1. NON-RESIDENTIAL ENERGY MANAGEMENT HCDE, Facilitator and DRF Industries, LLC Consultants Energy Education, Energy Cost, TDU Charges, & Demand Reduction May 20, 2016

2. About DRF DRF is a consulting firm, focusing on delivering electric energy education to residential and non-residential consumers, K-12/University STEM programs, and student & parental engagement support systems covering energy management, energy technologies, energy markets (regulated and deregulated) and renewables.

3. About DRF Partnered with the PUCT’s Power to Save, CenterPoint Energy and an array of REPs; Partnered with the PUCT’s Power to Save, CenterPoint Energy and an array of REPs; DRF is a 3rd Party Account Agency registered with Smart Meter Texas; DRF is a 3rd Party Account Agency registered with Smart Meter Texas; DRF is a participant in the ERCOT Advance Meter Working Group, (AMWG); DRF is a participant in the ERCOT Advance Meter Working Group, (AMWG); DRF is an Energy Efficiency Service Provider under PUC Substantive rules definition; DRF is an Energy Efficiency Service Provider under PUC Substantive rules definition; DRF is a Power Marketer in the State of Texas DRF is a Power Marketer in the State of Texas

4. Electrical Grid System

5. Facts  Compare Energy costs before deregulation with HL&P, (2001- 2002) and after deregulation began, 14 years ago. Unbundling ServicesUnbundling Services  Texans living in deregulated areas would have saved more than $22 billion in lower electricity bills for 2002-2013 had they paid the same average prices as Texans living outside deregulation.  Out of all 50 states, Texas is ranked 37 th with an avg. rate of $.12/kwh while Louisiana is ranked 1 st with an avg. rate of $.07/kwh;  The City of Houston signed a new electricity supply agreement for three years (2013-2016).  This agreement will save the city roughly $30 million annually  Rate schedule is based on the 4,300 smart meters installed on city facilities.

6. Managing Energy Fixed/Flat Rates – This rate is the same for the entire contract period. Referred to as a Financial Hedge Time Of Use Rates (TOU)– This rate is a on-peak rate and off peak rate. Real Time Rates – Hourly rates are determine by the ERCOT wholesale market. Real Time Rates Index Rate – This is determine by two variables. For example: Heat Rate X Natural Gas Rate.

7. Power To Choose Clearing House Market Place for Residential Consumers with over 109 REPs/147 DBA and over 320 rates to choose from.

8. Power To Manage Power To Manage is a Energy Market Place, designed to match profiles (energy usage patterns) to rates and rate structures.

9. Managing Usage and Demand TDU Charges – TDU fees average 20%-40% of your over all bill. If managed it can be reduced to 10%-20%. Demand can be lowered at no COST, by increasing awareness and adjusting behavior Demand can be lowered by installing smart devices (Thermostats, A/C Cycling Switches, Surge Protectors, etc.), and energy efficiency lighting (LED or CFL)

10. Smart Meter Texas Smart Meter Texas website gives the ability to manage and monitor in near real time. You are already paying for this service in your metering charge, as a part of your TDU fees.

11. Smart Meter Texas

12. Energy Management Unit (EMU) EMU will display usage, rates and cost in real time, allowing consumers to reduce energy bills to stay on a budget and allow easy participation in Demand Response Programs.

13. K-12 School Usage Types Usage Types Usage% Cooking1% Water Heater1% Refrigeration4% Space heating5% Ventilation7% Other10% Office Equipment20% Lighting26% Cooling26% DRF is a sponsor for CenterPoint Energy’s Energy Efficiency programs (Incentive) aimed at non-profits and schools to lower usage and demand on the grid.

14. Demos Device Demos Device Demos Surge Protector Surge Protector Smart Meters Smart Meters Energy Management Units Energy Management Units

15. Thank You Any Questions Please Contact us Robert L Ford, Ph.D. President/CEO (713) 201-7641 rford@drfindustries.com Darrell Ford Manager/COO (281) 667-4464 dford@drfindustries.com