EnergyConnect, Inc. is a wholly owned subsidiary of EnergyConnect is proud to be an ENERGY STAR PARTNER. George Barnes – Director Business Development

© 2007 EnergyConnect, Inc. 2 Agenda Who Are We? Revenue? What is Demand Response? What are the Types of Participation? How does EnergyConnect Support its Participants? How often do Market Opportunities Occur? The EnergyConnect Automated Solution What is the Process for Participation? Enrollment Process? Value Add?

© 2007 EnergyConnect, Inc. 3

© 2007 EnergyConnect, Inc. 4 Revenue? Assumptions : 35% participation when wholesale prices are between $75/MWh and $125/MWh 70% participation when wholesale prices are between $125/MWh and $150/MWh 80% participation when wholesale prices are above $150/MWh

© 2007 EnergyConnect, Inc. 5 What is Demand Response? Historically – service interruption events deployed by the utility for a reduced retail rate and penalties for failure to comply. Today – Power Grid operators directly rewarding individual retail consumers to shift, reduce, or displace energy usage.

© 2007 EnergyConnect, Inc. 6 EnergyConnect Demand Response Solutions  Price Driven Opportunities Real-Time Notification Day-Ahead Emergency  Event Driven Opportunities Annual Reserve Standby Types of Participation This Page Contains Proprietary Information of EnergyConnect, Inc.

© 2007 EnergyConnect, Inc. 7 Questions?

© 2007 EnergyConnect, Inc. 8 Full-Service  ECI consults with facilities to develop unique bidding strategies  ECI monitors market conditions and daily baseline positions  ECI executes bidding strategies on behalf of Participant when market conditions are met Collaborative  As above, plus facility managers may override predefined bidding strategies when unique building operating opportunities arise Self-Directed  Facility managers directly accesses ECI web-based decision- support and transaction management systems to optimize bidding and building operating strategies to maximize revenue Participant Support

© 2007 EnergyConnect, Inc. 9 Economic incentives to voluntarily use less electricity when wholesale exceeds “retail”. Reductions achieved through curtailment, shifting, and on-site gen. Market Opportunities Wholesale Prices for Dominion August 6 - 9, 2007 Retail Price Wholesale Prices

© 2007 EnergyConnect, Inc. 10 EnergyConnect’s Automated Solution This Page Contains Proprietary Information of EnergyConnect, Inc.

© 2007 EnergyConnect, Inc. 11 Payment Process Meter Data Opportunity Notification Reduce Load Customer This Page Contains Proprietary Information of EnergyConnect, Inc. Monitor pricing Settlement Notification Calculate Baseline

© 2007 EnergyConnect, Inc. 12 Introductory Presentation Preliminary facility assessment  Identification of: Rate Loss factor Load Serving Entity Electric Distribution Company Account Number Monthly Peak ……………… PJM Stamp of Approval Facility Audit Perform any metering services required Calculate CBL Software Training Begin Bid Support and Participation © 2007 EnergyConnect, Inc. 12 Enrollment Process ACCEPTED PRACTACES ECI STRATEGIC DR V1 ECI STRATEGIC DR V2 ECI CLIENT

© 2007 EnergyConnect, Inc. 13 Value Add Retire Energy Efficiency Project Debt Legitimize Capital Investment for advanced control systems Expand Energy Efficiency Projects Accelerate Maintenance Gather Metering & Energy Information Leverage Energy Procurement Services Demand Response will allow any Participant to -

© 2007 EnergyConnect, Inc. 14 Sample of 07 Activity This Page Contains Proprietary Information of EnergyConnect, Inc.

© 2007 EnergyConnect, Inc. 15 Qualifications, capabilities and experience Leading National Provider of Demand Response Solutions Subsidiary of Microfield, Inc.  Public Company (micg)  400+ employees  $70+ million annual revenue EnergyConnect  Price and Event Driven Programs 100+ customers 20,000+ transactions per month Industry Leading software  “We provide a zero cost, risk free, revenue generating opportunity.”

