Commercial Customer Demand Response Program Pilot January 17, 2013

What is Demand Response? At the utilities’ request, customers reduce electric usage for short durations on hot summer days * Reduces the need to turn on expensive and more polluting electric generators * Helps maintain grid reliability for all customers * Reduces utility operating cost * Participating customers reduce energy cost and are rewarded for participation with a rebate A Win-Win-Win solution!

Major Elements of Pilot CPAU DR Program Proposed Pilot program - Summers 2013-2015 Test DR potential in Palo Alto Test DR automation Explore options for broader future program Open to 15 commercial customers in 2013: Must be on Meterlinks program Flexible load with potential to reduce loads by a minimum of 50 kW Limited number and duration of DR events 2 to 5 hours per day in the afternoons Up to 15 business days between May and September

Benefits for Participating Customers Reduces Utility Bill & Earns Rebate * Rebate of 50 ¢ per kWh reduced (retail rate 9¢) * Bonus payment of $2 per kW for full performance * No penalty for non-performance * Lower electric bill - Lower energy charge - May lower monthly demand charge ($18-20 per kW) Recognized by the City of Palo Alto for program participation Demonstration of company’s environmental stewardship goals

How to Participate Contact your Key Account Manager if interested CPAU will provide custom DR evaluation of your facility Key Self-Evaluation Questions * Meterlinks metering? * 50 kW demand reduction? Lighting, process loads Air conditioning (e.g. pre-cool buildings, widen thermostat setting, adjust chiller water temp.) Building energy management system * Corporate environmental goals? * Level of effort to participate in program?

City of Palo Alto Utilities Recognizes the following Customers for Participating in Demand Response CPI PARC Palo Alto Office Center Palo Alto City Hall SAP Stanford Hospital VA Hospital

Contact Information Karla Dailey Karla.Dailey@cityofpaloalto.org 650-329-2523