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CenterPoint Energy 2012 Commercial Load Management

November 2011

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Program Manager – Contact info

David Dzierski713-207-3341 office281-782-2265 cellulardavid.dzierski@centerpointenergy.com

CenterPoint Energy1111 Louisiana St.Floor 9Houston, TX 77002Attn: David Dzierski

November 2011

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Load Management Support

Golden Energy Services Jerry Golden – Load Management

Consultant Frontier Associates

Bill Brooks, Kyle Caffey, Brandon Wilson CenterPoint Energy Distribution

Dispatching Mike Dodd

CenterPoint Energy Contract Administration Terry Munder

November 2011

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Load Management 2012What is it?

The Load Management Standard Offer Program (EnergyShare) is a performance-based demand response program that offers financial incentives for curtailing electric load when notified during the summer peak period. EnergyShare Load Management Demand Response Curtailment Program

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Program Eligibility

CenterPoint Energy metered customers meeting kW thresholds: Non-residential Distribution level

customers Governmental agencies (all levels) Educational facilities (all levels) Other not-for-profit agencies (all levels) Industrial non-transmission class

___________________*(Transmission customer sites are NOT eligible unless in the

government, education or non-profit category)

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Why should you participate?

To provide assistance during an ERCOT emergency situation. (EEA2A)

The test curtailment is an excellent way to prepare for a hurricane or disaster.

The Sponsor will be compensated. A good way to exercise your

equipment under load. It is a good thing to do. Help David make his goal!

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Wow, What a Year!

Aug 27 was hottest day in city history = 109

Avg daily high temps: June = 97.4 Aug = 102 Sept =95.5

Consecutive 100 degree days = 8 (Aug

26- Sept 2)

Driest summer of all time = 5.6 inch

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EnergyShare Program History

Program Year

MW Goal MW Actual

2008 12.5 16.02009 31.5 33.02010 70.0 81.52011 78.0 71.2 avg2012 112.0 ?

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2011 Results

Proposed 78.3 MW 17 Sponsors 181 Sites (meters)

6/9 Test 89.2 MW 8/4 EEA2B 57.1 MW 8/24 Test 67.2 MW Average 71.2 MW

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2011 Results - Participants

Participant Type No. of Participants Avg kW Curtailed

Manufacturing 19 27,830

Hospital 8 6,178

Office 1 1,472

Retail 91 7,092

School 33 19,238

Water/Waste Water Treat

29 9,408

Total 181 71,218

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2012 Program Basics

A Standard Offer Program Standard Offer = First Come First Served

Pays incentives ($40/kw curtailed & verified ) to participating Project Sponsors

30-minute curtailment notice Application deadlines and rules will

be posted at:http://www.centerpointefficiency.com/

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2012 Incentive Budget

$4,500,000 112.5 MW

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Electric Reliability Council of Texas (ERCOT)

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Federal electric reliability councils, including ERCOT, are shown in the map below. EnergyShare benefits not only the local area but also helps to lend mutual support to others served by ERCOT

An orderly plan to reduce load during a shortage of generation

• Procedures for reducing System Demand in emergency situations

• Provides for maximum possible continuity of service while maintaining the integrity of the ERCOT System

• Reduces the chance of cascading outages

• Outlines when and how demand (load) can be curtailed

The Energy Emergency Alert (EEA)

Level / Event Triggering EventSystem Operations

ActionsPUC Powerful Advice Web

SiteLegal / Corporate

Communications Actions

Media Notification (after PUC &

others notified)

Advisory < 3000 MW adjusted reserves

Note on "PUCT Daily Report" email (distribution: PUC, ROS listserv [open list])

Conservation Encouraged - Normal Conditions

None None

Watch < 2500 MW adjusted reserves

Start RMR units; Instruct QSEs to suspend generation testing; Deploy non-spin reserves; Dispatch quick start capacity

Conservation Encouraged - Normal Conditions

Notify GridAlert list* if potential for emergency situation.

None

Peak demand expectation

Demand exceeding current records

Notify Corporate Communications of high demand expectations

Conservation Needed - Power Watch (optional)

Notify GridAlert list* if potential for emergency situation.

Release to media, if appropriate

Firm load shed Grid operations requesting utility to drop load

Notify Corporate Communications of firm load shed via emergency notification system

Conservation Needed - Power Watch (optional)

Notify GridAlert list* with summary of situation

Release to media, if appropriate

EEA Level 1 < 2300 MW adjusted reserves

Use capacity available from DC ties; Dispatch uncommitted units

Conservation Needed - Power Watch

Notify GridAlert list* with summary of situation

Release to media, if appropriate

EEA Level 2A -- MEDIUM potential for firm load shed

< 1750 MW adjusted reserves

Deploy interruptible loads (LAARs); Begin block-load transfers of load to neighboring grids

Conservation Needed - Power Watch

Notify GridEmergency list ** Release to media, if appropriate

EEA Level 2B -- HIGH potential for firm load shed

To maintain system frequency at 60 Hz or adjusted reserves trending downward or not available

Deploy Emergency Interruptible Loads (EILS) if available Conservation Critical -

Power Warning

Notify GridEmergency list** - plus State Operations Center (SOC) with "High Priority"

Release to media, if not already done

EEA Level 3 To maintain system frequency at 59.8 Hz or greater

Instruct transmission operators to shed firm load via rotating outages in blocks of 100 MW

Power Emergency - Rotating Outages

Notify GridEmergency list** Release to media

Cancellation of EEA Level 3

Frequency restoration n/a Conservation Needed - Power Watch

Notify GridEmergency list** Release to media

Cancellation of EEA

Grid conditions normal n/a Conservation Encouraged - Normal Conditions

Notify GridAlert list** Update media as needed

Energy Emergency Alert (EEA) Communications Matrix

Maintain 2,300 MW of on-line reserves1

2A

2B

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Maintain 1,750 MW of on-line reserves. Interrupt loads providing Responsive Reserve Service.

