National Association of Regulatory Utility Commissioners (NARUC) Lou Cedrone Summer Meeting July 15, 2007

CON EDISON WHO WE ARE

Regulated Business Service Area 3.2 million electric customers 1.1 million gas customers 1,800 steam customers 13,575 MW summer system peak 36,000 miles of overhead transmission and distribution lines 93,000 miles of underground transmission and distribution lines 4,300 miles of gas mains 105 miles of steam mains and lines Con Edison of New York

Service Area Peak Load Forecasts 2007 MW

NYC Growth HUDSON YARDS DEVELOPMENT ATLANTIC YARDS / DOWNTOWN BROOKLYN CITIFIELD – NEW YORK METS WORLD TRADE CENTER 2ND AVE SUBWAY # 7 LINE EXTENSION NEW YANKEE STADIUM HOWLAND HOOK MARINE TERMINAL STATEN ISLAND

Customer Usage Patterns Personal Home Computers About 77% of households have a home computer From 2002 to 2006, the number of computers has grown by more than 275,000 The number of computers is expected to grow by 400,000 units by 2011 Personal Computer ~ Home Entertainment Center ~ Plasma TV ~ PDA Devices ~ Cell Phones

Customer Usage Patterns Air conditioners 90% of households have air conditioning From 2002 to 2006, the number of room air conditioners has grown by more than 900,000 The number of room units is expected to increase by 875,000 units by 2011 The number of central air conditioners has grown by 50,000 units The number of central units is expected to increase by 40,000 units by 2011

Times Square 6

Demand Response Programs Design Cost-effective Verifiable (Summer Peak) Acceptable to customers

Demand Response Programs NYISO Programs Installed Capacity Program (ICAP) (Mandatory) Emergency Demand Response Program (EDRP) (Voluntary) Targeted Demand Response Program Con Edison Programs Distribution Load Relief Program (DLRP) (Voluntary) Enhanced DLRP with Summer Reservation Payment (Mandatory) Direct Load Control (DLC)

Demand Response Program Customers EnrolledMW ICAP1092 *321.9 MW * EDRP127 *126.2 MW * DLRP13585 MW DLC16,74027 MW * NYISO registration

Demand Response Programs Why we are successful? New Technology Education/Awareness Relationships Customers Trade Allies Government Associations New York City Westchester NYSERDA

Demand Response Programs New Technology Stepping into the Future Direct Load Control Advanced Metering Infrastructure Energy Management Software EPRI

Demand Response Programs Con Edison investing in New Yorks future Conserve energy - Go Green Education/Awareness

Customer literature Advertising, print, and radio Demand Response Programs Education/Awareness

Community meetings Press coverage Summer conferences Demand Response Programs

NYSERDA Con Edison Systemwide Program Metering Enabling technology Joint Marketing Seminars Brochures Web