Narrative Statement

0463-EX-PL-2006 Text Documents

CenterPoint Energy Inc

2006-07-22ELS_77176

                                                                        July 21, 2006

                                   Narrative Statement
              Proposed Broadband over Power Line (BPL)
                         Extended Trial in Houston Texas
         CenterPoint provides electric transmission and distribution service in the Houston metropolitan
area and provides gas service in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas to a
combined total of 5 million customers. CenterPoint plans to deploy BPL to pass 45,000 electric
customers and to 20,000 gas customers. The BPL systems will be used to test utility applications, such as
automated meter reading services. CenterPoint will also be testing the scalability of BPL technology,
which will determine the extent to which CenterPoint deploys BPL further.
Integration and Extended Trial Deployment By: CenterPoint Energy

Energy Utility Company: CenterPoint Energy

BPL Product Manufacturer: Kaicom Networks, Inc

        I.       Overview of Proposed Operation

                 Through these tests, CenterPoint will test multiple aspects of the Equipment, including
                 its performance, capacity, signal quality, data rates, interference potential and user
                 acceptability. CenterPoint Energy and IBM have agreed to jointly deploy a BPL
                 extended pilot in the Houston area to test utility applications such as electronic meter
                 reading as well as connect/disconnect of service. For this extended pilot, CenterPoint
                 Energy will use a product manufactured by Kaicom Networks Inc. An area has been
                 identified within a 3.2 kilometer radius of Houston, TX (Harris County), location of
                 equipment is at the corner of
                 Richmond and Las Palmus with a radius of 2 miles. The zip code of operation is 77027


                 BPL is being tested today across the United States of America. CenterPoint Energy has
                 a test trial located in the Bellaire, Texas area, and it is our intention to develop a full
                 utility wide deployment plan for CenterPoint Energy after successful completion of this
                 extended pilot in the Houston area.


        II.      Details of Proposed Operation

                 CenterPoint Energy intends to install Kaicom’s BPL product to establish system
                 functionality and viability for full scale deployment. CenterPoint will be using BPL for
                 utility applications such as time of use meter reading and remote connect/disconnect.
                 Other utility applications will be tested such as automated power grid switching as well
                 as other developing applications. The objective is to measure system reliability, quality
                 of service, and scalability across the power grid.
                 Details regarding the technical parameters of the proposed operation are provided
                 below:


       Time Period

                Eighteen months: July 22, 2006 – January 21, 2008



       Location(s)/ Geographic Area

                Houston, TX (Harris County), location of equipment is at the corner of
                Richmond and Las Palmus with a radius of 2 miles. The zip code of operation
                is 77027

       Equipment

                The Equipment will include 20 overhead nodes and 20 customer premise
                equipment devices.

                Manufacturer: Kaicom Networks, Inc.
                Model #: 2220E BPL Repeater
                FCC Type Acceptance: FCC testing underway
                Emission Designator: OFDM with 1536 carriers

       Frequency Range

                2 MHz to 34 MHz

       Maximum ERP or EIRP, if applicable

                Tests will comply with Part 15 emissions limits

III.   Certifications

       CenterPoint certifies as follows regarding the proposed operations:

       (i)      It will not market, sell or lease equipment to end users;
       (ii)     It will not charge fees for use of equipment;
       (iii)    At the conclusion of the testing period, it will recall and recover all
                devices that do not comply with FCC regulations;
       (iv)     It understands that operation of unapproved devices must not cause
                interference and will takes steps to resolve any interference,
                including discontinuance of operation;

IV.    How the program of experimentation has a reasonable promise of contribution to
       the development, extension, expansion or utilization of the radio art, or is along
       line not already investigated.

       CenterPoint Energy has an extensive network design experience across multiple access
       technologies including, Fiber, DSL, Microwave, Sonet, PLC, BPL, Frame Relay, ISDN
       and Wireless. As a Utility, CenterPoint Energy has over 30 years experience operating
       communications systems for the power grid. Kaicom has joined the industry to
       produce and manufacture technology to implement BPL. CenterPoint Energy is
       confident that Kaicom’s BPL product will add even more credibility to the ever
       expanding BPL market, and will help prove the technological viability and add to the
       broadband market growth in years to come.

       BPL has been identified by FCC chairman, Michael K. Powell as having;
       “The potential to provide consumers with a ubiquitous third broadband pipe to
       the home” and “Broadband over power lines is at the cutting edge of this dramatic
       digital migration that will continue to free applications (e.g., voice, data, and
       video) from the regulatory and technological shackles that have tied them to
       specific platforms (e.g., voice to copper and video to coaxial cable)”.



Document Created: 2006-07-24 07:13:41
Document Modified: 2006-07-24 07:13:41

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