[PPT] - Session 1: CHIEFS ROUNDTABLE The information contained in these PowerPoint Presentation

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Session 1:

CHIEFS ROUNDTABLE

The information contained in these presentations may be confidential and intended for this audience only.

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President & CEO

PAULA GOLD-WILLIAMS FRED BONEWELL, CSSO FELECIA ETHERIDGE, CCEO

DR. CRIS

EUGSTER, COO KAREN KIRWAN, CIO CAROLYN SHELLMAN, CLAO

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Chief Security & Safety Officer

FRED BONEWELL

Fred Bonewell during Storm Restoration in Victoria

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Chief Customer Engagement Officer

FELECIA ETHERIDGE

Felecia speaking to our employees about changing customer expectations at EmpowerU

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Chief Operating Officer

DR. CRIS EUGSTER
Dr. Cris Eugster touring

power generation fleet with Councilman John Courage

Councilman Courage, Dr. Cris Eugster, Jeff Kruse

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Chief Information Officer

KAREN KIRWAN

Karen speaking to our employees at the Security Summit.

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Chief Legal & Administrative Officer

CAROLYN SHELLMAN

Carolyn during our inaugural Future of Energy Symposium.

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PAULA GOLD- WILLIAMS

President & CEO

Paula during the annual safety kick off event.

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Session 2:

A VIEW OF THE INDUSTRY & OUR EVOLVING BUSINESS MODEL

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2nd Annual Future of Energy Symposium

Ralph Cavanagh Co-Director, Energy Program

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SLIDE 17 Energy Use per Unit (kWh per year) Price (2010$) Refrigerator Size (cubic feet)

SLIDE 18 Sources: EIA, Alliance to Save Energy, Association of Home Appliance Manufacturers, U.S. Census Bureau Note: For each model year, the calculation includes the average retail price for a new refrigerator amortized over the life of the refrigerator plus the average annual electricity cost of operating a new refrigerator in that year. The lifetime of the refrigerator and the price of electricity are assumed to be constant in real terms from 1972 to 2005.

The Cost of Refrigeration has Declined Since the Early 70’s*

$/ Cubi ubic Feet et / Year ar

2 4 6 8 10 12 14 16 $ / Cubic Feet / Year

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Home Idle Load: Devices Wasting Huge Amounts

f Electricity When Not in Active Use

NRDC Issue Paper, May 2015

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Thank you

SLIDE 21 12,800 13,000 13,200 13,400 13,600 13,800 14,000 14,200 14,400 14,600 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 KWH PER YEAR

Residential Power Use per CPS Energy Customer

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Session 3:

CUSTOMERS ARE OUR BEACON – THEY DEMAND & DESERVE THE BEST SERVICES

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E M P O W E R I N G & E N G A G I N G C U S T O M E R S

P R E S E N T E D B Y : Felecia Etheridge Chief Customer Engagement Officer FEBRUARY 27, 2018

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B Y T H E N U M B E R S

#

Largest Municipally Owned Electric and Gas Utility in the U.S. Solar Power Production in Texas; Seventh in the Nation Most Trusted Brand in the South Region by MSI Wind Power Production in Texas 75 + Years Owned by San Antonio T O P10 Engaged Residential Customer Relationship by MSI Years of Serving San Antonio

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B Y T H E N U M B E R S

98%

Billed through AMI Meters

805k 334k

Our Customers

58%

Online Accounts

92%

AMI Meters Installed

48%

Paperless Billing

1,515

f Service Area

SQ. MILES Electric Gas

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B Y T H E N U M B E R S

3100

E M P L O Y E E S

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P E O P L E F I R S T

CPS Energy’s employees are dedicated to providing world-class energy solutions to meet the diverse and unique needs of our customers, while acting as an economic engine to drive value and growth in our community.

