UseYour Power ToChoose

APSC Guide

Message from the Chairman
Dear energy consumers...
electricity
In New York’s competitive energy market, you can choose your supplier of electricity and natural gas instead of buying energy supply from your utility. You can switch to an Energy Service Company (ESCO) or continue getting your energy supply from your utility. This important change should bring efficiencies and innovations that will give you better value for your energy dollar. Customer education is an integral part of the transition to a competitive environment. And, we are pleased to provide you with this informational guide to competition.
William M. Flynn • Chairman, Public Service Commission

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of natural gas Table on Contentsabout: Read to learn
Energy Competition How the system works Understanding your bill Reliability Consumer protections An informed choice How to compare Green Power Environmental Disclosure Renewable Portfolio Standard Consumer Assistance 2 3 4 5 6 7 8 9 10 10 11

1-888-Ask-PSC1 or www.AskPSC.com

EnergyCompetition
What it means to you
NewYork State’s electric and natural gas utilities once operated as regulated monopolies, supplying and delivering such energy to you. Well, things have changed.
The combined services that were offered by your utility company have been split into two parts — supply and delivery, with the supply portion open to competition. You no longer have to buy your electricity or gas only from your local utility. Instead, you can shop among Energy Service Companies (ESCOs) that are competing for your business. This change in the energy market has brought about new products and services, and should give you better value for your energy dollar. Each utility service territory has at least three ESCOs serving electric customers and three ESCOs serving gas. Most territories have many more. Utilities are still responsible for delivering electricity and gas to your home or business using their existing wires and pipes and responding to electric or gas emergencies. The safety and reliability you’ve come to depend on won’t change.

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electricity natural gas
Electric generating companies and gas producers compete against one another to sell electricity and gas in New York.

How It Works

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Your UTILITY company is responsible for the delivery of electricity and gas safely and reliably to your home or business, using existing wires and pipes.

They also fix power lines and gas pipes if there is an outage or a storm, regardless of your energy supplier.

ESCOs arrange with your utility for delivery of electricity and gas to your home or business through the utility’s existing wires and pipes.

ENERGY SERVICE COMPANIES (ESCOs) compete to sell you electricity, gas, or both, as well as other related services such as energy efficiency programs, appliance maintenance and repair, and providing Green Power.

CUSTOMERS HAVE A CHOICE. You can buy your electricity or gas supply from competing ESCOs, or continue to buy from your UTILITY.

1-888-Ask-PSC1 or www.AskPSC.com

Understanding Your Bill
An example of an itemized bill
Whether you choose to buy energy from an ESCO or your existing utility, supply and delivery charges that used to be lumped together will be itemized. You may still pay your utility for delivery, but your energy supply charges will be a separate line item on your bill. If you choose an ESCO, you may receive two bills — one bill from the ESCO for the energy portion, and one from the utility for the delivery portion. There are likely to be other billing options available. You might get one bill from the utility that will include the ESCO’s charges for supply, or one bill from the ESCO that will include the utility’s charges for delivery. Ask your ESCO about your billing options prior to enrollment.

To help you be a more informed consumer, utility bills list specific services and charges.
SAMPLE ENERGY BILL

This is a simplified example of a bill for electricity. (Natural gas bills indicate usage in units of Therms rather than kWhs.) Your actual usage and charges will vary.
This example is based on a monthly usage of 500 kWh of electricity

Terms Basic Service (or Customer Charge):

This charge covers basic customer-related costs for meter reading, billing, equipment and maintenance. Regardless of how much energy is used during the billing period, this charge remains the same.

Basic Service Charge Delivery Charge 500 kWh @ 6.0 cents Taxes (e.g. 4%) Total Electric Delivery Charge Electric Supply 500 kWh @ 8.0 cents Taxes (e.g. 3%) Total Electric Supply Charge Total Electric Charge

$9.00 $30.00 $1.56 $40.56 $40.00 $1.20 $41.20 $81.76

Delivery Charge:

This is the charge for bringing electricity from your chosen supplier to your home or office.*

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Taxes:

This is the portion for which you can shop.

