Rick Counihan, VP Regulatory Affairs Demand Response and Energy Efficiency: “Killer” Smart Grid Applications I would like to thank Speaker Pelosi and Chairman Larson for inviting me here to speak today. I would also like to thank the Demand Response and Smart Grid coalition for helping to organize this panel and for educating policymakers on the importance of the smart grid. Rick Counihan, VP Regulatory Affairs January 20, 2010

About EnerNOC Market Leader in C&I Demand Response Over 3,250 MW under management, across more than 5,600 commercial/industrial sites (as of 9/30/09) Active in all DR programs in RTO/ISO regions Innovative Smart Grid Energy Management Services for Businesses and Institutions Diversified product suite of demand response and energy management solutions, including Monitoring-Based Commissioning (MBCx), Energy Supply Management, and Carbon Management Scalable technology platform – PowerTrak® Strong Financial Track Record Founded in 2001; Publicly traded on NASDAQ (ENOC) since May 2007 2009 projected revenue: $187-189 million Headquartered in Boston 400+ full-time employees EnerNOC is an excellent example of a new, growing, cleantech company that is using telecommunications and computing to make our energy use cleaner and more cost-effective. We have been hiring steadily throughout the recession and plan on additional hires in 2010. The map shows where we currently provide DR services and I am happy to say we made our first step overseas to the UK last year. I would like to point out that while we are headquartered in Boston, we have built our second Network Operations Center at 1st and Howard streets in San Francisco and that is our second largest location. In a moment I will explain demand response but want to point out that 3,250 MW is more than the output of 3 large nuclear plants Our early work in DR has led to developing a new product line to help building owners keep constant tabs on their energy usage to keep their buildings in “tune”. We can offer that service anywhere.

EnerNOC’s Demand Response Footprint 3,250 MW under management, across more than 5,600 commercial/industrial sites* * As of 9/30/2009

Like the Internet, the Smart Grid has two layers. The Energy Internet Like the Internet, the Smart Grid has two layers. Infrastructure Layer: Transmission lines, meters, communications protocols, etc. Application Layer: Functionality that extracts value from the underlying infrastructure

Why Demand Response? Reduces peak demand and transmission and distribution congestion Mitigates high wholesale market prices 100% 90% 75% 50% This graph represents the peak energy demand of a utility for each day of the year. The red lines represent the highest use days which are very few but we build the electric system to supply those days. Ten percent of the investment in our electric system is spent on providing less than 1% of the hours (less than 87 hours) If we can selectively reduce load during those few peak hours, we as a country can save enormous amounts by not having to build and operate expensive infrastructure. 25% Winter Spring Summer Fall

How Do Customers Participate? What Businesses and Institutions Curtail How It Works Air handlers Anti-sweat heaters Chiller control Chilled water systems Defrost elements Elevators    Escalators External lighting External water features HVAC systems Internal lighting Irrigation pumps Motors Outside signage Parking lot lighting Production equipment Processing lines Pool pumps / heaters Refrigeration systems Water heating Depending on customer needs and preferences, demand response plans can be automated through EnerNOC’s technology platform, or initiated manually at the site. Standby / Backup Generation Curtailment

EnerNOC’s Network Operations Center Utilities and grid operators benefit from the “smart grid” EnerNOC has built

Energy Data from Every Customer Capture Meter Data At each site, the utility installs a KYZ pulse on the end-user meter, or an EnerNOC field technician installs a current transformer. The ESS stores this usage data. Send Meter Data In real-time, each ESS transmits usage data to EnerNOC’s PowerTrak® software platform via broadband or wireless connection. Present Meter Data Users have access to PowerTrak, online energy management software, that presents EnerNOC consumption data and demand response performance in real-time

The Mystery of the Chess Club or Using data and analytics to identify savings Commercial buildings currently spend roughly $100 billion dollars on energy per year.

Monitoring-Based Commissioning Software-as-a-service platform that identifies 8-12 percent savings

Rick Counihan Vice President, Regulatory Affairs EnerNOC, Inc Rick Counihan Vice President, Regulatory Affairs EnerNOC, Inc. 500 Howard Street Suite 400 San Francisco, CA 94105 Tel: 415.343.9504 rcounihan@enernoc.com