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O U R M I S S I O N S T A T E M E N T :

E M P L O Y E E S C U S T O M E R S C O M M U N I T Y

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Ratepayers Customers Empowered & Informed Consumers

“Flip the Switch. Pay the Bill.” “Safe. Reliable. Secure.” “I Want It My Way. Now. ”

P A S T P R E S E N T F U T U R E

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Evolving the Customer Experience

C R E A T I N G I N T E N T I O N A L , C O N S I S T E N T E X P E R I E N C E S

1

“Taking it to the Streets”

3

Programs, Products & Services

2

New Energy Economy (NEE)

4

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S E L F - S E RV I C E

E V O L V I N G T H E C U S T O M E R E X P E R I E N C E

V I RT U A L E X P E R I E N C E S I - WA L K

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P R O G R A M S , P R O D U C T S & S E R V I C E S

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B E I N G M O B I L E A N D F L E X I B L E I S K E Y T O

E N G A G E M E N T.

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M O B I L E S U P P O RT C E N T E R ( M S C )

“ T A K I N G I T T O T H E S T R E E T S ”

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P A R T N E R S H I P S A R E K E Y , A N D T H E F O C U S I S

A LWAY S

O N T H E V A L U E T O T H E C U S T O M E R .

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N E W E N E R G Y E C O N O M Y

Launched in June 2011: Instrumental pathway to our generation goals:

renewable energy, energy efficiency & low-carbon generation.

Leverage Strategic Investments: To create jobs, economic development

& educational opportunities in community.

Fostering NEE Ecosystem Growth: To bring additional value to our local community

& establish SA as a hub for clean energy innovation.

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55K LEDs (light-emitting diodes)
Local HQ with manufacturing facility
Educational investments

N E W E N E R G Y E C O N O M Y P A R T N E R S

Permanent jobs
Capital investment
Educational

investments

Grid Optimization Program
Partner Solutions Testing &

Certification facility in SA

Permanent, high-tech jobs
Capital investment
Educational investments
Internships
700k electric smart meters
Local office
Permanent jobs
Educational investment

O U R N E E P A R T N E R S H A V E B R O U G H T M O R E T H A N 6 0 0 J O B S , $ 1 B I N E C O N O M I C I M P A C T F O R S A N A N T O N I O , & C O N T R I B U T E D $ 4 . 1 M T O L O C A L E D U C A T I O N

400 MW solar
200 MW cell & panel manufacturing plant
North American HQ for OCISP,

Mission Solar Energy and KACO

Educational investment
Local office
Energy efficiency programs
Local offices

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Ratepayers Customers Empowered & Informed Consumers

“Flip the Switch. Pay the Bill.” “Safe. Reliable. Secure.” “I Want It My Way. Now. ”

P A S T P R E S E N T F U T U R E

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T E C H N O L O G Y I S E V E R Y W H E R E

3.8 BILLION

u s e t h e i n t e r n e t

21 BILLION

d e v i c e s c o n n e c t e d b y 2 0 2 0

> 570 NEW WEBSITES

a r e c r e a t e d / m i n u t e

3.5 BILLION

s e a r c h e s o n G o o g l e / d a y

24 HOURS OF VIDEO

u p l o a d e d t o Yo u Tu b e / m i n u t e

YouTube: “Did You Know 2016/217” David S. Rose, Karl Fisch, Scott McLeod

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S O C I A L M E D I A - T W I T T E R

350 THOUSAND

tweets sent / minute

500 MILLION

tweets sent / day

YouTube: “Did You Know 2016/217” David S. Rose, Karl Fisch, Scott McLeod

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S O C I A L M E D I A - F A C E B O O K

2 BILLION

active Facebook users with an average of 155 FRIENDS

300 MILLION

photos uploaded / day to Facebook

1 in 7 divorces blamed on Facebook

YouTube: “Did You Know 2016/217” David S. Rose, Karl Fisch, Scott McLeod

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T H E A G E O F B I G D A T A

t e c h n i c a l i n f o r m a t i o n i s

DOUBLING EVERY 2 YEARS 90 PERCENT

f t h e w o r l d ’ s d a t a

h a s b e e n c r e a t e d i n t h e p a s t f e w y e a r s F o r s t u d e n t s s t a r t i n g a 4 - y e a r t e c h n i c a l d e g r e e , t h i s m e a n s h a l f o f w h a t t h e y l e a r n e d i n t h e i r f i r s t y e a r w i l l b e o u t d a t e d b y t h e i r

