TECO Energy, IBM Announce Agreement to Demonstrate, Evaluate Smart Energy
Management System

TAMPA, FL, April 11, 1995 . . . TECO Energy and IBM today announced a pilot
agreement to demonstrate and evaluate an advanced smart home energy
management and communications system that will enable residential electric
utility customers to better control and track their energy consumption,
right down to their appliances.

The system also performs other important utility functions and can serve as
the communications gateway to the home by providing an interface for
providers of voice, video and data services and access to the emerging
information superhighway. The first residential and commercial pilot
demonstration projects are scheduled to begin in Tampa in June.

The system interconnects energy measuring and monitoring devices with both
a personal computer inside the home and a control processor attached to
the outside of the home.

The outside processor, named SHUbox, is an innovative component conceived
by TECO Energy and driven by IBM's PowerPC embedded controller. IBM will
manufacture the SHUbox, and IBM Aptiva personal computers will be used in
the pilot project.

TECO Energy said it has been testing prototype units for the past two years
in Tampa. A subsidiary, TECO Energy Management Services Corporation
(TEMS), is conducting business and technical activities concerning the
system. It has filed a patent application covering key aspects of the
system.

The SHUbox, which is connected to the electric meter, acts as a central
controller for a local area network using the existing in-house electrical
wiring. Through this network, homeowners can control and measure their
energy use and costs 24 hours a day, and utilities can efficiently operate
new, more effective energy management programs.

Utilities should also be able to use the system to improve troubleshooting
and the management of their distribution networks and to facilitate new
services such as automatic outage notification and meter reading. At the
same time, a host of potential information applications could be made
available through the communication gateway capabilities of the SHUbox.
These include movies and TV shows on demand, interactive educational
programs, electronic banking, home shopping and access to the information
highway.

TECO Energy Chairman and Chief Executive Officer Timothy L. Guzzle said,
"Using any house's existing electrical wiring, the measurement and
monitoring devices together with the SHUbox makes that house a smart home.
That means utility customers through their personal computer will have
more information and more choices. And so will the utilities that serve
them."

Michael Albrecht, Jr., general manager of IBM's utilities and energy
services solutions unit, said, "We are excited about the potential for
IBM's technology leadership to be used in such an important consumer area.
We believe the information learned from the pilot project will help
homeowners, business owners and utilities to use energy more wisely and to
improve their business operations."

IBM and TECO Energy said the demonstration projects will determine the
potential for mass marketing of the TEMS energy management system. Factors
to be studied include reliability, ruggedness, environmental benefits,
ease of use, costs, potential applications and customer acceptance.

Subject to the demonstration results, TEMS and IBM expect to enter into
negotiations for a commercialization and license agreement.

The system utilizes the Electronic Industry Association communications
protocol, called CEbus, as well as other protocols to enable smart
appliances and other devices to communicate. Gregg Ehlers, TEMS president,
said he believes that with the system available in homes, appliance and
electronics manufacturers will be encouraged to install their own smart
technology capability in new products which would result in expanded uses
of the system.

Ehlers said, "Until now it has been impossible economically to justify
extensive automation in the home, since it was assumed broad band networks
would first have to be built. The TEMS system with the SHUbox creatively
overcomes that large obstacle."

Pat Howard, director of industry solutions in IBM's utilities marketing
unit, said, "The TECO agreement is one example of IBM's objective to
provide technologies and services that help utility companies improve
profitability and enhance their ability to reach customers more
effectively."

Howard pointed out that the IBM utility unit is working on a number of
solutions around the globe. "This agreement with TECO represents another
critical step in our intent to build and deliver best of breed systems
worldwide."

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