Smart Meter Initiative

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• Smart Meter Initiative
• Customer Update Meeting
• July 18, 2011

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Why Smart Meters?

• Ontario has introduced smart metersalong with a
  time-of-use electricity price structureto help
  you manage your electricity costs, while helping
  Ontario to build a more efficient, more
  environmentally sound electricity system.
• Between now and 2025, Ontario will replace about
  80 per cent of its electricity system. There are
  several ways to do that
• building new generating facilities,
• refurbishing current facilities (where that makes
  economic sense), and
• investing in conservation and energy management
  tools so that will require less new electricity
  generating capacity.

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What is a Smart Meter?

• A smart meter is a meter that can record and
  report electricity consumption information
  automatically.
• In Ontario, our smart meters will record
  electricity consumption on an hourly basis, and,
  typically, report that information via a wireless
  technology.
• Conventional (our old electromechanical) meters
  only measure how much electricity is used in
  total from one reading to the next reading, and
  they have to be read manually in order to report
  that information.
• Smart meters measure how much electricity is used
  and when and will automatically send that
  information to your utility, via wireless and
  other communications technologies.

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Why is it important to know when electricity is
used?

• Knowing when electricity is used allows for the
  introduction of time-of-use (TOU) electricity
  ratesand that will give you a new way to manage
  and reduce costs.
• Right now, we have very little incentive to
  manage our electricity use because electricity
  prices remain the same no matter what the time of
  daysimply because our meters cannot report when
  electricity is used.
• TOU rates will vary over the dayfrom more
  expensive during times of peak demand (when we
  tend to use a lot of electricity) to less
  expensive during the off-peaks. With TOU rates,
  your choices about how and when you use
  electricity can have a positive impact on your
  costs.

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Four Smart Things that Smart Meters Do
Measure how much energy customers use and when
they use it Providing customers with the
opportunity to take action to better manage their
hydro bill by - Lowering their electricity
use during peak (higher cost) periods and -
Shifting their electricity use to off-peak (lower
cost) periods. Smart metering systems will store
customer electricity use information Allowing
them to review their electricity use information
the next day through the internet or
telephone. Help us to better manage power
outages Smart meters will inform us when an
outage happens. Reduced need to build power
generation facilities As all Ontarians shift
energy use away from peak periods.
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What are time-of-use (TOU) Prices?

• TOU prices are prices that vary over the
  daybetter reflecting the way electricity prices
  work in the electricity market.
• Depending on our demand and the availability of
  supply in the electricity market prices rise and
  fall over the day and tend to drop over night.
  That's why TOU rates varydepending on the time
  of day, the day of week (week or weekend, and
  holidays) and the season (summer or winter).
• With rates that vary, we'll all have an incentive
  to shift and/or reduce electricity consumption at
  times of peak demand.

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When will I move to time-of-use rates?

• TOU rates have been set by the Ontario Energy
  Board (OEB), and Parry Sound Power received a
  mandatory start date of September 2011 for
  time-of-use pricing for Regulated Price Plan
  (RPP)consumers.
• Customers will receive a welcome letter which
  will explain the time-of-use periods and the
  time-of-use rates that correspond to each period
  in early August.
• The welcome letter will also include a comparison
  of a billing period using RPP and TOU data, which
  will assist customers in understanding their
  consumption habits.

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TOU Rates
TOU Pricing - May 1, 2011
Based on typical residential consumption
patterns, the estimated TOU bill impact is an
increase of about 3.8 on the total bill, or
3.96 per month, for residential consumers who
use 800 kWh of electricity a month.
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TOU Chart
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TOU Rate Comparison Chart
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Comparator Statement
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Comparator Statement
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How Do Smart Meters Work?
Smart MetersOn an hourly basis, the amount of
electricity you use is tracked by the smart meter
on your home.
CollectorsEach day, this hourly information is
sent by wireless connection or through telephone
or power lines to a data collector located in
your neighbourhood.
Meter Data CollectionThese collectors relay
energy usage information to larger control
computers operated by your utility which ensure
that all the meters have been read and all the
necessary information has been captured.
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How Do Smart Meters Work?

Smart Meter Data Repository The utility then
sends this information to the provincial smart
meter data repository which calculates how much
electricity was used during on-peak, mid-peak and
off-peak hours. This energy use information will
also help in the development of electricity
forecasts and will help the Ontario Energy Board
determine future time-of-use prices. Only
authorized parties, such as your utility, will
have access to the highly secure database.
Customer Information and BillingInformation from
the data repository is sent back to the utility
and other billing agents so it can be used to
prepare bills.
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How Do Smart Meters Work?

Home Energy ManagementOver the next 12 months
Parry Sound Power will be evaluating and
implementing new energy management tools. These
new tools will allow customers to better manage
their energy use based on time-of-use prices.
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TOU Educational Tools

• 10 Smart Meter Lane - http//www.ieso.ca/house/
• The house at 10 Smart Meter Lane is an
  interactive web tool that shows customers the
  effect of Time-of-Use (TOU) rates as they use
  appliances, lighting and air conditioning at
  different times of the day.

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TOU Educational Tools

• 10 Smart Meter Lane
• Customers can click on an appliance and select
  start time and duration and the website will
  calculate the cost for running the appliance for
  the duration and time indicated. Time shifting
  some of your usage to evening and weekends will
  help you save.

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TOU Educational Tools

• Time-of-Use Rates at Work - http//www.ieso.ca/sma
  llbiz/
• The Time-of Use Rates at Work is an online tool
  designed to help small business owners understand
  how TOU rates will impact their business by
  getting them to build a consumption profile based
  on their electricity use. The resolution
  profiles will show the commodity costs under TOU
  rates and how simple conservation measures can
  impact their bill.

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TOU Educational Tools

Websites to learn more Parry Sound
Power www.pspower.ca Electricity Pricing and
Rates http//www.oeb.gov.on.ca/OEB/Consumers
Smart Meter Information http//www.mei.gov.on.ca
/en/energy/conservation/smartmeters/ Conservation
Tips http//www.powerwise.ca/ Residential and
Commercial Conservation Program
Information https//saveonenergy.ca/
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Conservation Programs

Conservation Programs There are a number of
conservation programs that are available for
residential customers and business owners.
Conservation programs provide you with
opportunities to manage the amount of energy you
use throughout your home or business. More
information will be available when these programs
are officially launched by the Ontario Power
Authority. Applications for the provincial
conservation programs are completed through the
saveONenery website https//saveonenergy.ca/
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Residential Conservation Programs

Coupon program for conservation products that
can be redeemed at many participating retailers.
By purchasing, properly installing and using the
featured energy-efficient products, you will be
able to manage your energy usage more
effectively.
Program for the removal of old inefficient
fridges and freezers. by ridding yourself of that
old, energy-guzzling fridge, you could save up to
125 a year on your electricity costs. Fridges
and freezers removed are disposed of in an
environmentally responsible manner that minimizes
material contributing to landfill.
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Business Conservation Programs

Under the small business lighting program,
qualifying businesses can get up to 1,000 worth
in energy-efficient lighting and equipment
upgrades. Small business are entitled to
additional incentives for the measures they elect
to install beyond 1,000.
The Retrofit Program provides substantial
financial incentives for replacing existing
equipment with high efficiency equipment and for
installing new control systems that will improve
the efficiency of your operational procedures and
processes.
Demand Response programs compensate participating
industrial and commercial businesses for reducing
their energy demand at specific times of power
system need.
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• Questions?