March 31, 2011

TEC TO OFFER TANTALUS SMART GRID SOLUTION TO TEXAS UTILITIES

Raleigh, N.C. – March 31, 2011 – Tantalus and Texas Electric Cooperatives (TEC) today announced they have entered into a business alliance through which TEC will offer TUNet® (Tantalus Utility Network) Smart Grid communications technology to electric cooperatives and municipal utilities throughout Texas.

TEC is the state-wide association representing the interests of 65 electric distribution cooperatives and nine generation and transmission cooperatives across Texas. The alliance with Tantalus enables TEC to offer its member cooperatives – as well as municipal utilities – support for both wired and wireless platforms for implementing the energy-efficient and cost-saving attributes of smart grid technology.

“By adding TUNet to our portfolio, we can now offer Texas utilities technology built for the full range of Smart Grid functionality,” said Johnny Andrews, Sr. VP. “With system efficiencies, energy conservation, and load control looming on the horizon, Tantalus presents a terrific opportunity for TEC to offer its members and customers high-quality products from a respected, leading manufacturer in the high-tech utility world.”

Andrews expects that with expanding broadband access across Texas, many communities will be looking at ways to leverage a fiber-to-the-home (FTTH) network for Smart Grid functionality provided by Tantalus. For others, eliminating high cost reads and providing end-of-line locations with top quality service is a priority. The 220 MHz ultra long range WAN (wide area network) is ideal for utilities with vast service territories that require split second, two way communications with communities, farms, and distribution equipment.

TUNet operates as a utility’s private communications network, which helps keep operating costs low and reliability high. TUNet-enabled smart meters and load control devices can be surgically deployed anywhere within the coverage area, which enables a utility to target high need, high value accounts first, then expand functionality at its own pace.

To date, three Texas utilities have deployed Tantalus technology, including Lamb County Electric Cooperative, which uses its TUNet system to selectively enact load shed events on high-powered irrigation pumps during critical peak periods. Tantalus’ unique ability to identify which pumps are in operation and provide time-stamped records of how long a curtailment was in effect, adds precision and speed to load shed activities.

Eric Murray, Tantalus President & CEO, says that the alliance is a great fit given the diverse rural and urban environments, energy efficiency goals, and operating challenges of TEC members. “TEC sought a partner who could provide their members with much more than a basic meter reading system,” he said. “Tantalus has deep experience working with public power utilities and rural electric cooperatives. We are honored to work with TEC to provide Texas utilities with solutions that enable them to quickly realize a high level of automation and deliver long term value.”

-30-