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Partner Forum Linda Jackman VP Product Strategy & Management

January, 2009

Our Current View: Utilities Business Drivers Global warming / greenhouse gases
Environmental Imperatives
Grid efficiency Demand response

Changing Business

Aging workforce Aging infrastructure Deregulation and Mergers & Acquisitions

Customer Expectations

Self service Consumer energy management Customer empowerment

Operational Issues

Integration of departmental silos Business & IT complexity vs. controlling costs Compliance and security
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Our Emerging View: Collaboration

Communities

Customers

Regulators
Owners

Utilities
Managers Staff

Intelligent Grid Vision Summary

What it is: Fully network-connected system Sensor (hardware) coverage of entire grid Software leverages the information Why have it: Delivery efficiency Lower cost to serve Consumer choice (cost, product) Oracle's role: Collect, interpret, store, analyze, make actionable, leverage, and disseminate information.
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Characteristics of the Intelligent Grid

Development of standards for communication and interoperability of devices 9 Provision to consumers of timely information and control options Development and incorporation of DSM, DR, and EE 4

8 Dynamic optimization of grid operations and resources

Deployment and integration of DG, including renewables

5 Deployment of smart technologies

1 Increased use of digital information and controls technology to improve reliability, security, and efficiency of the grid 7 6 Integration of smart appliances and consumer devices

Deployment and integration of advanced electricity storage and electric vehicles

EPRI: Dynamic Energy Management

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Characteristics of the Intelligent Grid

(Defined in the Energy Independence and Security Act of 2007)

1. Digital information and control 2. Grid optimization 3. Distributed generation, renewables 4. Demand side management 5. Smart technologies 6. Smart appliances 7. Electric storage, electric vehicles 8. Consumer information and control 9. Standards

Characteristics of the Intelligent Grid

1. Digital information and control
Trends:
Electricity Advisory Committee of the DOE: "The Electricity Advisory Committee has assessed the current electric power delivery system infrastructure and concludes that it will be unable to ensure a reliable, cost-effective, secure and environmentally sustainable supply of electricity for the next two decades." Energy Insights*: Full-scale deploymentswill be focused on smart metering in 2009. Broader intelligent grid deployments using technologies beyond smart metering will be limited to pilot projects. Newton-Evans: In spite of the weakened economic conditions in countries around the world, electric power utilities are proceeding with investments in both their infrastructure and smart grid automation programs.

Oracle strategy:
To collect, store, and interpret data generated by devices on the grid
7 *Except where noted, Energy Insights trends from 2009 Energy Insights on Utilities

Characteristics of the Intelligent Grid

1. Digital information and control
How can Oracle help? Oracle Utilities Network Management System
Overall solution for monitoring, alarming, and mitigation of problems of the intelligent grid Power Flow Extensions (Future) Overload Relief in Suggested Switching Suggested Switching Oracle Spatial Oracle Database Oracle Business Activity Monitoring Oracle Complex Event Processing Utilization of Advanced Metering Infrastructure (AMI) and other grid agent data points to enable improved awareness of the distribution grid health and operational management
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Oracle Technology

Smart Energy Alliance Distribution SCADA solution

Characteristics of the Intelligent Grid

2. Grid optimization
Trends: Electric Advisory Committee*: Smart Grid could eliminate up to 50% of trouble calls Gartner (Hype Cycle for Intelligent Grid Technologies, 2008: Advanced Distribution Management Systems): The emphasis of advanced DMS is automated control and switching processes combined with manual management to create event avoidance and fault prevention, creating selfhealing distribution infrastructure. The most-advanced DMS can reconfigure networks for optimal reliability, losses or capacity constraints, and integrate with advanced metering infrastructure (AMI) for diversion (theft) detection.

Oracle strategy:
To enable self-healing capabilities on the grid To enable condition-based / utilization-based maintenance on grid assets
9 *Energy Advisory Committee: "Smart Grid: Enabler of the New Energy Economy", Dec 2008

Characteristics of the Intelligent Grid

2. Grid optimization
How can Oracle help? Oracle Utilities Network Management System
Fault Location, Isolation and Service Restoration (FLISR) (Future) Fault Location Analysis (Future) Feeder Load Management Optimal Power Flow Voltage & Loss Optimization Demand Management via Voltage Management (Future) Wide Area Controller (Future) w/ Work and Asset Management, utilization-based maintenance

