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0 2011 Silver Spring Networks. All rights reserved. Building the Smart Grid

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1 2011 Silver Spring Networks. All rights reserved. Agenda Introduction What We Do Two Case Studies: Pacific Gas & Electric Oklahoma Gas & Electric Possibilities .

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2 2011 Silver Spring Networks. All rights reserved. Unprecedented Disruptive Forces and Opportunities Renewables New Sources of Demand Historical Recent Emerging Environmental Regulation Customer Involvement SecurityReliability Operational Efficiency Carbon Monetization Non-technical Losses These forces will require utilities to change

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3 2011 Silver Spring Networks. All rights reserved. Company Overview About UsAwards Growing Deployments Worldwide 2002, Born to solve the utility challenges of connecting devices on the grid #1 share in networking technology ~8M+ homes/businesses networked to date; over 18M under contract Smart grid projects on 5 continents

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4 2011 Silver Spring Networks. All rights reserved. Agenda Introduction What We Do Two Case Studies: Pacific Gas & Electric Oklahoma Gas & Electric Possibilities

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5 2011 Silver Spring Networks. All rights reserved. Silver Springs Role Silver Spring provides a Unified Smart Grid Platform that maximizes utility business value, now and in the future Residential Devices Commercial & Industrial Devices Utility Operation Smart Grid Devices Open, IPv6, secure Multiple apps and transports Millions of endpoints deployed

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6 2011 Silver Spring Networks. All rights reserved. What We Do Delivering the Smart Grid Platform A Complete End-to-End Solution

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7 2011 Silver Spring Networks. All rights reserved. Smart Grid Helps Utilities Address These Challenges Energy Generation Transmission & Distribution Consumer Information can be leveraged across multiple applications Examples Reliability Automated Switching (Distribution Automation) Outage Management Operational Efficiency Meter Reading (AMI) Non-technical Loss Secure Metering + Analytics Customer Involvement Energy awareness and control tools Demand response programs Environmental targets Distributed renewables Electric vehicles Smart Grid = Intelligence

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8 2011 Silver Spring Networks. All rights reserved. Smart Grid Platform Requirements Strict and Complex Reliable Cost Effective Secure Broad Coverage Extensible High Performance Scalable Open Standards

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9 2011 Silver Spring Networks. All rights reserved. Agenda Introduction What We Do Two Case Studies: Pacific Gas & Electric Oklahoma Gas & Electric Possibilities .

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10 2011 Silver Spring Networks. All rights reserved. Example: Smart Metering Smart Meter Communications Can Create The Foundation For Smart Grid 10 System live 90 days after contract signing After 2 years: Over 4.2 million fully communicating smart meters on the network Installing 60,000 per week 5.5 million meters by end of 2011 Meters from Landis+Gyr and GE >500 remote connect/disconnects/day Now adding: Home Networking, Electric Vehicles, Distribution Automation, Integration of Renewables Pacific Gas & Electric

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11 2011 Silver Spring Networks. All rights reserved. Devices Connecting Homes and Businesses Meters

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12 2011 Silver Spring Networks. All rights reserved. Network Infrastructure It Starts with the Network Very Low Capital and Operational Cost Access PointsRelays

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13 2011 Silver Spring Networks. All rights reserved. Operational cost savings & Improved customer service Description Silver Spring Networks enabled meters allow PG&E to provide remote switching service without sending a truck Results: PG&E conducted ~215k remote operations during 2010 Source: PG&E; Silver Spring estimates AMI Benefits PG&E Remote Service Operation ~$500M per year

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14 2011 Silver Spring Networks. All rights reserved. We thought we were undertaking an infrastructure project but it turned out to be a customer project. - Chris Johns, President, PG&E 14 A New Perspective

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15 2011 Silver Spring Networks. All rights reserved. Champion the Consumer Benefits of Smart Grid 15 Energy efficient products have given our business a 33% return on investment.

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16 2011 Silver Spring Networks. All rights reserved. The people with the power in the energy industry of the 21 st century are the demanding energy customers who will rule as never before. 16

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17 2011 Silver Spring Networks. All rights reserved. OGE Engaged Customers with an Open and Unified Platform 17 Show immediate value to consumers Avoid customer backlash Improve energy efficiency Lower customer bills Enhance your brand

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18 2011 Silver Spring Networks. All rights reserved. Multiple Touch Points with Your Customers 18

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19 2011 Silver Spring Networks. All rights reserved. Customer Information Your Energy Use 19

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20 2011 Silver Spring Networks. All rights reserved. Customer Information Compare to Your Neighborhood 20

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21 2011 Silver Spring Networks. All rights reserved. The Results 21 57% Maximum Demand Reduction during Peak Period 11-33% Average Energy Reduction On the Highest Price Days 96% Customer Satisfaction Rating Customer Satisfaction Rating

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22 2011 Silver Spring Networks. All rights reserved. Building the Bridge with Information 22 An Open and Unified Smart Grid Platform is fundamental

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23 2011 Silver Spring Networks. All rights reserved. 23 The Opportunity: A smart grid platform builds a bridge with your customers in our common challenges

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24 2011 Silver Spring Networks. All rights reserved. New York Regulators Announce Rules of the Road Announcement on August 18 th, 2011 Provide Return on Investment to Consumers --- show me the money Work with Proven Smart Grid Technologies --- this is not YouTube Invest in Comprehensive Customer Education Plan --- customers not a meter Protect Customer Privacy --- this is not Facebook Increase Grid capabilities to add new technologies --- Rate recovery via traditional methods ---

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25 2011 Silver Spring Networks. All rights reserved. Define Your Long- Term Vision Choose the Right Platform Deliver Maximum Benefits Quickly Identify set of challenges & opportunities to address over the next 10+ years Avoid series of tests to discover a vision Select a proven communication platform that can support your vision Avoid choosing fragmented parts Unified Smart Grid Platform IPv6, end-to-end security Deploy 1-2 solutions to address urgent issues Implement at scale to realize benefits Getting Started From our experience Accelerate and de-risk the journey toward your future vision

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26 2011 Silver Spring Networks. All rights reserved. Utility Business Value from Silver Spring Platform Proven, lower risk, cost-effective True smart grid platform with successful customers Future-proofed built on open standards Leading cost-performance Innovation market leading investments

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27 2011 Silver Spring Networks. All rights reserved. Gracias