1. andrewskurth.com Roger D. Feldman rogerfeldman@andrewskurth.com Storage RETECH 2011 Washington, DC

2. Andrews Kurth2. Diverse Industry Characteristics

3. Andrews Kurth3 A.The View from 60,000 Feet – Existing and Potential Functions 1.Firming intermittent renewable supply sources 2.Moderating price swings 3.Improving transmission reliability; overcoming T&D line limitations 4.Ramp control and protection/resulting efficiencies 5.Expansion of smart grids; microgrid possibilities 6.System protection control.

4. Andrews Kurth4 B.The Granular Views 1.Different operational uses of storage and ability to provide storage benefits, depending on the maximum duration of output energy 2.Different benefits for monetizing the value of storage based on storage capacity, and discharge capacity.

5. Andrews Kurth5 C.The Regulatory Models Broadly speaking, there are three basic regulatory modes with obviously different consequences for different technologies: 1.Focus on the legal jurisdictional issues—try to tap benefits through incremental creative flexibility (FERC) 2.Postulate benefits which are to be optimized and focus on facilitating them (CA) 3.Focus on leveling regulatory playing field between storage and other alternatives, competition work out optimal use (TX).

6. Andrews Kurth6 D.The Financing Models 1.While none of these regulatory models chooses technologies, they inevitability affect the competitive financeability of different players: a)Utilities b)Third parties c)Corporate and equipment providers Consequence Systemic failure to optimize introduction of storage as a solution to ongoing operational problems.

7. Andrews Kurth7 Roger D. Feldman, Andrews Kurth, LLP Chair, Clean and Renewable Energy Group (D.C. Office) 40 years of practice (energy and environmental finance and regulation) Director, American Councel on Renewable Energy Chair, ABA Renewable, Alternative, and Distributed Energy Committee Best Lawyers in America – 2005-2012; Who’s Who in American Law – 1990-2012 Rogerfeldman@andrewskurth.comRogerfeldman@andrewskurth.com 202-662-3048