ON IT 1 Con Edison Energy Efficiency Programs Sustaining our Future Rebecca Craft Director of Energy Efficiency

ON IT 2 Introduction Sound energy management is even more crucial during this time of rising electricity demand and tight, but adequate, supply. Con Edison is promoting incentive programs for all customers who are users of electricity. The programs will help to defray costs by rewarding customers with financial incentives.

ON IT 3 Energy Efficiency – Initiatives Federal Energy Legislation – tax incentives and stimulus money New York State 15X15 – reduce energy use by 15% of forecasted levels by 2015 New York City PlaNYC 2030 – reduce CO2 emissions 30% by 2030 New York State Energy Research and Development Authority – efficiency and demand reduction programs

ON IT 4 Energy Efficiency Programs Con Edison Targeted Demand Side Management Program – Defers capital investment for T&D system load relief – 38 networks – 194 MW reduction contracted through 2012 – May contract for up to an additional 15MW Proposed New MW Reduction Programs – Support New York State 15 x 15 Plan – Programs directed at residential, commercial and industrial customers

ON IT 5 Proposed New Energy Efficiency Programs Submitted an integrated portfolio of 11 programs as part of a 500 MW load reduction in PSC Energy Efficiency Portfolio Standard proceeding – Proposed energy reduction targets of 800,000 MWh; 187 MW Coincident Peak and 213 MW Demand – Con Edison to become a key provider of EE services to customers – Programs expected to reach 60,000 participants – EE programs to be integrated with Targeted DSM and Demand Response

ON IT 6 Con Edison Proposed Portfolio Continuum of energy efficiency actions - facility review and analysis, implementation and verification and evaluation Direct installation - low-cost on-site energy surveys, direct installation of free efficiency measures and recommendations for more extensive energy efficiency upgrades Prescriptive rebates – cost-effective measures offset installation expense of common, high-efficiency technologies Custom programs - comprehensive, whole-facility approach, or efficiency upgrades for more complex systems or uncommon technologies

ON IT 7 Small Business Direct Install Program Description: – Rebates at 70% of installed cost, plus free measures – Free energy survey – Direct to NYSERDA or other CE programs if applicable Eligible Business Customers: – Businesses under 100kW – SC 2, 4, 9, All existing buildings – Segments include small office, restaurant, retail, grocery, etc. Eligible Measures: – CFL change-outs, LED Exit signs, LED refrigerator lights – HVAC retro-commissioning, programmable t-stats – Vending machine controls, water pipe insulation Contact Information: or at

ON IT 8 Natural Gas Programs Energy Efficiency Benefits – Financial incentives – Reduces carbon emissions – Upgrades technology Con Edison Customized Program for Oil Burning Customers – Incentives to defray customer conversion costs – Eligibility based on financial analysis

ON IT 9 Targeted Demand Side Management Goal – Defers capital investment for T&D system load relief – Permanent energy usage reductions Current Enrollment – 38 targeted networks/load areas – 194 MW reduction contracted from 2005 through 2012 – Additional MW to be under contract by March 31, 2009 – currently accepting proposals – 70.4 MW have been installed and verified

ON IT 10 Eligible Measures Energy Efficient Lighting High Efficiency Motors Clean Distributed Generation High Efficiency Refrigeration Alternative Fuel Water Heater (Electric to Other conversion) Thermal Storage for On-peak Cooling High Efficiency Air Conditioning – Electric to Electric – Electric to Gas – Electric to Steam NOTE: Additional measures may be submitted, subject to Con Edison’s approval

ON IT 11 What is Demand Response? Through Demand Response programs, participating customers commit to reduce their electricity usage at critical times on the electric system. Participating customers can receive financial incentives or free equipment for participating in Demand Response programs.

ON IT 12 What Demand Response Programs are available to Con Edison customers? Con Edison Programs – Distribution Load Relief Program (DLRP) – Direct Load Control Program (DLC) NYISO Programs – Installed Capacity Program (ICAP) – Emergency Demand Response Program (EDRP)

ON IT 13 Con Edison Program Details Distribution Load Relief Eligible to electric customers who can reduce usage by at least 50 kW Aggregators (Demand Response Providers) who can reduce usage by at least 100 kW Customers are required to provide load reduction for no less than four hours during any called emergency event Voluntary or Mandatory enrollment options are available Participating customers receive financial incentives and a free web based demand monitoring program Mandatory Program runs from May 1- October 31 Customers may choose to enroll through Con Edison or a Demand Response Provider Customers specify the amount of load they can reduce during an event Customers or DR Providers are notified via phone and by Con Edison at the time of an event Two hours advanced notification is given

ON IT 14 Con Edison Program Details Direct Load Control – Eligible to small business and residential central air conditioning customers with peak demand of less than 100kw – Upon enrollment Con Edison will install a free programmable thermostat that will allow customers to adjust their temperature manually or remotely via the Internet Customers will receive a $25 or $50 Thank You Gift Con Edison can communicate with the thermostat to cycle the a/c compressor - on and off to reduce demand on our electric system when needed – The program has been in effect since 2002 and continues to expand