1. “Got Grid? Making the Connection with Consumers” Penni McLean-Conner October 3, 2011

2. NSTAR Got Grid Topics…. Massachusetts perspectiveMassachusetts perspective Consumer perspectiveConsumer perspective Going forward implicationsGoing forward implications Got Grid Topics…. Massachusetts perspectiveMassachusetts perspective Consumer perspectiveConsumer perspective Going forward implicationsGoing forward implications

3. Massachusetts has some challenges. Strong low income advocacy Resistance to pre-pay Resistance to automatic disconnect Low penetration and usage of AC Low consumer interest Fractured value chain (non-integrated market) Large penetration of traditional AMR

4. Massachusetts Time Line 2009 201120102012 Green Community Act passed 07/02/08 2013 NSTAR Pilot approved 03/31/09 2014 NSTAR Pilot filed 03/15/09 NSTAR Pilot soft launch 06/01/10 NSTAR Pilot full launch 06/20/2010 MA Utilities Interim reports due 03/2012 Pilot Evaluation 03/2014 Massachusetts is approaching smart grid deliberately. Pilot Complete 12/2013

5. 5 Copyright Smart Customer Insights, LLC 2011. All rights reserved. The Customer is Already Smart......And Getting Smarter!

6. Consumer expectations are unplugged from current state smart grid.  Real time data  Granular data with analytics  Seamless enrollment process  Seamless installation process  Ongoing energy management consultation  Large decreases in their bills  What customers think they will like may not be what they actually like  No inconvenience

7. NSTAR is responding in our pilot by: Instituting a customer Loyalty Program Revamped enrollment and installation process Utilizing a more flexible thermostat from Tendril Expanding to other locations Call center call-outs for customers who unplug their devices Talking about smart grid in ways that is meaningful for the customer 7

8. Got Grid?

9. Got Grid? Making the connections in the future. Will consumers adopt the energy diet? Can we offer smart grid infrastructure that is optional and movable? Will whole house analytics ever be enough?

10. “Got Grid? Making the Connection with Consumers” Penni McLean-Conner October 3, 2011