1. November 20111

2.  David Dzierski 713-207-3341 office 281-782-2265 cellular david.dzierski@centerpointenergy.com CenterPoint Energy 1111 Louisiana St. Floor 9 Houston, TX 77002 Attn: David Dzierski November 20112

3.  Golden Energy Services  Jerry Golden – Load Management Consultant  Frontier Associates  Bill Brooks, Kyle Caffey, Brandon Wilson  CenterPoint Energy Distribution Dispatching  Mike Dodd  CenterPoint Energy Contract Administration  Terry Munder November 20113

4.  The Load Management Standard Offer Program (EnergyShare) is a performance-based demand response program that offers financial incentives for curtailing electric load when notified during the summer peak period.  EnergyShare  Load Management  Demand Response  Curtailment Program November 20114

5. CenterPoint Energy metered customers meeting kW thresholds:  Non-residential Distribution level customers  Governmental agencies (all levels)  Educational facilities (all levels)  Other not-for-profit agencies (all levels)  Industrial non-transmission class ___________________ *(Transmission customer sites are NOT eligible unless in the government, education or non-profit category) November 20115

6.  To provide assistance during an ERCOT emergency situation. (EEA2A)  The test curtailment is an excellent way to prepare for a hurricane or disaster.  The Sponsor will be compensated.  A good way to exercise your equipment under load.  It is a good thing to do.  Help David make his goal! November 20116

7.  Aug 27 was hottest day in city history = 109  Avg daily high temps:  June = 97.4  Aug = 102  Sept =95.5  Consecutive 100 degree days = 8 (Aug 26- Sept 2)  Driest summer of all time = 5.6 inch November 20117

8. Program YearMW GoalMW Actual 200812.516.0 200931.533.0 201070.081.5 201178.071.2 avg 2012112.0? November 20118

9.  Proposed78.3 MW  17 Sponsors  181 Sites (meters)  6/9 Test89.2 MW  8/4 EEA2B57.1 MW  8/24 Test67.2 MW  Average71.2 MW November 20119

10. Participant TypeNo. of ParticipantsAvg kW Curtailed Manufacturing1927,830 Hospital86,178 Office11,472 Retail917,092 School3319,238 Water/Waste Water Treat299,408 Total18171,218 November 201110

11.  A Standard Offer Program  Standard Offer = First Come First Served  Pays incentives ($40/kw curtailed & verified ) to participating Project Sponsors  30-minute curtailment notice  Application deadlines and rules will be posted at: http://www.centerpointefficiency.com/ November 201111

12.  $4,500,000  112.5 MW November 201112

13. November 201113  Federal electric reliability councils, including ERCOT, are shown in the map below. EnergyShare benefits not only the local area but also helps to lend mutual support to others served by ERCOT

14. An orderly plan to reduce load during a shortage of generation Procedures for reducing System Demand in emergency situations Provides for maximum possible continuity of service while maintaining the integrity of the ERCOT System Reduces the chance of cascading outages Outlines when and how demand (load) can be curtailed The Energy Emergency Alert (EEA)

15. Level / EventTriggering Event System Operations Actions PUC Powerful Advice Web Site Legal / Corporate Communications Actions Media Notification (after PUC & others notified) Advisory< 3000 MW adjusted reserves Note on "PUCT Daily Report" email (distribution: PUC, ROS listserv [open list]) Conservation Encouraged - Normal Conditions None Watch< 2500 MW adjusted reserves Start RMR units; Instruct QSEs to suspend generation testing; Deploy non-spin reserves; Dispatch quick start capacity Conservation Encouraged - Normal Conditions Notify GridAlert list* if potential for emergency situation. None Peak demand expectation Demand exceeding current records Notify Corporate Communications of high demand expectations Conservation Needed - Power Watch (optional) Notify GridAlert list* if potential for emergency situation. Release to media, if appropriate Firm load shedGrid operations requesting utility to drop load Notify Corporate Communications of firm load shed via emergency notification system Conservation Needed - Power Watch (optional) Notify GridAlert list* with summary of situation Release to media, if appropriate EEA Level 1< 2300 MW adjusted reserves Use capacity available from DC ties; Dispatch uncommitted units Conservation Needed - Power Watch Notify GridAlert list* with summary of situation Release to media, if appropriate EEA Level 2A -- MEDIUM potential for firm load shed < 1750 MW adjusted reserves Deploy interruptible loads (LAARs); Begin block-load transfers of load to neighboring grids Conservation Needed - Power Watch Notify GridEmergency list ** Release to media, if appropriate EEA Level 2B -- HIGH potential for firm load shed To maintain system frequency at 60 Hz or adjusted reserves trending downward or not available Deploy Emergency Interruptible Loads (EILS) if available Conservation Critical - Power Warning Notify GridEmergency list** - plus State Operations Center (SOC) with "High Priority" Release to media, if not already done EEA Level 3To maintain system frequency at 59.8 Hz or greater Instruct transmission operators to shed firm load via rotating outages in blocks of 100 MW Power Emergency - Rotating Outages Notify GridEmergency list** Release to media Cancellation of EEA Level 3 Frequency restorationn/a Conservation Needed - Power Watch Notify GridEmergency list** Release to media Cancellation of EEA Grid conditions normaln/a Conservation Encouraged - Normal Conditions Notify GridAlert list** Update media as needed Energy Emergency Alert (EEA) Communications Matrix

