04/13/23 1

Broadband over PowerlineAn Emerging Market Opportunity

Doug McMurrayManager – Business Developmentdmcmurray@idacomm.com

04/13/23 2

Presentation AgendaI. IDACOMM OverviewII. Introduction to BPLIII. Regulatory StatusIV. BPL Market

ApplicationsIV. BPL BenefitsV. Conclusion

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IDACOMM Background• IDACOMM is the non-regulated

subsidiary of IDACORP (NYSE: IDA)

• Operates and Manages Multiple Networks

– Fiber/Fixed Wireless– 30 DSL Markets– Existing BPL Deployments

• Scalable Centralized Operations– Marketing and customer support– Technical Support & Network

Operations

• Experienced Senior Management Team

– Fortune 500 – Entrepreneurial/ IPO/ M&A– Emerging Technology Deployment– Fiber Network Design and Management– Call Center Operations– Utility Financial Management– Regulatory/ PUC/ FCC/ FERC Experience– Complex System Integration

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IDACOMM Business Organization

Regulatory Expertise – FCC, PUC, FERC, NARUC, EEI, WEILicensed Facility Based CLEC (Multiple States)

OSS/BSS – Back office Integration – Branded Customer Support, Unified Billing, Technical Support, Network Operations Center

• Fiber Optic CLEC

• Metro Area Fiber Networks

• 36 Customers– Fortune 1000, Carrier &

Govt

• Existing Product Lines– Fiber to Anchor Tenant

• New Product Lines– Business Voice – Voice over IP– QOS, LNP, E911, 411– Integrated Voice & Data

• Operating Since 1985

• Broadband ISP – Retail Channel

• 35,000 Customers– Residential & Enterprise

• Product Lines– DSL / ATM / Frame Relay– Wireless & Dial up– Hosting– Wholesale (Back Office)– Billing, Customer Care– ISP Marketing & Operations

• Operating Since 1993

• BPL Services LLC• Technical & Market Trials

– Idaho Power Company– Center Point Energy– TXU Electric Delivery

• Vendor Relationships– Ambient | Amperion– Mitsubishi | Motorola

• Professional Services– Network Design & Deployment– BPL & IP Integration

• Strategic Partnerships

– IBM | EarthLink

– Broadsoft | Cisco

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Broadband Over Powerline (BPL)• It’s Broadband Technology that uses “Existing Utility Electric

Wires” born in the 1950’s as PLC (Power Line Carrier)

• Most Utilities can leverage their networks to create new services and revenues

• The FCC and PUC’s are fully supporting BPL as a Direct Competitor to Cable and DSL – FCC Report and Order, October 14, 2004– FERC Supports FCC, encouraging regulated & non-

regulated solutions– Proposed UPLC Managing National BPL Data Base– NARUC BPL Task Force issued White Paper, February 15,

2005

• IDACOMM is an Emerging BPL Technology & Market launch leader focused on a select few Utility Partners in North America

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Utility Interest in BPL (Source UPLC)

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IDACOMM Service Delivery Architecture

Voice Data Bundle $30-$40 mo. Video in 2005.200 mbps Medium Voltage 25 mbps Low Voltage

IDACOMM

OC-48 SONET Core

IDACOMM Network Operations CenterNetwork Element Management | Network Security Management | Outage Response

Video & VODVoice (Local & Long Distance)Data & Internet

ISP Backoffice

Authentication

Email Systems

Web Systems

Billing & Credit

Voice Gateway

Soft Switch

Feature Server

911 / 411 Services

Long Distance Carrier

VOD Server

Video Encoder

Application Server

Digital Rights Management

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Broadband Over Powerline

IDACOMMMetro Fiber Ring

Architecture

Internet Data Video

Each site supports multiple customers

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IDACOMM is diligently working within the industry to educate, inform, develop standards, and lead the successful creation of a new industry and market.

Creating a New Industry

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BPL Regulatory Status • FCC

– New rules for BPL operations promote deployment while protecting radio licensees from interference

• BPL is an unlicensed operation• Low probability of interference from BPL

operating at existing emission limits• Safeguards established to mitigate

interference, if it occurs.• Measurement guidelines: consistent and

repeatable – FERC and NTIA strongly support FCC rules– FCC deliberately avoids regulation of BPL

services and infrastructure.– Petitions for Reconsideration pending

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BPL Regulatory Status• States

– NARUC BPL Task Force Report identifies regulatory issues; advocates light-handed regulation

• Cost & Revenue Allocation– Incremental v. Fully Allocated Costs

• Affiliate Transactions– Structural or functional separation

• Easement & Rights of Way– Studying possible best practices

• Pole Attachments– Assessing access/rents

• Open Access– Negotiated access for nascent industry

• USF and other Telephone Regulations– Supports technology neutral regulations, if they

apply at all.– Some states introduce pro-BPL legislation,

clarifying utility regulations– Anti-muni broadband bills could restrict BPL

• PA, FL, CO, IA, NE, TX

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Broadband Policy Trends• Regulatory Classification

– Supreme Court: Is cable modem a telecom or information service?

– FCC: Are all wireline broadband internet access platforms information services?

