IBM and Hydro One Team to Improve the Power Grid in Ontario

ARMONK, NEW YORK and TORONTO, ONTARIO, March 27, 2012 -- IBM (NYSE: IBM) and its Business Partner Telvent announced that they have been selected by Hydro One, the largest distributor of electricity in Ontario (Canada), for a new smart grid project that will help transform the province's electrical system. Together, the companies will run simulations and tests to determine the smart grid technologies that have the potential to improve power efficiency and reliability.

Installed in the 1950s, many components of Ontario's current electricity distribution system have reached the end of their service life. More recently, technological advancements, provincial governmental policy, market forces and increased environmental awareness have added pressure to the demands on Ontario's electricity distribution system.

"As equipment on our distribution system ages, it needs to be replaced. This creates an opportunity to create a world-class network with new, intelligent and sophisticated technologies to meet the changing needs of our customers," Rick Stevens, Vice President, Asset Management, Hydro One. "Our collaboration with IBM and Telvent will help Hydro One assess the next generation of distribution equipment and make the right choices for our customers looking for more reliable electricity, particularly in rural areas."

The Advanced Distribution System (ADS) project will help the utility identify and assess equipment, test new delivery models for electricity, validate the costs and benefits anticipated with a new smart grid and recommend changes to cost effectively modernize Ontario's distribution system.
The project intends to enable an increased amount of Distributed Generation into the grid as well as help increase the reliability of the current distribution system and improve outage management during large scale situations. By taking advantage of the insights gained from new data sources based on analytics, Hydro One will be able to optimize energy utilization and management for greater efficiency while accommodating consumer demand.
"Utilities around the world are investigating new smart grid technologies to help solve complex challenges caused by an aging infrastructure and increasing demand," said Guido Bartels, General Manager of IBM's Energy & Utilities Industry and Chairman of the Global Smart Grid Federation. "Together with Hydro One, we are paving the way for transformation by testing new sophisticated monitoring and control technologies that will enable the integration of renewable energy in the distribution grid while improving its reliability and responsiveness, and ensuring customer satisfaction. This will prepare Hydro One and the province of Ontario for further growth and deliver more affordable and reliable renewable energy for Ontarians."

As the overall system integrator, IBM will provide expertise in smart grid technologies, planning and implementation to oversee the reliability of the network solution. Hydro One will use the Advanced Distribution Management System (ADMS), from Telvent, a real-time solution that will provide complete functionality for planning, operation and analysis of its distribution system. This will allow Hydro One to more accurately manage and plan their grid investments.
According to Telvent's Chairman and CEO, Ignacio Gonzalez, "In addition to the ADMS solution, Hydro One will benefit from the strategic collaboration between Telvent and IBM. Over the years, we have provided solutions to several large utilities to help make mid-project technology adjustments while increasing the speed of the solution development."
The project is in line with the requirements of Ontario's Green Energy and Green Economy 2009 Act ("GEGEA"), which fosters the growth of renewable and cleaner sources of energy while promoting a greener economy.

About Hydro One

Hydro One provides services to 1.2 million residents of Ontario with the vast majority of its rural customers in low-density areas. Hydro One is the largest distributor of electricity with about 120,000 km of distribution lines over a rural service territory of about 640,000 square kilometers covering 75% of the province.

About IBM
IBM is involved in more than 150 smart grid engagements around the world, in both mature and emerging markets. IBM is the founding member of the Global Intelligent Utility Network Coalition, a unique collaboration of utilities from around the globe who are working to accelerate the use of smart grid technologies and move the industry forward through its most challenging transformation. More about IBM's vision to bring a new level of intelligence to how the world works; how every person, business, organization, government, natural system, and man-made system interacts, can be found here:
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Contact information :

Joanne Fortin
IBM Canada Media Relations
(514) 964-8558