2. 2 Ice Storage Permanently Reduces Peak Demand Building A/C is the big demand problem 80 Million installed, 7+ Million units shipped last year Source: PG&E Program Advisory Group for Energy Efficiency: HVAC PAG White Paper, Proctor Engineering ~10% of building annual kW-hours, 45% of building peak demand

3. 3 Market Transformation with Ice Storage Air Conditioning Storing Wind Power 6 a.m.12 noon 6 p.m. “Ice Energy Summer Day” Load Profile Base load Commercial Lighting Commercial A/C Residential A/C Slashing A/C demand by 35%, every day

4. 4 Ice Storage Creates a Market for Off-Peak Wind Power Wind Power Generation  On-Shore wind rarely blows on hot summer days 95% is off-peak  Air conditioning load shift is a direct off-set for fossil fueled peakers Shifts daytime fossil fuel and its emissions to nighttime wind Typical Summer Day Source: 2006 California Energy Commission report midnight. noon System Demand

5. 5 Building Peak Demand and Intermittent Solar PV kilowatt hours per day

6. 6 Ice Storage Can Cover the Demand Shortfall of Solar PV A/C Storage

7. 7 ~ 56% lower NOx emission rate during off-peak ~ 40% lower CO 2 greenhouse gas emissions Reduced Smog Potential on 2% days Source for Carbon Credits Ice Storage Heals the Planet Peak vs. Off-peak CO2 Emission Rate* (Tons/MWh) Heavy AC Use *Southern California Edison Data Source & Site Energy Savings Reduced Greenhouse Gas Emissions

8. 8 Widespread Applicability: All Buildings Under 3 Stories Office Retail Restaurant Residential

9. 9  Cooling capacity is created during the night by freezing water oOff-the-shelf product, over the counter permit oBest electric condensing unit efficiency oEfficiency, not curtailment  Stored cooling energy is delivered during the peak of the day oElectric condenser “locked out” oSuperior cooling comfort and dehumidification oThe water never leaves the tank o300 watts on-peak vs. 10,000 watts (300 EER on-peak) o6 hour storage, 60 kW-hr o20+ year life, unlimited deep cycles Ice Energy’s Zero Loss Storage Breakthrough Ice Energy Storage Module

10. 10 A/C Energy Intensity Increases as Temperatures Rise Standard A/C Energy Demand Soars

11. 11 A/C Energy Efficiency Increases as Temperatures Drop Store Distributed Energy Efficiently at Night Average difference between daily high & low is ~22° F

12. 12 Temperature Change and CO 2 Concentration We are experiencing a warming trend

13. 13 Tuesday Wednesday Thursday Friday Saturday Sunday Monday Peak Shift July 2006 Peak Shift Actual Performance During the July 2006 Heat Storm

14. 14 Air Conditioning Energy Demand Sets Market Prices Highest Cost Energy Conventional AC Energy Consumption Real Time Energy Cost

15. 15 Storage Transforms the Market = True Ratepayer Relief Lowest Cost Energy Real Time Energy Cost Ice Energy AC Energy Consumption

16. 16 Demand Response versus Permanent Load Reduction JanuaryJuneDecember Significant On-Peak Cost Demand Response A/C Cycling TDV = time dependent value of energy; for additional information search: TDV cookbook

17. 17 Storage A/C Eliminates the On-Peak Energy Problem JanuaryJuneDecember Insignificant On-Peak Cost

18. 18 #1 Smart Grid Appliance for Energy Arbitrage Energy efficient storage breaks the dependency between comfort and high cost energy Low price signal stores energy Emergency & high price signal uses stored energy Peak hour AC comfort at low cost

19. 19 New Peaking Capacity is Very Expensive Anaheim Public Utilities Thermal Energy Storage Program (TES) Application

20. Anaheim Public Utilities Thermal Energy Storage Program (TES) Application Anaheim Public Utilities Thermal Energy Storage Program (TES) 45 MW 1 Energy Distributed Energy Storage Plant versus 50 MW Peaker (Muni) Assumptions: 15 years, 7.5 kW peak demand reduction/unit, 6,000 units, 2,000 buildings

21. 21 Strong Alignment with Public Policy Goals  Permanently reduce peak demand 1% per year for 10 Years  Savings on energy & capacity  Savings on T&D line losses and expenditures  Savings on greenhouse gas emissions  Improve grid reliability; relieve thermal stress on distribution circuit substations, wires, and building transformers  Insulation against the impact of 1 in 10 heat driven events  Create a market for off-peak renewable wind energy  Improve the value of intermittent Solar PV  Applicable to majority of utility customer base  Local economic development

22. 22 Asks  Decouple Utility Profits from KW-hr sales  Put utilities in the energy efficiency and demand reduction business  Mandate the use of cost effective Demand Side Resources  Integrated Resource Plan includes Energy Efficiency and Demand Reduction  Allow preferential rates of return for distributed energy storage  Distribution asset equivalent or better rate of return (rate base storage)  Valued on an equal footing with new peaking capacity, energy, and emissions  Reduce the emphasis on silo “programs”  Increase building end use efficiency and reduce peak demand  Adopt 8760 hourly energy usage models (search TDV Cookbook)  Develop tariffs and customer incentives that support the use of storage  4-hour on-peak demand periods, higher off-peak energy differential  Contact your U.S. Representatives and Senators  Support accelerated depreciation and investment tax credit status for energy storage assisted air conditioning (e-mail gtropsa@ice-energy.com)

23. 23 Thank-You Gregory Tropsa, President 970-222-2987 gtropsa@ice-energy.com www.ice-energy.com