BPA Demand Response Program Agenda Introductions Demand Response - PowerPoint PPT Presentation

BPA Demand Response Program

Agenda • Introductions • Demand Response • Program details • Program update • Program benefits • EnerNOC experience 2 Proprietary & Confidential

Demand Response Proprietary & Confidential

Demand Response for a Stronger, Cleaner, and More Cost Effective Grid Meeting demand in the peak hours each year requires excess supply. Facilities that can occasionally lower demand reduce the need for supply side resources, and are paid for the service. 100% 90% 75% 50% 25% Winter Spring Summer Fall 4

Typical dispatch BPA anticipates need for demand- side resources and dispatches EnerNOC Customer Real-Time Load Profile Dispatch signal relayed to facilities and personnel also notified by phone, email, and/or SMS Automated customers have the opportunity to opt out during the notification period, if needed Manual and automated load control strategies are initiated, either by customer or by NOC. Load reduction is delivered to the Notify Respond Restore grid at precisely the time it is needed Customer receives payment for demand reduction 5 Proprietary & Confidential

Real-Time Visibility with Energy Monitoring Software 6

Customer view of event performance Dispatch Window : The white area between the gray areas represents the time period of the dispatch. Baseline : Estimate of site's anticipated demand that is calculated according to program rules. Current Demand : Represents current demand base on 5-minute interval data. Reduction Target Area : The green area represents the target reduction, or where a provider’s current demand should be during the dispatch. 7 Proprietary & Confidential

Customer enablement workflow EnerNOC’s implementation process is designed to be fast, cost-effective and scalable with an emphasis on customer satisfaction and support. Energy Qualification Acceptance Ready to Reduction Installation Visit Test Respond Plan 12-20 weeks • Customer • Schedule and install • Contractor installs • Verify contact info • Enablement consultation to Current Transducers EnerNOC Site for 3+ site contacts complete: customer assess energy or Serving Utility Server (ESS) is now on call and • Run “Demand “Ready to Respond” reduction ability installs pulse outputs • Control systems Reduction T est” and installation • Design automated integration and (simulated requirements energy reduction programming dispatch) sequence EnerNOC Site Server (ESS) 8 Proprietary & Confidential

Program Details Proprietary & Confidential

Program parameters Winter Peak Management December 1 – April 30 Season • All C&I customers in BPA balancing area (57 utilities) Eligible • No behind-the-meter fossil fuel generation Customers Target Capacity 13-25MW 7am – 10am; 5pm – 8pm PT Program Hours Response Time 60 minute advance notification Event Duration / 1-3 hour events; 2 events per day; 6 hours between events; 60 hours per season Limitations Customer Capacity payment: $5,000/MW month winter + Event payment: $125 MW/hr Payments ($225 MW/hr above 20 hours) Payments made directly to customer Metering 1 Minute Interval Metering Provided to all participants 10 Proprietary & Confidential

How Payments Work Customers in the BPA Demand Response Program earn both energy and capacity payments Explaining Payments to Our Customers: • Earnings Potential: $36.5k/MW each winter season and $73k for both winter seasons • Depending on how many events are called and how consistently you deliver • Capacity payments are based on average performance in each event hour over a month • Payment rates are $5,000/MW-month in the winter (Dec – Apr) • Customers must deliver at least 70% of their nomination, otherwise performance for that hour will be 0 • Customers may receive credit for up to 120% of performance for a given hour • Energy payments are based on performance in each event hour • Payments are capped at 120% of a customer’s nomination • Payments are earned even if a customer fails to reach 70% of his/her nomination • Payment rates are $125/MW-hr for the first 20 hours of participation and $225/MW-hr for subsequent hours in a period 11 Proprietary & Confidential

Program Update Proprietary & Confidential

Demand Response – Winter Dispatches Portfolio Size : 21MW (25MW cap) Number of DR events in 2016 winter season : 21 events Total DR event dispatched hours : 55 hours Average event duration : 2.5 hours 13 Proprietary & Confidential

Program Benefits Proprietary & Confidential

Benefits of Demand Response Demand Response Strengthen the Earn Payments Increase Visibility Increase Grid Sustainability into Energy Use 15

EnerNOC Overview and Experience Proprietary & Confidential

About EnerNOC Strong Financial Profile Full Value and Technology Proven Customer Track Offering Record • 2014 Revenues: $472M • • Thousands of enterprise Energy intelligence software = ~$5B • 2014 Adjusted EBITDA: $76M market in U.S. alone customers across nearly 80,000 • $143M in cash/cash equivalents on sites • Energy intelligence application balance sheet • Over $1B in customer savings platform addresses demand and • Publicly traded on the NASDAQ) supply-side, connects energy usage delivered to date (ENOC) to currency • Market leader in demand • Over 1,300 employees and growing • Combines technology, managed response fast; multiple “top places to work” services, and market access awards • ~$200M invested to date in technology To learn more, visit http://www.enernoc.com Updated 8.2015 17

Global demand response footprint UK, Ireland, Germany North America Australia and New Zealand Japan EnerNOC Demand Response EnerNOC Office 18 Proprietary & Confidential

Regional experience in the Western US EnerNOC works with C&I customers in utility DR and EE programs across the West, including significant experience with demand response in the Northwest Demand Response • Bonneville Power – C&I DR pilots (including City of Forest Grove, Consumers Power, Utility, EWEB, Richland Energy Services) • Idaho Power – 300 MW irrigation DR; 35 MW C&I DR • PacifiCorp – 185 MW irrigation DR • PG&E – 120 MW C&I DR • Portland General Electric – 25 MW C&I DR • Public Service Company of New Mexico – 30 MW C&I DR • Puget Sound Energy – C&I DR pilot • San Diego Gas & Electric – 25 MW C&I DR • Southern California Edison – 125 MW C&I DR • Salt River Project – 50 MW C&I DR • Tucson Electric Power – 40 MW C&I DR • Xcel Energy (Colorado) – 44 MW C&I DR Energy Efficiency • Energy Trust – Technical Service Provider on EE Projects • NEEA – Montana SEM Cohorts • PacifiCorp – EE Engineering Services Utility Program • PG&E – Industrial EE Programs EnerNOC Office • Southern California Edison – Industrial EE Programs 19 Proprietary & Confidential

Eric Bakken Business Development Manager eric.bakken@enernoc.com 503-314-8995 Proprietary & Confidential