UNIÓN FENOSA IT STRATEGY ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT

1. UNIÓN FENOSA IT STRATEGY ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT Mr. David Andrés Hurtado Mining Engineer Soluziona Spain San Francisco, CA April 2004

2. AGENDA • Company Profile and New Business Environment • IT Strategy • PI Implementation • Benefits of PI Implementation in Union Fenosa

3. Company Profile and New Business Environment

4. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT - Company profile and new business Environment Core business Areas Energy Services Technology Business divisions Generation Gas Networks Multi-services Telecommunications International investments UNION FENOSA Group: Strategic configuration • Group revenue surpassing six billion US dollars • 25,000 employees in close to 30 countries • More than eight million electricity and gas customers throughout the world

5. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT - Company profile and new business Environment The new business orientation ... • Deregulated market - More efficiency • Installed power increment • Investments outside Spain • Multi-utility: Energy & Gas Energy & diversification Multiutility Global utility Efficient traditional utility Transformation Traditional utility

6. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT - Company profile and new business Environment Spanish new CC PP Naco Tuxpan La Joya Nairobi South Hermosillo Palamara La Vega EPSA De-regulated market Investment Projects Gas Business Inernational Investments Generation Business Evolution LNG Plants Damietta Sagunto Ferrol Installed Power (MW)

7. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT - Company profile and new business Environment International Presence

8. II. – IT Strategy

9. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT – IT Strategy Initial Situation and Improvement Opportunities • Plants with different technologies and ages • New personnel and high changing personnel rate • Therefore there is a need for a common language and standardization • Investments in new Power Plants • Some plants are changing their technology • Existence of new Management Applications that require plant information to operate in the new competitive market STANDARIZATION INTEGRATION SCALABILITY

10. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT – IT Strategy Initial Situation and Improvement Opportunities Headquarters Main Business Processes MANAGEMENT CONTROL AND SUPPORT FUELS supply and delivery MANAGEMENT PRODUCTION Management (O&M + Results) Gestión del Adquisición y ENVIRONMENT Management ENERGY Management Gestión de la Suministro de Operación Combustibles (*) Decentralized Main Business ProcessesThermal Production -> Plant ManagementHydro Production -> Control Center Management Local PRODUCTION Management (O&M + Results) ENVIRONMENT Control Mechanisms Local Operation Fuels Operation & Hydro Margins Management Gestión del Adquisición y Gestión de la Suministro de Operación Combustibles (*) For the plants outside of Spain, Energy, Fuels and Environmental Management are decentralized, because of differences in local business environments: Energy Management -> Normally subject to a PPA (Power Project Agreement) Fuels Management -> Normally a single fuel type contracted with a single supplier Environment Management -> Normally less restrictive than in Spain

11. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT – IT Strategy Why OSIsoft PI? • Easy and reliable way to collect and monitor plant information from a diversity of sources • A variety of users can access timely plant data • Standardized method of collecting and sending information to other critical applications (Maintenance, Generation Management, etc.) • Efficient storage of Time-series data and historical Plant Information • OSIsoft is the market leader in providing real time plant monitoring technology to the energy industry

12. III. – PI Implementation

13. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT – PI Implementation Implementation Phases • PHASE I: • Detailed analysis of the existing plant systems. • User requirements study • Detailed architecture definition for PI installation based on the present systems and users requirements: HW & SW definition (Servers, connection cards, communication drivers, etc). • PHASE II: • Detailed design and prototype of the end-user graphic displays • Definition of the Database structure • Definition of the attributes of all data needed and available to be acquired, stored, calculated, and to be provided to corporate systems • PHASE III: • HW & SW acquisition, installation, configuration, testing and production preparation • PHASE IV: • Development of system maintenance and protection processes • Training: System Administrator, End-User and Maintenance Courses

14. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT – PI Implementation Information Levels CEN MANAGEMENT CONTROL Higher level integration Integration of plant management information Concentrator of management information Corporate integration Integration of management control information Concentrator of enterprise information Basic level integration Integration of process information Concentrator of plant information PLANT MANAGEMENT SYSTEMS ERPs RESOURCE MANAGEMENT SYSTEMS Level 1 Process control Level 2 Operation monitoring Level 3 Plant management Level 4 Company management Plant control equipment: DCSs, PLCs, etc. Plant control and monitoring systems SCADAS Operation support systems EXPERT SYSTEMS Real-Time Data Server

15. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT – PI Implementation Technical Architecture Management framework Fuel Operation Maintenance Environment Others… Corporate/Business LAN Business Systems Plant Information System (PI) FIRE WALL Portfolio Dispatch & Control Plant Operations LAN SCADA DCS Rosemount ABB OPM Mitsubishi OPTOMATION Siemens Supervision framework

21. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT – PI Implementation Management of metering and capture points Information requests Operation Fuel Maintenance Dam Safety PI Integration with Management Systems Obtains, maintains and updates all information related to the metering management requested by other modules FUNCTIONAL SCOPE CONCEPTUAL PLAN Metering capture and management: • Metering management • Measurement management • Capture point management MDB DB manager Integrity Control MDB Interface Metering - OCEN Shared Functionality: • Based on allowing other OCEN modules to consult and/or manage metering and measurements. MDB motor MDB Manager (Motor): • Capturing information from different sources and sending it to the destination modules. • Validation, generation of calculated measurements. • Metering database purge, etc. PI

22. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT: PI Implementation PI Integration with Management Systems - Technical Solution • PI-API functions are used for accessing to PI Database OCEN • PI-API functions and C++ functions, are in the PI NT SERVER. • Using the API, PI data are extracted • Relevant PI data and information is sent to OCEN via OpenLink middleware. POWER PLANT HEADQUARTERS NT SERVER NT Environment UNIX Environment UNIX SERVER PI NT SERVER PI - API C++ functions Java Interface DB PI - NT POWER PLANT LAN Interface NT UNIX MDB Metering OCEN

23. Production log book. Automatic recording events from PI Real time: different frequency access to PI RELEVANT PARAMETERS - Power - Energy - Environmental parameters - Performance - Losses, etc. • RELEVANT PARAMETER • - Power • - Energy • Enviromental Parametres • Performance • - Loses, …. Configuration of the relevant parameters for each plant

24. On-line data interface OCEN – PI Daily Load Curve

25. IV. – Benefits of PI Implementation in Union Fenosa

26. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT – Benefits of PI Implementation in Union Fenosa Present Situation • Using PI, Union Fenosa can eventually integrate and centralize plant information at the Headquarters level. This permits new possibilities of optimization for a Centralized Control Office • Continuous improvement: facilitated by historical and real-time monitoring and diagnosis (decisions based on costs, production conditions, ...) • Centralized Incidents Analysis: Support to Power Plants for decision making • Data sharing between different areas: maintenance, production, fuels • Support for specialized information systems • Standardized information for analysis and detailed studies (Time savings) • System acceptance by end users has been high

27. UNIÓN FENOSA IT STRATEGY: ADAPTATION TO THE CHANGES IN THE BUSINESS ENVIRONMENT – Benefits of PI Implementation in Union Fenosa Next Steps • Central PI Server in UF Headquarters with relevant data of all power plants (including our investments outside Spain) • Web access to PI • PI implementation in LNG Plants • PI for Transmission

28. Thank you for your attention