© 2007 EnergyConnect, Inc. 16 Target Markets Higher Education K–12 Health Care Local Gov’t, incl. WWTP State Gov’t Federal Gov’t REITs

© 2007 EnergyConnect, Inc. 17 How do you sign up? Sign EnergyConnect Short form contract – with completed Exhibit A and W9 A copy of your most recent electricity bill or on line access Including –  Rate  Loss factor  Load Serving Entity  Electric Distribution Company  Account Number  Monthly Peak Contact: George Barnes (804)

© 2007 EnergyConnect, Inc. 18 Sample client listing

© 2007 EnergyConnect, Inc. 19 Value Proposition Demand Response Cash Flow Facility Enhancements Load Shedding Load Shifting Generation Profits Revenues Investment Capital Project Debt Retirement Building Control Upgrades Energy Efficiency Projects Accelerate Maintenance Metering & Energy Information Energy Procurement Services Increased Response EnergyConnect uses cash to facilitate total energy management and operational efficiency.

© 2007 EnergyConnect, Inc. 20 SWAM Utilization VA company provides energy information, rate and control consulting services to public and private organizations Westridge Energy Consulting LLC  President – Bob Jennings  Small business  DMBE Registered (Cert No )  Disabled Veteran  Headquartered in Harrisonburg, VA Leverage existing alliance with Westridge Energy to install metering and provide meter data collection services

© 2007 EnergyConnect, Inc. 21 Provide detailed auditing and revenue reporting This Page Contains Proprietary Information of EnergyConnect, Inc.

© 2007 EnergyConnect, Inc. 22 This Page Contains Proprietary Information of EnergyConnect, Inc.

© 2007 EnergyConnect, Inc. 23 This Page Contains Proprietary Information of EnergyConnect, Inc.

© 2007 EnergyConnect, Inc. 24 This Page Contains Proprietary Information of EnergyConnect, Inc.

© 2007 EnergyConnect, Inc. 25 This Page Contains Proprietary Information of EnergyConnect, Inc.

© 2007 EnergyConnect, Inc. 26 This Page Contains Proprietary Information of EnergyConnect, Inc.

© 2007 EnergyConnect, Inc. 27 No-Risk, No-Penalties Participant submits notice at least one hour before participation based upon price expectations  Via EnergyConnect eServices web-site  Automated according to predefined business rules Participant reduces energy use for the event Daily payment based upon the sum of hourly real-time prices x actual hourly load reduction from baseline  Daily sum of hourly payments won’t go negative. “ECI has completed over 16,000 hourly Demand Response transactions this month alone, while our competitors average under 100 annually. ” Real-Time Economic Demand Response

© 2007 EnergyConnect, Inc. 28 Real-Time Economic Demand Response

© 2007 EnergyConnect, Inc. 29 Day-Ahead Economic Demand Response Price Certainty, Planned Outages Participant submits notice including hours, amount of participation, and price sensitive offers  Via EnergyConnect eServices web-site  Automated according to predefined business rules If accepted in Day Ahead Auction Participant reduces energy use for predefined amount and hours at cleared price Daily payment based upon the sum of hourly day-ahead prices x target hourly load reduction from baseline  CSP is charged real-time LMP for the difference between the day-ahead target volume and the actual hourly load.

© 2007 EnergyConnect, Inc. 30 Day Ahead Bid Screen

© 2007 EnergyConnect, Inc. 31 Stand-by Reservation Payments Monthly payments for standing by to reduce energy for up to 30 minutes with 8 minutes notice Minimum load reduction of 1,000 kW (can aggregate smaller load reductions)  On-site generation  Central chillers Currently not available in Virginia Synchronized Reserve

© 2007 EnergyConnect, Inc. 32 Synchronized Reserve

© 2007 EnergyConnect, Inc. 33 Provide consistent timely feedback for qualification of strategic operational initiatives

© 2007 EnergyConnect, Inc. 34 Market Analysis and Opportunity Yellow - $75-$125/MWH, Orange $125-$150, Red >$150 Dec 2006 Day Ahead and Real Time prices reflect the cost to the grid of satisfying excess demand with Peaker Plants. And Aug ‘07

© 2007 EnergyConnect, Inc and 07 Prices well above 05 – Trend? August 06 & 07 prices have continued the trend of being above the comparable period in 05. This translates to a grid under more stress, and greater financial opportunity for Participants.