TVD goes Kinetiq and helps Milton Hydro pass along savings

MILTON, Canada, Nov. 12, 2004 — Strategic partners TVD and Kinetiq have put their technologies to work for Milton Hydro in southern Ontario. Milton Hydro Distribution Inc. has recently defined Demand Side Management (DSM) and Demand Response (DR) programs within the electricity sector that will support, enhance and expand their efforts in interval metering and introduce other projects including rate proposals, public education and outreach initiatives, and others. This stems in part from the Ontario Government’s decision to allow local distribution companies (LDC) such as Milton to invest in conservation and DSM initiatives and pass savings on to customers. Kinetiq and TVD will make it work for both the utility and consumers.

Milton Hydro’s DSM price response program includes aggressive installation of new interval meters that capture the demand reduction and energy savings opportunities for all new residential and commercial customers. The company will also retrofit interval meters in existing premises that use less than 50 kW.

Unique to Milton Hydro is the Energy Drill Programà¢â€ž-. This program, which includes an energy audit, will tailor standard protocols and procedures to different sectors such as institutional, educational or commercial with notification procedures in place to trigger the ‘drill’. Fashioned after fire drills, it will designate “Energy Marshals” working within the different sectors who will be responsible for taking specific actions to reduce demand during periods of anticipated constrained supply or elevated prices. This could include everything from turning off office lights to shutting down a production line.

Customers will be able to maximize energy cost reductions through a tracking system over the Internet and easy access to a comprehensive help-line. Through a system of fax, page, voice callout, SMS, Instant Messenger, Website or e-mail subscribers can receive real-time notifications advising when prices have exceeded or are forecast to exceed certain thresholds or when supply conditions are constrained. This allows users to better manage their energy use and costs by responding to price signals in a more timely manner.

The TVD Avalanche® DR-DSM is an extremely flexible Web based solution that allows customers to define when, where and how notification is presented about changes in market circumstances such as spot price and/or general conditions. This means they can set their own levels of market price, system load or other parameters that can affect their particular business strategy.

Notifications are based on inputs. These can be a 5-minute market price, day-ahead market price, reserve capacity, system load and even weather – anything that has a date/time and value. Inputs can also be based on human intervention such as a general market notification for power emergency or location specific that might involve an embedded generator or market price in a given region. Of particular importance to the Independent Electricity Market Operator’s (IMO) Transitional Demand Response Program (TDRP), designed to help businesses overcome barriers to price responsiveness including the adoption of more advanced energy management practices, is the three-hour ahead pre-dispatch price.

The TVD system includes two types of notification:

* Alarm based which indicates either a breach (e.g. price goes above 20c/kwH and will likely stay there for an extended period) or sensitivity when, for example, the price will be above 20c/kwH for only a short time

* General market information about the current and future state of the energy supply such as a power advisory

Once a user’s system is configured notifications can then be received in a multiple of formats depending on their individual requirements.

Dave Goulding, President and CEO of the IMO explains that, “Integrating this advanced technology into utilities like Milton Hydro can contribute to the success of the TDRP. The deadline for the next round of applications is December 1, 2004 and I would encourage any LDC wishing to apply to do so.”

Milton will be using easily identifiable symbols to help customers recall the market state. When the IMO issues a market notification the LDC’s will immediately provide this information to its customers plus the local media. This TVD driven 2-tier approach ensures the maximum number of people know of the state of the energy supply in the most expeditious manner. Through an integrated educational initiative, consumers will quickly learn what they can do to reduce load and save money as per the notifications issued by the IMO through TVD’s self-management program. Gaining key information concerning market status is as easy as accessing the utility’s Website.

“This is an outstanding opportunity for us to work along side one of our key technology partners to apply the solutions that allows both the energy consumer and utility to realize the true benefits of this vital part of our future. A company like ours couldn’t ask for a better application site than Milton Hydro,” states Jo Pitts, TVD’s Director of Business Development.

Jim Steele, CEO of Kinetiq remarks, “Our data management software is a perfect fit for the DSM/DR programs from this forward thinking energy provider. The combined application with the customer management technology from TVD will enable users to easily respond effectively and proactively in this constantly evolving market environment.”

Each participating customer will require a baseline data stream and a threshold price with a trigger point built in to create an event when pricing exceeds this limit. Customer input and the Data Management/Demand Response Settlement Process software tools from Kinetiq will provide this vital data. The modules store, manage and aggregate energy consumption, energy pricing and customer information. Mission critical tasks such as billing; contract management; wholesale and inter-company reconciliation; consumption and load analysis; and distribution network planning can also be performed.

To meet the strict requirements of Milton Hydro the Kinetiq software automatically performs periodical processing (at least once per month) in the following steps:

1. The appropriate energy price from the IMO is monitored and is used to create an event date. This hourly price causes an event date to be registered in the Settlement One database.

2. Baseline profiles are built daily and stored at the customer level as an hourly interval data stream, which can be viewed in Kinetiq’s Analyser or PowerView Web graphical analysis tools.

At the end of each month settlement files are built for both individual customers and the IMO. This process creates a separate file for individual settlement comprising of one file for each event date for the Accounts Payable or Billing system. A single IMO Summary file is built for the month documenting customer activity for each event date from which actual settlement amounts can be determined.

“We have been very impressed with the advanced technology, ease of installation and cost effectiveness of the TVD/Kinetiq solution,” says Don Thorne, President and CEO of Milton Hydro. “It will allow both the company and our customers to take full advantage, well into the future, of our DSM/DR programs as the energy market changes.”

About TVD [ ]

TVD Inc. is a world leader in the design, development and deployment of real-time outage, network and workforce operations solutions for Global Electric, Gas and Water markets. TVD’s products are reliable, cost-effective, scalable and highly adaptable and continue to prove their mettle in storm and other situations with companies in several countries around the globe. Headquartered in Auckland, New Zealand TVD has offices in Denver, Colorado and Toronto, Ontario.

About Kinetiq [ ]

Kinetiq is a wholly owned subsidiary of Spectrum Resources Ltd. of New Zealand (NZX: SPE). It specializes in mission-critical customer, contract and data management solutions for energy companies in challenging and changing deregulated, transitional, and regulated market environments. Kinetiq products are known for their robustness, ease of implementation and operation and low cost of ownership and are improving the fortunes of companies throughout the world.

About Milton Hydro [ ]

Milton Hydro Distribution is committed to providing an economical, safe and reliable supply of electricity to more than 43,000 customers. Located in southern Ontario it operates in one of the most weather-challenged environments on the continent. The utility remains a leader in innovation with a mandate to build a successful, for-profit business on behalf of the Town of Milton and will not compromise on delivering valued service or on its ability to ensure the needs of future generations.

About The Independent Electricity Market Operator [ ]

The Independent Electricity Market Operator is a not-for-profit corporate entity established in 1998 by the Government of Ontario to manage the electricity grid – directing the flow of electricity across the transmission system to meet the province’s power needs. The IMO balances the demand for electricity against available supply through the wholesale market.

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