THIRD YEAR OF STUDY

W e a r e c u r r e n t l y p r e p a r i n g s t u d e n t s

FOR JOBS THAT DON’T EXIST u s i n g t e c h n o l o g i e s t h a t h a v e n ’ t b e e n i n v e n t e d

YouTube: “Did You Know 2016/217” David S. Rose, Karl Fisch, Scott McLeod

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T H E A G E O F B I G D A T A

‘Silver Surfers’ - SENIORS 50+ a r e u s i n g t h e i n t e r n e t 4 GENERATIONS

a r e w o r k i n g s i d e b y s i d e

TRADITIONALIST, “WRITE m e ” BABY BOOMERS, “CALL m e ” GEN X, “EMAIL m e ” MILLENNIALS, “TEXT m e ”

YouTube: “Did You Know 2016/217” David S. Rose, Karl Fisch, Scott McLeod

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T H E A G E O F B I G D A T A

A p p l e i P h o n e wa s i n v e n t e d 11 y e a r s a g o ,

>1.5 BILLION

p e o p l e n o w o wn a s m a r t p h o n e 250 MILLION

h o u r s o f T V s h o w s w a t c h e d o n N e t f l i x

4 THOUSAND

R o b o t s a r e n o w a c r o s s 2 0 A m a z o n w a r e h o u s e s

YouTube: “Did You Know 2016/217” David S. Rose, Karl Fisch, Scott McLeod

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T H E A G E O F B I G D A T A

ARTIFICIAL INTELLIGENCE

wi l l o u t p e r f o r m h u m a n s i n m a n y a c t i v i t i e s i n t h e n e x t 1 0 y e a r s

A r t i f i c i a l I n t e l l i g e n c e
R o b o t i c s
M a c h i n e L e a r n i n g
C h a t b o t s
V i r t u a l R e a l i t y
D e e p L e a r n i n g
D r o n e s
A u g m e n t e d R e a l i t y

YouTube: “Did You Know 2016/217” David S. Rose, Karl Fisch, Scott McLeod

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Connecting People – Not Technology

F U T U R E F O C U S 1

Easy, Smart and On-Demand

3

Right Customer, Right Product, Right Time and Relevant Message

2

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C O N N E C T I N G P E O P L E – N O T T E C H N O L O G Y

CPS Energy Grid 2.0 = 21st-Century Infrastructure

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Predicting and delivering personalized solutions before

they are needed or know its needed

Proactively serving up relevant information through

preferred channels based on customer patterns

Field personnel ‘knowing’ the customer and their DNA

before they roll onsite

R I G H T C U S T O M E R , P R O D U C T , T I M E A N D R E L E V A N T M E S S A G E

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Predictive Product Development
Autonomous Process Improvements
Virtual & Augmented Reality

Connections

Connecting Real-Time with FaceTime
Energy Scanning and Management
Marketplaces, Concierges, Subscriptions

and Bundles

E A S Y , S M A R T A N D O N - D E M A N D

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P E O P L E F I R S T

CPS Energy’s employees are dedicated to providing world-class energy solutions to meet the diverse and unique needs of our customers, while acting as an economic engine to drive value and growth in our community.

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O U R M I S S I O N S T A T E M E N T :

E M P L O Y E E S C U S T O M E R S C O M M U N I T Y

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P O W E R T O D R E A M

Our People First philosophy comes to life through our Power to Dream campaign. Because everyone has dreams, and those dreams deserve to see the light of day.

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Video

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Session 4:

ENERGY & ITS FOUNDATIONAL ROLE FOR OUR SMART CITY

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ENERGY & ITS FOUNDATIONAL ROLE FOR OUR SMART CITY

Dr. Cris Eugster

Chief Operating Officer CPS Energy

Dr. Massoud Amin

Director of the Technological Leadership Institute (TLI) Professor, Electrical & Computer Engineering (ECE), University of Minnesota Chairman, IEEE Smart Grid

Clint Vince

Chair, Denton’s Energy Sector Co-chair, Dentons' Global Energy Practice

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S. Massoud Amin, D.Sc.