This portion of your bill encompasses both the state Gross Income Tax and a Gross Earnings Tax. Many municipalities charge other taxes. The appropriate amounts for these taxes are applied to all rates and charges and vary by locality.

Electric Supply:

This is the charge for the electricity used during the billing period. This is the amount for which you can shop and may vary depending on which supplier you choose. *System Benefits Charge (SBC):
Your bill includes the SBC which is approximately 70 cents in this example. This amount reflects costs associated with public policy programs, including research and development, low income and energy efficiency programs. This charge does not apply to gas bills.

kWh (KILOWATT-HOUR): The standard unit of electricity use measured by your

meter. kWh is an abbreviation for kilowatt-hour. A 100-watt light bulb used for 10 hours consumes one kWh. Your electricity use determines the total number of kilowatt-hours on your bill. THERM: A unit of heat content equal to 100,000 British Thermal units (BTU). A BTU represents the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit. The number of therms is used to determine the gas charges on your bill.

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Reliability

Remains the same
Switching to an ESCO will not change the reliability of your energy supply.
Electricity and gas will continue to be delivered through utilityowned wires and pipes, and the Public Service Commission will continue to oversee the safety and reliability of the delivery system.

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Your utility is required to continue supplying your electricity and gas without any interruptions if your ESCO cannot provide service for any reason. G Your electricity and gas service can be shut off only by a representative of your utility. However, an ESCO may request that the utility suspend delivery service due to unpaid bills. G For any electric or gas emergency, continue to call your utility even if an ESCO supplies your electricity or gas. G No matter who supplies your electricity or gas, you remain a customer of the utility for your delivery services.
G

Your local utility will continue to deliver and maintain the electric and gas distribution system.

1-888-Ask-PSC1 or www.AskPSC.com

The Power To Protect Yourself
Consumer protections under HEFPA
There are new rules under the Home Energy Fair Practices ACT (HEFPA) that give residential customers additional protection in the competitive energy market. Your consumer protections are guaranteed whether you purchase electricity and/or natural gas from an Energy Service Company (ESCO) or your utility. Some of these protections are:
G You have the right to have budget billing

(levelized monthly payments) and deferred payment agreements allowing you to pay overdue bills in reasonable installments for both electric and natural gas delivery and supply service when you purchase electricity or natural gas from an ESCO. G Security deposits are prohibited except for short-term customers and customers who are delinquent in payments. G Under most circumstances, payments made on a consolidated bill will be pro-rated, i.e., split between the ESCO and utility based on a ratio of amounts owing to each. G For customers that receive a consolidated bill (which contains charges from both the ESCO and utility), ESCOs may request that the utility suspend delivery service due to unpaid bills. G Late payment charges on unpaid balances are limited to no more than 1.5% monthly (18% annually). G You must receive a summary of your rights and obligations at the time service is initiated and at least annually thereafter.

Want to learn more?

For more information on HEFPA changes, including the Commission’s written decision, visit www.dps.state.ny.us and access the “Commission Document” section. Then search for case 03-M-0117.

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There are more options to choose from for your electric and natural gas supply, such as: fixed price, variable price, Green Power, and value-added services. G As always, no matter which supplier you choose, your utility will deliver your electricity or natural gas safely and reliably. G The Public Service Commission will investigate and resolve complaints about ESCO service as well as utility service. Call the PSC Helpline at 1-800-342-3377. G The New York Public Service Commission is making it easier for consumers to shop for electric and natural gas supply by providing a Power to Choose ESCO price comparison information chart. You can request a copy by calling 1-888-Ask-PSC1 or visiting www.AskPSC.com Be assured that your utility will continue to deliver your supply safely and reliably to homes and businesses and will continue to respond to emergencies.
G

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Making an Choice An Informed
Making one Informed Choice
M
aking an informed choice in the new energy market requires you to do some comparison shopping. In order to make that comparison, you need to know these three things:

These diagrams show the two main parts of your electric and gas bills – supply and delivery. You can shop for the supply portion.
(these portions may vary depending on the season, the amount you use, and your utility).

