will need to refurbish, rebuild, replaceor conserve 25,000 megawatts ofgenerating capacity—more than 80percent of Ontario's current electricitygenerating capacity—at an estimatedcost of $70 billion CAD.

Building new generation sources forelectricity is only part of the answer.There are tremendous opportunitiesto reduce the supply-demand gapthrough a shift in when electricityis used by consumers.

Hydro One Networks Inc., whollyowned by the province of Ontario,delivers electricity safely, reliablyand responsibly to homes andbusinesses across the province.The company owns and operatesOntario's 29,000 kilometer (km)high-voltage transmission networkthat delivers electricity to largeindustrial customers and municipalutilities, as well as a 122,000 km low-voltage distribution system that serves1.3 million end-use customers andsmaller municipal utilities.

The SituationTo meet the growing needs of theprovince, Ontario must build analmost entirely new electricity systemby 2025. Estimates show that overthe next 20 years, Ontario

The Power of Smart Metering

Capgemini and Trilliant Networks Team with Hydro Oneto Meet Aggressive Energy Conservation Goals

“We are implementing themost capable AMR solutionever deployed to more than

one million meters.”Rick Stevens

Director, Development StrategiesHydro One Networks Inc.

AutovationSM 2007: The AMRA International Symposium September 30 - October 3

‘‘This team leverages hundreds ofutility field personnel who activelyseek assignment to ourchallenging and exciting SmartMeter Project. Having worked withmany teams during my time withHydro One, as well as my role onthe AMRA Board and othercapacities, I have never seen sucha diverse, professional andcapable team come together.’’Rick StevensDirector, Development StrategiesHydro One Networks Inc.

By introducing advanced meteringinfrastructure (AMI) and time-of-use(TOU) rates—charging higher ratesduring peak demand hours and lowerrates at night and other off-peak timeswhen there is a surplus of electricgeneration capacity—consumers willbe incented to shift their consumptionpatterns in terms of when and howthey use electricity. For Ontario, thisnew infrastructure will provide afoundation for achieving more than afive percent reduction in provincialdemand through load shifting, energysavings and price awareness.

Following the East Coast power outageof 2003—and the concurrent wholesaleprice volatility—Ontario acted quickly.On July 16, 2004, the Energy Ministerdirected that 800,000 smart meters beinstalled by December 31, 2007,and for all of Ontario’s 4.5 millioncustomers by December 31, 2010.

For Hydro One, the scope of thischallenge was made even moredifficult because of the complexity ofproviding service to both the urbanand extremely rugged rural areas ofCanada’s most populous province.The province of Ontario has alandmass twice the size of Texasand is larger than France and Spaincombined. The utility’s most remotecustomers are accessible only by rail,helicopter, snowmobile or boat.In some cases, utility employeesmust travel an entire day to reachjust a few customers.

Trilliant Networks’ implementation ofAMI provides Hydro One with:

■ High availability with automaticfailover through self-healing RFmesh network architecture

■ Fast data acquisition and end-pointcontrol with maximum data reliability

■ Commercial and residential electricand gas commodities measurement

■ Urban and rural coverage options

■ Choice of meters from multiple suppliers

■ Connectivity with premised andmobile devices

The SolutionTaking the utility leadership rolein advancing this technology andsupporting the provincial government’sgoal to have a smart meter in everyOntario home and small business,Hydro One compiled a dedicated team,beginning in 2005, by developing andtesting the processes, tools and networkinfrastructure to support the massdeployment of unified, AMI-enabledsmart meters in 2007 through 2010.The objectives were to:

■ Deploy smart meters across theresidential and small commercialcustomer base

■ Build enabling communicationsnetwork and infrastructure

■ Develop and test regulated price plan(RPP) and TOU billing, includingOntario Energy Board (OEB)mandated billing data links with theIndependent Electricity SystemOperator (IESO) by 2008

In addition to meeting the requirementslaid out by the OEB, Hydro One alsoset an objective for its AMI project todeploy a platform that could enablea broad range of new initiatives thatwill extend beyond basic automatedmeter reading for billing purposes.The following initiatives are includedin Hydro One’s strategy for meetingfuture energy needs, while alsodelivering better service to customers:

■ TOU pricing

■ Theft detection and otherautomated billing functions

■ Direct and/or premises-basedload control

■ In-premise displays

■ Real time outage information

■ Distribution automation

■ Distribution grid monitoring

2

Capgemini’s project managementscope includes:

■ Meter installation and field servicelogistics—from strategy and guidelinesto tracking

■ Commission head-end systems

■ Prepare and integrate TOU billing andcustomer care operations

■ Offer strategic direction on retail andwholesale activities

The Results to DateHydro One and its partners continueto execute steadily to meet projectobjectives as planned. Initial meterdeployments started in late 2006,and in June 2007, the Hydro Oneteams surpassed a notable milestoneof 100,000 installed smart meters.This puts the project on target formeeting its goal to have 240,000meters installed by the end of 2007.As a result, Hydro One will be theonly utility in the province in thisposition. This exceptional achievementplayed a role in leading the UtilityPlanning Network to selectHydro One as their 2007 awardrecipient for AMR deployment.

using a robust proven governancemodel which smoothly manages the 12discrete work streams.

