1National Grid

11/09/2021

2021-2022 Gas Demand Response Program

Overview and Next Steps

2National Grid

• Anthony Rondinelli – Manager of Customer Solutions

• Alberto Edde – Sr. Analyst, Future of Heat group

• Owen Tyrrell – Sr. Analyst, Future of Heat group

Presented by

Cash & Recovery PMO | Program Delivery Approach | Draft – For internal discussion purposes only

3National Grid

Welcome to our 2021/22

Demand Response Program!

3

Thank you for working with us to lower gas

demand during the upcoming Winter season!

During the winter months, demand is at its highest

between the hours of 4AM-10AM and from 5PM-

9PM.

Your demand response participation during these

high-volume periods helps us better manage our

overall system needs for all National Grid

customers.

4National Grid 4

• Program overview

• Communications Test

• Event types

• What happens during an event?

• Performance Scorecard

• End of season – Incentive payments

• Post-season survey

• Q&A

Agenda

5National Grid

Gas DR Program Overview

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• Purpose:

This program aims to achieve the necessary peak day and peak hour reductions needed to operate our system in a safe and reliable way, during the critical Winter months, reducing the need for costly infrastructure upgrades and the subsequent carbon emissions.

• Daily DR (load reduction)

Aimed at customers that can switch their fuel source or shut down process loads, with no preheating or snapback as a result. Heating oil and other non-gas back up fuel sources are allowed. Direct Load Control (DLC) options are available.

• Hourly DR (load shift)

Aimed at customers that are not able or willing to switch their fuel source. Preheating and/or snapback are allowed, but they cannot utilize heating oil as a backup fuel source (only electrical sources such as heat pumps). DLC not available for this option.

6National Grid

Program options

Cash & Recovery PMO | Program Delivery Approach | Draft – For internal discussion purposes only

7National Grid

Communications Test

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• This test ensures streamlined communication between National Grid and its enrolled Customers,

Site Contacts and Aggregators, so they can receive our Event notifications during the Winter

season.

• IMPORTANT: This is not an Event. There is no need to reduce gas usage during the

Communications test.

• Scheduled for Tuesday, November 16th.

• National Grid will send a test message to the email addresses and cell phone numbers previously

provided by Customers and Aggregators.

• Customers and Aggregators shall reply to this test message via text to ("DR confirm" to 518-222-

0063) or email (GasDR@nationalgrid.com) to confirm comms test reception (does not need to be

both).

• Contacts are highly encouraged to confirm receipt to enable optimal communications during an

actual event.

8National Grid

Event Types

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• Weather-driven

Events (DR Events):

Events called when the

forecasted low temperature

at the designated weather

station (either La Guardia

Airport or Republic Airport)

is at or below the 10-

degree Fahrenheit

threshold.

• Test Events:

Events called primarily to

evaluate communications and

customer operations, identify

and resolve issues, and

collect customer performance

data. They do not meet the

temperature criteria

established in our Program

conditions, however they are

operated, registered and paid

as Program events.

• Emergency Event:

Events called when an

unexpected loss of

distribution/delivery

capacity, extreme

weather, or any

emergency condition

threatening the integrity of

the system occurs. They

are expected to be

extremely rare.

All events impact your Performance Factor! *

*Excluding Emergency Events

9National Grid

What happens during an event?

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1. Cold Weather Notice

2. Activation Notice

2.1 Customer readiness

4. Event Start

5. Event End

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1. When temperatures are forecast to drop,

National Grid will send via email and SMS

a Cold Weather Notice, to make

Customers aware that an Event might be

called and take the necessary precautions.

2. If an Event is decided to be called, National

Grid will send an Activation Notice to all

Customers and Aggregators at least 20 hours

prior to its occurrence, via email and SMS.

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2.1 Upon receiving the Activation Notice,Customers must ensure that the eventnotification gets transmitted to the partiesresponsible for operations at their facility, ina timely manner.

Prepare accordingly: make sure all backupsystems work properly and develop actionplans in the event of process/loadsshutdowns, including having backup fuel athand.

3. On the day of the Event, National Grid willsend an Event Start Notice. Customers shallcurtail their energy consumption as planned.

For DLC Customers only, National Grid willremotely switch from gas to their back-up fuelsystem.

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4. After the Event has finished, National Grid

will send an Event End Notice. Customers

may resume normal operations.

For DLC Customers only, National Grid will

remotely switch back to gas.

13National Grid

Some considerations are in order…

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• All notifications provided to Customers and Aggregators

will be sent to the email addresses and cell phone

numbers (via SMS) provided during the Application

process. Please make sure they are fully updated and

operational. If your contact information needs to be

modified, please contact us as soon as possible.

• Make sure the National Grid email domain is whitelisted,

and our SMS are not blocked.

• Customers may receive several NG communications,

especially the ones that own both firm and non-firm

accounts. Please read all communications carefully.

• In addition to National Grid sending notifications to all its

Customers, Aggregators shall also be responsible for

communicating with their Customers.

14National Grid

1st Planned Test Event

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• Conducted mainly to identify and resolve communicational and operational issues on the Customer side. Customers will be required to enact their fuel switching, curtailment, or load shifting strategies for a 3-hour period, from 6:00 am to 9:00 am on the designated day, just like a regular Event.

• To be performed on the 1st week of December.

• Customer side readiness work will impact their Performance Factor if not completed by the time of the 1st Planned Test Event.

Mid-Winter Test Event (If

Applicable)

• If no actual Events have occurred or are

forecast to occur, National Grid reserves the

right to call an additional Mid-Winter Test

Event. Customers will be required to enact

their fuel switching, curtailment, or load

shifting strategies for a 3-hour period, from

6:00 am to 9:00 am on the designated day.

• May be called at any time during the season,

before mid-February.

IMPORTANT: Performance during all Test

Events will count towards Customer

Performance Factors, and Customers will

have the ability to earn Performance Rate

incentives for any Net Daily Dth reduced

during these events.

15National Grid

Performance Scorecard

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• After each Event, National Grid will send Customers and Aggregators a Scorecard, which

summarizes their Event Performance in terms of Dth curtailed relative to the Event Baseline.

16National Grid

End of Season – Incentive Payments

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• Incentives earned will be paid via check within 90 days of the close of the DR season.

• National Grid will send an Incentive Statement showing a monthly breakdown of Average

Performance Factor, Reservation Payments and Performance Payments.

Gas Demand Response

Downstate New York

2021-22 Payment Statement

Customer Commercial Customer A

Accounts 4

Month Avg. Performance Factor Reservation Payment Energy Payment Total

11/1/2021 100.0% $32,890.00 $0.00 $32,890.00

12/1/2021 93.2% $30,647.50 $6,662.50 $37,310.00

1/1/2022 93.2% $30,647.50 $0.00 $30,647.50

2/1/2022 95.9% $31,533.00 $6,855.00 $38,388.00

3/1/2022 95.9% $31,533.00 $0.00 $31,533.00

$170,768.50Total

Account-level

details also

provided on

Payment

Statement.

17National Grid

Post-Season Survey

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• Customer feedback is important for our Gas Demand Response Program constant

improvement. Along with your Incentive Statement, you will receive a short survey to evaluate

your experience and provide your thoughts about the program.

18National Grid

Contact us!

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For any inquiries, concerns, etc:

- Directly through your National Grid

Representative.

- By email:

gasdr@nationalgrid.com

19National Grid

Q&A