Electric Cost

G Your Electric And Gas Usage

(these portions may vary depending on the season, the amount you use, and your utility).

Gas Cost

You can get this information from your bill or your utility.
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G What Your
Utility Charges

Delivery (Regulated
Electricity
(Open to competition)

Gas

Supply

Delivery
(Regulated utility service)

Electricity

utility service) 

Your utility can
provide information to you about your electricity or gas usage and what it charges you for supply and delivery.

(Open to competition)

Supply

Gas

G What ESCOs
Charge

$ Compare the

price of the electric or gas supply portions of your bill to offers from competing ESCOs.

Electricity supply — which represents about 50% of an electric bill — is open to competition. If, for example, your monthly electric bill is $100, you are paying about $50 for electricity supply. This is the competitive portion, and you can shop among ESCOs, as well as your local utility, for the best price. In this example, you are paying about $50 for electric delivery.

75%

Gas supply — which represents about of a gas bill — is open to competition. If, for example, your monthly gas bill is $100, you are paying about $75 for gas supply. This is the competitive portion, and you can shop among ESCOs, as well as your local utility, for the best price. In this example, you are paying about $25 for gas delivery.

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It Pays to Play...

Three Electric LoadManagement Programs

Get in the Game with Three Electric Load-Management Programs
YOUR UTILITY OR ENERGY SERVICE PROVIDER CAN HELP YOU WIN BIG 2004 SEASON

N

ew York State has three loadmanagement programs that provide opportunities for every electric customer. Each utility or energy service provider in the State can help you get paid for curtailing your electric load during electric grid high-demand periods. These programs offer differing terms and payments, and are open to all types of customers. To see which one, or combination of these programs can benefit you, contact your electric supplier, program provider, or the organizations on page 3. • Emergency Demand Response Program (EDRP) is a short-notice program relying on the ability of many to voluntarily reduce their demand for a short period of time, in exchange for payment. Day-Ahead Demand Response Program (DADRP) is a customerinitiated economic bidding program, where participants offer their load reduction into the wholesale market a day in advance. Installed Capacity Special Case Resources (ICAP SCR) is a reserve capacity program that contracts resources to meet NYISO supply requirements over a specified contract period.

SUMMER 2003 EXPERIENCE A variety of customers, large and small, from many sectors, took part in these valuable programs last summer. Although most pledged 1,000 kW or less, several reduced their electricity consumption by over 40,000 kW on just 2-hours notice. Steel foundries, cement factories, and paper mills found these programs worthwhile. But even more diverse sectors, like cheese producers, wineries, scrap yards, and apartment buildings reduced their electricity consumption during certain periods, and were paid for doing so. More than $7.2 million was paid to over 1400 commercial, industrial, and multifamily residential customers for reducing their peak electricity consumption by 700 MW. These commitments helped to avoid jeopardizing the State’s electric grid stability. Participants understood just how important their participation was: “The program helps to keep prices reasonable during high electric demand,” said one satisfied participant. Another noted: “We are aware of the critical situation that could develop...without programs such as these.” They saw the inherent value in developing good energy management habits. NEW FOR 2004 For 2004, you too can get in the game. Join the customer load management team that plays a role in achieving New York State’s energy goals.

During summer 2003, more than $7.2 million was paid to over 1400 commercial, industrial and multi-family residential customers for reducing their peak electricity consumption by 700 MW.

These load management programs pay participants, while providing all New York State electric customers with crucial grid stability during times of high electricity demand and helping to prevent extreme market prices.

