Additional Information Regarding Today�s News about Echelon and Duke Energy
January 16, 2008 What was announced? Echelon and Duke Energy announced today an expansion of the Duke Energy Utility of the Future project, one of the most advanced and innovative projects currently under way in the United States to add intelligence and automation to the electricity grid to help better manage supply and demand and improve customer service and delivery quality.
Why is this news important? Duke Energy is one of the largest utilities in the United States and has spent considerable effort rethinking what it means to operate an electric utility in the 21st century. Duke Energy�s goal is to define the infrastructure necessary to generate, deliver and use energy more efficiently and to provide their customers with the information and tools needed to allow them to make better energy decisions. We believe that this effort, which was started by Chairman, President and Chief Executive Officer Jim Rodgers and is led by David Mohler, vice president and chief technology officer at Duke Energy, represents a comprehensive view of how smart systems can transform the utility industry and as such represents an excellent model for others to adopt.
How large is this current project? Duke plans to deploy smart Networked Energy Services (NES) meters and related infrastructure to approximately 57,500 of its customers in three different service territories.
What is the revenue implication for Echelon? Echelon expects revenue for the current Utility of the Future shipments to be on the order of $6 million.
When will shipments start? Shipments are already under way.
What is the Utility of the Future program? Duke Energy�s long term vision is to transform the operation of its electric power grid by creating a reliable and scalable networked infrastructure capable of delivering and receiving information from intelligent devices distributed across its power systems, automating components of the distribution systems, and leveraging the linked networks for improved operational efficiencies and customer satisfaction. Duke Energy refers to this new networked infrastructure as the Utility of the Future (UoF) project.
How do the Smart Grid and Advanced Metering Infrastructure (AMI) relate to one another? Advanced Metering Infrastructure (AMI) is one component in the Smart Grid. Echelon�s NES system is designed to provide the core networking infrastructure of the smart grid by building on open standards to cost-effectively connect utilities and their customers over a highly reliable two-way network. NES meters, which are installed at each residence, are an integral part of this communications fabric. These meters also include a market-leading set of advanced functionality that goes beyond the billing-oriented features found in other meters to provide a range of information about the health, quality, and operation of the grid -- information that forms the underpinnings of the smart grid.
I wonder if Duke put the kabash on a full press release for some reason. Or maybe they want to release the news before echelon or something like that. Who freakin knows... we do know it's true though or it wouldn't be on the elon website.
How many customers does Duke Energy have? Duke Energy, one of the largest electric power companies in the United States, supplies and delivers energy to approximately 3.9 million U.S. customers.
What experience does Echelon have in metering applications? Echelon is the world�s leading supplier of networking infrastructure to advanced metering applications. Over 27 million meters in Italy are networked using the company�s power line communications and data concentrator products. Additional NES customers include utilities around the globe, such as Integral Energy and Powercor in Australia, Linzagstrom in Austria, ELRO in Denmark, Nuon in the Netherlands, ENERGOAUDITCONTROL in Russia, and E.ON and Vattenfall in Sweden. Echelon has shipped nearly one million NES meters to utilities throughout the world. All of these meters are based on the same core networking and metering standards being used by Duke Energy.
How do Echelon�s products enable a wider range of energy efficient applications? Echelon�s products and technologies are used smart buildings worldwide where, in fact, they have become an accepted and widely adopted standard for control systems in buildings. In homes, our technology is a home control standard in the US and an intelligent community standard in China. Our Digital Home� Alliance is a group of companies that is bringing control applications and energy aware home environments to market through smart appliances and devices. Echelon�s technology is also emerging as the leader in managed street lighting applications and an enabler of demand response programs.
Every building, home, factory, and control application using our technology has an embedded energy management system built-in. These systems are key to more efficient use of energy and are the logical extension of the smart grid beyond the meter.