1. Chicago Advanced Energy Demand Response & CSP Evolution Kellen Bollettino Comverge Inc. 10/23/14

2. Discussion Topics Comverge/Enerwise Introduction PJM & ComEd Demand Response Evolution –Capacity Market Program PJM Rules Changes –Synchronous Reserve ComEd opportunity –Energy Efficiency Credits ComEd and DCEO –FERC Order 745 & DC Courts

3.  Leading provider of Intelligent Energy Management (IEM)/Demand Response (DR) solutions  Headquartered in Atlanta, GA  ~520 employees  Revenues: 2011 - $136.4 million, 2010 - $119.4 million,  Acquired by H.I.G. Capital on May 16, 2012 Highlights Comverge Overview Sample Clients C&I 43% Program Experience 3 © 2012 Comverge, Inc. Vertical Market Expertise  Industrials  Water/waste water  Education  Manufacturing  Health Care  Retail  Hospitality  Public administration  Open Markets  Utilities

4. PJM Capacity (Summer) Program - RTO - Obligation to respond to capacity emergencies when called by PJM June through September; 11am to 7pm CST; Non-Holiday Weekdays Maximum of 10 outages for a maximum of 6 hours each Response within 30 minutes of the dispatch from PJM 100 kW minimum - Daily payment earned from June 1st through May 31 st for readiness to respond -2015-16 payments of $118.54/MW day ($43,267/MW from 6/1/15 through 5/31/16) -Extended Summer $136/MW day ($49,640/MW)* - 2016-17 payments of $59.73/MW day ($21,801/MW from 6/1/16 through 5/31/17) -2017-18 payments of $106.00/MW day ($38,690/MW from 6/1/17 through 5/31/18) -Extended Summer $120.00/MW day ($43,800/MW)* - An energy payment may also be received during a curtailment event *Extensions of Summer Months with additional opportunities for Events

5. 2015-2016 Program Changes 30 Minute Dispatch (Note: There is no change in dispatch time for the 2014/15 Capacity season.) –The Federal Energy Regulatory Commission (FERC) approved a request by PJM to move the default dispatch time for the PJM Capacity program from 120 minutes (2 hours) down to 30 minutes. Starting in delivery year 2015/16, PJM Capacity Market demand response program participants will be expected to curtail within 30 minutes of dispatch. –Comverge is working with PJM and FERC to broaden the rule and the exception process, but for now, it is anticipated that there will be very few exceptions to the new dispatch requirement and we are operating under the assumption the FERC’s May 9 th order will hold. –Potential Exception Descriptions Transfer of load to back-up generation requires time-intensive manual process taking more than 30 minutes On-site safety concerns prevent location from implementing reduction plan in less than 30 minutes The manufacturing processes for Demand Response require gradual reduction to avoid damaging major industrial equipment used in the manufacturing process, or damage to the product generated or feedstock used in the manufacturing process –Possible Implications Deployment of Direct Load Control and/or Remote Operation of Generation Assets Removal from Program in 2015

6. 2015-2016 Program Changes Limited, Extended, and Annual Programs Limited (Current Program) Available for interruption for up to 10 times during curtailment period June through September (Weekdays, excluding holidays, from 12:00 pm – 8:00 pm) Each event could last up to six (6) hours in duration Extended Available for an unlimited number of interruptions during an extended curtailment period June through October and the following May (7 days/week between the hours of 10:00 am – 10:00 pm) Each event could last up to ten (10) hours in duration Annual Available for an unlimited number of interruptions during the delivery year Extended summer period of June through October and the following May (7 days/week between the hours of 10:00 am – 10:00 pm) November through April (7 days/weeks between the hours of 6:00 am – 9:00 pm) Each event could last up to ten (10) hours in duration

7. PJM Synchronous Reserve Program-- Overview PJM Regional Transmission Owner ’ s occasionally need immediate assistance with system reliability Need loads to reduce quickly – within 10 minutes Load that can respond in 10 minutes will get paid for that ability to respond Load will have to stay reduced for a maximum of 30 minutes per event. Estimated 25 events per year Get paid for every hour available to be called Value based on Synchronized Reserve Market Clearing Price ComEd – 2014 YTD: 7 Events Averaging 16 Minutes – Totaling $29,464.77 in Revenue Based on $2 Strike Price Penalties for non performance and multiple missed performances.

8. MonthNet Sync TotalHours Cleared 2013$6,041.76 802 1$0.00 - 2 - 3$2.00 1 4$22.48 6 5$8.44 3 6$0.00 - 7$2.50 1 8$0.00 - 9$252.63 39 10$1,182.83 166 11$1,688.26 243 12$2,882.62 343 2014$29,464.77 1,524 1$10,203.05 97 2$4,282.38 226 3$3,884.70 243 4$3,819.34 360 5$2,991.69 213 6$1,259.25 88 7$1,285.47 103 8$1,081.06 119 9$657.83 75

9. PJM Energy Efficiency (EE) Program What Projects Qualify? NOT Demand Response (DR) Lighting HVAC Motors VFD’s Refrigeration Equipment Weatherization / Building Envelope Process Improvements Any Electrical Reduction Improvement

10. PJM Energy Efficiency (EE) Program Permanent & Continuous Peak kW Demand Reduction during Performance hours: June thru August, Weekday, Non-Holiday, 3-6pm ComEd DCEO Credits Available Installation Period Fully Installed by June 1 st of Eligible Delivery Years June 2011 – May 2012 Install Date Before May 2012

11. © 2012 Comverge, Inc.  DC Courts Have set a ruling that FERC does not have the Authority to Regulate a DR Market  Utility Generator has requested all C&I DR be cancelled before June 1, 2015  DR will not be going Away but will potentially change  Enerwise and Other CSP’s are fighting this ruling to keep DR available  Current DR customers can send letters to the Courts and FERC expressing the positive Impact DR has. FERC Order 745 & DC Courts 11

12.  Demand Response and Similar Programs are Evolving  Utilize Knowledgeable Curtailment Service Provider Guidance  Programs Involvement Becoming More Automated.  Participation supports local electric supplier’s efforts to produce and deliver electricity more efficiently and cost-effectively  Comverge offers solutions that help effectively participate in the PJM Demand Response programs to maximize revenues and energy savings Summation

13. Kellen Bollettino Comverge – Sales Executive (847) 323-2984 kbollettino@comverge.com