1. Perspectives on Demand Response Rick Sergel President & CEO, NERC Demand Response Town Meeting June 2, 2008

2. About NERC The electric industrys self-regulatory organization for reliability Balances the interests of all stakeholders Represents industry consensus Independently acts in the best interest of reliability International charter lending government support and oversight to SRO activities, ensuring that the best interests of society-at-large are represented Federally recognized Electric Reliability Organization in the U.S. Agreements in place with several Canadian provinces and developing these agreements in others

3. About NERC: Mission Develop & enforce reliability standards Assess current and future reliability Analyze system events & recommend improved practices Encourage active participation by all stakeholders Pursue mandatory standards in all areas of the interconnection To ensure the reliability of the North American bulk power system

4. Demand Response & Reliability Demand Response & Interruptible Load play a role in recovering from many system disturbances Aids in restoration Allows time to bring additional resources online Relieves local congestion

5. Demand Response Contributes

6. Peak Demand Rising 10% Rise 20% Rise

7. 20% More Resources Needed Generation Transmission Distribution Demand Response Efficiency Resource Management

8. Thank you