George E. Pataki, Governor
NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY - DEMAND RESPONSE PROGRAM PRIMER PAGE 1

EMERGENCY DEMAND RESPONSE PROGRAM
Emergency Demand Response Program (EDRP) pays retail electricity customers to reduce load during specific times when electric service in New York State could be jeopardized. During these “declared events,” participants are expected, though not obligated, to either reduce electricity consumption and/or transfer load to an onsite generator for a minimum of four hours. During these emergency program events, performance is based on how much metered load is reduced. NOTIFICATION: Usually, a program provider will give notice the day prior to an expected emergency program event. When the program is activated, participants receive a confirmation notice indicating that participation is needed; providers will generally be able to provide this notice two hours prior to when an event starts. PERFORMANCE: Metered load, during the event hours, is compared with a customer baseline (CBL, a statistical estimate of how much electricity would have been used during the same time period.) The difference between metered load and CBL is the basis for payment. Since this program is strictly voluntary, there is no obligation to reduce load when an emergency event is declared; similarly, there is no penalty for non-performance. PAYMENT: Performance during emergency program events is measured on an hourly basis and payment is computed on the higher of either $500/MWH, or the wholesale electricity price in the customer’s area, during the time of the event. Exact payment arrangements differ by program provider. NEW FOR 2004 EDRP has been extended through October 31, 2005. EDRP event notification has been separated from ICAP-SCR events. If you sign up for EDRP, you cannot participate as an ICAP Special Case Resource. EDRP participants are notified after ICAP-SCR resources
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Summer 2003 Payments for 1MW EDRP Load Reduction
$11,000
5¢/kWh

D $11,000
5¢/kWh

$11,000
5¢/kWh

E B C $11,000
5¢/kWh

F

$11,000
5¢/kWh

$11,000
5¢/kWh

A

G H I J

$11,000
5¢/kWh

$11,000
5¢/kWh

Total Payment
Avg. Payment

$11,000
5¢/kWh

Values shown are estimates of program payments

$11,000
5¢/kWh

K

$11,000
5¢/kWh

have been called, if additional load reduction is necessary. SUMMER 2003 EXPERIENCE More than $7.2 million was paid to emergency and special-case resource program participants for two summer events, on August 15 and August 16, 2003. Enrollment in EDRP totaled over 1300 participants and 67% of 2002 participants re-enrolled for summer 2003. CUSTOMER QUESTIONS FOR PROVIDERS Is there a minimum load reduction requirement? What CBL options are offered? How and when will a customer be notified of an opportunity to curtail? If use is curtailed, when does payment occur? What services are available to encourage participation? Is NYSERDA financial assistance available to help in purchasing load curtailment equipment? What are the requirements for on-site generators?

NOTICE This informational brochure was prepared by Neenan Associates for NYSERDA as an introduction to NYISO’s Demand Response Programs. Neither NYSERDA, its members, nor any person acting on their behalf: (a) makes any warranty, express or implied, with respect to the use of any information, apparatus, method or process contained, described, or referred to herein or that such use may not infringe privately owned rights; or (b) assumes any liabilities with respect to the use of, or for damages resulting from the use of, any information, apparatus, method or process contained, described or referred to herein. The details in this NYSERDA publication are accurate as of the time of printing, but are subject to change. For final program rules and procedures, contact the Market Relations Department of NYISO: (518) 356-6060 or check the NYISO website: www.nyiso.com/ services/documents/manuals. As with any market, a certain level of risk is associated with a transaction. To effectively assess risk of a transaction or bid, a participant should develop a familiarity and knowledge of the market and its principles. Analysis supporting the calculation of potential benefits referenced herein is available at www.bneenan.com.

NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY - DEMAND RESPONSE PROGRAM PRIMER

DAY-AHEAD DEMAND RESPONSE PROGRAM
Day-Ahead Demand Response Program (DADRP), offers retail electricity customers a chance to bid load reduction capability in New York State’s wholesale electricity market. To participate, companies bid their load reduction capability, on a day-ahead basis, into the wholesale electricity market, where these load reduction bids compete with generators’ offers to meet the State’s electricity demands. If the load reduction bid is a less expensive alternative than a generator’s offer, it is accepted and the bidder is scheduled to reduce load during the hours specified the following day. The bid amount, term, frequency of submitted bids and use of generation may be subject to some restrictions, based on each program provider’s rules and regulations. NOTIFICATION: When a curtailment bid is accepted, the program provider notifies the customer of the scheduled load curtailment. PERFORMANCE: Participant metered load during the event hours is compared with a customer baseline (CBL, a statistical estimate of the amount of electricity that would have been used during the same time period.) The difference between the two is determined to be the level of load curtailment and is the basis of payment. Since a load reduction bid was accepted in the day-ahead wholesale electricity market, participants are obligated to meet the posted load-reduction schedule. Any shortfall will be charged the higher of either the day-ahead, or spot-market price. PAYMENT: Customer performance during scheduled load reductions is calculated on an hourly basis, at the wholesale price for electricity in the day-ahead market, during those hours scheduled. Participants may specify a minimum payment, called the curtailment initiation cost, as a condition for being scheduled for one or more hours in a specified block of consecutive hours. Generally, in such cases, the full block is scheduled and the participant receives the higher of the curtailment initiation cost or the hourly locational-based marginal prices times the scheduled load.

