Business Opportunities in the Water/Wastewater Real-Time Automation & Controls Marketplace

Mike Smith, Principal, InfoNetrix LLC

Sunday, June 15, 2003 • Anaheim Marriott Suites

Anaheim, CA USA

Business Opportunities in the RTAC Marketplace

• Goals: Today 2002/2003

• Summary of Q4 2002 & Q1 2003 Study Results

• Year-To-Date Summary

• What’s Ahead

Goals: Today

• Provide Information Study Methodology Study Leadership and Team

• We Listen! Feedback on Business

Horizons Reports Suggestions for

Improvement• Data Format• Data included in database

Goals: 2002/2003

• Build the best team• Build the best project and

market data

Most accurate

Most timely

Most useful• Achieve 100% Client

Satisfaction• Work Hard & Have Fun• Be recognized as being the

best source for project and market data for our targeted markets

InfoNetrix Program Approach

Study Team & Methodology

• Study Team Mike Smith, Principal-in-Charge & Project Manager; Sacramento, CA Ed Finamore, PE, MBA, Project Manager

• Guy Anderson, Analyst; Jacksonville, FL

• Jerry Locsin, Analyst; San Francisco, CA

• Clare Wade, Analyst; Albuquerque, NM

• Study Methodology Build a team of utility IT/automation experts

• Team members have an average of 15+ years of utility IT/Automation experience

Build a database of all significant water/wastewater utilities in US/Canada• Database has most significant US utilities; data for Canadian utilities is difficult to gather• Interview coverage is focused on utilities with 30K+ metered customers

Leverage the skills, expertise, and hard work of the study team + the database to provide project opportunity data and market insights

We Listen!

• Business Horizons Reports Quarterly Format .pdf Deliverables Also available in MS Excel

spreadsheet format Additional information to be

included? Any current information that

is not useful? Additional service we

could/should provide?

Business Horizons Reports, Project Data Sheet Review

Project Data Sheet, Company Information

InfoNetrix Water/WasteWater MS Data Sheet

Company Information

Company ABCDE Municipal Utility Project #:Contact Mr. John Doe Title Caller: CWAAddress 123 Any Street Date Called 10/15/2002CityABCDE St/P AA W or WW? WPhone 111-111-1111 Ext: Zip 12345 Metered Cust. 800,000Fax 111-111-1112 Pump/Lift Sta 10Email jdoe@abcde.org Reservoirs 16

Storage Tanks 17Type MUN

Existing System Information

Existing System

Existing System SCADA # RTUs/PLCs 65Applications SCADA Cost $1,000 (000)

CostF/S F

Supplier Bristol Babcock Award Date 6/1/1991Operating Sys Win Security? N Implemented 6/1/1992

Consultant Malcolm Pirnie Con AwdDate 6/1/1991ConTasks Project Management Con Cost $75 (000)

Comm Type Leased Lines CommADateComm Supplier Comm Impl.

Comm Cost (000)Protocol(s)

Planned System Information

Planned System

Pl Op Sys OpenPlanned Sys SCADA Pl RTUs/PLCs 65Planned Appl SCADA, Pump Station Controls Budget $1,800 (000)

BudgetF/S SPoss Suppliers Open Spec Date 1/1/2004Poss Op Sys Open Pl Security?: y Bid Date 4/1/2004

Award Date 7/1/2004

PossConsultant Open PlConAdate 3/1/2003Pl ConTasks Specification, Project management PlConBudg $150 (000)

Pl Comm Type Open PCommADate 7/1/2004Pl Comm Sup Open Pl Comm Bud $150 (000)

Pl Protocol(s) Unknown

Comments:In process of evaluating SCADA for upgrade - The needs analysis is not completed yet to evaluate the full needs - is due in early 2003.

Summary of Y-T-D Results

• Total Calls Made By Size

• Total # of Projects Identified & $ Value Systems RTU/PLC Add-on Communications Consulting

Total Utilities Called, By Size(400 Total), Q4 2002 & Q1 2003

47%

28%

12%

10%3%

<20K

20 - 50K

50 - 100K

100 - 500K

>500K

Total Projects Identified, Q4 2002 + Q1 2003

#/Projects/# IEDs Total Value, $M

Systems 74/1,287 37.6

RTU/PLC Add-ons 19/384 5.1

Communications 64 3.7

Consulting 18 1.7

A Few Statistics About the Projects

• Largest System Project Identified $3.0 Million Large SCADA Upgrade

• Smallest System Project Identified $15K, Treatment Plant Controls Expansion

• Average $ Value of a System Project Mean = $508K Median = $250K

Supplier and Consultant Data

• The information presented in the next two slides is not intended to be a complete look at market share

• It does point out a few of the dynamics and directions in the Water/Wastewater RTAC market

• Thus, we qualify this data with a BIG **

Supplier Data Summary **

Supplier Mentions

21%

20%

12%11%5%

3%

3%

3%

3%

1%

1%

1%

16%

Wonderware

Rockwell

Intellution

Bristol B.

Gr. Schneider

GE

ABB

US Filter

Motorola

Telvent

HSQ

Transdyn

Other

Consultant Data Summary **

Consultant Mentions7%

4%

4%

3%

82%

Westin

EMA

B & V

M. Pirnie

Other

Summary Commentary & Trends

• Municipal Budgets Very selective use of shrinking capital budgets

• Increased Use of Fiber Networks Continues to also be a strong growth area Utilities continue to look to improve business processes

• Use of Consultants Continues to evolve; Very competitive

• Use of HMI Software Cost-effective alternative

• Security Budgetary implications Leveraging existing infrastructure

What’s Ahead in 2003

• 2003 Activities Will complete 1,000 US/Canadian utility interviews by

September 2003 Fall Electric RTAC Summit: September 7th; Dallas, Texas

(co-located with 2003 IEEE-PES T&D Conference)

• Q2 2003 Started March, 2003 Business Horizons™ Report to be delivered ~June 25, 2003 Will include results of approximately 300 utility surveys

What’s Ahead in 2004

• 2004 Summit Schedule Spring Electric RTAC: January (Orlando) Annual GMCS: April (Seattle) Water RTAC: June (Orlando) Fall Electric RTAC (Date/Location TBD) International Coverage

• UK/Europe• Other Regions?

New Studies• Utility Customer Care Solutions (UCCS): CIS, CRM, etc.• Intelligent Electronic Devices (IEDs): RTU, PLC, etc.

Thanks - Have a great week at AWWA!