IoT Roundtable Breakfast

July 27, 2017

Presentation outline

• The Texas Energy Market

• About us – Vistra, Luminant and TXU Energy

• The Rise of Renewables

• The impact of (Smart Meter) technology

• What next ? What keeps us up?

2

Texas is the largest electricity market

in the US

State electricity consumption 2015; TWh

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100

150

200

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300

350

400

450

500

TX FL PA CA IL AL NY GA NC OH AZ MI WA LA IN SC VA MO KY OK TN NJ WV WI MS

Source: EIA

Texas has by far the largest electric usage of any state – roughly equivalent to California, Oklahoma, Arkansas, Colorado, New Mexico, Massachusetts and Alaska combined

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1000

2000

3000

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5000

6000

In fact, the 10th Largest Electricity Market

Globally

Source: EIA (latest available data)

Electricity consumption2014; Million MWh

Texas’ Generation Profile is Changing

44%

29%

12%

15%

0% 0%

2016

Natural Gas

Coal

Nuclear

Wind

Solar

Other

38%

40%

13%

8%

0% 1%

2010

Energy by Fuel Type (MWh)

Source: ERCOT Demand and Energy Reports

In a 6 year period, the percentage of energy produced by wind generation has almost doubled and natural gas generation has increased as well while coal generation has

declined 25% from its previous production level.

Generation and Retail are competitive while Transmission and Distribution segment

remains fully regulated

In Competitive Areas Of Texas, Different Companies

Serve Each Part Of The Electric Value Chain

Luminant

TXU Energy

TXU Energy

Oncor

Presentation outline

• The Texas Energy Market

• About us – Vistra, Luminant and TXU Energy

• The Rise of Renewables

• The impact of (Smart Meter) technology

• What next ? What keeps us up?

8

Our company

A Powerful Combination

Expertise and resources to meet the sophistication of any customer.

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Presentation outline

• The Texas Energy Market

• About us – Vistra, Luminant and TXU Energy

• The Rise of Renewables

• The impact of (Smart Meter) technology

• What next ? What keeps us up?

11

The Rise of Renewables – A Confluence of

Forces

Corporates are increasingly adopting

Renewables

Texas is a renewables leader

Vistra is a large integrated Renewables Player

in Texas

There are several ways to go Renewable

Presentation outline

• The Texas Energy Market

• About us – Vistra, Luminant and TXU Energy

• The Rise of Renewables

• The impact of (Smart Meter) technology

• What next ? What keeps us up?

17

Convenience.

Control.

Savings.

iOT provides innovative product opportunities

– TXU iThermostat example

Technology advancements drive continuous

innovation – Amazon Alexa example

Smart Meters are ubiquitous in Texas

Installed per TDSP (as of 2016)

Oncor: 3 million +

CenterPoint: 2 million +

AEP: 1 million +

TNMP: 200,000 +

Sharyland: In Progress

Source: ERCOT

Smart Meters have had a significant impact

to the business

• Usage is recorded in 15 minute

intervals (96 intervals per 24 hrs)

• Remote capabilities

• Producing a treasure trove of data

that enable unique customer &

energy management insights

MyEnergy Dashboard Example

Threshold Alert

Weekly Electricity Usage Alert

Budget

Enabling Product Innovation

Presentation outline

• The Texas Energy Market

• About us – Vistra, Luminant and TXU Energy

• The Technology Enabled Rise of Renewables

• The impact of Smart Meter technology

• What next ? What keeps us up?

26

• Transition to distributed grid

• Development of microgrids

• Increase in intermittent resources

• Entry of unconventional competitors

• Continued low wholesale prices

• Technological developments

• Other?????

Trends that could impact future