1. National Town Hall Meeting – ADS July 2013 Demand Response and Energy Efficiency – Avoiding Dysfunction in the DSM Family (or better yet, find pot of gold at end of rainbow)

2. Challenges to Integration Regulatory landscape: regulators see these as different resources and regulate separately Legislative authorization: EE is often a specific legislative requirement, but DR is a grid supply Internal organizational structures: utilities separate out delivery of these resources into different groups Few private sector contractors deliver both

3. Is the result: Dysfunction? DR EE

4. We are in the same sandbox Customers UtilitiesRegulators DR EE

5. Good Example: ISO NE Forward Capacity Market

6. Our products interact with each other- whether we like it or not Electric consumption DGDREE

7. Ratepayer EE program model Customers do not have the resources or focus to meet policy goals: Justification for incentives

8. DR: original value proposition Assumption: the only value is system benefit, so deployment and payment is only within energy supply system -Customers share in value through payments to endure a negative impact: decreased comfort or productivity

9. Changing landscape Time Variable Rates New technology can provide both EE and RE (and customer amenity value) together (see NEST thermostat) DR and EE both go through cycles of underlying demand but not always the same cause or timing Smart meters/Capacity Markets/environmental policies expanding

10. Questions Is there a value proposition for a combined package to the same customer? –cost savings –integrated technology –clarity of message to the customer Are barriers to adoption similar or different with EE and DR?

11. Questions Will Smart meters really change the opportunity for DR and EE? Is there a fundamental difference between System wide DR vs. Distribution feeder targeted DR with respect to EE integration? Who is the key target for better marketing and education? Customers, Regulators, tech companies or the utility itself

12. Questions What is the vision for the future? What are the barriers to getting there? Do we have any success stories of fully- integrated programs? –ISO NE –EnerNOC –Marshfield Energy Challenge