IPKeys Power Partners | 12 Christopher Way, Suite 301, Eatontown, New Jersey 07724 1

•  Wholly owned subsidiary of IPKeys Technologies •  WBE and SBA certified 8(a) established in March 2005 •  225+ employees •  DOD, cyber-security, energy, public safety divisions •  Headquarters in Eatontown NJ with offices in CA, MD & VA

•  INC. Magazine Fastest 500 Growth in 2010 & 2011 •  Energy clients – Schneider Electric, China Light & Power, HECO, City of

Burbank, DLA/DOD, Sims Group, Medline, Camp Pendleton, Picatinny Arsenal, Westmoreland County Water, Sage Hill School, Masters College

•  Active in CA, NY, PJM and TX markets; ISO-NE planned 2015 •  Focus: Deliver secure, high quality technology, integration, consulting,

services and software for the Energy (Utility and C&I markets), Public Safety and DoD sectors

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Service & Product Areas

•  Department of Defense •  Information Assurance & Cyber Security •  System Engineering •  Program Acquisition & Management •  Gaming Solutions & Simulations

•  Public Safety •  Network & Systems Integration

•  Energy & Smart Grid •  DR Aggregator/Curtailment Service Provider •  EISS™, EISSBlade & EISSBox •  BAS/EMS/PLC/SCADA/Gen Set Integration •  Network Design, Implementation & Support

EISS™

3 © 2014 IPKeys Technologies, LLC

•  Program Customization •  Demand Response •  Real Time Pricing /Transactive Energy •  Real Time Monitoring •  EPO Dashboard •  AutoDR Open ADR 2.0b

•  Ahead of curve •  Standards •  Interoperability •  Security •  Configurable to regional requirements, policies, devices and EMS configurations.

•  Turn Key •  Corporate Wide Programs •  Site Assessments •  Project Management & DR Program Management •  Dedicated Account Management

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•  Demand Response & Resiliency

•  DR Programs across USA

•  IPKeys Approach for System Wide DR Programs

•  EISS™ Auto DR Technology

•  Back Up Generation for DR – Use/ Limits on Use/Upgrades

•  Storage & AutoDR integration solution

•  Value Proposition

•  Q&A

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Demand Response is the reduction in electric consumption in response to a signal – emergency notice, high price signal,

regulation signal; customer cuts back on electric use for period

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Power Grid Operators – RTO/ISO and utilities – are challenged to maintain resiliency due to: •  significant levels of

solar/wind Renewable Energy

•  Retiring Power Plants (ie SONGS)

•  Natural Gas driven gen sets – non-firm supply

Demand Response is a green resource that improves resiliency

CAPACITY – PEAK DAYS PROGRAM

•  Seasonal (Summer) or Year Round M-F 11am-8pm not including holidays

•  Monthly or Annual Commitments •  Maximum duration – 4 to 6 hours •  30 minute to day ahead notice •  Paid for being available •  Payments are made whether or not

there is a call event •  Utility tariff based or ISO/RTO

ENERGY – PRICE BASED PROGRAM

•  Payments for participation only •  Paid RTP or Day Ahead Price •  Hourly bids or Trigger Price •  Utility tariff based or ISO/RTO

RESERVES – SHORT NOTICE PROGRAM

•  Can participate Year Round 24X7X365 •  10 minute notice; avg 15 min duration •  Paid for being available •  Payments are made whether or not

there is a call event •  ISO/RTO

REGULATION PROGRAM •  Can participate Year Round 24X7X365 •  Responds to a frequency signal with

fastest response – 4seconds •  ISO/RTO

TECHNOLOGY INCENTIVES •  $300 to $800 per KW for AutoDR •  State funded programs – CA & NY

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CALIFORNIA •  Capacity – BIP, CBP •  DRAM – CA ISO Pilot •  Demand Bidding/Energy •  Critical Peak Pricing •  AutoDR TI Incentives $300/KW •  Restrictions on Diesel Back Up

Generators

TEXAS •  Capacity – ERS-10&30, LaaRs •  Energy - Load in Sched •  Diesel Back Up Generators

allowed

Other States •  Tariff based DR rates and

programs

PJM •  DC, DE, IL, IN, KY, MD, MI, NC, OH,

NJ, PA, VA, WV •  Capacity – Limited, Extended

Summer, Annual •  Energy – Real Time or Day Ahead •  Reserves & Regulation •  Diesel back up generators allowed

except NJ

NY •  Capacity – ICAP SCR; Utility

Programs (new for 2015) •  Energy – Real Time or Day Ahead •  AutoDR Incentives to $800/KW •  Diesel back up generators allowed

New England & Ontario •  Capacity Programs

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•  June 2014 GAO Report to Congress “Actions Needed to Expand GSA and DOD Participation in Demand-Response Activities”

•  Executive Order 13423

•  Master Agreement with Defense Logistics Agency (DLA) allows federal facilities to participate with IPKeys Power Partners

•  All applicable United States military and federal facilities are eligible to participate in regional Demand Response programs.

•  enables military and federal sites to participate in Demand Response programs without the necessity of following standard contracting procedures.

