1. PEC Smart Grid Pilot Ron Rundstedt ron.rundstedt@peci.com 830.868.6034

2. PEC is the nations largest electric cooperative, providing service to approximately 242,000 members in the Texas hill country.

3. Pilot Objectives Explore Smart Grid technology to help reach Board Conservation goal of 20% reduction Inform and empower our members to manage their energy usage Demonstrate ability to reduce demand during peak periods Demonstrate benefits of Smart Grid program to PEC, LCRA, and ERCOT Determine true program cost and benefits Survey member satisfaction

4. Pilot Scope 100+ residential participants 2 small commercial participants Pilot participants all on same feeder Installed smart meter, and control devices on air conditioners and water heaters, to enable two-way communication to PEC control center; participant maintained control over appliances PEC controlled appliances during peak periods Pilot was operated for one year

5. Consert Virtual Peak Plant (VPP) Device Controller Water Heater, Pool Pump Verizon Wireless Data Meter / Gateway Consert Operations Center Thermostat Consert Proprietary & Confidential

6. Load management information for all program participants is displayed in a single dashboard that PEC uses to view the aggregation of all pilot participants energy usage displayed in the form of Available load An energy management solution that allows PEC to control load management resources as if it was a peaking plant During times of peak demand, PEC initiated control events that successfully reduced peak demand for the participants Utility VPP Dashboard Consert Proprietary & Confidential

7. Participant Profiles Participants create their custom usage profile by answering a series of lifestyle questions which ensures their profile conforms to their comfort needs Consert Proprietary & Confidential

8. Schedules The schedule that is created can be changed at any time The system is web accessible from virtually anywhere, including smart phones Consert Proprietary & Confidential

9. Energy Display Energy usage is displayed by device Can zoom in for more granularity Consert Proprietary & Confidential

10. Knowledge Center Information that helps participants obtain the most benefit from their energy management programs Consert Proprietary & Confidential

11. Groups Can create groups and run targeted events: – Substation/Feeder – Subdivision – High energy users – Residential/Commercial – HVAC/water heater/pool pump – All participants Consert Proprietary & Confidential

12. Winter Control Event 4-Feb11-Feb 05:17 AM to 8:30 AM EST119,71377,938 Savings41,775 Percentage34.90% 8:30 AM to 10:30 AM EST50,25465,592 Savings(15,338) Percentage-30.52% Net Savings4.38% Temperature4-Feb11-Feb High44 Low2123 Average31 Event IDParticipantsOpted Out 832193

13. Summer Control Event Consumption Summary:ComparisonControl Summary:9-Jul8-Jul Hourly BreakdownWh Savings%kWh 4:31 PM to 5:00 PM EST 67,522 2,971 64,55195.60%64.55 CE Sub Total 67,522 2,971 64,55195.60%64.55 5:01 PM to 6:00 PM EST 136,179 99,476 36,70326.95%36.70 6:01 PM to 7:00 PM EST 119,314 146,987 (27,673)-23.19%-27.67 2 Hrs After Sub Total 255,493 246,463 9,0303.53%9.03 Totals 323,015 249,434 73,58122.78%73.58 OT9-Jul8-Jul High98 Low7573 Average86 Event IDParticipantsOpt OutTemp Out Total4480

14. Summer Control Event Consumption Summary:ComparisonControl Summary:12-Jul13-Jul Hourly BreakdownWh Savings%kWh 4:31 PM to 5:00 PM EST 71,188 9,442 61,74786.74%61.75 5:01 PM to 5:15 PM EST 35,570 6,490 29,08081.75%29.08 CE Sub Total 106,758 15,932 90,82685.08%90.83 5:16 PM to 6:15 PM EST 147,548 130,281 17,26711.70%17.27 6:16 PM to 7:15 PM EST 141,814 148,991 (7,177)-5.06%-7.18 2 Hrs After Sub Total 289,362 279,271 10,0913.49%10.09 Totals 396,120 295,203 100,91725.48%100.92 OT12-Jul13-Jul High98 Low75 Average86 Event IDParticipantsOpt OutTemp Out 91055115

15. Surveys Post-Installation Post-Winter Curtailment Season Post-Summer Curtailment Season

16. Participant Feedback Overall satisfaction with the program incrementally increased over the life of the pilot User experience with the temperature/thermostat is the most important factor influencing dissatisfaction levels More participants were aware of the summer events than winter Overall, participants want to help the utility better manage their energy resources Respondents indicated that the equipment installer was an important source of information

17. Costs Capital Costs – meter with gateway, device controller(s), thermostat(s), installation O&M Expenses – data communication costs per meter, repairs/replacements

18. Benefits Participants – Potential energy savings – Individual profiles – Increased visibility – Manage devices from anywhere – Can opt out of events PEC – Reduce energy usage – Lower 4CP – lower costs – Increased customer interaction/satisfaction LCRA – Demand management – Decrease infrastructure/costs ERCOT – Maintain grid reliability – Decrease costs

19. Recommendations Recruiting/marketing – Create a comprehensive marketing campaign – Leverage members want to help the utility better manage energy resources – Emphasize the energy savings, and control through internet – Ensure participants have internet access Installation – Standardize process – Train installers – Welcome package, installer able to answer questions

20. Recommendations Contd Participant education – Communication should refer to reference materials – Consider online video training – Specifically explain control events, and what is expected – Provide details on thermostat usage, and online controls/programming – Periodic releases to manage satisfaction and knowledge – Include energy savings tips – Leverage customer affinity to reduce opt out rates Operations – Monitor opt out rates, minimize impact – Optimize event duration/quantity removed

21. Controllable Load Resource (CLR) Consert certification as an ERCOT CLR – Proof of Concept (POC) Test Phase 1 Regulation Up Service Responsive Reserve Service Non-Spinning Reserve Service – POC Test Phase 2 Primary Frequency Response ICCP Link Automated dispatch Data – CLR Test

22. Live Demonstration http://pec30.consert.com/secure/login http://pec30-utility.consert.com/login

23. Questions?