1. Draft National TDV Values 3/20/09 Contact Information Snuller Price, Partner Energy and Environmental Economics, Inc. 101 Montgomery Street, Suite 1600 San Francisco, CA 94104 snuller@ethree.com (415)391-5100

2. TDV Value Overview Estimates of long-run marginal cost of electricity supply Computed for 8 cities across US climate zones for use in air conditioner appliance standards Cities selected based on range of climates and air conditioner market size Correlated to TMY3 weather data, and an assumed weekday / weekend and holiday day-order of 1991 Methodology similar to California Title 24 TDV values introduced in 2005 Title 24 Update Only publicly available data was used Non-proprietary spreadsheet formulation and documentation available on the web www.ethree.com/National_Time-Dependent_Values.html

3. Climate Zones and Cities Atlanta, GA Chicago, IL Washington DC Fresno, CA Houston, TX New York, NY Phoenix, AZ St. Louis, MO

4. Components of TDV Value ComponentDescription Energy Estimate of hourly wholesale value of energy measured at the point of wholesale energy transaction Losses Losses between the appliance location and the point of wholesale energy transaction Ancillary Services (A/S) The costs of providing system operations and reserves for electricity grid reliability System Capacity The costs of building new generation capacity to meet system peak loads T&D Capacity The costs of expanding transmission and distribution capacity to meet peak loads Environment The costs of SOx, NOx, PM10, and CO2 associated with electricity production

5. Chronological Snapshot of 3 summer days in Washington DC

6. TDV Values in Chronological Order Washington DC

7. TDV Values in Cost Order by Component – Washtington DC

8. Comparison of Actual and TMY 3 Temperatures – Washington DC

9. Comparison of Actual and Predicted System Loads - Washington DC

10. Comparison of Actual and Predicted Energy Prices – Washington DC Note that that the capacity value of the TDVs are not shown in the chart above, and therefore do not capture the extreme peaks.

11. More Information Documentation, spreadsheets, and more information available at www.ethree.com/National_Time- Dependent_Values.html www.ethree.com/National_Time- Dependent_Values.html Contact Information Snuller Price, Partner Energy and Environmental Economics, Inc. 101 Montgomery St., Suite 1600 San Francisco, CA 94104 snuller@ethree.com (415)391-5100