ERCOT ELTF – Overview and Brief Proposal Dr. Eric Woychik – Strategy Integration LLC representing Comverge, Inc. 8 November 2006

Overview Comverge Footprint Business Models Austin Energy Program Thermostat Proposal Questions or Comments

Comverge has over 500 North American Utility Clients Comverge Clients

Technology Implementation Market Segment Residential Small Commercial Large C&I Medium C&I Big Box, Retail, Supermarket Hospital, Gov’t Buildings Large Process Industry Implementation Integration Digital Contact Low-Speed Field Networks High-Speed Field Networks Open-Loop / Simple Closed-Loop / Integrated Load-Type Discrete A/C LoadLightingProcess Site Strategies ProcessesDG/BUG Smart Buildings DCU / Thermostat +metering Technology eSS + metering Direct Load Control Process Control Feedback Control Over 500 Utilities State of Connecticut

What’s Different: How We Go To Market Three options for utility demand response: Hardware and software sales (parts – do it yourself kit) Turn-key services (operate, maintain, manage customers) Customized, fully outsourced Super-Peak Project capacity contracts:  Customized program design  Marketing and customer acquisition  Equipment installation, warranty, and maintenance  Operations and call center  Manage customer churn  Measurement & verification  Pay-for-performance based on MW provided

What’s Different: Austin Energy’s Demand Response Program Elements of the Power Partner Program Comverge, Inc.  Manufacturer of SuperStats® and DCU’s Honeywell Utility Solutions  Installations  Call Center  Warrantee Handling Cycling Season  June – September; Monday – Friday only  4:00 to 8:00 residential; 3:00 to 8:00 commercial  No Holidays or Weekends  10 minutes of every 30 minutes (33% cycling strategy) No Incentives – e.g., give away T-Stats

AE’s Demand Response Power Partner Program Installations began in 2000  Pilot Program of 3,000 Honeywell Thermostat installations Residential only Pilot also included 600 DCU Water Heater installations in Multi-Family  Full Implementation six months into pilot program 10,000 additional thermostat installations Incorporated Multi-Family, Commercial, and Municipal  As of March ,029* total Thermostat Installations 21,325 Single Family 23,735 Multi-Family 3,969 Commercial, Municipal & Government * including 4,000 White-Rodgers  Cooperation / Buy-in from Local HVAC Contractors One-on-one meeting with local contractors

AE Demand Response Events

Thermostat Proposal for Texas Give away T-Stats in exchange for demand response  Austin Energy model – dispatchable demand response  Customer education also results First blanket constrained transmission & distribution areas Recommend T-Stat “give away” program through RECs Enable demand response to be dispatched by ERCOT Lost revenue is not an issue (largely revenue neutral)

Questions or Comments?