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Atlantic Electric, JCPL, PECO, PPL

2015 Capacity

2016 Capacity

2017 Capacity

Event Energy

Real Time Energy Reserves 3 Year

TOTAL $40,463 $32,012 $28,423 $5,547 $28,800 $48,916 $184,160

PSE&G 2015

Capacity 2016

Capacity 2017

Capacity Event

Energy Real Time

Energy Reserves 3 Year TOTAL

$40,463 $59,351 $54,429 $5,547 $28,800 $48,916 $237,505

Assumptions: Event Energy for one (1) 2 hr event/year Real Time Energy standing bid at $500

Reserves availability 24X5

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SCE – CBP DO with TI

Year 1 Capacity

Year 2 Capacity

Year 3 Capacity

Year 4 Capacity

1st Year Bonus

4 Year TOTAL

TI Incentives

$37,035 $38,235 $38,235 $38,235 $60,000 $211,740 $300,000

SDGE – BIP 30 min with Ti Year 1

Capacity Year 2

Capacity Year 3

Capacity Year 4

Capacity 1st Year Bonus

4 Year TOTAL

TI Incentives

$61,200 $62,400 $62,400 $62,400 $60,000 $308,400 $300,000

Assumptions: SCE Capacity Bidding Program with TI

Incentives SDGE Base Interuptible Program with TI

Incentives Customer Payments are net of equipment and monthly reporting fees for 1 meter pt

•  Master Agreement for DR Programs (Local, Regional or National)

•  Site Assessments by Region - CA, PJM, NY/NE, TX, Other •  Meetings with SCADA/BAS vendors (IPKPP manages

integration and is not limited to any type of SCADA/BAS)

•  Gen Set assessments/ Site Permitting

•  Program Qualification

•  Report by site for Manual & Automated DR participation •  IPKPP “No out of pocket” cost approach

•  Site has final say on programs and equipment that participates

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•  PIB/KYZ order from utility; install EISSBoxes

•  EISS™ Auto DR Technology and Integration Implementation; Gen Set Upgrades (if required);

•  Testing, Training, Dashboard Customization •  Online secure access to key information using EISS™ Online

customizable dashboard for enterprise wide DR programs

•  Ongoing Program Enrollment and Account Management •  Notification Protocols

•  Performance Score Cards

•  Dedicated Account Managers

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Customizable Dashboard for secure, real-time data reporting

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MARKET SIGNALING

ASSET CONTROL

LOAD MONITORING EVENT

VALIDATION

TELEMETRY

AUTOMATION

ENERGY INTEROP SERVER & SYSTEM

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ISO or Electric Utility

Facility

IPKPP/Aggregator

Facility

Event Notices and Confirmations, Price Signals, Meter Data

Sites can be aggregated by region

Facility Facility

•  Developed by IPKeys Technologies team

•  Use Automated Load Management to Participate in DR ü  Enables faster response (meet 30 minute ,10 minute or 4 second notice) ü  Provides for response even if personnel are not available at time event is

dispatched ü  Allows remote monitoring and override options ü  Reduces the stresses of program compliance ü  Secure Connections ü  Signaling Direct to SCADA/BAS/EMS

•  Send and Acknowledge DR Events

•  Define Availability (opt in/out)

•  Avoid Market Volatility

•  Set & Forget levels

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•  Open Automated Demand Response (OpenADR2), provides a non-proprietary open standard interface that provides a secure, 2-way communication about electricity prices and system grid reliability directly to customers over networks such as the Internet.

•  The OpenADR2 specification is supported by the U.S. Department of Energy, the National Institute of Standards and Technology Smart Grid Interoperability Standards effort.

•  OpenADR 2 supports interoperability among control equipment (for HVAC, Lighting, Process, Generation) and energy markets

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•  Most states allow use of Back Up Generation for Demand Response

•  NJ & CA emergency generator for demand response or peak shaving •  Requires Air Permit Revision & Air Pollution Controls •  RICE NESHAPS & NOx RACT compliance •  Cost is significant to install this equipment –$100K+per gen set

•  IPKeys Power Partners works with partners to complete generator assessments to determine compliance requirements •  turn key design and installation •  permitting (equipment and site) •  compliance guarantees •  Expertise in US markets

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NY, NJ & CA incentives for battery storage solutions for C&I •  CA- Self Generation Incentive Program (SGIP) – applies to non-solar

renewable and waste heat to power ($1,070/KW), non-renewable Conventional CHP ($440/KW), Emerging Tech: Energy Storage, Bigoas Adder ($1,460/KW), Fuel Cell (CHP or electric only) systems ($1,650/KW); CA supplier incentive plus 20%; incentives reduced for larger projects (>1MW); capped at 60% of approved costs; extended thru 2015

•  Con Ed/NYSERDA - $2100/KW of peak demand reduction capped at 50% approved costs (plus 10-15% bonus for >500KW); DR enablement $800/KW; projects must be installed and operational by June 1, 2016

•  NJ – Electric Resiliency Bank (ERB) – 40% grants or forgiveable loans and 60% low interest loans for critical facilities to operate in an island mode, connect direct to the grid, and meet critical load. For Sandy Impact

IPKeys Power Partners works with select partners to •  complete assessments •  turn key design and installation; EISS™ integration for AutoDR •  Provide expertise in US markets with various batteries/solutions –

Lithium ion; Zinc-bromine flow batteries; Co-Lo with solar PV/wind;etc.

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•  Demand Response Initiatives •  Environmentally More Sustainable - Reduce carbon emissions and

displace/defer need for new “peaker” plants that run just a short delivery period each year

•  Resiliency - Improve Grid reliability for your facilities and the local communities;

•  Economic – Millions in annual recurring revenues even with no call events; better manage electric supply costs

•  Turnkey – One source for all DR program management •  Secure – Core competency in high security Smart Grid solutions

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Reduce GHG Emissions

Improve Grid Resiliency

Earn Revenues

Laurie Wiegand-JacksonSenior Vice President Main: 732-389-8112

Mobile:732-778-1701 Email: lwjackson@ipkeys.com

Tom WardSenior Program Manager

Smart Grid Programs Mobile:571-246-2026

Email: tward@ipkeys.com

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