2 2015 Summer Seminar

TABLE OF CONTENTS

Welcome ............................................................... 3

Agenda ................................................................. 5

The Changing Customer 3

WELCOMEDear Summer Seminar Participant,

Welcome to EPRI’s 2015 Summer Seminar.

This year we explore the trends and developments that are changing how we define the customer.

In a June feature titled “ The Internet of Things Is Changing How We Manage Customer Relationships,” the Harvard Business Review says that when it comes to what customers expect, and will accept, we must understand where they are so that we can try to stay with them, if not get ahead of them. The article points out that “The important thing is to acknowledge that the measurements of yesterday may need an overhaul… ”

The article describes what is happening as a “customer journey.” True enough, but for the electricity sector not far enough. The sector must address transformation involving everyone in the sector, including how they interact, the emergence of new players, and the new ways in which customers are empowered.

In planning this year’s Summer Seminar we dug deep into how the changing definition of customer will transform the electric sector. We came away with three perspectives on change you will see in our agenda:

• New Roles and Options

• Technology, Trends and Drivers

• Choices, Expectations and New Directions

To tie together these concepts, we have dedicated a significant portion of Sum-mer Seminar to “Putting Ideas into Action.” Our intent is to show how strategic thinking not only tracks and anticipates the changing customer but drives action to create new services and products.

Thank you for joining us and for your active participation in the discussion and exchange of ideas and perspectives.

Michael W. Howard President and Chief Executive Officer Electric Power Research Institute (EPRI)

4 2015 Summer Seminar

AGENDA

sunday, august 2, 2015

6:00 pm Welcome Reception and Dinner, The Terrace Patio and ` Courtyard

monday, august 3, 2015

8:00 am Welcome: Mike Howard, President and CEO, EPRI

8:05 am Welcome to San Francisco: Tony Earley, Chairman, CEO and President, PG&E Corporation

8:10 am setting the stage – perspectives on the customer of the future

The relationship between electric utilities and their customers is shifting. What will be the framework of this relationship in the future? How will energy companies interact with customers? How will the regulator effectively protect the consumer interest in a rapidly changing marketplace? How will technology influence the engagement between energy providers and customers? Energy and regulatory leaders will discuss these questions. • Mike Howard, President and CEO, EPRI • Gil Quiniones, CEO, NYPA; Chair, EPRI Board of Directors • The Honorable Lisa Polak Edgar, President, NARUC; Commissioner, Florida Public Service Commission; Member, EPRI Advisory Council • Chuck Trabandt, Senior Consultant, Charles River Associates; Chair, EPRI Advisory Council

Segment 1: The Changing Customer: New Roles and Options In many sectors of the economy customers are influencing business practices as they tap forces of change: New technologies, competitive choices, enhanced

communications, and even the demographics of the customer base. This session addresses electric industry change drivers from the perspectives of energy leaders

and a thought-leader in behavioral economics.

The Changing Customer 5

Agenda (continued)

8:50 am keynote session: evolving industries and evolving customers Customer expectations do not evolve in a vacuum. Established businesses create change; start-ups introduce new ideas and customers develop their own sense of “What is in it for me?” How can the global electricity sector look ahead to successfully engage customers and forecast their future needs? This keynote session looks at ways to interact and use customer information to determine the direction of the sector. • Moderator: David Victor, Professor and Director, Laboratory on International Law and Regulation, University of California, San Diego • Hunt Allcott, Assistant Professor of Economics, New York University • Marie-José Nadeau, Chair, World Energy Council • Lord John Mogg, President of the Council of European Energy Regulators, Chair of the EU Energy Agency (ACER) Board of Regulators and past Chair of the International Confederation of Energy Regulators 9:45 am Break

10:15 am ensuring the capacity to serve customers “Energy and Capacity” are concepts that challenge some consumers. Yet, to build and operate power systems and serve customers well, all stakeholders need to “get it.” In this session we will discuss new approaches in power production, electricity delivery, energy storage and customer use. We will also look at the role of regulation to direct these changes while sustaining consumer protection and acceptable utility financial health.

Segment 2: The Changing Customer: Technology Trends and Drivers Technology catalysts cut across industries; some of the catalysts in the electric sector even started in other industries. Some of the electric industry changes: Customers can now generate residential electricity, smart meters can relay usage data, and

customers can communicate their outage status without talking to a person. Utilities will have massive operational and customer data and will need to transform this

data into operational knowledge.

6 2015 Summer Seminar

Agenda (continued)

• Moderator: Arshad Mansoor, Senior Vice President, Research and Development, EPRI • Scott Seu, Vice President, Hawaiian Electric Company • Mateo Jaramillo, Director of Tesla Energy, Tesla Motors • Ellen Nowak, Commissioner, Wisconsin Public Service Commission

11:15 am how technology can enable transformations

• Moderator: Rob Chapman, Vice President, Member and Technical Services, EPRI • Leandre Adifon, Vice President Enterprise Systems Engineering & Advanced Technology, Ingersoll Rand

• Ben Bixby, Director of Energy Products, NEST • Sean Kiernan, Vice President, Grid Connected Energy Storage, SunEdison

12:15 pm Lunch

This session will provide firsthand insight into the planning and ingenuity of companies introducing new technology into the electric industry. We will focus on three areas undergoing significant change – the connected device, distributed generation and advanced energy systems.

