Country Energy to Tackle Carbon Emissions Through Development of Intelligent Network With IBM

SYDNEY, AUSTRALIA and ARMONK, NY, Apr 17 (MARKET WIRE)
--
Country Energy, manager of Australia's largest power network, today
announced a global collaboration with IBM (NYSE: IBM) aimed at developing and
deploying
an Intelligent Network in Australia. As part of the announcement, Country
Energy has
become the first utility outside of the United States to join the Intelligent
Utility Network Coalition, a global group of companies working with IBM to
accelerate the adoption of 'smart grid' technologies and business solutions.

An Intelligent Utility Network is a digital, open standards-based network of
sensors, metering, communications, computer processors, and analytics which
connects an entire utility company -- from power plant to plug. These connected
systems provide a utility with near real-time data and information to better
manage the grid infrastructure, enabling fewer and shorter power outages,
improved customer service, and the ability to source and deliver power more
efficiently, including renewable energy.

Country Energy is pursuing the Intelligent Network concept to improve
reliability, support the growth of renewables like solar and wind, and
makeenergy efficiency simpler for customers.

"Climate change and cost of living fears have made families and businesses
keener
than ever to control their energy and water use," said Craig Murray, Country
Energy's managing director. "At the same time, Australia's power grids are
beginning to show their age -- we need a blueprint to renew those grids as more
efficient and responsive Intelligent Networks. We need to put the digital age
to work for our network customers -- by 2020, Intelligent Networks need to do
for
essential services what the Internet has done for information," Mr Murray
added.

Country Energy's vision for an Intelligent Network by 2020 has
three
objectives:

-- greater energy efficiency, through 'smart metering' and smart in-home
networks -- responding to customers' desire for greater control over their
energy usage and subsequent environmental impact.

-- a more reliable and efficient power network through remote diagnostics
and self-healing, fine tuning capacity in real time, and better network
planning.

-- enable a much wider penetration of small renewable generators -- in
homes, schools and businesses -- by allowing renewable energy to be shared
and stored locally.

According to Country Energy, realizing these objectives through the
development of an Intelligent Network can combat the long-term costs of
moving to a low carbon future.

IBM and Country Energy are focusing on developing solutions that are
specific
to Australian conditions and electricity networks, and which will enable small
renewable generators to interact with the network.

In the coming weeks, Country Energy and IBM will unveil a dedicated
Intelligent
Network research and education center at Queanbeyan, near Canberra, to
demonstrate how smart grid technologies and solutions can benefit businesses,
consumers and the environment. The Centre will focus on the operational and
societal benefits of a smart grid, and will be made available for visits by
regulators, policy makers, environmentalists, industry and customers.

Before the end of 2008, Country Energy will announce the location for an
'Intelligent Network community' to practically demonstrate day-to-day
Intelligent
Network applications for around 10,000 customers in regional New South Wales.

"The Intelligent Network will transform the way power is delivered,
managedand used -- in Australia and around the world," said Guido Bartels,
GeneralManager, IBM Global Energy & Utilities Industry. "We are delighted to be
teaming with Country Energy to bring this shared vision to life. With Country
Energy on board as our newest member of the Intelligent Utility Network
Coalition, we now have a truly global collaborative group focused on smart grid
implementations." Bartels added, "This is a unique initiative for the utility
industry, and is founded on a dedication to make the benefits of a smart grid
a reality for millions of customers and businesses around the world."

IBM has tapped its wide range of energy industry business consultants and
technology experts to develop an Intelligent Network blueprint in close
collaboration with Country Energy. The two companies will also work together
on the design and build of the Intelligent Network research and education
centre, including vendor evaluation and solution design. IBM and Country
Energy support the development of 'open platform' solutions to deliver
intelligent networks -- meaning that the technology benefits will be as widely
accessible as possible.

The development of an Australian Intelligent Network builds on more than two
years research and development work by Country Energy, including an
Australian-first trial of smart metering and dynamic pricing, and the
deployment of a 'broadband over powerline' solution.

"In the utility industry, a range of issues such as climate change and
regulatory requirements are driving increased investment in energy and
information technologies, including the Intelligent Grid," said H. Christine
Richards, analyst with Energy Insights, an IDC Company. "Throughout 2008, we
expect to see utilities -- like Country Energy -- investing in technologies
to enable better grid efficiency, greater integration of renewable energy
sources, and improved reaction time to events," Richards added.

Country Energy is Australia's sole representative in the Intelligent Utility
Network
Coalition. Other members include CenterPoint Energy, Inc.'s (NYSE: CNP) electric
transmission and distribution subsidiary, CenterPoint Energy Houston Electric,
LLC
and Washington DC-based Pepco Holdings, Inc. (NYSE: POM). Together, these
companies serve millions of customers worldwide, and each business is working to
develop common standards, technology solutions and processes for intelligent
networks.

Utilities and related companies based in the United States, Europe and
Asia-Pacific are expected to join the Coalition over the next several months.

About the Intelligent Utility Network Coalition

The Intelligent Utility Network Coalition was created by IBM to help
accelerate the adoption of 'smart grid' technologies and solutions globally.
This
effort includes: facilitating an industry community for collaboration,
knowledge sharing, education and innovation; working with energy industry and
standards groups, and the development and deployment of Intelligent Utility
Network strategic solutions and technologies.

About Country Energy:

Country Energy owns and operates Australia's largest energy supply network
across
95 percent of New South Wales -- a state bigger than Texas, and employs
around 4,000 people serving more than 870,000 customers.

Managing around 195,000 kilometres of powerlines, 1.4 million power poles,
113,000 distribution substations and 120,000 street lights, Country Energy is a
leading Australian energy services corporation owned by the New South Wales
Government.

For more information about Country Energy, please visit
www.countryenergy.com.au

About IBM:

For more information about IBM, please visit: www.ibm.com/energy

Note: The contract for this project was signed in Q1 2008.

Media Contacts:

Natalie Fine
IBM United States
+1 917-472-3403
natalie.fine@us.ibm.com

Matt Mollett
IBM Australia
+61 3 9626 6074
+61 413 420 394
mollett@au1.ibm.com

Jane Coates
Country Energy
+61 2 6338 3628
+61 427 731 235
jane.coates@countryenergy.com.au

Copyright 2008, Market Wire, All rights reserved.

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