Intro Solution Meters Marketing Conclusion

Key Issues

Consumer

Habits

Implementation

Cost

Payment

Inaccuracy

Objectives

Low CostEasy

Implementation

Customer

Interaction

Intro Solution Meters Marketing Conclusion

Two-Step Plan

Smart Meter Customer

Engagement

Intro Solution Meters Marketing Conclusion

Smart Meter

Utility X Home

CENTRON®

Meter

Intro Solution Meters Marketing Conclusion

Utility Benefits

Efficient Electricity DistributionInefficient Electricity Distribution

Intro Solution Meters Marketing Conclusion

Customer Benefits

Efficient Electricity UsageInefficient Electricity Usage

Intro Solution Meters Marketing Conclusion

Marketing Challenges

“No Customer Left Behind”

Historically Poor Relationships

Campaign that Divide Customer

Customer Illiteracy

Intro Solution Meters Marketing Conclusion

Marketing Solutions

Tech

Enthusiast

(10%)

Value Buyer

(20%)

Traditional

Consumer

(10%)

Cost Conscious

(41%)

Green Consumer

(19%)

ValueBargain Premium

Eco

-A

wa

ren

ess

Intro Solution Meters Marketing Conclusion

Marketing Solutions

Tech

Enthusiast

(10%)

Value Buyer

(20%)

Traditional

Consumer

(10%)

Cost Conscious

(41%)

Green Consumer

(19%)

ValueBargain Premium

Eco

-A

wa

ren

ess

Intro Solution Meters Marketing Conclusion

emPowering America

79

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Agree

Willing to Change EnergyConsumption if it AffectsAmerica's Energy Challenges

88

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Agree

Need to Spend Money onEnergy Infrastructure

88

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Agree

Motivated to use a SmartMeter to Make a Differencefor Future Generations

Intro Solution Meters Marketing Conclusion

Marketing Solutions

Tech

Enthusiast

(10%)

Value Buyer

(20%)

Traditional

Consumer

(10%)

Cost Conscious

(41%)

Green Consumer

(19%)

ValueBargain Premium

Eco

-A

wa

ren

ess

Intro Solution Meters Marketing Conclusion

Q1 Q2

2015Month 1 Month 2 Month 3 Month 4 - 18 2016

Technicians Install Smart Units Analyze Data & Savings

Week 1 Week 2 Week 3 Week 4

Notification of Pilot Member Pilot Response

Pilot Timeline

Intro Solution Meters Marketing Conclusion

Conclusion

Utility

Revenue

Customer

Savings

Easy

Implementation

Bear Case of $120k in

Revenue Over 4 Years

Bear Case of $1.8M in

Pilot Savings

Customer

Engagement

3 Month

Implementation Plan

Over 80% Engagement

Expected

Intro Solution Meters Marketing Conclusion

Appendix ASmart Meter

Unit Cost $35.00

Bulk Discount 10%

Base Units Purchased 10,000.00

Safety Units 500.00

Total 10,500.00

Discounted Cost Per Unit $31.50

Total $330,750.00

At Home Display

Rainforest EMU-2 Energy

Unit Cost $60.00

Bulk Discount 20%

Base Units Purchased 10,000.00

Safety Units 50.00

Total 10,050.00

Discounted Cost Per Unit $48.00

Total $482,400.00

Appendix BSpecialized Technician

Technician Daily $200.00

Unit Install Time Frame Technician Hourly $25.00

Installed Per Tech Per Day 14 Misc. Daily Costs $40.00

Technicians Per Day 20 Technician Cost Per Unit $14.29

Units Installed Per Day 280 Daily Cost Per Unit $0.35

Days Till Completion 37 Total Install Cost Per Unit $14.64

Weeks Till Completion 7.4

Total Units Installed 10360 Misc. Daily Costs

Gas Per Day $30.00

Training Daily Fixed Cost (Truck/ Wear and Tear) $10.00

Supplies $1,000.00 (20 meters) Total $40.00

Trainers $600.00 per day/ 2 trainers 300 a day

Technicians Daily Wage $200.00 Net Cost Per Smart Meter

Technicians Trained 20 Unit Cost $31.50

Technician Total Training Cost Daily $4,000.00 Install Cost Per Unit $14.64

Daily Labor Cost $4,600.00 4 week - 5 days a week Total $46.14

Month Total Labor Cost $92,000.00

Total Cost $93,000.00

Overall Cost

Total Install Cost (Smart Meter) $477,966.00

Total Display Cost $482,400.00

Total Training Cost $93,000.00

$1,053,366.00

Appendix C

Electriciy Usage Electricity Usage Electricity Usage Electricity Usage

Standard Meter Smart Meter Smart Meter and Display Smart Meter, Display and Application

Annual Usage 10,908.00 Annual Usage 10,580.76 Annual Usage 9,926.28 Annual Usage 9,489.96

Monthly Usage 909.00 Monthly Usage 881.73 Monthly Usage 827.19 Monthly Usage 790.83

