Energy Curtailment Specialists, Inc. Introductions Paul Tyno, Executive Vice President Program Development −Responsible for the implementation of the demand response curriculum working closely with prospective clients (utility / program participants), federal and state regulatory organizations, current curtailment resources, business / trade associations, economic development corporations and affiliate service providers. Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. AESO DRWG Group Power Grid Benefits Electric Customer Benefits Positive Impact on Community Reduces Power Grid Outages Lowers Wholesale Energy Costs Advanced Metering, Resource Management Environmentally Responsible Flexibility to Meet Demand at Low Costs Financial Incentive Understanding stakeholder roles Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Market Presence • New York – Albany – Buffalo (HQ) – Long Island – New York City – Rochester – Syracuse • New England – Boston, MA. – Stamford, CT. • Mid-West – Kansas City • Ontario • California – Los Angeles – San Francisco (HQ) – San Diego • PJM Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Value Proposition Demand Response is one of the few “technologies” that can target energy and environmental issues positively while providing an economic stimulus to other initiatives. Demand Response Energy Efficiency Conservation Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Impacts As the price of energy increases we need to take measures that offset some of the increased cost, such as conservation and upgrades to equipment for better efficiency. We will always continue to run the operation and use the energy, so we need to remain vigilant with regard to energy conservation. - M.P., Survey Respondent Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Program Design Design programs that foster participation: Establish parameters of program that will facilitate participation from all sectors of the market, thereby maximizing program volume. Compensation to Participating Customers: The single most important piece of the demand response program puzzle is the compensation that is to be paid to participants. Establishing the parameters of the program: It is important to identify the minimum kW qualifications, service classes that are eligible, etc. Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Program Design When will the Demand Response Resources be utilized: DR programs need to consider call frequencies, event durations and curtailment seasons. It is critical to set the time frame in which resources will be needed daily, weekly, annually, or for a stated number of months. Advanced Notification of Events: Programs that provide a courtesy advanced notification have higher performance ratings vs. requiring almost immediate response. Even if only a courtesy notice, you can maximize participation and performance during event calls. Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Program Design Baseline and Measurement of Curtailment: Baseline methods must have predictability, simplicity, accuracy, minimization of gaming, and consistency with other methods used. Penalty Structure: This component of a demand response program carries significant weight to the end use customer so care must be given to balance competing interests; marketability and reliability. Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Program Design Event Trigger Mechanism: Predictability of event calls. With clear event triggers participants learn the signs of when and how events will be called, and thereby start to anticipate when they need to be ready to respond. Resource Flexibility: Allow for resources to change their committed curtailment levels monthly (some regular interval) because of operational characteristics. Form of Payment to Customer: Direct payment vs. bill credit. Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Best practice demand response Establishing a Reduction Action Plan (RAP) Implemented with understanding and support of all levels of the organization. Strong emphasis placed on assessing how the customer will be able to perform and preparing the customer for the event call. Provides action items for personnel to ensure desired objectives are met: 1. Personnel notification / Ensure communication for event calls i. Several contacts and ways of communicating that information is essential so that participants are timely informed about event activations. 2. Identification of loads to be curtailed 3. Automated controls / Installation of automated equipment 4. Manual loads adjusted Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Best practice DR– out take Field Representatives / Staff Training Representatives: Trained in the essentials of curtailment principles, our staff evaluates each prospective facility by means of a walk-through and site survey. They are equipped to identify curtailment opportunities at the appointment and solidify a new customer into the program and solidify their participation. In addition to equipment assessments, standard functions of a ‘typical day’ are analyzed to isolate each facility’s immediate curtailment opportunities while operational characteristics are reviewed to unearth further potential. Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Best practice demand response Post Event Analysis 1. Data reconciliation 2. Performance analysis i. Review data with client ii. Address performance issues iii. Examine additional reduction capabilities / opportunities 3. Publicize resource participation / issue press releases 4. Readiness for next event Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Criteria for success Provide value beyond DR participation (efficiency, information, emissions) Tools to make sound financial decisions Allow user control / input to manage events Protect the core business i.e. critical loads Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Service provider interface Relationships: With grid operators / utilities •What can be provided •Types of structure Participants •Contractual arrangements •Typical interaction Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Energy Curtailment Specialists, Inc. Confidential – Property of ECS, Inc Energy Curtailment Specialists, Inc. Contact Information Paul J. Tyno Executive Vice President Program Development Energy Curtailment Specialists, Inc. Corporate Office 4455 Genesee St. Building 6 Buffalo, NY 14225 1-877-711-5453 ext. 229 office (716) 565-0506 fax (716) 818-8448 mobile ptyno@ecsgrid.com Confidential – Property of ECS, Inc