necessary for smart grid migration and how Federal government should participate

For specific UTC goals, Title XIII (Smart Grid) discusses utility communications capability in several places

DOE, FERC, States and stakeholders to carry out program re: digital information technology use. Broad language, but importantly, includes language:

“to conduct research to advance the use of . . . secure and dependable communications in a highly distributed environment”

“to test new reliability technologies, including those concerning communications network capabilities in a grid control room environment”

“to identify communications network capacity needed to implement advanced technologies.”

DOE Office of Electricity Delivery and Energy Reliability tasked w/report on status of smart grid deployments: 1 yr, then every 2 years Report to include utility communications

network capabilities Can include recommendations for State/Federal

policies, actions to help transition Should be regionally based

Title also mandates Smart Grid Advisory Committee (stakeholders), Task Force (internal to FG); funding options; standards; security inquiry.

Existing Spectrum Challenges 150-512 MHz Narrowbanding and Next Steps 700 MHz – Access for CI? 800 MHz – Rebanding mostly complete; new

decision for Canadian border regions 900 MHz – LMR Decision Coming? 902-928 MHz – LMS Changes Must Protect

Critical Systems; also Spectrum Etiquette 2 GHz Microwave Relocation – again 6 GHz – support FWCC’s call for 30 MHz paths 14 GHz – Petition for Rulemaking to allow

secondary use by CI TV White Spaces Migratory birds & tower lighting

FCC auction of A-E blocks of spectrum nets $19 billion, but no D-Block sale, questions about viability of interoperable network framework

FNPR just released asks questions about how to re-auction (keep PS network? Basic commercial auction?) Mention of CI as possible users; however,

question of eligibility based on Sec. 337 definition

Regardless of outcome, utilities will make good partners for D-block winner: access to towers, infrastructure, fiber, for access to spectrum

Petition for Rulemaking filed 5/6 seeks CII access to 14.0-14.5 GHz Secondary status – spectrum shared with

satellite Designed for terrestrial pt-to-pt, pt-to-multipt. Could support short-distance, broadband data

needs UTC to obtain nationwide license, serve

as “CII Coordinator” under proposal Commercial operator Winchester would

have lower-priority access, help to avoid interference with satellite.

FCC loses challenge by environmental groups in DC Circuit court 2/19Didn’t apply NEPA, other statutes properly

when denying challenge to Gulf towersRemanded to comply, also provide meaningful

notice of pending tower applications - ? NAB/CTIA/NATE/PCIA petition to include notice

as part of ASR process – environmental challenges to be treated as Petitions to Deny

LMCC to file comments noting difficulties created for frequency coordinators, suggesting solutions

Utilities to spend $100s billions over next 10-20 yrs as part of revolution in infrastructure – telecom/IT networks are key

BUT – continued focus on reliability, add’l regulation will require balance between new technologies and proven capabilities

Most utilities will build new technologies INTERNALLY or seek partnerships where they control, to meet requirements

UTC providing research, conferences, training, as well as seeking spectrum solutions and protection to help meet needs.

For more information, contact:

Jill Lyon, jill.lyon@utc.org