1. Sustainability Leadership Forum - Dallas
Energy Efficiency and Demand Management Ed Reyes
©2012 Comverge – Confidential and Proprietary

2. Agenda Comverge Overview and Introduction
Energy Efficiency & Energy Demand Management
Energy Efficiency – The Minimum
Energy Demand Management
Demand Response (DR)
How Does Demand-side efforts Advance Sustainability?
Discussion Questions
© 2012, Inc. Confidential and proprietary.

3. Comverge Overview
© 2012 Comverge, Inc. Confidential and proprietary.

4. Comverge – Intelligent Energy Management

5. Comverge is the leading provider of Intelligent Energy Management solutions
Key highlights
Revenue breakdown (2011)
Headquartered in Atlanta, GA
520+ employees
30+ year history of innovation
Privately held by HIG Capital
2011 sales of $136 million
5+ million devices installed
4,560+ MW under management
C&I 43%
Residential 57%
Segments
Megawatt breakdown (2011)
Contracts
2011 = 4,564 MW
Comverge is uniquely positioned to capitalize on energy growth trends in both the residential and C&I DR markets
Note: 2010E excludes impact from Energy Efficiency contracts
© 2012 Comverge, Inc. Confidential and proprietary.

6. Comverge is consistently the energy management provider of choice
Established incumbency
PPS CHART #3
USE RIDER A (next page)
Multi-year, VPC & turn-key contracts
Strong business serving strategic customers
© 2012 Comverge, Inc. Confidential and proprietary.

7. Demand Response is our Business
© 2012 Comverge, Inc. Confidential and proprietary.

8. Typical Comverge Utility Project Components
Operational Excellence
Close coordination between Marketing, Call Center and Installation team
Make constant adjustments to ensure program adoption and that the Client’s goals are met
All systems managed through IntelliSOURCE
Marketing
Hardware
Installation & Service Calls
Call Center
Program Management
IntelliSOURCE
Communications
Infrastructure
Measurement & Verification
Our Customers take advantage of Comverge’s deep understanding of end to end DR solutions
But the Texas Market IS Different
© 2012 Comverge, Inc. Confidential and proprietary.

9. Texas Electricity Market
Deregulated in 2002
Functionally Disaggregated
Generation – Coal, Nuclear, Nat Gas, Wind & Solar
Transmission and Distribution – Wires Companies
Retail Electric Provider – Owns the customer relationship
Energy Only Market – Designed to incentivize New Entry through Scarcity Pricing Mechanism–Currently $4500/MWh
Challenging value propositions for Capital Investment perspective
“3rd Party” participants value chain is distributed across the disaggregated functions

10. Energy Efficiency and Energy Demand Management
© 2012 Comverge, Inc. Confidential and proprietary.

11. What is the difference between Energy Efficiency and Energy Demand Management and Demand Response?
Energy Efficiency is the goal or objective of a collection of activities and efforts to Reduce the amount of energy required to produce, deliver and operate products and services.
Energy Demand Management is a change in behaviors or operations that Reduce the demand for energy at a given time.
Demand Response is a change in electric usage by demand-side resources…Customers…from their normal energy usage patterns in response to electricity price changes, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.
Common Thread – Reduction of Energy Use
What’s Different? the Money

12. What does Energy Efficiency look like?
There are a wide variety of processes and equipment to save energy.
Energy efficiency can generate results around the clock.

13. What does Energy Demand Management look like?
Energy Demand Management looks to processes and equipment can be scheduled differently
Those activities that may be performed at times other than when everything else is running full out
It attempts to smooth the curve and increase the Load Factor
Generates cost savings by lowering the effect of the peak

14. What does Demand Response look like?
Demand Response is an externally driven activity that is performed only during specific times “events”
It can involve one or a collection of energy reduction activities
Generates Cost savings through Incentives
The activities can occur through manual processes or though a fully automated response
The primary difference is “Response” to an outside stimulus/notification

15. What if you employed all these efforts?
Just because you’re performing one doesn’t mean you can’t do the others

16. Energy Efficiency
© 2012 Comverge, Inc. Confidential and proprietary.

17. Energy Efficiency
Energy Efficiency is the goal or objective of a collection of activities and efforts to Reduce the amount of energy required to produce, deliver and operate products and services.

