A Glimpse Into Summer: Evaporating Demand Proprietary and Confidential 1 Melissa Westaway Meteorologist/Demand Forecaster

Agenda  Enva – What We Do  Demand Forecasting  Key Factors That Affect Demand  Demand Destruction Increasing  Compare The Data  Summer Outlook  Conclusion Proprietary and Confidential 2

 Founded in 2001, Enva is the energy industry’s leading power market intelligence company  Dedicated team of 40+ experienced developers, analysts, meteorologists with energy backgrounds.  Each trading region has dedicated staff of 3-4 analysts focused on calibrating models.  Acquired by Genscape in Dec ensures that models have real-time plant status data. Proprietary and Confidential 3 About Enva

Proprietary and Confidential 4 Enva Service Portfolio 3 Reports Delivered Daily  Recap Report  Bal-Day/Next-Day Report  Bal-Week/Next-Week Report Live Interaction  Daily briefing calls  Access to Enva Operations Center  Analysts can re-run model with client input MISO Daily Market Intel Bal-Week/Next-Week PJM Daily Market Intel Bal-Week/Next-Week NYISO Daily Market Intel NEPOOL Daily Market Intel CAISO Daily Market Intel

Base Case Modeling & Analysis Proprietary and Confidential 5 Generator 10-Part Bids & Constraints Hourly Forecast Demand (by zone) Hourly Forecast Imports (by zone) ISO Operational & RTMP Rules Expert Review Generator Availability Power Flows & Limits Expected Power Flows & Hourly Base Case LMP’s

Demand Forecasting Process Proprietary and Confidential 6 Inputs ISO Actual Demand Weather Data (for 200+ locations) Weatherbug WSI Public data & models NeuroBuilder™ Industry’s most advanced Neural Net Hourly demand values out 15 days Demand Analysis By meteorologist Reviews and modifies forecast based on weather events, recap and R/T developments Result: Industry’s most comprehensive and accurate demand forecast

Short Term Effects On Demand  Assess factors that impact demand based on day and season: Weather (e.g., temperature, humidity, precipitation) Human habits (e.g., school is in/out of session, Fridays, holidays) Unusual events (e.g., hurricane, Superbowl, blackouts) Proprietary and Confidential 7

The Green Effect  The trend of demand destruction based on increases in: 1.Energy efficiency & conservation 2.Behind the meter generation 3.Economic pressures Proprietary and Confidential 8

Energy Efficiency & Conservation  Energy conservation means using less energy and avoiding wasteful uses.  This is accomplished by: Using energy efficient products/appliances Modifying usage habits (e.g. reducing AC use) Proprietary and Confidential 9

Energy Efficiency Resource Standards (EERS)  An EERS – Energy Efficiency Resource (or portfolio) Standard – aims to reduce or flatten electric load growth through energy efficiency (EE) measures. Goals may specify reductions in energy (MWh), demand (MW), or both. Many specify both overall energy reductions and peak-load reductions.  18 states have passed EERS legislation  3 states have pending EERS legislation  14 states passed significant Energy Efficiency legislation in 2008 Source: FERC Proprietary and Confidential 10

 Example – California Solar Initiative Behind the Meter Generation Proprietary and Confidential 11 Goal: 3,000 MW of new solar- produced electricity by 2016

Proprietary and Confidential 12 Gogerty, Nick. "The Green Re-cession: Via Demand Shock." SeekingAlpha.com. 27 Mar Mar  Episodes of sharply declining demand coincide with periods of economic recession.  This corresponds to episodes of increased unemployment. Economic Impact On Demand TeraWatts

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EIA Demand Trends  Between 2002 to 2006, the average US annual electricity demand grew by an average of 1.6% per year.  Last year EIA’s outlook for 2008 to 2030, electricity demand growth will average only 1.2% per year.  In January 2009, EIA revised demand forecast: Drop of 0.8% in 2009 Rise of 1.5% in 2010 source US EIA Proprietary and Confidential 14

Enva Summer 2009 Outlook  Summer demand is represented by an average of the months June, July and August.  Assuming the summer of 2009 to have similar weather to summer of Proprietary and Confidential 15

Proprietary and Confidential 16 Demand Percent Change % % (EIA)-0.8% (Enva)-1.2%

Proprietary and Confidential 17 Demand Percent Change % % (EIA)-0.8% (Enva)-4.1%

Proprietary and Confidential 18 Demand Percent Change % % (EIA)-0.8% (Enva)-2.8%

 We expect the continuation of demand destruction.  The percent change will vary by region from roughly -1% to as much as -4%.  Demand summer outlook is an average of the season.  Volatile days will still occur. Proprietary and Confidential 19 SUMMARY

Proprietary and Confidential 20  Questions?  Thank you for attending today’s presentation Closing Enva, Inc. 177 Huntington Ave., Suite 2100 Boston, Massachusetts, Tel. (617) Fax. (617)