© Adaptive Energy Management TM Lawrence Silverman Chairman G RID P LEX N ETWORKS Tel: web: Lawrence Silverman Chairman G RID P LEX N ETWORKS Tel: web: E NERGY C ONSUMERS Smart Grid … from the Wrong Side of the Meter E NERGY C ONSUMERS Smart Grid … from the Wrong Side of the Meter © February 2-3, 2011 – Miami Beach Convention Center in Miami, FL v 1-3x

© Adaptive Energy Management TM Who pays the bills in the Electric Market? What do these Consumers want? 60% by Small Commercial, Local Business and Residential Consumers Energy Management and Savings – as much as they can get – Conservation all the time – 8,766 hrs/year Disconnect between Energy Consumers and Utilities But most Investor-owned Utilities don’t support overall “Energy Conservation”, unless mandated by regulators or public policy – because it conflicts with their business model.

© Adaptive Energy Management TM Whose interests shape Electric Market Economics? Large Investor-Owned Monopoly Utilities How do most large Utilities think of “Conservation”? Peak Reduction - “Demand Response” - during 100 hours per year Realities of Today’s Electric Market So there are Market Incentives for Demand Response - limited though large in total - but there is little monetary support for Energy Conservation or Sustainability. The conflict between the needs of Energy Consumers and the business model of large Investor Owned Utilities creates a huge unmet demand for effective Consumer Energy Management.

© Adaptive Energy Management TM Consumers have the power to influence Public Policy and Regulation – if they are informed and choose to exert that power. Because they Vote! Why are Consumers Important? Consumers must be educated, organized and empowered with solutions they can understand and use.

© Adaptive Energy Management TM Very Large Markets US Energy Consumer Communities 20 million Apartments 100 Million homes 20 million locally-owned businesses

© Adaptive Energy Management TM Reliable and efficient electric supply via a “Smart Grid” is critical to the entire Global Economy and to Human Culture. Why is Smart Grid important?

© Adaptive Energy Management TM What Utilities said: “Smart Meters will save you money”. What Utilities meant – “Your bills won’t go up as much as they might have, because we’ll get better data and more control.” What Energy Consumers thought: “Smart Meters will make our bills go down”. That didn’t happen – bills went up to pay for Smart Meters, and Consumers rebelled – lawsuits, accusations of RF contamination and meter errors – all signs of eroding trust between Utilities and Energy Consumers. What Utilities said: “Smart Meters will save you money”. What Utilities meant – “Your bills won’t go up as much as they might have, because we’ll get better data and more control.” What Energy Consumers thought: “Smart Meters will make our bills go down”. That didn’t happen – bills went up to pay for Smart Meters, and Consumers rebelled – lawsuits, accusations of RF contamination and meter errors – all signs of eroding trust between Utilities and Energy Consumers. “Smart Meters” Tale of Good Spin gone Bad

© Adaptive Energy Management TM (1)The Wrong One: If the benefits of Smart Grid accrue only to the Utility, and are not equitably shared with Energy Consumers, their votes will eventually “kill” critical Smart Grid initiatives and incentives. (2) The Right One: An effective user-friendly approach that provides real savings for Consumers can result in broad adoption of energy management solutions, greater overall efficiency and increased voter support for Smart Grid. Two Reasons Consumer Energy Management may be the “Killer App” for Smart Grid

© Adaptive Energy Management TM More Carbon emissions are created from the generation and use of electricity in buildings and homes than from cars and trucks combined. Why does it matter? America depends more today on Electricity than on Oil.

© Adaptive Energy Management TM Most Americans today would choose to conserve energy and water. They want to save money on their energy bills, and to reduce their own carbon footprint. Who cares?

© Adaptive Energy Management TM Sustainability today is where Recycling was 15 years ago – and rapidly gaining broad public support. Prove it!

© Adaptive Energy Management TM Consumers need Energy Management and Conservation that is easy, painless and inexpensive. But they don’t really know what to do, or how to do it, and they have no readily available tools or solutions. So what’s the Problem?

© Adaptive Energy Management TM It’s 5.15 pm. Mr. Jones just got home. His last meeting was long and he’s running late. The house is too hot, the wash hasn’t finished, and it’s his night to make dinner. Mrs. Jones will be home in 20 minutes. All of a sudden, he notices a red light flashing on the “utility dashboard” in the kitchen, and a message that says electricity cost has been 75 cents per kilowatt hour since 4 pm. That must be a lot – otherwise the red light wouldn’t be flashing – but what is a kilowatt hour anyway? And what does that have to do with dinner? Leaving the house and taking his wife out to eat is not an option. They’re on a tight budget. So what do they do? The Problem for Mr. & Mrs. Jones …

© Adaptive Energy Management TM G RID P LEX has the answer – and is delivering it TODAY! “It’s the only system we’ve seen that every single one of our residents can use.” Monitor & Manage Solar Electric HVAC Water Real-time Metering Appliances Gas Service & Maintenance Automated Demand Response Monitor & Manage Solar Electric HVAC Water Real-time Metering Appliances Gas Service & Maintenance Automated Demand Response iPad UI

© Adaptive Energy Management TM $ $ $ $ 1% shift = $2B every year Large Monopoly Electric Utilities Energy Consumers, Munis, Coops & Communities A Game-changing Solution Market in a Adaptive Energy Management TM

© Adaptive Energy Management TM Personal, Easy and Automatic TM Thank You! … benefits Utilities, Consumers, Communities and the Environment! Please contact Lawrence Silverman, Chairman G RID P LEX N ETWORKS Tel: web: G RID P LEX TM