Echelon Signs Agreement to Supply NES Smart Metering System to Duke Energy

Press Release
Source: Echelon Corporation
On Monday August 10, 2009, 7:25 am EDT
SAN JOSE, Calif.--(BUSINESS WIRE)--Echelon Corporation (NASDAQ:ELON - News) announced today that it has entered into a long-term agreement with Duke Energy (NYSE:DUK - News), the nation???s third-largest electric utility, to supply Echelon???s Networked Energy Services (NES) system as a key part of Duke Energy???s smart grid program. Currently, Duke Energy provides electricity service to approximately 4 million customers in five states ??? North Carolina, South Carolina, Indiana, Ohio and Kentucky.

Duke Energy has received regulatory approval to deploy smart grid infrastructure in Ohio, and plans to launch a five-year mass deployment of smart grid technology later this year including more than 700,000 electric smart meters in Ohio. In Indiana, Duke Energy is seeking approval from the Indiana Utility Regulatory Commission to install smart grid technology, including approximately 800,000 smart meters. The company is also laying the groundwork to bring large-scale smart grid technology to the remaining three states it serves.

The initial order under this framework agreement totals approximately $15.8 million with deliveries expected to begin at the end of the quarter. Assuming full deployment of the NES system, the states of Ohio and Indiana represent a revenue opportunity to Echelon of over $150 million.

???An essential component of Duke Energy???s smart grid design is a scalable, open, interoperable network that supports not just the initial functions we are deploying today, but allows for additional devices and sensors to be attached to the network in the future,??? said Todd Arnold, Duke Energy???s senior vice president for smart grid and customer systems. ???Echelon???s metering infrastructure is a key enabler of that vision with a smart grid approach that includes smart meters, smart concentrators working in conjunction with the meters, and network operating system software.???

???Duke Energy has described the smart grid as ???one of the greatest advancements of the 21st century,?????? said Ken Oshman, chairman and CEO of Echelon. ???We whole-heartedly share this view. Our NES system embeds the power of control networks into a utility???s core asset ??? the electric grid ??? replacing the meters of the past with the intelligent devices of the future. They provide the intelligent ???end-points??? that not only monitor energy and the health of the grid, but also help utilities and their customers better understand and more efficiently manage energy consumption. We???re excited to be able to help Duke Energy lead the utility industry into the future.???

Also: Duke signs with Ambient
for US$10.7 million
worth of 'smart grid'
April 8, 2008

"Duke Energy signed with Ambient for a utility network to connect 57,000 Echelon power meters. The deal is for engineering and network support, the use of Ambient's network management system called AmbientNMS and for lots and lots of the firm's new X-2000 modular network node.
The new device is not a BPL box -- unless the utility client wants that. It's a modular networking node that can be enabled with BPL and/or WiFi, cellular and other wireless systems; fiber, and even low-bandwidth PLC such as Echelon's LonWorks, Ambient CEO John Joyce told us yesterday."