SGCC PEER CONNECT WEBINAR:

BENEFITS ANALYSIS

June 5, 2013

Today’s Presenters

Barbara Leary Sr. Director, Marketing &

Communication

Florida Power & Light

Company

Jim Meadows Director, SmartMeter Project

Pacific Gas & Electric

Company

Patty Durand Executive Director / Moderator

Smart Grid Consumer

Collaborative

Housekeeping

• You will receive a copy of the slides

– To the email you used to register

• You can ask questions as we go along

– Simply type into the question box, as we will explain or raise questions during the Q&A

• We will answer all the questions submitted

– If we are unable to get to all the questions, they will be answered individually after the presentation

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the webinar.

Agenda

1. Benefits of grid modernization

• Third-party perspective

2. FPL Energy Smart Florida

• Realizing benefits

• Operational efficiency & reliability

3. PG&E New Products & Services

• Enabled programs

• Smart grid journey

4. Q&A Session

Grid Modernization: Investments paying off

• Operations and Maintenance Savings: Utilities are realizing

13% to 77% reduction in meter operations cost --- and 12% -

59% reduction in vehicle miles driven, fuel consumption and

CO2 emissions --- from deploying AMI systems. (Source: Smartgrid.gov. “Operations and Maintenance Savings from Advanced Metering Infrastructure, Initial Results.” Dec.

2012)

• Reductions in peak demand: Utilities offering time-based

rates, AMI and customer-based systems are realizing as much

as 37% reduction in peak demand during peak hours. (Source: Smartgrid.gov. “Demand Reductions from the Application of Advanced Metering Infrastructure, Pricing Programs, and

Customer-Based Systems – Initial Results.” Dec. 2012)

• Reliability improvements: Utilities employing distribution

automation, primarily automated feeder switching, cut the

number of outages by nearly 50%, and reduced duration of

outages for their customers by as much as 15%. (Source: Smartgrid.gov. “Reliability Improvements from the Application of Distribution Automation Technologies – Initial Results.”

Dec. 2012)

Grid Modernization: Other benefits

• A smart grid reduces CO2 emissions: A fully-deployed smart

grid could reduce CO2 emissions from the electricity sector in

the U.S. by 12% - 18%. (Source: Pacific Northwest National Laboratory. “The Smart Grid: An Estimation of the Energy and CO2 Benefits.” Jan. 2010)

• A smart grid gives consumers control over their power bill:

AMI and customer-based systems allow consumers to

understand how much energy they are using at any time and

reduce that usage if desired. (Source: Smart Grid Consumer Collaborative. “Consumer Benefits Fact Sheet.” 2011)

• A smart grid enhances our energy independence: Smart grid

safeguards our nation’s position at the forefront of the world’s

transition toward a clean energy future. (Source: Smart Grid Consumer Collaborative. “Consumer Benefits Fact Sheet.” 2011)

Grid Modernization: A market opportunity

• $494 billion in cumulative revenue: The market for smart grid

technologies will grow from $33 billion annually in 2012 to $73

billion by the end of 2020, totaling $494 billion in cumulative

revenue over that period. (Source: Pike Research, part of Navigant. “Smart Grid Technologies.” Q1 2013)

• Smart grid sensors are big business: By 2014, research firm

IMS Research predicts that the smart grid sensors market will

more than double in size from estimated 2012 levels, with

annual revenue topping $100 million for the first time in 2015. (Source: IMS Research. ““The North American Market for Smart Grid Sensors – 2013.” June 2013)

• Renewables show big potential for business: According to

Ernst & Young, the U.S. recently unseated China as the most

attractive country in the world for renewable energy investment. (Source: Ernst & Young. “Renewable Energy Country Attractiveness Index” (RECAI). May 2013.)

Speaker #1

Name Background

Barbara Leary

Sr. Director, Marketing & Communication – Florida Power & Light Company

• Joined FPL in March 2008 as Senior Director, Marketing & Communication, in Juno Beach, Fla.

• Responsibilities included leading the team that provided communication support for Customer Service, Distribution and Transmission.

• Led strategy and execution of customer education program for FPL's $800 million smart grid rollout, which included 4.5 million smart meters.

• Formerly held corporate communications management positions with BASF Corporation, Lexmark International and Ketchum.

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• Vertically integrated, retail rate-

regulated

• 4.6 MM customer accounts

• 24,057 MW in operation

• $10.1 billion in operating revenues

• $34.9 billion in total assets

• Lowest bills of all 55 utilities in Florida;

highest reliability

Florida Power & Light is one of the largest utilities in the U.S.

