GREENING EASTHAMPTON’S LOCAL ECONOMY

MIKE GORDON

CEO, JOULE ASSETS

JUNE 15, 2016

COMMUNITY CHOICE AGGREGATION (CCA)

Relocates authority to designate default energy supplier(s) from Albany to your local town or village

WHY CCA?“Swiss army knife” energy policy enables communities to:

• Fix energy rates • Procure existing large-scale renewable energy more competitively• Dictate the (contract) terms of energy purchasing• Achieve peak demand reductions• Finance local development (i.e. offshore wind, community solar) when

fossil fuel prices go up through “renewable bank”• Acquire consumption data for energy planning

CCA BY THE NUMBERS• Over 5 million electric customers nationwide enrolled in a CCA• New York becomes 6th state with active CCA programs• 107,000 currently served by Westchester Power, state’s first CCA• Estimated reduction of 300,000 tons CO2 (NYSERDA)

• Statewide rules established by PSC April 21, 2016

Fixed rate supply contracts:• ConEd : 32 months (ConEd Solutions)• NYSEG: 36 months (Constellation)

5.5-10.5% savings vs. 12-mo. avg. utility supply rate

Free opt-out at any time with no penalty

14 of 20 communities selected 100% Renewable (Green-e certified RECs) default

Contract provides for future renewable development and efficiency programs

REDUCING THE NEED FOR POWER PLANTSYOUR COMMUNITY, YOUR CHOICE

• 25% of our power costs are determined by what we consume in one hour of the year

• If we reduce our consumption in that one peak hour, our electricity supplier will have millions of dollars of extra “band-width” supply to sell next year

• Our contract ensures that our consumers get those millions of dollars when our supplier sells that band-width

To join, text “South Fork” to:

(646) 267 - 5370

The Peak Power Hour program tells you the night before and confirms the morning of: “Today at 4PM might be the day, let’s reduce power at home and join our neighbors for

a party…”

REDUCING THE NEED FOR POWER PLANTSWHEN WILL THAT HOUR BE AND WHAT DO WE DO?

LONG ISLAND ENERGY LANDSCAPE

TODAY• Largely unregulated monopoly• Tariffs and RFPs• Long-term contracts w/centralized

power plants• You can earn by intelligently

managing what you consume

TOMORROW (18 months?)• Competitive markets: you choose

your supplier• The utility earns more when you are

happier and more engaged• You earn and save more when you

intelligently manage what you use

WHAT CAN LONG ISLAND COMMUNITIES DO NOW? Take charge• Pass local law in advance of deregulated supply markets• Hire a demand response representative and pay residents who

agree to shed when called • Request aggregated and real time consumption data from PSEG,

to get paid, now• Your aggregated customer base can then back finance of offshore

wind, the moment the market opens up• Natural gas procurement?

SOUTH FORK’S PEAK DEMAND PROBLEM

2014 electricity demand (hourly)JAN DEC

Nearly 25% of your power plants exist to serve you for only 10 hours each year.

Peak Power Hour informs you when those hours are. You prove that you are the resource that can replace those power plants and the text service will tell you

when you are eligible to get paid for what you turn off in those ten hours

Text “South Fork” to (646) 267 - 5370

BUILDING RENEWABLE GENERATION AS A REGIONAL ECONOMY

Renewable Bank— 1. Finance a new, renewable power plant, 2. direct your supplier to buy from the plant you built and

3. to sell the excess power they previously purchased; 100% of profits from the sale support the new renewable plant you built

Text “South Fork” to (646) 267 - 5370

Peak Power Hour empowers the South Fork to: • take charge of your peak demand challenge, • Inform yourself on when the power market

becomes competitive, and • share in value of avoided costs to PSEG/LIPA

Thank you!

mgordon@jouleassets.com

EXTRA SLIDES

JOULE COMMUNITY ENERGY MODELRecurring revenue for locally engaged teams Unifying consumer and environmental groups• “Renewable Bank” – supplier sells excess power when FF markets move up• “energy reduction products”- pay residents for managing consumption at peak

through control of smart thermostats

Educating consumers• Openly address risks• How can consumers gain and add value to energy markets?

OPT OUT RATES BY COMMUNITYOVERALL RATE: 6.3% (NAT’L AVG: 10%)

Somers

North Salem

Lewisboro

Bedford

16.7%

11.9%

10.6%

13.4%

NYSEG Territory

White PlainsTarrytownRye Brook

PleasantvillePelham

Ossining VillageMt Kisco

Mamaroneck VillageLarchmont

IrvingtonHastings

Ossining TownNew Castle

Mamaroneck TownGreenburgh

BedfordNew Rochelle

5.5%5.6%

4.6%4.0%

3.0%5.3%

4.6%4.3%

3.4%5.1%

4.4%4.2%

4.1%5.7%

4.2%4.2%

5.6%

ConEd Territory

Bedford 5991

Greenburgh 12901

Hastings 2547

Irvington 1986Larchmont 1519 Lewis

boro 4313

Mamaroneck 4124

Mamaroneck 6417

Mount Kisco 3275

New Rochelle 20943

Newcastle 5014

North Salem 1976

Ossining 1689

Ossining 6608

Pelham 582

Pleas-antville

2405

Rye Brook 2834

Somers 7475

Tarrytown 4018

White Plains 17066

Utility Supply Customers by Community