© EnerNOC Inc.

Demand Response 101

Johnson Energy Club

January 23, 2013

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Agenda

• Demand Response Overview• How it works

• Three perspectives• Quick Case Study• Discussion / Next Steps for MBAs

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How Demand Response Works

Utility Anticipates Supply Shortfall

Utility Notifies EnerNOC of pending grid emergency

EnerNOC dispatches its portfolio of customers to curtail energy usage

Customers initiate curtailment plan

EnerNOC network operation center coaches underperformers

Load reduction is delivered to the grid at precisely the time it is needed

Customers receive payment for verifiable load delivery

Notify Respond Restore

Typical Demand Response Event

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C&I Customers of all types

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Balancing supply/demand is difficult and expensiveEnd users of electricity that provide a balancing resource can be compensated

Annual Electricity Demand As a Percent of Available Capacity

50%

100%

Winter Spring Summer Fall

75%

25%

90%

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Preserve the Environment

Earn Payments Protect Your Community

Protect Your Operation

Strong value proposition to end-users

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EnerNOC’s Mission: Unlock The ValueComprehensive application suite for every energy management need

Meters

Bills/Rates

External (e.g. weather, prices)

BMS/BAS/EMS

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Quick Case Study: California industrial end user

Multi-tenant industrial park in PGE service territory

• Converted building with inconsistent metering

• One of the large tenants has a corporate sustainability effort and works with an energy consultant

• Most tenants are smaller, privately held entities

• Decision-makers include a part-time property manager, PG&E account representative and the individual business managers

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Clear opportunity for EnerNOC-created value

Local Utility

Industrial

Institutional

CommercialEnerNOC provides:

1. Customized energy reduction plans

2. Simple, no-cost implementation

3. Maximum event preparedness and performance

4. Maximized payments and revenue assurance

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Focus: End User’s Perspective

• Other priorities

• Current energy management landscape (rates, operational considerations, decision-making, etc.)

• Cost

What are the levers?

- Utility perspective- End user perspective - EnerNOC perspective

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Discussion / Next Steps for MBAs

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Brian AlwardAccount Manager