NORTH AMERICAN MUNICIPAL UTILITY SMART GRID DEPLOYMENT SURVEY 2012

1

Approximately how many electric customers do you have?

9% 26%

11%

< 5,000 5,000-10,000 10,000-20,000

12% 16% 26%

20,000-50,000 50,000-100,000 > 100,000

North American Municipal Utility Smart Grid Deployment Survey 2012

2

How would you describe your current smart grid deployment status?

5% 12%

No Strategy

9%

In planning/investigatory stage Formal strategy in place

7% 67%

Moving forward with large scale deployment Deploying multiple applications simultaneously

North American Municipal Utility Smart Grid Deployment Survey 2012

3

How important are smart grid projects relative to your overall business plan over the next 5-year period?

Priority

0.00

Scale

Lowest priority

0.50 1

1.00

1.50 2

2.00 3

2.50

3.00 4

3.50 5

4.00 Highest priority

North American Municipal Utility Smart Grid Deployment Survey 2012

4

What are the top 3 benefits of implementing smart grid technologies? (Please choose 3 from the following list):

Increased asset life Environmental/GHG reductions Improved power quality (PQ) Increased security Ensuring future energy demand is met Increased integration of distributed generation and storage Preparing the grid for next generation applications (such as EV integration and smart charging, etc.) Reduction in restoration time Customer choice/providing a platform to change end-user demand patterns Reduction in forced outages and blackout and Increased visibility and control Energy Efficiency Reduction in peak demand

0

10

20

30

40

North American Municipal Utility Smart Grid Deployment Survey 2012

5

Are smart meters a prerequisite to your utility’s vision of a smarter grid?

21% Yes 12%

No 67%

Unsure

North American Municipal Utility Smart Grid Deployment Survey 2012

6

Your utility expects the customer gateway to the Home Area Network (HAN) to be:

12% 12%

A Smart Meter A broadband router 76%

Other (please specify)

North American Municipal Utility Smart Grid Deployment Survey 2012

7

When will smart meters reach the majority of your customers?

9% Within the next 3 years 41%

28%

Within the next 5 years Within the next 10 years Longer than 10 years

22%

North American Municipal Utility Smart Grid Deployment Survey 2012

8

What do you consider to be the most important applications of a smart grid?*

AMI Distribution Automation/ Grid Optimization

Scale

Demand Response

5

High importance

4

Advanced Consumer Services

3

Home/Building Area Networks and On-Site Energy

2 1

Distributed Generation

Low importance

* It is OK to use the same number more than once.

EV Integration Grid Storage 0

10

20

30

40

50

60

70

North American Municipal Utility Smart Grid Deployment Survey 2012

9

The primary purpose for the deployment of your end-to-end communications network/ infrastructure (connecting your head-end utility systems to your residential, industrial and commercial customers) is what?

80% 70% 60% 50% 40% 30% 20% 10% 0% Advanced Metering Demand Response Grid Optimization/ Generation/Storage Integration Distribution Automation

No Plans

North American Municipal Utility Smart Grid Deployment Survey 2012

10

How concerned are you with your company’s ability to assess and deploy the following technologies and applications: Utility Systems Integration (SCADA/EMS, AMI, DMS, OMS, GIS, CIS, Etc.)

Data Management Solutions (including Meter Data Management)

Smart Meters

Scale

AMI Networks (FAN/NAN Networks)

5

Demand Response Dispatch

4

Grid Optimization/Distribution Automation

3

Wide Area (communications) Networks

2

IT/Enterprise Bus Architecture

1

Highly concerned

Not concerned

EV Integration and Smart Charging Centralized Renewable Integration (wind farms, CST/CPV, etc.)

Distrubuted Generation Integration (such as rooftop PV)

Energy Storage Integration 0

20

40

60

North American Municipal Utility Smart Grid Deployment Survey 2012

11

Please indicate the degree to which you believe technology gaps exist between what your utility currently wishes to implement and what the market currently offers

Energy Storage Integration Centralized Renewable Integration (wind farms, CST/CPV, etc.)

Scale

Demand Response Dispatch EV Integration and Smart Charging

5

Distrubuted Generation Integration

4

(such as rooftop PV)

Large technology gap

3

Data Management Solutions (including Meter Data Management)

2

AMI Networks (FAN/NAN Networks)

1

IT/Enterprise Bus Architecture Utility Systems Integration

No technical barrier

Please enter N/A if you are not currently exploring a particular solution.

(SCADA/EMS, AMI, DMS, OMS, GIS, CIS, Etc.)