Summer 2003 Potential Payments for 1MW DADRP Load Reduction Bid at $100/MWh
$2,210
11¢/kWh

D $2,597
11¢/kWh

$3,128
10¢/kWh

E B C $2,979
11¢/kWh

F

$5,292
10¢/kWh

$1,843
11¢/kWh

A

G H I J

$5,860
10¢/kWh

$5,926
9¢/kWh

Total Payment
Avg. Payment

$2,292
10¢/kWh

Values shown are estimates of program payments

$16,760
10¢/kWh

K

$15,559
10¢/kWh

NEW FOR 2004 DADRP service is available from program providers other than your electricity commodity provider. SUMMER 2003 EXPERIENCE More than $100,000 in payments was distributed among the 27 day-ahead program participants. 1,752 MWH of load reduction bids were accepted over a wide range of hours and days. CUSTOMER QUESTIONS FOR PROVIDERS What kind of bidding options are offered? What are the frequency and duration requirements for bids? How long are the bids good for? If a participant fails to curtail, what is the penalty and when are they notified of the amount?
For more information:

“This year, we plan to get involved in DADRP. The investment in time and effort we made to participate in last summer’s EDRP events taught us what we need to do to reduce load.”

New York State Energy Research and Development Authority (NYSERDA) toll-free at (866) NYSERDA or (866) 697-3732 or visit NYSERDA’s website at www.nyserda.org or e-mail info@nyserda.org New York State Public Service Commission toll-free at (877) 661-9223 or on the web: www.AskPSC.com or www.dps.state.ny.us/eschoice.htm New York State Department of Environmental Conservation (DEC) at (518) 402-9167 or visit the Regional Environmental Permitting page on the web at www.dec.state.ny.us/website/dcs/regions/state.htm New York Independent System Operator at (518) 356-6060 or via e-mail: market_relations@nysio.com

NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY - DEMAND RESPONSE PROGRAM PRIMER

PAGE 3

INSTALLED CAPACITY-SPECIAL CASE RESOURCES
Installed Capacity-Special Case Resources program pays retail electricity customers to provide their load reduction capability for a specified contract period. Program participants receive payments for an agreement to curtail usage during times when the electric grid could be jeopardized. Based upon system condition forecasts, participants are notified to curtail this subscribed “capacity,” either through the use of on-site generation and/ or reducing electricity consumption to a firm power level. Any under-performance results in an assessment of a penalty. To register for the program, participants commit to a load reduction of a minumum of 100 kW with 100 kW increments, subject to a one-hour verification either through an actual event or test to be called by NYISO. NOTIFICATION: Program providers offer 21-hour advance notice of any anticipated need for curtailment. A confirmation notice is provided a minimum of two hours before the actual event begins. PERFORMANCE: The participant’s metered load during the event hours is compared with the subscribed firm-power level, or the metered generator output is compared with its subscribed output level. Any under-performance of either load curtailment efforts, or generator output, will result in a reduction, or “derate,” of any future capacity claims. Such a “derate” will require the customer to fulfill any contractual obligations entered into for capacity and will result in a proportional reduction of any future long-term contractual payments. PAYMENT: When initially registering for ICAP SCR, program providers calculate an unforced capacity obligation (UCAP) that is based upon a participant’s claimed load reduction capability, line losses, and historical program performance, if any exists. The UCAP is then sold into wholesale capacity markets where payment rates vary according to a participant’s location in the State and the contract period.

