1. Proprietary & Confidential “Transforming at the Speed of Value” Steven Hauser Vice President, GridPoint President, The GridWise Alliance August 4, 2008 Smart Grid Progress

2. Proprietary & Confidential Integrating every home and business into the Smart Grid. Making the Smart Grid a reality by aligning the interests of electric utilities, consumers and the environment. Mission Vision Values Turning resources at the edge of the grid into valuable operational assets. GridPoint GridPoint provides a comprehensive platform for greatly enhancing visibility and control for both utilities and consumers of the assets at the edge of the grid. 2

3. Proprietary & Confidential The GridWise Alliance 3

4. Proprietary & Confidential

5. A Smart Grid is when… … your teenage daughter, who snuck out last night with the PHEV, plugged it in to recharge this morning and pressed “override” on your “smart charger” – paying $1.00 per kWh for daytime electricity. …luckily, your rooftop PV is providing most of the energy to recharge, and the extra battery in your garage is working overtime to provide regulation services to the utility at a premium rate…resulting in an overall net zero cost to you....the grid provides value to the local utility …the grid provides value to the consumer …the grid provides value to the local economy …the grid provides value to the environment 5 A grid is smart when…

6. Proprietary & Confidential The Grand Challenges…  Transfer all traditional capacity reserve requirements to the demand side  Increase overall asset utilization by at least 10%  Ensure that all critical loads are served 100% of the time  Integrate clean energy technologies to reduce CO 2 intensity by at least 30%  Proactively mine all utility and consumer efficiency improvements  Accommodate a penetration of more than 30% PHEVs 6

7. Proprietary & Confidential SYSTEM CAPACITY 1,067,019 MW AVERAGE SYSTEM CAPACITY 602,585 MW Capacity Challenges 15 % RERSERVE MARGIN 1,277,072 MW

8. Proprietary & Confidential HOURS 8 Capacity Challenges (cont’d)

9. Proprietary & Confidential The promise of wind… “…balancing-energy market prices in ERCOT's four market zones have ranged from negative territory in the west, where wind-generated power is abundant, to the market cap of $2,250 per MWh and even higher during times of transmission congestion.” - Reuters, 5 June 2008 2007 2008 (1 st half) Data source: ERCOT 9

10. Proprietary & Confidential Power Reliability dailymail.co.uk Boston Globe 10

11. Proprietary & Confidential Power Quality 11 Visibility at the endpoint provides distributed intelligence for monitoring and correcting grid power quality.

12. Proprietary & Confidential Energy Efficiency Services … While on vacation you receive a message that your hot water heater has been running full on since last night. Your “smart energy manager” dispatches a field service technician and discovers a broken water pipe. The utility shuts off your water heater remotely and the technician on site turns off the water, saving you several days of wasted consumption and property damage. 12

13. Proprietary & Confidential PHEV Smart Charging 13 Utility managed smart charging of PHEVs with measurement and verification to reduce stress on the grid during peak periods and enable differentiated pricing – regardless of when the car is plugged in

14. Proprietary & Confidential CONTROL Building the Smart Grid FOUNDATION / INFRASTRUCTURE VISIBILITY CAPACITYPOWER QUALITY & RELIABILITY LOAD EFFICIENCY OPERATIONAL EFFICIENCY CLEAN TECHNOLOGY AMR AMI Self-Healing Grid Outage Management Ancillary Services Home & Building Automation Energy Management Systems Customer Portals Time Differentiated Rates Distribution Automation Renewables Integration Grid-Interactive Vehicles REC Markets Load Curtailment Demand Response Advanced Demand Management 21 st Century Smart Grid Today Supply & Demand Self-Optimization 14

15. Proprietary & Confidential 15 Perspectives on the Smart Grid

16. Proprietary & Confidential GridWeek 2008 16

17. Proprietary & Confidential