Governance, Risk, and Compliance (GRC) Manager Oracle Business Intelligence

Dissemination of grid data onto interactive dashboards; available for enterprise reporting, ad hoc queries, analysis, and data mining; available for proactive notifications, alerts, predictive intelligence, and real-time decisions and recommendations
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Characteristics of the Intelligent Grid

3. Distributed generation, renewables
Trends: Energy Insights: Renewable energy growth will slow in 2009 but rebound in 2010 Electric Advisory Committee (from Galvin Electricity Initiative): Assuming a 10% penetration, distributed generation technologies and smart, interactive storage capacity for residential and small commercial applications could add another $10 billion per year [into the US economy) by 2020

Oracle strategy:
To enable the forecasting and balancing of distributed generation
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Characteristics of the Intelligent Grid

3. Distributed generation, renewables
How can Oracle help?
Oracle Utilities Customer Care and Billing and Oracle Utilities Billing Component
Net metering and feed-in tariffs (FIT) "Green" tariffs Monitoring of customer-owned and controlled generation devices; management of two-way flow on the distribution network Power Flow Extensions / (future) Feeder Load Management and Wide Area Controller Short and long term demand load forecast management Settlement with market operators for owners of generation supply Planning, scheduling, and installation of utility-controlled renewable devices, such as solar panels on homes and buildings
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Oracle Utilities Network Management System

Oracle Utilities Load Profiling and Settlement System

Oracle Utilities Mobile Workforce Management

Characteristics of the Intelligent Grid

4. Demand side management
Trends: Energy efficiency
To receive bulk of attention for federal funding Energy Insights: "First fuel" choice for electric utilities EPRI: energy efficiency programs have the potential to reduce the annual growth rate in electricity consumption forecasted in AEO 2008 between 2008 and 2030 of 1.07% by 22% to 36%, to an annual growth rate of 0.83% to 0.68% Increase in unbundling regulation Price-based will dominate Reliability-based impacted by economic slow down (consumption is down) In energy markets, equality with supply requires automation, estimation, and predictability To enable price-based demand response by delivering prices to devices To provide functionality to manage all aspects of energy efficiency programs
13 Time Magazine Dec. 31, 2008: "America's Untapped Energy Resource: Boosting Efficiency"

Demand response

Oracle strategy:

Characteristics of the Intelligent Grid

4. Demand side management
How can Oracle help? Oracle Utilities Customer Care and Billing
DR event participation credits and penalties Marketing campaigns for recruitment into DSM programs Inventories customer demand response equipment and enables notification of demand response events Conservation management (calculation of rebates for energy efficiency equipment and programs) Unbundled billing capabilities Inventories customer demand response equipment, enables notification and execution of DR events Customer targeting for DSM programs Measures and monitors participation in DR events (Future) Feeder Load Management + Meter Data Management + Customer Care and Billing to forecast how much DR needed for how long
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Oracle Utilities Meter Data Management

Oracle Utilities Network Management System

Characteristics of the Intelligent Grid

5. Smart technologies
Trends: Standard for AMI is 15 60 minutes intervals, with remote connect / disconnect switch The 2008 FERC Survey results show advanced metering penetration in the United States is at 4.7 percent, compared to less than one percent in 2006 House version of stimulus bill includes $11B for 40 M advanced meters

Oracle strategy:
To leverage two way communications capability and consumption data across all utilities' applications
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Characteristics of the Intelligent Grid

5. Smart technologies
How can Oracle help? Oracle Utilities Meter Data Management Oracle Utilities Customer Care and Billing
Interval-based tariffs Prepaid customers Revenue protection Interval-based tariffs Technical losses Outage management Planning, scheduling, and execution of the mass rollout and installation of advanced meters and other grid devices

Oracle Utilities Quotation Management Oracle Utilities Network Management System

Oracle Utilities Mobile Workforce Management

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Characteristics of the Intelligent Grid

6. Smart appliances
Trends: How much information will be shared / passed back to the utility? 2 models:
Utility-centric model: communication via advanced meter and AMI communications network, with devices supplied by utility Customer-centric: communications via Internet or cable, using existing devices in the home or customer purchased devices

Gartner Strategic Planning Assumption: By 2012, major consumer technology vendors will enter the customer energy management market.