16. Maintain 2,300 MW of on-line reserves 1 2A 2B 3 Maintain 1,750 MW of on-line reserves. Interrupt loads providing Responsive Reserve Service. Interrupt loads providing Emergency Interruptible Load Service (EILS). Maintain System frequency at or above 59.8 Hz and instruct TSPs and DSPs to shed firm load in rotating blocks. Energy Emergency Alert (EEA) Process in the ERCOT Protocols EEA procedure in the ERCOT Protocols defined by levels

17.  CenterPoint Energy electric customers and 3 rd Party entities representing distribution level or other governmental, educational, and non-profit customers.  Project sponsors must have a normal aggregate peak demand of 750 kW or more, and with each participating site averaging 250 kW peaks and capable of curtailing at least 100 kW.  Project Site(s) must be equipped with a CenterPoint Energy Interval Data Recorder (IDR) meter. November 201117

18.  22 digit ESID number on electric bill  ESID 1008901003455779101009  The 1 st seven digits identify the utility  1008901 = CenterPoint Energy  If you are not sure, call David. November 201118

19.  Must have an IDR meter to participate.  Cost of new IDR meter = $365 (minimum)  Additional monthly customer cost to read meter = $84  Cost of IDR meter is customer’s responsibility  Smart Meters  Currently being installed within CNP service territory.  Contact Kevin Kulhanek @ 713-207-3444 to schedule an IDR meter installation November 201119

20.  Substantial backup generation  Underutilized cogeneration capacity  Blower motors as in wastewater plants  Loads that can be shifted off peak for brief periods  Alternative drive systems (such as steam absorbers, gas-drive motors)  Unnecessary daytime lighting, air handling, elevators (limited applicability) THESE ARE EXAMPLES ONLY..ANY EFFECTIVE ELECTRIC LOAD SHIFTING CAN QUALIFY. November 201120

21. November 201121 Pipelines (alter pumping schedule) Water & wastewater (pumping/blowers) Commercial (with stand-by generators) Gen-sets and angle-drive (power substitute) Pumps and Motors (alter schedule) Electric Furnaces (slow processes) Chillers (“coast” through peaks/direct drive)

22.  The peak demand period is June 1 through September 30, 1-7 p.m. weekdays, excluding federal holidays.  30 minute notice for all curtailments!  One (1) or two (2) Scheduled Test Curtailments from 1 - 3 hour’s duration.  A maximum of four (4) Unscheduled Curtailments of 1 to 4 hours of duration each year.  Maximum of five curtailments totaling 19 hrs./yr.  Trigger = ERCOT EEA2A November 201122

23. 1. Application 2. Contract 3. Performance Period 4. Measurement and Verification 5. Incentive Payments a) $40/kw at the completion of the summer peak period b) Potential for bonus payment November 201123

24.  Electronic applications will be accepted beginning November 8, 2011 beginning at 10:00 am CST.  Electronic applications will be submitted on December 8, 2011 beginning at 10:00 am CST.  Frontier Associates will provide instructions on how to access and complete an application.  Sponsors who have signed a contract will not be required to re-sign the contract but will be required to submit a new application each year! November 201124

25.  November 8 – Begin filling out applications.  December 8 – Submit applications beginning at 10:00 am CST. You must submit an application to be considered for participation! November 201125

26.  Submitting an electronic application does not guarantee that you will be approved to participate in the 2010 Load Management Program.  CenterPoint Energy will review and approve qualified applications. (service territory, kw reduction min., past performance, etc)  I am going to use a very sharp pencil!  We will not oversubscribe the program goal. November 201126

27.  The project Sponsor will be required to sign CenterPoint Energy’s Load Management Standard Offer Program contract.  W-9  MWBE Certification  Electronic Funds Transfer Authorization  Contract questions – Terry Munder 713-207-6398 November 201127

28.  Payments  $40/kw at the conclusion of the summer peak period + the potential for a bonus payment. ▪ (mid October - early November)  Checks will be issued when initiated in SAP by the Program Manager!  (in lieu of net 30 days) November 201128

29. November 201129 The Bonus Payment will not exceed $40/kw. The Bonus Payment will be paid at a pro rated share not to exceed the total budget.

30.  FOR MORE INFORMATION: To access the Program Manual, Application instructions and sample contract, please go to the following web site :  http://www.centerpointefficiency.com/ http://www.centerpointefficiency.com/  For answers to specific questions about your facility or potential participation, contact David Dzierski at 713.207. 3341, or by e-mail at: david.dzierski@CenterPointEnergy.com david.dzierski@CenterPointEnergy.com November 201130

31.  Please welcome Kyle Caffey (Frontier Associates)  A Demonstration of the electronic application process November 201131