Interrupt loads providing Emergency Interruptible Load Service (EILS).

Maintain System frequency at or above 59.8 Hz and instruct TSPs and DSPs to shed firm load in rotating blocks.

Energy Emergency Alert (EEA) Process in the ERCOT Protocols

EEA procedure in the ERCOT Protocols defined by levels

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Program Eligibility

CenterPoint Energy electric customers and 3rd Party entities representing distribution level or other governmental, educational, and non-profit customers.

Project sponsors must have a normal aggregate peak demand of 750 kW or more, and with each participating site averaging 250 kW peaks and capable of curtailing at least 100 kW.

Project Site(s) must be equipped with a CenterPoint Energy Interval Data Recorder (IDR) meter.

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How do I know if I am a CenterPoint Energy customer?22 digit ESID number on electric

billESID 1008901003455779101009The 1st seven digits identify the

utility 1008901 = CenterPoint Energy

If you are not sure, call David.

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IDR Meter Info

Must have an IDR meter to participate.

Cost of new IDR meter = $365 (minimum) Additional monthly customer cost to read meter

= $84 Cost of IDR meter is customer’s responsibility

Smart Meters Currently being installed within CNP

service territory. Contact Kevin Kulhanek @ 713-207-

3444 to schedule an IDR meter installation

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Ways to participate

Substantial backup generation Underutilized cogeneration capacity Blower motors as in wastewater

plants Loads that can be shifted off peak

for brief periods Alternative drive systems (such as

steam absorbers, gas-drive motors) Unnecessary daytime lighting, air

handling, elevators (limited applicability)

THESE ARE EXAMPLES ONLY..ANY EFFECTIVE ELECTRIC LOAD SHIFTING CAN QUALIFY.

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Ways to Participate

November 2011

• Pipelines (alter pumping schedule)• Water & wastewater (pumping/blowers)• Commercial (with stand-by generators)• Gen-sets and angle-drive (power substitute)• Pumps and Motors (alter schedule)• Electric Furnaces (slow processes)• Chillers (“coast” through peaks/direct drive)

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Curtailment Information

The peak demand period is June 1 through September 30, 1-7 p.m. weekdays, excluding federal holidays.

30 minute notice for all curtailments! One (1) or two (2) Scheduled Test

Curtailments from 1 - 3 hour’s duration. A maximum of four (4) Unscheduled

Curtailments of 1 to 4 hours of duration each year.

Maximum of five curtailments totaling 19 hrs./yr.

Trigger = ERCOT EEA2ANovember 2011

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Participation is a 5 Part Process

1. Application2. Contract3. Performance Period4. Measurement and Verification5. Incentive Payments

a) $40/kw at the completion of the summer peak period

b) Potential for bonus payment

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Load Management Application

Electronic applications will be accepted beginning November 8, 2011 beginning at 10:00 am CST.

Electronic applications will be submitted on December 8, 2011 beginning at 10:00 am CST.

Frontier Associates will provide instructions on how to access and complete an application.

Sponsors who have signed a contract will not be required to re-sign the contract but will be required to submit a new application each year!

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Load Management Application

November 8 – Begin filling out applications.

December 8 – Submit applications beginning at 10:00 am CST. You must submit an application to be considered for participation!

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Application

Submitting an electronic application does not guarantee that you will be approved to participate in the 2010 Load Management Program.

CenterPoint Energy will review and approve qualified applications. (service territory, kw reduction min., past performance, etc)

I am going to use a very sharp pencil! We will not oversubscribe the program

goal.

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Contract

The project Sponsor will be required to sign CenterPoint Energy’s Load Management Standard Offer Program contract. W-9 MWBE Certification Electronic Funds Transfer Authorization Contract questions – Terry Munder 713-

207-6398

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Incentive Payments

Payments $40/kw at the conclusion of the summer

peak period + the potential for a bonus payment.▪ (mid October - early November)

Checks will be issued when initiated in SAP by the Program Manager! (in lieu of net 30 days)

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Bonus Payment Example

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The Bonus Payment will not exceed $40/kw. The Bonus Payment will be paid at a pro rated share not to exceed the total budget.

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EnergyShare 2012

FOR MORE INFORMATION: To access the Program Manual, Application instructions and sample contract, please go to the following web site :

http://www.centerpointefficiency.com/

For answers to specific questions about your facility or potential participation, contact David Dzierski at 713.207. 3341, or by e-mail at: david.dzierski@CenterPointEnergy.com

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Frontier Associates

Please welcome Kyle Caffey (Frontier Associates) A Demonstration of the electronic

application process

November 2011