Chairman, IEEE Smart Grid Fellow, IEEE and ASME Director & Honeywell/H.W. Sweatt Chair, Technological Leadership Institute Professor of Electrical & Computer Engineering, and University Distinguished Teaching Professor University of Minnesota, Minneapolis, USA

Challenging the Limits of Energy

Smart Grids for Smart Cities

Embrace Change - Power Progress

CPS Energy, 2nd Annual Energy Symposium February 27, 2018; Session 4: Energy & its Foundational Role for our Smart City

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Smart Grid for Smart Cities: Technological Innovations

Customer

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Cities are just the right scale for smart technologies to enable diverse value creation

Source: IBM, please also see Paul Romer’s Charter Cities Video: http://www.ted.com/talks/paul_romer.html

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Energy Transition – Slow but Steady Interface of Smart Grid and Microgrids

Smart Grid: Options, Costs and Benefits

Fossil Fuel
Long Distance Central Station
An Aging Infrastructure
Out of Capacity
Renewable Power
On-site
Zero Energy Building
Smart Grid

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Key Industry/Societal Trends

Transitioning from Devices/Systems to Holistic Solutions
Success = Technology, Standards, Policy
Grid Flexibility + Self Healing + Reconfigurable
Electrical Power Distribution Infrastructures Resiliency
Big Data, Analytics, Use of Social Media
IoT … Smart Cities, Smart Homes, Smart Buildings…
Convergence of IT and OT to Support Enterprise Data Management

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Microgrids

Technology Solution

Optimal dispatch of complex energy resources

Smart control system to optimize and manage generators, energy storage and loads featuring:

Optimal Dispatch
Supervisory Controls
Islanding/Tie-Line Controls

U90 Microgrid Controller

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Examples of SG Technologies & Systems

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The conference featured four parallel tracks:

H3O – Smart Home, Hospital, Hotel & Office
Microgrids, Rural Electrification and Renewables
Smart Cities
Humanitarian Impact of Smart Electricity

SLIDE 64 Source: Interview with Massoud Amin, “Upgrading the grid,” Nature, vol. 454, 570–573, 30 July 2008

Integrate microgrids, diverse generation and storage resources into a smart self-healing grid system

SLIDE 65 Source: Amin & Schewe, “Preventing Blackouts,” Scientific American, May 2007

Smart Self-Healing Grid

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I-35W bridge

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To improve the future and avoid a repetition of the past: Sensors built in to the I-35W bridge at less than 0.5% total cost by TLI alumni

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Technology is BIG Business

Technology drives over 60% of the U.S. GDP.

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Build Smarter, More Secure, Resilient, and Sustainable

Lifeline Infrastructures  Enable Smart Cities

Develop World-Class Human Capital
Create Jobs - Grow The Economy - Power Progress

Embrace Change?

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SMART CITY

Working Together To Develop A Connected San Antonio

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Session 5:

PHYSICAL & CYBER SECURITY NOW AND IN THE FUTURE

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PHYSICAL & CYBER SECURITY NOW AND IN THE FUTURE

Fred Bonewell Chief Security & Safety Officer CPS Energy

Dr. Jeffrey Addicott
St. Mary’s University

Ofir Hason CyberGym

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Fred’s Video

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LEGAL & POLICY ISSUES IN CYBER SECURITY

Dr. Jeffrey Addicott, Professor of Law & Director,

Center of Terrorism Law at St. Mary’s University School of Law.

Lt. Col. (US Army, ret.)
JD from the University of Alabama School of Law
LLM & SJD from the University of Virgina School of Law
“The constitutional Bill of Rights [is not] a suicide

pact.” 1

1 Justice Jackson, Terminiello v. City of Chicago, 337 U.S. 1, 37(1949)

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CRITICAL INFRASTRUCTURE CYBER SECURITY

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CYBER SECURITY LEGAL DEFENSE OF CYBER ATTACKS

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Session 6:

FIRESIDE CHAT

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