18. Energy Efficiency – The Minimum
Lighting Controls
Lighting
LED’s
Incandescent
Compact Fluorescent
T-5
LED’s In Fluorescent Tubes
T-12 or T-8
**How much do you factor for Maintenance?

19. Energy Efficiency – Advanced Systems
High SEER HVAC Equipment (14-16)
High Efficiency Motors
VFD’s

20. Energy Demand Management
© 2012 Comverge, Inc. Confidential and proprietary.

21. Energy Demand Management
Energy Demand Management is a change in behaviors or operations that Reduce the demand for energy at a given time.

22. Energy Demand Management
First Step is Disaggregating the Load
Requires Metering/Monitoring Equipment
Understanding of the Facilities, Processes and Operations
Define Control Strategies
What is or needs to be ON and when?
Demand Meter Monitoring and Automated Control Systems working in Concert

23. Demand Response
© 2012 Comverge, Inc. Confidential and proprietary.

24. Demand Response
Demand Response is a change in electric usage by demand-side resources…Customers…from their normal energy usage patterns in response to electricity price changes, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.

25. Demand Response First Step is Understanding the Programs Available
Emergency Response Service
TDSP Standard Offer Programs (Load Management)
Understanding of the Facilities, Processes and Operations
Determine Individual Load Reduction Measures
What is or needs to be ON and when?
What loads can we eliminate or delay for a set period of time?
Develop a detailed Demand Response Strategy and Implementation Plan
Must have Resources assigned and accountable for execution
Or the process can be automated through a combination of Hardware and Software notification and controls systems

26. Typical Demand Response Systems and Programs for Residential & Small Commercial Customers
Smart Switches
Air Conditioning
Pool Pumps
Strip Heaters
Hot Water Heaters
Programmable Communicating Thermostats
Internet Accessible/Programmable
Behavioral Modification Programs
Biggest Energy Saver
Corporate/Neighborhood Based Competitions
Enhanced Customer Experiences through Education
Bottom-line….your Company can be a Catalyst

27. How Do Demand-side Efforts Advance Sustainability?
©2010 Comverge – Confidential and Proprietary

28. Some Context General Resource Adequacy issues in Texas
Demand Response is used to relieve constraints on the grid
Constraints on the grid produce High Energy Prices
High Energy Prices will attract investment in new Capacity
But….Highly efficient new Capacity is more desirable than less efficient new capacity
So let’s build new highly efficient generation capacity

29. The Peak Load Drives the Prices
Seven days with prices > $2500 in Aug 2011
Reserve Margin nearing 7%
Only one new Power Plant announced in 2012

30. Why is that Important?
Few hours exist each year from which to generate Margins necessary to create earnings streams for investors
What gets built for those few hundred hours per year?

31. The Generation Options
There are external factors that make the Peaker necessary
Operating Reserves, Load Following, Intermittent Renewable Resources
But flatten the curve (more hours at higher prices) and the market will become more attractive for the more efficient unit.
Existing Peakers will continue to serve those hours

32. Demand Response – A Manageable Opportunity
About 100 hours per year that Scarcity Pricing events occur
≈ 1.1% of the time
Demand Response can help keep the System Peaks lower longer – Making better use of intermediate resources
Guard against price
Rewards those who are willing/able to relieve their contribution to the system peaks and charges those who won’t/can’t
In the Long Term will provide price signals that customers can make decisions on…in near real-time
Participation in Demand Response programs is low risk and provides an excellent opportunity to reduce your energy impacts……and costs

33. Discussion Questions Are you participating? How?
How might you support and encourage employees to participate in Demand-Side Programs?
What is available for the Mass Markets?
How do we market & monetize our participation and results?

34. Thank You
© 2012 Comverge, Inc. Confidential and proprietary.