Commercially Confidential

Smart Steps to Smart Gas Networks…

Gas System and Solution Overview

Smart Gas Metering/Advanced Metering
Infrastructure

PROPRIETARY AND CONFIDENTIAL

This document and the information therein, are the exclusive property of POWERCOM Ltd.
and shall not be disclosed, in whole or in part, to any third party or utilized for any purpose
other than the express purpose for which it has been provided.

All contents of this document are Copyright © 2012 POWERCOM Ltd. All rights reserved.

POWERCOM Building A Ramat Hakovesh, Israel 44930 Tel: +972 9 7907900

E-mail: info@powercom.co.il Website:
www.powercom.co.il

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Contents
1.0 About POWERCOM Ltd. ....................................................................................................... 3
2.0 System Overview ................................................................................................................. 4
3.0 Technical Scope ................................................................................................................... 8

Table of Figures
FIGURE 1 - SYSTEM CONCEPT ................................................................................................................................. 4
FIGURE 2 – CUSTOMER USER INTERFACE .................................................................................................................. 7
FIGURE 3 – CONSUMPTION COMPARISON GRAPH ....................................................................................................... 7
FIGURE 4 – OUTSTANDING ALERTS ........................................................................................................................ 16
FIGURE 5 – CONSUMPTION PROFILES ..................................................................................................................... 17

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1.0 About POWERCOM Ltd.

POWERCOM Ltd. (“POWERCOM” or “the Company”) is positioned as a world-class

technology leader in the fixed network, remote and control metering system industry. The
Company is engaged in developing, manufacturing and marketing a complete smart grid
solution for electricity, water and gas utilities with a range of superior benefits provided by its
unique and patented technology.

The Company’s Advanced Meter Infrastructure (AMI) portfolio is an end-to-end solution that
comprises of a data management system housed at utilities data centres; smart meters,
concentrators, and repeaters; as well as in-home displays. The system utilizes all available
open protocol communication such as PLC, RF, GPRS, and Ethernet. As the developer of
the entire solution, POWERCOM’s key advantage includes is its flexibility and timely
response to any specific customer request and cost control that enables the utilties to
minimize the cost of upgrading the gas system into the most advanced smart gas grid
platform.

POWERCOM has received extensive recognition for its exceptional communication

performance, having achieved 99%+ real-time communications reliability. The breakthrough
was achieved by developing RF and PLC based bi-directional communications layers,
enabling readings and control of any end-point in seconds.

Founded in 2006 by the former “Flextronics Design” team, POWERCOM’s corporate

headquarters are based in Israel with subsidiary companies, regional headquarters and local
offices in India, Hong Kong, Portugal and South Africa.

1.1 Leading Customers

POWERCOM has proven its superior technology through installations with utilities across
the globe through a series of very successful installations with leading utilities in more than
12 countries within different environments and installations. The data from these installations
show that the investment payback period for the utility is very short (in some cases a few
months).

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2.0 System Overview

Worldwide recognition has developed for the real need to "smartly" manage the gas
network. This is a "network" that can monitor events in real-time, control every part of the
gas network and be able to send automatic alerts to the system operators. Powercom
increases intelligence throughout the network and performs all the requirements of a "Smart
Gas Network" AMI solution.

The solution remotely monitors and controls the flow, and pressure throughout the gas
network. Based on a fixed network 2-way unlicensed RF communication system (with 99%+
reliability), the system is an “end-to-end” platform which incorporates state-of-the-art smart
gas meters, communications network, user friendly central software system, and in-home
displays, all in a flexible, interoperable open platform which can be connected to third party
suppliers.

This system will provide a range of functionality such as: efficient handling of remote meter
readings, reduction in non-revenue gas (identification and location of gas loss & pipe burst
within the hour), customer access to consumption data, as well as gas demand forecasting.

Figure 1 - System Concept

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The Smart Grid AMI solution is ready for expansion with additional system elements to
transmit the real-time consumption information to the consumer via RF to In-Home Display
(IHD) devices.

2.1 System Advantages

2.1.1 Automatic Detection and Alerts (within the hour) of Pipe Bursts, Leakage &
Theft

With POWERCOM’s fixed monitoring network, utilities receive information within the hour on
leakages as well as exceptional events such as bursts in the pipes or failure of other
additional units, providing near real time notification for rapid response. Alert notifications
(including information on the location of the event - area/neighborhood/ dwelling) are
automatically programmed into the system to send an SMS or email.

The smart meters identify, report, as well as protect against tamper attempts. In such events
an automated SMS/Email is sent to the nominated system operator.