Oracle strategy:
To leverage one and two-way communication into the customer's home
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Characteristics of the Intelligent Grid

6. Smart appliances
How can Oracle help? Oracle Utilities Customer Care and Billing
Prices to devices Sell, lease, and service smart appliance and other energy efficiency equipment Available two way interaction with AMI and in home devices for communication and control (Future) Possibility of embedding a database in equipment (i.e., HAN) as needed for local storage and complex rules processing

Oracle Utilities Meter Data Management

Oracle Database

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Characteristics of the Intelligent Grid

7. Electric storage, electric vehicles
Trends: Energy Insights: Investor funding for utility scale energy storage will markedly increase. Energy Insights: The vehicle-to-grid (V2G) integration vision in the short term will be more hype than reality. Infrastructure build-out will take decades not years. Electricity Advisory Committee: V2G and use of electric vehicles for ancillary service provision is a long-term goal (2020 and beyond)

Oracle strategy:
To enable the back office functionality needed to forecast, manage, and settle electric vehicle load
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Characteristics of the Intelligent Grid

7. Electric storage, electric vehicles
How can Oracle help? Oracle Utilities Load Analysis
Profile and forecast demand Short and long term demand load forecast management Settlement with market operators for owners of generation supply (i.e., aggregator of electric vehicles for balancing generation) Net metering and feed-in tariffs (FIT) (Future) For electric vehicles, component to track, measure, bill, and settle electric consumption versus supply, including roaming charges; meters on the move Load estimation and energy analysis of generation supply

Oracle Utilities Load Profiling and Settlement System

Oracle Utilities Customer Care and Billing

Oracle Utilities Network Management System

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Characteristics of the Intelligent Grid

8. Consumer information and control
Trends: Energy Insights: Web portals will be the fastest way to enable active consumer energy management. Web portals coupled with other technologies such as in-home displays and smart thermostats will become the norm in 2010 2013.

Oracle strategy:
To disseminate information about consumption, billing, and demand side management
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Characteristics of the Intelligent Grid

8. Consumer information and control
How can Oracle help? Oracle Utilities Customer Care and Billing
Prices to devices Home energy audits Energy consumption information Energy consumption information Communication and mapping of outages to customers

Oracle Utilities Meter Data Management Oracle Customer Self Service Oracle Utilities Network Management System

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Characteristics of the Intelligent Grid

9. Standards
Trends: Many groups working on standards how will this evolve? (International Electrotechnical Commission [IEC] TC57 WG14, MultiSpeak, OpenAMI, EPRI IntelliGrid, GridWise Architecture Council) Interoperability devices added to intelligent grid register themselves upon installation and immediately contribute their capabilities

Oracle strategy:
Committed to utilize open technologies and utility standards where available Pre-integrating with Oracle and third party technologies to speed implementation and lower cost
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Characteristics of the Intelligent Grid

9. Standards
How can Oracle help? Oracle actively participates in industry standard groups, and uses standards where available and applicable to lower the risk and cost to implement intelligent grid products. Oracle works with third parties (i.e., AMI vendors) to pre-integrate and optimize hardware and software solutions where applicable. Oracle Application Integration Architecture
(Future) Process Integration Packs: Pre-built, out of the box, integrated Oracle Applications for quick implementation of business processes, without the risk (Future) Foundation Packs: Create custom business processes across any application utilizing predefined, application independent object and service definitions

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Oracles Application Strategy

Complete

Open

Integrated

Comprehensive Industry Portfolio

Standards-Based Architecture

Designed to Work Together

More Value Less Complexity

More Choice Less Risk

More Flexibility Less Cost

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Oracle AIA Advantages

Extensible, Sustainable, Upgradeable Integration for Business Agility & Efficiency
Abstracted Bus Process Orchestration Layer CRM ERP CRM ERP

Embedded P2P Bus Process & Data Integration

Common Objects & Services

New App

Billing

Field Service

Billing

Field Service

Benefits Benefits
Easy Upgrade/Replacement of Edge Apps Easy Upgrade/Replacement of Edge Apps Adaptable, Flexible Business Processes Adaptable, Flexible Business Processes Extensible Common Object Model Extensible Common Object Model Lower maintenance costs Lower maintenance costs

Application Integration Architecture

Uniting Best of Breed Applications
Join new and existing applications on a robust, open standardsbased platform

Integrate Your Application Portfolio

Create new application business processes using pre-built integrations Easily integrate third party solutions through an applicationindependent design

Adapt Business Processes

Optimize business operations using documented best practice processes Plug and play applications through Enterprise Business Services Simplify upgrades through common objects and services

Speed time to value with a pre-built Service Oriented Architecture

Minimize Integration Cost and Risk

Control integrations and reduce risk with SOA Governance Ensure successful deployments using proven middleware components (Oracle Fusion Middleware)

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Application Integration Strategy

