Title

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Analyst Presentation November 20081
Cyber-Security Interoperability Breakout -
Michelle Mindala-Freeman National Town Meeting
July 14, 2009
Confidential Company Overview Update
DRAFT November 2008
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Introduction

• Many of LandisGyr customers have been early
  adopters of intelligent, automated metering
  systems
• We design smart grid solutions for these
  customers prospects that meet operational
  financial objectives and consumers needs
• We believe interoperability isn't an end its
  an process that requires diligence in design
  implementation to deliver real value
• Security is paramount however, delivering a
  secure smart grid is a journeyperhaps without a
  final destination
• Our core approach is to deliver the right
  building blocks for an interoperable and secure
  smart grid rapidly delivery technology at the
  pace of value - value to the utility, to the
  consumers and to this growing market

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LandisGyr where we are the smart grid

• 5,000 people in 30 countries with 1.3B in
  sales.
• Over 1B invested in more than a dozen companies
• 15years of fixed network deployment and
  measurement automation experience
• Global leader in metering PGE, PEPCO, SMUD,
  E.ON, CHED
• Leader in fixed networks - 20M embedded
  endpoints - Oncor, Austin Energy, AEP Texas,
  Fortis Alberta

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Interoperability a means or an end?

• A smart grid will employ real-time, two-way
  communication technologies to allow users to
  connect directly with power suppliers. The
  development of the grid will create jobs and spur
  the development of innovative products that can
  be exported.
• The greatest benefit from the smart grid will be
  interoperability that will open up every aspect
  of the generation, distribution, and use of
  energy to innovation.

• Products/ Services
• Improved Competition

• Time to Market
• Customer Value

Source NIST Interim SG Standards June 09
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Interoperability what can we learn?

• Internet analogy
• Telecom analogy
• Interoperability ? Plug and Play
• Specifications ? Uniformity
• Sameness ? Value

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How can we move forward faster?

• Drive, not stall, deployments
• Leverage upgradability
• Value to Consumers
• Value between Systems
• Value within the System
• Scale with International Standards
• Flexibility for different Utility conditions

• Stay focused on drivers
• Prioritize - set the value pace
• Allow market forces to work

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How is LandisGyr approaching Interoperability?

• Develop for Value 1st --- Interoperability at
  Head-End and HAN
• Protect for the Future -- Secure upgradability
• Meter, Comms HAN
• Create Scale
• Supporting International standards working
  groups
• Promoting Common information/Data Model
  Multispeak ? CIM
• Evolve for next value phase -- Working to fill
  standards gaps / refine
• Meter tables
• Common PHY/MAC
• Mesh routing protocols

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Security

• Cyber security is a critical issue due to the
  increasing potential of cyber attacks and
  incidents against this critical sector as it
  becomes more and more interconnected. Cyber
  security must address deliberate attacksand
  inadvertent compromises of theinfrastructure
• Key issues
• Risk mitigation protection in current systems
• Standards to assess address risks in the system
  
• Addressing future vulnerability as the grid
  evolves

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LandisGyrs Protections Today

• Privacy, Accuracy Authenticity of Information
• AES encryption protocol wrappers
• Randomized Meshed Paths
• Unique Channel Schemes
• HAN leveraging ECC
• Avoiding Disruption or Malicious Use of the
  Network
• Role-based access control
• Device registration and validation
• Limited allowable / verified actions at the edge
• Natural protection via network design

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No one can sit still

• Disruptions on a widescale today would take
  tremendous experimentation determination, with
  limited results
• However
• Aug 18, 2008 - Staged cyberattack exposes
  vulnerability in power grid
• March 21st, 2009 Power Grid Is Found
  Susceptible to Cyberattack
• April 8th, 2009 - Electricity Grid in U.S.
  Penetrated By Spies
• June 12th, 2009 Hacking will be demonstrated in
  July
• The cat and mouse chase is on system managers
  vendors will improve security postures as
  exploits are developed

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An approach to ongoing protection
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LandisGyrs Top Recommended Security Practices

• Implement strong security techniques, such as
  mutual authentication, cryptography message
  integrity verification to protect information
• Provide countermeasures to identify potential
  breaches, the areas affected, and a means for
  users timely reaction
• Ensure protection of all user and credential
  information, allowing access according to
  designated rights.
• Incorporate use of access controls to ensure
  access to certain data/functionality is allowed
  only to specific trusted entities
• Train all employees who have access to AMI data
  or controls.
• Perform ongoing 3rd-party penetration testing to
  uncover vulnerabilities

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Thank you
Michelle Mindala-Freeman VP, Marketing Product
Management, North Am Michelle.mindala_at_landisgyr.co
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