Distributed/Onsite Generation Options Identification and Consultation Services

1. Distributed/Onsite GenerationOptions Identification and Consultation Services Tom Rooney, Scott AlbertGDS Associates, Inc.1181 Elm Street, Suite 205    Manchester, New Hampshire 03101(603) 656-0336www.gdsassociates.com

2. Distributed Generation – An Overview Distributed Generation(DG) is not a new concept but is receiving increased attention as the electric power industry begins to consider fundamental changes to its business practices to meet the new era of competition. What is now considered distributed generation has taken on many names in the past, including back-up or stand-by generation, cogeneration, combined heat and power, renewable generation, and remote power.

3. Distributed Generation – An Overview – cont’d A broader definition of Distributed Generation is referred to as Distributed Energy Resources(DER) and encompasses not only generation but also tools for reducing energy usage on the customer’s side of the meter such as storage technologies, end-use technologies and Demand Side Management (DSM) concepts.

4. Distributed Generation – An Overview – cont’d Distributed Energy Resources, unlike traditional large-scale central generation sources, are small, modular, and are typically located on-site or near large energy end users. There are a number of technologies, both renewable and fossil fueled, that make up the current, and near future, portfolio of distributed generation plants.

5. What Can GDS Associates, Inc. Do For You? • Provide Identification and Assessment of Distributed Generation Technologies • Characterization of Clientele's CustomerSpectrum • Spreadsheet Modeling to Visualize theSystematic Analysis of Data • Calculation of Market Potential for Clients

6. Identification and Assessment • Provide Client With Distributed Generation Possibilities to Satisfy Their Business Needs • Researching to Establish a Comprehensive Listof Potential Customers • Researching and Providing Up to DateTechnological and Advancement Information for Application of DG Technology

7. Characterization • Create Distributed Generation Technology Profiles for Review • Provide Detailed Factual Information toDistinguish Customer Types • Characterization of Costs Associated WithEach Customer Type

8. Potential Geothermal Heat Pump Installation Candidates This table identifies the customer categories and building types that were considered for potential geothermal heat pump installation candidates. For modeling purposes, each building type was broken into sub-groups and facility square footages were identified.

9. Mock Technology Availability and Target Customer Sectors Chart This table identifies the different technologies available and matches them to their targeted customer sectors.

10. Modeling • Evaluate Each Possibility Through Feasibility, Cost Comparisons, Reliability, and Efficiency Studies • Prioritized Ranking of Separate Scenarios toAssess All Unique Combinations ofCustomer/Technology Type Applications • Generate Customer/Technology-SpecificSimple Payback Charts

11. Mock Simple-Payback Chart *Using Geothermal Heat Pump Technology

12. Calculation of Market Potential • Market Potential Derived From Calculated Payback Period and Estimated Market Participation Rates • Financial Analysis, Forecasting, andMarketing Costs Calculations

13. Mock Geothermal Heat Pump Technology Market Potential Chart

14. Outstanding DG-Related Issues for Utilities • Design of Innovative Electric Utility Pricing and Rate Structures • Interconnection Regulations, Including a Full Assessment of Associated Costs and Risks • Opportunities for Utilities as DG Owners/Operators • Rate Base Erosion Impacts and Compensation for Stranded Costs Associated with DG Installation

15. Outstanding DG-Related Issues for Customers • Accurate/Unbiased Equipment Selection and Determination of the Economic Viability of the DG Investment • Is the Technology Capable of Providing the Required Service? • Risk Associated With Substantial Initial Investment • Lack of Standardized Interconnection Requirements • Equipment Certification Requirements • Status of Net Metering – Not Necessarily Paying Market Price • Siting and Permitting of Equipment • Who Should Own and Operate the DG Plant (Not Part of Customer’s Core Business)?

16. Methodology of Recent Geothermal Heat Pump Project • Secondary Research • Customer Group and Technology Screening/Prioritization • Market Potential Assessment

17. Secondary Research • Research Was Done to Identify Various Applicable Geothermal Heat Pump (GHP) Technologies and Key Performance/Cost Input Information for Use in the Screening/Prioritization Task.

18. Customer Group and Technology Screening/Prioritization • Determining Which Geothermal Heat Pump Technologies Had Potential for Application Within Various Customer Groups. • Using Spreadsheet Models to Calculate a Simple Payback for Each Technology Selected for Installation at Specific Customer Type Locations. • Ranking, Prioritizing, and Summarizing Each Technology Modeled to Show Those Most Likely to be Viable Within Specific Customer Categories.

19. Market Potential Assessment • The Estimation of Market Potential for Geothermal Heat Pumps Individually Within Each Service Territory

20. Who are We? “GDS Associates, Inc. is dedicated to providing comprehensive, expert utility services, enhanced by state-of-the-art resources. In the evolving utility industry, GDS provides a solid foundation in its commitment to clients and employees, its dedication to value, and its professional approach.” GDS’s Engineers, Statisticians, Analysts, and Management are Fully Capable of Matching the Right Distributed Generation Technology With Your Business Needs.

21. For More Information: • Visit http://www.gdsassociates.com OR • Contact us at: 1850 Parkway Place, Suite 800 15 Constitution Drive Marietta, Georgia 30067 Bedford, NH 03110Voice 770-425-8100 Voice 603-471-0336Fax 770-426-0303 Fax 603-471-0376