1. Presentation for: Energy Advancement Leadership Conference Demand Response Programs & Technologies Frank A. Magnotti President, Global Sales & Marketing President, Comverge Enterprises November 17, 2004

2. Confidential Information The “Peak Demand” Problem

3. Confidential Information “Old-Think” ADD DISTRIBUTION - Build more lines - “Punt” ADD SUPPLY - Build more infrastructure - Buy wholesale Supply constraints PEAK LOAD CHALLENGES Unhedgeable Transmission congestion bottlenecks

4. Confidential Information “New-Think” Supply constraints PEAK LOAD CHALLENGES Unhedgeable Transmission congestion bottlenecks ADD SUPPLY - Build more infrastructure - Buy wholesale PROACTIVE DEMAND MANAGEMENT - Cost effective - Advanced technology and business models ADD DISTRIBUTION - Build more lines - “Punt” - “Cleaner” than renewables - No line loss or degradation

5. Confidential Information Question! Are Demand Response and Load Management programs technologically, environmentally and economically viable? Are they large enough to make a difference?

6. Confidential Information Programs Greater than 100 MW Southeastern Region FPL; FPC; Oglethorpe; Duke; Gulf Power Northeastern Region PEPCO; BGE; PSEG; JCPL Midwestern Region ComEd; Buckeye; NSP; DTE Western Region SCE; SMUD Comverge is the supplier to over 90% of these Programs – Five Gigawatts Major Turnkey Virtual Peaking Capacity (VPC) Programs Utah Power, SDG&E, HL&P, ISO-NE I, ISO-NE II Comverge is the owner/operator of 100% of these Programs – 300 Megawatts Comverge’s Large Scale Programs

7. Confidential Information Real Time TOU Flat None RATES CONTROL BY CONSUMER Full Maingate™ Home SuperStat™ Maingate™ C&I 6DiNET TM DCU One-Way Load Control Bi-Directional Load Control & AMR Advanced C&I Metering Virtual SCADA & Real-Time Systems 5,000,000 INSTALLED TOU/CRITICAL PRICING 120MW 6,500 METERS 100MW Product Spectrum

8. Confidential Information Positive Environmental Impact

9. Confidential Information Traditional Model: Direct Sale to Utility Hardware and Software Purchase Mass marketing campaign Installation Maintenance Finance Utility accepts all project risk Virtual Peaking Capacity (“VPC”) Business Solution Utility ONLY pays for available capacity Comverge provides complete turnkey solution Comverge accepts all project risk Structured as a long term “power purchase type” agreement Two Comverge Load Management Models

10. Confidential Information VPC Programs First Non-Utility Residential DLC Program Acquisition of HL&P DLC Program 60 MW First Major VPC Contract Utah Power 90 MW *Second Major VPC Contract San Diego Gas & Electric 70 MW *Third Major VPC Contract ISO-NE 48 MW *Fourth Major VPC Contract ISO-NE 12 MW * Bid and Won in an All-Source Competitive Bid (Supply & Demand)

11. Confidential Information Overview Demand Response and Load Control Programs are: Technologically Viable Environmentally Viable Economically Viable and Large Enough To Make a Significant Impact as Part of a Portfolio Approach in an Integrated Resource Plan.

12. Confidential Information Thank you! For our high school and college students in the audience – I would like to encourage entering this exciting and rewarding field! Any questions??