• Jurisdiction– FCC: Should states have jurisdiction over broadband, VoIP?– Congress: Should states/municipalities have jurisdiction

over broadband/IPTV• IP Enabled Services

– FCC: Broad proceeding examines all issues for everything IP.

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BPL Opportunity

• High speed data• VoIP & VoD• Home energy

management• Home Security &

Networking• Smart appliance • Smart Home Networks• Video conferencing

Retail Applications

• Intelligent grid• Homeland Security &

Monitoring• Automatic meter reading• Capacitor control• Demand prediction• Distribution transformer

overload analysis• Proactive Customer

Notification

Utility Applications

BPL, Fiber,Wireless, etc.Infrastructure

Utility Service TerritoryAn All IP Network

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Consumer Value

BPL Access vs. DSL• BPL – Up to 4x faster

– Current Platform (3 – 6 MB)– Next Generation (16 – 22 MB)

• Price Differential – Up to 40% less expensive on

Data– 1 MB for $24.95– ISP is included in base price!

• Bundle Services (Data & VoIP)– BPL = $34.95 - $44.95– DSL = $54.95 - $64.95

BPL Access vs. Cable• Bandwidth Scalability

– 1 to 10 Mbps solutions (2x Cable)

• Price Differential– $24.95 vs. $39.95 to $54.95– ISP Services already in base

price!

• Bundled Services– Carrier Class Voice Services– Quadruple Play vs. Triple Play

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BPL Internal ApplicationsOverview

On the Grid• Asset Management

– Power outage notification

– Predictive maintenance• Systems Optimization

– Enhanced SCADA

At the Premises• Advanced Metering

– AMR– Remote

Connect/Disconnect

• Load Management– Energy management

• Automatic meter reading• Capacitor control• Copper wire system replacement• Demand prediction• Detection and diagnosis of events at

capacitors and regulators• Distribution transformer overload

analysis• Line testing• Outage localization and fault

characterization• Phase loss detection• Power quality monitoring• Safety check for isolated circuits• SCADA delivery• Substation monitoring• URD outage diagnosis

Utility Applications

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At the Premises ApplicationsKey Drivers

• AMR– Improved demand side information and consumer feedback– Regulators desire more reliability and better demand

management• Load Mgmt

– Energy costs spiking– LM technology maturing and equipment costs decreasing – Environmental issues (e.g., green power) – Good business and good PR with the communities that

utilities serve.

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On the Grid ApplicationsKey Drivers cont’d

• Asset Management– Northeast Blackout

• Reliability, maintenance– Stray voltage

• Systems Optimization– Visionary smart grid efforts by EPRI and CEA– Enormous potential cost-savings opportunity from

these applications

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The Value of AMR

Revenue Enhancement

Val

ue

in

Do

llar

s

Uses of Common Information

Tradition AMR

Intelligent Grid w/BPL

Cost Reduction

AndImprovedCustomer

Satisfaction

Traditionally, the business case for AMR was too narrowly focused. • Largely revenue cycle services oriented• Predominately focused on meter reading cost reduction• Remote connect/disconnect

• Demand Forecasting• Load Shedding• Time of use billing• Theft detection

• Load profiling• Outage detection• Detection/diagnosis of events at capacitors and regulators• SCADA delivery• Microwave replacement

• Revenue generating services (e.g. Security, etc.)• Deploy demand monitoring/control within home• Support for distributed generation

Several New Forces are Impacting AMR Business Value:

Energy and Home Control Solutions

Distribution Asset Optimization

Demand Response Mgt.

RevenueCycleServices

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Key Drivers Going Forward

• Internal Applications– Increasingly important for the business case– Gating factor for utilities

• Standards– Competing considerations:

• Speed to market • Certainty• Safety• Future-proofing technology

– Efforts underway• IEEE• HomePlug• Universal Powerline Alliance• CE Powerline Alliance

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Industry Business Models for Utility’s

Utility Net Income Share

Capital Contribution Scale

Landlord

Model

$ - M $MM $ + M

8%

15%

25%

• 10 Yr Exclusive Agreements (Renewable)

• IDACOMM is managing partner

• IDACOMM will build and finance

Developer

Model

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Utility ApplicationsUtility Applications

Operational Efficiencies

Reduced Expenses

Improved SAIDI/SAIFI

Improved Outage Management

Maintenance Savings

Pervasive IP Network

Shareholder BenefitShareholder Benefit

Share of Net Income

Community Stewards

Consumer BenefitConsumer Benefit

Additional Choices/Competition

More Flexibility

Rate Payer ReliefRate Payer Relief

Access Fees

Pole Attachment Fees

Installation Fees

Electrical Usage Fees

Community Stewardship

Benefits to the Utility and Consumer are Benefits to the Utility and Consumer are provided across various stakeholder groupsprovided across various stakeholder groups

BPL Benefits

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Conclusions

• BPL in the U.S. continues to grow with support from public policy makers.

• Internal applications are in development and will be critical to utility adoption and widespread deployment of BPL

• Standards efforts coalescing under IEEE• BPL is a viable and affordable technology• Emerging Technology – Regulate with a delicate

hand• Win/Win situation

– All parties involved benefit…Rate Payer, Utility and Regulatory