1. VPP: Converting Capacity in the Home into Valuable Energy Reserves Wayne Callender

2. CPS Energy is the nation’s largest municipally owned energy utility providing both natural gas and electric service, serving more than 728,000 electric customers and 328,000 natural gas customers in and around the seventh-largest city in the nation. The utility ranks among the nation’s lowest-cost energy providers, while ranking number 1 in wind-energy capacity among municipally owned utilities and number 1 in Texas in the amount of solar-generated electricity under contract.

3. Home Manager VPP Goals 140,000 installations Target VPP size: 250 megawatts Avg. 1.8 kW per installation during peak

4. Home Manager An energy management solution that allows CPS Energy to control our load management resources as if it was a peaking plant Load management information for all program participants is aggregated into a single dashboard that CPS Energy uses to view the aggregation of all consumers’ energy usage displayed in the form of available load During times of peak demand, CPS Energy initiates curtailment events to reduce coincident peak demand

5. Web based software tool, opt-out of events Create unique energy profiles View energy usage - real time Manage energy from anyplace, anywhere Save money, the environment and maintain comfort Home Energy Management System

6. Up to 10% savings on heating/cooling costs Works within boundaries set by customer Opt-out anytime Home energy management system Anytime, anywhere access Benefit to CPS Customers

7. Real-time data collection and reporting Rated up to 50 Amps Disconnect up to 30 Amps Wide voltage range support: 120- 240 VAC Available with or without relay ZigBee communications, future integration with Gridstream Firmware over-the-air upgradeable Device Controllers

8. Radio Thermostat model CT-30 or CT-80 Push-button opt-out of conservation events U-Snap module ZigBee communications Future integration with Gridstream Communicating Thermostat

9. Two-way, high-speed, ZigBee communications with SEP HAN devices 3G Wireless for WAN Collects data directly from AMI meters Secure, encrypted communications Firmware upgradeable-over- the-air Future integration with Gridstream, Wi-Fi, others Communicating Gateway

10. Virtual Peak Plant

11. Typical Load Shapes During Peak Events

12. Average Load Reduction Shape

13. Benefits to CPS Helps meet Save For Tomorrow Energy Plan (STEP) goals Additional resource to meet reserve margin Provides CPS Energy Market Operations with Virtual Peak Plant Ability to participate in ERCOT ancillary service market Increases customer satisfaction through greater energy efficiency

14. Participant Feedback Environmental impact awareness Feel they are empowered and have more control over their energy usage Perceived energy savings > 20% The 3 C’s – Cost Savings, Control, and Convenience