1. Load Response Products from Constellation NewEnergy
Constellation NewEnergy – New England Office
800 Boylston St., 28th Floor
Boston, MA
(617)
Call Amy Richard with questions

2. How Load Response Works
Baseline $ $ MW
Actual $ $ $
Our “internet-based communications system” (described later in the presentation) will estimate your baseline at all times so you will be able to see what you have to get down to. For the Demand Response program, you’ll figure out an amount you can reduce, and you’ll make sure during any emergency that you reduce that much against your baseline.
Hour
Baseline load shape predominantly determined from 10 prior business days
Baseline adjusted (upward or zero) 2 hours before event to match actual usage conditions
Curtailment is Baseline minus Actual usage
Paid greater of floor price or market price for curtailed energy

3. Constellation NewEnergy and Load Response
New England’s Load Response Program is run by the Independent System Operator-New England (ISO-NE)
 ISO-NE: Organization responsible for operating and maintaining reliability of the New England power gird
CNE has been a certified ISO New England Enrolling Participant since the inception of the Load Response program
CNE has enlisted an extensive clientele ranging in curtailment size and type of participation. Including:
Customers with load response ranging from 100 kW to 30 MW
Customers who have enlisted load curtailment or emergency generation resources

4. Benefits of Participating in Load Response
Energy cost reduction
Earn regular payments for participation
May reduce future supply prices by controlling usage patterns
No charges for supply or distribution of energy curtailed
Energy Information
Real-time meter and price information system installation allows you to view up-to-minute energy usage and costs
Compelling social benefits
Prevent regional blackouts and brownouts
Put downward pressure on prices- control “hockey stick”
Environmental benefits gained by avoiding use of last-resort generators
More about the energy information system later in the presentation.

5. Benefits of Participating in Load Response
Real-life Examples of Load Response Benefits
During the Emergency Event called August 2, 2006, curtailment reduced grid demand by 500 MW.
 This is equivalent to an entire natural gas power plant that did not have to come online during period of peak prices
ISO study found that if New England reduced peak demand by 5%, ratepayers could save almost $500 million/year.*
* Peters, Mark. “Conservation Pays.” The Hartford Courant 14 January 2007, natl ed.: D1-D2.

6. 2006/2007 Demand Response
Earn substantial monthly payments for ability to curtail during ISO emergencies
Backup generation or load reduction
Calls occur during ISO-NE’s emergency OP-4 Procedure
Only 3 of these emergencies have occurred since 2002
2-hour or 30-minute advance notice of curtailment call
Monthly capacity payments according to avg. kW reduction (less administration fees):
$3.05/kW-month, December 2006 to May 2008
$3.75/kW-month, June 2008 to May 2009
$4.10/kW-month, June 2009 to May 2010
Payments for energy during mandatory curtailments (less administration fees):
Greater of real-time market price or $350/MWh for 2-hour notice
Greater of real-time market price or $500/MWh for 30-minute notice
This is the Demand Response program, the emergency one.

7. Demand Response Rules for Participation
Calls can occur between 7 a.m. and 6 p.m. weekdays (non-holidays)
Customer estimates how many kW can be reduced during an emergency
Constellation can offer assistance with this determination
During an emergency event, customer must achieve reduction of kW offered for at least 5 min during event, or future capacity payments are reduced to actual performance
Reductions should occur within 30 minutes or 2 hours of call
If there has not been any emergency by August 15 of any given year, there will be an “audit” event sometime between August 15 and August 30
You are under no obligation to curtail after 6 PM, though you will be paid for the energy if you do.

8. Example Customer Savings in Demand Response
Savings per year for 500 kW of Curtailment
2-hr Demand Response
Capacity Payment per year
$18,300
Energy Price for Curtailed Energy x 3 hrs x 1 day per year (at $350/MWh floor)
$525
Less CNE Admin. Fee (25%)
-$4,706
Energy costs saved (at 10¢/kWh cost)
$150
Net position per year
$14,269

9. Expected Payments for Demand Response
Demand Response participants will receive estimated annual payments according to the table below:
Size (kW)
100
250
500
750
1000+
Capacity Payment
$ ,660
$ ,150
$ ,300
$ ,450
$ ,600
Energy Payment $ $ $ $
$ ,050
Less CNE Admin Fee*
$ (1,883)
$ (2,824)
$ (4,706)
$ (5,648)
$ (6,589)
Energy Savings $ $ $ $ $
Total Annual Payment
$ ,913
$ ,664
$ ,296
$ ,815
$ ,361
*CNE Admin Fee based on sliding percentage scale:
kW= 50%; kW= 30%; kW= 25%; kW= 20%; kW= 17.5%

10. Notification of Demand Response Events
Unlimited contacts can be listed
Automated voice calls to phone numbers
Text messages to pagers or cell phones s

11. Internet-Based Communication System (IBCS)
Installation is necessary for participation
Log in via the Internet
Receive info up to the
latest 5 minutes:
Your current power use
Baseline usage
Market prices
See Load Response earnings right away
Plus historical data for your analysis
Data sent to the ISO-NE in real-time
Used for grid management as well as settlements of payments

12. IBCS Installation Choices
OPTION 1: Between utility meter and company’s Ethernet
This is the best and most cost-effective solution
OPTION 2: Between utility meter and wireless satellite
This configuration does not require a connection to the customer’s server
Requires strong Verizon wireless signal
OPTION 3: Between utility meter and dedicated phone line with dial-up Internet account
We can maintain the internet service provider account

13. What’s needed for an Installation
A “KYZ Pulse output” from electric meter
Most utility interval meters have this
If customer does not have this, must be installed by utility
Extra cost of approximately $300
Must be located within 10 ft. of IBCS installation
110 V, 3-prong power outlet
Within 8 ft. of installation
Data jack
Ethernet (RJ-45) jack within 10 ft.
If dial-up, phone (RJ-11) jack within 10 ft.
Not necessary for wireless installation
OR, if a customer already has real-time data being collected, we can send this data directly to the ISO

14. What’s Needed for Network Connection
For Ethernet
DHCP Server
IP Address & subnet
SMTP server
For Wireless
Verizon wireless network reception
For Dial-Up
ISP dial-up number and account
Account maintained by customer or CNE