Restricted & Confidential1 October 17, Energy Climate Workshop November 3, 2008 Washington DC Building a Smart Grid: A National Priority

Our mission is to make the Smart Grid a reality by aligning the interests of electric utilities, consumers and the environment. Mission Our vision is to integrate every home and every business into the Smart Grid. Vision Values GridPoint wants to turn distributed resources into the equivalent of central-station generation. How Do We Do It? GridPoint offers electric utilities a practical path to the Smart Grid by providing an extensible technology platform and turnkey implementation Mission, Vision, and Values

The GridWise Alliance 3

Defining the Smart Grid

CONTROL Building the Smart Grid FOUNDATION / INFRASTRUCTURE VISIBILITY CAPACITY POWER QUALITY & RELIABILITY LOAD EFFICIENCY OPERATIONAL EFFICIENCY CLEAN TECHNOLOGY AMR AMI Self-Healing Grid Outage Management Ancillary Services Home & Building Automation Energy Management Systems Customer Portals Time Differentiated Rates Distribution Automation Renewables Integration Grid-Interactive Vehicles REC Markets Load Curtailment Demand Response Advanced Demand Management 21 st Century Smart Grid Today Supply & Demand Self-Optimization

SYSTEM CAPACITY 1,067,019 MW AVERAGE SYSTEM CAPACITY 602,585 MW Capacity Challenges 15 % RERSERVE MARGIN 1,277,072 MW

HOURS 7 Capacity Challenges (contd)

A Smart Grid is when… … your teenage daughter, who snuck out last night with the PHEV, plugged it in to recharge this morning and pressed override on your smart charger – paying $1.00 per kWh for daytime electricity. …luckily, your rooftop PV is providing most of the energy to recharge, and the extra battery in your garage is working overtime to provide regulation services to the utility at a premium rate…resulting in an overall net zero cost to you....the grid provides value to the local utility …the grid provides value to the consumer …the grid provides value to the local economy …the grid provides value to the environment 8 A grid is smart when…

The Grand Challenges… Transfer all traditional capacity reserve requirements to the demand side Increase overall asset utilization by at least 10% Ensure that all critical loads are served 100% of the time Integrate clean energy technologies to reduce CO 2 intensity by at least 30% Proactively mine all utility and consumer efficiency improvements Accommodate a penetration of more than 30% PHEVs 9

Other Distributed Technologies PHEV Integration Renewables Integration Energy Storage Integration Load Measurement & Control Two-Way Network AMI Modular, Extensible, Upgradeable INTERNET Billings & CRM Systems Operations & Control Center Customer Portal Operations Center Utility Portal ELECTRIC UTILTY Renewables Integration Energy Storage Integration Load Measurement & Control Two-Way Network AMI Modular, Extensible, Upgradeable INTERNET Billings & CRM Systems Operations & Control Center Customer Portal Operations Center Utility Portal ELECTRIC UTILTY GridPoint SmartGrid Platform TM

11 GridPoint Customer Portal » Provides detailed consumption and conservation data » Personal energy profile automatically optimizes energy consumption » Online services » Energy savings data » Detailed production and consumption data » Utility rate schedules » Environmental benefits » Password protected Web-based consumer portal provides online energy management services

12 GridPoint Control Console » On-demand or scheduled peak event management » Predict available capacity of stored energy, load control and distributed generation » Provides information before, during and after a peak management event » Can be integrated with utility operations environment » Customizable to specific utility needs Provides utilities with direct control over an intelligent network of distributed energy resources

13 Expanding the Platform Utility Systems Operations & Control Center Operations & Control Center Billing & CRM Systems Billing & CRM Systems Utility Ops Center Utility Operator Control Consumer Interfaces GridPoint Support Systems Configuration & Provisioning Configuration & Provisioning Monitoring & Support Monitoring & Support Logistics & Installation Logistics & Installation Commercial & Industrial Utility Power Assets Legacy Systems Residential Customers GridPoint Operations Center SmartGrid Platform

Restricted & Confidential14 GridPoint Platform Capabilities Server-Centric Architecture - Hosted or enterprise software - Software as a Service (SaaS) - Platform as a Service (PaaS) - Enterprise Software Deploy Flexibility - SOA, Web services, XML - TCP/IP-based, 6Lopan, ZigBee - RF mesh, private networks, 4G - Interoperability focus Open Architecture - Executive dashboards & scorecards - Trending & predictive analysis - Increased visibility & control Business Intelligence - Horizontally & vertically scalable - Scales to millions of endpoints - TBs of data - 64 bit architecture Scalability - Device Oriented Architecture - Configuration & asset management - Self-awareness Auto-Provisioning - Future-proof & upgradeable - New requirements & devices - Adaptable to market changes - Remotely upgradeable software -3 rd party or GP device plug-and- play Extensibility - Segregation & protection of cust info - Data & security standards - NERC-CIP ready - Industry leading data center security bit encryption Security & Privacy - Integrated server architecture - Fully integrated, modular solutions - Enables Network Management (e.g., home, C&I, vehicle networks) Modular Solutions -Web interface white label -Targeted content -Custom data feeds & content aggregation -3 rd party & legacy GUI interfaces Customization - Platform, data, device integration (e.g., tstats, HAN, MDM, CRM) - Smart Grid Network Gateway (SGNG) - Data Transform Adapters 3 rd Party Integration

The promise of wind… …balancing-energy market prices in ERCOT's four market zones have ranged from negative territory in the west, where wind- generated power is abundant, to the market cap of $2,250 per MWh and even higher during times of transmission congestion. - Reuters, 5 June (1 st half) Data source: ERCOT 15

Power Reliability dailymail.co.uk Boston Globe 16

Power Quality 17 Visibility at the endpoint provides distributed intelligence for monitoring and correcting grid power quality.

Energy Efficiency Services … While on vacation you receive a message that your hot water heater has been running full on since last night. Your smart energy manager dispatches a field service technician and discovers a broken water pipe. The utility shuts off your water heater remotely and the technician on site turns off the water, saving you several days of wasted consumption and property damage. 18

PHEV Smart Charging 19 GridPoint enables utility- managed smart charging of PHEVs with measurement and verification to reduce stress on the grid during peak periods and enable differentiated pricing – regardless of when the car is plugged in

20 Perspectives on the Smart Grid