The network administrator can receive information on losses in each sector by cubic meter
and the financial impact can be calculated in order to receive an accurate assessment of the
feasibility to perform routine maintenance or invest in replacing infrastructure.

The system architecture allows synchronised hourly readings from ALL the gas meters at the
same point in time thus enabling detection of leaks or gas pipe bursts at a higher degree of
accuracy.

By installing a master gas meter at the entrance of the network and at various junctions, all
the gas meters under the corresponding heirarchy report total consumption in order for the
system to continuously monitor, calculate and report any un-normative profiles.

In addition, by calculating the gas loss, the distributor may be able to pay the supplier only
for the real consumption.

2.1.2 Control & Monitor Essential Elements in the Gas Network

Thanks to the two-way control system, the system operator can remotely control with a
click of a button from the central control panel software, or automated through a
configured process: flow, pumps, pressure controllers, and valves across the gas
network.

Each meter can include a control valve that can be remotely controlled and allows the
disconnection to the gas flow to a specific customer in real time.

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The possibility exists for interfacing between the supervision and control systems and the
area pressure system, while receiving data on incoming and outgoing pressure.

2.1.3 Reliable and Low Cost Communication

A major advantage of the proposed solution is the unique two-way radio frequency (RF)
communication technology developed by POWERCOM. It has the ability to transmit and
receive data between any smart gas meter and the control room in a matter of seconds.
POWERCOM’s RF protocol enables communication to long distances at 99%+ success.

Using POWERCOM’s RF communication has the following benefits:

• Allows communication over unlicensed RF networks hence a reduction in costs.
• Remotely upgrade firmware - the smart meter software can be upgraded via the
central office software.
• Each Powercom concentrator (aggregator) can communicate with more than 50,000
meters.
• The system is plug & play – simply plug in the meter, and confirm communication
with a hand-held device.

2.1.4 Interoperability

The POWERCOM solution is a based on a flexible standards based architecture utilizing

open protocols enabling interoperability with 3rd. party meters and sensors and integration
with ERP and billing software. POWERCOM solutions are based on open APIs allowing
developers’ access to modify the solutions according to their needs.

2.1.5 Customer Engagement & Satisfaction

The customer has access to bills and real-time consumption data (in a variety of time
intervals) via the internet portal that is part of the MDM software. Each consumer is issued
with a security protected username and password. The system has the ability to provide
automatic email/SMS notifications to the user, triggered when user specified events occur
such as leakages, or when certain consumtion threshholds are reached.

With the addition of low-cost In Home Devices (smart pad, RF dongle for PCs, TV Unit) that
the company has developed, the consumers can receive real-time complete consumption
information (including historical data). The TV unit also has the capability to allow the
customers to enter their pre-payment tokens.

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Figure 2 – Customer User Interface

Figure 3 – Consumption Comparison Graph

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2.1.6 Accurate and Long Life

POWERCOM’s smart gas meter registers have a sophisticated algorythm protocol that
enables low-energy consumption. The smart register batteries are able to achieve a
useable life expectancy of over 10 years.

2.1.7 Retrofitting of Existing Mechanical Meter Bodies into Smart Meters

Powercom provides a smart register to suit existing mechanical meters. By installing the
smart register, existing meters are upgraded to perform remote readings and control. The
POWERCOM system can support the pulse counting output of any manufacturer.

2.1.8 Multi-Utility

When coupled with a POWERCOM smart electricity meter, the signal from the smart gas
meter can be carried along POWERCOM’s PLC network. The solution can also integrate
and manage electricity, water and gas metering in a single system. This facilitates data
aggregation in order to provide a Single Point-Multi Utility Metering & Billing solution.

3. Technical Scope

This section describes the technical scope of the PowerCom Smart Gas Metering System
based on the most advanced AMI/Smart Grid platform. One of POWERCOM’s key
advantages in being the in-house software and hardware developer of the whole system is
its flexibility and timely response to any specific customer request.

3.1. Smart Gas Meter Register

POWERCOM can supply the smart register to suit various meters and various output pulses
for use use in urban, suburban and rural environments. The Smart Gas Meter Registers
communicate by two-way RF to the repeaters according to a star network methodology.

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With 6 inputs the smart registers can be used as a tranceiver to read and transmit pulses
from other existing gas meters.

The meter keeps the customer contract details and enables operation according to this
profile. All meters are Multi-Tariff (TOU and step tariff) and can include a remote shut-off
valve. The operators can configure the meters remotely to switch between credit and
prepayment, as well as performs additional tasks such as enabling the system operators to
offer emergency credit to the customers.

