Time-of-Day Energy Watch Pilot Programs n n

Time-of-Day / Energy Watch Pilot Programs n n Program Design Preliminary Program Results Lessons Learned A/C Cool Credit 1

Time-of-Day/Energy Watch Pilot Programs n n Focus Groups with Customers for program design Began marketing of programs to 5, 000 Emmett customers n n n Advertising Direct mail Community Presentations Employee Education Response rate of 80 Energy Watch customers and 97 Time-of. Day Customers n n EW – 80 on June 1 / 76 on August 31 TOD- 97 on June 1 / 92 on August 31 2

Time-of-Day (TOD) Available: June-August 2005 n On-Peak n n n Mid-Peak n n n Monday-Friday 7: 00 a. m. – 1: 00 p. m. 6. 1717¢ / k. Wh (11% differential from On-Peak) Off-Peak n n Monday-Friday 1: 00 – 9: 00 p. m. 6. 8686¢ / k. Wh (13% differential from Rate 1) Monday-Friday 9: 00 p. m. – 7: 00 a. m. Saturday, Sunday, Holidays – All Hours 5. 3004¢ / k. Wh (30% differential from On-Peak) Rate 1 - Residential n n 0 -300 k. Wh - 5. 428¢/ k. Wh > 300 k. Wh – 6. 0936¢/ k. Wh 3

Energy Watch (EW) Available: June-August 2005 n n n 10 EW days June 15 – August 15 Notify Customers day-ahead by phone (Mosaix/operators) and Email (when available) EW hours – 5: 00 p. m. to 9: 00 p. m. Weekdays Rate: 20¢ / k. Wh during EW hours Rate: 5. 428 ¢/k. Wh all other hours June 1–August 31 (Rate 1 – First Block Rate) 4

Customer Satisfaction n Customer Survey n n Preliminary results: Participants overall were satisfied with programs n 60% would participate again n 50% would recommend to others Bill Impact n From Survey n 44% believed bills decreased n 38% believed bills unchanged n 18% believed bills increased 5

Time-of-Day Preliminary Data Analysis n TOD n Load Impact n n Load shift (decrease) was not statistically significant Some load decrease during On-Peak hours Some load increase during Off-Peak hours Average Summer Bill Impact n n n Participant bills decreased $4. 88 compared to Rate 1 Non-Participant bills decreased $4. 53 compared to Rate 1 Participant bills decreased $10. 57 (5 %) compared to Non-participants 6

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Energy Watch Preliminary Data Analysis n Energy Watch n Load Impact n Substantial demand reduction during Energy Watch hours n n 1. 58 k. W maximum average demand reduction 1. 33 k. W average demand reduction Demand reduction increased with temperature Average Summer Bill Impact n n n Participant bills decreased $10. 46 compared to Rate 1 Non-Participant bills decreased $4. 04 compared to Rate 1 Participant bills decreased $22. 26 (10 %) compared to Non-participants 9

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Lessons Learned n Review program design n Labor Intensive/Not Scalable n n n Adjust pricing to avoid Non-Participant benefits Adjust pricing to encourage more load shifting Call Center / Meter Support Corporate Communications Corporate Publishing Customer Satisfaction Automated System(s) for Customer Notification 12

A/C Cool Credit Air Conditioner Cycling Program n What works? n Multiple Channels of Communication with the Customer/Participant n n Marketing n n Participants have two types of communication needs--getting programmatic questions answered (non-time sensitive), and having problems solved under stress (time sensitive issues like equipment failure). Need redundant communication methods for both situations, including phone, email, web, collateral materials, stickers, etc. In marketing, lots of information (brochure) outperformed postcards. The Company received an 8% response rate vs. 2% response rate. Documentation and Verification n Documenting and verifying information flow across all partners. Setting up information flows isn't enough, these must be tested and verified periodically to ensure processes are running smoothly. 13

2004 Load Curve, A/C Cool Credit • This chart provides the average load shape across all participants for the 50% and 67% cycling days in July to the average non-cycling days. The graph illustrates the observed drop in consumption during the control period and the associated increase in consumption following the control period or the “snapback” effect. 14