Florida Power & Light(1)

(1) All data as of December 31, 2012; operating revenues for the 12 months ended December 31, 2012

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• Reduce outages, improve restoration and enhance service for our customers

• Provide customers with information to better manage their energy usage and monthly bills

• Achieve operational efficiencies and savings to help keep customers’ bills among the very lowest in Florida

• Continue to integrate the use of new technologies in all aspects of operations to optimize their value

Our objective for Energy Smart Florida was to deploy, from power generation to the meter, advanced technology that would provide a solid foundation for long-term service improvements

Vision

All customers will benefit from FPL’s investments in smart grid

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Energy Smart Florida integrates a range of advanced technologies that enable tangible customer benefits

• Completed to date:

– Installation of 4.5 million smart meters for residential and business customers

– Installation of more than 10,000 intelligent devices

– Enhancements to centers that monitor the performance of the grid

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Transmission/Substation Intelligence - $79

Distribution Intelligence - $40

Accelerated smart

meter deployment - $37

Commercial/Industrial Meters - $24

Enhanced Performance and Diagnostic Centers - $11

Other (incl. Home Area

Network Pilot) - $9

Our $800 million smart grid deployment was supported by a $200 million DOE grant; the remainder (about $645 million) is funded through base rates

Incremental Investments Funded by the DOE Grant

($MM)

N = $200 million

For the smart meter deployment, we made our case to regulators

based on anticipated operational efficiencies

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• Ability to prevent many outages and restore power more efficiently

• More information and control for customers – Smart meters provide customers with information to help them better

manage their energy usage and monthly bills

• Greater convenience – We no longer need to access customers’properties every month to

read their meters (99.9% remote billing read rate)

• Enhanced customer service and greater efficiency – Both customers and FPL reps have detailed usage information to

resolve issues more efficiently

– Smart meters enable us to reduce electricity theft - a cost that is borne by all customers

– We will no longer need to estimate bills due to meters being inaccessible to meter readers (reduced estimated bills by 367,000 in two years)

More than four million customers with activated smart meters now have the ability to make more informed choices about their energy use

Initial Benefits

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Project Status

• Completed installation of 4.5 million smart meters and the DOE-funded smart grid enhancements

• We have completed the initial integration of smart grid technology into our operations

• We are finding new ways to derive the full value from our investments for our customers

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Smart grid and smart meters are delivering on their expected benefits

Current Functional Improvements

Operational Efficiency Grid Management Customer Service

Improvements

• Remote Meter Reading

• Enhanced Theft Detection

• Meter Reading

improvements in read

rates (99.9% remote billing

read)

• Billing improvements using

remote readings to

complete service orders

•Real-time Monitoring

•Predictive Maintenance

•Outage Prevention

•Outage Identification

• Energy Dashboard

• Proactive Ticket Creation

• Outage Verification

• Restoration Confirmation

• No longer need to access

property every month to

read meters

• Reduced estimated bills

by $367,000 in two years

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Automated

feeder

switches

prevented

200,000+

customer

interruptions

Saved 42,000 customers an average

of two hours of outage time through

our ability to ‘ping’ the meter

More than 800,000 customers have used the

Energy Dashboard

More than 250,000 customers have already benefited from

proactive ticket creation (“last gasp”)

Speaker #2

Name Background

Jim Meadows

Director, SmartMeter Project – Pacific Gas & Electric Company

• Been on PG&E SmartMeter Project since 2002.

• Developed the business case and regulatory filing for Project Benefits Realization mechanism.

• Served extensively during the planning and deployment of SmartMeter infrastructure installation: mesh network equipment, mesh electric meters, gas metering equipment.

• Provided expert policy testimony to the California Public Utilities Commission on implementing a SmartMeter Opt-Out program.

• 20 years of experience as a capital project manager.

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Ranked the greenest utility in the United States in 2009 and 2010

Pacific Gas and Electric Company

• 6 million customer accounts serving 15 million people

• 70,000 sq mi with diverse topography and climate zones

• Integrated utility with generation, transmission,

electric and gas distribution to:

• Service to retail customers; as well as

community choice aggregation customers

• 70,000 solar customers

• De-coupled revenues / sales

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SmartMeter Rollout

PG&E:

10 million meters

2007 2008 2009 2010 2011 2012

2005: PG&E field pilot

2006: Full meter deployment begins

2007: Customer online access to interval usage data

2008: SmartRate (CPP) tariff

2009: Remote electric connect / disconnect

2009: Outage management integration

2011: Operations center opens

2012: Opt-Out program

2012: Green Button

2012: Net metering (solar)

2013: Home area network

2013

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Today: My Energy Customer Portal

2012 Results: 244,000 visits per month

129,000 new (1st time) visitors a month

• View by year, bill or day

• Temperature overlay

• Energy user by hour

(electric) or day (gas)

• Secure customer access

• Similar home comparison

2.3 million My Energy accounts

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Today: Energy Alerts

California uses a 5 tiered usage structure. Higher

tiers have higher rates.