Wide Area (communications) Networks Smart Meters Grid Optimization/Distribution Automation 0

20

40

60

North American Municipal Utility Smart Grid Deployment Survey 2012

12

The primary challenge related to a successful smart grid deployment is:

20%

14%

2% Lack of interoperability standards Regulatory Technology maturity/availability

19%

36% 9%

Security Unknown customer adoption Other (please specify)

North American Municipal Utility Smart Grid Deployment Survey 2012

13

In the long term, your utility expects Demand Response programs to be primarily led by:

32%

34%

The utility itself Third party Combination with utility managing. Combination with third party managing.

9%

5%

Too early to tell

20%

North American Municipal Utility Smart Grid Deployment Survey 2012

14

Can current AMI communication/networking solutions adequately meet bandwidth, latency and other feature requirements to support Distribution Automation/Grid Optimization projects?

27%

66%

Yes No 7%

Unsure

North American Municipal Utility Smart Grid Deployment Survey 2012

15

Your plan to embed sensors throughout the Distribution Network (to monitor health and performance of the grid) is:

12% Underway 13%

45%

Likely within 2 years Likely within 5 years

21% 9%

Likely within 10 years No plan

North American Municipal Utility Smart Grid Deployment Survey 2012

16

Volt/VAR control (i.e., centralized, coordinated voltage control of the distribution grid) is an application that your utility is:

16%

Currently Using

30%

Likely within 2 years 18% 4%

Likely within 5 years Likely within 10 years

32%

No Plan

North American Municipal Utility Smart Grid Deployment Survey 2012

17

When does your utility expect to have a Distribution Management System (DMS)?

9% 32%

14%

We currently have a DMS in place Likely within 2 years Likely within 5 years

9%

36%

Likely within 10 years No plan

North American Municipal Utility Smart Grid Deployment Survey 2012

18

What capabilities does your Distribution Management System (DMS) offer?

Other (please secify) Load allocation Unbalanced load-flow analysis Switch-order creation Simulation Approval and execution Overload-reduction switching Voltage control Fault-location algorithms Outage recording for general information/regulatory 0%

10%

20%

30%

40%

50%

North American Municipal Utility Smart Grid Deployment Survey 2012

19

Is your utility currently exploring formal renewable energy generation initiatives?

36% Yes 64%

No

North American Municipal Utility Smart Grid Deployment Survey 2012

20

Your utility believes it will face dramatically different regulation and/or legislation in the next 5 years in which of the following areas? Please check all that apply

N/A No dramatic changes Other New incentives for energy efficiency Introduction of price on carbon emissions Strict requirements for renewable energy Dynamic pricing for retail electricity 0%

10%

20%

30%

40%

50%

60%

North American Municipal Utility Smart Grid Deployment Survey 2012

21

When does your utility plan to pilot grid-scale energy storage initiatives to help mitigate the intermittency of renewable energy?

2% 3%

4% 9%

2%

Have already begun Within the next year Within the next 2 years Within the next 5 years

80%

Within the next 10 years Unsure

North American Municipal Utility Smart Grid Deployment Survey 2012

22

Your utility holds the view that granular consumer energy data is the property of:

23% The Consumer The Utility

52% 25%

Unsure

North American Municipal Utility Smart Grid Deployment Survey 2012

23

How concerned is your utility with the challenges related to managing, storing, protecting and effectively utilizing the potential onslaught of data that smart grids may bring?

5%

45%

50%

Highly concerned Mildly concerned Not concerned

North American Municipal Utility Smart Grid Deployment Survey 2012

24

In your efforts to educate your consumers on the value of smart grid technologies and applications, which areas have you stressed? Please check all that apply:

No outreach has been made Reduction in blackouts/brownouts Next generation consumer technologies

(smart appliances, energy management systems, and Home Area Networks)

Addition of green energy Cost savings for customers Reduction in GHG emissions (such as CO2)

Increased customer participation

(i.e., control and monitoring)

Reduction in peak energy and/or load in general 0

5

10

15

20

25

30

North American Municipal Utility Smart Grid Deployment Survey 2012

25

Has your utility examined the possibility of making home energy management systems and in-home displays “rate recoverable”?

21% Yes No 79%

North American Municipal Utility Smart Grid Deployment Survey 2012

26

An EV demonstration pilot program for your utility is scheduled/likely to begin:

14%

25%

20% 11% 23%

7%

Never Has already begun Within the next year Within the next 2 years Within the next 5 years Within the next 10 years

North American Municipal Utility Smart Grid Deployment Survey 2012

27

What is the number one concern related to the introduction of EVs?

Ensuring that your distribution network is robust enough to support EVs on a mass scale

12% 27%

Avoiding accidental peaks by implementing smart charging Ensuring you have enough generation to support a massive rollout

36% 20% 5%

Proper customer billing systems (to record and bill transactions on these mobile assets) Other (please specify)

North American Municipal Utility Smart Grid Deployment Survey 2012

28