UTILITY EXPERIENCES WITH

SMART ENERGY PANEL

Andres Carvallo, CIO, Austin Energy
Paul De Martini
VP Advanced Technology,
Southern California Edison
Dan Yates
CEO and Founder of OPower
HOST: Jesse Berst, Managing Director,
Global Smart Energy
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The California Experience

Creating Our Future

November 18, 2009

EDISON INTERNATIONAL®
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CA 2020: Energy Policy Initiatives

2010 2012 2014 2016 2018 2020

Policy Areas
RPS Bulk 20%
Power Integration Renewable
Generation 33%
Renewable

AB32 Reduce GHG Emissions to 1990 Levels by 2025

Generation
(Proposed)
1 Million
RPS Distributed 500 MW of Large Scale Solar Rooftop Generation Solar Roofs
Power Integration statewide

~25k ~100k ~ 400k

Transportation PEV’s PEV’s PEV’s
Electrification

SmartConnect
~3500 gWh of EE ~7300 gWh of EE Savings
DR Goals
Savings (2009 – 11) (2012 – 2020)
(~1000 MW)

Energy Efficiency 50% of new 90% of new Zero

& Demand Resp homes are 35% homes are 35% Energy
more efficient more efficient Homes
than T24 than T24 100%

Creation of
1st Full Year of
Wholesale Market alternative
MRTU market
Structure resource
operation
markets

Page 4 EDISON INTERNATIONAL ®

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SCE Strategy for a Smarter, Cleaner Energy Future

Innovation in Energy & Information Technologies will Deliver

Environmental Benefits & Customer Value

SCE is doing its part to reduce greenhouse

gas emissions by providing its customers
with energy from renewable resources
Smart power delivery is needed to manage
greater diversity of supply and to optimize
existing capacity
Smart metering enables customers to save
energy and reduce peaks while improving
customer service and operational efficiency
Plug-in electric vehicles will achieve
transportation sustainability and enable
distributed energy storage systems

Page 5 EDISON INTERNATIONAL ®

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SCE Smart Grid Development

Building on Smart Foundation Built Over the Past Decade

~$1.5 Billion Capital* SmartGrid Development

2009 2010 2011 2012

PEV Integration
Renewable Integration Tech Dev.
Enhanced Outage Management
Expanded Distribution Automation
Centralized Remedial Action Scheme
Phasor Measurement
Substation Security Video Surveillance
Energy Management System Upgrade

Advanced Load Control

Smart Metering

* Project capital approved by CPUC in SCE’s 2009 GRC & SmartConnect program

Page 6 EDISON INTERNATIONAL ®

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What is needed to realize a smarter grid?

• Intelligent and communicating PEVs that integrate gracefully

with the grid

• Cost effective energy storage at bulk transmission and

distribution

• Commercial products based on open, non-proprietary standards

that are secure

• Seemless and secure telecommunications infrastructure that

integrates millions of intelligent devices to produce actionable
information that is used to control the electric system

• Workforce with the skills and knowledge to engineer, build,

operate and maintain an electric grid with pervasive information
technology embedded

Page 7 EDISON INTERNATIONAL ®

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Observations

• Smart Grid is a journey that will be 20+ years in the

making
– Personal computing was introduced 30 years ago
– Portable cell phones were introduced 25 years ago
– Public Internet was launched 20 years ago (DARPANet 40yrs ago)

• Pace of technology adoption will need to consider policy,

customer impact, utility operations and asset obsolesce

• A smarter electric grid will become more interactive with

our customers’ lives thru the home, transportation and
workplace

Page 8 EDISON INTERNATIONAL ®

OPOWER
ENERGY EFFICIENCY,
AND THE SMART GRID
FALL 2009

OPOWER COMPANY CONFIDENTIAL : DO NOT DISTRIBUTE 9

Introducing OPOWER – Link Smart Grid and EE
We partner with utilities to help them revolutionize their capability
to communicate with their customers.
– Multi-channel approach; expert in behavioral science and direct marketing
– Working with 20 utilities and providing our services to 2M homes.

CUSTOMER FACING UTILITY FACING

Printed Comparative Online Energy Smart Grid CSR Tools
EnergyReports Data & Community Features

Analysis + M&V

Insight Engine

OPOWER COMPANY CONFIDENTIAL : DO NOT DISTRIBUTE 10

Our Energy Reporting Platform delivers real results
In every utility where our platform is deployed, it has become one of the
most impactful, cost effective mass-market efficiency programs
Pre-Energy Platform Energy PlatformLaunched

Pre-Pilot Delta = ~ 0%

Post-Pilot Delta = ~ 2.4%

OPOWER COMPANY CONFIDENTIAL : DO NOT DISTRIBUTE 11

What we’ve learned about the energy industry

Respect and understand a multiplicity of perspectives.

Utilities: enterprise capability to engage and drive action

- Energy efficiency; demand response; time-of-use rates: all these
programs only succeed with customer participation

Consumers: understanding and control over energy use

- Prius owners with Humvee houses; shock of high bills; no idea
how to reduce usage

Regulators: lower energy demand and lower bills

- Defer investment in conventional power plants; lower emissions;
help customers keep bills low

OPOWER COMPANY CONFIDENTIAL : DO NOT DISTRIBUTE 12

What we’ve learned about consumers and energy

Hide the complexity in your products.

Simple: insights + analysis trumps real-time data
Relevant: target your messages very carefully
Actionable: don’t just give data, give recommendations
Motivating: don’t tell them what to do, tell them what others are doing

Use every channel your advantage

Mail: 85% engagement rates
Online: interaction with the motivated
Phone: Increase customer satisfaction with information

OPOWER COMPANY CONFIDENTIAL : DO NOT DISTRIBUTE 13

What’s next in Smart Grid?

Increased focus on delivering value to the consumer.

OPOWER COMPANY CONFIDENTIAL : DO NOT DISTRIBUTE 14