1. Net Metering Fall 2009 Customer Meetings

2. What is Net Metering?  Net metering allows the meter to “run backwards” and record generation in excess of a customer’s load. That excess is used to offset the customer’s requirements.

3. What Net Metering is NOT:  Net metering is not intended to create a significant amount of excess electricity being sold back to the utility  In order for a non-residential demand customer to qualify for net metering, the nameplate rating of the generator is capped at the past 12 month’s peak demand.

4. What Technologies Qualify for Net Metering?  Net metering is allowed for qualifying customers who install generators that are:  Photovoltaic  Wind  Farm Waste  Net Metering will soon be available to residential customers installing micro CHP and fuel cell generators  No other generation technologies qualify for net metering (ie gas fired cogen, biomass, methane, etc)

5. New York – Solar, Farm Waste and Wind Net Metering Rules As of July 1, 2009 Eligible Renewable/Other Technologies: Solar (PSL 66-j)Farm Waste (PSL 66-j)Wind (PSL 66-l) Applicable Sectors: Residential / Non-Demand Commercial Demand Commercial Farm-Based Residential / Non-Residential Farms Residential / Farm- Based Non-Demand Commercial Demand Commercial Limit on System Size: 25 kW Residential 12 kW Commercial Up to 2,000 kW 1 500 kW 25 kW Residential/ 500 kW Farm-Based 12 kW Commercial Up to 2,000 kW 1 Limit on Overall Enrollment (2) 1.0% of 2005 Demand per IOU (65,360 kW for NMPC) 0.3% of 2005 Demand per IOU (19,608 kW for NMPC) Treatment of Net Excess: Residential - net excess will roll over monthly. At the end of 12 month period, any excess will be converted to a cash value and paid to the customer at SC6 avoided cost rates. Non-Demand Commercial customer’s net excess will roll over monthly on an ongoing basis. Demand Commercial customer’s excess is converted to its equivalent value and applied as a direct credit to the customer’s next utility bill for outstanding energy, customer, demand and other charges on an ongoing basis. 3 Residential/Non-Demand – net excess will roll over monthly. Demand customer’s excess is converted to its equivalent value and applied as a direct credit to the customer’s next utility bill for outstanding energy, customer, demand and other charges. For both demand and non- demand customers, at the end of the net metering year, any excess will be converted to a cash value and paid to the customer at SC6 avoided cost rates. Residential/Farm-based – net excess will roll over monthly. At the end of 12 month period, any excess will be converted to a cash value and paid to the customer at SC6 avoided cost rates. Non-Demand Commercial customer’s net excess will roll over monthly on an ongoing basis. Demand Commercial customer’s excess is converted to its equivalent value and applied as a direct credit to the customer’s next utility bill for outstanding energy, customer, demand and other charges on an ongoing basis. 3. (1) The lesser of 2,000 kW or such DG Customer's peak load as measured over the prior twelve month period, pursuant to New York State Public Service Law §66-j and §66-l. If no prior history is available, utility will determine the limit of the size of generator based on an analysis of comparable facilities. Customer has the right to petition the PSC if not in agreement with the Company’s analysis. (2) Net Metering is available on a “first come, first serve” basis determined by the date the utility notifies the DG Customer that it has received a complete project application. (3) Demand customers will be subject to applicable actual metered demand charges consumed in that billing period. The Company will not adjust the demand charge to reflect demand ratchets or monthly demand minimums that might be applied to a standard tariff for net metering.

6. What if I install a generator that does not Qualify for Net Metering?  Customers may qualify for an exemption from Standby Rates if they install generators that are:  Methane or landfill gas  Fuel cells  Other renewable technologies identified in the NYS Energy Plan (e.g. biomass, geothermal and tidal)

7. Q&A  Will National Grid buy a customer’s excess generation if they do not qualify for net metering?  We are obligated to buy excess generation from a customer who certifies with FERC as a qualifying facility (hydro, wind, solar, biomass, waste, geothermal or co-gen less than 80 MW).  Purchase of excess generation is explained in the Service Classification 6 portion of the PSC220 Electric Tariff.