Segment 3: The Changing Customer: Choices, Expectations and New Directions Change becomes effective at the customer level. How customers incorporate new tech options significantly changes customer interactions and relationships with their provider.

We will hear from representatives of major customer groups and examine how “the connected customer” has new opportunities for service and challenges traditional

concepts of customer privacy and security.

The Changing Customer 7

Agenda (continued)

1:30 pm how major consumers help shape markets

• Moderator: Anda Ray, Vice President Environment and Chief Sustainability Officer, EPRI • Dennis McGinn, Assistant Secretary of the Navy (Energy, Installations & Environment) • David Hughes, Senior Group Manager - Energy, Target • John Hughes, Vice President Technical Affairs, ELCON

2:30 pm the connected consumer and choice – an interactive discussion

• Moderator: Anda Ray, Vice President Environment and Chief Sustainability Officer, EPRI • Hugo Fiennes, CEO and Co-founder, Electric Imp • Doug Johnson, Vice President, Technology Policy and International Affairs, Consumer Electronics Association • The Honorable Robert Kenney, Chairman, Missouri PUC; Member, NARUC Consumer Affairs Committee • Alex Laskey, President and Founder, Opower • Sonny Popowsky, Consumer Advocate of Pennsylvania (Retired) • Mike Greene, Business Development, Google

3:30 pm Break

Large power customers bring to the market varied viewpoints, expectations and operating plans. Today’s major customers can tap increasingly diverse options to manage their electric load. Here, three major customer types – the commercial retail sector, the industrial manufacturer and the military facility – talk about needs and expectations of the changing customer.

New technologies and connectivity bring new options for customers, along with issues about service providers, system ownership, privacy and data ownership. This session will bring together consumer perspectives, regulatory perspectives and companies that provide new services.

8 2015 Summer Seminar

Agenda (continued)

4:00 pm putting ideas into action (part 1)

• Moderator: Hank Courtright, Senior Vice President Global Strategy & External Relations, EPRI • Elisabeth Brinton, Vice President, Corporate Strategy Officer, PG&E • Jim Burke, CEO, TXU Energy • Lee Mazzocchi, Senior Vice President, Grid Solutions, Duke Energy • Mark Schiavoni, Executive Vice President, COO, Arizona Public Service Company

5:00 pm Adjorn

6:00 pm Reception / Dinner

tuesday, august 4, 2015

8:00 am Welcome: Mike Howard, President and CEO, EPRI

8:10 am keynote: reflections from an energy reporter

8:45 am putting ideas into action (part 2)

Segment 4: Putting Ideas into Action Given the drivers and changes discussed in the earlier sessions, how will energy

companies alter their customer engagements? In this segment we explore how R&D, policy and regulation have spurred new initiatives to transform customer service.

Energy companies are examining how to address changing consumer needs with changing technologies and service options. This session looks at the ways ideas become action.

Long-time New York Times energy reporter Matt Wald reflects on Summer Seminar Day One, and the significant changes he sees based on his decades covering energy, other major industries and the environment.

This session will feature additional case examples of energy companies turning strategy into implementation to meet changing customer needs.

The Changing Customer 9

Agenda (continued)

• Moderator: Rob Manning, Vice President, Transmission, EPRI • Harold DePriest, President and CEO, Electric Power Board of Chattanooga • Jill Anderson, Senior Vice President, Public Affairs and Business Development, NYPA • Hiroshi Yamaguchi, Executive Vice President – R&D, Tokyo Electric Power Company (TEPCO) • Steve Lennon, Managing Director, Shanduvan (Pty) Ltd9:45 am Break 10:15 am seminar observations and future directions

• Mike Howard, President and CEO, EPRI

• The Honorable Lisa Polak Edgar, President, NARUC; Commissioner, Florida Public Service Commission; Member, EPRI Advisory Council

• Chuck Trabandt, Senior Consultant, Charles River Associates; Chairman, EPRI Advisory Council

• Gil Quiniones, CEO, NYPA; Chair, EPRI Board of Directors

11:00 am Adjourn

Drawing on this year’s Summer Seminar, participants offer observations for future action. What can be the important contributions from R&D, regulatory initiatives and policy frameworks to transform the electric sector?

The Electric Power Research Institute, Inc. (EPRI, www.epri.com) conducts research and development relating to the generation, delivery and use of electricity for the benefit of the public. An independent, nonprofit organization, EPRI brings together its scientists and engineers as well as experts from academia and industry to help address challenges in electricity, including reliability, efficiency, affordability, health, safety and the environment. EPRI also provides technology, policy and economic analyses to drive long-range research and development planning, and supports research in emerging technologies. EPRI’s members represent approximately 90 percent of the electricity generated and delivered in the United States, and international participation extends to more than 30 countries. EPRI’s principal offices and laboratories are located in Palo Alto, Calif.; Charlotte, N.C.; Knoxville, Tenn.; and Lenox, Mass.

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