Uniting Best of Breed Applications

Mission Critical Applications

In production, driving better customer service In design, driving key initiatives around demand side management Migrating to AIA model over next several months

Cross Stack Applications

AIA integration, heading for production In design and build, releasing off cycle Identifying a full road map driven by customer demand

Key Party Applications

3rd

Applications critical to utilities, not owned by Oracle Key initiatives with AMI head end systems, GIS, SCADA Transition enablement as critical systems are migrated

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Application Integration Architecture

Oracles SOA Implementation
Best Practice Processes
Optimize business performance leveraging Oracles extensive experience and best practices
Order to Cash

Best Practice Processes

Procure to Pay Hire to Exit Concept to Cash And more

Process Integration Packs

Banking Adverse Outage Banking Adverse Outage Opportunity Order Quote to Field Opportunity Order Field Account Event Report to Quote to Account Event Report to to Quote to Cash Bill Services to Quote to Cash Origination Reporting Restoration Services Bill Origination Reporting Restoration

Process Integration Packs

Pre-built, out of the box, integrated Oracle Applications for quick implementation of business processes, without the risk. (i.e. Siebel CRM to Oracle E-Business Suite)

Foundation Pack
SOA Reference Architecture SOA Programming Model Enterprise Business Services SOA Governance

Foundation Packs
Create custom business processes across any of your applications utilizing predefined, application independent object and service definitions

Industry Leading

Powered by Oracle Fusion Middleware

Industry leading, open standards based platform

Predefined, Reusable Enterprise Business Services

Build Any-to-Any Applications Integrations

Out of the box, library of reusable business services for cross application process automation Common semantics foundation to easily build, change and optimize business processes Building blocks and methodology to build your Enterprise Business Services

Create Order

Update Order

Get Balance

Query Products

Utility Services

Benefits
Faster time to value Overcome SOA adoption challenges Lower cost of ownership

Prebuilt Reusable Services

Differentiator: E-LT Architecture

High Performance

Transform in Separate ETL Server

Proprietary Engine Poor Performance High Costs IBM & Informaticas approach

Conventional ETL Architecture

Extract Transform Load

Transform in Existing RDBMS

Leverage Compute Resources Efficient High Performance
Next Generation Architecture

Benefits
Optimal Performance & Scalability Better Hardware Leverage Easier to Manage & Lower Cost

E-LT
Transform Extract Load Transform

Oracle BPEL Process Manager

Address Complex Integration Challenges with AIA Foundation Pack

Foundation Packs

Oracle Differentiator: Application independent approach to building anyto-any integrations

SOA Reference Architecture SOA Programming Model Enterprise Business Services

SOA Governance

Speeds time to value Reduces risk and improves productivity Facilitates move from EAI/P2P integrations Ensures control and visibility throughout your business process lifecycle

The AIA Industry Foundation Packs Include

NEW Industry Specific Content
Utilities Foundation Pack 2 new Utilities Enterprise Business Object, 13 modified horizontal objects, L1-L3 Industry Process Models

Horizontal Foundation Pack Content

46 Enterprise Business Objects (extended if needed, or as appropriate, per industry)
XSD (XML Schema Definition), UML (Unified Modeling Language)

440 Enterprise Business Services (extended if needed, or as appropriate, per industry)

WSDL (Web Services Description Language)

AIA Development Toolkit

Design Time Service Repository Error Handling and Diagnostic Framework Test Harness Framework (Comp App Validation System)

All future objects and services will be included in new versions of the same product (part of maintenance for product)

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AIA Utilities Foundation Pack Overview

Business Process Models:
Includes Industry Business Process Models to support the following key Utilities business processes around Transmission & Distribution and Deregulated Retail: Concept to Launch Order to Bill Meter to Cash Customer Service (Self-Service & Assisted)

AIA Utilities Foundation Pack

Industry Business Process Model

Customer Relations Utilities Operations

CRM Network Metering Supply Projects Billing Self-Service

Assets & Work

Enterprise Business Objects and Services:

(New and Verticalized) AccountBalanceAdjustment AccountingEntry CustomerParty DisbursedPayment InstalledProduct Invoice Item MeterReading PaymentInvoice PriceList RecievedPayment SalesOrder SalesQuote ServiceRequest ServiceUsage
Field Service

EBOs/EBS
Corporate Admin
Financials

Reviewed against CIM (Common Information Model) standards for Utilities. Consulting with key utility customers in various aspects of the Foundation Pack Additional reviews through the Integration CAB.

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