1. Energy Curtailment Specialists Your Full Time Partner in Demand Response NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.

2. Introductions: Paul Tyno, Executive Vice President Program Development, Energy Curtailment Specialists, Inc. −Responsible for the implementation of the demand response curriculum working closely with prospective clients, current participants, business / trade associations, economic development corporations and affiliate service providers. NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.

3. Value Proposition Demand Response is one of the few “technologies” available that can address energy and environmental issues positively while creating economic development opportunities! NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.

4. ECS is an example of what “works” positively in the Demand Response arena. Complete focus on administering full service demand response programs, and therefore offers a simple, high value opportunity. Demand Response is a vibrant industry, good for the economy and gaining the attention of Wall St. Demand Response is the #1 Priority NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.

5. Aggregator / Marketer label vs. true role as a demand response facilitator. Our advisory team including Mr. William Flynn and the most recent addition to that team, Mr. Paul Afonso. Broad knowledge base enables better decisions because of increase in understanding / different perspectives. Demand Response is the #1 Priority NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.

6. Motivating factors Anticipated load growth –Per Dept. of Energy, demand increase of 39% residential sector, 63% commercial sector and 17% industrial sector through 2030. NYISO 2007 Reliability Needs assessment (RNA) …”there is need for significant additions, including demand response, to meet capacity requirements ”. Consistent, long term capacity market –Another tool for grid operators utilized during times of transmission, distribution or reserve shortages. –DR can be deployed strategically, almost surgeon like within zones targeting congestion. NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.

7. Motivating factors Reliability factor…91% in New York State during last years heat wave. More load available…the SCR mandatory program currently represents approximately one third of the desired goal of 5 – 10% peak reserve capacity. NYSERDA plays an important role: Funding projects that enable DR Participation. Avoided cost benefits. –Consumers bear the cost of peaking units. –Can greatly reduce price volatility. NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.

8. Demand Response as a Renewable Definitions: –Energy obtained from sources that are essentially inexhaustible. –Renewable energy; a non-depletable source of energy U.S. Department of Housing and Urban Development –Resource: a naturally occurring raw material or form of energy which has the capacity to replenish itself through ecological cycles and sound management practices. –Able to be replaced or replenished, either by the earth's natural processes or by human action NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.

9. Demand Response as a Renewable Clean demand response, not generator based. Greater reliability factor than sun, wind etc. The Greenest Megawatt may be the one we don’t use! It’s there, we can go back to that resource on a repeat basis. The features / benefits don’t change for any of the stakeholders. NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.

10. Client Perspectives Environmentally responsible course of action. Community as a whole benefits. Increased participation is literally a reinvestment in the community itself. Positive recognition. Metering, Resource Management becomes top of mind within facility, draws attention to conservation opportunities, inherent value in developing sound energy management habits. Revenue stream or financial inducement for active participation creates incentive to reinvest in energy initiatives. NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.

11. On Behalf of Energy Curtailment Specialists Thank You!

12. Contact Information Paul J. Tyno Executive Vice President Program Development Energy Curtailment Specialists, Inc. Corporate Office 3735 Genesee St. Buffalo, NY 14225 1-877-711-5453 ext. 229 office (716) 565-0506 fax (716) 818-8448 cell ptyno@ecsny.com Visit our websites; www.ecsny.com or www.ecscal.comwww.ecsny.comwww.ecscal.com NARUC / FERC Collaborative on Demand Response 7.15.07… Energy Curtailment Specialists, Inc.