ABB Annual Users Group Meeting ABB Ltd

ABB Annual Users’ Group Meeting © ABB Ltd. - 1 - August 27 – 31, 2006 Distribution Information Systems Network Management Business Unit (NM) Welcome Rafael Ochoa

Welcome to the 2006 UGM! © ABB Inc. - 2 - Lake Tahoe, NV August 27 - 31

Agenda Highlights - Technical n General Session n n Services Group – Mike Malone n Software Development Environment – Doug Wall n Project Implementation – Hormoz Kazemzadeh n Product Development / R&D / Vision – Martin Bass n Software Development – Bill Boswell n Power Applications – William Peterson n n Operations Update – Dave Aldrup “APS Operating Vision” – Scott Gudeman Network Manager DMS™ n Several sessions - one split session: operators & IT administrators n Network Planner™ n Several sessions: Feeder. All® and Reli. Net™ © ABB Inc. - 3 - n n Training session: Foresite® Customer Updates

Agenda Highlights – Social / Logistics n Monday Evening n n n Group dinner @ hotel Short talk by Gordon Woolbert – Sr. Vice-President & General Manager Tuesday Afternoon: Inter-Personal Activities (two options) n n n Golf “Tournament” or Lake Tahoe Tour Thursday Morning Session – 2006 UGM Concludes n n Wanted: Customer Surveys - n © ABB Inc. - 4 To be concluded promptly at 11: 00 AM Need your input / comments / observations

NM’s Products, Systems and Services “Solutions Provider of Real-Time Systems for Enhanced Utility Performance” Energy Management Systems (EMS) n Distribution Management Systems (DMS) n Trouble Call (TCS ) / Outage Management Systems (OMS) n Distribution Planning Software n Central Market Operations & Business Software n Communication Systems and Products n © ABB Inc. - 5 Supervisory Control and Data Acquisition (SCADA) Systems n - n Software Support and Services

Network Management - Portfolio Networks & Markets n Energy System Operation n n Energy Market Operation & Trading n n - Network Manager BMS Energy System Planning n © ABB Inc. - 6 Network Manager (SCADA/GMS/EMS/DMS) Network Planner

NM – Utility Communication Fiber optic Networks n Power Line Carrier Systems n Network Management n Radio Systems n Voice Systems /Telephony n Tele-Protection Solutions n © ABB Inc. - 7 Data Networking Solutions n - n Services

Network Manager SCADA/EMS n Business Application n n Supports operation and planning of Generation/Transmission systems Main Features n n Determine operational security and detect congestions - identifies both active power loading and voltage collapse n n Determine optimum operation points with regard to active power flow & voltage profile Record disturbances, performing analysis reporting and restoration tasks Customer Benefits © ABB Inc. - 8 Supports safe and efficient operations in a deregulated or regulated market n - n Secure power flows on transmission grids n Ancillary services to maintain the goal of stable and reliable operations

Network Manager DMS and SCADA/DMS n Business Application n n Efficient operation & analysis of MV & LV networks Main Features n n Work management flow n Assess safety for personal, facilitates communication with crews in the field n n Outage Management Systems Supports use of mobile devices Customer Benefits Enhancing work management n © ABB Inc. - 9 Optimum operation, minimizes losses and defines voltage profiles n - n Integration to other applications (e. g. , GIS, CMMS, CIS, CRM)

Network Planner n Business Application n n Reli. Net: Integrated predictive reliability assessment tool n n Feederall: Integrated distribution planning and engineering application Foresite: Long-range load forecasting integrated transmission and distribution planning applications Main Features © ABB Inc. - 10 Feederall: Tools for network design, system expansion, optimal switching and protection coordination n - n Reli. Net: Economic evaluation and assessment of alternative system designs based on predicting the reliability of distribution systems n Foresite: Integrated T&D expansion plans by combining GIS-based spatial analysis and economic forecasts

Network Management Locations Burlington, CA Santa Clara, CA Cary, NC (Raleigh) © ABB Inc. - 11 - Sugar Land, TX (Houston) 300+ technical resources

Network Management in 2005/2006 n Organization n Re-organization “completed” - yielding improved working synergies / environment n n Service / Support Group – sharing expertise n n Completed move to Cary, NC of the Distribution Group Leveraging know-how from 3 distinct markets - unique position in market place Customer Base n Increasing market presence – increasing customer base n n Steady growth in 2005 and continuing trend in 2006 Financials n Strong results in 2005 n © ABB Inc. - 12 - n Strong performance so far in 2006 Development n Significant development – R&D and project funded n Investment in Quality Improvement tools

