© EnerNOC Inc. Managing Energy Price Risk in PA AFCOM Mid-Atlantic December 10, 2010

2 Agenda Regulatory Overview Market Conditions Product Options PLC Update Q&A

3 Background – Deregulation 3 Market previously served only by utility is now opening to competition Generating and selling energy are separated from the businesses of transmitting energy and operating grids Customers now have the option of purchasing electricity from a supplier other than their utility Financial product that alters the rate per kWh Utility will continue to be responsible for Transmission & Delivery Pennsylvania is a Deregulating Electricity Market

4 Reg Conditions Placeholder

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7 Managing Price Risk – Purchasing Options 7

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9 Background - The Impact of Capacity & PLC Every customer’s supply cost includes charges for unforced capacity (UCAP) and transmission capacity (Trans CAP). In competitive supply markets, the capacity charges are very visible on the supplier’s energy bills. In regulated territories*, the capacity charges are generally embedded in the generation charges (*note: Pennsylvania markets opening in 2010 or 2011 are impacted, too) 2010 PJM Hours--UCAP 7/7/10 Hour Ending 17 7/6/10 Hour Ending 17 7/23/10 Hour Ending 17 8/10/10 Hour Ending 17 8/11/10 Hour Ending 17 Estimated Value of PLC approximately $46,000/MW approximately $56,000/MW

10 Conclusions – Key Take Aways! 1.Rate caps are expiring as early as January, 2011 and new rates will reflect market conditions. 2.Market currently at historic lows based upon economic crisis. 3.Determine if you have the time, resources and expertise to manage process on your own. 4.Buy forward to capture market conditions and gain control of costs. 5.Manage Capacity charges during the summer of 2011 can save your facility ~$56,000 per MW on your 2012/2013 bill 6.Properly structure electric supply agreement to capture avoided PLC costs 10

11 Brian Power Senior Manager, SupplySMART 68 Southfield Ave, Suite 215 Stamford, CT (203)