Summer 2003 Payments for 1 MW ICAP-SCR Load Reduction
$18,964 F $18,964

D $18,964 E $18,964 A B C

$18,964

$18,964 G H I $69,880 J K $50,640 $18,964 $18,964

$18,964

Values shown are estimates of program payments

SUMMER 2003 NEW FOR 2004 EXPERIENCE ICAP-SCR calls have been separated Payments ranged from EDRP events and ICAP-SCR from $1.25 per resources are called first. kWh Statewide You may participate in either EDRP or to $11.25 per ICAP-SCR, but not both. kWh in New If a qualified ICAP-SCR resource has York City not been contracted in a given month, 850 MW that resource will be eligible for energy registered payments during EDRP events. ICAP-SCR If less than all ICAP-SCR resources resources are needed in a selected zone, the provided number required to serve the need will approximately be called in ascending order based on 50% of the load the submitted minimum price reduction during guarantee of participants. summer ICAP-SCR resources are eligible for an curtailment energy payment at the minimum price events guarantee, up to $500/MWh. The minimum price guarantee, or strike price, is specified by the ICAP-SCR resource and may be revised monthly. Energy payments are computed using the same performance calculations as EDRP. CUSTOMER QUESTIONS FOR PROVIDERS Will the provider purchase the offered load curtailment capability? If not, what type of arrangements can be made for purchase? How is a “derate” in load curtailment capability handled? If “derated,” what penalties apply and when do they take effect?

PAGE 4

NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY - DEMAND RESPONSE PROGRAM PRIMER

New York ICAP/ SCR Program
What is the Installed Capacity Special Case Resources (ICAP/ SCR) Program?
The ICAP/SCR program is sponsored by the New York Independent System Operator (NYISO) to provide the opportunity for demand response resources to help meet state supply requirements for a specified contract period. Program participants receive recurring payments for agreeing to reduce electricity consumption during system emergencies, regardless of whether they are ever called to respond. If the load is called, participants receive additional guaranteed payments for the energy conserved during the event and benefit from lower energy costs.

FAQ

What happens if an event is called?
The day before an event, you will receive notice that your capacity has been “reserved,” and a firm notice will follow at least two hours before the actual event. EnerNOC’s 24/7/365 Network Operations Center remains in close contact with your facility prior to, during, and immediately after the event and is available to answer any questions that you may have.

What is the New York Independent System Operator (NYISO)?
NYISO is a not-for-profit corporation that administers the state’s wholesale energy markets and operates the state’s high voltage transmission system. NYISO is responsible for ensuring that the electric grid is stable and that supply is able to meet demand at all times throughout New York State.

How often will an event be called? How long do they last?
There is no limit to how often events may be called or how long an event may last, but performance is mandatory only for four hours per event. From 2001 through 2003, demand response was activated for approximately 21 hours each year. No events were called in 2004, and one four-hour event was called in 2005. In 2006, NYISO called five events. If no events are called during the summer or winter capability period, each end-user must perform a one-hour test to demonstrate the capability to reduce the committed electrical capacity.

How do I participate?
EnerNOC manages program participation from end to end. EnerNOC works with your organization to identify available loads, enable the use of your backup generator (if any), and determine the appropriate curtailment strategy that meets your specific business needs. Next, EnerNOC measures and verifies your curtailable load and ensures that operational conditions are satisfactory during curtailment events. Then EnerNOC enrolls the capacity in the ICAP/SCR program. The amount of enrolled capacity can be adjusted on a monthly basis as loads change and as participants gain experience in the program.

What types of loads are curtailable?
Any non-essential load is curtailable. Specific examples include lighting, HVAC, escalators/elevators, pumps, and some types of manufacturing equipment (e.g. rectifiers, shredders). Backup generator use is also encouraged, and EnerNOC handles all generator permitting and management.