Smart Gas Meter Specifications

Frequency Range 860Mhz – 920Mhz ISM
Bandwidth 40Khz
Max Power Transmission 20dBm (lower power optional)
RF Sensitivity -121dBm
Data Rate 76.8 kbps
Modulation Option of: FSK, GFSK, OOK, or 2FSK
Transmission Distance Up to 2Klm (line of sight)
Automatic Alerts Leakage, tampering, low battery, unauthorized
command, fault detected during automatic self-
testing.
Display 7 digit Primary read, 4 digit Secondary read
alarm status (on/off), reading total, reading for
each tariff (with pressing of scroll button)
Battery Lifetime Longer than 10 years
Power Source Battery
Environmental Protection IP68
Operating Temp. -40°c to +85°c
Operating Humidity 5 to 95% non-condensing relative humidity
Disconnection of Meter From remote command by the control center
software.
Data Logging Intervals Programmable from 30 seconds to 1 day
Remote Configuration of All Parameters All parameters can be remotely configured by
control center software
Product Identification Numeric and bar-coded - module type and serial
number
Data integrity Verified in every message
Clock Synchronization End unit clock synchronization every transmission.
Clock Drift Clock synchronization of ~0.1 sec per month
Multi-Tariff TOU, or step-tariff incl. holidays, weekends, and
several tariffs programmable per day.

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Incremental Usage Count Protection Usage count cannot be modified, and is not
resettable. Non-volatile flash memory stores
information indefinitely. In the event of no
power, the reading total is securely stored.
Automatic Self-Testing Automatic self-test once a day. Any malfunctions
are detected and generates an alarm to the
central office system. Testing includes
exceptional monthly deviation calculation.
Remote Firmware Update While updating the firmware the consumption
counting continues without interruption.
Meter Memory Stores last 30 days with interval of 1 hour
(remotely configurable up to 5 minute intervals)

Certifications In process

3.2 Repeater

With its long-range wireless communication capabtility, the POWERCOM RF repeater paves a
smooth 2-way data path extending the signal range between the meter end-points and the
concentrator. The Repeaters have two RF channels – one for communicating to the Smart Gas
Meters, and othe other to communicate with the Concentrator. They operate acording to a
mesh network methodology. The repeaters are located in an elevated location, usually affixed
to the top of an existing pole. They consume ultra-low-power and are powered by either direct
current or integrated with an alternative energy source such as PV panel, together with
rechargeable back-up batteries.

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Repeater Specifications
Frequency Range 240Mhz – 930Mhz (2 bands)
Bandwidth 40Khz
Max Power Transmission Up to 20dbM
Transmission Distance Up to 2Klm line of sight
Environmental Protection IP68
Unit Life Time Up to 20 years
Readings Backlog Storage 30 days
Operating Temp. -40°c to +85°c
Operating Humidity 5 to 95% noncondensing relative humidity
Number of Smart Meters Capable of 1,000
Communicating With
Sensitivity -121dBm
Backup Battery Capacity 5 days
Modulation Option of: FSK, GFSK, OOK, or 2FSK
Frequency Deviation 100 kHz
Bit Rate (Net) 76.8 kbps
Storage 0.5Mb non-volatile memory
Frequency Stability (Including Initial Stability, <20 ppm
Temperature and Aging)
Product Identification Numeric and bar
code serial number
Power Source 120-240V AC, auto-ranging.
Or solar power configuration
Power consumption: 5 Watts typical
Data Integrity Verified in every message

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3.3 Concentrator

The Concentrator is a Data Collection Concentrator (DCU) that acts as a smart gateway
between the Repeaters/Meters and the Central Office Software (MDM – Meter Data
Management). It offers full system flexibility as it is based on a standard PC computer with
additional communications and built in redundancy.

The unit is responsible for data acquisition, processing, storing, and recording data from the
Meters/Repeaters and the remote control server. The Concentrator also features automatic
detection of meters and repeaters, on demand reading, meter supervision, tampering
notification, etc. It continually checks the network quality and the meter functionality. The
Concentrator firmware supports remote upgrade and performs manual and automatic tasks,
predefined in the central software. The Concentrator supports Multi-Utility metering end
points as water, gas, heat, and electricity. The concentrators are engineered in an open
platform that allows communication with Repeaters and Smart Meters or devices from
different manufacturers. The Concentrators are typically located in doors and connected to
mains power.

