1. Con Edison Energy Efficiency ProgramsSustaining our FutureRebecca CraftDirector of Energy Efficiency

2. Introduction • Sound energy management is even more crucial during this time of rising electricity demand and tight, but adequate, supply. • Con Edison is promoting incentive programs for all customers who are users of electricity. The programs will help to defray costs by rewarding customers with financial incentives.

3. Energy Efficiency – Initiatives • Federal Energy Legislation – tax incentives and stimulus money • New York State 15X15 – reduce energy use by 15% of forecasted levels by 2015 • New York City PlaNYC 2030 – reduce CO2 emissions 30% by 2030 • New York State Energy Research and Development Authority – efficiency and demand reduction programs

4. Energy Efficiency Programs • Con Edison Targeted Demand Side Management Program • Defers capital investment for T&D system load relief • 38 networks • 194 MW reduction contracted through 2012 • May contract for up to an additional 15MW • Proposed New MW Reduction Programs • Support New York State 15 x 15 Plan • Programs directed at residential, commercial and industrial customers

5. Proposed New Energy Efficiency Programs • Submitted an integrated portfolio of 11 programs as part of a 500 MW load reduction in PSC Energy Efficiency Portfolio Standard proceeding • Proposed energy reduction targets of 800,000 MWh; 187 MW Coincident Peak and 213 MW Demand • Con Edison to become a key provider of EE services to customers • Programs expected to reach 60,000 participants • EE programs to be integrated with Targeted DSM and Demand Response

6. Con Edison Proposed Portfolio Continuum of energy efficiency actions - facility review and analysis, implementation and verification and evaluation Direct installation - low-cost on-site energy surveys, direct installation of free efficiency measures and recommendations for more extensive energy efficiency upgrades Prescriptive rebates – cost-effective measures offset installation expense of common, high-efficiency technologies Custom programs - comprehensive, whole-facility approach, or efficiency upgrades for more complex systems or uncommon technologies

7. Small Business Direct Install Program • Description: • Rebates at 70% of installed cost, plus free measures • Free energy survey • Direct to NYSERDA or other CE programs if applicable • Eligible Business Customers: • Businesses under 100kW • SC 2, 4, 9, All existing buildings • Segments include small office, restaurant, retail, grocery, etc. • Eligible Measures: • CFL change-outs, LED Exit signs, LED refrigerator lights • HVAC retro-commissioning, programmable t-stats • Vending machine controls, water pipe insulation • Contact Information: 1-800-643-1289 or email at sales@coned.com

8. Natural Gas Programs • Energy Efficiency Benefits • Financial incentives • Reduces carbon emissions • Upgrades technology • Con Edison Customized Program for Oil Burning Customers • Incentives to defray customer conversion costs • Eligibility based on financial analysis

9. Targeted Demand Side Management Goal • Defers capital investment for T&D system load relief • Permanent energy usage reductions Current Enrollment • 38 targeted networks/load areas • 194 MW reduction contracted from 2005 through 2012 • Additional MWto be under contract by March 31, 2009 – currently accepting proposals • 70.4 MW have been installed and verified

10. Eligible Measures • Energy Efficient Lighting • High Efficiency Motors • Clean Distributed Generation • High Efficiency Refrigeration • Alternative Fuel Water Heater (Electric to Other conversion) • Thermal Storage for On-peak Cooling • High Efficiency Air Conditioning • Electric to Electric • Electric to Gas • Electric to Steam NOTE: Additional measures may be submitted, subject to Con Edison’s approval

11. What is Demand Response? • Through Demand Response programs, participating customers commit to reduce their electricity usage at critical times on the electric system. • Participating customers can receive financial incentives or free equipment for participating in Demand Response programs.

12. What Demand Response Programs are available to Con Edison customers? • Con Edison Programs • Distribution Load Relief Program (DLRP) • Direct Load Control Program (DLC) • NYISO Programs • Installed Capacity Program (ICAP) • Emergency Demand Response Program (EDRP)

13. Con Edison Program DetailsDistribution Load Relief • Eligible to electric customers who can reduce usage by at least 50 kW • Aggregators (Demand Response Providers) who can reduce usage by at least 100 kW • Customers are required to provide load reduction for no less than four hours during any called emergency event • Voluntary or Mandatory enrollment options are available • Participating customers receive financial incentives and a free web based demand monitoring program • Mandatory Program runs from May 1- October 31 • Customers may choose to enroll through Con Edison or a Demand Response Provider • Customers specify the amount of load they can reduce during an event • Customers or DR Providers are notified via phone and email by Con Edison at the time of an event • Two hours advanced notification is given

14. Con Edison Program DetailsDirect Load Control • Eligible to small business and residential central air conditioning customers with peak demand of less than 100kw • Upon enrollment • Con Edison will install a free programmable thermostat that will allow customers to adjust their temperature manually or remotely via the Internet • Customers will receive a $25 or $50 Thank You Gift • Con Edison can communicate with the thermostat to cycle the a/c compressor - on and off to reduce demand on our electric system when needed • The program has been in effect since 2002 and continues to expand