What if.....the smart grid was available today?!

1. Page 1 What if, 25% of C&I electric load was responsive?

2. Page 2 What if, ..it was more than responsive?

3. Page 3 What if, ..it was really, really smart?

5. Only affected buildings with fully functional HVAC?

6. Only affected minimally occupied buildings?

7. Buildings were smart enough to come in and out of an aggregation every few minutes?

9. Web-based smart load response could be clustered by utility nodes?

10. Web-based smart load response could replace generation?

12. How Does Virtual Generation WorkWeb-Based Smart Load Response Page 7

13. What is each stakeholder’s Value Proposition?Electric utilities and commercial customers We provide ISO’s and IOU’s with megawatts of responsive load Clustered by nodes Accessible with two-minute notification today, less than a minute in 2011 Near real-time kW verification (1 minute telemetry) We provide commercial building owners with Smart Load Response Web-based Smart Load Response IS NOT AutoDR! Automation balances load response measures with current occupancy Automation balances measures with the condition of HVAC equipment “We won’t use auto-DR in our resorts. If we are highly occupied or in the midst of mechanical issues or both, auto DR simply automates disaster!” “SureGrid’s solution ensures our business rules are met first! Page 8

15. Base +2 degrees

16. Base +4 degrees & Lights

17. Etc….

18. Does not control or interfere with customers normal BAS operations

19. Internet connection required

20. Touch-free operation

21. Customer controls business rulesBAS SureGrid Communicator

23. HVAC

24. Interior Lighting

25. Exterior Lighting

26. Signage

27. Refrigeration

28. Trash Compactor

29. Miscellaneous high kW devices

30. Web-based aggregation engine

31. M2M negotiated

32. Always “On”

33. Enterprise-class architectureHow does it work in Retail?Aggregation is real-time based on actual site conditions HVAC Supply Temperature Sensors DR event managed by local controller at each site. Aggregation engine responds and reacts to local conditions to achieve the load shed goal. System Controller Trash Compactor Networked Smart Thermostats Indoor Lighting Optional Cellular Modem Signage Refrigeration Internet Connection Real-time Energy Use (at meter) Indoor Air Quality (IAQ) via CO2 Sensor Outdoor Lighting Outside Temperature Outside Lighting Levels Page 10

34. Over 4,000 retail chain stores installed today!More than 500 retail locations in California Michaels Stores The Cheesecake Factory Pier1 Burlington Coat Factory DSW Shoes Big Lots! 24 Hour Fitness Clubs LA Fitness Town Sports Clubs Chipotle Mexican Grill Fedex Office Page 11

35. What other types of C&I customers?Focusing on highly reliable under-served markets Small & Mid-SizeRetail Light Industrial Energy Efficiency Business Intelligence 2-Way Closed Loop Addressable Market SchoolsArenas Gov‘t Restaurant & Hotels Reduced Maintenance 5 Minute Response Intelligent Load Management Big-Box Retail Office Environmental Sustainability Verifiable Non-Disruptive Page 12

36. Virtual Generation BenefitFor Electric Utilities and Independent System Operators Power as reliable as any other peak generation capacity 2 way verifiable Closed-loop control Available <5 minutes Measurable and verifiable Our generation plants cost much less to build No waste, carbon negative, requires no fuel Gateway to the Smart Grid Delivered to a precise “location” on the grid without T&D Open architecture technology Page 13

38. Demand Reduction (Call Option)

39. Demand Increase (Put Option)

40. Distributed Energy Resources (DER)

41. Balanced renewables

42. Storage

43. Other

44. Grid reliability

45. VAR support

46. Voltage balance

47. OtherPage 14

48. Do you have any questions?SureGrid Contact Information ? Please contact: Mike Frost, President SureGrid– Corporate Headquarters 7004 Bee Caves Road Austin, TX 78733 512.306.9400 mike.frost@suregrid.com ? ? Wade Cameron SureGrid– San Diego 701Palomar Airport Road, Suite 300 Carlsbad, CA 90211 949.233.2562 wade.cameron@suregrid.com Page 15