Market & Customer Trends in Distribution n Seeking “complete solutions” - more than individual products n n Partnerships, alliances, consortia are the trend n Efficient integration of third-party products/systems is critical n n Preference to acquire different technologies from single vendor Solutions are becoming complex and comprehensive Demanding off-the-shelf, baseline software – no more customized n n Need for enhanced services and support infrastructure Migration to integration of T&D processes n n n Level of integration is widespread ABB is in a good position - Pacifi. Corp, EXELON’s Com. Ed, DTE Evolution to real-time, highly-sophisticated systems n © ABB Inc. - 13 - n High availability, highly redundant Overlapping trend between DMS, OMS and SCADA n More “managing” the network – improved asset utilization

Main 2006 Initiatives n Continue to Focus on Quality Improvement & Delivery Commitments n n ISO 9000 Registration n Senior Management emphasis on Project Execution n Seek Customer Feedback – Customer Surveys n n Continuous review/analysis of our processes Delivery of software releases, completion of project milestones, proposals, etc. Significant R&D and Project-Funded Development n n n Support on platform and other IT software issues Global and local resources Solidifying Partnerships with Third-Party Companies Consultants, Integrators and Hardware Vendors n © ABB Inc. - 14 GIS, Mobile Dispatch, middleware and data-conversion Vendors n - n Partners for Cyber-Security – following development closely

Main 2006 Initiatives n Getting Close to our Customers’ Processes n n n Increase our support/responsibility areas Support on Change Management Grow presence / product line in market place n n Continue to transform products into “solutions” n n Responsible for successful deployments Transforming engineering tools into “asset utilization” tools Enhancing Service / Support Groups n n Across all centers – dedicated management and technical resources Investment in Development Tools and Environment Variances Reporting n © ABB Inc. - 15 Automated Testing n - n Hardware Environments – “integrated” and stand-alone systems

Releases & Product Development n Software Releases in 2005 n n n Network Manager DMS – released as scheduled Network Planner – released as scheduled Asset Utilization Tools n n Advanced Switching Analysis - completed n n Unbalanced Load Flow - completed Line Unloading Functionality - completed Decision Support Tools n n n Outage Notification Module – initial functionality completed Web-Based Maps - completed Business Support Tools © ABB Inc. - 16 Training Simulator Interface – initial functionality completed n - n Interfaces to infrastructure systems (e. g. , AMR, Mobile Dispatch, etc. )

Installation Experience – Increasing n Network Manager - DMS n n Several under implementation (CPS, APS, DTE, Jackson EMC, Ergon) n 90+ Dispatch Offices n 850+ Licensed Users (Enterprise-wide licenses) n 28 million connected customers n n 31+ operational sites Pursuing several new projects that would start in 2006 or early 2007 Network Planner 1, 000+ trained distribution engineers on latest releases n Global presence – leverage for real-time applications n © ABB Inc. - 17 600, 000 miles of distribution feeders supported n - n Development platform for real-time environment

Some Customers … Thanks!!! © ABB Inc. - 18 - Network Manager - DMSTM Network Planner. TM Pacific Gas & Electric Delaware Electric Sydkraft (Sweden) Iberdrola (Spain) Israel Electric Company (Israel) Taiwan Power (Taiwan) Exelon - Com. Ed Nevada Power Company Ni. Source Dixie Electric EMC Progress Energy Carolinas Nashville Electric System Memphis Light, Gas & Water Jones Onslow EMC WE Energies Pacifi. Corp Central Power & Light Illinois Power Lumbee River EMC South Central Indiana REMC Brunswick EMC Hanghzou/Ningbo (China) Laurens EMC Blue Ridge EMC Ergon (Australia) DTE City Public Service New Hampshire EMC Austin Energy Dixie Electric Luz del Sur Ni. Source Pacifi. Corp Nova Scotia Power Edmonton Power EDENOR Arizona Public Service Comision Federal de Electricidad Cinergy Sigeco Lincoln Electric Puerto Rico Electric Power Authority Cobb EMC Comm. Electric Enelven Empresas Publicas de Medellin Midwest Energy Iberdrola Israel Electric Dayton Power & Light EEQ (Ecuador) Rochester Gas & Electric Iberdrola (Spain) UGI Utilities Laurens EMC

ABB Participants – Network Management Manager, Product Releases / Quality Leader Betsy Hobgood Hormoz Kazemzadeh Manager, Proposals Manager, Projects Dr. Wenping Li Yilang Chen Sr. Applications Engineer Director, Engineering Oscar Tillberg Anders Bjorkman Manager, Sales – North East Region Director, R&D William Peterson Jonathan Hou Manager, Engineering Applications Sr. Engineer, Marketing & Business Development Allen Skopp Jason Franco Director, Sales – South Central Region & Exelon Manager, Engineering Martin Bass David Brown Product Manager, NM DMS Manager, Sales – South East Region Bill Boswell David Aldrup Manager, Software Development VP, Operations Mike Malone Gordon Woolbert Manager, Services © ABB Inc. - 19 Doug Wall Sr. Marketing Coordinator - Trish Palys Sr. VP & General Manager John Barnick Dr. Rafael Ochoa Manager, Sales – Western Region VP, Business Development Melissa Mc. Devitt Front End Sales, Western Region