Energy Alerts provide customers an early warning

of high usage

• When actual usage-to-date crosses higher tiers

• When usage is forecast to cross higher tiers by end

of billing period

Delivered via:

• Email

• Text message

• Outbound phone call

Over 77,000 of PG&E’s customers signed up for Energy Alerts

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Today: Green Button for Customers

• Download up to 13 months of data

• Send personalized energy to third parties

• Open source format

Since its launch in 2012, over 82,000 customers have clicked

the Green Button to download their data from PG&E’s Website

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Prior to SmartRate Event

July 7th 10 Day Average

Critical

Peak

Period

Today: SmartRate Peak Price Tariff

More than 117,000 customers currently enrolled in the SmartRate program.

2011 Results: 13% load reduction, 94% plan to continue

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During SmartRate Event

July 8th July 9th

Critical

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Impact on Utility Operations

Electronic Billing: To date, eliminated more than 600 meter-reading

positions and reduced delayed bills by 78 percent

Remote Connect / Disconnect: Reduced average time to restore service

from 73 minutes to under 4 minutes

Meter Power Status Check: Pro-actively check meters for outages before

issuing field orders

Outage Restoration Validation: Provides critical data to help scope outages

and restore power more quickly

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• Home energy

management

• Plug-in hybrid electric

vehicle SmartCharge™

• Integrated renewables

management

• Integrated local

generation and storage

• Distribution Automation

• Automated meter reading

• Automated service

connect

Smart Grid Journey

Today Integrate existing

services to new platform

Future Enable future services and foster innovation

Near Term Transform existing services

Years

Cu

sto

mer

En

gag

em

en

t

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Variability, Unpredictability

0

100

200

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400

500

600

700

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour

MW

Average

Each day is a different color.

Day 29

Day 5 Day 26

Day 9

Source: CAISO

PV Solar

Wind

Cloudy Day Output

PG&E is committed to making a policy mandate of 33% renewable

generation by 2020

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SmartMeter™ Customer Benefits

Enable the Future

Put in place a platform for innovation

Choice and Control

Provide our customers greater choice and more control over their

energy bills

Customer Service

Provide our customers more convenience and

better, faster service

Faster power restoration

Faster startup of service

after moving

Faster problem resolution

Better billing

Complete energy usage information and analysis tools

Proactive Energy Alerts

New pricing options

Better options for customers to manage their energy use

Distributed generation and storage

Support demand from electric vehicles

Enable renewables

Takeaways & Questions

2013 Annual Members Meeting

• Save the date:

September 24 & 25, Washington, D.C.

Pepco Headquarters, Edison Conference room

• Alignment around the Consumer Value Proposition: The

Smart Grid Value Proposition clearly indicates the Smart Grid’s

unique value-creating features or in other words, a consensus of

the sum total of benefits customers will receive.

• Important to have a strong value proposition so benefits can be

expressed from the consumer’s perspective and the industry

can collectively talk about the experiences and benefits that

consumers will have with grid modernization.

Last but not Least: Smart Energy Corps

• Smart Grid awareness is still low: We know more than 75% of

consumers haven’t heard of smart grid or don’t know what it is

• SGCC is in a unique position to “do something about it”

• Smart Energy Corps will create a national,

credential/certification program to “train the trainer” to teach

electricity and smart grid literacy to youth, adults, community

groups

• Program development and launch planning currently

underway – contact program lead Annie Haas

annie.haas@smartgridcc.org to get involved

Thank you! You will receive a copy of the slides to the email

address you used to register.

Barbara Leary Sr. Director, Marketing &

Communication

Florida Power & Light

Company barbara.leary@FPL.com

Jim Meadows Director, SmartMeter Project

Pacific Gas & Electric

Company J7M2@pge.com

Links to Resources: Florida Power and Light Company’s Energy Smart Florida resource library:

• http://www.fpl.com/energysmart/medialibrary.shtml Pacific Gas and Electric Company’s What is Smart Grid website:

• http://www.pge.com/myhome/edusafety/systemworks/electric/smartgrid/