Demand Response and Energy Efficiency Killer Smart Grid

Demand Response and Energy Efficiency: “Killer” Smart Grid Applications Rick Counihan, VP Regulatory Affairs January 20, 2010

About Ener. NOC Market Leader in C&I Demand Response Innovative Smart Grid Energy Management Services for Businesses and Institutions Strong Financial Track Record • Over 3, 250 MW under management, across more than 5, 600 commercial/industrial sites (as of 9/30/09) • Active in all DR programs in RTO/ISO regions • Diversified product suite of demand response and energy management solutions, including Monitoring-Based Commissioning (MBCx), Energy Supply Management, and Carbon Management • Scalable technology platform – Power. Trak® • • • Founded in 2001; Publicly traded on NASDAQ (ENOC) since May 2007 2009 projected revenue: $187 -189 million Headquartered in Boston 400+ full-time employees

Ener. NOC’s Demand Response Footprint 3, 250 MW under management, across more than 5, 600 commercial/industrial sites* * As of 9/30/2009

The Energy Internet Like the Internet, the Smart Grid has two layers. Infrastructure Layer: Transmission lines, meters, communications protocols, etc. Application Layer: Functionality that extracts value from the underlying infrastructure

Why Demand Response? Reduces peak demand transmission and distribution congestion Mitigates high wholesale market prices 100% 90% 75% 50% 25% Winter Spring Summer Fall

How Do Customers Participate? What Businesses and Institutions Curtail § § § § § Air handlers Anti-sweat heaters Chiller control Chilled water systems Defrost elements Elevators Escalators External lighting External water features HVAC systems Standby / Backup Generation § § § § § Internal lighting Irrigation pumps Motors Outside signage Parking lot lighting Production equipment Processing lines Pool pumps / heaters Refrigeration systems Water heating Curtailment How It Works Depending on customer needs and preferences, demand response plans can be automated through Ener. NOC’s technology platform, or initiated manually at the site.

Ener. NOC’s Network Operations Center Utilities and grid operators benefit from the “smart grid” Ener. NOC has built

Energy Data from Every Customer Capture Meter Data • At each site, the utility installs a KYZ pulse on the end-user meter, or an Ener. NOC field technician installs a current transformer. The ESS stores this usage data. Send Meter Data • In real-time, each ESS transmits usage data to Ener. NOC’s Power. Trak® software platform via broadband or wireless connection. Present Meter Data • Users have access to Power. Trak, online energy management software, that presents Ener. NOC consumption data and demand response performance in real-time

The Mystery of the Chess Club or Using data and analytics to identify savings

Monitoring-Based Commissioning Software-as-a-service platform that identifies 8 -12 percent savings

Rick Counihan Vice President, Regulatory Affairs Ener. NOC, Inc. 500 Howard Street Suite 400 San Francisco, CA 94105 Tel: 415. 343. 9504 rcounihan@enernoc. com