VERMONT TRANSCO LLC

eEnergy Vermont – a project that makes Vermont’s grid smarter, more reliable, secure and affordable, while lowering Vermont’s carbon footprint. The project enhances Vermont’s job creation and retention efforts. This will be accomplished through grid automation, advanced metering and the technology it enables; and dynamic pricing and programs that lower peak electric loads and enhances the security and control of the state’s distribution and transmission facilities. eEnergy enhances Vermont’s ability to integrate new renewable and distributed energy opportunities. It enables future generations of Vermonters to consider using renewable-based electricity for energy applications that are totally provided by fossil fuels. eEnergy is an initiative of Vermonts distribution utilities, its energy efficiency utility and the state’s transmission utility Vermont Transco LLC anf the state. Vermont’s successful experience in energy projects, its small size, regulatory framework, and history of strong utility collaboration, uniquely position eEnergy Vermont to advance the goals established by the Smart Grid Investment Grant (SGIG) guidelines. Vermont’s long term vision is to: • Lower energy cost • Reduce CO2 emissions • Decrease fossil fuel use • Improved grid reliability and security • Expanded integrated and renewable energy • Enhanced customer and utility partnership to ensure efficient use of energy eEnergy project deliverables include: • Over 85% smart meters • Customer incentives for peak shaving • Customer empowered by display of usage and prices and home automation support • Statistically rigorous data from pricing, social networking, home automation trials and grid automation results reporting • Field testing Wi-Max technology as a precursor to a statewide standard The eEnergy Vermont Project is a set of inter-related initiatives that will be closely coordinated by the participating utilities. These initiatives will significantly improve the reliability and intelligence of the Vermont grid while fostering better coordination and management within the Vermont system and with the New England, New York, and Quebec systems with which the Vermont grid integrates. Throughout the Project, best practices developed by the Vermont utilities will be shared within Vermont and with the U.S. DOE. The integrated initiatives fall into the following topic areas as defined by the Funding Opportunity Announcement (“FOA”). • Automated Metering Infrastructure (“AMI”) and smart meters will create a technical infrastructure that will allow Vermont utilities to introduce new Critical Peak and Time of Use (“TOU”) dynamic pricing, and enhance existing Outage Management Systems (“OMS”). Vermont customers and utilities will be able to reduce peak consumption, improve system reliability, reduce carbon emissions, provide consumer-driven energy choices, and make electricity more affordable. • Customer Systems such as in-home displays and digitally controlled appliances will be deployed within Vermont to fundamentally change how customers manage their electricity. Adherence to industry standards will ensure interoperability and security across the entire electric distribution chain. • Electric Distribution and Transmission System Grid Automation will allow Vermont utilities to build a more reliable and secure grid that can automatically adjust and react to system conditions and better enable the integration of distributed generation.

Clarification of Codes