ERCOT ELTF – Overview and Brief Proposal

Dr. Eric Woychik – Strategy Integration LLC representing Comverge, Inc.8 November 2006

Overview

• Comverge Footprint

• Business Models

• Austin Energy Program

• Thermostat Proposal

• Questions or Comments

Comverge has over 500 North American Utility Clients

Comverge Clients

Technology Implementation

Market SegmentResidential

Small Commercial Large C&IMedium C&I

Big Box, Retail, Supermarket

Hospital, Gov’t Buildings

Large Process Industry

ImplementationIntegration Digital

ContactLow-Speed Field

NetworksHigh-Speed Field

Networks

Open-Loop / Simple

Closed-Loop / Integrated

Load-Type

Discrete

A/C Load Lighting Process

Site Strategies

Processes DG/BUG

Smart Buildings

DCU / Thermostat+metering

TechnologyeSS

+ metering

Direct Load Control

ProcessControl

Feedback Control

Over 500 Utilities State of

Connecticut

What’s Different: How We Go To Market

Three options for utility demand response:• Hardware and software sales (parts – do it yourself kit)• Turn-key services (operate, maintain, manage

customers)• Customized, fully outsourced Super-Peak Project

capacity contracts: Customized program design Marketing and customer acquisition Equipment installation, warranty, and maintenance Operations and call center Manage customer churn Measurement & verification Pay-for-performance based on MW provided

What’s Different: Austin Energy’s Demand Response Program

Elements of the Power Partner Program

• Comverge, Inc. Manufacturer of SuperStats® and DCU’s

• Honeywell Utility Solutions Installations Call Center Warrantee Handling

• Cycling Season June – September; Monday – Friday only 4:00 to 8:00 residential; 3:00 to 8:00 commercial No Holidays or Weekends 10 minutes of every 30 minutes (33% cycling strategy)

• No Incentives – e.g., give away T-Stats

AE’s Demand Response

Power Partner Program Installations began in 2000 Pilot Program of 3,000 Honeywell Thermostat installations

• Residential only• Pilot also included 600 DCU Water Heater installations in Multi-Family

Full Implementation six months into pilot program• 10,000 additional thermostat installations• Incorporated Multi-Family, Commercial, and Municipal

As of March 2006 - 49,029* total Thermostat Installations• 21,325 Single Family• 23,735 Multi-Family• 3,969 Commercial, Municipal & Government• * including 4,000 White-Rodgers

Cooperation / Buy-in from Local HVAC Contractors• One-on-one meeting with local contractors

AE Demand Response Events

Power Partner Cycling Events

0

2

4

6

8

10

12

14

2000 2001 2002 2003 2004 2005

Cycling Events

Thermostat Proposal for Texas

• Give away T-Stats in exchange for demand response Austin Energy model – dispatchable demand response Customer education also results

• First blanket constrained transmission & distribution areas

• Recommend T-Stat “give away” program through RECs

• Enable demand response to be dispatched by ERCOT

• Lost revenue is not an issue (largely revenue neutral)

Questions or Comments?