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Aggregating Small Loads to provide Ancillary Services

Residential Load is Almost Half of ERCOT Total Load at Peak.

11

Source: ERCOT 2010 State of the Market Report

21,000 MW of Residential Summer

Peak Load

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Aggregating Residential Load Controls Significant Demand During Peak Periods.

Mean: 2.99 kWStd Dev: 1.99

kW

No.

HV

AC

Hou

rly R

ead

s

Avera

ge k

W U

se/H

VA

C U

nit

Time of Day (PM)Avg. kW

Based on HVAC units at 397 homes monitored across three TX utilities from 3PM to 7PM, June through September 2011.

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Next Generation DR Controls Over Half of the Load at the Home.

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Based on 397 Consert gateways located within three TX utilities from 3PM to 7PM, June through September 2011. Chart data is average hourly kW

No.

of H

ourly

Gat

eway

Rea

ds

3.06 Mean kW/Gateway

© CONSERT INC.

THE VIRTUAL PEAK PLANT™ PROCESS.

Load Management/Measurement Devices Are Installed•Communicating meter with Consert gateway•Load control device for water heater, EV, and other loads•Thermostat for HVAC control

1.

Consumers createenergy use profilesProgram, monitor and adjust household usage through web portal.

2.SMART HOME

Public Wireless Network 3G & 4G wireless technology provides real-time communication between consumers and utilities.

3.

Data CenterBuilt on IBM software platforms, including DB2, WebSphere and WebSphereMQ. Pass data in HHF format.

4.

Consert’s Virtual Peak PlantAllows the utility to monitor, measure, and control disaggregated loads over a real-time, standards-based IP network.

5.

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CUSTOMER FOCUSEDSOLUTION.

1. Up to 20% Savings on energy efficiency

2. Work within boundaries defined by the

customer

3. Opt out at any time

4. Free Home Energy Management System

5. Anytime, anywhere access

© CONSERT INC.

INSTALL MEASUREMENT AND DEVICE CONTROL.For Next Generation DR

MEASUREMENT & DEVICE CONTROL

POOL PUMP

HVACWATER HEATER

SMART HOME

With the Consert solution 40% to 60% of residential home energy consumption is under control and manageable.

© CONSERT INC.

Data Source:High-Level Process Evaluation for DM Pilot Project Post Summer Curtailment Participant Study ResultsLCRA and Bluebonnet Electric Cooperative | October 2011

“I like the way the whole program operates.”

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CUSTOMERS and Next Generation DR with Consert.

Data Source:High-Level Process Evaluation for DM Pilot Project Post Summer Curtailment Participant Study ResultsLCRA and Bluebonnet Electric Cooperative | October 2011

“I feel like I want to proactively save money and save energy.”

© CONSERT INC.

CUSTOMERS and Next Generation DR with Consert.

Data Source:High-Level Process Evaluation for DM Pilot Project Post Summer Curtailment Participant Study ResultsLCRA and Bluebonnet Electric Cooperative | October 2011

“I’m able to better manage the temperature.”

© CONSERT INC.

CUSTOMERS and Next Generation DR with Consert.

CUSTOMERS and Next Generation DR with Consert.

Data Source:High-Level Process Evaluation for DM Pilot Project Post Summer Curtailment Participant Study ResultsLCRA and Bluebonnet Electric Cooperative | October 2011

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Utility Has Complete Control of the CLR unit.

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Utilities have access to load management, and can see real-time power availability at any time.

“Utility Control Center

“© CONSERT INC.

Aggregated Residential DR is a Reliable Load Resource.

Facts

Event Participan

tsOutsideTemp Date

60% 75 102 8/3/1180% 205 102 8/4/11

100% 64 100 6/14/11

Pct

. of

Targ

et

Load

Event Duration (in 5 min. increments)

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Most Customers Choose Not to Opt Out.

Event DetailsParticipants 205Date 8/4/11

© CONSERT INC.

© CONSERT INC.

Current Efforts in ERCOT• Scope of Pilots and POCs

– LCRA• Bluebonnet Electric Cooperative: peak at ~212 meters/participants; 569 kW peak Power Available

– ICCP Telemetry– 10 Second Device Data

• Pedernales Electric Cooperative: ~100 meters/participants; 276kW peak Power Available – ICCP Telemetry– 10 Second Device Data

– Grayson-Collin Electric Cooperative: under way with 200 installs planned– CPS Energy

• Pilot: 89 meters/participants; 164 kW peak Power Available 2010 – 2011• Early Commercial Deployment: 500 installations ~1 MW peak power• Full Deployment: 140,000 meters/participants; 250 MW peak Power Available

– Implementing ICCP Telemetry– 10 Second Device Data

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Current Efforts in ERCOT• Proposed Uses for Consert Technology with MPs

– Reduced kWh consumption / energy efficiency of 10% - 20%– Reduced 4 CP and TCOS– Real Time MCP events for negative load/wholesale energy– Load Resources

• Pre-POC/CLR: EILS• Post-POC/CLR: Non-Spin, Responsive Reserve, and eventually Regulation

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Aggregated Load as a CLR• Premise

• Consert believes it can provide value added Load Management Services into the ERCOT market by aggregating residential and small commercial load, and providing the load resource telemetry to ERCOT

• Consert is looking to get approved under the CURRENT Nodal Controllable Load Resource (CLR) Protocol and Operating Guidelines

• Consert plans to run a Proof of Concept (POC) with ERCOT emulating a CLR test plan

• History• Consert has numerous pilots underway with ERCOT Munis/Coops for 6+ months• Consert has been working with ERCOT to determine a path forward and any showstopper issues in

order to perform a CLR POC Test

• Consert recognizes that potential future ERCOT protocol changes could optimize the tool’s use in the ERCOT market, but for now no ERCOT PRRs are planned

© CONSERT INC.

Aggregated Load as a CLR• In discussions with ERCOT staff, the following are baseline criteria for the Consert solution in

the ERCOT Controllable Load Resource (CLR) market as defined by ERCOT protocols• No Under Frequency Relay (UFR) is required• Resource will have primary frequency response capability that automatically responds to frequency

changes similar to a generator governor• Aggregation of Load must be at a transmission physical load point as defined in the ERCOT network

model• Aggregated load must be modeled to 1, and only 1, transmission physical load point• No resource rollover would be possible for Consert solution at this time due to network model

limitations• Aggregated load must be at least 100kW to offer into the ERCOT Ancillary Service CLR markets and

qualify under the Nodal CLR test plan• Aggregated load must follow ICCP operating guidelines and performance criteria• Aggregated load must be base lined for M&V analysis and settlements

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Topics to Address

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Summary• Consert currently plans to conduct its Proof of Concept with ERCOT and MPs in late 2011 / early 2012• Data from POC will be provided to ERCOT for independent evaluation• ERCOT has committed in providing recommendations for improvements in the ERCOT markets• ERCOT has committed in updated processes and procedures for small load resources• Again, we are not planning to submit any changes to the ERCOT protocols or operating guides at this time

© CONSERT INC.

Discussion

• Challenges/Barriers• Next Steps and Action Items