Presentation for: Energy Advancement Leadership Conference Demand Response Programs & Technologies

1. Presentation for:Energy Advancement Leadership ConferenceDemand Response Programs & Technologies Frank A. Magnotti President, Global Sales & Marketing President, Comverge Enterprises November 17, 2004

2. The “Peak Demand” Problem Confidential Information

3. “Old-Think” Supply constraints PEAK LOAD CHALLENGES Unhedgeable Transmission congestion bottlenecks • ADD DISTRIBUTION • Build more lines • “Punt” • ADD SUPPLY • Build more infrastructure • Buy wholesale Confidential Information

4. “New-Think” • PROACTIVE DEMAND MANAGEMENT • Cost effective • Advanced technology and • business models • “Cleaner” than renewables • No line loss or degradation Supply constraints PEAK LOAD CHALLENGES Unhedgeable Transmission congestion bottlenecks • ADD DISTRIBUTION • Build more lines • “Punt” • ADD SUPPLY • Build more infrastructure • Buy wholesale Confidential Information

5. Question! Are Demand Response and Load Management programs technologically, environmentally and economically viable? Are they large enough to make a difference? Confidential Information

6. Large Enough Comverge’s Large Scale Programs Programs Greater than 100 MW • Southeastern Region • FPL; FPC; Oglethorpe; Duke; Gulf Power • Northeastern Region • PEPCO; BGE; PSEG; JCPL • Midwestern Region • ComEd; Buckeye; NSP; DTE • Western Region • SCE; SMUD Comverge is the supplier to over 90% of these Programs – Five Gigawatts Major Turnkey Virtual Peaking Capacity (VPC) Programs • Utah Power, SDG&E, HL&P, ISO-NE I, ISO-NE II Comverge is the owner/operator of 100% of these Programs – 300 Megawatts Confidential Information

7. Product Spectrum 6DiNETTM Virtual SCADA & Real-Time Systems 6,500 METERS Maingate™ C&I TOU/CRITICAL PRICING 120MW Advanced C&I Metering Maingate™ Home 100MW Bi-Directional Load Control & AMR Technologically 5,000,000 INSTALLED SuperStat™ Viable One-Way Load Control DCU Real Time TOU RATES Flat None CONTROL BY CONSUMER Full Confidential Information

8. Positive Environmental Impact Positive Environmental Impact Confidential Information

9. Two Comverge Load Management Models • Traditional Model: Direct Sale to Utility • Hardware and Software Purchase • Mass marketing campaign • Installation • Maintenance • Finance • Utility accepts all project risk • Virtual Peaking Capacity (“VPC”) Business Solution • Utility ONLY pays for available capacity • Comverge provides complete turnkey solution • Comverge accepts all project risk • Structured as a long term “power purchase type” agreement Confidential Information

10. VPC Programs Economically Viable * Bid and Won in an All-Source Competitive Bid (Supply & Demand) Confidential Information

11. Overview Demand Response and Load Control Programs are: • Technologically Viable • Environmentally Viable • Economically Viable and • Large Enough • To Make a Significant Impact as Part of a Portfolio Approach in an Integrated Resource Plan. Confidential Information

12. Thank you! • For our high school and college students in the audience – I would like to encourage entering this exciting and rewarding field! • Any questions?? Confidential Information