1. 9/12/20071 CCET at Two Years Presentation to Demand Side Working Group Meeting of ERCOT Austin, Texas October 12, 2007 Jay Zarnikau Frontier Associates

2. 9/12/20072 IBM Formed in Sept 2005 by Five Members (CNP, TXU ED (now Oncor), AEP Texas, Freescale & TxCEE) Now 19 Members (8 Full and 11 Affiliate Class) LCRA eMeter

3. 9/12/20073 CCET ORGANIZATION CCET’s objective to develop and capture the benefits of advancing technologies in: –electric energy transmission –distribution and –end use by bringing together the extensive existing facilities and technical capabilities of electric utilities, high technology leaders, and Texas universities and colleges.

4. 9/12/20074 THE COMMON INTERESTS Interface between end user and the grid

5. 9/12/20075 Projects in Progress Project # 3. Demand Response Pilot –Approved for CCET funding at February 21, 2007 Board Meeting –Residential Sector –500 Participants in Dallas & Houston (Oncor and CNP Service Areas) –This fall through 2008 summer season –Incentives offered by Retail Electric Providers –Enabled by BPL and Advanced Meter Deployment –M&V –As if Settled by ERCOT

6. 9/12/20076 Projects in Progress Project # 3. Demand Response Pilot Conduct a pilot to shift residential electric load off the daily peak Using advanced metering infrastructure and BPL communications Gauge customer reactions and acceptance Develop experience among market participants for residential demand response TDUs – Transmission & Distribution Utilities REPs – Retail Electric Providers ERCOT

7. 7 Projects in Progress Our solutions are enabled with advanced sensors distributed throughout the network and with a high speed, symmetrical communications network Low Voltage <10 Mbps Medium Voltage < 20 Mbps Fiber or Wireless Backhaul 1 Gbps (fiber), 1-3 Mbps (wireless) MAN DWDM Multi Gbps Carrier POP Utility Substation (Operational & Non- operational Data) Metro Area Fiber Network Managed In Home Network Private Intranet Utility Partner Real time control & verification All meter data Distribution Point Current and voltage sensing at the transformer CT Coupler & CT Bridge® Current Node CT Coupler & CT Backhaul-Point CT Coupler® & CT OTP™ BPL Network Architecture on Oncor System Source: CURRENT Group LLC

8. 8 Projects in Progress CURRENT/CSE HAN Architecture CURRENT Look / Demand Response Software CT Bridge HomePlug Over LV Wiring CURRENT BPL Network BPL Smart Meter DLC Switch High speed connectivity to each electrical outlet through HomePlug standard and ability to add / adapt to evolving standards through gateways PHEV BPL to HPCC / Other Gateway In-home HAN Network with Flexibility to Enable Various Standards if Necessary Solar Panel Source: CURRENT Group LLC

9. 9 Projects in Progress Retail Apps Customer Self-Service Utility Apps Portal Water Heater LV120VLV120V Meter Relay BPL Repeater BPL Repeater Zigbee Compressor Pool Pump RF (Radio Frequency) RF (Radio Frequency) Smart Thermostat BPL Network Architecture on CNP System Source: CenterPoint Energy.

10. 9/12/200710 Projects in Progress Project # 3. Demand Response Pilot: Participants & Supporters American Electric Power CenterPoint Oncor Austin Energy (coordinated activities) Direct Energy Reliant Energy TXU Energy Current Group Comverge Corporate Systems Engineering

11. 9/12/200711 Projects in Progress Project # 3. Demand Response Pilot: Objectives TDUs: Demonstrate that new advanced metering infrastructure (AMI) technologies can contribute to higher grid performance and lower demand when needed through consumer programs Retail Electric Providers: Test marketing strategies to enroll consumers in programs, and determine if the customer experience will support demand side programs as a permanent part of their supply strategies ERCOT: Gather data for settlement process and develop added flexibility for the electric system during peak demand periods CCET: Establish role of research and development organization in introducing new technologies

12. 9/12/200712 Demand Response Pilot: Scope of Pilot CenterPoint & Oncor Advanced Metering Infrastructures Using BPL 1,000 Customers  500 Each Area Loads To Be Controlled Thermostat setbacks HVAC compressors Electric water heaters Pool pumps TDU Energy Efficiency Program Market Transformation Program 3 Retail Electric Providers Direct Energy Reliant Energy TXU Energy Technology & Service Vendors CURRENT Comverge Rollout Late Summer & Fall 2007 Conti in 2008

13. 9/12/200713 Projects in Progress Project # 3. Demand Response Pilot: The Players Oncor Area Pilot Direct Energy Reliant Energy TXU Energy CURRENT Corporate Systems Engineering CenterPoint Area Pilot Direct Energy Reliant Energy TXU Energy Comverge ERCOT

14. 9/12/200714 Projects in Progress Project # 3. Demand Response Pilot: Expectations –Leverages the AMR/BPL roll-out –REPs recruit their current customers from 10,000 - 18,000 customer target in each area –REPs install two-way communicating thermostats and switches in 500 customers homes each area, via subcontracts with CURRENT & Comverge Devices are addressable through the Internet (IP) Load control signals to these devices via BPL –Customers’ load is reduced by each REP when needed By Oncor & CNP during peak months As desired by REP at anytime –Oncor & CNP provide 15-minute meter reading data to ERCOT at the end of each month. Data will be used to validate peak demand reductions

15. Source: Oncor Electric Delivery 15 REPs Customer Relationship Technology Vendors Controllable Load TDUs 15-Minute Meter Data R&D and EE Funding Communication Vendor Vendors of Switches, Thermostats Installation Vendor/ Contractor Vendor/Contract Validation Customers CCET Project Management ERCOT Validation Settlement Protocol Projects in Progress Project # 3. Demand Response Pilot: Relationships & Responsibilities 15-Minute Meter Data R&D $s Energy Efficiency $s kW Reductions Equipment Services R&D $s