Trilliant Networks, a leader in thedelivery of wireless networkingsolutions for utility applications,bases its technology on the global 2.4GHz IEEE 802.15.4 standards. Thecompany is the first AMI supplier todeliver an integrated standards-basedplatform for AMI and demand response(i.e., load control) incorporatingthermostats and other loads such aspool pumps and water heaters. Thesolution also supports in-homeconsumer displays that control loadsand posts meter readings and messagesfrom utility providers.

The joint team set even more aggressivegoals by aiming to deploy 240,000smart meters by 2007 and the full 1.3million by 2010.

Smart Meters: How They WorkThe diagram below illustrates how the Smart Meter infrastructure and wireless networkwill be implemented.

How Hydro One, Capgemini andTrilliant Work TogetherGiven the vast territory of Ontario,Hydro One quickly realized that to besuccessful this project needed to bemore than a basic AMR implementation.At the core of the solution is the needfor a ubiquitous communicationsnetwork and integration approach. Bothelements are required to enable theexploitation of data from many types ofdevices—AMR, load control, in-homedisplays, distribution monitoring andcontrol—by posting and making theinformation available to numerousenterprise applications, such ascustomer information systems,outage management, asset management,geographic information systems andwork execution systems.

To accomplish this task, Hydro Oneassembled a team of industry leadersto develop the vision for an end-to-endsolution that embraced open standardsand the use of Internet Protocol (IP) atall communications levels. This wouldensure that the network and integrationwould be available and compatiblewith multiple field applications.

Capgemini, an integral part of theproject team, is responsible for overallproject management support, newsystems integration, legacy systemsmanagement, integrated process designand operational services. TrilliantNetworks designs and supplies theAMI including a standards-based 2.4gigahertz (GHz), RF mesh network,head-end software and 1.3 millionsmart meters to be installed byHydro One operations.

With deep experience managinglarge-scale projects like smart meterdeployments, Capgemini brings a clear,well-developed, practical approach toimplementing this new generation AMI.They work closely with Hydro One,

The Power of Smart Metering 3

AutovationSM 2007: The AMRA International Symposium September 30 - October 3

Approved by

Rick StevensHydro One

Paul KarrTrilliant

Gary WasslenCapgemini

Hydro One Project MissionStatement and DescriptionTo deploy a smart metering/network solution that meets theMinistry of Energy’s requirements atthe lowest possible cost and to be anenabler for other business processesand transformations.

About Trilliant Networks Trilliant Networks, Inc. is an industryleader in open solutions for advancedmetering infrastructure (AMI), demandresponse, and grid management. Thecompany offers end-to-end solutions forwireless cellular and RF mesh AMInetworks. With technology based onopen standards and over 20 yearsexperience, Trilliant Networks hasenabled more than 100 utilitycompanies to provide their customersbetter understanding of energy usage,energy conservation tools, andreductions in billing. Customers includeDuke Energy, E.ON U.S., Hydro One,Northeast Utilities, Public Service Gas &Electric and San Diego Gas & Electric.Headquartered in Redwood City, Calif.,with operations in Granby, Quebec andConcord, Ontario, Trilliant Networks isprivately owned.

For more information about TrilliantNetworks, Inc., please visit our web siteat http://www.trilliantnetworks.com.

EU

C_H

YD

R1S

S_0

9280

8_02

0

Copyright ©2007 Capgemini. No part of this document may be modified, deleted or expandedby any process or means without prior written permission from Capgemini.

Capgemini, one of theworld’s foremost providers of

Consulting, Technology and Outsourcingservices, has a unique way of workingwith its clients, called the CollaborativeBusiness Experience.

Backed by over three decades of industryand service experience, the CollaborativeBusiness Experience is designed to helpour clients achieve better, faster, moresustainable results through seamless access to our network of world-leadingtechnology partners and collaboration-

focused methods and tools. Throughcommitment to mutual success and theachievement of tangible value, we helpbusinesses implement growth strategies,leverage technology and thrive through the power of collaboration.

Capgemini employs approximately 80,000people worldwide and reported 2006global revenues of approximately $9.625 billion or EUR 7.7 billion.

More information about our services and research is available atwww.us.capgemini.com/smartmeter

About Capgemini and the Collaborative Business Experience