1. Demand Response May 9, 2008

2. United States 40 Million People 8 States Canada 10 Million People 7 Provinces Cost $6.0 to 10.0 Billion

3. Power Grid Infrastructure 50 to 100 years old Forecasted growth way under estimated Did not anticipate new electronics Computers Air Conditioners Game Boys Televisions Cell Phone Chargers Passive Drain Cell Phone chargers, TVs, Microwave, DVDs Cell Phone chargers (not charging phone) consume over 900,000 Mw-hours/year

4. Grid Overloaded during Summer Months Power consumption continues to grow over 2% per year Reduce burning fossil fuels, and generating greenhouse gasses Eliminate Spinning Reserve

5. Power can be disrupted during Summer General public does not understand shortage of power Large commercial and industrial users consume 70% of power Commercial and industrial users have not understood their role in power management Have the ability to mitigate rolling blackouts Residential customers are at work or school

6. Without demand response CAISO does not have enough control of grid Rolling blackouts are still a threat Large consumers can change rolling blackout risks

7. Three methods that help power consumption and generation Efficiency CFL, high efficiency A/C ect. Wind Generates non-polluting clean energy Out of sequence with peak demand Solar Best method that helps peak reduction Can these methods keep up with 2% growth in power consumption?

8. Building new power plants is not an option 3% to 7% of the year there is a problem on the Grid No problem in October, small time during summer Not feasible Cost Pollution Transmission lines Cost Permits We need to better manage our grid Energy act 2005

9. Reduce energy costs Curtail interruptible load at peak price User Selected Air Conditioners Lights Non-critical machines, pool pumps ect Critical Loads are not affected Computers/Servers Inner area lights Ventilation

10. User selected Loads Critical and Non-critical If CAISO calls Stage 2 Emergency Mica-Tech system sends signal to user Energy Management System EMS to reduce selected Pre-cooling CAISO will notify day ahead warning Set Thermostat 2 deg cooler prior to event

11. One Event per Day 4 hours maximum Will not exceed 120 hours per year

12. Power Grid System Security and Reliability Transmission Substation Highest level of SCADA Power Grid Control 2000 and 2001 Rolling blackouts Utilized Mica-Tech Network (over 20,000 Mw) Single Largest Demand Response Action with Mica- Tech equipment

13. SCADA-Supervisory Control and Data Acquisition 50,000 Sq Mi territory Southern California Wyoming, Colorado, New Mexico, Nebraska and Arizona Over 10 years live grid Reliable and Secure Transmission Substations and Hydro sites (Dams)

14. Secure not internet based CIA: Hackers to Blame for Power Outages Hackers literally turned out the lights in multiple cities after breaking into electrical utilities and demanding extortion payments before disrupting the power, a senior CIA analyst told utility engineers at a trade conference. Bank hack attacks up 81% Mica-Tech System private satellite network Over 10 years cannot be hacked Demand Response should not put operations at risk CAISO has been hacked CAISO/Mica-Tech Joint Project

15. No Cost- Installation and Management Technical Assistance No Training of Personal -fully automatic No Penalties Cash incentive

16. Could work to cut usage just like power Where? Pump water back over dam Farms not economically feasible crops die Lawns? Yes Limit use Schedule best time to water Cut use entirely