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Concentrator Specifications
Communication with the Repeaters/Meters RF 240Mhz – 930Mhz (2 bands)
Communication with the Central Office GPRS or LAN, with built in redundancy.
Software (MDM – Meter Data management)
Optional Communications Supported Serial, USB, LAN-TCP/IP, PLC, and IR, IPv6 over
fiber optic, WiMax
Maximum geographic footprint that a single Up to 2 KM
Concentrator can support (under typical
operating conditions, based on broadcast range
or signal strength)
Maximum number of “layers” of repeaters that 5
can be reasonably supported
Communications network topology Dynamic. Within seconds reconfiguration occurs,
and this frequency can be customized. The
meters communicate to another concentrator
automatically if the topology is changed.
Protocol Conversion Between Up-Stream & Open protocol
Down-Stream (pre-processing or consolidating
data or translating between protocols)
Virtual Access Control Incl. password, permission levels security logging
of access to the concentrator.
Backup and Storage Up to 2 hours operating duration on backup
battery. Storage 3 months – 1 year (according to
readings interval)
Expected Life Time 20 years
Readings Backlog Storage Three months of all meter readings in 15-minute
intervals.
Operating Temp. -10°c to +75°c
Number of Smart Meters Capable of >50,000
Communicating With
Clock Synchronization Mechanism for server to distribute clock
synchronization to all network units including
all end meters. Accuracy in micro seconds.
Data Compression DES
Lightning Protections EMP Protector (50 Ohm;300W)
Product Identification Numeric and bar code serial number

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3.4 Meter Data Management System (MDM)

3.4.1 Overview

POWERCOM’s Meter Data Management System (MDM) software offers full capabilities to
any utility for managing, controlling, monitoring and interfacing to smart metering/smart grid
applications. It is a multi-channel, multi-protocol, multi-lingual, multi-utility system with robust
database centers, and state of the art telecommunication network interfaces, which enables
high data rate collection for large scale smart meter deployments.

The system brings a solution to the overall supply chain, supporting collection and control of
data from various sources, generation of reports, analytics, import and export of data, and
performance of regular operations of the system. It also allows the consumer to view usage
data through an internet portal.

The central system is an internet/intranet based application that allows secure control from
any computer with internet access. Reports and values may be exported in many formats
and graphic displays. It provides measurement results according to various levels - individual
customers; substations; grouped areas; etc.

The system offers the following core functionalities:

1. Automatic Data Collection: Storing, validating and archiving all meter data,
the system is scalable to handle mass volumes of subscribers.

2. Automation of Tasks: Creating automatic task lists, and automatic alert

notifications. A basic billing module is also included.

3. Remote Meter Management: The system allows the operator to manage

any parameter within the smart end points, including application of complex
tariff structure, setting maximum demand, etc.

4. Smart Grid Management – Enabling forecasting, load management and

customer portal remote access. Assist with identification of outages and
generate load profiles.

5. Administration of Server Database: Used for system validation, reporting,

control and archiving.

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POWERCOM’s MDM provides the data in order for utilities to forecast consumption, and
effectively plan infrastructure upgrades. Planned maintenance can be forecasted based on
the historical and modelled usage data.

A native 32-bit application provides all current Windows operational and connectivity options
and decreases the learning curve.

3.3.2. Flexible and Scalable Open Architecture

The system imports interval data, waveforms, PQ events and more, from multiple utility
devices (electricity, water and gas) and 3rd party meter vendors. Data is synchronized
with industry-standard SQL Server and Oracle databases allowing data exchange
through API with other information systems such as:

• GPS and GIS • SCADA/DMS feeding

• CRM and Billing • Power and energy balancing

• Operations (Work Order • ISO/RTO

Management System)

• ERP Software – (i.e. SAP, Priority) • Customer information systems (CIS)

3.3.3. Exception Management and Workflow

The system automatically and continually measures the network for un-normative
consumption behavior (relating to individual meters, and meter groups). Fully customizable
algorithm alert notifications are programmed into the system to send an automatic
SMS/Fax/Email to the selected users. All forms of message delivery are set according to the
level of urgency. The network administrators receive additional information detailing the
structure of the communication network, technical data, system component faults, statistical
data, and the status of faults handling in order to manage the gas network intelligently.

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Figure 4 – Outstanding Alerts

3.3.4 Advanced Billing

An essential task of the MDM is automatic provision of measurement results to a 3rd party
billing software thereby accelerating the issuing of invoices and reducing the collection
period. Monthly billing calculations are transferred to the billing software one hour after the
end of the month, ready for sending bills on the 1st day of the month. Error free information
accuracy is assured by data validation and verification modules.

3.3.5. Permission Levels

The system allows secure access via the Web to all users with defined levels of permission.
It is designed with full authorization control of functional objects and users.

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Figure 8 – System Administrator Log-In

Figure 5 – Consumption Profiles

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