1. The Impact of New Technologies on Customer Service EPB Chattanooga, TN November 15, 2011

2. Agenda • About EPB • Smart Meter Timeline • Smart Grid Objectives • System Architecture • Smart Grid Building Blocks • HAN Home Area Network • Customer Service Benefits • Questions and Comments

3. About EPB • EPB is owned by the City of Chattanooga TN • Service area 600 square miles • 170,000 electric customers • In 2009 launched FTTH Smart Grid Initiative • Currently have 82,000 smart meters deployed

4. About EPB

5. About EPB • Why is EPB building a Smart Grid? • Intelligent, Interactive and Self-Healing • Reduce Outage Duration Power outages cost businesses in our service area $100 million/year. We aim to reduce that by 40% • More Customer Options Data for customers to better manage their energy use • Operational Efficiency Real time data and interaction will allow us to manage our assets more effectively, reduce peaks, reduce theft, and automate formerly manual processes

6. About EPB • Outage Management EPB has recently installed a new OMS/MWFM system which utilizes real time communications with field crews to OMS and to CIS. We want to continue this to the equipment in the field to have real time data acquisition and control for all end points on the electric system. • Customer Service Customer Service will have information at their finger tips that has previously not existed. (real time meter reads, outage notification, 15 min interval data for all customers, web presentment software, etc.)

7. Smart Meter Timeline Evolution of AMI at EPB Project Resources 20+ employees worked on the evaluation of AMI vendors. Areas Represented Meter Customer Relations Strategic Planning Strategic Systems IT Preventive Maintenance Finance Telecomm

8. Smart Grid Objectives • Reduce customer outage time • Real time data easily accessible • Control equipment in the field • Active outage notification • Automate the meter reading process • Revenue Assurance (UTAP) • Scalability/Flexibility/Ease of Deployment • Power the ONT • Smart Grid Ready

9. AMI Objectives

10. System Architecture

11. AMI Building Blocks • Scalable • Easy integration with back office applications • Processing power • Scalable • Public & private comms options • Standards based • Redundancy • Strong security • Priority driven messaging • Utility lifecycle • Appliance connectivity • Simple management • Isolate HAN lifecycle • Customer signaling • Evolutionary design DESIGN CRITERIA WAN Wide Area Network LAN Local Area Network HAN Home Area Network NS Network Server • Application interfaces - simple TCP/IP links • Two-way communications interoperability:- SCADA- CIS / Billing / etc. • Multiple platforms - wired or wireless • Standards based– WiFi, WiMAX, GSM • Public/private • Right-sized capacity • Cost-effective migration path • Rapid deployment • Surgical deployment • Self-initiating & self-healing network • Standard radios • Meter endpoints for - electric / water / gas • Multiple meter types supported • Over-the-air programming • Access via meter / load control • DR modules: - load control- IHD / smart thermostat • Time-stamped • Opt-in & out ATTRIBUTES

12. HAN: HOME AREA NETWORK SMART HOME • TUNet serves as backbone network for all meter & HAN data • TUNet endpoints provide access to home: meter, In-Home Display, load control device TUNet TECHNOLOGY • Two-way, real-time network established between utility & home • LM communicates via 900 MHz; connects with up to three devices • IHD communicates via ZigBee or 900 MHz; interfaces with multiple devices

13. Customer Service Benefits • How AMI helps EPB meet its objectives • Be able to vary the read schedule to minimize consumption variation • Be able to accommodate customer’s wishes at the time they want. • Real time data easily accessible with load profile data available to all customers • Option to control equipment in the field (Water Heaters, Pool Pumps, etc) • Active outage notification and better estimated time of restoration • Revenue Assurance (UTAP) • Automate the meter reading process • Home area networks to reduce consumption and assist the customer • Load growth analysis

14. Customer Service Benefits • Reduced operating cost – meter reading and fewer field visit work orders • Revenue Assurance – identify and resolve power theft issues in a timely manner • Improved system operation – outage identification, power quality monitoring, predictive analysis (equipment failure & fault location) • Customer service – near real-time information available to CSRs, improved response time for many work orders, increased accuracy in data collection, web presentment capability, and options for customers (pre-pay, billing dates, TOU, etc.) • Demand Response – ability to respond to peak demand with load shedding and load shifting options. Allows utilities to better utilize existing assets and reduce the environmental effects of additional power generation. • Active outage notification – Allows EPB to be notified with a power problem quickly and efficiently.

15. Customer Service Benefits • Customer Service Reps will have the ability to assist customers with data at their finger tips. One call high bill resolution with the availability of real time consumption and 15 minute historical data for all customers. • Voltage information available on the interval along with alarms to help reduce power quality calls. • Remote Disconnect! This is a whole new era to Customer Service. Same day and timely reconnects for customers. High volume turnover accounts, access issues, etc. • Available architecture for pre-pay programs. • Provide information to the customer in multiple convenient ways that allows them to make wise decisions concerning their electrical usage.

16. Customer Service Benefits Thank You! Questions?