Is there any cost to participate?
Program participation costs can vary depending on the implementation strategy. However, most often there is NO cost to participate. When a customer wants a customized solution to meet specific goals, there is typically an investment required that averages a simple payback time of less than six months. Additionally, if an investment is required, EnerNOC can finance this investment or earn back the investment from the first few months of program payments. If funding is available through NYSERDA or another source, EnerNOC works to secure and maximize project reimbursements on behalf of our customers.
OVER

How is curtailment managed?
The curtailment process will depend on the energy management infrastructure in your facilities. EnerNOC can integrate with existing energy management systems or install our own technology to curtail load automatically and remotely from our Network Operations Center. Alternatively, EnerNOC can notify specified personnel via email, fax, pager, or telephone to support manual curtailment.

What is the New York State Energy Research and Development Authority (NYSERDA)?
NYSERDA is a public benefit corporation that funds research into energy supply and efficiency throughout the state. NYSERDA’s New York Energy $martSM program, funded by the Systems Benefit Charge (SBC) on the electricity transmitted and distributed by New York’s investor-owned utilities, assists electric consumers with education and financial incentives as the regulated electricity market moves to more open competition.

Are there consequences for non-performance?
No. EnerNOC manages all risks associated with enrollment and nominated curtailment levels. No penalties are imposed on you. EnerNOC assumes all risk of your non-performance and bears the cost if penalties are incurred.

About EnerNOC
Founded in 2001, EnerNOC, Inc. is a leading developer and provider of clean and intelligent energy solutions to commercial, institutional, and industrial markets. EnerNOC serves multiple industries: food processing, light industrial, commercial real estate, telecommunications, hospitality, government, education, healthcare, and more. Our numerous blue-chip customers include Pathmark, Morgan Stanley, IBM, Cargill, New York Mercantile Exchange, and VSNL Communications. EnerNOC’s management team combines over 150 years of entrepreneurial and corporate experience with expertise in demand response, distributed generation, energy management, engineering, embedded systems, and information technology. EnerNOC is a NYISO Responsible Interface Party (RIP) and certified Curtailment Service Provider (CSP).

What are the economic benefits of participation?
The ICAP/SCR program provides cash flow every month, regardless of whether your load is ever required. Capacity payments depend on the electrical demand your business can reduce and how EnerNOC will work with you to execute the response (automatic/remote versus manual/ local). You will receive additional energy payments during actual events. Both payment streams will be defined prior to enrollment, and you will receive a quarterly check for your participation.

What are the other benefits of participating?
• Increased Grid Reliability Participating in the ICAP/SCR program will help ensure that your business keeps operating and the lights stay on in your community. • Enhanced Building System Reliability and Business Continuity Access to EnerNOC expertise and information such as advanced notice of potential blackouts will help your business establish better energy contingency plans, protect mission critical systems from power quality and availability issues, and provide a greater level of power reliability for your technology and infrastructure systems. • Enhanced Community Goodwill Power shortages are highly visible events that command the attention of New York residents and the New York State government. Businesses supporting grid reliability will enhance their reputations as good corporate citizens. • Build Expertise in Real-Time Energy Markets New technologies, market deregulation, and environmental concerns are driving a transition to real-time energy markets in which electricity end-users react instantaneously to information on price, power reliability, and the environment. The ICAP/SCR program provides your organization with a cash-flow positive, no-risk program to build expertise in operations and energy management in the dynamic energy markets that are now evolving. • Comprehensive Energy Management Information EnerNOC provides a web-based portal with easy-to-use information on energy consumption by site and in aggregate. Through the portal, EnerNOC collaborates with our customers to identify additional savings opportunities and increase equipment reliability. • Environmental Benefits Reducing demand reduces air pollution, and EPA studies show that demand response programs can reduce air emissions, even when diesel-fueled backup generators are included in the system capacity.

For more information please contact: EnerNOC, Inc. 24 W. 40th Street 16th Floor New York, NY 10018 office: fax: email: (212) 624.0000 (212) 624.0001 info@enernoc.com

www.enernoc.com

© 2007 EnerNOC, Inc.

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