Daily Usage 30.30 Daily Usage 29.39 Daily Usage 27.57 Daily Usage 26.36

Hourly Usage 1.26 Hourly Usage 1.22 Hourly Usage 1.15 Hourly Usage 1.10

Annual Reduction 0% Annual Reduction 3% Annual Reduction 9% Annual Reduction 13%

Hourly Savings from base $- Hourly Savings from base $0.04 Hourly Savings from base $0.11 Hourly Savings from base $0.16

Electrcity Cost $0.13 Electrcity Cost $0.13 Electrcity Cost $0.13 Electrcity Cost $0.13

Hourly Savings from base $- Hourly Savings from base $0.00 Hourly Savings from base $0.01 Hourly Savings from base $0.02

Savings Per Year $- Savings Per Year $43.16 Savings Per Year $129.48 Savings Per Year $187.03

Savings for Pilot $- Savings for Pilot $431,615.93 Savings for Pilot $1,294,847.78 Savings for Pilot $1,870,335.68

Appendix CConnect and Disconnect Cost

Standard Meter Smart Meter

Customer Base 10,000.00 Customer Base 10,000.00

Percentage that need service 20% Percentage that need service 20%

Cost per service charge $25.00 Cost Per Srevice Charge $1.00

Total Cost $50,000.00 Total Cost $2,000.00

Savings $48,000.00

Monthly Fee Revenue

Customer Base 10,000

Percentage that change habits 90%

Customers that change habits 9,000

Average Bill $110.00

Average Savings 13%

Average Bill Savings $14.30

Average charge $3.50

Total Profit per month $31,500.00

Billing periods 18

Total Revenue per two years $567,000.00

Monthly Fee Revenue

Customer Base 10,000

Percentage that change habits 95%

Customers that change habits 9,500

Average Bill $110.00

Average Savings 13%

Average Bill Savings $14.30

Average charge $3.00

Total Profit per month $28,500.00

Billing periods 18

Total Revenue per two years $513,000.00

Total Revenue per four years $1,080,000.00

Appendix D

Cost Savings Analysis

Smart Meter Implementation / Marketing

Overall Cost of Installation $1,053,366.00

Marketing Budget $70,000.00

IBM $200,000.00

Total Cost $1,323,366.00

Cost Savings

Connect/ Disconnect Program Cost Saving $48,000.00

Meter Reading Cost Saving $216,000.00

Outage Avoidance Costs Saving $100,000.00

Revenue Generated $1,080,000.00

Total Savings and Revenue $1,444,000.00

Difference $120,634.00

Appendix E

Electricity Usage Savers

Smart Meter, Display and Application Bull Base Bear Charge Per Month

Annual Usage 9,489.96 Customers who saved over 3.50$ a month 90% 75% 60% $3.50

Monthly Usage 790.83

Daily Usage 26.36 Pilot User 10000 10000 10000

Hourly Usage 1.10 Users who saved 9000 7500 6000

Revenue Per Month $31,500.00 $26,250.00 $21,000.00

Annual Reduction 13% Revenue Per Year $378,000.00 $315,000.00 $252,000.00

Hourly Savings from base $0.16

Electrcity Cost $0.25

Hourly Savings from base $0.04

Savings Per Month $29.97

Savings Per Year $359.68

Savings for Pilot $3,596,799.38

Appendix F

Value of outage avoidance:

Customer's Value of Lost Load:

Customer per Year:

Hours: 5

Average Cost/kWh $0.10

Value of Lost Load 0.5

Annual Demand 4125.86

Power Outages Avoided with Smart Meters 99%

Total Value of Outage Avoidance 20.84

Total Value of Outage Avoidance for All Customers 208,355.93

Appendix GCost Saving Benefits:

Metering Costs:

Cost of Inspection per Technician:

Total Number of Customers 10,000.00

Checks per Month/ Customer 1.00

Total Checks /Month: 10,000.00

Time Required to Check Meter 5 minutes

Meters Checked/ Hour 12.00

Technician Hours/ Day 7.00

Meters Checked/Day 84.00

Total Days Needed to Check Total Meters: 120 days

Number of Technicians Employed 6.00

Days per Month to Check Meters ( per Technician): 20.00

Technician Cost/ Day $150.00

Technician Cost/ Hour $13.00

Total Cost of Technician per Month $3,000.00

Technician Cost/ Unit $1.05

Total Cost of All Technicians/ Month $18,000.00

Total Cost of All Technicians/ Year $216,000.00

Appendix H

Federal Communications Commission (FCC) standards for intentional and unintentional radio emissions, and safety related to RF exposure, parts 1 and 2 of the FCC's Rules and Regulations [47 C.F.R. 1.1307(b), 1.1310, 2.1091, 2.1093.

• ANSI C12.1, 12.10, and 12.20 standards for meter accuracy and performance• Local technical codes and requirements• A functional test designed to verify the compliance to utilities technical and

business requirements• Utility specified requirements that are expected to exceed the standards.

Examples:• Higher surge requirements for areas with lightning issues• Stainless steel enclosures for close seaside locations

Appendix H