1. SMART METERING SOLUTIONS TO SHAPE OUR ENERGY FUTURE Empowering the Customer Experience Marketing Executives Conference Cranwell Resort Lenox, Massachusetts September 17, 2007 Empowering the Customer Experience Marketing Executives Conference Cranwell Resort Lenox, Massachusetts September 17, 2007 Presented by Thomas Philbin, President NXEGEN LLC An EnergySolve Company

2. PROPRIETARY & CONFIDENTIAL - Page 2 INTRODUCTION AND OVERVIEW  Demand Response Management (DSM) History  DSM Enabling Technologies  Real Time Smart Meter Example Present vs. Future Capabilities  Conclusions  Demand Response Management (DSM) History  DSM Enabling Technologies  Real Time Smart Meter Example Present vs. Future Capabilities  Conclusions

3. PROPRIETARY & CONFIDENTIAL - Page 3 DSM History  Goal of Utility: Shape Customer Demand to Utility System Needs  Characteristic : No Customer Control – Prescribed Actions Specified by the Utility  Goal of Utility: Shape Customer Demand to Utility System Needs  Characteristic : No Customer Control – Prescribed Actions Specified by the Utility

4. PROPRIETARY & CONFIDENTIAL - Page 4 DSM Enabling Technologies Present into the Future  Direct Load Control  Interruptible Load  Curtailed Load  Time of Use (TOU) Pricing  Real Time Pricing  Critical Peak Pricing  Demand Bidding/Buyback  Direct Load Control  Interruptible Load  Curtailed Load  Time of Use (TOU) Pricing  Real Time Pricing  Critical Peak Pricing  Demand Bidding/Buyback

5. PROPRIETARY & CONFIDENTIAL - Page 5 DSM Enabling Technologies  For successful adoption by the utility and regulators, these technologies must combine: -Ease of use -Automatic and customer- initiated enablement and override -Customer access to their real time energy data.  For successful adoption by the utility and regulators, these technologies must combine: -Ease of use -Automatic and customer- initiated enablement and override -Customer access to their real time energy data.

6. PROPRIETARY & CONFIDENTIAL - Page 6 Real Time Smart Meter Example The NXEGEN System Present Capabilities The NXEGEN System Present Capabilities

7. PROPRIETARY & CONFIDENTIAL - Page 7 Three (3) primary components: NXEGEN’S TECHNOLOGY  Wireless Two-Way Communications and Control Network –Revenue-Grade metering technology for electric, gas, and water –Wireless communications network to centralize data acquisition and energy management  Wireless Two-Way Communications and Control Network –Revenue-Grade metering technology for electric, gas, and water –Wireless communications network to centralize data acquisition and energy management  Customer End Device Infrastructure –Provides the ability to monitor energy loads –Non-Intrusive Management of end device energy use with real-time data  State-of-the-Art Network Operations Center (NOC) –Central data repository –Secure customer access to data via Internet 24/7

8. PROPRIETARY & CONFIDENTIAL - Page 8 Wireless Two-Way Communications and Control Network Wireless Two-Way Communications and Control Network Technology components: –Patented wireless communications system –FCC Licensed – Private Network –Secure data transmission to RF Network Hubs –RF to Internet Links for extended distance travel –2-way communication capability –Receiving energy use & other diagnostic data –Transmitting real-time control commands and acknowledgements –Demand Response management –Dynamic routing technology-constantly updates multiple routes to Network Hubs –Patented wireless communications system –FCC Licensed – Private Network –Secure data transmission to RF Network Hubs –RF to Internet Links for extended distance travel –2-way communication capability –Receiving energy use & other diagnostic data –Transmitting real-time control commands and acknowledgements –Demand Response management –Dynamic routing technology-constantly updates multiple routes to Network Hubs

9. PROPRIETARY & CONFIDENTIAL - Page 9 Customer End Device Control  Lighting (On/Off or Dimming)  Vending  Generation Dispatch  HVAC  Lighting (On/Off or Dimming)  Vending  Generation Dispatch  HVAC

10. PROPRIETARY & CONFIDENTIAL - Page 10 Network Operations Center Software  Customer access to data analysis and reporting through Nxegen RTIS- Real Time Information System  Customer consumption  Customer peak demand  M&V of conservation projects and performance contracts  Portfolio Aggregation  Load profile  Coincidental Demand  Utility rate tariff analysis  Utility bill validation  Customer access to data analysis and reporting through Nxegen RTIS- Real Time Information System  Customer consumption  Customer peak demand  M&V of conservation projects and performance contracts  Portfolio Aggregation  Load profile  Coincidental Demand  Utility rate tariff analysis  Utility bill validation

11. PROPRIETARY & CONFIDENTIAL - Page 11 Real-Time Demonstration of System

12. PROPRIETARY & CONFIDENTIAL - Page 12 Network Operations Center Software- Recent additions under testing  Carbon Footprint Data  Carbon Savings  Real Time Pricing  Time of Use Alarming  Energy Budget Reporting and Control  Carbon Footprint Data  Carbon Savings  Real Time Pricing  Time of Use Alarming  Energy Budget Reporting and Control

13. PROPRIETARY & CONFIDENTIAL - Page 13 Network Operations Center Software- Applications under development  Zigbee Protocol Integration  Gas/Water Metering  Distributed Generation Balancing  Sub-Meter Billing  Security – Occupancy recording in conjunction with lighting  Artificial Intelligence – Exception Reporting  Zigbee Protocol Integration  Gas/Water Metering  Distributed Generation Balancing  Sub-Meter Billing  Security – Occupancy recording in conjunction with lighting  Artificial Intelligence – Exception Reporting

14. PROPRIETARY & CONFIDENTIAL - Page 14 Conclusions  Smart Meters will be used with the traditional DSM enabling technologies, thereby – –Increasing effectiveness –Reducing cost  Smart Meters will offer utilities and their customers new opportunities to save energy and demand in order to shave system peaks and reduce customer bills  Nxegen has a patented system that covers any control of end uses from a central facility using smart meters  Smart Meters will be used with the traditional DSM enabling technologies, thereby – –Increasing effectiveness –Reducing cost  Smart Meters will offer utilities and their customers new opportunities to save energy and demand in order to shave system peaks and reduce customer bills  Nxegen has a patented system that covers any control of end uses from a central facility using smart meters

15. PROPRIETARY & CONFIDENTIAL - Page 15