Demand Response & RTP Ivo Steklac, Director of Marketing Advanced Services ivo@slb.com

Demand Response: Premise Usage & Price Energy Energy Supply Demand Supply Demand Supply Demand $ Customer Response $ 2 I. Steklac 11/1/2019

Demand Response: PSE Trial Puget Sound Energy initiated a Demand Response trial with 450,000 customers Industrial, Commercial, & Residential Converted daily consumption to Time-of-Day Customers shown their time patterns of consumption & the relative cost of energy with regard to their consumption Billing inserts & Web Site used extensively to inform and educate 3 month trial extended to 6 3 I. Steklac 11/1/2019

PSE “Customer Feedback” This is Great! I have been monitoring our energy usage since Thursday and have noticed a change in the way we are using it just by being able to see it online.  We've lowered our thermostat, shut off lights that we aren't using, giving the kids baths during the day (during economy rate) instead of at night (expensive rate), and doing laundry and dishes during the economy time.  This has been so helpful for us.  Hopefully, we'll see a drop in the cost of our bill.  Thank you for the time and effort you have put into this web site to help us save money. This is a great idea! Our family started referring to this site two weeks ago during the holidays.  We called a family meeting and  developed a collective understanding of the differing costs of power during a 24-hour  daily and weekly cycle.  We have reassigned the timing of household chores to take advantage of the economy and bargain hours for power. (I.e. our Son,  who arrives home from school at 3 p.m., is now responsible for starting the clothes dryer, rather than waiting for the adults to get home and tend to laundry between 6 and 8 p.m.)  That's just once example...we've also lowered the temp setting on our water heater and thermostat and we've changed the days and times when we utilize  our exercise/ hobby room so that this "play" area is heated during the economy and bargain hours/days.  This is phase one.  We know there's more that we can implement, but it's a start. 4 I. Steklac 11/1/2019

Demand Response: PSE Results PSE believes a reduction of 5-6%(*) in peak generation demand had been achieved Customers shaped their load in response to information only Customer feedback has been very positive Customers have requested additional information & tools EPRI study(+): each 1% reduction in peak demand results in a 10% reduction in wholesale energy costs WUTC approved PSE Time-of-Day rate proposal 4/25/01 (*) Verification in process (+) “Demand Response, The Ignored Solution to California’s Energy Crisis”, S.Braithwait, A.Faruqui 5 I. Steklac 11/1/2019

Demand Response & RTP: How? Infrastructure needed: Instrumented meters Communications network Ubiquitous vs. Sparse Applications: Data Presentation Analytics Billing 6 I. Steklac 11/1/2019