Chairman’s Report January 4, 2008

2 Table of Contents Electric conservation programs study Page 3 Annual review OPM Strategic Plan Page 4 Report on various energy issues Page 5 Procurement plan Pages Net energy analysis Page 9 NEEWS Page 10 Other items Page 11 Timeline of tasks – reference slide Page 12

3 Electric Conservation Programs Study Background 07 energy bill requires CEAB to study “efficacy, innovativeness and customer focus of electric conservation programs” in Connecticut Board must evaluate programs and specific options for program delivery, including: Selecting a state-wide provider of conservation programs through a competitive process Retaining the current delivery system for conservation programs; and Having a nonprofit organization provide the conservation programs ECMB consulted in an effort to build in work already done on this issue; particularly survey instruments Status Draft completed Schedule adjusted to reflect late circulation of draft; Feb 1 submission date can still be met Timeline Board Action Required None Mark calendars for hearing date – Jan 22 in 2 sessions: 2-4 pm and 6-8 pm Vote to approve and submit to E&T SeptJan 25 OctNov Dec 26 Feb 1 Public hearing Final draft report delivered to board/ staff Draft report released for public comment Contract Kickoff meeting Vendor Selection Public comments due Jan 9 Jan 21 Jan 22 Surveys Research Draft to work group Jan 29 Working group comments due Jan 7 Working group call to discuss outstanding issues

4 Annual Review OPM Strategic Plan Background 2007 energy legislation requires Board to review OPM’s annual Plan for Energy Management in State Facilities, measure success of the plan’s implementation and determine societal benefits derived Working group led by OCC (Borges-King) and DEP (Farrell) to work with LaCapra OPM recused itself from participation in Board review of Plan OPM participated in iterative process creating final Plan Status Report approval moved (from Dec) to today’s meeting; delayed until mid-month or Feb meeting Timeline Board Action Required Vote to approve final Plan at special meeting or Feb meeting Feb 1 Sept 7 Jan 1 Mar 15 Final benefit measurement due OPM Plan presentation to Board Dec 7 NovOct LaCapra – OPM mod- ification work LaCapra presentation Statutory due date Draft measurement report Jan 4 Final draft circulated to Board by Mar 7 LaCapra presentation Final draft Plan approval by Dec 18 Dec 28 Draft to working group Working group review

5 Report on Various Energy Issues Background By Jan 1 08, Board is required to begin study to develop recommendations on: Coordinating and integrating the state’s energy entities; and Achieving the goals of RGGI and state efforts to reduce greenhouse gasses; and Promoting indigenous alternative fuel resources Board approved a year-long process to allow for adequate analysis and stakeholder input Status Contract moving through OPM process; anticipated contract execution early Jan Timeline Board Action Required None SeptOctNovMarJanMay -JunOct- Nov Aug -Sept Research report due to Board Phase II: Policy Formulation/Recommendation Phase I: Research Comment period and public hearing Draft recommendations RFP Contract Final Draft DecJan 1 09 Board Approval Submit to E&T RFP recommendation

6 Procurement Plan Background 2007 energy legislation requires Board to review/modify and approve comprehensive resource procurement plan submitted by distribution companies Plan must first meet resource needs through all available energy efficiency and demand reduction resources that are cost effective, reliable and feasible Status LaCapra chosen through bid process to be Board’s consultant Board approved both the award and Chairman’s authority to execute contract at last meeting Contract execution anticipated by today’s meeting Timeline Joint UI/CL&P Plan due Jan 1 – presentation at special meeting today See next slides for statutory and Board task timelines Board Action Required Determine when public comment period should commence – immediately or upon receipt of LaCapra preliminary analysis

7 Procurement Plan: Board Task Timeline *Board may release plan for public comment immediately or upon receipt of LaCapra preliminary analysis **Schedule may require teleconference vote for approval or special meeting week of Apr 21 st Utility presentation on Plan SeptMay Scope of services Oct Vendor selection* Nov 1 MarApril 26 Utility filings due Public hearing File Plan w/ DPUC Vendor Contract Detailed Consultant Report Draft Plan Dec DPUC Presentation 4 Preliminary analysis 22 January 15 Public comment period* February 2615 Revised Plan & presentation materials 3015 Process report due to Board Board vote to approve Plan**

8 Procurement Plan: Statutory Timeline Jan 1, 2008 Utility filing due to CEAB 120 Days* CEAB †† approve/modify proposal Public Hearing DPUC 120 Days* Public Hearing Uncontested Case DPUC approve/modify proposal May 1, 2008 Aug 29, 2008 * Beginning calendar year 2009, CEAB and DPUC each have 60 days to approve/modify plan †† DOT, DPUC and Agriculture shall not participate as members of the Board

9 Net Energy Analysis Background 2007 energy legislation requires CEAB RFP for alternatives process include a net energy analysis of each of the proposed facilities Status Overview presentation at Nov meeting raised questions regarding value and intent of Net Energy Analysis as applied to CEAB reactive RFP for alternatives process LaCapra work suspended pending further investigation on legislative intent Timeline Board Action Required None AugNovDecJanApr Revised analysis and LaCapra presentation overview ASWG/LaCapra further discussion LaCapra work order approved Approval of analysis process Draft Straw man Public hearing FebMar LaCapra Overview On Hold

10 NEEWS Background New England East-West Solutions (NEEWS) transmission system upgrade comprised of multiple 345kV transmission line projects in southern New England (CT, MA, RI) CEAB required to do “reactive” RFP; may do “proactive” RFP NU’s Siting Council filing will trigger reactive RFP Board released RFC on process CEAB should employ to identify alternatives to NEEWS last summer Comments generally did not support a proactive RFP approach at this time Subset of Board and staff working group met with utilities to discuss comments Supplemental request for comments from UI, CMEEC, CL&P released See all requests and comments on website at Status CEAB filed comments in DPUC reliability docket to elicit information on NEEWS PAC review expected first quarter 2008 for CT projects Timeline Board assuming NU application filing with Siting Council in July 08 and Nov 2008 Board Action Required None

11 Other Items FERC 890 Final comments on ISO Attachment K filing due Jan 7 CEAB will be filing comments Monday Working group edits due today Board officer selection Subcommittee led by Jim Sandler appointed last month Sandler overview today Other business CT Energy Assistance Program (CEAP)

12 Timeline of Tasks – Reference Slide Jan 1 08 May 1 08 July 1 07 Commence electric conservation study Jan 1 09 Report on various energy Issus deadline Phase I of various energy issues Feb 1 08** Submit electric conservation study report to E&T Submit procurement plan to DPUC SNETR proactive RFP process?* SNETR reactive RFP process* Dec 1 07 RFP for Alternatives: exemption criteria adoption deadline OPM State Buildings Energy Mgmt plan approval** Mar 1 08 Review OPM State Buildings Program savings Utility procurement plans due to Board OPM State Buildings Plan due to Board Sept 1 07 *NU anticipating July 08 Siting Council filing date for the Greater Springfield and Interstate portions of NEEWS (central CT portion anticipated filing Nov 08) **Date must be adjusted to reflect delay; anticipated approval by Feb 1 Phase II various energy issues