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San Diego Gas & Electric Chooses Itron OpenWay(R) for Smart Meter Deployment

July 30, 2008

Itron Inc. (NASDAQ: ITRI) has reached an agreement with San Diego Gas & Electric (SDG&E) to replace or upgrade the utility’s 2.3 million electric and gas meters with Itron OpenWay technology for its smart meter initiative.

Itron will provide its OpenWay electric meters and gas modules and Itron Enterprise Edition(TM) Meter Data Management software, as well as implementation, project management and installation services for the utility’s smart meter project. The agreement must be approved by the California Public Utilities Commission (CPUC).

“We are excited to have yet another forward-looking utility choose our OpenWay system for its smart meter strategy,” said LeRoy Nosbaum, Itron chairman and CEO. “SDG&E joins a growing list of OpenWay users who are providing their customers advanced technology that will allow them to integrate their choice of smart appliances and other energy-management devices and software.”

Itron’s OpenWay system provides a foundation for smart metering and supports smart transmission and distribution grids by providing a two-way communication network between the utility and each meter. OpenWay provides interval data collection, time-of-use metering, load-limiting remote disconnect and reconnect, outage detection, net metering capability and ZigBee(R) home area network connectivity, which empowers customers to participate in energy management and conservation.

“Our challenge was not simply to select a reliable, leading-edge technology for the advanced utility meters, but also to choose a technology that could support our customers’ choices on how to take advantage of the energy-usage information that will be available to them,” said J. Chris Baker, SDG&E vice president of information technology. “OpenWay offers the flexibility to incorporate new ideas in the future.”

SDG&E’s smart meter initiative and funding gained CPUC approval in 2007. SDG&E plans to begin deploying the new system broadly in February 2009, with completion by the second quarter of 2011.

About Itron:

Itron Inc. is a leading technology provider to the global energy and water industries. Itron Inc. consists of Itron in North America and Actaris outside of North America. Our company is the world’s leading provider of metering, data collection and utility software solutions, with nearly 8,000 utilities worldwide relying on our technology to optimize the delivery and use of energy and water. Our products include electricity, gas and water meters, data collection and communication systems, including automated meter reading (AMR) and advanced metering infrastructure (AMI); meter data management and related software applications; as well as project management, installation, and consulting services. To know more, start here: www.itron.com.

About SDG&E:

SDG&E is a regulated public utility that provides safe and reliable energy service to 3.4 million consumers through 1.4 million electric meters and more than 840,000 natural gas meters in San Diego and southern Orange counties. The utility’s area spans 4,100 square miles. Exceptional customer service is a priority of SDG&E as it seeks to enhance the region’s quality of life. SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego.




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