1. Smart Grid Research Consortium November 9, 2010

2. DM Goals/Objectives User adoption & consumer engagement Prove consumer behavioral change Prove consumer acceptance of utility control Reduce overall consumption Reduce consumer cost Curtail peaks & determine shared value of created energy reserves with LCRA

3. DM Strategy Researched DM solutions via RFI process Initiate two DM pilots in 2010: Consert Inc. & LCRA (12 months) Incenergy, LLC (6 months) Parallel test of 5 GE AMI meters Continued market research

4. Consert & LCRA Pilot 250 service locations Approx. 240 residential, 10 small commercial 12 month pilot Providing thermostat, water heater LCD, pool pump LCD Member & utility control via web portals AMI meters – GE 2S240 volt I-210+c (gateway under glass) Verizon Cellular backhaul from meter to server 5 min data intervals provided to consumer

5. Member Portal

6. Utility Portal

7. Incenergy Pilot 25 residential service locations 6 month pilot Providing thermostat, portal, & phone app Member control, no utility control in pilot

8. Participant Recruitment Sent offer via email/letter to participant pool Participant completes online profile survey indicating interest Screen participants based on criteria Send confirmation email to participants Participant completes online consent & baseline survey Response Rates = Consert = ~15% Incenergy = <5% Consert Target = 2,000NEM users + 600 on single feeder Incenergy Target = 265 NEM users Sample Criteria: # in household % of time at home High-speed internet Pool pumps Electric heat & cooling Size of home Homeowner Email containing link to online consent form and survey

9. DM Pilot Operations Installation & Scheduling Consert: Bluebonnet installs meters CapGemini schedules & installs HAN Email & text reminders sent to participants Incenergy: No meter install Incenergy/DSI schedules & installs HAN Monitoring and Controlling LCRA-triggered events (4CP, MCPE, EEA, LCRA load) Bluebonnet-triggered events

10. Communications & Marketing Texas Coop Power Articles Showcase 2 member experiences for 12 month period Host member orientation meetings prior to installations Web portal/NEM Conduct surveys & focus groups

11. Future Strategy Commercialize DM in 2012 Available to interested members Cost/incentives TBD Select AMI vendor in 2011, begin deployment in 2012