Smart Grid Investor Presentation

October 8, 2009
 Smart(er) Grid: A Working Definition
A secure environment of applications, sensors, and controls 
that provides analytics and actionable information using 
automation and communication  through 
embedded technologies, standards and systems to 
enable stakeholders to
realize reliable, affordable and environmentally responsible 
energy and water.

Three key objectives towards a Smart(er) Energy Economy:

1. Customer participation in managing consumption & conservation
2. Reliable & Flexible Delivery support for mission critical operations for 
reliable and flexible delivery
3. Diversity of supply to achieve energy independence
© 2009, Itron Inc.
Applications

Regional Interaction (ISO/RTO)
Distributed Generation including Renewable Energy
PHEV (V2G)
Regional Interaction (ISO/RTO)
Supervisory Command And Control (SCADA)
Substation Automation
Self Healing Delivery Systems (Peer‐To‐Peer)
Workforce and Asset Management & Optimization
Distribution Management Systems (DMS)
Asset Monitoring & Management (Basic DA)
Energy Management: Demand Response
Metering: Dynamic Rates & Communications Home
Complex Metering: CPP / PTR / RTP Smart
Meter Data Management: Enterprise Data Mart
Outage & Restoration Reporting (OMS)
Advanced Metering & Rates: TOU / Demand
Customer Operations: Field Operations
© 2009, Itron Inc.
Revenue Cycle Services: Meter‐To‐Cash 3
 Communication Considerations
Measurement Sensors Controls Command &
Control
Availability Low Low Medium High
Reliability Low Low Medium High
Latency Low Medium Medium High
Throughput Low Low Low High
Cost High High Medium Low
Longevity High High Medium Low

For a typical Midwestern utility with 1.5 million meters

•300K additional “Smart Grid” devices to be automated
•270K of these fell into things that could potentially be supported on the RF LAN
•30K required low latency/high bandwidth connectivity

© 2009, Itron Inc. 4

 Smart Grid Communications – An Applications View
ƒ “Like  the Internet”:  A multi‐layered Network‐Of‐Networks. 
ƒ An interactive platform providing appropriate communications to meet 
application and data requirements:
> Backhaul Wide Area Network (WAN)
> Optional Regional Access or Field Area Network (RAN / FAN)
> Reach through neighborhood Local Area Network (LAN)
> Personalized , Premise or Home Area Network (PAN / HAN)
ƒ Key considerations for each layer are:
> Availability & Reliability
> Latency & Throughput
> Cost & Longevity

© 2009, Itron Inc.

 Itron’s Response
ƒ Increase the throughput of the RF LAN by 8 times

ƒ Extend IP  services to the device layer, including the meter

ƒ Enable the Cell Relay “take out point” as an IP Cell Router

ƒ Open access to multiple application servers

ƒ A mid‐tier RAN with network speed exceeding 1MBps

ƒ Extended network management capability

ƒ A secure the end‐to‐end operating environment

© 2009, Itron Inc. 6

Mid‐Tier RAN
AMI  / DR SCADA / DMS Network Control
IEE Collection  Security 
DRMS SCADA OMS DMS Network Management
MDMS Engine Appliances

Enterprise Service Bus / Core Backbone Network
Point of Presence Router or Switch

Public / Private Wide Area Network (Broadband)
Cellular ‐ Fiber – BPL
Regional Area Network (RAN) (≥ 1MBps)
NIC
WiMax – WiFi – Private RF
HAN Relay Bridge

OpenWay
OpenWay PLC LAN
TStat RFLAN
(≥ 153KBps)

HVAC
HAN HAN HAN

Display HAN
Gas
© 2009, Itron Inc.
 DA via LAN

3rd party device integration

• Standard OpenWay module
• Feeder Sensor Applications
• Outage / Fault Monitoring
• Surge Protection
• Transformer Monitoring
• Volt / VAR Control

© 2009, Itron Inc.

An Ecosystem

Wide Area Network (WAN) Regional Area Network (RAN)
ƒ AT&T ƒ Arcadian
ƒ Sprint ƒ ClearWire
ƒ Telus ƒ GE MDS
ƒ Verizon ƒ Redline Communications
Ruggedized Routers ƒ Tropos Networks
ƒ Cisco Systems
ƒ GE MDS Application Partners
ƒ RuggedCom ƒ Google
Application Partners ƒ Microsoft
ƒ ABB (DMS/OMS) Device Partners
ƒ Areva T&D (OMS/DMS) ƒ ABB
ƒ Augusta Systems ƒ Areva T&D
ƒ CGI (OMS) ƒ Coopers
Home Area Network (HAN) ƒ Kinects Solutions Inc.
ƒ Aztech ƒ S&C Electric Company, Inc.
ƒ Comverge ƒ Schweitzer Engineering Labs
ƒ Tendrill ƒ Tollgrade Communications
ƒ Open‐Peak 
© 2009, Itron Inc. 9
 Open 
Standards
ƒ Interoperability and transportability are key
> Open interfaces between layers, segments and domains
> Promote innovative ecosystem of applications not yet envisioned
> Ensure simplified “technology refresh”, upgrades and expansion
ƒ Connectivity AND Communications
The Internet Protocol Suite (“IP”)
Layer Function Examples
HTTP, SMTP,
4. Application Network process to application
DNP3.0,C12.22
End-to-end connections and
3. Transport TCP, UDP
reliability
Path determination and logical
2. Internet IP
addressing
Methods that link between adjacent Ethernet (MAC &
1. Link
network nodes LLC), RF LAN
© 2009, Itron Inc. 10
 IP V6 Support 
ƒ Extend IP  services to the device layer
> Including the meter and third party devices

ƒ Enable the Cell Relay “take out point” as an IP Cell Router
ƒ Fully Backward compatible with existing hardware being 
deployed to the field by firmware download
ƒ Enable different IP networks with different performance to 
be seamlessly integrated
ƒ Largely indifferent to C12.22
ƒ Due to the multi use Network Management will be 
enhanced as well as security of the “Pipe”
© 2009, Itron Inc. 11